Reliance Jio Q2 results: Net profit increases 13% YoY to Rs 7,379 crore, ARPU rises to Rs 211.4

Reliance Jio Q2 results

Jio Platforms Ltd reported a 13 percent rise in net profit to Rs 7,379 crore for the September quarter, led by higher data usage and a growing subscriber base.

Revenue from operations rose 15 percent to Rs 36,332 crore in the fiscal second quarter from Rs 31,709 crore in the year-earlier. Average revenue per user (ARPU) rose 8.4 percent to Rs 211.4 during the quarter from Rs 195.1 in the year-earlier period.

“Jio has proudly served over 500 million subscribers, addressing multiple digital needs of their everyday life. This has been possible due to Jio's Deep-Tech initiatives which have sparked India's technological revolution and have become the backbone of our Prime Minister's Digital India Mission," Akash Ambani, Chairman of Reliance Jio Infocomm, the telecom unit of Jio Platforms. "Jio will continue to bring new-age technologies and enhance the life of every Indian citizen. Jio has successfully delivered its indigenous technology stack at India scale and is now set to take our homegrown technology around the world."

Also read: Our LIVE blog on Reliance Q2 results

Segment EBITDA grew 17.7 percent to Rs 18,757 crore, with a 140-basis-point expansion in margin.

Jio’s 5G subscriber base rose to 234 million, while total home connections reached 22.7 million, with more than one million homes added each month during the quarter. JioAirFiber continued to demonstrate global leadership with about 9.5 million subscribers.

On JioAirFIber, Anshuman Thakur, senior vice president, Jio Platforms, said, “We are seeing a lot of latent demand; now AirFibre services are available pan India. We are driving digitisation of a million homes every month.”

On 5G services, he said that Jio is seeing faster pickup in 5G services in rural areas. “Rural sites saw 2.2x growth in 5G site traffic compared to pan India growth of 2X,” said Thakur, adding that 5G Jio customers enjoy 1.4x faster data speed than nearest competitor.

“We are working on bringing more devices. We have done partnerships with OEMs to bring more devices in 4G and 5G,” he added.

Thakur noted that the increase in ARPU in the September quarter was driven by higher usage and customer movement to higher data plans.

“Our operating leverage is playing out quite well, and the business continues to see margin expansion in its connectivity business,” he added.

Commenting on Jio’s enterprise business, he said that Jio’s focus is to get more revenue pools from enterprises beyond just connectivity.

“All large enterprise customers are taking more than one service from us,” he noted, adding that Jio Cloud Telephony is becoming popular with enterprise clients.

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