- 15 Oct 2024
- ICICI Securities
RELIANCE JIO – TARIFF HIKE FLOW THROUGH BOOSTS ARPU
News: The ARPU was up 7.4% QoQ at ₹ 195.1, led by the partial flowthrough of the ARPU hike (13-25% hike taken from July). The SIM consolidation led churn post tariff hike was seen as the company lost 10.9 million (mn) subs during the quarter. The subscriber base stood at 478.8 million. The revenues and EBITDA stood at ₹ 28338 crore / ₹ 15036 crore, up by 7% and 8% QoQ, respectively. The margins stood at 53.1%, up 49 bps QoQ. The PAT at ₹ 6231 crore, was up 22% QoQ. JiO Platforms reported a topline of ₹ 31709 crore, up 7.7% QoQ. EBITDA Margins at 50.2%, was up 50 bps QoQ.
Views: The key positive is 5G adoption is progressing well with 148 mn (vs. 130 mn in Q1) subscribers (~31% of the overall base) already migrated and 34% 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 1.8 mn subscriber in the quarter (vs. 1.2 mn in Q1) through acceleration of JioFiber. It is targeting 1 mn million subscriber addition per month vs. current run rate of 0.6 mn in the JioFiber. Going ahead, we expect further flowthrough of tariff hike in next 2 quarters, while SIM consolidation led churn ahead would be key monitorable.
Impact: Positive