Jio Posts its First Net Profit

Reliance Jio Infocomm posted its first net profit since starting services, buoyed by strong subscriber additions and cost efficiencies, including sharply lower payments of interconnection charges.

The Mukesh Ambani-owned company, which upended the market since its entry in September 2016 with its initially free voice and data offerings, posted a profit of ₹504 crore and a 12% on-quarter increase in revenue to ₹6,879 crore in the three months ended December. India’s fourth-largest telco by users made a net loss of ₹271 crore in the three months ended September, when it reported results for the first time.

The company’s average revenue per user  — a key performance parameter — stood at ₹154 compared with ₹156.4 in the previous quarter. Earnings before interest, tax, depreciation and amortisation (Ebitda) were ₹2,628 crore, surging over 82% sequentially, with an Ebitda margin of 38.2%, compared with 23.5% in the previous quarter.

Jio added a net 21.5 million customers to end December with 160.1 million users. With its rivals having more users, Jio is a net payer of interconnection usage charges, which were reduced by the telecom regulator by 57% from October 1. Jio paid about Rs 1,082 crore as IUC, less than the almost Rs 2,140 crore in the previous quarter.

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