Reliance Jio posts a moderate 5% increase in profits in Q1 FY23, adds 10 million new subscribers

• India’s largest telecom provider, Reliance Jio, on Friday announced its June 2022 quarter results.
  
• The past three months saw Jio’s average revenue per user surge 5% sequentially to ₹175.7, continuing the momentum the telco gained in the March quarter.
  
• Jio also added nearly 10 million new subscribers in this period.
  

Reliance Jio, India’s largest telecom company, which announced its financial results for the June 2022 quarter on Friday, showed continued momentum in how much it makes on an average from each subscriber, also known as ARPU (average revenue per user).

Reliance Jio posted a 5% sequential growth in its net profit between April and June 2022 – after a strong 14% growth in the previous quarter.


Source: Company reports

Reliance Jio also posted an increase of 5% sequentially in its ARPU – a critical metric for measuring a telecom company’s performance.

There were multiple factors contributing to this – a 21% tariff hike and offloading millions of low-quality and dormant subscribers which had been subduing the company’s ARPU numbers for several quarters now.

Continued growth in its ARPU is in line with the expectations of analysts at JP Morgan.


Reliance Jio also managed to stem the loss of subscribers this quarter, after losing over 30 million in the previous three – it added 9.7 million new subscribers to its network.

Jio reported that its total customer base stood at 420 million subscribers, after falling below the 410 million figure in the previous quarter.

Reliance Jio’s last quarter in numbers

Coming to the financials, Jio reported a meagre 5% sequential increase in net profit, increasing to ₹4,530 crore from ₹4,313 crore in the previous quarter. On a year-on-year basis, its profit surged by 24%.

Jio also witnessed a surge of 5% sequentially in its revenue during the quarter, increasing to ₹27,527 crore as compared to ₹26,139 crore in the quarter before. On a year-on-year basis, this is an increase of nearly 24%.

Both data and voice usage saw a healthy increase this quarter

Data traffic saw an increase of 6% compared to the previous quarter. The average data usage per user during the quarter stood at 20.8GB, as compared to 19.7GB in the previous quarter.

Voice usage increased to 1,001 minutes from 968 minutes in the quarter before.


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