Ethio telecom 2013 EFY (2020/21) First Half Business Performance Summary Report

This report covers performance period from 01 July to 31 December 2020.

Ethio telecom commenced the budget year with the implementation of its three years BRIDGE growth Strategy, the company’s three years’ strategic plan 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 among the priorities.

Ethiopian Council of Ministers has enacted regulation to amend Ethio telecom’s establishment regulation. The amendment incorporates the following changes: the authorized capital increased to 400 Billion ETB, allows to engage in Mobile Money and related digital finance services, permits to engage in other related activities including forming an Entity and gives the right to invest on equities locally and at international level. Ethio telecom is undertaking a project to launch mobile money services within short period of time. In the related development, the company’s Asset valuation work has been completed and total asset value has increased by 42% using IFRS reporting standard. Currently, we are running 137 projects on infrastructure and system capacity enhancement, development and expansions aiming to boost network coverage capacity, and quality of services.

We have garnered a total of 25.57 Billion ETB revenue, which is 95% of the target and 12.3% increment from the previous budget year similar period. This achievement is scored due to network optimization works targeting to enhance customer experience and satisfaction; offering 21 new and 18 revamped local and international products and services. Mobile voice accounts for 49% of the total revenue while Data and Internet contributes 26%, International business shares 10.3%, Value Added Service accounts for 11% and the remaining 3.4% comes from other sources.

During the period, 80.21 Million USD foreign currency was generated from international business and scored 105.3% of the target; showing an increase of 5.9% from previous budget year similar period. This achievement is made possible because of commercialization of new revenue streams generating foreign currency and technical solutions deployed to prevent telecom fraud through establishing collaborations with our international business partners in a consistent and in a manner that ensures mutual benefit.

In the reporting period, we have paid 16.2 Billion ETB tax and 500 Million ETB dividend, effected 4.7 Billion ETB, an equivalent of 216.14 Million USD payment for loan – for projects implemented under Vendor-financing modality.

Our total subscribers reached 50.7 Million achieving 104% of the subscriber base target and an increase of 11.2% from June 2020 landing. Mobile voice subscribers reached 48.9 Million, Data and Internet users 23.5 Million, Fixed Services 981K and Fixed Broadband subscribers reached 309.4K. Population and geographic coverage are 95% and 85.4% respectively. Telecom density has reached 50%.

To ensure sustainable business growth, various capacity building interventions were made, including training 8,441 for employees in the period. Along with other interventions, employee engagement in strategy development & execution, work environment enhancement and safe & healthy working conditions, various compensation and benefits systems. Our company has created job and income opportunities for 310K citizens, of which 285K are partners who distribute our products and services while the rest are indefinite and definite term employees and other partners engaged in outsourced businesses. During the reporting period, our company has added 25K income and job opportunities.

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. We have contributed in kind, in service and in cash more than 322.35 Million Birr (excluding Covid-19 in service contribution) to address pressing societal challenges,

This corporate spirit is also reflected by our staff across the country by voluntarily mobilizing more than 3.03 Million ETB for various humanitarian activities. Also, their material, blood donation and in-service support has been enormous.

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 committed huge resource and attention in prevention 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, 16M ETB 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 and crisis in July and November to December, which have compromised expansion and enhancement projects implementation, supply chain, increasing operational costs and revenue impacts. In addition, fiber and copper cable vandalism, commercial power interruption, and delay in land acquisition for new sites deployment were among the main challenges during the reporting period.

In summary, our company’s six months’ performance is remarkable, given the challenges posed by COVID-19 and the security issues in some part of our country in the reporting period.

This remarkable achievement is only made possible because of the commitment of our company leaders and employees to make Ethio telecom a preferred operator. During the reporting period, on the top of running the business, the leadership team’s stamina and concerted effort in managing the crises was exemplary. 

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

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