Ethio Telecom Sees 22% Revenue and 21% Profit Growth Last Fiscal Year

Ethiopian state-owned telecom company Ethio Telecom announced strong financial results for the 2023/24 fiscal year, with a 22% in revenue growth and a 21% rise in net profit.

The company’s revenue reached 93.7 billion birr ($1.63 billion), up from 77 billion birr the previous year. Net profit also grew to 21.79 billion birr, a 21% increase.

Subscriber and Mobile Money Growth

Ethio Telecom’s subscriber base saw a 9% jump, reaching 78.3 million customers.

The company’s mobile money service, Telebirr, experienced significant growth as well, with active subscribers rising to 47.55 million from 34.3 million the previous year.

Total transaction value through Telebirr reached 1.81 trillion birr ($31 billion).

Ethio Telecom Revenue Profit Growth: Key Factors for Success

CEO Frehiwot Tamiru attributed the company’s success to its customer-focused approach, innovative practices, and strategic investments in technology infrastructure.

She stated that Ethio Telecom has “quadrupled its net profit in the last six years, solidifying its position as a leading and trusted service provider.”

Ongoing Challenges and Potential Privatization

Despite the positive performance, Ethio Telecom faces ongoing challenges, including regulatory hurdles, competition from other telecom providers, and the need for continuous technological upgrades.

The Ethiopian government’s consideration of selling a 10% stake in Ethio Telecom through a local stock exchange, announced by Prime Minister Abiy Ahmed in February, was expected to bring in capital, expertise, and innovation to the telecom sector.

However, recurring security issues and concerns about the government’s commitment to economic liberalization have deterred potential investors.

Ethio Telecom remains focused on expanding its digital services and financial products, positioning the company well for future growth.

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