Jio Q3 net profit up 9% to Rs 3,795 crore

Jio platforms on Friday posted an 8.8 per cent increase in net profit at Rs 3,795 crore for the third quarter ended December 2021.

Operational highlights

Consolidated jio platforms limited (“JPL”):

Performance for the quarter 3Q FY22:

• Gross Revenue for the quarter was ₹ 24,176 crore ($ 3.3 billion), higher by 13.8% Y-o-Y (adjusted for IUC)
• Quarterly operating revenue (net of GST) was ₹20,597 crore ($ 2.8 billion), growth of 13.8% Y-o-Y (adjusted for IUC), driven by higher ARPUs and increasing revenues from new services.
• EBITDA at ₹ 10,008 crore ($ 1.3 billion), higher by 18.0% Y-o-Y, with this quarterly EBITDA has crossed ₹ 10,000 crore for the first time
• EBITDA Margin at 48.6%, increased 500 bps Y-o-Y led by change in IUC regime and ARPU increase in connectivity business.
• ARPU during the quarter of ₹ 151.6 per subscriber per month which is healthy 8.4% growth on Y-o-Y basis (adjusted for IUC) and 5.6% growth on Q-o-Q basis
• Net Profit for the quarter was ₹ 3,795 crore ($ 511 million), higher by 8.9% Y-o-Y.
• Cash Profit for the quarter was ₹ 8,747 crore ($ 1.2 billion), higher by 14.7% Y-o-Y.
• Total customer base as on 31st December 2021 of 421.0 million, net addition of 10.2 million customers on Y-o-Y basis.
• Total data traffic was 23.4 billion GB during the quarter; 47.8% growth Y-o-Y.
• Total voice traffic was 1.15 trillion minutes during the quarter; 17.9% growth Y-o-Y.

Connectivity business:

• Gross subscriber addition remains strong with total gross adds of 34.6 million in 3Q FY22 driven by both mobility and FTTH businesses.
• SIM consolidation and repurposing of customer retention efforts led to a net reduction of 8.4 million in customer base in 3Q FY22. This decline is mainly driven by subscribers with inconsistent engagement and lower-end subscribers
• Jio has prepaid ₹ 30,791 crore clearing all deferred spectrum liabilities acquired in auctions prior to March 2021 which will result in interest cost saving of ₹ 1,200 crore annually.
• Jio undertook ~20% hike across prepaid plans effective 1st December 2021 which is in line with other industry operators. Jio’s new plans continue to provide the best value for consumers in the industry across price points
• ARPU improves to ₹ 151.6 led by better subscriber mix and recent tariff hike. Full impact of tariff hike to be reflected in ARPU and financials over the next few quarters.
• During 3Q FY22, average data and voice consumption per user per month increased to 18.4 GB and 901 minutes, respectively.
• Jio maintained its top position in the 4G speed chart with a 22.0 Mbps average download speed in December 2021, according to data published by the Telecom Regulatory Authority of India (TRAI).
• Jio and Google announced the launch of JioPhone Next during the quarter. This is the most affordable smartphone anywhere in the world with an entry price of only ₹1,999 and the rest paid via easy EMI over 18/24 months. A unique financing option like this is introduced for the first time for a device in this category, making it accessible for a much wider set of consumers.
• With unprecedented features like an all new Pragati OS, Translate Now & Read Aloud across 10 Indian languages and host of preloaded Jio and Google apps, JioPhone Next is available across the country at Reliance Retail’s extensive network of JioMart Digital retail locations.
• Jio now has over 5 million connected wireline customers and has been consistently enriching its FTTH product with new apps on STB, Society Centrex, 4K content on JioTV+, Home Secure, Home Automation, LiveTV and Gaming solutions.

Digital Platforms:

• Data driven network planning for Jio’s 5G network is underway based on targeted customer consumption and revenue using Heat maps, 3D maps and Ray tracing technology for precise coverage planning to target high consumption and high perception locations. 5G coverage planning has been completed for 1,000 top cities across the country. Jio has been doing trials on advanced use cases across Healthcare and Industrial Automation on its 5G network.
• Jio has partnered with WhatsApp to simplify prepaid recharge experience and brings unprecedented convenience to consumers.
• Jio has partnered with National Payments Corporation of India (NPCI) for the UPI auto-debit facility for its customers. This will enable Jio customers to set standing instructions on the MyJio app using UPI Autopay for their preferred tariff plans and seamless recharging experience.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to announce that Reliance has posted best-ever quarterly performance in 3Q FY22 with strong contribution from all our businesses. Both our consumer businesses, Retail and Digital services have recorded highest ever revenues and EBITDA. During this quarter, we continued to focus on strategic investments and partnerships across our businesses to drive future growth.”

“Our digital services business has delivered broad based, sustainable, and profitable growth through improved customer engagement and subscriber mix,” he said.

CT Bureau