NEW DELHI: Mukesh Ambani- owned Reliance Jio reported a standalone net profit of Rs.681 crore for the second quarter ended 30 September 2018.The company had posted a net loss of Rs 271 crore in the year-ago period.
On the other hand, Jio reported an average revenue per user (ARPU) declined to Rs. 131.7 from Rs. 134.5.
The company’s standalone revenue from operations stood at Rs 9,240 crore, up 13.9% sequentially. Standalone EBITDA stood at Rs 3,573 crore, up 13.5% sequentially, while EBITDA margin stood at 38.7%
Going ahead, jio now has a user base of 250 million within 25 months of its operation in India.
In Q2, the company added 37 million new subscribers, taking the total customer base to 252.3 million at the end of September quarter.
With this achievement, Jio has become the third largest telecom operator in India, after Bharti Airtel and Vodafone-Idea.
Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Jio was conceived with a mission to connect everyone and everything, everywhere – always at the highest quality and the most affordable price. We, at Jio, are glad with our progress towards our mission with more than 250 million subscribers on our network within 25 months of commencement of services. We have enabled our customers to adopt the digital life, with record consumption of data and use of digital services. Our next generation FTTH and enterprise services are now being made available to our customers to further enhance our value proposition to our customers.
“We are making rapid progress on the growth of our digital platforms, across new commerce, media and entertainment, agriculture, education, healthcare and financial services, which will further enhance the quality of life and productivity of the people of India,” he added.
Strong Customer Engagement
Jio has accelerated its pace of subscriber additions further with net addition during the quarter of 37.0 million (as against 28.7 million in the previous quarter), highest in any quarter since the launch of commercial services
Gross adds at 41.7 million and churn of 4.7 million implying the lowest industry churn rate at 0.66% per month
Customer engagement continued to grow with average data consumption per user per month of 11.0 GB and average voice consumption of 761 minutes per user per month
Video consumption drove most of the usage, increasing to 410 crore hours per month on the network; average video consumption of 17.5 hours per subscriber per month
Jio post-paid plan with attractive international calling tariffs and roaming plans continues to see good customer traction
JioPhone Monsoon Hungama offer (by Reliance Retail) with exchange policy and lower upfront commitment has accelerated customer uptake
Next-Gen Network
Further deepening of all-IP 4G LTE network in existing areas along with coverage expansion to 99% of population is on track to be completed in FY19
Only network to deploy tri-band (800MHz/ 1800MHz/ 2300MHz) pan-India 4G
World’s largest mobile data consumption network which is 5G ready
World’s largest VOLTE network, with voice traffic growing consistently
Ranked fastest network over last 20 months by TRAI’s MySpeed Analytics app (average download speed of 20.6 Mbps during September 2018, as per TRAI)
Lowest call drop rate at 0.14%; 100% core network availability
FTTH and Enterprise Services
JioGigaFiber services for Home broadband, Entertainment, Smart Home Solutions, Wireline and Enterprise was announced during 41st AGM (Post IPO) of RIL held on 5th July 2018
Customers across 1,100+ cities have evinced strong interest to avail JioGigaFiber services since the start of registrations on 15th August 2018. Homes are being connected on priority based on the number of requests received in the area
Reliance Industries Limited, parent of the Company, today announced strategic investments in and partnership with Den Networks Limited and Hathway Cable and Datacom Limited:
Primary investment of Rs. 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs. 245 crore from the existing promoters for a 66% stake in Den Networks Limited
Primary investment of Rs. 2,940 crore through a preferential issue under SEBI regulations for a 51.3% stake in Hathway Cable and Datacom Limited
The transactions are subject to customary regulatory approvals
These investments and partnerships will create a win-win outcome for the Local Cable
Operators (“LCOs”), Consumers, Content providers and overall eco-system.
Through these investments, Reliance and Jio will be strengthening the 27,000 LCOs that are aligned with DEN and Hathway to enable them to participate in the digital transformation of India through (a) access to superior back-end infrastructure; (b) tie-ups with content producers; (c) access to latest business platforms to improve business efficiencies and deliver customer experience; and (d) investment in digital infrastructure for connecting customers. This will create multiple future opportunities for LCOs as Jio rolls out new services and platforms.
Jio has already started work on connecting 50 million homes across 1,100 cities. It will work together with Hathway and DEN and all the LCOs to offer a quick and affordable upgrade to a world-class line-up of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities. This will accelerate
Jio’s commitment to connect 50 million homes with JioGigaFiber in the shortest possible time.
