ITV

Tag: Reliance Industries Limited

  • Den reports lower numbers for third quarter

    Den reports lower numbers for third quarter

    BENGALURU: Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 6 per cent drop in consolidated operating revenue numbers for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y, Q3 2018).

    Den Network’s operating profit (EBITDA) declined 39 per cent y-o-y during the period under review to Rs 48.10 crore (15.6 percent of operating revenue) from Rs 78.83 crore (24 per cent of operating revenue) in Q3 2018.

    Den reported a net loss of Rs 31.21 crore in Q3 2019 as compared to a profit after tax of Rs 1.73 crore in Q3 2018.The company reported total comprehensive loss (TCL) of Rs 31.06 crore as compared to total comprehensive income of Rs 1.31 crore in Q3 2018.

    Segment numbers

    Den has two segments – cable distribution networks (Cable) and broadband. Both segments reported lower y-o-y revenues and operating loss for the quarter under review.

    Cable segment revenue reduced 6.1 per cent y-o-y in Q3 2019 to Rs 291.59 crore from Rs 310.50 crore in Q3 2018. Den reported that the segment had an operating loss of Rs 8.95 crore as compared to an operating profit of Rs 25.20 crore in Q3 2018.

    Den Networks reported 5.1 per cent y-o-y decline in operating revenue for its broadband segment in Q3 2019 at Rs 16.82 crore as compared to Rs 17.72 crore in Q2 2018. The segment’s operating loss reduced to Rs 6.60 crore in Q3 2019 from an operating loss of Rs 7.29 crore.

    Let us look at the numbers reported by Den Networks for Q1 2019

    Den Networks consolidated revenue from operations in Q3 2019 was Rs 308.41 crore, 6 per cent lower than the Rs 328.22 crore in Q3 2018. Consolidated total revenue including consolidated other income declined 6.4 per cent y-o-y in Q3 2019 to Rs 313.32 crore from Rs 334.92 crore in Q3 2018.

    Consolidated total expenditure for the quarter under review increased 3.9 per cent y-o-y in Q3 2019 to Rs 337.84 crore (109.5 percent of operating revenue) from Rs 325.20 crore (99.1 per cent of operating revenue) in the corresponding quarter of the previous year.

    Consolidated content cost increased 10.5 per cent y-o-y in Q3 2019 to Rs 148.65 crore (48.2 per cent of operating revenue) as compared to Rs 134.56 crore (41 per cent of operating revenue) in Q3 2018. Consolidated placement fees reduced 9.3 per cent y-o-y in Q3 2019 to Rs 9.99 crore (3.2 per cent of operating revenue) from Rs 12.48 crore (3.4 per cent of operating revenue) in Q3 2018.

    Den Networks consolidated employee benefits expense during the period under review declined 7.5 per cent y-o-y to Rs 23.80 crore (7.7 per cent of operating revenue) from Rs 25.73 crore (7.8 per cent of operating revenue) in Q3 2018. Consolidated other expenses in Q3 2019 increased 1.6 per cent y-o-y to Rs 77.87 crore (25.2 per cent of operating revenue) in Q3 2019 from Rs 76.62 crore (23.3 per cent of operating revenue) in the corresponding quarter of the previous year.

    Company speak

    Den CEO SN Sharma said, “Cable subscription ARPU is consistent with respect to the previous quarter which stood at Rs 96 per box (including tax).

    "TRAI tariff order implementation, a potential gamechanger in the cable industry, is underway wherein we have taken host of initiatives and strengthened our internal processes including IT systems. In order to migrate to the new tariff order, consumer has various options to exercise his choice of channels through our consumer / LCO mobile applications and web portal.

    "Extensive LCO/distributor awareness programme are under progress wherein the partners are explained in clear terms the benefits they would get in the overall value chain. Prepaid system for cable subscription partners, the most preferred billingoption under the new tariff order, has been successfully rolled out during the quarter in select markets.”  

    Strategic investments in Den by Reliance Industries

    On 17 October 2018, the Mukesh Ambani led Reliance Industries Ltd reported to the bourses that it has decided to make strategic investments thought a primary investment of Rs 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 percent stake in Den. Reliance also said that it would make a primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 per cent stake in Hathway Cable and Datacom Ltd (Hathway) of the Rajan Raheja group.

