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Tag: Mukesh Dhirubhai Ambani

  • Airtel mobile & DTH subs up, Jio-hit data customers & rev drop

    BENGALURU: Saying that Bharti Airtel Limited (Airtel), once touted as the largest cellular operator in the country both in terms of revenue as well as subscriber numbers, has had a tough battle with Mukesh Dhirubhai Ambani’s Reliance Jio Infocomm would be making an understatement. Ambani’s largest startup in the world ever has given a run for the money to all its telecom and internet services provider peers in the country.

    As on 31 March 2017 (Q4-17, FY-17 – quarter and year ended 31 March 2017), the company had 273.6 million (27.36 crore) GSM customers in India as compared to 251.2 million (25.12 crore) in previous year, an increase of 8.9 percent. DTH subscribers for Airtel’s Digital TV Services segment (Airtel DTH) increased 9.3 percent to 12.815 million (1.2815 crore) at the end of the FY-17 from 11.725 million (1.1725 crore) at the end of FY-16. The company had 57.4 million (5.74 crore) data customers (21.0 percent of total customers) as on March 31, 2017, representing a decline of 1.5 percent as compared to 58.2 million (5.82 crore) (23.2 percent of total customers) at the end of the previous year.

    The total MBs on the network for the full year FY-17 increased by 47.3 percent to 733.1 billion (733,100 crore) MBs as compared to 497.7 billion (497,700 crore) MBs in the previous year. Mobile Data usage per customer for the full year FY-17 witnessed an increase of 31.0 percent to 1,049 MBs per month as compared to 801 MBs in the previous year. Data ARPU decreased by 4.5 percent to Rs 185 during Fy-17 from Rs 194 in the previous year.

    Revenue from operations (operating revenue) declined 12.1 percent year-on-year (y-o-y) to Rs 2,193.46 crore in Q4-17 from Rs 2,495.96 crore in the corresponding year ago quarter. FY-17 operating revenue declined 1.1 percent to Rs 95,468.3 crore from Rs 96532.1 crore in the previous year. PAT for Q4-17 declined 69.2 percent to Rs 470.6 percent (2.1 percent of operating revenue) from Rs 1,462 crore (5.7 percent of operating revenue) in Q4-16. PAT for FY-17 declined 38.5 percent to Rs 4,241.4 crore (4.4 percent of operating revenue) from Rs 6,893 crore (7.1 percent of operating revenue).

    In its earnings statement, Airtel’s MD and CEO, India & South Asia Gopal Vittal said, “The sustained predatory pricing by the new operator has led to a decline in revenue growth for the second quarter in a row. The telecom industry as a whole also witnessed a revenue decline for the first time ever on a full year basis. The deteriorating health of the industry was compounded by the tsunami of incoming voice traffic from the new operator as a result of which significant investments had to be made just to carry the incoming traffic on our network. The net result of this was a revenue decline of 7.1 percent in Q4 even as EBITDA margins eroded by 2.9 percent. FY-17 saw a muted top line growth of 3.6 percent vs the double digit growth witnessed in preceding years.

    Our long term commitment to provide the best experience to our customers continues to drive all our actions in every single aspect of the business. This belief coupled with brilliant execution of our people has led to acceleration in market share in an industry that is now rapidly consolidating,” he added.

    Airtel’s DTH segment reported 10.4 percent y-o-y growth in operating revenue to Rs 865.7 crore in Q4-17 from Rs 784 crore in the corresponding year ago quarter. Earnings before interest and taxes (EBIT) in Q4-17 increased 35.4 percent to Rs 97.5 crore from Rs 72 crore in Q4-16. The DTH segment’s revenue for fiscal 2017 increased 17.6 percent to Rs 3,430.6 crore as compared to Rs 2,917.8 crore in FY-16. Average revenue per customer (ARPU) in FY-17 increased to Rs 231 from Rs 226 in the previous year.

