Ethio Telecom’s Half Year Revenue Grew by 6.7% to 28bln Birr

ADDIS ABABA – State-run Ethio Telecom has generated 28 billion birr revenue in the first half of the current fiscal year, achieving 86.4% of its plan.

The gross revenue has shown a 6.7% increase as compared to the same months last year, with support of its growing customers and new services launched recently.

According to its report, Ethio Telecom started offering 23 new and 19 revamped local and international products and services that generated $74.8 million from international business in the six-month, beginning July 8, 2021.

It also registered a 100% achievement in terms of its half-year subscriber-base target, growing its customers number by 20% to 60.8 million.

Mobile voice subscribers reached 58.7 Million, Data and Internet users 23.8 Million, Fixed Services 923,000 and Fixed Broadband subscribers reached 443, 000, it said. Telecom density has reached 58.5%.

“Given the current challenging environment in our country, this achievement can be considered remarkable,” said the company whose half-year revenue was significantly affected by security-related challenges in Ethiopia.

– Security a challenge – 

Due to the security-related challenges, the company said its 3,473 base transceiver stations (BTSs) were not functional in the six-month period, resulting in a revenue loss of 3.67 Billion birr.

The restoration work in those areas where recovery was possible cost the company 328.9 Million Birr.

There are, however, “many Woredas”, including areas in Tigray region, where Ethio Telecom can’t provide services and nor can the conditions and status of our telecom infrastructures be known.

“In this regard, we would like to extend our sincere apologies to our customers who are suffering from service outages due to the security challenges,” company officials said.

The telecom firm says it will promptly do the necessary work of restoration as soon as the “security situation improves”.

– Preparing for competition –

The state-owned firm, however, will have a competitor this year – Safaricom Ethiopia – after Ethiopian Communications Authority (ECA) last month canceled plan to offer another telecoms license that would have brought a third company into the market.

Ethio telecom said the company started the year rolling out a three-year BRIDGE growth strategy along with its annual plan. The objective, it said, is to remain a preferred telecom operator in the second most populous nation in Africa with a total population of 110 million.

“Our company has conducted vast reform activities and advancements to attain its set strategic objectives preparing for the upcoming competitive market,” the company said.

Ethio telecom is now running different projects on infrastructure and system capacity expansions.

The 4G/Lit services, first introduced in the capital Addis Ababa six years ago, has now been expanded to 136 cities and towns of the country, it says.

The company also said its “Telebirr” mobile money service, launched in May, 2021, is gaining popularity while helping the country to meet its growing demand for digital financial services.

Users of Telebirr increased to 13.1 million, with a total transaction reaching 5.1 Billion birr. Its report also said customers can now transfer from Bank to Telebirr using 11 Banks and from Telebirr to Bank in 8 Banks, according to Ethio Telecom.

 

Featured Image Caption: CEO of Ethio Telecom Frehiwot Tamiru briefing reporters about the half year performance of the company on Monday, January 31, 2022.