Jio Platforms Q3 Profit Jumps 11.6%, ARPU Flat Sequentially

New Delhi: Jio Platforms, a subsidiary of Reliance Industries, has announced an 11.6% year-on-year increase in its consolidated net profit for the December quarter (Q3FY24), reaching Rs 5,445 crore. This growth is primarily attributed to a surge in subscriber additions, despite a flat average revenue per user (ARPU) sequentially.

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Robust Subscriber Growth Drives Revenue

Jio Platforms, which encompasses Reliance Industries' telecom and digital businesses, witnessed an 11.4% increase in its gross revenue to Rs 32,510 crore for the recently concluded quarter. Sequentially, the profit grew by 2.7%, while gross revenue was 3% higher compared to the September quarter.

ARPU Remains Flat, Impacted by 5G Trial

Jio's ARPU, a crucial metric for telecom companies, increased by 2% year-on-year to Rs 181.7 due to an improved subscriber mix. However, this growth was partially offset by the unlimited data allowance offered on the 5G network. Sequentially, the ARPU remained flat compared to the previous quarter.

5G Rollout Accelerates Subscriber Additions

The rollout of 5G services has significantly contributed to Jio's subscriber growth momentum. The company added a remarkable 11.2 million net subscribers in Q3FY24, surpassing its competitors. The monthly churn rate stood at 1.7%, while the total subscriber base reached an impressive 471 million as of December 2023.

Strong Engagement and 5G Adoption

Jio highlighted the robust engagement on its network, with total data and voice traffic increasing by 31.5% and 7.9% year-on-year, respectively. The company's chairman and managing director, Mukesh Ambani, emphasized the rapid rollout of 5G services across India, making high-speed digital connectivity accessible to every corner of the country.

Jio 5G Availability Surpasses Competitors

In its presentation on Q3 financial and operational highlights, Jio revealed that its 5G availability is three times that of its closest competitor. Akash Ambani, chairman of Reliance Jio Infocomm, expressed confidence that Jio's strategic investments in next-generation networks, digital technologies, and tailored products will ensure sustainable industry-leading growth in the coming years.

JioAirFiber Expands Reach, Enterprise Market Share Grows

JioAirFiber, the company's 5G home broadband service, has witnessed strong initial demand, particularly in underserved tier 3/4 towns and rural areas. It is now available in over 4,000 cities and towns, with pan-India coverage expected in the first half of 2024. Jio's enterprise market share gains have been consistent, with nearly 50% of branches of the top 10 banks in India operating on the Jio network.

Digital Services Account for 20% of New Deal Wins

Jio's digital services are gaining traction, accounting for almost 20% of new deal wins. This marks a shift from the past, where the network was the primary driver and digital services were add-ons. Content bundling has also contributed to a 30% higher per capita usage on JioAirFiber compared to JioFiber.

Reliance Jio's Q3FY24 Financial Performance

In addition to Jio Platforms' results, Reliance Jio reported a 12.2% rise in its net profit for the fiscal third quarter ended December 2023, reaching Rs 5,208 crore. The company's revenue from operations increased by 10.3% to Rs 25,368 crore in Q3FY24 compared to Rs 22,998 crore in the corresponding period of the previous year.

Jio Platforms and Reliance Jio's strong financial performance in Q3FY24 underscore the success of their strategic initiatives. The rapid expansion of 5G services, coupled with robust subscriber growth and increasing engagement, positions Jio as a leader in India's digital transformation journey.