Jio juggernaut marches on with 62 percent bottomline growth in Q3 2020

Jio's topline grew 28.2 percent y-o-y; added 1.48 net subs during Q3 2020


BENGALURU: Mukesh Dhirbhai Ambani’s largest start up in the world, Reliance Jio Infocomm Limited (Jio) reported 62.5 percent growth in standalone profit after tax (PAT) for the period ended 31 December 2019 (Q3 2020, period or quarter under review) as compared to the corresponding year ago quarter Q3 2019 (y-o-y). The company reported standalone PAT of Rs 1,350 crore for Q3 2020 as compared to Rs 831 crore for Q3 2019. The company’s standalone EBIDTA (including other income) expanded 38.2 percent y-o-y to Rs 5,601 crore in Q3 2020 from Rs 4,053 crore. Jio says that it became a net recipient of access charges within 2 months of implementation of IUC tariffs, with outgoing traffic in overall offnet traffic reducing to 48 percent by end of quarter.

Further, the company’s standalone revenue from operations for the period under review grew 28.2 percent y-o-y to Rs 13,968 crore from Rs 10,884 crore in Q3 2019. Total income in Q3 2020 grew 28.5 percent y-o-y to Rs 13,986 crore from Rs 10,885 crore.

Jio reported a subscriber base of 37 crore as on 31 December 2019. Gross subscriber additions were 3.71 crore with a net subscriber addition of 1.48 crore during Q3 2020. The company says that the 2.2 crore subscribers that were lost were primarily excessively heavy voice users, and exited owing to implementation of IUC tariffs due to regulatory uncertainty. ARPU during the quarter was Rs 128.4 per subscriber per month Jio says that customer engagement continues to be robust with average data consumption per user per month of 11.1 GB and average voice consumption of 760 minutes per user per month.

Let us look at the other expenses reported by Jio

Amongst the major expenses incurred by Jio in Q3 2020 were network operating expenses, access charges, license fees and spectrum charges and net finance costs.

Jio’s standalone network operating expenses increased 38.7 percent y-o-y in Q3 2020 to Rs 4,423 crore from Rs 3,190 crore in the corresponding year ago quarter.  Standalone access charges reduced 4.2 percent y-o-y during the period under review to Rs 1,442 crore from Rs 1,506 crore in Q3 2019. Standalone license fees and spectrum charges increased 30.5 percent y-o-y during the quarter to Rs 1,483 crore from Rs 1,136 crore. Standalone net finance costs in Q3 2020 increased 79 percent y-o-y to Rs 1,953 crore from Rs 1,091 crore in Q3 2019.

Standalone employee benefit expense in Q3 2020 declined 26.3 percent y-o-y to Rs 314 crore from Rs 426 crore. Standalone selling and distribution expense in Q3 2020 increased 20.3 percent y-o-y to Rs 356 crore from Rs 296 crore. Standalone other expenses in the period increased 32 percent y-o-y to Rs 367 crore from Rs 278 crore.

Company speak

Reliance Industries Limited (RIL) chairman and managing director Ambani said; “Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. We are delivering on our promise to be the driver of digital revolution in the country. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital content and services. To drive the next leg of growth, a truly transformational and disruptive digital services company has been set-up which will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities, for creating a truly Digital Society for each Indian.”

Jio Platforms Limited

Jio says in an earnings release that Jio Platforms Limited will hold all digital platforms including the connectivity platform i.e. Reliance Jio Infocomm Limited. Total capitalisation of Jio Platforms Limited is Rs 1,70,000 crore. The release says that the capital and organisation structure of Jio Platforms Limited has been benchmarked with global technology players.

The Jio release also states that it has been developing and fostering a vibrant digital ecosystem through various digital applications, tools and platforms spanning self-care, information, entertainment, chat, utility tools etc. The release further states that Jio continues to focus on technology enabled emerging digital platforms that enable and accelerate digital society – healthcare, education, agriculture, commerce, gaming, government to citizen services, and many more. The company says that the platforms are also backed by investment in next-gen technologies like blockchain, AI/ ML, AR/ MR, edge computing.

Latest Reads

ALTBalaji management confident of breakeven by April-June 2020

MUMBAI: Ekta Kapoor’s over-the-top platform has managed to solve the OTT revenue question. The ALTBalaji management always spoke of profitability and breaking even rather than cash-burn and tons of investment and it seems that aspiration will soon be achieved.

iWorld Over The Top Services
Hungama Play expands distribution, announces partnership with Skyworth

MUMBAI: Hungama Play, a video on demand platform owned by Hungama Digital Media, announced an expansion of its distribution network by partnering with Skyworth, a Chinese consumer electronics brand. Hungama Play’s multi-lingual and multi-genre library comprising movies, TV shows, kids’ content,...

iWorld Over The Top Services
DocuBay acquires LGBTQ+ documentaries from OUTtv

MUMBAI: DocuBay, the membership video-on-demand streaming service by IN10 Media Network, has acquired LGBTQ+-focused documentary features from OUTtv, the world’s first and Canada’s only LGBTQ+ television network. The films cover a wide range of issues affecting the LGBT community across the globe...

iWorld Over The Top Services
ALTBalaji & ZEE5 announce second season of Code M

MUMBAI: ZEE5 India and ALTBalaji have announced the second season of Jennifer Winget and Tanuj Virwani-starrer Code M, and Riddhi Dogra and Monica Dogra-starrer new web series ‘A Married Woman’, based on Manju Kapur’s novel. These key announcements were made in the presence of actors including...

iWorld Over The Top Services
Shahabuddin Shaikh joins ALTBalaji as CTO

MUMBAI: ALTBalaji has appointed Shahabuddin Shaikh as the chief technology officer (CTO). In his new role, he will be responsible for designing a strong tech-driven ecosystem that seamlessly aligns with the brand’s tech vision and leading their overall technology transformation goals.  Shaikh will...

iWorld Over The Top Services
Chiliz aims US, European sports markets through strategic partnership with Lagardère Sports

MUMBAI: Chiliz, the blockchain fintech provider for sports and entertainment, has partnered with Lagardère Sports, a sports and entertainment marketing agency, to further propel cryptocurrency into mainstream sport. The partnership will see Lagardère Sports working hand-in-hand with the Chiliz team...

iWorld Gaming
Of gaming and opportunities, a look into the Indian esports ecosystem

MUMBAI: Esports is a fairly new buzzword in the country. While esports tournaments have been a part of the country’s gaming ecosystem for quite some time, in the past couple of years, the popularity has surged high enough to attract international attention and now many are scrambling to get a slice...

iWorld Gaming
Filmfare Awards to simulcast on Facebook globally

MUMBAI: Worldwide Media, India’s leading lifestyle and entertainment content company, has entered into a strategic partnership with Facebook for its iconic Filmfare Awards Franchise. The year-long partnership will provide exclusive non-linear digital simulcast partnership to the entire Filmfare...

iWorld Social Media
Watcho streams special original series for Valentine’s Day

MUMBAI: With Valentine’s Day just around the corner, Dish TV India Limited, India’s leading DTH Company is all set to premier two new shows on its OTT platform, Watcho. Watcho is giving a chance to its viewers to get immersed in the season of love through their daily episodic show ‘Love Horoscope’...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required