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November 5, 2024

Ethio Telcom makes $830 million profit

The only telecommunications service provider in Ethiopia, Ethio Telecom says it has made a total profit of over 24 billion birr (around $830 million) before tax during Ethiopian fiscal year concluded July 07, 2019.

The total number of subscribers of the only telecom operator in the country has managed to increase the total number of subscribers to 43.63 million, which was 37.92 million the previous year, according to Firehiwot Tamiru, CEO of Ethio Telecom, who briefed reporters this morning.



She stated that the total revenue of the state monopoly has reached 36.6 billion birr (about $1.27 billion) during the year, which is 7 percent higher than the previous year. The income includes $98.3 million from international call, which is 37 percent higher than the previous year. During the year data revenue share has represented 29 percent of the total revenue of the company, growing by 11 percent from the previous year.

While tax payment of the company has increased to 16.2 billion birr ($about $560 million), which is 40 percent more than the previous year. During the year Ethio Telecom has also paid a total of 9.9 billion birr (about $343 million) loan, which is 564 percent higher compared to the previous fiscal year, according to the presentation of the CEO.

Preparing the 125 years old Ethio Telecom for partial privatization has also been underway, according to the CEO. The preparation has come following the recent decision of the government to partially privatize Ethio Telecom and liberalize the telecom sector of Ethiopia.

The CEO, who was also appointed about a year ago after the reformist Prime Minister Abiy came to power, indicated that the organization has been going through major reforms and structural adjustments for the past months. It is indicated that the reforms are aimed at making Ethio Telecom competent institution and its staff in the industry. Among the challenges Ethio Telecom has faced during the year includes telecom frauds and power cuts, according to the CEO. It is recalled that the previous year of the first six months Ethio Telecom has announced a total profit of over $594 million before tax.

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