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Subscriber base of RIL's Digital Services Business at 355.2 million as of Sep 30, 2019

Posted On: 2019-10-20 09:53:35


Results Summary

- Standalone revenue from operations of Rs. 12,354 crore
- Standalone EBITDA of Rs. 5,166 crore and EBITDA margin of 41.8%
- Standalone Net Profit of Rs. 990 crore
- Subscriber base as on 30th September 2019 of 355.2 million (40.8% YoY growth)
- Lowest churn in the industry at 0.74% per month
- ARPU during the quarter of Rs. 120 per subscriber per month
- Total wireless data traffic during the quarter of 1,202 crore GB (55.9% YoY growth)
- Total voice traffic during the quarter of 81,262 crore minutes (52.2% YoY growth)

RIL - Digital Services Business - Q2 FY 2019-20

Jio continues to be the Operator of Choice

- Strong subscriber growth with net addition of 24 million during the quarter and 103 million during the previous twelve months.

- Gross adds at 31.6 million stayed healthy with deeper 4G network presence and affordable tariffs continuing to attract first time mobile internet users to Jio digital services.

- Monthly churn rate reduced sequentially and continued below industry average at 0.74%.

- Customer engagement continues to surprise positively with average data consumption per user per month of 11.7 GB (11.4 GB per user per month in the previous quarter) and average voice consumption of 789 minutes per user per month.

- Jio management has remained focused on offering best value to its customers, and on driving customer engagement with best-in-class content bouquet, seamless network performance and affordable tariff plans.

- JioPhone Diwali 2019 plan (marketed by Reliance Retail) offering the device at Rs. 699 (without an exchange of old device) has witnessed a strong response in first few weeks. Jio is committed to ensure that no Indian is deprived of affordable Internet and fruits of the Digital Revolution.

Resilient network performance at a large scale

- Jio has witnessed more than 3x increase in voice and data traffic on its network, over the past two years. However, with >750K eNodeBs (across 800MHz/ 1800MHz/ 2300MHz bands) deployed on 4G-LTE, Jio continues to be by far the industry leader in terms of network capacity and performance (average download speed of 21.3 Mbps during August 2019, as per TRAI).

- World's largest VoLTE network continues to get bigger with ~52% YoY growth in daily voice traffic and is extending its lead over legacy 2G/3G voice networks in India.

- Besides higher capacity on account on larger deployment of spectrum on 4G technology, extensive fiber backhaul supports higher throughput and better customer experience.

- World class network design with real time data collection/aggregation, business workflow engines and predictive analytics/algorithms drives better planning, higher efficiency and lower costs.

Update on InvIT controlled Fibre and Tower SPVs

- Fiber and Tower undertakings were transferred to Jio Digital Fibre Private Limited ("JDFPL") and Reliance Jio Infratel Private Limited ("RJIPL") respectively, effective 31-Mar-2019.

- JDFPL and RJIPL are operating as independent entities with transfer of control to the SEBI registered Infrastructure Investment Trusts.

- Transaction for subscription of units of Tower InvIT by Brookfield Infrastructure Partners L.P. and its affiliates is in final stages.

FTTH and Enterprise Services rolled out commercially during the quarter

- After successful beta trials of FTTH services, Jio announced rollout of Home and Enterprise services during 42nd AGM (Post-IPO) of Reliance Industries Limited on 12th August 2019.

- We have received strong interest across the 1,600+ cities where the services would be launched initially. The process of converting >0.5 million existing trial users to paid bundled plans is ongoing. We expect FTTH and Enterprise services to be key growth and margin tailwind over the medium term.

Largest Distribution and Service Network

- Pan-India distribution channel with over 1 million retailers for customer acquisition and selling recharges.

- Efficient sales channel with best value offering continues to deliver with monthly gross subscriber additions at more than 10 million during the quarter.

- MyJio is the best-in-class full service (prepaid and post-paid payments, loyalty coupons, troubleshooting, addition or deletion of services) self-care application.

Robust Financial Performance led by resilient business model

- Jio continues to deliver healthy financial performance primarily led by subscriber momentum and cost efficiencies.

- Quarterly operating revenue increased 33.7% Y-o-Y to Rs. 12,354 crore.

- Operational efficiency is reflected in industry leading EBITDA margin of 41.8% (up 315bps Y-o-Y) which has driven EBITDA to Rs. 5,166 crore during the quarter.

- Jio has built a next generation all-IP data network with latest 4G LTE technology. It is the only network built as a Mobile Video Network and for providing Voice over LTE technology. It has built a future ready network with extensive fiber rollout across the country which can easily deploy 5G and beyond technology in the last leg. Jio has created an eco-system comprising network, devices, applications and content, service experience and affordable tariffs for everyone to live the Jio Digital Life.

- Jio has created a strong data network with infrastructure and backhaul for offering wireless services, wireline services, FTTH, Enterprise offering, IoT services and other digital services. These will lead to sustained growth in data consumption on the network.

- Jio is now the second largest single-country operator globally with its subscriber base increasing to 355.2 million as of 30-September-2019. Net subscriber addition for the Company during the past twelve months was 103 million. Jio has become a service provider of choice across customer strata and seen unprecedented growth to market leadership (in terms of Adjusted Gross Revenue and Subscriber base as published by TRAI).

- Customer engagement for Jio services continues to be strong with average data consumption at 11.7 GB per user per month, average voice consumption at 789 minutes per user per month. Affordable tariffs, wide network presence, and improving use cases on the Jio digital platform have been key drivers of industry leading engagement levels.

- JioGigaFiber services for Homes and Enterprise has been launched across 1,600 cities. Beta trials of JioGigaFiber services across more than 0.5 million homes were very successful with monthly data usage in excess of 100 GBs. Jio is in the process of converting the trial users to paid connections and ramping up its sales engine to connect 20 million homes and 15 million enterprises. Jio is focused on catalysing the underserved fixed broadband market in India with its next generation FTTX services.

- Jio's end-to-end all IP network has been consistently rated as the fastest network in India by TRAI's MySpeed application over the last 31 months with an average download speed of 21.3 Mbps during August 2019. Jio has also been consistently rated to have the widest LTE coverage in the country.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1415.3 as compared to the previous close of Rs. 1396.15. The total number of shares traded during the day was 629451 in over 20580 trades.

The stock hit an intraday high of Rs. 1428 and intraday low of 1399.7. The net turnover during the day was Rs. 891730305.


Source: Equity Bulls

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