NEW DELHI: Asian billionaire Mukesh D Ambani’s telecom business Reliance Jio Infocomm Friday reported its consecutive eighth profitable quarter but average revenue per user sees a downward trend.
Jio has posted a profit of Rs 990 crore in the quarter ended September, up from Rs 681 crore a year ago, against market estimates of more than Rs 1,000 crore with the company’s profit rose 11% from the preceding quarter.
The Mumbai-based telco attributed growing data uptake and new subscribers addition, for its growth.
Jio’s profit rose more than 45% from a year ago but average revenue per user (ARPU) was down for the seventh successive quarter to Rs 120 from Rs 122.
“That’s okay (falling ARPU), but more customers are coming,” Jio strategy head Anshuman Thakur told reporters on Friday.
“We are much more focused on creating the digital ecosystem– getting more and more customers onto the network and ensuring that they consume more data,” Thakur added.
Jio’s executive also said that the company’s recent move to charge for voice calls to rival networks was not a tariff action but a recovery of cost which it pays to Vodafone Idea and Bharti Airtel as interconnect usage charges (IUC).
However, the telco had earlier said that voice calls would be free for its subscribers for a lifetime.
The Ambani’s telecom company had launched commercial mobile services in September 2016 in a disruptive foray that has led a change in market dynamics with sector consolidated to a four-player market now.
“Jio continues to be by far the industry leader in terms of network capacity and performance,” it said in a statement.
The Reliance Industries’ telecom vertical has recently launched JioPhone Diwali 2019 plan, being marketed by sister firm Reliance Retail, offering the device at Rs 699.
Jio added that it has seen a strong response to its JioPhone offering in the first few weeks.