Jio trumps Airtel in Q2 ARPU growth on tariff hike impact

Reliance Jio reported sharper sequential growth in its average revenue per user (ARPU) – a key performance metric — in the June quarter compared to rival Bharti Airtel, helped by a stronger impact of tariff hikes taken last December and also its larger base of data users who could recharge more easily through digital means during the Covid lockdowns, say analysts.

Jio’s 7.3% sequential growth in ARPU to Rs 140.3 in the June quarter compared to Airtel’s 1.8% rise to Rs 157, they said, also helped lower the gap between the two companies on this score by 6 percentage points to 12%.

“Jio’s 7% on-quarter rise in ARPU during 1QFY21 and 12% on-quarter revenue growth was impressive and sharply ahead of Bharti Airtel,” Jefferies said in a note. The brokerage added that the telecom market leader also put in a stronger show on customer base expansion, recording 10.8 million net additions, while Airtel lost 3.8 million users in the fiscal first quarter.