Largest Distribution and Service Network
Pan-India distribution channel with over 1 million retailers
Continuous enablement of distribution channel through latest platforms and services
Auto-recharge and Auto-pay to get a zero-touch service experience
MyJio is the most popular self-care app with additional features to enable single customer touch point across services
Voice BOT (Hello Jio) rolled out with MyJio to address customer queries
Suite of Differentiated Digital Offerings
JioTV is the best rated live and catch-up TV app; JioCinema is the most popular video-on-demand app; JioMusic and Saavn together is music powerhouse with over 40 million songs; JioMags and JioNews are other highly popular customer offerings
Announced a 5-year partnership with Star India to make all televised India-cricket matches held in India (T20, ODIs, International Test Matches, and Premier BCCI domestic competitions) available to users of JioTV in India
Announced strategic arrangement with Disney to get all of Disney content on Jio platforms
Strengthened the KaiOS app-store for JioPhone users with customised versions of popular social media applications like YouTube, WhatsApp and Facebook
Post operationalization of Jio Payments Bank (a 70:30 JV between RIL and SBI), Jio and SBI deepened their digital partnership. SBI-YONO’s digital banking features and solutions will be enabled through the MyJio platform for a seamless, integrated and superior customer experience. Additionally, SBI will be engaging Jio as one of its preferred partners for designing and providing network and connectivity solutions
Financial Performance Reflects Robust Business Fundamentals
Strong financial performance despite competitive pressures led by growth in subscriber additions and industry leading customer engagement
Industry leading Revenue and EBITDA growth over the past four quarters driving sustained market share gains
BUSINESS UPDATE
1.Jio has built a next generation all-IP data network with latest 4G LTE technology. It is the only network built as a Mobile Video Network and for providing Voice over LTE technology. It has built a future ready network which can easily deploy 5G and beyond technology in the last leg. Jio has created an eco-system comprising network, devices, applications and content, service experience and affordable tariffs for everyone to live the Jio Digital Life.
2.Jio has created a strong data network with infrastructure and backhaul for offering wireless services, wireline services, FTTH, Enterprise offering, IOT services and other digital services. These will lead to sustained growth in data consumption on the network.
3.Jio continues to be the most popular wireless broadband service provider in the country with its subscriber base increasing to 252.3 million as of 30-September-2018. Net subscriber addition for the Company during the past twelve months was 114 million, which is the highest in the industry by a substantial margin. The growth in subscriber base is getting further accelerated with Monsoon Hungama offer for JioPhone, attractive post-paid offerings, and focused partnerships to deepen mobile data penetration in the country.
4.The engagement metrics of the Jio subscribers is the highest in the industry in India and among the highest globally as well. Average data consumption at 11.0 GB per user per month, average voice consumption at 761 minutes per user per month and average video consumption at 17.5 hours per user per month make Jio the leader in the industry across all of these service offerings. Average data consumption has continued to increase despite higher base, primarily driven by superior network performance and improving use cases on the Jio platform.
5.Reliance Retail Ltd launched the ‘Monsoon Hungama’ offer for JioPhone with upfront security deposit of only Rs 501 for a new JioPhone during the quarter. The offer works in conjunction with return of an old feature phone. Also, JioPhone 2, which offers a larger screen and full QWERTY keyboard for a price of ₹ 2,999 has been offered through limited-period flash sales. Most used social media applications like YouTube, Facebook and WhatsApp are now available for Jio Phone users.
6.The company announced its JioGigaFiber services for Homes and Enterprise at the 41st AGM (post IPO) of RIL held on 5th July 2018. Customers have shown overwhelming interest to avail JioGigaFiber services and homes are being connected on priority based on the requests received from the neighbourhood. Homes connected in the initial phase have
witnessed meaningful increase in data consumption led by superior user experience on dedicated fiber connectivity to every home.
7.Jio’s end-to-end all IP network is the most differentiated network with functionalities such as SDN and NFV. It has been consistently rated as the fastest network in India by TRAI’s
MySpeed application over the last 20 months with an average download speed of 20.6 Mbps during September 2018. Jio has also been consistently rated to have the widest LTE coverage in the country.
8.During the quarter, Jio was awarded the 1st rank in The Fortune Change the World 2018
List of global companies. Jio brand was also recognised as one of the ‘Champions of Rural Market’ by Economic Times in September 2018. Jio KBC recently won ‘Best Integrated Branded Content’ and ‘Best use of Mobile Medium for Marketing’ awards during Indian
Content Marketing Awards. Jio also ranked among Top-3 Most Influential Brands in India as per a survey by Ipsos in July 2018.
