Digital services company Jio Platforms recorded a substantial 12.5 percent YoY increase in net profit, reaching Rs. 5,098 crore during the June 2023 quarter. The company attributed this growth to the addition of new subscribers and higher revenue per user. Comparatively, Jio Platforms had reported a net profit of Rs. 4,530 crore in the same period the previous year.
The revenue from operations for Jio Platforms surged to Rs. 26,115 crore during the quarter, marking an 11.3 percent rise from Rs. 23,467 crore in the year-ago period.
Jio Platforms achieved a remarkable milestone by adding over 90 lakh net subscribers, with total data traffic soaring by more than 28 percent YoY, reaching 33.2 billion gigabytes for the quarter.
The company’s average revenue per user (ARPU), which is a key performance metric, improved by 2.8 percent YoY, reaching Rs. 180.5. This growth was fueled by a better subscriber mix and the expansion of the wireline business. Jio Platforms encompasses various entities, including telecom arm Reliance Jio Infocomm, numerous startups, and music and video streaming apps.
The company highlighted that the adoption of 5G technology and the expansion of its Fiber to the Home (FTTH) services played a crucial role in driving a strong 28.3 percent YoY growth in data usage. In the first quarter of FY’24, monthly data traffic on the Jio network surpassed 11 Exabytes, while the per capita monthly data usage increased by 20 percent YoY, reaching 24.9GB.
Jio Platforms has made significant strides in rolling out its True5G network, with plans to complete the pan-India 5G rollout before December 2023, as confirmed by Reliance Jio Infocomm’s Chairman, Akash M Ambani.
Additionally, JioBharat, the company’s platform, is ready for scale-up following successful initial trials of 1 million devices. Ambani expressed that the innovative JioBharat phone aims to accelerate the ‘2G-mukt Bharat’ vision and democratize internet access. These strategic investments will drive Jio’s growth momentum across connectivity and digital platforms in the coming years.
CEO Kiran Thomas highlighted that around 98 percent of new JioFibre additions are opting for postpaid plans. The company plans to leverage air fibre technology to accelerate broadband connectivity to homes, with an ambitious goal of connecting 100 million homes at the earliest.
In a related report, telecom arm Reliance Jio reported an impressive 12 percent YoY rise in net profit, reaching Rs. 4,863 crore during the June 2023 quarter. This substantial growth can be attributed to increased revenue and subscriber gains in the connectivity business and digital services scale-up. The total income of Reliance Jio during the reported quarter also witnessed a positive trajectory, rising to Rs. 24,127 crore from Rs. 21,995 crore in the corresponding period last year. The company’s revenue from operations reached Rs. 24,042 crore during the quarter, marking a significant 9.9 percent YoY increase from Rs. 21,873 crore in the June 2022 quarter. The notable growth in operating revenue was attributed to the surge in subscriber numbers and the expansion of digital services, as mentioned in a company statement. Moreover, Jio Platforms reported a 14.8 percent YoY increase in EBITDA, driven by revenue growth and improved margins. The company’s finance cost was lower due to the repayment of short-term loans in the first quarter of FY24.