You are here: Home » Economy & Policy » News
Business Standard

Jio's healthy earnings show industry digesting impact of tariff hikes

Jio's Q4FY22 revenues were up 8 per cent quarter on quarter and 20.4 per cent year on year, aided by 20 per cent tariff hikes, effective from December and improving customer mix.

Reliance Jio | Telecom industry

IANS  |  New Delhi 

Photo: Shutterstock

Reliance Jio's healthy Q4 results shows the industry is digesting the impact of tariff hikes in the form of meaningful increase in its average revenue per user, said multinational investment bank UBS.

In December 2021, 20-25 per cent tariff hike was taken by Airtel, Vodafone Idea, and .

Jio's Q4FY22 revenues were up 8 per cent quarter on quarter and 20.4 per cent year on year, aided by 20 per cent tariff hikes, effective from December, and improving customer mix.

While Jio lost 10.8 million subscribers in Q4 (on top of 8.5 million lost in Q3), ARPUs were up 10.6 per cent quarter on quarter and reached Rs 167.6.

The telecom operator's EBITDA grew 10.5 per cent QoQ and 26.8 per cent YoY with margins up 110 basis points QoQ from 49.2 per cent to 50.3 per cent. Net income increased 15.4 per cent QoQ to Rs 41.7 billion.

"Management indicated that performance of the FTTH segment remains strong, with JioFiber reaching c5mn subs as of Q4. Management also touched upon the new content add-on packs introduced for postpaid plans and mentioned that the enterprise business is also showing steady growth," UBS said.

Besides, the investment bank expects telecom operators such as Bharti Airtel and Vodafone Idea to report strong results.

"We have a 'buy' rating on Bharti and a 'neutral' rating on Reliance and Vodafone Idea," it added.



(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, May 09 2022. 18:42 IST