Indian operator confirms acquisition of TV and broadband providers as it seeks to boost Jio’s fixed network rollout project
Reliance Jio Infocomm reported a sizeable increase in revenues in the second quarter of the current financial year, while earnings before interest and tax grew eight-fold, according to the first announcement from parent company Reliance Industries’ board meeting on Wednesday.
Later the firm announced that it will pay 52.3 billion rupees (€617 million) for cable TV and broadband service providers Hathway and DEN Networks.
It has agreed to pay INR29.4 billion for a 51.3% stake in Hathway Cable and Datacom, and make primary and secondary purchases worth INR20.5 billion and INR2.5 billion respectively for DEN Networks. It will also make an open offer for both companies, in addition to a couple of subsidiaries, as required under Indian law.
"With local cable operators (LCOs) now as part of the Jio ecosystem, we look forward to bringing Jio’s advanced JioGigaFiber and smart home solutions to more Indian homes, even quicker," said Reliance Industries chairman and managing director Mukesh Ambani
JioGigaFiber is the high-speed broadband network the firm is rolling out across India through Reliance Jio, with a view to reaching 50 million homes in 1,100 towns and cities.
"We look forward to welcoming other MSOs and LCOs to be part of this partnership," Ambani said. "This will result in growing wireline data connectivity in India and making state-of-the-art high-speed affordable Internet and digital services accessible to the widest population in the shortest possible time."
Reliance Industries’ digital service segment, which is how it presents Reliance Jio, generated revenues of 109.4 billion rupees (€1.3 billion) in the three months to the end of September, up 52% on the year-ago quarter.
Earnings before interest and tax (EBIT) grew to INR20.4 billion (€241 million) from INR2.6 billion.
Half-yearly figures showed revenue growth of 180% to INR205.95 billion and an increase in EBIT to INR37.6 billion from INR2.4 billion.