Ethio telecom 2012 EFY (2019/20) Annual Business Performance Summary Report

This report covers performance period from 01 July to 30 June 2020

Ethio telecom commenced the budget year with the implementation of BRIDGE, the company’s three years’ strategic plan along with the 2019/20 yearly plan to realize its aspiration to become a preferred telecom service provider among customers and partners.

Aiming to achieve its strategic goals, our company conducted vast reform activities and advancements mainly focusing on enhancing customer experience and satisfaction through ensuring operational excellence; service availability, quality and affordability; effective resource utilization and enhancing financial capacity; building reputable brand and, enhancing capacity of its leadership and staff in strategy design and execution, empowerment and timely decision making.

We have harvested a total of 47.7 Billion ETB revenue, which is 105.1% of the target and 31.4% increment from the previous budget year. This outstanding achievement is scored due to network expansion, projects targeting to enhance customer experience and satisfaction, 4G/LTE full coverage in Addis Ababa and introduction of LTE advanced service in some parts of Addis, fixed broadband services with massive tariff reduction and offering 16 new and 25 revamped local and international products and services.

147.7 Million USD foreign currency was generated from international business and scored 107% of the target; showing an increase of 50% from previous budget year. This achievement is made possible because of the new commercial and technical solutions deployed to prevent telecom fraud through establishing collaborations with our international partners in a consistent and in a manner that ensures mutual benefit. Mobile voice accounts for 49% of the total revenue while Data and Internet contributes 29%, International business shares 9%, Value Added Service accounts for 9.4% and the remaining 3.6% comes from other sources.

During this period, we have paid 11.3 Billion ETB tax and 4 Billion ETB dividend, effected 10.2 Billion ETB, an equivalent of 318.4 Million USD payment for loan – for projects implemented under Vendor-financing modality. After effecting the above major and other payments, we have begun our current budget year with a positive cash position.

During the performance period, our total subscribers reached 46.2 million which is an increase of 5.8% from previous budget year. Mobile voice subscribers reached 44.5 Million, Data and Internet users 23.8 Million, Fixed Services 980K and Fixed Broadband subscribers reached 212.2 thousand. During the budget year major and multifaceted advancement was made on fixed broadband services along with tariff slash, the subscribers showed an increase of 135% from the previous budget year. As a result, telecom density has reached 46.1%.

Currently we have 16.5K indefinite and 19.9K definite term employees. To ensure sustainable business growth, various capacity building interventions were made during the budget year. As part of capacity building, we were able to provide training for 10,665 employees. Along with other interventions, employee engagement in strategy development & execution, work environment enhancement and safe & healthy working conditions, various compensation and benefits systems, enhancement of social relations by celebrating employee day throughout the company which has positively impacted working atmosphere. We have 249 thousand partners who distribute our products and services, totally we have created job and income opportunities for over 287 thousand citizens.

At the heart of our company business is our commitment to Corporate Social Responsibility. Our CSR interventions 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. We have contributed in- kind, in service, and cash accounting a total of 1.15 Billion Birr in tackling the society’s most pressing challenges that are aligned with our CSR strategic goals.

This corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 2.1Million ETB for various humanitarian activities. Also, their material, blood donation and in-service support has been enormous.

Facing COVID-19 Pandemic, a global pandemic that substantially impacted human life and businesses, we have adopted various interventions. Our management and staff have been working to ensure connectivity as telecom service is critical to mitigate disruptions to economic and social activities of our country as the result of the Corona pandemic.

We have also committed huge resource and attention in prevention of Covid-19, from donating One Hundred Million Birr (100 Million Birr) for the cause to the very advent of COVID-19, communication and awareness creation through the replacement of ring tone message with COVID-19 related messages and providing short codes for Federal and regional governments, providing free access to Ministry of Health and Ethiopian Public Health Institute web pages providing COVID-19 related information, and availing free access to educational materials to ensure continuity amid of the pandemic, facilitating and supporting fund raising from within and abroad, financial contribution to fund Ministry of Innovation and Technology sponsored research on COVID-19, etc.

Among the challenges we faced during the period, COVID -19, which has compromised expansion and enhancement projects implementation, customer acquisition, increasing operational costs and revenue impacts, fiber and copper cable vandalism, commercial power interruption, telecom fraud, security problems and delay in land acquisition for new sites deployment were among the main ones.

In summary, our company’s performance in the budget year is generally outstanding and motivating while, particularly, remarkable given the challenges posed by the COVID-19.

As this excellent achievement is only made possible because of the stamina and commitment of our leaders and employees to make Ethio telecom a preferred operator among customers and partners and their pledge to the goals and objectives set. The leadership and employees deserve great appreciation and gratitude.

Finally, we would like to extend our most sincere gratitude to our customers, partners, and stakeholders for such outstanding performance.                                                                        

30 July 2020

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