  • Den reports improved numbers for Q2 over Q1

    Den reports improved numbers for Q2 over Q1

    BENGALURU: The Sameer Manchanda-led Indian cable distribution network and broadband internet services (broadband) provider Den Networks Ltd reported 5.3 percent drop in consolidated operating revenue numbers for the quarter ended 30 September 2018 (Q2 2019, quarter or period under review) as compared to the corresponding year ago quarter (y-o-y, Q2 2018). Though revenue based on a quarter on quarter (q-o-q) basis and some other numbers were lower, the company’s operating profit or EBITDA in Q2 2019 was better than Q1 2019. The company said in Q1 2019 that it had tried to cut down costs, and it has managed to do that, but its consolidated content costs during the quarter under review increased by almost Rs 16 crore y-o-y, at but the same time have declined by almost Rs 2 crore q-o-q.
    Den Network’s operating profit (EBITDA) declined 37.9 percent y-o-y during the period under review to Rs 50.63 crore (16.1 percent of operating revenue) from Rs 81.55 crore (26 percent of operating revenue) but increased 9.9 percent q-o-q from Rs 57.84 crore (18 percent of operating revenue) as mentioned above.

    The company’s losses – after taxes (net loss) as well as total comprehensive loss (TCL) have increased y-o-y as well as q-o-q in the period under review. The company reported a net loss of Rs 28.54 crore during Q2 2019 and a loss of Rs 27.98 crore for Q1 2019 as compared to a net profit (PAT) of Rs 1.11 crore in Q2 2018. Den reported TCL of Rs 28.34 crore for Q2 2019, TCL of Rs 27.75 crore in Q1 2019 as compared to total comprehensive income of Rs 1.31 crore in Q2 2018.

    Segment numbers

    Den has two segments – cable distribution networks (Cable) and broadband. Both segments reported lower y-o-y revenues, but in the case of broadband, Den reported a slight q-o-q increase in revenue for Q2 2019.

    Cable segment revenue reduced 4.6 percent y-o-y in Q2 2019 to Rs 293.86 crore from Rs 307.99 crore in Q2 2018 and reduced 1.6 percent q-o-q from Rs 298.59 crore in Q1 2019. Den reported that the segment had an operating loss of Rs 5.82 crore as compared to an operating profit of Rs 27.75 crore in Q2 2018 but the loss in the quarter under review was lower than the operating loss Rs 8.26 crore in Q1 2019.

    Den Networks reported 16.6 percent y-o-y decline in operating revenue for its broadband segment in Q2 2019 at Rs 16.51 crore as compared to Rs 19.80 crore in Q2 2018 but 5.9 percent more than the operating revenue of Rs 15.59 crore in Q1 2019. The segment’s operating loss reduced slightly to Rs 6.16 crore in Q2 2019 from an operating loss of Rs 8 crore in Q1 2019 and an operating loss of Rs 8.93 crore in Q2 2018.

    Let us look at the numbers reported by Den Networks for Q1 2019

    Den Networks' consolidated revenue from operations in Q2 2019 was Rs 310.37 crore, Rs 314.18 crore in Q1 2019 and Rs 327.79 crore in Q2 2018. Consolidated total revenue including consolidated other income declined 5.9 percent y-o-y and 2.5 percent q-o-q in Q2 2019 at Rs 315.05 crore from Rs 334.90 crore in Q2 2018 and from Rs 322.98 crore in Q1 2019.

    Consolidated total expenditure for the quarter under review increased 11.9 percent y-o-y in Q2 2019 to Rs 336.78 crore (107.3 percent of operating revenue) from Rs 326.12 crore (103.8 percent of operating revenue) in the corresponding quarter of the previous year but declined 1.3 percent q-o-q from Rs 347.07 crore (110.59 percent of operating revenue).

    As mentioned above, the company has seen a y-o-y rise in content cost in actual value as well as in terms of percentage of operating revenue. Consolidated content cost increased 11.9 percent y-o-y in Q2 2019 to Rs 148.23 crore (47.2 percent of operating revenue) as compared to Rs 132.47 crore (42.2 percent of operating revenue) in Q2 2018 but declined 1.3 percent q-o-q from Rs 150.12 crore (47.8 percent of operating revenue). Consolidated placement fees increased 3 percent y-o-y in Q2 2019 to Rs 11.02 crore (3.5 percent of operating revenue) from Rs 10.70 crore (3.4 percent of operating revenue) and increased 9.7 percent q-o-q from Rs 10.05 crore (3.2 percent of operating revenue).

