Thanks to the grand success of Jio that when every other business plunged when struck by Demonetization and GST Mukesh Ambani saw his net worth multiply. In the Forbes India Rich List 2017 Mukesh Ambani stands at the apex, for the tenth time in a row and richer than ever. His present net worth now stands at a whooping USD 38 Billions! All this success and rise can without a doubt be credited to Jio.
Reliance Jio just crossed 13.86 crores subscribers that too when there was some hefty competition in the telecommunication market. Jio’s free giveaways were too hard to resist and hence you have such a mammoth number of subscribers in no time. Jio has ruled over the telecom market ever since its advent and the profits made are crazy!
Did you know how much did Jio earn?
Mukesh Ambani revealed the grand profits Reliance made from Jio and you will be stunned to know! As per BloombergQuint, Reliance Jio has reported revenues much higher than expected based on subscription recharges and lower than expected operational costs.
Net Revenue for the quarter covering the period from July 2017 to August 2017 stands at INR 6147 crores while the Net loss for the same quarter stands at INR 271 crores. The EBIT is INR 260 crore for the mentioned quarter.
What are the reasons for these huge profits?
Reasons for the sharp rise of profits include:
- Prime Memberships
- Subscription charges
These charges were done in April but were accounted for only in July.
Clearly Mukesh Ambani has won the Jio gamble from all sides and Jio turned out to be no less than a jackpot to both the consumers and Reliance. Market analysts speculate that 42 million consumers will be added in the second half of 2018 and by March 2019 the subscriber pool will be as big as that of 20.5 crores. Jio might soon overtake Vodafone to be the second biggest operator of the nation.