    The company’s capex in its DTH segment in FY-17 declined to less than half (declined by 52.9 percent) to Rs 138.6 crore as compared to Rs 294.3 crore in FY-16. Cumulative investments in the DTH segment at the end of FY-17 reached Rs 7,351.3 crore.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:

    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.

    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion…

  • Reliance Jio capex at Rs 18k cr in Q1-18, Retail’s solid performance in FY-17

    BENGALURU: The Mukesh Dhirubhai Ambani headed Reliance Industries Limited (RIL) reported its financial performance for the quarter / year ended 31 March 2017 (Q4-17/FY-17, current quarter/current year). RIL’s digital venture Reliance Jio Infocomm Limited (Jio) has been touted as the largest startup in the world with investments announced to the tune of Rs 1,50,000 crore. The company plans capex at Rs 18,000 crore for Q1-18. The company says that capex investments will drop sharply from Q2-18 onward. This is indeed a huge sum, when one considers the fact that its nearest peer and the largest telecom operator in terms of subscriber base until Jio overtook it, Bharti Airtel Limited (Airtel), had capex of Rs 20,591.9 crore during the entire financial year 2016. It may be noted that Airtel has operations in other geographies besides India, and the capex number mentioned above includes those countries also. RIL claims that Jio contributes to more than 80 percent of data consumption in India.

    Further, RIL plans capex of Rs 2,500 crore for fiscal 2018 for its organized retail segment – Reliance Retail Limited (Retail segment) that had a phenomenal performance during FY-17. Reliance Retail reported revenue of Rs 33,765 crore for fiscal 2017, 60.2 percent more than the Rs 21,075 crore reported in the previous year. Quarter-on-quarter (q-o-q), the segment’s revenue in Q4-17 at Rs 10,332 crore was 18.9 percent more than the Rs 8,688 crore in Q3-17 and year-on-year (y-o-y) it was 83 percent more than the Rs 5,646 crore in Q4-16.

    The Retail segment’s EBIT in FY-17 at Rs 784 crore (2.3 percent EBIT margin) was 55.6 percent more than the Rs 504 crore (2.4 percent EBIT margin) in the previous year. Q4-17 EBIT at Rs 243 crore (2.4 percent EBIT margin) was 5.2 percent more that Rs 231 crore (2.7 percent EBIT margin) and 89.8 percent more y-o-y than Rs 128 crore (2.3 percent EBIT margin).

    The Retail segment’s Business PBIT in FY-17 at Rs 1,203 crore was 40.4 percent more than the Rs 857 crore in FY-16. Business PBIT in Q4-17 at Rs 366 crore was 9.9 percent more q-o-q than Rs 333 crore and 65.6 percent more y-o-y than Rs 221 crore.

    RIL’s Revenue (turnover) increased by 12.3 percent in FY-17 to Rs 3,30,180 crore from Rs 2,93,298 crore in FY-16. The company’s revenue increased 10.3 percent q-o-q to Rs 92,889 crore in Q4-17 as compared to Rs 84,189 crore and increased 45.2 percent y-o-y from Rs 63,954 crore.

    Overall RIL reported record annual consolidated net profit of Rs 29,901 crore in FY-17, up 18.8 percent as compared to the Rs 25,171 crore in FY-16. Consolidated net profit for Q4-17 at Rs 8,046 crore was 6.8 percent higher q-o-q as compared to Rs 7,533 crore and was 12.3 percent higher y-o-y than the Rs 7,167 crore.

    Note: The unit of currency in this report is the Indian rupee – Rs (also conventionally represented by INR). The Indian numbering system or the Vedic numbering system has been used to denote money values. The basic conversion to the international norm would be:
    (a) 100,00,000 = 100 lakh = 10,000,000 = 10 million = 1 crore.
    (b) 10,000 lakh = 100 crore = 1 arab = 1 billion.

