Business / Finance

Q4 2018 posts increased profits for Reliance JIO

The financial year ending has been positive for the Mukesh Ambani led telecom operator a profit of Rs. 510.44 crores more than the preceding year and had a net profit of Rs. 722.96 crores in financial year of 2017-18.  During this quarter the subscriber base increased to 26.5 million and a total of 186.6 million till 31st March, 2018 with the average revenue per person standing at Rs. 137.1, with 507 crore GB of wireless traffic during Q4 and an average of 9.7 GB of data usage per subscriber and with this Jio has become the world’s biggest data network.

Since the launch of Jio the internet consumption has increased three times with cheap data offers pushing the digital content to the mainstream. Apart from this JioPhones have also been rated to be the best feature phones in the Indian market.

The Telecom Regulatory Authority (TRAI) had decreased the tariff rates for mobile termination charges both for domestic and international calls.

These results prove the competitive marketing strategies of Reliance Telecommunications and their capacity to provide the best services to the customers and their partners. As a result the net profit grew by 1.2 percent in the fourth quarter due to the quality of services offered and customers preferring it over other telecom operators and subsequently the balance sheet increased to a staggering Rs. 2.4 trillion rising by 11 percent.

During this period the telecom operator declared that it will join hands with Saavn, which owns rights to 30 million songs to promote its music platform app JioMusic. It added 95 lakh customers in March, 2018 while the average voice consumption was 716 minutes per month.

Apart from the telecom arm of Reliance the retail industries too reported a three time increase in profit in the fourth quarter in 2018.

While its rival competitors Airtel saw huge drop of 78% in net profit with the average revenue per subscriber decreasing to Rs. 116 from Rs. 123 in the December quarter which was standing at Rs. 158 one year ago. This indicates the large market share Reliance Jio is enjoying at the moment and experts opine that this should continue in the coming months as well.

Reliance Industries in other sectors too saw rising profits in Q4 and it is believed that it might soon be part of the $100 Billion Dollar club with the petro-chemical and retails arms of the gigantic conglomerate earning record net profits in this quarter of 2018.

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