INSUBCONTINENT EXCLUSIVE:
Reliance Jio Infocomm (Jio) reported its fifth straight profitable quarter, with a 65 per cent on year jump in bottom line for
October-December period, boosted by strong user additions and increased data usage, and said it plans to monetise its fibre and tower assets
by bringing in new investors.
The telecom unit of Reliance Industries (RIL), which has upended market since its entry in September 2016 with
cheap mobile Internet services, is demerging its fibre and tower businesses into Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt
Venkatachari told reporters Thursday
For fiscal third quarter, Mukesh Ambani-owned telco posted a net profit of Rs 831 crore, compared with Rs 681 crore in July-September
period, and Rs 504 crore a year ago
ICICI Securities had estimated a net profit of Rs 751 crore.
Backed by an addition of 27.9 million subscribers, monthly average data usage
of 10.8 GB and voice consumption of 794 minutes, operating revenue rose 12.4 per cent sequentially and 51 per cent on year to Rs 10,383
crore for mobile phone operator, which is playing a key role in helping parent Reliance Industries transition from an oil and retail
conglomerate to a technology platform company
Rs 131.7 in last quarter, and from Rs 154 a year back as it added more lower revenue generating subscribers in smaller towns and cities
Ambani, chairman and managing director at Reliance Industries, said in a statement
The carrier was first amongst three private telcos to announce its results for fiscal third quarter, which may not have seen tariffs fall
According to an ET poll, Bharti Airtel and Vodafone Idea are both likely to report sizeable losses late this month or early next, albeit on
a slower pace of revenue fall.
Nitin Soni, director (corporates) at global rating agency Fitch, said "Jio has managed to race past Rs 10K
crore revenue mark at a faster clip than older incumbent carriers due to a combination of its disruptive pricing and a stronger 4G network
experience".
He added that latest telecom entrant is on course to "catch up with Bharti Airtel on RMS (revenue market share) later this year
(calendar 2019), and could even move ahead of Vodafone Idea (VIL) on this score," as current market leader "could lose both revenue and
Supreme Court ruling, restricting use of Aadhaar by private entities.
At Jio, earnings before interest, tax, depreciation and amortisation
(Ebitda) totalled Rs 4,053 crore, up 13.4 per cent sequentially, and 54.2 per cent on year
Quarterly Ebitda margin expanded to 39 per cent from 38.7 per cent in preceding one, and 38.2 per cent a year ago, despite total expenses
rising over11 per cent sequentially, and over 49 per cent on year to Rs 9,106 crore.
Sequentially, network operating costs rose 22.5 per
cent, license fees and spectrum charges were up 15.6 per cent, finance costs gained 9.5 per cent, while depreciation and amortisation
expenses rose 10 per cent
The company recorded a capital expenditure of about Rs 14,000 crore in December quarter, compared with Rs 16,000 crore in previous quarter,
a trend which is going to continue as earnings continue to improve, said Venkatachari.
