After 18 months of initial launch of Jio, the company finally turns profitable in the last quarter, according to the Reliance Industries financial and operational report for Q3 of financial year 2017-18. The Reliance Jio Infocomm finally garners a stand alone profit of Rs.504 crore in third quarter from a loss of Rs.271 crores in second quarter.
Mukesh Ambani led $30 billion start-up Jio Infocomm was launched back in September, 2016 and took a minimal period of 18 months to collect profit. Start-up company went to provide complete VoLTE network to users that too at very low prices, in competition to cut-throat competitors like Airtel, Vodafone and Idea.
In total, Reliance Industries Ltd. which includes oil and gas, petrochemical, refinery and newest in the line – digital business services stands at a net profit of Rs.8,454 crores in the December quarter jumping up from Rs.8,022 from last year. Commenting on the development, Mukesh Ambani said;
“I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – digital services.”
Apart from the profit, Jio also hits the milestone benchmark of 160.1 million user subscribers, witnessing a gross subscriber addition of 27.8 million, and a net subscriber addition of 21.5 million. Jio Infocomm also reported in a statement on Friday that start-up garnered average revenue per user of Rs.154 per month.
Reliance Jio Infocomm has dismantled Indian Telecom sector with a harder effect resulting into mergers of Vodafone India and Idea Cellular. Bharti Airtel is also reporting falling profits straight from last eight quarters.
The company also reported about video consumption of 2 billion hours a month, Wireless traffic of 9.6GB per subscriber per month and voice traffic of 694 minutes per subscriber per month. Commenting on the results, Reliance Industries Ltd. said in a statement that;
“The growth in subscriber base is getting further accelerated through the launch of Jio Phone, which has expanded the reach of Jio Digital Services to all the feature phone users as well. Reliance Retail Ltd is geared to increase capacity of supply of Jio Phone, considering the tremendous response from Indians to embrace Digital Life.”