RJio Q4 Results: 5 key takeaways from Reliance Jio revenue details

RJio Q4 Results: Witnessing a steady subscriber growth with net addition of  26.6 million during the quarter ended 31st March 2019, Reliance Jio's standalone revenue from operations is at Rs 11,106 crore, with 7.0% QoQ growth, while its standalone net profit stands at Rs 840 crore, according to the company statement released today. 

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “We at Jio are truly overwhelmed and proud to now serve over 300 million subscribers. Growth in data and voice traffic at this scale has been unparalleled. Jio’s network is one of the largest mobile data networks in the world carrying over 3 Exabytes of data every month at unmatched download speeds. Jio 4G LTE network would soon cover every district, taluk, gram panchayat and village of India with targeted population coverage of 99%. Our constant endeavour is to offer gold standard digital experience to all our users across the country."

"After successful execution of mobility business, Jio is now focused on catapulting India’s underserved Home & Enterprise connectivity market to global standards with its next generation FTTX services. Jio mobility services along with Gigafiber fixed-broadband services and associated technology platforms have been designed to transform India with the power of Digital Revolution and reinvent Reliance as a Technology Platform Company,” he added.

1. Customer Engagement

▪ Subscriber growth has remained steady with net addition during the quarter of 26.6 million
▪ Gross adds at 33.2 million inched up after modest disruption in previous quarter due to transition to the new KYC process. Monthly churn rate stayed much below industry average at 0.75% per month
▪ Customer engagement was healthy with average data consumption per user per month of 10.9 GB and average voice consumption of 823 minutes per user per month
▪ Video consumption drove most of the usage, increasing to over 500 crore hours per month
▪ JioPhone Monsoon Hungama offer (by Reliance Retail) with enriched app store has continued to drive first time data users to Jio network

2. Best-in-class Network

▪ Jio is committed to achieve all-IP 4G LTE network population coverage of 99% shortly
▪ Jio continues to build data capacity in line with increasing demand, and is the only network to deploy tri-band (850MHz/ 1800MHz/ 2300MHz) 4G across all its network sites
▪ World’s largest VOLTE network witnessed ~95% YoY growth in daily voice traffic, with bestin-class network experience (lowest call drop rate at 0.1%)
▪ Ranked fastest network over last 25 months consecutively by TRAI’s MySpeed Analytics app (average download speed of 20.9 Mbps during February 2019, as per TRAI)

3. Transfer of Fibre & Tower Undertakings to SPVs 

▪ Transfer of RJIL fibre and tower undertaking to separate companies, through NCLT approved Composite Scheme of Arrangement, was completed with effect from 31st March 2019
▪ RJIL has entered into long-term usage agreements as anchor tenant for these assets
▪ SEBI registered Infrastructure Investment Trusts (Digital Fibre Infrastructure Trust and Tower Infrastructure Trust) under the SEBI (Infrastructure Investment Trusts) Regulations, 2014, have acquired 51% equity stake in these two entities, respectively
▪ This transaction has led to deleveraging of RJIL balance sheet; future capex on passive infrastructure assets would be undertaken by the two entities
▪ Liabilities reduction of ~₹ 107,000 crore from RJIL

4. FTTH and Enterprise Services

▪ JioGigaFiber services for Home broadband, Entertainment, Smart Home Solutions, Wireline and Enterprise being rolled out across 1,600 cities
▪ Post completion of the acquisitions of Den Networks Limited and Hathway Cable and Datacom Limited (now majority owned by RIL Group after the open offer process completed in Q4 FY2018-19), the go-to-market strategy is being optimised with successful test results from beta trials across the country 

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5. Largest Distribution and Service Network

▪ Pan-India distribution channel with over 1 million retailers for customer acquisition and selling prepaid recharges
▪ Efficient sales channel with simplified tariff structure continues to deliver with monthly gross
subscriber additions at more than ~11 million during the quarter