Reliance Jio to break even in 2018: Fitch

[IndianMascot]

Reliance Jio, the telecom arm of Reliance Industries Limited (RIL), is expected to break even on an EBITDA (earnings before interest, taxes, depreciation, and amortization) basis in 2018, supported by affordable 4G data offerings and robust infrastructure, ratings agency Fitch said on Thursday.

“We expect RIL to be able to take advantage of the strong growth potential in the India telecoms market. We expect the robust infrastructure along with its affordable 4G data offerings to support Jio's growth,” Fitch said in note.

Mukesh Ambani-led Reliance Industries has invested significantly in its telecom infrastructure and expects to cover 90% of the population by end-FY18, up from over 70% coverage currently.

RIL launched its telecommunications business under the Jio brand in September 2016 and has made a substantial investment in this operation.

The agency said that Jio's wide range of offerings, including media and entertainment content will help the telco in subscriber additions and data consumption, which will drive cash generation.


Reliance Jio to break even on EBITDA basis in 2018: Fitch - ET Telecom

 

[Aviral Sangal]

Break Even is a big word. I do not think that with an investment of almost 2 Lakh crore can break even so quickly.

 

[Teufel]

They have alreday changed the figures in telecom industry in just few months. I am hoping to see the same changes in broadband industry.

Posted using Entertainment Forum app

 

[Teufel]

They are not making any money anytime soon. They will however make the most money in the future, since they already are investing in infrastructure, which is future ready, and when other companies would start building infrastructure, Jio would make money.

Posted using Entertainment Forum app