More Africa NewsEthio Telecom Q1 revenue falls 12% short of target because of conflict

November 18, 2021by myles0
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Ethio Telecom lost ETB 1.9 billion in revenue due to the conflict in the northern part of the country and as a result, its revenue for Q1 of the 2021/22 Ethiopian fiscal year fell 12 percent short of its planned ETB 15.4 billion, reports The Reporter. Gross profit amounted to ETB 5.9 billion, which is ETB 1.1 billion beyond its plan for the quarter. Its foreign currency revenue plan from international services stood at 90 percent of the USD 34 million targets.

Though its subscribers rose from 9.8 million to 10.8 million and facilitated transactions worth ETB 2.1 billion, the mobile money service TeleBirr did not start to generate profit. The enterprise sustained major destructions to its infrastructure in the stated regions, apart from losing a portion of its market in the war-inflicted areas. These impacts are forecast to affect Ethio Telecom’s plan to gear up for competition expected from international players.

Currently, Ethio Telecom and Safaricom are negotiating the lease of infrastructure. 

Source: Telecompaper.com

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