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.
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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