Reliance Jio continues to increase margins as ARPU slides

The Indian giant Reliance announced its first quarter results, with its digital services and telecommunications business, Reliance Jio, bringing in 331 million subscribers by June 30.

Jio recorded a business turnover of 14,910 crore income ($ 2.17 billion), its earnings before interest and taxes (EBIT) amounted to 3,080 crore and its EBIT margin now stands just under 21%.

The average monthly business turnover per user for the first quarter was 122 ₹ (1.77 USD).

Compared to the previous two quarters, Jio was able to increase its margin while its ARPU had declined. In the third quarter of 2018, the telephone company reported an ARPU of ₹ 130, and in early 2018 it had an ARPU of ₹ 154.

During the quarter, the telecommunications company added a total of 24.5 million customers out of 33.8 million gross new customers, with a termination rate of 0.97%.

The average June 30 data usage was 11.4 GB and, overall, customers used 10 exabytes on their network during the quarter.

The company said its JioGigaFiber service was being rolled out in 1,600 cities and that the beta trials were in the final stages.

An April Openignal report ranked Jio as the best carrier for availability in India.

"Jio continues to amaze, increasing its 4G availability to 97.5% – the highest national score we have ever seen, but Airtel has seen the strongest growth in this category as its average score has jumped more by 10 percentage points, "said OpenSignal in its report.

"Jio's rivals have not been complacent, we have seen impressive growth in all of our indicators, with Ateltel's download speed being particularly interesting, and we expect this growth to continue in the near future. as the Indian mobile market evolves. "

OpenSignal also noted that the merger of Vodafone and Idea would create further competition for Jio.

At the same time, a report from Tutela revealed that the best Indian network providers differ from city to city, with Airtel being the best in Hyderabad, Mumbai, New Delhi, Ahmedabad, Surat and Pune; while Jio was better at Kolkata and Jaipur; Vodafone in Bengaluru; and idea in Chennai.

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