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

• India’s largest telecom provider, Reliance Jio, released its quarterly results for June 2022 on Friday.
• In the past three months, Jio’s average revenue per user increased 5% sequentially to ₹175.7, continuing the momentum the telco gained in the March quarter.
• Jio also added nearly 10 million new subscribers during 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 earns on average from each subscriber, otherwise known as ARPU (average revenue per user).

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

Source: Company Reports

Reliance Jio also recorded a 5% sequential increase in its ARPU – a critical metric for measuring a telecom company’s performance.

Multiple contributing factors were a 21% rate hike and the offloading of millions of low-value and dormant subscribers that had been undermining the company’s ARPU numbers for several quarters.

The ARPU’s continued growth is in line with analysts’ expectations at JP Morgan.

Reliance Jio also managed to halt subscriber losses this quarter, having lost more than 30 million in the previous three — adding 9.7 million new subscribers to its network.

Jio reported that its total customer base was 420 million subscribers, after dropping below 410 million in the previous quarter.

Reliance Jio’s last quarter in numbers

On the financial side, Jio reported a meager 5% sequential increase in net profit, rising to ₹4,530 crore from ₹4,313 crore in the previous quarter. Year-over-year profit increased by 24%.

Jio also witnessed a consecutive 5% increase in its sales during the quarter, rising to ₹27,527 crore compared to ₹26,139 crore in the previous quarter. On an annual basis, this is an increase of almost 24%.

Both data and speech usage showed a healthy increase this quarter

Data traffic increased by 6% compared to the previous quarter. Average data usage per user during the quarter was 20.8 GB, compared to 19.7 GB in the previous quarter.

Speech usage increased from 968 minutes in the previous quarter to 1001 minutes.

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