Jio announces Net Profit for the year at INR 723 Crore

Jio announces Net Profit for the year at INR 723 Crore

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Registers 17.4% Q-O-Q GROWTH IN DATA CONSUMPTION

POSITIVE NET INCOME IN THE FIRST YEAR OF COMMERCIAL OPERATIONS; NET PROFIT FOR THE YEAR AT Rs 723 CRORE

ROBUST FINANCIAL PERFORMANCE IN A COMPETITIVE MARKET ENVIRONMENT SUSTAINED GROWTH IN SUBSCRIBER BASE TO 186.6 MILLION
STRONG CUSTOMER TRACTION ON DIGITAL OFFERINGS

DATA CONSUMPTION AT RECORD 506 CRORE GB IN THE QUARTER; 17.4% Q-O-Q GROWTH IN DATA CONSUMPTION

WORLD’S FASTEST GROWING & MOST EFFICIENT DIGITAL SERVICES PLATFORM

  • Standalone revenue from operations of Rs. 7,128 crore (3.6% QoQ growth)
  • Standalone EBITDA of Rs. 2,694 crore (2.5% QoQ growth) and EBITDA margin of 37.8%
  • Standalone Net Profit of Rs. 510 crore
  • Subscriber base as on 31st Mar-18 of 186.6 million
  • Lowest churn in the industry at 0.25% per month
  • ARPU during the quarter of Rs. 137.1/ subscriber per month
  • Total wireless data traffic during the quarter of 506 crore GB
  • Total voice traffic during the quarter of 37,218 crore minutes

Commenting on the results, Shri Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “A full-blown social, mobile and digital revolution is underway across the world, and I am glad that India is not being left behind in any way with the advent of Jio. Everyone at Jio is today proud to have played a pivotal role in transforming the digital landscape of this country and empowering millions of Indians with all the leading digital tools and skills. Jio is offering the “power of data” to each Indian to fulfil every dream and to collectively take India to Global Digital Leadership. The strong financial results of Jio in a competitive market environment demonstrates the robustness of the Jio business model and ability to offer the most value to our customers and partners. Jio has demonstrated that it can scale and sustain its strong financial performance.”

Strong Customer and Business Growth

  • Jio has continued its strong subscriber growth trend with net addition during the quarter of 26.5 million (as against 21.5 million in the previous quarter)
  • Gross adds at 27.9 million and churn of only 1.4 million implying the lowest industry churn rate at 0.25% per month
  • Jio subscribers continue to demonstrate high activity level with average data consumption per user per month of 9.7 GB and average voice consumption of 716 minutes per user per month
  • Video consumption is at over 240 crore hours per month on the network; Jio apps continue to be highly popular
  • Jio tariff plans continue to offer highest value to customers
  • Jio was awarded the “Best Mobile Operator Service for Consumers” at the Global Mobile Awards 2018

Superior Network Quality

  • Continued expansion of 4G network coverage and further deepening in existing areas to achieve 99% population coverage during 2018
  • Only network to deploy pan-India 4G across the 800MHz/ 1800MHz/ 2300MHz bands
  • World’s largest mobile data consumption network
  • World’s largest VOLTE network
  • Ranked fastest network over last 15 months by TRAI’s MySpeed Analytics app (average download speed of 17.9 Mbps during March 2018, as per TRAI)
  • Lowest call drop rate; 100% network availability Largest Distribution and Service Network
  • Pan-India distribution channel with over 1 million retailers
  • Rapidly growing base of Reliance Retail digital outlets and Jio Points
  • Continuous enablement of distribution channel through latest platforms and services
  • MyJio is the most popular self-care app with over 150 million downloads and substantial additional features Suite of Differentiated Digital Offerings
  • All of the digital applications and services offered to customers are leaders in their respective categories
  • JioTV is the best rated live and catch-up TV app; JioCinema is the most popular videoon-demand app; combination of JioMusic and Saavn has created a music powerhouse; JioMags and JioNews are other highly popular customer offerings
  • Strategic transaction between Reliance Industries Limited and Saavn to form India’s largest platform for music, media & artists Financial Performance Reflects Business Potential
  • Positive Net Profit in the first year of commercial operations
  • Strong financial performance despite competitive pressures
  • Strong operating margins due to business efficiencies and scalable business model

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 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 further 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 from 160.1 million as of 31-December-2017 to 186.6 million as of 31-March-2018. Net subscriber addition for the Company during the year 2017-18 was at 83 million, which was the highest in the industry by a substantial margin.
    Jio continues to have India’s largest wireless data subscriber base, with the gap widening from the other operators. The growth in subscriber base is getting further accelerated with the increasing availability of JioPhones.
  4. The engagement metrics of the Jio subscribers is also the highest in the industry in India and one of the highest globally as well. Average data consumption at 9.7 GB per user per month, average voice consumption at 716 minutes per user per month and average video consumption at 13.8 hours per user per month make Jio the leader in the industry across all of these service offerings.
  5. 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 15 months with an average download speed of 17.9 Mbps during March 2018, which was more than twice the network speed
    available on any other network. Jio has also been consistently rated to have the widest LTE coverage in the country.
  6. Jio’s simplified and innovative tariff plans enable its customers to have unrestricted access of Jio Digital Life. During the last quarter, Jio offered various schemes to its customers to further broaden the scope of Digital Life including Jio Cricket Gold Pass, JioPrime extension, offers for digital recharges etc.
  7. During the quarter, Jio offered unique content to its subscribers such as PyeongChang 2018 Olympic Winter Games, Nidahas Cricket Trophy, Carabao Cup Final, JioDDD live, Jio Cricket Play Along etc. JioTV became the first broadcaster to offer multi-channel and multi-lingual feed for cricket matches.
  8. During the quarter, RIL announced a strategic transaction for combination of JioMusic with Saavn, a leading global music OTT platform, to form India’s largest platform for music, media and artists, wherein the combined entity was valued at over US$1 billion, with JioMusic’s implied valuation at US$ 670 million. RIL also announced an agreement to acquire 72.7% shareholding in Indiavidual Learning Pvt Ltd (“Embibe”), a leading AIbased education platform leveraging data analytics to deliver personalized learning outcomes to each student. RIL also announced a partnership with Eros Media to jointly set-up a Rs. 1,000 crore fund for production and acquisition of Indian films and digital
    originals across all languages.
  9. During the quarter, Jio was awarded the 1st rank in India and 17th globally in the Fast Company’s World’s 50 Most Innovative Companies list for 2018. It has also won the “Best Mobile Operator Service for Consumers” award at the recent Mobile World Congress 2018. It was awarded with “The Disruptors” title in the CNBC – TV 18’s India
    Business Leader Awards 2018. JioTV won the “Best Mobile Video Content” award at
    the Global Mobile Awards 2018.
  10. The Company continues to make progress for delivering Enterprise solutions, FTTH and IOT with beta trials initiated in a few locations. These services are being offered using the same integrated network and platforms.