EconomyEthiopiaNewsSociety & Economy

News: Ethio Telecom exceeds expectations with 75.8 billion birr revenue in 2015 fiscal year

Ethio Telecom has increased its client base under the leadership of Frehiwot Tamiru, with the number of users exceeding 72 million (Photo: Ethio Telecom/Twitter)  

Addis Abeba – Ethio Telecom, the leading telecommunications company in Ethiopia, announced today its financial results for the 2015 Ethiopian fiscal year. Surpassing expectations, the company generated a total revenue of 75.8 billion birr, achieving 101% of its target, according to its annual performance report.

This impressive achievement was attributed to diversifying revenue sources and focusing on customer- and institution-centered digital solutions and digital finance services in addition to its core telecom offerings. The reported revenue reflects a substantial 23.5% increase compared to the previous year.

Out of the total revenue, mobile voice income accounted for 43.7%, followed closely by data and internet at 26.6%. The remaining income originated from various sources, including international business, value-added services, and the sale of devices such as handsets, dongles, and modems. Ethio Telecom also achieved a remarkable $161 million from foreign currency-generating services such as international interconnect, roaming, infrastructure share, and international remittance, surpassing the company’s target by 107.8%.

During the reporting period, Ethio Telecom experienced significant growth in its subscriber base. The number of subscribers increased by an impressive 8% to reach 72 million, with 69.5 million being mobile voice subscribers. The data and internet user count reached 33.9 million, while fixed broadband subscribers stood at 618,300. These numbers position Ethio Telecom as the second-largest subscriber base in Africa and the 21st largest in the world, according to the press release put forward by the company.

Telebirr, the company’s mobile money business, has emerged as a leading player in Ethiopia’s digital financial landscape since its introduction two years ago. Meeting the growing demand for digital financial solutions in the country, Telebirr has amassed an impressive user base of 34.3 million subscribers. The total transaction value on this platform has reached a staggering 679.2 billion birr. Telebirr has successfully integrated its payment system with over 500 governmental and non-governmental institutions, contributing to the development of a robust digital ecosystem in the country. Additionally, Telebirr has enabled 1,263 gas stations to accept fuel payments through its platform, facilitating over 66.5 billion birr worth of fuel transactions.

Ethio Telecom has been executing a three-year strategic plan to establish itself as a leading provider of digital solutions in the competitive telecom market. Safaricom Ethiopia’s entry into the industry has brought healthy competition, as the Kenyan-based telecom company invested $850 million and committed to investing $8.5 million over ten years. In response, Ethio Telecom has been actively working on improving its mobile network capacity and expanding its service offerings to cater to a wider customer base. A major milestone achieved by the company is the launch of pre-commercial 5G services, aligning with its vision of establishing a digital Ethiopia and facilitating advanced technologies like the Internet of Things, mission-critical operations, and real-time services. Further expansions of the 5G network are currently in progress, according to Ethio Telecom.

The company faced several challenges throughout the budget year, including service disruptions caused by the crisis in the northern region and other areas of the country, delayed restoration efforts, power interruptions, and a shortage of foreign currency. Additionally, acts of vandalism targeted fiber and copper cables, posing significant challenges for Ethio Telecom. AS

Show More

Related Articles

Back to top button