    Den Networks' consolidated employee benefits expense during the period under review declined 13.7 percent y-o-y to Rs 23.64 crore (7.5 percent of operating revenue) from Rs 27.38 crore (8.7 percent of operating revenue) in Q2 2018 but increased 0.8 percent q-o-q from Rs 23.45 crore (7.5 percent of operating revenue). Consolidated other expenses in Q2 2019 increased 1.3 percent y-o-y to Rs 76.65 crore (24.4 percent of operating revenue) in Q1 2019 from Rs 75.69 crore (24.1 percent of operating revenue) in the corresponding quarter of the previous year but reduced 8.9 percent q-o-q from Rs 84.16 crore (26.8 percent of operating revenue).

    Strategic investments in Den by Reliance Industries Ltd

    On 17 October 2018, the Mukesh Ambani-led Reliance Industries reported to the bourses that it has decided to make strategic investments thought a primary investment of Rs 2,045 crore through a preferential issue under SEBI regulations and secondary purchase of Rs 245 crore from the existing promoters for a 66 percent stake in Den. Reliance also said that it would make a primary investment of Rs 2,940 crore through a preferential issue under SEBI regulations for a 51.3 percent stake in Hathway Cable and Datacom Ltd (Hathway) of the Rajan Raheja group.

  • Jio and organised retail add to RIL’s growth in second quarter

    Jio and organised retail add to RIL’s growth in second quarter

    BENGALURU: Mukesh Dhirubhai Ambani’s largest startup in the world in the form of Reliance Jio Infocomm Ltd or Jio has only gone from strength to strength since its inception. The mobile and broadband subsidiary of Reliance Industries Ltd (RIL), which is already the largest mobile data carrier in the world with more than 25 crore subscribers, reported EBITDA growth of nearly 2.5 times for the quarter ended 30 September 2018 (Q2 2019, quarter under review) as compared to the corresponding year ago quarter. Jio’s operating revenue for Q2 2019 grew by a healthy 50.3 percent year-on- year (y-o-y).

    Some of the highlights of Jio’s performance in Q2 2019 include:

    Standalone revenue from operations for Q2 2019 was Rs 9,240 crore  with a 13.9 per cent q-o-q  growth as compared to Rs 8,109 crore in the previous quarter Q1 2019.

    Jio’s standalone EBITDA of Rs 3,573 crore for Q2 209 was 13.5 per cent higher q-o-q with EBITDA margin of 38.7 per cent as compared to Rs 3,147 crore and an EBITDA margin of 38.8 per cent in Q1 2019.

    Jio’s standalone Net Profit was Rs 681 crore.

    The company says that it closed Q2 2019 with a subscriber base  of 25.23 crore. Jio says in a press release that it had the lowest churn in the industry at 0.66 per cent per month. ARPU during the quarter was Rs 131.7 per subscriber per month.

    RIL’s organised retail arm’s revenue for Q2 FY19 grew by 121.5 per cent y-o-y to Rs 32,436 crore from Rs 14,646 crore. The segment’s EBIT rose by an unprecedented 272.5 per cent y-o-y to Rs 1,244 crore from Rs 334 crore.

    RIL chairman Amabani said in a press release, “Jio was conceived with a mission to connect everyone and everything, everywhere – always at the highest quality and the most affordable price. We, at Jio, are glad with our progress towards our mission with more than 250 million subscribers on our network within 25 months of commencement of services. We have enabled our customers to adopt the digital life, with record consumption of data and use of digital services. Our next generation FTTH and enterprise services are now being made available to our customers to further enhance our value proposition to our customers.”

    “We are making rapid progress on the growth of our digital platforms, across new commerce, media and entertainment, agriculture, education, healthcare and financial services, which will further enhance the quality of life and productivity of the people of India, ” added Ambani.

    In an RIL earnings release, Ambani said, “Our commitment to create consumer value is gathering momentum, with the robust scale-up of India- centric consumer facing businesses. The financial performance of both Retail and Jio reflect the benefits of scale, technology and operational efficiencies. Retail business EBITDA has grown three fold on y-o-y basis whereas Reliance Jio EBITDA has grown nearly 2.5 times. Jio has now crossed 250 million subscriber milestone and continues to be the largest mobile data carrier in the world.”

    RIL achieved revenue of Rs 156,291 crore ($ 21.6 billion), an increase of 54.5 per cent as compared to Rs 101,169 crore in the corresponding period of the previous year. RILs’ Profit after tax (PAT) was higher by 17.4 per cent at Rs 9,516 crore ($ 1.3 billion) as against Rs 8,109 crore in the corresponding period of the previous year. Operating profit before other income and depreciation increased by 35.6 per cent to Rs 21,108 crore ($ 2.9 billion) from Rs 15,565 crore in the corresponding period of the previous year.

