Ethio Telecom hits 105% revenue target despite global pandemic
Ethiopia’s single telco operator Ethio Telecom has reported it reached 105.1% of its revenue target, despite the rippling effect the Covid-19 pandemic is bringing upon businesses worldwide.
The operator released its financial report, showing a total of 47.7 billion birr in revenue ($ 1.3 billion), representing a 31.4% increment from the previous budget year.
In its financial presentation, Ethio Telecom said the numbers were an “outstanding achievement” and were the result of its network expansion, projects targeting to enhance customer experience and satisfaction, 4G/LTE full coverage in Addis Ababa and the introduction of LTE advanced service in some parts of Addis, fixed broadband services with tariff reduction and offering 16 new and 25 revamped local and international products and services.
In the report, the company reported $147.7 million generated from international business and scored 107% of the target, showing an increase of 50% from the previous budget year.
“This achievement is made possible because of the new commercial and technical solutions deployed to prevent telecom fraud through establishing collaborations with our international partners in a consistent and in a manner that ensures mutual benefit,” it said.
Mobile voice accounted for 49% of the total revenue while data and internet contributed 29%, International business shares 9%, value-added service accounted for 9.4% and the remaining 3.6% comes from other sources.
During this period, Ethio Telecom have paid 11.3 Billion ETB tax and 4 Billion ETB dividend, effected 10.2 Billion ETB, an equivalent of 318.4 Million USD payment for loan – for projects implemented under Vendor-financing modality.
“After effecting the above major and other payments, we have begun our current budget year with a positive cash position,” the operator explained in its report.
During the performance period, total subscribers reached 46.2 million, an increase of 5.8% from the previous budget year.
Mobile voice subscribers reached 44.5 million, data and internet users 23.8 million, fixed services 980k and fixed broadband subscribers reached 212.2 thousand.
Speaking on the Covid-19 Pandemic, the business recognised that the global pandemic “has substantially impacted human life and businesses”.
It said: “Our management and staff have been working to ensure connectivity as telecom service is critical to mitigating disruptions to economic and social activities of our country as the result of the Corona pandemic.
“We have also committed huge resource and attention in prevention of Covid-19, from donating 100 million birr for the cause to the very advent of Covid-19, communication and awareness creation through the replacement of ring tone message with Covid-19 related messages and providing shortcodes for Federal and regional governments, providing free access to Ministry of Health and Ethiopian Public Health Institute web pages providing COVID-19 related information, and availing free access to educational materials to ensure continuity amid of the pandemic, facilitating and supporting fundraising from within and abroad, financial contribution to fund Ministry of Innovation and Technology sponsored research on Cpvid-19, etc.”