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Tuesday 25 April 2017

Reliance Jio loss widens to Rs 22.5 crore for second half of FY17.



Mumbai: Reliance Jio Infocomm Ltd, the telecom arm of Reliance Industries Ltd (RIL), on Monday reported a net loss of Rs 22.5 crore for the six months ended 31 March, the company said in a statement to BSE. Jio had posted a loss of Rs 7.46 crore in the year-ago period.

Jio’s total income dropped to Rs 54 lakh against Rs 2.25 crore for the six-month period.

It recently announced that 72 million subscribers had signed up for the company’s Jio Prime service in a start to monetisation of the telecom business.

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(Video provided by NDTV)

Jio had on 11 April launched a new plan—Dhan Dhana Dhan—that offers its Prime members 1GB data per day at 4G speeds for 84 days for Rs 309. The company launched this offer after it was asked to withdraw its Summer Surprise offer by the Telecom Regulatory Authority of India.

Credit Suisse, in a report dated 21 April said, “Given the strength of RIL’s balance sheet, RIL’s ability to fund losses is also higher than that of peers. Jio’s primary target is likely raising revenue market share as aggressively as possible. We highlight every 1% incremental market share (by FY25) could be worth $1.4 billion in net present value (higher eventual free cash flows) to a large telecom operator.”

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