  • Jio numbers up on larger subscriber base and higher usage of services

    Jio numbers up on larger subscriber base and higher usage of services

    BENGALURU: When Mukesh Dhirubhai Ambani’s biggest startup in the world Reliance Jio Infocomm Ltd (Jio) started operations it had startled the Indian telecom industry ecosystem in the country. Jio had reported a net profit of Rs 723 crore against operating revenue of Rs 20,154 crore and value of services of Rs 23,714 crore for fiscal 2018 (year ended 31 March 2018, FY 2018).

    For the first quarter ended 30 June 2018 (Q1 2018, quarter or period under review), the company’s operating revenue increased 14.6 per cent quarter-on-quarter (q-o-q) to Rs 9,653 crore from Rs 8,421 crore in the immediate trailing quarter Q4 2018. Net standalone profit for the quarter under review was Rs 612 crore.

    Jio’s EBIT increased 14.7 per cent q-o-q n Q1 2019 to Rs 1,715 crore as compared to Rs 1,495 crore in Q4 2018. EBITDA increased 16.8 per cent q-o-q during the period under review to Rs 3,147 crore.

    Jio says in its earnings media release that customer activity grew substantially in the quarter under review with average data consumption per user per month of 10.6 GB and average voice consumption of 744 minutes per user per month.  Also, video consumption drove most of the usage, increasing to 340 crore hours per month on the network; average video consumption of 15.4 hours per subscriber per month. For Q4 2018, the company had reported average data consumption per user per month of 9.7 GB and average voice consumption of 716 minutes per user per month. Also video consumption was at over 240 crore hours per month in the immediate trailing quarter.

    Jio added 28.7 subscribers Q1 2019 and hence its subscriber base increased to 215.3 million in Q1 2019 from 186.6 million in Q4 2018. Average revenue per user (ARPU) declined slightly q-o-q to Rs 135.50 per month in Q1 2019 from Rs 137.1 per month in Q4 2018. The company reported subscriber churn of 0.3 per cent per month in Q1 2019 as compared to a slightly lower 0.25 per cent per month in Q4 2018.

    Reliance Industries numbers for Q1 2019

    Reliance Industries Ltd (RIL) is the parent company of Jio. RIL consolidated revenue increased by 56.5 per cent to Rs 141,699 crore ($ 20.7 billion) in Q1 2019. Consolidated PBDIT increased by 52.8 per cent to Rs 22,449 crore ($ 3.3 billion). Consolidated Profit Before Tax increased by 30.3 per cent to Rs 13,726 crore ($ 2.0 billion).Consolidated Cash Profit increased by 41.2 per cent to Rs 15,892 crore ($ 2.3 billion). Consolidated Net Profit increased by 17.9 per cent to Rs 9,459 crore ($ 1.4 billion).

    Company speak

    Commenting on the results, Reliance Industries Ltd, the parent company of Jio, chairman and managing director Mukesh Ambani said: “We continue to focus on strong delivery through operational excellence in our portfolio of businesses. Financial results of Q1 2019 underscore the strength of the petrochemicals we have reinforced over the last investment cycle. Our petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins. Refining business performance remained steady despite the seasonal weakness in cracks. Continuing strength in global demand for oil products and implementation of more stringent environmental norms for marine fuels augurs well for our refining business. Our consumer businesses continue to scale new highs and now account for nearly 21 per cent of consolidated segment EBITDA. Retail business revenues have more than doubled and EBITDA has trebled on a y-o-y basis. Jio added a record number of subscribers, highlighting the compelling technology and value proposition that Jio offers vis-à-vis other networks. The scalability of our consumer business platforms is driving unprecedented value generation for our customers, our country and our shareholders.”

  • Jio reports maiden annual profit

    Jio reports maiden annual profit

    BENGALURU: Mukesh Dhirubhai Ambani’s biggest start-up in the world Reliance Jio Infocomm Ltd, or simply Jio, had started returning profits a couple of quarters ago. For the year ended 31 March 2018 (FY 2017-18, the year under review), this Reliance Industries Ltd (RIL) subsidiary reported profit of Rs 723 crore against operating revenue of Rs 20,154 crore and value of services of Rs 23,714 crore.

