Ethio telecom Hits 215.8 Billion Birr in Revenue and Prepares for Dividend Distribution
Ethio telecom has announced that it generated 215.8 billion Birr in revenue during the 2018 fiscal year, successfully achieving 99.7 percent of its target. This performance represents a significant increase compared to the 162 billion Birr in revenue recorded during the previous fiscal year.
The announcement was made as the state-owned operator presented its performance report for both the 2018 fiscal year and the inaugural year of its Vision 2028 strategic plan. During the reporting period, the company also secured 188.4 million US dollars in foreign currency revenue.
Subscriber Growth and Service Expansion
Ethio telecom’s total customer base has climbed to 90.1 million. A breakdown of the customer base shows 86.9 million mobile voice users, 51.5 million mobile broadband users, 1 million fixed broadband users, and 719,000 fixed voice subscribers.
To support this growth, the company integrated 603 new mobile stations into its network during the fiscal year, bringing its total count to 10,613 and expanding connectivity to an additional 1.5 million users. Furthermore, 264 additional towns gained access to 4G services, raising the national 4G coverage to 82.2 percent. Seven new towns were also connected to 5G services, bringing the total number of 5G-enabled cities to 33.
Telebirr Performance
The company’s mobile money platform, Telebirr, reached 60.5 million users. Over the course of the fiscal year, the platform processed 4.19 trillion Birr in transactions. Over the past five years, cumulative transactions through Telebirr have reached 9.13 trillion Birr, with 19.72 million customers accessing credit services through the platform.
Financial Milestones and Shareholder Dividends
A notable shift in revenue streams occurred during the fiscal year: data and internet revenue accounted for 31.1 percent of total earnings, surpassing voice services which contributed 23.5 percent for the first time. The company reported an EBITDA of 113.1 billion Birr representing 52.4 percent and a gross profit of 92.9 billion Birr.
Chief Executive Officer Frehiwot Tamru stated that once the financial audit is finalized, the net profit figures will be disclosed to stakeholders and shareholders, paving the way for dividend distributions. Looking ahead, under the Vision 2028 framework, Ethio telecom has set strategic targets to expand its customer base to 100 million and grow Telebirr users to 75 million by the year 2028.
