Reliance Industries’ telecom arm, Jio, has unveiled its quarterly results for the third quarter ending December 2023. The company reported a notable 12.3% year-on-year growth in net profit, reaching Rs 5,208 crore, breaking the trend of slower growth witnessed in the previous four quarters.
This surge in profit is attributed to increased subscriber additions and the success of its budget-friendly 4G phone. Over the past four quarters, Jio’s profit growth had decelerated from 28.3% to 11.95%, making this quarter’s performance a significant rebound. Jio, being the first telecom operator to announce results for this quarter, disclosed a 10.3% growth in revenue from operations, ending a streak of five consecutive quarters of slowing growth.
Total expenses for Jio rose by just under 10%, aligning closely with its revenue growth. The telecom giant has been actively focusing on enhancing user growth, notably through the recent launch of a budget-friendly 4G phone and the wireless broadband service Jio AirFiber.
JioBharat, a budget-friendly option introduced by Jio, has played a crucial role in expanding Jio’s subscriber base and contributing to the impressive growth in the digital services business. The JioBharat platform, featuring the 4G JioPhone Prima, was strategically launched to boost user growth. With three pricing options ranging from Rs 999 to Rs 2,599, the platform offers customers diverse choices, providing access to popular apps like YouTube, Facebook, WhatsApp, and Jio Entertainment Apps.
JioBharat has secured a market share of over 45% in the sub-Rs 1,000 segment. Another success for Jio is the JioAirFiber service, available in over 4,000 cities/towns, with pan-India coverage expected in the first half of CY24. Early indicators suggest promising demand and customer engagement. Content bundling has led to approximately 30% higher per capita usage on JioAirFiber compared to JioFiber, according to the official company release.
Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, expressed his satisfaction with the results, acknowledging the robust operating and financial performance across their businesses. Ambani highlighted Jio’s achievement in completing the fastest rollout of True 5G services in India, covering every city, town, and village in the country. He emphasized that this extensive digital connectivity would usher in a new era of unparalleled digital accessibility and technology-led growth.
The success of JioBharat and JioAirFiber has played a pivotal role in the continued expansion of Jio’s subscriber base, contributing significantly to the stellar growth numbers in the digital services business.
Reliance Industries had previously launched the internet-enabled feature phone, Jio Bharat, in July, priced at Rs 999. This move aimed to attract a larger share of the 250-million entry-level mobile broadband customers, particularly in rural markets. The Jio Bharat phone offers 30% cheaper monthly plans and seven times more data compared to feature phone offerings from other operators. The company introduced two plans at Rs 123 per month and Rs 1234 for a year, both including unlimited calling and 14GB of data per month.
Jio, like its competitors, refrained from tariff hikes in the quarter. The last round of price increases occurred in 2021, and analysts anticipate the next round in mid-2024, following India’s general elections.