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HomeNewsTelecom NewsRJio surprises analysts with 19.2% growth in its net profit amidst rivals’ heavy losses
Saturday, 28 July 2018 05:07

RJio surprises analysts with 19.2% growth in its net profit amidst rivals’ heavy losses

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While Bharati Airtel posted heavy losses in June quarter, the new entrant telco Reliance Jio’s net profit is up 19.2%, though its ARPU has declined. 

The telco’s subscriber base reached 215.3 million as on June 30, 2018 with the net addition of 28.7 million, against 26.5 million in the previous quarter.  This is its third straight profitable quarter, with a 20% expansion sequentially in the bottom line for the April-June period on the back of strong user additions and increased data usage.

Jio posted a net profit of Rs. 612 crore for the fiscal first quarter, compared with Rs.510 crore in the January-March period. Its operating revenue rose 13.8% sequentially to Rs. 8,109 crore. Jio's revenue surpassed that of Vodafone India which had recently posted Rs. 7,860 crore in the fiscal first quarter.

According to an analyst: "Jio has beaten estimates by clocking strong 13.8% sequential revenue growth in the June quarter, driven by a sharp jump in subscriber additions.”

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