    Jio statement said that it has continued its strong subscriber growth trend with net addition during the quarter ended 31 March 2018 (Q4 2017-18) of 26.5 million (as against 21.5 million in the previous quarter) and a churn of 0.25 percent per month. Jio’s subscriber base as on 31 March 2018 was 186.6 million (18.66 crore). Average revenue per user (ARPU) during the quarter was Rs 137.1 per subscriber per month. A Jio earnings release said that Jio subscribers continue to demonstrate high activity levels with average data consumption per user per month of 9.7 GB and average voice consumption of 716 minutes per user per month. Also, video consumption is at over 240 crore hours per month on the network while Jio apps continue to be highly popular.

    Commenting on the results, RIL chairman and managing director Ambani said, “A full-blown social, mobile and digital revolution is underway across the world, and I am glad that India is not being left behind in any way with the advent of Jio. Everyone at Jio is today proud to have played a pivotal role in transforming the digital landscape of this country and empowering millions of Indians with all the leading digital tools and skills. Jio is offering the ‘power of data’ to each Indian to fulfil every dream and to collectively take India to global digital leadership. The strong financial results of Jio in a competitive market environment demonstrates the robustness of the Jio business model and ability to offer the most value to our customers and partners. Jio has demonstrated that it can scale and sustain its strong financial performance.”

    RIL numbers

    For FY 2017-18, RIL achieved consolidated revenue of Rs 430,731 crore, an increase of 30.5 percent, as compared with Rs 330,180 crore in the previous year. The company’s profit after tax was higher by 20.6 percent at Rs 36,075 crore as against Rs 29,901 crore in the previous year.

    Also Read :

    Jio Music, Saavn to merge; RIL to invest $100 mn in combined entity

    Star India beats Sony, Jio to win media rights for BCCI’s home matches

    Reliance launches JioTV for web

     

     

     

  • Reliance Industries Limited announces strategic investment in Embibe to from India’s largest Artificial Intelligence (AI) based education platform

    Reliance Industries Limited announces strategic investment in Embibe to from India’s largest Artificial Intelligence (AI) based education platform

    Mumbai : Reliance Industries Limited (“RIL”) today executed definitive agreements to acquire majority shareholding constituting 72.69% (on fully diluted basis) from existing investors of Indiavidual Learning Pvt Ltd (“Embibe”), a leading AI-based education platform leveraging data analytics to deliver personalized learning outcomes to each student.

    Reliance has agreed to invest upto Rupee equivalent of US$180 million into Embibe, (including consideration to be paid for acquiring majority stake from existing investors) over the next three years.

    Embibe will use the capital over the next three years towards deepening its R&D on AI in education, as well as business growth and geographic expansion, catering to students across K-12, higher education, professional skilling, vernacular languages and all curriculum categories across India and internationally. The founder and CEO of Embibe, Aditi Avasthi will continue in her leadership role and will drive the growth of the business.

    Speaking on this strategic transaction, Akash Ambani, Director, Reliance Jio, said “The investment in Embibe underlines Reliance’s commitment to growing the education sector in India and the world and making education accessible to the widest possible group of students by deploying technology. Reliance aims to connect over 1.9 million schools and 58,000 universities across India with technology. We are delighted to announce this partnership with Embibe, and believe that their highly experienced management team will be instrumental in enabling Reliance to realize its vision for the education sector, and strengthening Jio’s leadership position as a digital technology company.”

    Aditi Avasthi, Founder and CEO at Embibe, said “Embibe’s team has built an incredible technology platform that can deliver personalized learning outcomes in a way that is truly scalable across all education markets. With robust AI stacks focused on content intelligence and automation, behavioral recommendations and student intelligence, our products have redefined the way edtech can impact the lives of students and teachers. We are supercharging our platform with the ability to deliver both content and outcomes for every learning goal in every student’s journey, to be the leader in personalizing education for India and the world. We are excited to partner with Jio – bringing unrivalled acceleration to our growth story through data and device access. Most of all, we are delighted to partner with Reliance and share their deep conviction and visionary passion to sow the seeds of a new India with data as the new soil.”

    The transaction is subject to customary closing conditions.

    Citibank acted as financial advisor, AZB & Partners, Covington & Burling LLP and KPMG acted as legal advisors and Pricewaterhouse Coopers provided tax advisory and diligence services to RIL. Embibe was advised by Arpwood Capital, Shardul Amarchand Mangaldas & Partners and Khaitan & Company as legal advisors and Deloitte Touché Tohmatsu Limited for tax advisory services.

  • Jyoti Deshpande appointed RIL’s president of the chairman’s office for media

    Jyoti Deshpande appointed RIL’s president of the chairman’s office for media

    MUMBAI: Jyoti Despande has been appointed as the president of the chairman’s office for the media and entertainment business at Reliance Industries Ltd (RIL). 

