Ethio Telecom has reported its fastest growth in years, driven by a strong digital progress and a significant increase in financial technology services. The state-owned telecommunications company saw its net profit rise by 21% to 21.8 billion birr for the fiscal year, while revenue surged 21.7% to a record 93.7 billion birr.
Ethio Telecom’s net profit for the fiscal year reached 21.8 billion birr, marking a 21% increase from the previous year. The company’s gross profit margin stood at 47%, reflecting a robust financial performance. Revenue for the fiscal year climbed to 93.7 billion birr, up 21.7% from the prior year. The total number of telecom service subscriptions increased to 78.3 million, up from 71.9 million.
Ethio Telecom made significant strides in enhancing its infrastructure. Over 1,600 mobile network sites were optimized, and 4G coverage was expanded to 424 areas across 124 districts. The company also ramped up its 5G deployment, bringing the total number of 5G stations to 189 after adding 79 new stations. The total mobile network capacity now serves 86.1 million people.
Telebirr, Ethio Telecom’s mobile money service, achieved remarkable milestones in boosting financial inclusion. The platform facilitated 9.35 billion birr in micro-loans during the fiscal year and saw savings balances held on the platform reach 9.72 billion birr with 1.3 million savers. Cash deposits processed through Telebirr more than doubled to a new high of 210 billion birr.
Telebirr’s extensive network of 216,000 agents converted 325 billion birr in cash to electronic money. The platform enabled 436 billion birr in money transfers between Telebirr and bank accounts annually. Additionally, 2.9 million borrowers received micro-loans via Telebirr in the fiscal year. Telebirr now commands an estimated 46% share of Ethiopia’s mobile money market.
Ethio Telecom’s strategic focus on digital and financial technology services has not only bolstered its financial performance but also significantly contributed to financial inclusion and digital transformation in Ethiopia. The company’s continued expansion and innovation in mobile and financial services are expected to drive further growth in the coming years.
