Reliance Jio Infocomm has reported a profit of Rs 681 crore for the second quarter ended September as compared to a loss Rs 271 crore in the year-ago period. The revenues for the second quarter stood at Rs 9,240 crore.
On a quarterly basis, profit rose 11.3% from Rs 612 crore in April-June, when operating revenue was Rs 8,109 crore.
About 37 million new customers were added during July-September this year, taking the company’s total customer base to 252.3 million. The average revenue per user (Arpu) fell to Rs 131.7 per subscriber per month during the quarter as compared to Rs 134.5 in the previous quarter.
But its impact was mitigated by growth volume of new customers.
Data consumption stood at 771 crore GB, with 11 GB usage per month per user. Average voice consumption stood at 761 minutes per user per month. Video consumption drove most of the usage, increasing to 410 crore hours per month on the network and average video consumption of 17.5 hours per subscriber per month.
“We are glad with our progress towards our mission with more than 250 million subscribers on our network within 25 months of commencement of services,” RIL chairman Mukesh Ambani said.
And after telecom, parent firm Reliance Industries Ltd has set eyes on the broadband space. To bolster fibre rollout under Reliance Jio, the company announced it will buy majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for around Rs 5,230 crore.
The company has already announced the launch of Reliance Jio’s broadband service Jio GigaFiber.
The strategic investment in Den and Hathway will enable the company to bring 27,000 local cable operators under it.
The company said it has received a good response for its FTTH (fibre to the home) service across 1,100 cities in the early phase of registrations.
The company said it will make a primary investment of Rs 2,045 crore through a preferential issue under Securities and Exchange Board of India’s regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66% stake in DEN.
Another primary investment of Rs 2,940 crore through a preferential issue for a 51.34% stake in Hathway will also be done.
RIL would also make open offers to minority shareholders of GTPL Hathway Ltd, a company jointly controlled by Hathway with 37.3% stake, and Hathway Bhawani Cabletel and Datacomm Ltd, a subsidiary of Hathway, according to a company statement.
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