    With this appointment, Deshpande has stepped down from her current position of executive director at Eros International Media (Eros) but will continue as non-executive non-independent director at the company.

    Kishore Lulla will continue to hold his position of group chairman and CEO of Eros.

    In her new role at RIL, Deshhpande will lead the company’s initiatives in media and entertainment to organically build and grow businesses, such as broadcasting, films, sports, music, digital, gaming and animation, around the content ecosystem as well as integrate RIL’s existing media investments such as Viacom18 and Balaji Telefilms with a view to build, scale and consolidate the fragmented USD 20 billion Indian M&E sector.

    Earlier this year, RIL acquired 5 per cent stake through its subsidiary, in Eros with a view of producing and acquiring digital originals and Indian movies across all languages. 

  • Hathway leads the way in wireline net subs addition in Q3

    Hathway leads the way in wireline net subs addition in Q3

    BENGALURU: Over the past few years, multi-system operators, or MSOs, and cable television operators have been trying to enhance revenue by offering broadband internet services riding piggyback on their cable TV network wires. The second largest—considering that Atria Convergence Technologies is also an MSO and has far more broadband subscribers— cable television-wired broadband internet services provider, Hathway Cable & Datacom Services Ltd (Hathway) added more subscribers than any other wired internet service provider between October 2017 and December 2017. Going by data provided by the Telecom Regulatory Authority of India (TRAI), Hathway added 60,000 subscribers in the third quarter of fiscal 2018 (FY 2018) or the last quarter of calendar year 2017 (CY-2107). The TRAI report indicated that Hathway added 40,000 subscribers in Dec-17, the highest by any of top five wireline broadband internet services providers in the country. Since Sep-17 Hathway is the fifth largest wired broadband internet services provider in India.

    In its investor presentation, the now pure broadband internet services provider, Hathway, says that it added net 50,000 wireline broadband internet subscribers in Q3 2018. In the same investor presentation, Hathway claims that it has added 1.5 lakh broadband internet subscribers in CY-17–its subscriber base grew from 6 lakh at the end of December 2016 to 7.5 lakh as on 31 December 2018. TRAI data pegs Hathway’s subscriber base at 7.3 lakh as on the same date.

    It may be noted that both ACT and Hathway started off as MSOs, but now their core business focus is on wireline broadband internet services. In the case of Hathway, after restructuring, it is now a pure wired broad internet services provider, with its cable TV operations now under Hathway Digital Pvt Ltd. While ACT has continued to service its existing cable TV subscribers in the limited territory that it operates – South India mostly – its wireline broadband internet subscriber base has grown quite remarkably notwithstanding its geographical limitations. ACT added 1.6 lakh wireline broadband internet subscribers in CY-17 and 40,000 in Q3 2018. In Dec-17, ACT added 10,000 wireline broadband internet subscribers. ACT is the third largest wired broadband internet service providers in terms of number of subscribers in India with a subscriber base of 12.8 lakh. ACT is probably the largest private wireline broadband internet services provider in South India.

    TRAI provides data in units of million up to 2 fractions and hence the subscription numbers mentioned in this report are accurate to the nearest 10,000.

    The largest wireline broadband internet services provider in the country – the public sector Bharat Sanchar Nigam Limited (BSNL) lost 5.7 lakh wireline broadband internet subscribers in CY-17 and 1.6 lakh in Q3-2018. In Dec-17, the public sector internet and telephony services provider bled 50,000 subscribers. It closed CY-17 or Dec-17 with a wired broadband internet subscriber base of 93.8 lakh.

    Indian telephone major Bharti Airtel Limited (Airtel) is the second largest wired broadband internet services provider in India – it closed Dec-17 with 21.5 lakh subscribers. Airtel added 1.1 lakh wired broadband internet subscribers in CY-17, 30,000 in Q3-2018 and 10,000 in Dec-17.

    The public sector Mahanagar Telecom Nigam Limited (MTNL) was once the third largest wired broadband internet services providers in the country, until it was replaced by ACT. MTNL lost 1.3 lakh wired broadband internet subscribers in CY-17, lost 40,000 subscribers in Q3 2018 and lost 10,000 subscribers in Dec-17. The company closed CY-17 with a wired broadband internet subscriber base of 9.1 lakh.

    Overall, the wireline broadband subscriber base in India declined by 2.8 lakh in CY-17, by 1.8 lakh in Q3 2018, but increased by 10,000 in Dec-17. The share of subscribers of the top five wired broadband internet service providers fell from 81.31 per cent as at the end of Dec-16 to 80.91 per cent at the end of Dec-17.

