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Reliance Jio reports 8th profitable quarter in row; posts Rs 990 crore profit

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Reliance Jio on Friday reported a net profit rise of 45.4 per cent to Rs 990 crore as against the corresponding period of the last year. It was the eight straight profitable quarter for the Mukesh Ambani-led telecom firm. The operating revenue was up by 33.7 per cent to Rs 12,354 crore in the quarter under review. Jio's average revenue per user (ARPU) fell for the seventh consecutive quarter. The ARPU stood at Rs 120 with 355.2 million subscribers of September end. Consumer businesses, which till last year accounted for a quarter of the company’s pre-tax profit, contributed a third of EDITDA in the second quarter. The retail business EBITDA rose 13 per cent to Rs 2,322 crore while telecom arm Jio posted a net profit of Rs 990 crore.

"Jio crossed the 350 million subscriber mark to remain the world’s fastest-growing digital services company, and we are still adding more than 10 million new customers every month. Jio is not only India’s largest telecom enterprise in terms of subscribers and revenues but has also become the Digital Gateway of India," Reliance Industries Chairman and Managing Director Mukesh D Ambani said in a statement.

Meanwhile, RIL's telecom arm Reliance Jio is the only operator whose user base expanded in August 2019 while rivals including Vodafone-Idea and Sunil Bharti Mittal's Airtel continued to lose subscribers. According to the latest data from telecom watchdog TRA, Vodafone-Idea lost over 49 lakh subscribers and Bharti Airtel's base shrunk by over 5 lakh users. On the other hand, Mukesh Ambani's three-year-old firm Jio added over 84 lakh new users. However, the telecom operator is yet behind Vodafone-Idea in the wireless segment and according to the same TRAI data, Jio has about 29.74% of the market share while Vodafone-Idea has 32.03% share with over 37 crore subscribers in the wireless segment.

Overall, total telephone subscribers increased by 0.21% as compared to July. The number is inclusive of wireless and wireline subscribers. Further, "4.86 million subscribers submitted their requests for Mobile Number Portability (MNP). With this, the cumulative MNP requests increased from 447.41 million at the end of July 2019 to 452.26 million at the end of August 2019," TRAI said in a statement.