Ethio Telecom earns 28 billion birr revenue in six months

The enterprise said  lost 4 billion birr as a result of the war

Ethio Telecom, which has reached 60.8 million subscribers in the first half of the 2014 Ethiopian budget year, said, “I have achieved 100% of my plan.”

Performance grew by 20% compared to the same period last year, with 58.7 million mobile voice subscribers, 443,000 Fixed Broadband subscribers, 923,000 subscribers and 23.8 million data and internet users. The teledensity rate is estimated at 58.5%.

Ethio Telecom CEO Frehiwot Tamiru said the company has achieved 28% of its target by overcoming the disruption caused by the security crisis in some parts of the country. She said in a statement issued today.

The full press statement is attached below

Ethio telecom 2014 EFY (2021/22) First Half Business Performance Summary Report

This report covers our company’s business performance for the period of 1st July 2021 to 31st December 2021. The performance has been reviewed by Ethio telecom Board and the Higher Management and was found to be outstanding given the challenges and crises our country was facing.

Cognizant of the relevance and multiple active role Ethio telecom has in our country’s overall progress and prosperity, our company has been undertaking a wide range of projects and operations to expand telecom infrastructures and systems, improve the quality of service and increase the outreach of benefits to the community. In particular, we have been resiliently working hard, enduring the challenges in the current crises to become a competent and preferred telecom service provider in the fast and dynamic telecom market to meet the growing demand for telecom services.

 Ethio telecom press conference
Ethio telecom press conference

Ethio telecom commenced the budget year with the implementation of its three years BRIDGE growth strategy along with the 2020/21 yearly plan to realize its aspiration to become a preferred telecom operator among customers and partners. Our company has conducted vast reform activities and advancements to attain its set strategic objectives preparing for the upcoming competitive market, enhancing customer experience and
satisfaction through ensuring operational excellence; deploying new and enhancement of infrastructure and systems, service availability, quality and affordability; effective resource utilization and enhancing financial capacity. Leadership and staff capacity building and empowerment; building reputable brand were also among the priorities.

In this first half of the budget year, we have garnered a total of 28 Billion ETB revenue, which is 86.4% of the target and 6.7% increment from the previous budget year similar period. This achievement is realized through network optimization works to enhance
customer experience and satisfaction; offering 23 new and 19 revamped local and international products and services, generating 74.8 Million USD from international business and scoring 89.3% of the target. Given the current challenging environment in our country, this achievement can be considered remarkable.

In addition to expanding our revenue streams, our company has devised cost optimization strategy and managed to save over 1.2 Billion ETB within the six months.
However, due to the crises, 3,473 BTS were not functional resulting in a revenue loss of 3.67 Billion ETB. The restoration in those areas where recovery was possible cost us
328.9 Million Birr but there are still many woredas remaining including Tigray region where we cannot provide our services and nor can the conditions and status of our telecom infrastructures be known. In this regard, we would like to extend our sincere apologies to our customers who are suffering from service outage due to the security challenges and that we will promptly do the necessary work of restoration as soon as the security situations improves.

Our 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 923K and Fixed Broadband subscribers reached 443K. Telecom density has reached 58.5%.

Currently, we are running different projects on infrastructure and system capacity expansions and enhancements aiming to boost network coverage capacity and quality of services out of which the expansion of 4G/LTE was completed and the service is already launched in 136 cities. In order to enable our customers to use the 4G/LTE Advanced services, we have availed 4G enabled handsets at an affordable price in those areas where the services were launched. Following the enhancement we have done on our Next Generation Business Support System (NGBSS), we were able to boost our Billing and Customer Relation Management Systems enabling us to provide improved
customer services and to also release different new products and services within a short period.

Furthermore, it can be recalled that we have recently engaged in the Mobile Money business introducing our “telebirr” with the aim to meet the country’s growing demand for digital financial services. Our “telebirr”, surpassing the industrial trend, has reached over 13 million subscribers within such a short period and with a total transaction value of ETB 5.1 Billion.

In order to ensure service coverage as well as benefit our partners, more than 46,000 agents and over 11,000 merchants have been engaged so far. In addition, integration with Banks is completed enabling money transfer from Bank to telebirr in 11 Banks and
from telebirr to Bank in 8 Banks.

To ensure sustainable business growth, various capacity building interventions were made, including training 18,000 employees. Along with other interventions are employee engagement in strategy development & execution, work environment enhancement and safe & healthy working conditions, various compensation and benefits systems.

As part of Corporate Social Responsibility and our commitment for our societies overall progress, our interventions have continued to have a positive impact on society, environment, and all stakeholders. Our CSR projects focused in strengthening
communities by targeting the fundamental drivers of long-term development such as education, health, agriculture, environmental protection, greening and beautification of cities. In this first half-year, we have contributed more than 253.4 Million Birr in kind, in service and in cash to address pressing societal challenges.

This corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 14.7 Million ETB for various humanitarian activities. Also, their material, blood donation and in-service support has been enormous.
Among the challenges we faced during the period, COVID- 19, the crisis in the North region as well as in some other parts of the country have resulted in service outage, infrastructure damage, compromised project execution, supply chain, increasing operational costs and revenue impacts. In addition, fiber and copper cable vandalism, commercial power acquisition delay and power interruption, many relocation requests,
and delay in land acquisition for new sites deployment were among the main challenges.

In this regard, we would like to extend our appreciation to the community in the security challenged areas who protected our infrastructures from theft and damages. As Ethio telecom is an Ethiopian institution belonging to the People, we extend our call to our society to play their role of protecting the infrastructures from damages to use our services.

In summary, our company’s semi- annual performance for the 2021/22 budget year is remarkable given the challenges posed by COVID-19 and the security issues in some part of our country. This achievement is only made possible because of the commitment of our company’s leadership and employees to make Ethio telecom a preferred operator
on top of running the business, the leadership team’s stamina and concerted effort in managing the operation and projects.
Finally, we would like to extend our most sincere gratitude to our customers, business partners and stakeholders for such remarkable performance. In order to realize the goals we have set for the budget year, all the necessary network expansions and new technology deployment are started and we are working to release products and services that can satisfy our customers’ needs.