Reliance Jio incurred a loss of Rs 22.5 crore during a six-month period from September 2016 to March 2017. The telecom company posted a Rs 7.46 crore loss that it made in the same period last year. The telco’s overall losses for the previous financial year (FY 2016-17) stood at Rs 31.37 crore, which increased from Rs 15.71 crore in the FY 2015-16.
The telco had launched its operations as a 4G-only service in September last year and is present in all 22 telecom circles. It was able to retain 72 million 4G customers after having garnered 100 million users in over 6 months through its promotional offers. The telco recently started charging users for its services and is also offering 3 months of free data and calls as complimentary on the first recharge. The telco is also expected to come out with its own set of fiber broadband and DTH/IPTV services.
Promotions come with a cost for any company, and Jio’s freebies have reflected hugely on the company’s expenses. According to its filings, Jio’s ‘Selling and Distribution” costs increased by more than 300% YoY to Rs 17.88 crore in FY17. During FY16, which was before Jio’s public launch, the company’s expenses stood at Rs 3.76 crore. The company’s operating expenses also went up by 42.6% YoY to Rs 19.32 crore during FY17. In FY16, Jio’s operating expenses stood at Rs 13.54 crore.
-Total income during FY17 stood at Rs 1.22 crore, which decreased 158% YoY from Rs 3.15 in FY16.
-Paid up debt-capital (capital raised from stock/share sales) stood at Rs 47,463 crore in FY17.
-Net Worth stood at Rs 70,864 crore during FY17, up 90% YoY from Rs 37, 2336 crore in FY16.
Other Jio updates
-Reliance Jio’s subscriber base is now at 108.9 million (paid and unpaid subscribers). Jio claims overall of 110 crore GB of data traffic per month and 220 crore voice and video minutes a day.
-The telco has confirmed that it has been testing Fibre to the Home (FTTH) services in few locations. It would be initiating beta trials in more locations but did not hint on a full-scale roll-out.
-Reliance Jio sold 2.6 million LYF smartphones and JioFi hotspot devices in Q4FY17. Durig the entire FY17, a total of 10 million of LYF and JioFi devices were sold.
-Reliance now has 3,616 retail stores across 702 cities including stores like AJIO.com, the company’s omni-commerce portal.