Ethiopia's state-owned telecommunications giant, Ethio Telecom, recently unveiled promising financial outcomes for the fiscal year ending in June. The company's financial update revealed a significant uptick in revenue, registering a 22% boost to 93.7 billion birr (approximately $1.63 billion), alongside a commendable 21% increase in net profit, reaching 21.79 billion birr. These advancements were conveyed by CEO Frehiwot Tamiru in a recent media briefing.
Moreover, Ethio Telecom witnessed a notable 9% surge in its total subscriber base, hitting 78.3 million. Noteworthy is the substantial growth in Telebirr users, escalating from 34.3 million to 47.55 million in the previous year.
The mobile money service, Telebirr, operated by Ethio Telecom, experienced a remarkable trajectory with its overall transaction value hitting 1.81 trillion birr. This surge underscores the increasing acceptance and utilization of digital financial services within the Ethiopian community.
The yearly overview for the 2023/24 fiscal period, spanning from July 1, 2023, to June 30, 2024, underlines Ethio Telecom's robust financial strides and market reach expansion. The company's revenue soared by 16.7 billion birr compared to the prior year, with foreign exchange earnings escalating by 20.7% to 198.2 million USD, surpassing the set target by 117.5%.
CEO Frehiwot Tamiru emphasized the company's success in augmenting its subscriber base, affirming the attainment of 78.3 million subscribers, exceeding the annual target by 100.4%.
Ethio Telecom's revealed gains of 75.8 billion birr for the 2023 fiscal year, with a net profit of 18.78 billion birr. Tamiru lauded the company's 'effective' performance and the rollout of 116 new services throughout the year. The revenue for 2023 surpassed the projected income by 101% and expanded by 23.5% in comparison to the 2022 budget.
Tamiru credited the company's prosperity to the execution of the 'Lead' strategy introduced in 2022. She underscored a commitment to customer-centric practices, innovation, and strategic investments in technology and infrastructural development.
Despite witnessing notable progress, Ethio Telecom confronts persistent hurdles in the telecom sector, encompassing regulatory complexities, competitive dynamics, and the imperative for continual technological enhancements.
Since assuming office in 2018, Prime Minister Abiy Ahmed's pledge to liberalize Ethiopia's economy targeted the telecom domain, beckoning potential investors for a sizable population reaching 120 million. However, challenges like security uncertainties, policy alterations, and doubts regarding economic accessibility have dissuaded investor engagement.
Abiy's proposal of potential partial privatization of Ethio Telecom in February marked a significant strategy shift in Ethiopia's economic landscape, aiming to entice foreign investments and fortify market competitiveness. The initiative aimed to draw in capital, proficiency, and innovation to bolster further growth in the telecom industry.
Nonetheless, Ethio Telecom stands resolute in its expansion of digital services and financial offerings, strategically situating itself for prospective growth and evolving industry landscapes.
