Reliance Jio Q2 Review - Subscribers, ARPU Remain Underwhelming: ICICI Securities
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ICICI Securities Report
During Q2 FY22, Reliance Jio Infocomm Ltd. cleaned up some of its inactive subscribers base which led to a dip in its total subs base.
Adjusted for the subs decline, average revenue per user growth looks underwhelming considering one additional day, and steady growth in fiber-to-the-home and enterprise revenue.
Network opex inflation is sticky on payments to Investment trusts which has capped incremental Ebitda margin at 50-55%.
Net profit was higher on lower depreciation and amortisation cost, despite Rs 570 billion spectrum investment.
Negative free cash flow was disappointing on higher capex intensity from rollout of new spectrum and spectrum-related payments.
RJio has maintained the launch date of ‘JioPhone Next’ before Diwali.
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