Jio Q4 results: Net up 12% at Rs 5.5K cr on strong subscriber growth

Jio claims to have highest 5G subscriber base of any telco outside China, but ARPU remains Rs 181.7

Jio Platforms Ltd (JPL), which runs India’s largest mobile network operator Reliance Jio, on Monday reported a 12 per cent year-on-year (Y-o-Y) increase in net profit to Rs 5,583 crore for the fourth quarter (January-March) of FY24 on robust subscriber growth. The net profit had risen by 11.6 per cent, 12 per cent and 12.53 per cent in the previous three quarters, respectively.

On a sequential basis, the holding company for Jio and other digital businesses of the Reliance group, witnessed its net profit rise by 2.53 per cent.

The telecom company saw its annual net profit rise by 12 per cent in FY24 to Rs 21,423 crore, up from Rs 19,124 crore in FY23.

However, the telco’s Average Revenue Per User (ARPU) in Q4 remained unchanged at Rs 181.7, for the third straight month. Calculated yearly, ARPU was higher by 2 per cent in Q4, up from Rs 178.2 in Q4 FY24.

The company said it achieved a better subscriber mix, including a rising instance of promotional 5G traffic, which is offered unlimited to subscribers and not yet charged separately.

The revenue from operations grew 13.37 per cent Y-o-Y to Rs 28,871 crore in Q4. Growth stood at 11.3 per cent, 10.7 per cent and 11.2 per cent in the previous three quarters. The operating revenue growth in Q4FY24 was driven by robust subscriber growth across mobility and homes, and the benefit of mix improvement in ARPU, the company said.

Jio Platforms’ earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter was a record Rs 14,360 crore, up 12.5 per cent Y-o-Y.

 

Subscribers rise fast

Overall, Jio Platforms gained 10.9 million new subscribers in the latest quarter, slightly lower than the 11 million new subscribers added in the preceding two quarters and 9.2 million in Q1, the company said. The latest quarter was the sixth consecutive quarter of growth for the company after subscribers had declined for three consecutive quarters.

Jio said 108 million subscribers have migrated to Jio’s 5G network, and are accounting for 28 per cent of Jio’s wireless data traffic. The company emphasise that its 5G users now represent the largest 5G subscriber base for any telecom operator outside China.

At the end of March, the telco had 481.8 million total subscribers, up by 9.7 per cent, or 42.4 million new subscribers annually.

Engagement on the network remained strong, with total data and voice traffic increasing by 35.2 per cent and 9.7 per cent annually, respectively.
 

Network leadership

Launched initially in eight cities (Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune) in September last year, JioAirFiber is now available in over 5,900 towns. The company had earlier targeted pan-India coverage by the first half of 2024. The service is expected to accelerate Jio’s home penetration from 10 million homes currently to over 100 million homes.

“Jio continues to maintain its network leadership and offer innovative digital solutions to multiple customer cohorts. Continued acceleration in growth of the JioAirFiber subscriber base and ramp-up of digital services will sustain industry-leading growth for Jio," said Akash M Ambani, Chairman of Reliance Jio Infocomm.

The average daily data usage for AirFiber subscribers is at 13 GB, 30 per cent higher than JioFiber subscribers.