Ethio Telecom Profit Jumps as Data Revenue Overtakes Voice, Marking Historic Digital Shift - IT News Africa - African Business Technology News
Ethiopia’s national telecommunications operator Ethio telecom reported a sharp increase in annual earnings on Thursday as mobile data and internet services overtook traditional voice calls as its largest. . .
Ethiopia’s national telecommunications operator Ethio telecom reported a sharp increase in annual earnings on Thursday as mobile data and internet services overtook traditional voice calls as its largest source of revenue, marking a historic shift in the company’s business model and highlighting the country’s accelerating digital adoption. Presenting Ethio telecom’s 2025/26 annual business performance report at the Ethiopian Science Museum in Addis Ababa, Chief Executive OfficerFrehiwot Tamrusaid the operator generated215. 82 billion birrin revenue during the fiscal year ended June, up 33. 2% from the previous year, while EBITDA rose 51. 9% to38. 7 billion birrand operating profit increased 47. 5% to30 billion birr. According to Frehiwot, data and internet services accounted for31. 1% of total revenue, surpassing mobile voice services, which contributed23. 5%, a milestone that reflects a fundamental change in customer behaviour after voice had remained the company’s leading source of income for more than a century. The company said the crossover demonstrates growing digital adoption across Ethiopia as consumers increasingly use mobile broadband, digital platforms and enterprise services. “The rapid expansion of data services enabled data revenue to surpass voice as the major revenue stream,” Frehiwot said during the presentation, according to the company’s annual performance report, describing the development as evidence of both rising customer demand for digital services and Ethio telecom’s broader transformation from a traditional telecommunications operator into a technology-focused digital services provider. The results underscore the pace of Ethiopia’s digital transformation as Africa’s second-most populous country expands broadband infrastructure, digital financial services and cloud-based technologies under its Digital Ethiopia 2030 strategy. According to Frehiwot, Ethio telecom ended the fiscal year with90. 12 million customers, including51. 53 million active mobile data users, while fixed broadband subscriptions surpassed one million for the first time. Frehiwot said the company continued to invest heavily in network expansion during the year, deploying603 new mobile sites, extending 4G coverage to1,200 towns, increasing 4G population coverage to82. 23%, and expanding commercial 5G services to33 cities. The investments, she said, are intended to support rising demand for high-speed connectivity while enabling smart cities, e-government, digital commerce and financial technology services. Digital financial services remained another major driver of growth. According to Frehiwot, telebirr reached60. 6 million registered customersand processed2. 61 billion transactionsworth4. 19 trillion birrduring the fiscal year, while integration with33 banks, microfinance institutions and savings cooperativesexpanded interoperability across Ethiopia’s financial system. International operations generatedUS$139. 9 millionin telecommunications service revenue, contributing to total foreign currency earnings ofUS$188. 48 million, while the company continued advancing its regional expansion strategy through initiatives such as the Horizon Fiber cross-border connectivity project. Despite the strong performance, Frehiwot said the company continues to face challenges including inflation, foreign exchange shortages, rising energy costs, supply-chain disruptions and infrastructure vandalism. Even so, she said Ethio telecom’s first year under its “Next Horizon: Digital & Beyond 2028” strategy demonstrates the company’s transition from a traditional telecom operator into a broader technology company built around connectivity, cloud computing, enterprise solutions, artificial intelligence and digital financial services. //Staff writer