    The combined total number of subscribers of the top five broadband internet services in the country reduced by 3 lakh in CY-2017, reduced by 70,000 in Q3-2018 and remained the same in Dec-17 as in Nov-17 (144.5 lakh). It is quite obvious that the largest subscriber losses were by the public sector BSNL and MTNL. However, some MSOs such as Siti Networks Limited and regional player Ortel Communications had reported wireline broadband internet subscriber declines during CY-2017.

    Top 5 wireless broadband internet service providers

    As on 31 December 2017, the top five wireless broadband service providers were Mukesh Ambani’s Reliance Jio Infocomm Ltd (16.009 crore) followed by Bharti Airtel (6.894 crore), Vodafone (5.243 crore), Idea Cellular (3.480 crore) and BSNL (1.257 crore).

    Overall broadband internet subscription

    A majority of the 36.287 crore internet subscribers in India subscribe to wireless internet services through mobile phones and dongles – the number grew from 33.24 crore in Nov-17 to 34.457 crore in Dec-17. Fixed wireless subscribers –  (Wi-Fi, Wi-Max, Point-to-Point Radio & VSAT) declined to 4.4 lakh in Dec-17 from 4.5 lakh in Nov-17. As mentioned above, wired broadband internet subscribers grew by 10,000 from 178.5 lakh in Nov-17 to 178.6 lakh in Dec-17.

    The top five service providers constituted 93.80 per cent market share of the total broadband subscribers at the end of Dec-17. These service providers were Reliance Jio Infocom Ltd (16.009 crore), Bharti Airtel (7.109 crore), Vodafone (5.244 crore), Idea Cellular (3.481 crore) and BSNL (2.195 crore).

    Other broadband internet service providers

    As also mentioned above, MSOs and LCOs or cable video service providers also provide wired broadband internet services in the country. These cable service providers have a number of subsidiaries and alliances, hence, broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger than the numbers of some of the wired internet services providers mentioned above.

    Also Read :

    Nov 2017: Wireline internet bleeds subscribers

    Jio continues leading broadband subs addition while wireline internet loses subs in Oct

    RIL’s Rs 2.35 lakh crore investments in Jio start to payoff

  • RIL’s Rs 2.35 lakh crore investments in Jio start to payoff

    RIL’s Rs 2.35 lakh crore investments in Jio start to payoff

    BENGALURU: Mukesh Dhirubhai Ambani-run Reliance Industries Ltd (RIL) has invested a massive amount of money into the largest start-up in the world–Reliance Jio Infocomm Ltd (Jio). The RIL financials for the quarter ended 31 December 2017 (Q3 2018, quarter under review) showed that its digital services segment (Jio) had assets of Rs 234,986 crore, the largest asset block among any of the six segments (petrochemicals, refining, oil and gas, organised retail, digital services, and others) that the behemoth reports numbers for. And RIL reported net profit after tax (PAT) of Rs 504 crore for Q3 2018 as against net loss of Rs 271 crore during 2Q 2018, the immediate trailing quarter.

    The digital services segment’s operating revenue for Q3 2108 was Rs 6,879 crore, up 11.9 percent from the Rs 6,147 crore in the immediate trailing quarter. The value of services increased by 12.7 percent q-o-q to Rs 8,114 crore from Rs 7,197 crore, EBITDA almost doubled (increased by 82.1 percent) in the quarter under review to Rs 2,628 crore from Rs 1,443 crore in Q2 2018. EBIT almost quintupled (453.1 percent) to Rs 1,436 crore from Rs 260 crore.

    Jio added 2.15 million net subscribers in Q3 2018 with an ARPU of Rs 154 per customer. The RIL earnings release for its digital services says that average data traffic per customer for the quarter was 9.6 GB per month and total wireless data traffic has crossed 431 crore GB. Video consumption on the Jio network has crossed 200 crore hours per month, averaging 13.4 hours per subscriber per month.

    Commenting on the results, RIL chairman and managing director Ambani said, “I would like to thank all our customers for partnering with us in this revolution which has made India a global digital powerhouse. I congratulate all our employees and partners for the strong performance. Our commitment is to keep pushing newer innovative products which would radically transform customer lives and generate huge societal value.”

    “Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance,” he concluded.

