Military conflict forces Ethio Telecom revenue miss

Military conflict forces Ethio Telecom revenue miss

Ethiopia state-owned operator Ethio Telecom missed its H1 revenue target by 13.6% due to ongoing military conflict in the country.

The operator racked up a total of ETB28 billion ($561bn) in the period between July 1 to December 31 which is 86.4% of its target, but it pointed out this is a year-on-year increase by 6.7%.  

Due to the ongoing military conflict, the operator 3,473 base transceiver stations were not functioning and resulting in a revenue loss of ETB3.67 billion. The country’s Tigray region is where the conflict is mainly situated rendering the operator unable to provide its services there or check the status of its infrastructure in the region.

Ethio Telecom’s customer base now stands at 60.8 million which is a 20% increase from last year and achieves the company’s subscriber base target.

Mobile voice subscribers reached 58.7 million, data and internet users 23.8 Million, fixed services 923,000 and fixed broadband subscribers reached 443,000, and telecom density reached 58.5%.

The company’s Telebirr mobile money which launched in May last year amassing 13 million subscribers and a total transaction value of ETB 5.1 billion.

The company said in a statement: “Our company’s semi-annual performance for the 2021/22 budget year is remarkable given the challenges posed by COVID-19 and the security issues in some parts of our country.

“This achievement is only made possible because of the commitment of our company’s leadership and employees to make Ethio telecom a preferred operator on top of running the business, the leadership team’s stamina and concerted effort in managing the operation and projects.”

Safaricom is poised to become Ethiopia’s second operator and first major completion for Ethio Telecom’s. Plans for a third operator was canned by regulators this month as requested by prospective bidders for the third licence, citing "concerns".

Ethiopia is seen as one of the last few underserved telecoms markets with a population of 115 million people.

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