The above graph represents the Reliance Jio quarterly expenses by type – Network operating expenses, access charges, license fees/Spectrum charges, employee benefits expense, finance costs, depreciation and amortisation expense, selling and distribution expenses, and other expenses. The quarterly expenses of Jio increased 14.7% YoY in FY Q4 2020, to Rs 11,961 crore. Jio network operating expenditure (opex) accounted for nearly 38% of the company’s total expenses during the quarter. This is followed by finance costs, depreciation and amortisation expense, license fees/spectrum charges, etc.
Reliance Jio Expenses by Quarter: History
|Source||Reliance Industries Limited, RJIL|
|Note||Reliance Jio Fiscal Year: April 01 – March 31|
Reliance Jio network operating expenses increased an impressive 34.1% YoY in FY Q4 2020, to a record high Rs 4,560 crore – representing 30.7% of Jio’s total revenue.
Surprisingly, the finance expenses of Jio declined a massive 41.99% QoQ and 12.44% YoY during the three months ended March 31, 2020, to Rs 1,133 crore.
The telecom operator also cut its selling and distribution cost during March 2020 quarter when compared to the previous quarter and a year-ago period. Jio selling and distribution expenses stood at Rs 227 crore in FY Q4 2020, representing a strong 36.24% QoQ and 31% YoY decline.
Jio license fees or spectrum charges has significantly been increasing since FY Q2 2018 (July-Sep 2017). In FY Q2 2018, the telecom operator paid Rs 399 crore to the Indian government, which increased over 146% YoY to Rs 983 crore in FY Q2 2019.
Interestingly, during the three months ended March 2020, Jio license fees amounted to Rs 1,576 crore, representing a year-over-year increase of 33.6%.
About Reliance Jio: Additional Information
Reliance Jio Infocomm Limited (Jio), an Indian telecommunications company, is a subsidiary of Reliance Industries Limited (RIL) (NSE: RELIANCE), and Microsoft Corporation (NASDAQ: MSFT). The company has its headquarters in Mumbai, India. It is also the first telecom operator to hold pan India Unified License.
On September 05, 2016, Jio commercially launched its 4G services in India. Surprisingly, within the first month of its operations, the company created a world record by acquiring over 16 million subscribers – faster than any other telecom operator or startup in the world.
In just one month of its launch, over 72 million Jio customers signed up for JIO PRIME membership program, making it one of the most successful customer privilege programmes anywhere in the world.
In July 2017, Jio entered into India’s mobile phone market with the launch of 4G LTE feature phone, knows as JioPhone, in a bid to rope in massive 2G user base in the country.
In 2018, Reliance Jio secured the 17th place in the list of World’s 50 Most Innovative Companies (MIC) and the 1st place in the list of Most Innovative Companies in India 2018.
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