- Reliance Jio now has 355.5 million subscribers across the country
- The company had an ARPU of 120 by the quarter-end
- The customer engagement in the quarter was 11.7GB per month
- The voice engagement was pegged at 789 per minutes
Reliance Industries Limited (RIL), the parent company of Reliance Jio Infocomm, the leading telecom operator of India, today released its financial reports for the quarter ending in September. In this earnings report, Reliance Jio had many interesting revelations to share along with the financial performance of the company. Reliance Jio remarked that it crossed the 350 million subscriber mark and in the last 12 months, it added 103 million more subscribers atop its subscriber base. With this massive addition in subscriber base, Reliance Jio has become the world’s second-largest single-country operator. Along with this, Reliance Jio has shared more information about its earnings, debt and capex. Here is what Reliance Jio had to say in its quarterly report for the quarter ending in September.
Customer Engagement Sees Positive Growth
Reliance Jio highlighted in its release for the quarterly earnings report that it showed strong subscriber report with a net addition of 24 million during the quarter and 103 million during the previous twelve months. The monthly churn rate for Reliance Jio also reduced sequentially and remained below the industry average of 0.74%. Customer engagement also increased on the Reliance Jio network with the average data usage being 11.7GB per month, as compared to 11.4GB per month in the previous quarter. Average voice consumption per month stood at 789 minutes per user per month for the telco.
ARPU Rests at Rs 120 Per User Per Month for Reliance Jio
As for the financials of the company, Reliance Jio highlighted that the standalone revenue from the operations was pegged at Rs 12,354 crore, whereas the telco had a standalone EBITDA of Rs 5,166 crore and EBITDA margin of 41.8%. The standalone net profit for the company stood at Rs 990 crore. The total subscriber base for the telecom operator by the end of the quarter was 355.2 million, which showed a 40.8% year on year growth. Reliance Jio also had the lowest churn rate in the industry with only 0.74%. ARPU for Reliance Jio continued to decline for another quarter, and the company noted that by September end, the ARPU stood at Rs 120 per subscriber, per month. In the same period, the total wireless data traffic during the quarter was 1,202 crore GB with a 55.9% YoY growth, whereas the total voice traffic during the quarter was 81,262 crore minutes, showing a 52.2% YoY growth.
Crucial Quarter for Reliance Jio With JioFiber Launch
This quarter was also crucial for the Mukesh Ambani led telecom operator as it rolled out the FTTH service in India during its 42nd Annual General Meeting of Reliance Industries Limited on August 12, 2019. Reliance Jio noted that it saw heavy interest from 1,600+ cities and also added that the FTTH and Enterprise services would be key growth and margin tailwind over the medium term.
Reliance Jio’s FTTH service, JioFiber, saw the registration of over half a million customers in the preview offer. The telco noted that the process of converting these customers into billing customers is ongoing and in the coming quarters, the revenue from its fibre-based services would also add to the earnings of the telco.
Reliance Jio also noted that it witnessed three times increase in voice and data traffic over its network in the past two years. The telecom operator also highlighted that it has deployed over 750,000 eNodeBs across 800MHz, 1800MHz, 2300MHz bands for 4G-LTE. Due to this, Jio continues to be by far the industry leader in terms of network capacity and performance with an average download speed of 21.3 Mbps during August 2019, as per Trai. The telco also boasts of having the largest 4G VoLTE network in the world and it is growing bigger with 52% YoY growth in daily voice traffic.
Arpit spends his day closely following the telecom and tech industry. A music connoisseur and a night owl, he also takes a deep interest in the Indian technology start-up scene and spends rest of his time spilling poetry and stories on paper.