State-owned Ethio Telecom records a 22% revenue increase and 21% net profit growth.

Ethiopian telecom company Ethio Telecom has recorded a 22% revenue increase and net profit growth of 21% in the past fiscal year.

Ethio telecom
Ethio telecom

Ethiopian state-owned telecom company Ethio Telecom stated in a conference on Wednesday that its full-year revenue and net profit rose by more than 20% in the past fiscal year.

The company’s revenue increased by 22%, capping it at $1.63 billion. Net profit rose by 21%, rounding it to $3.77 million, a 108.7% performance in the 2023/24 fiscal year.

The annual performance report for the 2023/24 fiscal year, covering the period from July 1, 2023, to June 30, 2024, reflects Ethio’s robust growth and market expansion.  Its revenue for the year increased by $28.9 million compared to the previous. In comparison, FX generation rose 20.7% to $198.2 million, achieving 117.5% of its target.

Telebirr, Ethio’s mobile money service, has also seen huge growth, with total transaction values reaching $31.3 billion, and active subscribers rising to 47.55 million from 34.3 million the previous year. This indicates a surge in the adoption of digital financial services among Ethiopians.

CEO Frehiwot Tamiru highlighted the company's achievements in subscriber growth,  reporting a 9% increase in subscribers reaching 78.3 million, stating that Ethio Telecom met 100.4% of its target for the year. She said its consistent success has been fueled by a customer-focused approach, innovative practices, and strategic technology infrastructure investments.

Despite the positive performance, it faces ongoing challenges in the telecom sector. Issues such as regulations, competition from other telecom providers, and the need for continuous technological upgrades remain. 

Prime Minister Abiy Ahmed said in February that the government was considering selling 10% of Ethio Telecom via a local stock exchange that will be launched this year. The move is expected to bring in capital, expertise, and innovation, further driving the growth of the telecom sector.

However, recurring security issues, legislative changes, and concerns about the government’s commitment to opening the economy have since deterred potential investors. The operator continues to focus strategic efforts on expanding its digital services and financial products positioning it well for future growth.

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