Ethio Telecom reports 22% revenue increase, 21% profit growth in the past fiscal year

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The annual performance report for the 2023/24 fiscal year, covering the period from July 1, 2023, to June 30, 2024…
Ethio Telecom

Ethiopian state-owned telecom company Ethio Telecom announced Wednesday that its full-year revenue and net profit for the fiscal year ending in June showed significant growth. 

The company’s revenue increased by 22% to 93.7 billion birr ($1.63 billion), and net profit rose by 21% to 21.79 billion birr, as reported by Chief Executive Frehiwot Tamiru during a news conference.

Ethio Telecom also reported a 9% increase in its total subscribers, reaching 78.3 million. Meanwhile, the number of subscribers to its financial service, Telebirr, surged to 47.55 million from 34.3 million in the previous year. 

Telebirr, Ethio Telecom’s mobile money service, has seen a remarkable growth trajectory with a total transaction value reaching 1.81 trillion birr. This indicates a substantial increase in the adoption and usage of digital financial services among Ethiopians.

The annual performance report for the 2023/24 fiscal year, covering the period from July 1, 2023, to June 30, 2024, reflects Ethio Telecom’s robust growth and market expansion.  The company’s revenue for the year increased by 16.7 billion birr compared to the previous year. Foreign exchange generation rose by 20.7% to 198.2 million USD, achieving 117.5% of its target.

CEO, Frehiwot Tamiru highlighted the company’s achievements in subscriber growth, stating that Ethio Telecom reached 78.3 million subscribers, meeting 100.4% of its target for the year. 

Ethio Telecom CEO Frehiwot Tamiru
Ethio Telecom CEO Frehiwot Tamiru

In 2023, Ethio Telecom announced that it earned 75.8 billion birr in the fiscal year 2023. The company’s net profit for the year was 18.78 billion birr.

Then, Tamiru said that the company’s performance was “effective” and that 116 new services were launched during the year. She said that the company’s income in 2023 was 101% of the planned income and that it had increased by 23.5% compared to the 2022 budget.

She also attributed the company’s strong performance to the implementation of its “Lead” strategy, which was launched in 2022. 

By offering 203 products and services, we have managed to earn 75.8 billion birr during the budget year, up from 61.3 billion birr which was earned in the previous budget year,” said Tamiru in a briefing.

Tamiru emphasised that the company’s success is driven by a customer-centric approach, innovation, and strategic investments in technology and infrastructure. 

We have carried out several telecom expansion projects with ZTE and Huawei. We have worked and continue working with ZTE and Huawei on expansion of 4G and 5G telecom services,” Tamiru said in 2023.

She expressed satisfaction with the company’s current performance saying: 

Driven by customer demand and prioritising customer satisfaction in the dynamic telecom market, we have quadrupled our net profit in the last six years, solidifying our position as a leading and trusted service provider.

Ethio Telecom CEO Frehiwot Tamiru

Despite the positive performance, Ethio Telecom faces ongoing challenges in the telecom sector. 

Issues such as regulatory hurdles, competition from other telecom providers, and the need for continuous technological upgrades remain. 

Ethio Telecom

When Prime Minister Abiy Ahmed took office in 2018, he promised to liberalise Ethiopia’s economy, making the telecom industry, which serves a population of about 120 million, an attractive target for investors. However, recurring security issues, legislative changes, and concerns about the government’s commitment to opening the economy have since deterred potential investors.

The announcement of the potential partial privatisation of Ethio Telecom by Abiy in February signalled a significant shift in Ethiopia’s economic policy, aiming to attract foreign investment and enhance market competitiveness. The move was expected to bring in capital, expertise, and innovation, further driving the growth of the telecom sector.

However, Ethio Telecom reiterates its strategic focus on expanding its digital services and financial products positioning it well for future growth.


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