Ethio telecom posts 26 percent annual revenue increase

Addis Ababa, January 23, 2024 (FBC) – In the face of increasing competitive pressures, Ethiopia’s state-owned telecommunications provider, Ethio telecom, has successfully overcome foreign currency shortages to announce a notable 26 percent annual growth in revenue, amounting to 42.9 billion Birr.

In comparison to the corresponding period last year, this revenue surge reflects an increase of 8.86 billion Birr.

The substantial profit boost can be attributed to strategic digital innovations and the expansion of infrastructure. Remarkably, Ethio telecom achieved this outstanding performance despite heightened competition following the entry of Safaricom into the Ethiopian market.

While presenting the fiscal outcomes for the initial half of the 2023/24 financial year, CEO Frehiwot Tamiru ascribed the triumph to the “provision of economical novel and overhauled commodities and amenities, along with the delivery of diverse mobile financial and digital services.” As per her elucidation, numerous fundamental catalysts sparked Ethio telecom’s exceptional achievement.

Significantly, the comprehensive enhancement of infrastructure through network advancements not only bolstered reliability but also cultivated customer allegiance, extending 4G populace coverage to 340 municipalities.

On the financial side, expenditure optimization strategies led to 2 billion Birr in cost savings, showing 113 percent increase over the budget. Additionally, global service offerings earned 84.7 million USD, exceeding projections by 9 percent.

Ethio telecom’s strong 26 percent annual revenue growth this quarter is a significant improvement from the same period last year, despite different challenges such as service outage due to security problems in different parts of the country, power interruption, lack of foreign currency, fiber and copper cable vandalism, among others.

This acceleration in revenue expansion highlights the company’s ability to drive higher adoption of services like 4G and digital offerings such as TeleBirr despite intensifying market competition.

With this latest quarter outperforming previous periods by a healthy margin, Ethio telecom seems well-positioned to continue its upward growth trajectory amid an evolving telecom landscape.

Launched in 2021, Ethio telecom’s TeleBirr already boosts over 5 billion Birr daily transactions. Customers with a transaction value of 1.7 trillion Birr, ENA’s report recalled. With over 41.1million subscribers now and TeleBirr emerging as a payment backbone for sectors like fuel and agriculture, Ethio telecom retains instrumental influence over Ethiopia’s expanding digital economy.

The 129 years old Ethio telecom holds the second-largest mobile subscriber base in Africa as of 2023, with over 74.6 million customers; its massive subscriber base makes it a force to be reckoned with in the African telecom landscape.

Following Prime Minister Abiy Ahmed’s push to open up the economy to lure investment, Ethiopia opened up its telecom sector to foreign competition in 2021 by approving new licenses in an effort to improve quality, availability and affordability of services across the country.