Ethio Telecom reports 31% increase in full year revenue

6 Aug 2020

Ethio Telecom has reported a total turnover of ETB47.7 billion (USD1.35 billion) for its financial year ending 30 June 2020, representing year-on-year growth of 31.4%. According to the operator, the increase was attributable to: network expansion; the realisation of full coverage of Addis Ababa with 4G and the introduction of LTE-A connectivity in some parts of the capital; fixed broadband services ‘with massive tariff reduction’; and the offering of ‘16 new and 25 revamped local and international products and services’. In terms of its financial performance, meanwhile, it noted that mobile voice services accounted for 49% of the total revenue, while ‘data and internet’ contributed 29%, ‘International business’ represented 9% and ‘Value Added Service’ generated 9.4%; the remaining 3.6% was said to have come from ‘other sources’.

In operational terms, Ethio Telecom reported that the number of mobile subscribers on its books had increased to 44.50 million as at 30 June 2020, up from a previously confirmed figure of 44.03 million at the end of 2019. Meanwhile, fixed broadband accesses stood at 212,200 at end-June 2020, while ‘data and internet’ users had increased to 23.80 million, from 22.74 million at December 2019, and ‘fixed services’ users numbered 980,000 – down from 1.01 million at the start of the year.

As previously reported by CommsUpdate, under plans outlined by Ethiopia’s Ministry of Finance (MoF) in May 2020, the government plans to sell a 45% stake in monopoly telecoms provider Ethio Telecom. Under the proposal, a 40% holding in the telco will be offered to an international telecoms company and a 5% interest will be offered to the public. There is also expected to be a cap on the number of shares an individual can purchase, the report said.

Ethiopia, Ethio Telecom