- 17 Jan 2025
- ICICI Securities
RELIANCE JIO– TARIFF HIKE FLOW THROUGH, JIOAIRFIBER ADDITION BOOSTS ARPU
News: The ARPU was up 4.2% QoQ at ₹ 203.3, led by the residual flowthrough of the ARPU hike (13-25% hike taken from July) as well as 2 mn of broadband subscriber addition driven by JioAirFiber. The SIM consolidation led churn post tariff hike normalised as the company added 3.3 million (mn) subs vs. loss of 10.9 mn subs in Q2. The subscriber base stood at 482.1 million. The revenues and EBITDA stood at ₹ 29307 crore / ₹ 15478 crore, up by 3.4% and 2.9% QoQ, respectively. The margins stood at 52.8%, down 25 bps QoQ. The PAT at ₹ 6477 crore, was up 3.9% QoQ. Jio Platforms reported a topline of ₹ 33074 crore, up 4.3% QoQ. EBITDA Margins at 49.5%, down 10 bps QoQ.
Views: The key positive is 5G adoption is progressing well with 170mn (vs. 148 mn in Q2) subscribers (~35% of the overall base) already migrated and 40% of the overall data being consumed on 5G. The company continues to see 5G as medium to long term enabler of higher data usage and APRU driver along with its effort on home broadband wherein it added 2 mn subscriber in the quarter (vs. 1.8 mn in Q2) through acceleration of JioAirFiber. Total fixed subscriber base stood at ~17 million including ~4.5 million from JioAirFiber. Going ahead, we expect residual flowthrough of tariff hike in Q4, while any development on IPO timing as well as valuations to be a key monitorable.
Impact: Positive