Ethio Telecom Posts 85 Billion Birr Revenue as Forex Inflows Reach 88 Million Dollars in Six Months.

Ethio Telecom has reported strong financial and operational performance in the first half of the 2025/26 fiscal year, generating ETB 85.02 billion in revenue and securing USD 88.19 million in foreign exchange earnings, underscoring its growing role in Ethiopia’s digital economy and foreign currency inflow landscape.

The results cover the period from July to December 2025, the opening half of the company’s new “Next Horizon: Digital & Beyond 2028” strategy year. Revenue grew by 37% year-on-year, although performance reached 81.1% of plan, reflecting the continued impact of foreign currency shortages and broader macroeconomic constraints.

Revenue Performance and Profitability

Rising customer numbers, increased data usage, network expansion, and the scaling of digital and enterprise services drove Ethio Telecom’s income growth. By revenue composition, voice services accounted for 30.4%, followed by data and internet services at 28.3%. International services and value-added services each contributed 9.7%, while Telebirr accounted for 4.9% of total revenue. Enterprise solutions contributed 4%, with the remainder generated from infrastructure leasing, equipment sales, and other services.

During the six months, the company recorded an EBITDA of ETB 42.36 billion, translating into a gross profit margin of 49.8%. Ethio Telecom also paid ETB 35.6 billion in taxes, reaffirming its position as one of the largest contributors to public revenue.

Foreign Exchange Generation and External Earnings

Foreign currency generation remained a strategic priority amid persistent forex shortages in the economy. Ethio Telecom earned a total of USD 88.19 million during the reporting period, achieving 83% of its forex generation target.

Of this amount, USD 69 million was generated from international telecom services, USD 3.16 million from infrastructure sharing and rental agreements, and more than USD 16 million from Telebirr’s international remittance services. International service revenue increased by 7.2% year-on-year, reflecting growing inbound traffic and cross-border service demand.

In parallel, the company expanded local internet caching capacity, allowing more data traffic to be retained within the country. This reduced reliance on international bandwidth purchases and helped conserve foreign currency, while total international gateway capacity reached 3 terabits per second.

Telebirr Strengthens Digital Finance and Banking Linkages

Telebirr continued to expand its footprint as a key digital financial platform. During the first half of the fiscal year, the service generated ETB 4.1 billion in revenue, achieving 109.1% of its target. Higher transaction volumes, service fee revisions, stronger institutional integration, and a growing user base supported revenue growth.

The number of Telebirr users rose to 58.61 million, following the addition of 4.69 million new subscribers in six months. Transaction volumes reached ETB 1.94 trillion during the period, bringing cumulative transactions since launch to ETB 6.88 trillion.

Telebirr also expanded its role in digital financial inclusion. In collaboration with banks, 4.27 million users accessed ETB 8.62 billion in microloans, while 1.24 million users saved more than ETB 8.68 billion through the platform. Integration with 30 commercial banks has enabled seamless bank-to-Telebirr and Telebirr-to-bank transfers, strengthening interoperability within the financial system.

Customer Growth and Network Expansion

Ethio Telecom’s total customer base reached 87.1 million, exceeding plan targets. Mobile data users grew to 49 million, while fixed broadband subscriptions increased by 19.2% to 934,700, reflecting rising demand for high-speed connectivity.

Network expansion remained central to performance. During the six months, 278 new mobile sites were deployed, nearly half in rural areas, bringing the total number of sites to 10,288. The company expanded 4G LTE services to 133 additional towns, pushing population coverage to 74%, a key enabler for digital finance and e-government services.

Cost Management and Financial Discipline

Through its DO2SAVE cost-efficiency program, Ethio Telecom achieved ETB 4.15 billion in cost savings, exceeding its target by 29%. Additional non-core income of ETB 89.9 million was generated from asset disposals and space rentals.

The company prepares its financial statements in line with International Financial Reporting Standards (IFRS) and continues to monitor daily revenue, cash flow, and customer metrics to maintain financial sustainability.

Strategic and Macroeconomic Significance

Aligned with the national Digital Ethiopia 2030 agenda, Ethio Telecom is increasingly positioning itself as a digital platform and financial services enabler rather than a traditional telecom operator. Its expanding role in foreign exchange generation, digital payments, and financial inclusion places the company at the intersection of telecommunications, banking, and macroeconomic stability.

Despite ongoing challenges related to foreign currency availability, infrastructure damage, and security issues, Ethio Telecom reaffirmed its commitment to sustaining revenue growth, strengthening forex inflows, and supporting Ethiopia’s broader digital and economic transformation.