Ethio Telecom, Ethiopia's state-owned telecommunications company, has announced impressive financial results for the fiscal year ending in June, showcasing significant growth. According to CEO Frehiwot Tamiru, the company reported a 22% increase in revenue, reaching 93.7 billion birr ($1.63 billion), and a 21% rise in net profit, totaling 21.79 billion birr.
Tamiru also highlighted other milestones achieved during the year, including a 9% growth in total subscribers, which now stands at 78.3 million. The company's mobile money service, Telebirr, experienced a substantial surge in users, climbing to 47.55 million from 34.3 million in the previous year. Transactions through Telebirr amounted to an impressive 1.81 trillion birr, illustrating the growing adoption of digital financial services in Ethiopia.
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.
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 emphasized 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 will 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 prioritizing 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.”
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.
When Prime Minister Abiy Ahmed took office in 2018, he promised to liberalize 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 privatization of Ethio Telecom by Abiy in February signaled 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.
