will report its third-quarter earnings on Thursday and analysts expect growth momentum to continue following a sharp increase in subscriber base.
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- The momentum for the Jio business is likely to continue. Analysts are working with the sequential improvement of 12.5 percent in the company’s revenues aided by strong subscriber addition, so in the month of October, more than 10 million subscribers were added and that seems to be the run rate.
- For the full quarter, net subscriber addition of 30 million is expected which would be lower compared to what was seen in the prior quarter. Margin expansion should be there, so EBITDA margins of 39 percent are expected. That will drive more than 15 percent increase in the company’s profitability.
- The average revenue per user (ARPU) would continue to come down. It used to be more than 150 plus a couple of quarters ago and this quarter it could come down to 130.
- The key to track from the management’s commentary will be the Jio phone’s traction, any update on the Jio postpaid plans, the kind of traction it has seen and also on the Fibre-to-the-Home (FTTH) rollout.