    Organised retail business

    Revenues for Q3 2018 grew by 116.4 percent y-o-y to Rs 18,798 crore from Rs 8,688 crore. PBDIT for Q3 2018 increased by 82.0 percent y-o-y to Rs 606 crore from Rs 333 crore. Reliance Retail witnessed stellar performance across all consumption baskets during the period. During the quarter, Reliance Retail added 72 stores across various store concepts and increased the area operated to 14.5 million square feet from 13.2 million square feet in Q3 2017.

    RIL numbers

    RIL’s consolidated revenue increased by 30.5 percent to Rs 109,905 crore in Q3 2018 from Rs 84,194 crore in Q3 2017. Net profit increased by 25.1 percent to Rs 9,423 crore in the quarter under review as compared with Rs 7,533 crore in Q3 2017.

    Also Read :

    After telecom, Jio to bite into broadband and TV

    Comment: Reliance Industries’ telecom-media play fascinating, but complex & challenging too

    RIL to plan IPO for Reliance Jio: Bloomberg

  • Nov 2017: Wireline internet bleeds subscribers

    Nov 2017: Wireline internet bleeds subscribers

    BENGALURU: Mukesh Ambani’s Reliance Infocomm Limited (Jio) closed the month of November 2017 (Nov-17, month ended 30 November 2017) with 152.08 million wireless broadband subscribers having added 6.12 million subscribers (grown by 4.19 percent). As per Telecom Regulatory Authority of India (TRAI) data, the number of wireline broadband internet subscribers in India has declined 0.13 million from 17.98 million in Oct-17 to 17.85 million in Nov-17. This decline in wireline broadband internet subscribers is more than the 0.06 million decline in Oct-17 and the decline of 0.07 million subscribers in Sep-17.

    Overall broadband internet service providers

    The top five service providers constituted 92.92 percent market share of the total broadband subscribers (wired, mobile wireless, fixed wireless) at the end of Nov-17. These service providers were Jio (152.08 million), Bharti Airtel (69.38 million), Vodafone (50.16 million), Idea Cellular (32.90 million) and Bharat Sanchar Nigam Limited or BSNL (21.37 million).

    Wireless broadband internet service providers

    The fastest growth rate in mobile wireless internet subscribers was by Idea Cellular – its subscriber base increased by 6.03 percent (grew 1.87 million) in Nov-17. Jio had the second fastest growth as per the numbers mentioned above followed by Bharti Airtel Limited that grew 3.77 percent (added 2.44 million subscribers) in Nov-17, followed by Vodafone India. Vodafone’s wireless internet subscribers grew 3.59 percent or by 1.74 million. With the exit of Reliance Infocomm due to restructuring, BSNL entered the top five wireless broadband internet list in Nov-17. The public sector telecom player had 11.94 million broadband internet subscribers at the end of Nov-17.

    Top five wireline broadband internet service providers

    As on 30 November 2017, the top five Wired Broadband Service providers were BSNL (9.43 million), Airtel (2.14 million), Atria Convergence Technologies or ACT(1.27 million), Mahanagar Telecom Nigam Limited or MTNL (0.94 million) and Hathway Cable & Datacom (0.69 million). Airtel, ACT and Hathway gained 0.01 million subscribers each in Nov-17, while the public sector BSNL and MTNL lost 0.05 million and 0.2 million subscribers respectively.

    Overall, the combined subscriber base of the top five wireline broadband internet service providers lost 0.04 million subscribers in Nov-15. This means that the rest of the players besides the top five players lost another 0.09 million subscribers.

    Other broadband internet service providers

    MSOs and cable video service providers (LCOs) also provide wired broadband internet services in the country. These cable service providers have a number of subsidiaries and alliances, hence broadband numbers are split as applicable. The consolidated subscription numbers of these entities could be larger than the numbers of some of the wired internet services providers mentioned above. However, it must be noted that some of these MSOs and LCOs could have lost subscribers in November 2017, considering the fact that the top five wired broadband internet services providers have lost only 0.04 million of the 0.13 million wireline internet subscribers in November 2017.

    Notes: (1) TRAI reports indicate data in millions of numbers up to 2 decimal places. Hence it is assumed in this report that a figure of 0.51 million (5.1 lakh) subscribers for You BB for Dec-2015 would be granular to the nearest 10,000. While percentages have been mentioned up to two decimal places, the accuracy may vary, depending upon the exact number.

    Also Read:

    Jio continues leading broadband subs addition while wireline internet loses subs in Oct

    Wireline broadband subs base falls, overall broadband subs base grows

    Aug-17:Jio leads broadband subscriber growth, BSNL leads wireline subscriber decline