Reliance Jio, India''s largest telecom company, posted a 24 percent increase in standalone net profit for the fourth quarter ended March 2022, owing to an increase in tariffs, improved subscriber mix, and a surge in FTTH services.
Combined earnings from operations increased by roughly 20.4 percent year on year to Rs. 20,901 crore.
In FY22, the mobile SIM consolidation was resulted of a tariff rise in December. A net decrease of 10.9 million in customer base.
For Jio Platforms, the business that holds telecom and digital businesses was consolidated net profit for the just-ended quarter of Rs. 4,313 crore, up nearly 23 percent year on year. The gross income for the March 2022 quarter was at Rs. 26,139 crore, which was 21 percent higher.
The total customer base in March 2022 stood at 410.2 million, while ARPU, a key metrics for all telecoms, increased during the quarter to Rs.167.6 per subscriber per month.
In the December quarter, the average income per user or ARPU was lowered to Rs. 151.6 per subscriber per month.
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"ARPU" recorded a steady 21 percent growth on a year-on-year basis, with 10.5 percent growth on a quarter-on-quarter basis," said their parent company.
During the quarter, the total data traffic increased to 24.6 billion GB, translating into a 47 percent increase.
According to the company''s report, Jio Platforms'' gross income for the whole fiscal year 22 has increased to Rs 95,804 crore, 17.1 percent higher than the previous fiscal.
Jio Platforms'' net profit for FY22 was Rs. 15,487 crore, compared to the previous year by 23.6 percent.
The telecom services division Reliance Jio''s total PAT increased by about 23% to Rs. 14,854 crore for the financial year ended March 31, 2022, comparativement to Rs. 12,071 crore for the year.
In 2021-22, the annual earnings from operations increased by approximately 10.3 percent to Rs. 77,356 crore.
"SIM consolidation following the tariff increase in December 2021 led to a net decrease of 10.9 million in customer base in the fourth quarter of fiscal year," said the statement.
The gross subscriber increase increased by 4.1 percent for the fourth quarter of fiscal year 22 compared to the same amount in previous year. Despite significant growth in mobility and FTTH (fibre to the home) companies, the total gross increase increased by 35.5 million in 2013 (excluding taxes).
During the 4Q FY22, the average data and voice consumption per user per month increased to 19.7GB and 968 minutes.
"Jio is now the country''s #1 FTTH services provider with over 6 million connected premises. Jio consumers have over five hours of average daily engagement on the set-top box," the company said.
Jio has conducted extensive 5G field trials across eight states, including testing a wide spectrum of equipment, including M-MIMO, Macro, Outdoor, and Indoor Small Cell.
"Peak user throughput achieved was over 1.5Gbps in these trials," the statement stated. Interoperability and interactivity with multiple users have also been verified.
During the reported quarter, Spectrum liability charged RIL with a net debt of 34,815 crore.
Srikanth Venkatachari, RIL''s Joint Chief Financial Officer during an earnings call, stated that performance on the digital side has been impressive, but that a decrease in net debt has been attributed to refinancing of high cost spectrum liabilities of Rs. 30,971 crore.
In January, Jio paid Rs. 30,971 crore of spectrum to the government.
Kiran Thomas, the CEO of Jio Platforms, said the company is building a 5G network to connect users, and the rollout of the services is expected to take place shortly.
Jio has become the leader in optical fibre-based broadband connection, and has added a twice the number of connections that the rest of the industry combined.
The Indian market is gearing up for the rollout of 5G services that will result in high-speed deliveries and inspire new-age offerings and business models.
Trai, a telecom regulator, has recommended a roughly 39% decrease in the reserve or floor price for the sale of radiowaves for mobile services, including the latest 5G offer, as it tries to match revenue expectations with the industry''s paying capacity.
Trai''s latest recommendations will set the precedent for spectrum auctions in 2022, allowing for private telecom operators to roll out 5G mobile services in 2022-23.
According to Telecom Minister Ashwini Vaishnaw, the government is planning a 5G spectrum auction in early June. The Department of Telecom is working as per the expected timeline, and the process is on to address industry concerns about spectrum pricing.