Jio also stemmed subscriber losses after three quarters, reporting 9.7 million net additions, taking its subscriber base to 419.9 million by the end of the quarter.
Analysts said this signaled an end to the SIM consolidation it witnessed since the increase in tariffs late last year.
For the April-June quarter, JPL’s consolidated net profit stood at Rs 4,530 crore from Rs 4,313 crore in the January-March quarter and Rs 3,651 crore in the year-ago period, the company said on Friday.
“Customer engagement on our digital services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions,” said Mukesh Ambani, chairman, Reliance Industries<\/a> (RIL), in the statement.
RIL is the parent entity of JPL.
FTTH, or fibre-to-the-home, refers to home broadband connections based on fibre connectivity.
As per industry<\/a> data published by the telecom regulator, Jio has over 80% market share of new customer additions in the wireline segment, JPL said.
JPL’s quarterly gross revenue rose nearly 24% on-year and over 5% sequentially to Rs 27,527 crore driven by the residual impact of tariff hikes and acceleration in home broadband connections, the company said.
The company, established in October 2019 as a wholly owned unit of Reliance Industries, houses the Mukesh Ambani-owned group’s telecom business Reliance Jio Infocomm<\/a>, the largest in the country, and other digital properties and investments. Reliance Jio though makes up the bulk of JPL’s numbers.
Reliance Jio reported a nearly 24% on-year rise in net profit in the first quarter of fiscal year 2022-23.
The telco’s business net profit for the quarter ended June 30 was Rs 4,335 crore, compared to Rs 4,173 crore in the previous quarter, and Rs 3,501 crore in the year ago period.
Revenue stood at Rs 21,955 crore, up nearly 5% from Rs 20,945 crore in the March quarter, and 22% higher than Rs 18,008 crore the year before.
ARPU, a key performance metric for the telecom business, grew sequentially to Rs 175.7, up 4.8% from Rs 167.6 in the previous quarter and 27% year on year.
Average wireless data consumption per user per month rose to 20.8 GB from 19.7 GB in the March quarter. Average voice consumption rose to 1,001 minutes from 901 minutes a month.
“Jio's decent sequential ARPU growth in the June quarter is largely triggered by the continuing beneficial impact of the tariff hike taken last December as the telco has a larger share of customers on longer duration plans,\" Rohan Dhamija, head (India & Middle East) at Analysys Mason, told ET.
He added that Jio also reported strong customer additions in the fiscal first quarter, most likely at Vodafone Idea's expense, and because of the completion of its prolonged clean-up of low value customers.
Jio is expected to be the most aggressive bidder for 5G spectrum in the auctions starting July 26. It has put in an earnest money deposit (EMD) of Rs 14,000 crore, the highest among potential bidders. EMD signifies the extent to which a company can bid in the spectrum sale.
“We have created a completely indigenous and homegrown 5G stack with not just the 5G core network elements, but also all of the other elements that are required to operate the 5G network,” said Kiran Thomas, president, Reliance Industries. “These will be deployed at scale within the Jio network to begin with and later create a new revenue line that we are able to take to other markets even outside India.\"
He added that these elements have been used to demonstrate use cases in nine cities including Mumbai and Delhi. These are the markets Jio anticipates will see 5G services being rolled out initially.
Jio said that acceleration in FTTH connections is leading to higher customer engagement and adoption of digital services. It has started rolling out its post-paid offers into the market and has seen good adoption of the same.
\"We found that almost 80% of the new homes are opting for those post-paid packages. And what that means is higher stickiness, especially these long-term post-paid plans and of course, less disruption since post-paid gives (the customers) continuity of service,\" Thomas said.
Earnings before interest, tax, depreciation and amortization (Ebitda) margins narrowed to 48.7% from 49% in the January-March quarter, amid “inflationary pressure on operating costs,” the company said.
Total quarterly expenses for Reliance Jio rose 5% sequentially to Rs 16,137 crore, including a 4.7% rise in network operating costs, the company said.
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