- India’s largest telecom provider, Reliance Jio, announced its March 2022 quarter results on Friday, in addition to the full fiscal 2021-22 results.
- Over the past three months, Jio’s average revenue per user jumped 11% to ₹167.6, continuing the momentum gained by the telecom company in the December quarter.
- One of the contributors to Jio’s improved results is the fact that it offloaded millions of dormant, low-quality subscribers, dramatically improving its per-subscriber metrics.
Reliance Jio, India’s largest telecom company, announced its financial results for the period January to March 2022, showing strong momentum in the average amount it earns from each subscriber, also known as ARPU ( average revenue per user).
Reliance Jio posted 14% growth in net profit between January and March 2022 – this is Jio’s strongest profit growth in five quarters, but still below analysts’ expectations of a quarterly profit of ₹5,000 crore.
|Details||January-March 2022||Growth (Annual)||Oct-Dec 2021||Growth (T/T)|
|net profit||₹4,313crore||23%||₹3,795 crore||14%|
Source: Company Reports
Reliance Jio also recorded an 11% increase in its ARPU, a key metric for measuring the performance of a telecommunications company. Several factors contributed to this: a 21% price hike and the offloading of millions of low-quality, inactive subscribers that had been dragging down the company’s ARPU numbers for several quarters now.
After resisting analysts’ warnings for several months, Jio finally raised prices after rivals Airtel and Vodafone Idea announced hikes in the range of 20-25%. Jio’s fares are still the cheapest of the three, and JP Morgan analysts expect the benefits of this hike to be felt only in the June quarter of 2022.
This is also the third consecutive quarter of subscriber loss for Reliance Jio – it has lost more than 30 million subscribers in the last three quarters. Overall, for the 2021-22 fiscal year, Jio’s subscriber count is down 16 million. This is despite the launch of the affordable JioPhone Next, which was a key weapon in Mukesh Ambani’s arsenal to hit the 500 million subscriber mark.
Jio said its total customer base stood at 410 million subscribers, after falling below the figure of 421 million in the previous quarter.
Reliance Jio’s last quarter in numbers
On the financial side, Jio recorded a healthy double-digit increase in net profit between January and March 2022, rising to ₹4,313 crore from ₹3,795 crore in the previous quarter – an increase of 14%. On an annual basis, its profit jumped 23%.
Jio also saw a healthy 8% increase in revenue in the quarter to ₹26,139 crore from ₹24,176 crore in the previous quarter. On an annual basis, this represents an increase of almost 21%.
Data and voice usage saw a substantial increase this quarter
Data traffic increased by 7% compared to the previous quarter. Average data usage per user during the quarter was 19.7 GB, compared to 18.4 GB in the prior quarter.
Voice usage increased to 968 minutes from 901 minutes the previous quarter.
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