Ethio Telecom profit doubles in two years

Annual gross profit of Ethio Telecom, the state-owned telecom service provider in Ethiopia, has almost doubled within the last two years.

Its annual gross profit for the last budget year 20/21, has reached 29.9 billion Birr from 15.7 billion Birr in 2018/19. This is indicated in the latest annual report of the National Bank of Ethiopia.

When it comes to annual revenue of Ethio Telecom, it has earned 55.8 billion Birr income in 2020/21 which was 17 percent higher than Birr 47.7 billion a year earlier. Its total expenses also increased 12.5 percent to Birr 25.9 billion during the same period, according to the annual report. “Consequently, gross profit of the enterprise stood at Birr 29.9 billion recording a 21.2 percent annual growth,” it said.

Meanwhile the report also shows that Ethio Telecom’s asset has declined to 39.1 billion Birr in 2020/21 from 59 billion Birr the previous year.

During the 2020/21 budget year Ethiopia’s telecommunication penetration rate (telecom density) also increased from 45.9 percent in 2019/20 to 54.8 percent in 2020/21. This is due to improvement in mobile density to 52.9 percent from 44.9 percent, according to the report.

“Internet and data density marginally increased to 24.3 percent from 24.0 percent. On the contrary, fixed line density went down to 0.9 per 100 subscribers relative to 1.0 per 100 subscribers,” it stated.

“…the Ethiopian government has made huge investment in telecom sector, focusing on improving quality of service, expansion of service coverage and enhancing institutional capacity. This policy measure has enhanced the capacity of Ethio-Telecom in terms of customer acquisition, customer satisfaction and provision of quality services to customers.”

The Annual report also stated that the total number of telecom service subscribers in Ethiopia has reached 56.2 million in 2020/21 depicting a 21.9 percent annual expansion owing to a 22 percent rise in mobile voice and 52.3 percent increase in internet and data subscribers despite a 6.8 percent decline in fixed voice service subscribers.

Of the total subscribers, mobile voice subscribers accounted for 96.6 percent followed by internet & data 1.8 percent and fixed voice service 1.6 percent.

It is recalled that during the first six months of the current year starting July 1, 2021, Ethio Telecom has generated 28 billion revenue, which is 6.7% increment from the previous budget year similar period.

During the six months period Ethio Telecom’s total subscribers reached 60.8 million achieving 100% of the subscriber base target and an increase of 20% from the previous budget year similar period. Mobile voice subscribers reached 58.7 million, data and Internet users 23.8 million, fixed services 923, 000 and fixed broadband subscribers reached 443,000. Telecom density has reached 58.5%.