Updated: January 18, 2020 8:45:16 am
Reliance Jio has released its third quarter results for 2019 in which it posted strong financial results, with net additions of 14.8 million subscribers. Jio’s total subscriber base stood at 370 million users on December 31. During the quarter, it posted a growth of 38 per cent year-on-year (YoY) on EBITDA margins at Rs 5601 crores.
Jio added a total of 135.7 million subscribers during the course of the year, and based on the results it is the only profitable telecom company in India right now. The net profit for Reliance Jio’s telecom sector stood at Rs 1,350 crores, which represented a yearly growth of 62.5 per cent.
Jio’s average revenue per user (ARPU) in the quarter stood at Rs 128.4 per subscriber per month. It saw a total of 1208 crore GB of wireless data traffic during the quarter, which marks 39.9 per cent yearly growth. The total voice traffic during the quarter stood at 82,640 crore minutes, which was 30.3 per cent year-on-year growth.
But it appears that the Interconnect Usage Charges (IUC) had an impact on Jio’s subscribers as well. While Jio’s gross or total subscriber additions stood at 37.1 million users in the quarter, it claims to have ‘eliminated’ around 22 million subscribers, which is why the net additions of subscribers stood at 14.8 million.
Jio claims these 22 million subscribers left because of “primarily excessively heavy voice users, owing to implementation of IUC tariffs due to regulatory uncertainty.” The telecom company had introduced IUC tariffs in the quarter and had revised its prepaid packs across the board. The introduction of IUC tariffs at the rate 6 paise per minute reduced off-net traffic by 48 per cent, according to the company. Off-net traffic refers to calls that are made outside the telecom operator’s network, which in this case would be calls from Jio to say Vodafone or Airtel.
Regarding data and call usage by customers, Jio’s numbers showed that its customers used an average of 11.1GB of data per month and 760 voice minutes per month. Jio also claims to have become the largest distribution and service network pan-India with over a million retailers for customer acquisition and selling recharges. With these they pull in around more than 12 million subscribers monthly.
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