Despite an already crowded and highly competitive telecom market, billionaire Mukesh Ambani-led Reliance Jio Infocomm Ltd has managed to get more than 13.86 crore subscribers. Reliance Jio changed the market dynamics as it started off with free data and free voice calls to draw users, and soon forced incumbent telecos Airtel and Vodafone to reduce data prices too.
Months after the company started commercial operations, Mukesh Ambani has now disclosed its earnings.
As per a BloombergQuint report, for the July-September 2017 quarter, the company has reported higher than expected revenue based on subscription recharges and lower than expected operational cost.
The rise was due to “recharges, prime membership revenue and subscription recharges done in April, accounted for in July.”
For the said quarter, the company reported a net revenue of Rs.6,147 crore. It was because subscribers who availed free services like ‘Summer Surprise’ and ‘Dhan Dhana Dhan’ for the first three months starting April were charged in July.
Reliance Jio also made a Rs.260 crore ($40 million) profit before interest and taxes.
What’s surprising was that it reported a net loss of Rs.271 crore.
Market analysts expect Jio to add another 42 million customers in the second half of FY18, which will take its overall subscriber base to 20.5 crore users by March 2019.
IIFL has analysed TRAI’s data and said that Jio is on track to overtake Vodafone India to become India’s second-biggest operator in terms of subscribers in urban areas.