  • TRAI data: Mobile b’band subs get over DeMon in December 2016

    MUMBAI: This is good good news for the those in the OTT/SVOD/App ecosystem. According to the latest telecom subscription up to 31 December 2016 released by the Telecom Regulatory Authoriy of India (TRAI), Indian consumers quickly got over the demonetisation hiccup – at least as far as subscribing to mobile broadband, and dongles are concerned.

    Growth at 8.89 per cent has come back in the December month with the total number of mobile broadband subscribers rising to 217.36 million from 199.61 million subs earlier.

    This increase has come about primarily due to Reliance Jio’s relentless drive to build a user base: it had 72.16 million mobile broadband users, whereas Bharti Airtel (43.56 million), Vodafone (35.02 million), Idea Cellular (27.04 million), and BSNL (20.36 million) followed.

    Prime minister Narendra Modi announced the scrapping of Rs 500 and Rs 1,000 notes on 8 November 2016. In that month, the number of users of broadband via mobile and dongles fell by 0.14 per cent from 199.91 million to 199.61 million. Probably, their woes in depositing the old notes and getting cash for themselves kept them preoccupied.

    In the months prior to that (October and September) subscription growth for wireless broadband and dongles was running at double digits at 14.97 per cent to 199.91 million and 13.31 per cent to 173.87 million.

    Reliance Jio accounted for 52.23 million (November), 35.94 million (October), and 16 million subs (September). Bharti Airtel’s figures for the same period were 41.90 million, 46.22 million, and 44.25 million respectively. Whereas the numbers for the respective period for Vodafone were (34.87 million) (40.19 million) and (35.93 million) and for Idea Cellular were (28.40 million) (29.76 million) (30.72 million).

    We will have to wait and watch whether the media blitzkrieg and broadband offers by Idea and Bharti Airtel which commenced a month or so ago will help slow down the uptake of Reliance Jio and swing subscribers back towards them. For Reliance Jio, of course the challenge remains how to convert the large number of free subscribers it has signed on into paying ones.

    As of a month or so ago, it had limited the daily bandwidth consumption to 1 GB at 4G speeds, following which data speeds drop. But users don’t seem to be complaining as they are quite hopeful that the free offer will continue courtesy the largesse of Mukesh Dhirubhai Ambani beyond 31 March 2017.

  • Scale meets technology at Reliance Jio’s massive employee launch

    Scale meets technology at Reliance Jio’s massive employee launch

    MUMBAI: Reliance Jio’s launch for its employees is set to create history in corporate India, as for the first time an employee launch will see as many as 35,000 people attending the event at the venue. 

    The event will be beamed live on the Jio network across 1000+ locations – one of them being in Dallas, US – where another 80,000 – 90,000 Reliance Industries Ltd’s (RIL) employees and their immediate kin will be watching.

    The locations will be connected to the event venue at Reliance Corporate Park (RCP) via Jio’s high-speed network, which will enable two-way video interaction between employees outside Mumbai and RIL chairman Mukesh Dhirubhai Ambani. 

    “The conglomerate will provide high-speed Jionet Wi-Fi free to 35,000 spectators at the venue in RCP,” the company said. The venue, with its huge futuristic stage to match the digital spirit of Jio and spaced out stands for spectators’ viewing comfort, has been built from scratch in seven days flat, with thousands of men, and heavy duty machines like earthmovers and cranes, working in shifts round the clock. Gigantic LED screenshave been set at strategic locations at the event venue.

    Digital invitations have been sent out to every RIL employee. The link on the digital invite leads employees to an exclusive portal managed by BookMyShow (BMS). Once employees registers themselves and their immediate family on the portal, the portal allocates tickets for the employees and their families.

    “Seat allocation happens automatically (no choice of option), and QMS codes are generated to facilitate electronic allocation. Seats are colour-coded and numbered. Car parking too is allotted by the same portal, with separate spaces for chauffeur-driven and self-driven cars” an executive taking care of the production informed Indiantelevision.com.

    The mega launch of Reliance Jio will no doubt be watched with bated breath by all and sundry.