State-owned telecom provider Ethio Telecom has reported its fastest profit and revenue growth in years, driven by rising demand for digital services across Ethiopia. Meanwhile, its mobile money unit Telebirr continues hitting milestones that are deepening financial inclusion in the nation.
Ethio Telecom announced this week that net profit jumped 21 percent to 21.8 billion birr (USD 377 million) in the fiscal year ending June, coming in above expectations. Total revenue surged 21.7 percent to hit a record 93.7 billion birr, also exceeding expectations.
The double-digit increases represented the strongest growth rates in several years for the dominant carrier, according to company CEO Frehiwot Tameru.
She attributed the accelerating results to the firm's strategic focus on digitizing operations while expanding high-speed mobile networks nationwide.
Ethio Telecom significantly expanded network capacity over the past year to keep up with surging demand. Through various infrastructure projects, it increased total mobile network capacity by seven million to reach 86.1 million.
The company optimized over 1,600 sites and expanded 4G coverage to an additional 124 cities and districts. 4G is now available in 424 urban centers across Ethiopia.
Ethio Telecom also ramped up 5G deployment, growing the number of 5G stations 79 to 189. 5G services were rolled out in five regional capitals including Addis Ababa, with connectivity coming soon to four more cities.
"We recognize that network quality remains crucial as data consumption rises exponentially each year. Our investments in expanding 4G footprint and introducing 5G will help ensure citizens and businesses experience seamless connectivity to access digital opportunities," said Frehiwot.
The number of telecom service subscriptions rose from 71.9 million to 78.3 million.
Adoption of digital services like Telebirr has helped spur margins higher too. The company reported achieving 102.4 percent of its plan by recording EBITDA of 42.44 billion Birr or a gross profit margin of 47 percent.
"We expect to see margin improvement continue," said Frehiwot.
Safaricom has been rapidly expanding infrastructure and offers relatively affordable data plans and strong internet connections, with its number of subscribers reaching four million. It reported a 6.2 percent rise in annual revenue to 12.3 billion birr for the year ended March.
Powering much of the boom in consumer digital services has been Telebirr, Ethio Telecom’s fintech arm. It has emerged as one of the largest mobile money platforms on the continent after being launched nationally in 2021, commanding 46 percent of the mobile money market in Ethiopia.
In the fiscal year alone, it facilitated a record 9.35 billion birr (US$161 million) in micro-loans disbursed to 2.9 million borrowers. Savings balances hit 9.72 billion birr for 1.3 million savers.
Cash deposits onto the platform more than doubled to surpass 210 billion birr for the period. Telebirr has now processed 325 billion birr through its 216,000-strong agent network since operations began.
Integration with 28 commercial banks enables seamless person-to-person money transfers of 436 billion birr between digital wallets and accounts annually. The amount shows how much are moved from Telebirr into Ethiopians' bank deposits and vice versa each year.