The Business Bytes
Mumbai, October 14, 2024 (TBB Bureau): Jio Platforms, the digital and telecom arm of Reliance Industries, posted a robust 23.4% year-on-year increase in consolidated net profit for Q2 FY25, reaching Rs 6,539 crore. The significant growth was driven by a surge in average revenue per user (ARPU), which climbed to Rs 195.1 per month.
The company’s revenue from operations also saw an 18% rise, totaling Rs 31,709 crore in the quarter ending September 2024. Gross revenue stood at Rs 37,119 crore, reflecting a 17.7% increase compared to the same period last year.
Jio’s ARPU — a key metric for telecom operators—was bolstered by the partial impact of a recent tariff hike and a more favorable subscriber mix. The ARPU of Rs 195.1 represents a 7.4% increase from Rs 181.7 in Q1 FY25 and Q2 FY24. The full effect of the tariff hike is expected to be realized over the next two to three quarters, according to the company’s earnings statement.
Subscriber engagement continued to strengthen, with total data and voice traffic growing by 24% and 6.4%, respectively. Despite a slight increase in monthly churn to 2.8%, the company reported minimal SIM consolidation following the tariff hike, offset by strong gross additions in Q2 FY25.
Jio has rapidly expanded its 5G footprint, amassing 148 million 5G subscribers in less than two years since launch, making it the largest 5G operator outside China. The company emphasized its leadership in India’s 5G transformation, underpinned by its extensive spectrum holdings, 5G standalone architecture, and advanced technologies such as Carrier Aggregation and Network Slicing.
“Jio has transformed India from 5G-dark to 5G-bright, setting new standards with unmatched technological advancements,” the company said in a statement.
Akash M Ambani, Chairman of Reliance Jio Infocomm, highlighted Jio’s focus on deep tech innovation to drive value for customers and shareholders. “The digital transformation brought by Jio True5G and JioAirFiber is just the beginning. The next frontier is AI, and Jio is committed to building the world’s best AI ecosystem right here in India,” he said. Ambani also reaffirmed Jio’s dedication to delivering strong shareholder returns, as evidenced by the company’s financial performance this quarter.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, noted that the growth in Jio’s digital services was propelled by increased ARPU and improved customer engagement metrics. “These results reflect the strong value proposition that Jio offers its customers,” he added.
