Ethio Telecom Amasses 25.6b Br in First Half

The sole telecom operator in Ethiopia, Ethio telecom has generated 25.6 billion Br in revenues during the first half of this fiscal year. The value showed a 12.3pc growth compared with the same period last year.

The 126-year-old firm also managed to bring in 80.2 million dollars in foreign currency and serviced 126.1 million dollars of its debt. During the reporting period, it paid 16.2 billion Br in taxes and half a billion Birr in dividends.

Ethio telecom managed to attain 95pc of its revenues forecast.

‘‘We couldn’t achieve 100pc of our plan due to the crises in the northern part of the country,’’ said Frehiwot Tamiru, CEO of Ethio telecom, briefing members of the media this morning at Hyatt Regency Hotel on Africa Avenue.

The total number of telecom users has also reached 50.7 million, registering an 11.2pc growth compared with the figure at the beginning of the current fiscal year. Out of the total user base, 49.8 million of them are mobile users, while 23.5 million and 309,400 were mobile data users and broadband internet users, respectively. Smart phone penetration has also reached 43.7pc.

The CEO also mentioned the company’s establishment regulation amendment as one of the major achievement’s of the company during the first half of this fiscal year.

Approved two weeks ago by the Council of Ministers, the regulations enable the company to engage with mobile money as well as digital financial services and raised its authorised capital to 400 billion Br, a huge boost from the previous 40 billion Br. The new law also allowed the company to form an entity and make an equity investment locally and internationally.

Ethio telecom is one of the state-owned companies that will be partially privatised. Keeping 55pc of the shares, the government started the process of selling 40pc of the company’s stake to a foreign company and the remaining shares are allotted for local buyers. Deloitte East Africa was hired as a transaction advisor of the partial privatisation process.

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