Reliance Jio Q1 Results: Net Profit Grows 45.6 Percent, Users Increase 54 Percent

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Jio user base has hit 331.3 million, officially surpassing Bharti Airtel's market share and continuing on the track of growth that has been set from the start.

  • News18.com
  • Last Updated: July 20, 2019, 4:20 AM IST
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Reliance Jio announced its financial report for 1Q20, declaring a clear and consistent upward curve in the Indian telecommunications sector. Data from the Telecom Regulatory Authority of India further revealed alongside the report that Jio has officially surpassed Bharti Airtel to become India's second largest telecom operator, with a 53.9 percent annual increase in total subscriber count to reach a total of 331.3 million users in the country. Net profit for the operator rose 45.6 percent YoY to reach Rs 891 crore, while operating revenue proportionally rose by 44 percent to Rs 11,679 crore.

The rise has remained consistent with virtue of increased EBITDA margins as well, which stands at 40.1 percent for the quarter at an increase of 130 basis points. The average revenue per user for the quarter stood at Rs 122 per user per month, which is a surprising 9.3 percent decline against the figure of Rs 134.5 for 1Q19. Nevertheless, Jio showed consistent and strong growth in all other financial and usage metrics. The quarter saw net addition of 24.5 million users, while the monthly churn rate (i.e. the ratio of subscribers leaving the network in comparison to those joining) still remained below 1 percent, at 0.97 percent.

Jio has continued to see increased volumes of usage, with total data traffic for the quarter standing at 1.06 million TB, and total voice traffic for the network amounting to 786 billion minutes. Per-user average data consumption averaged 11.4GB, while an average of 821 minutes of voice calls are said to have been made by each user in every month of this quarter. As stated by Jio, the volume of daily voice traffic increased by 75 percent every year. The consistent data and voice prices, coupled with frequent offers, discounts and bundled infotainment plans have further helped Jio consolidate its market position, which is further aided by its top ranking in TRAI data for download speeds on mobile networks.

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