Ethio Telecom Summary Performance Report for the first half of the fiscal year 2013.
This report outlines Ethio Telecom’s six-month performance from July 2020 to December 2020.
Ethio Telecom has been working hard to implement the three year strategy and the 2020 fiscal year plan at the beginning of the fiscal year and to make the company more attractive to its customers, employees and partners.
Extensive changes and improvements have been made to achieve the strategic goals set for the fiscal year, with a wide range of preparation activities taking into account the upcoming competitive market, enhancing customer experience and satisfaction, operational excellence, large-scale projects to improve service access and quality, and customer capacity building. To do, a lot of work has been done to increase the network capacity to meet the demand for telecom services, to create new services for business and technology, to improve the use of resources and to develop financial capacity, to carry out landscaping work, to implement and execute our staff and management, and to develop decision-making capacity and skills.
The Council of Ministers has amended its regulatory framework to expand the scope of our company’s service, ensure its competitiveness and sustainable growth, which will increase the company’s capital to 400 billion birr, allow it to participate in the mobile finance sector and related digital financial services.
It also allows Ethio Telecom to carry out other related activities, including the establishment of a business that will enable it to participate in other investment sectors at the national and international levels. Our company is in the process of launching Mobile Money.
In addition, a total of 137 projects are underway to expand the network coverage and capacity, as well as to generate additional revenue and improve the quality of services by expanding and strengthening our heavily invested infrastructure.
He was hired by KPMG, a global consulting firm, to conduct asset valuation operations, which have grown by 42 percent following the IFRS accounting system.
In the first half of the budget year, our company earned a total of 25.57 billion birr and achieved 95% of the plan. This result has increased by 12.3% compared to the same period of the previous fiscal year.
It has registered 21 new and 18 existing domestic and international products and services to meet the needs of the customers. Revenue generated by mobile type accounted for 49% of mobile voice data, 26.3% of data and internet, 10.3% of international calls, 11% of value added services and 3.4% of other services.
It earned 105.3% of the target, earning US $ 80.21 million from foreign exchange earnings, up 5.9% from the same period last year. This result can be attributed to the implementation of new sources of revenue and the prevention of telecom scams through various strategies, with a special focus on institutional security, and extensive efforts to improve and strengthen relations with our international business partners.
In the first half of the budget year alone, the company was able to fulfill its expected economic contribution by earning 16.24 billion birr in taxes and 500 million dividends. In addition, it has maintained good relations and trust with its partners by repaying 4.7 billion birr ($ 126.14 million) in loans for projects under Vender Financial Modeling.
The number of our customers has reached 50.7 million, an increase of 11.2% compared to the same period last year. In terms of services, the number of mobile voice subscribers is 48.9 million, the number of regular broadband subscribers is 309.4 thousand, the number of regular telephone subscribers is 981 thousand and the number of data and internet users is 23.54 million. As a result, 95% of the total coverage of the mobile network and 85.4% of the total coverage of telecom has reached 50%.
In order to ensure the continuous growth of our company, 8,441 employees have been trained through various training programs in terms of building the workforce with knowledge, skills and good work culture. Efforts have been made to increase employee motivation and ownership, for example by involving employees in the organization’s strategy and performance appraisal, improving the supply of tools, ensuring a comfortable working environment, and implementing a variety of incentives to create a better work environment.
Our company has created income and employment opportunities for more than 310,000 citizens. These include more than 285,000 customers who provide our company’s products and services to our customers, including permanent and temporary employees, as well as our business partners who provide various services to our company. During the first half of the budget year, the number of citizens engaged in telecom-related activities reached more than 25,000.
Our company is fulfilling its social responsibility by participating in various national issues that are beneficial to our community and has contributed more than 322.35 million birr in kind, service and money in the first half of the year. He has been involved in health, environmental protection, green development and beautification throughout the country. In addition, our staff has done a very encouraging and exemplary work with a voluntary contribution of 3.03 million birr in financial and material support as well as blood donation and voluntary service.
Due to the significant impact of the telecom service on the community during the CVD-19 epidemic, extensive awareness campaigns, protective equipment and transportation services were provided to ensure that the service was not disrupted and that our employees were not exposed to CVD-19. In the case of the cholera epidemic, there is a huge discount on telecom services to enable the community to do their homework and carry out their daily activities while maintaining social distance.
In addition, it has provided 16 million birr for research into the fight against cholera virus, to raise public awareness, to use telephone calls to spread cholera epidemic messages, to provide free information on the website of the Ministry of Health and the Institute of Public Health, and to provide fundraising options for those in need. Performed such tasks.
Our company has faced challenges for the past half year, from June 22 to July 15, 2020 due to security concerns throughout the country, power outages in the northern part of the country since October 24, 2020, theft and disruption of fiber and copper lines, attacks on facilities and staff. Interruptions are a major concern, and cholera outbreaks have become a challenge for the facility.
Overall, the half-year performance of our company, especially in light of the ongoing cholera epidemic in the world and in our country, and the security situation in some parts of the country at that time, make it a great success. Our company has achieved this result due to the strong commitment of the management and staff of the company to make the company attractive to its customers and partners, as well as their coordinated efforts to successfully achieve their goals.
Finally, we would like to thank our customers, partners and stakeholders for the remarkable performance.
January 21, 2020