Ethio Telecom’s Profit Jump Shows Ethiopia’s Phone Boom

Ethiopia’s state-owned Ethio Telecom reported a sharp leap in profitability, powered by continued growth in mobile subscribers and rapid adoption of its mobile-money service, Telebirr.

The company said earnings before interest and taxes (EBIT) rose 47.5% to 92.9 billion birr for the year ended June, on revenue of 215.8 billion birr. CEO Frehiwot Tamiru credited the stronger results to a larger customer base and deeper engagement across services. Overall subscribers climbed 8.3% to 90.12 million, while Telebirr users increased 16.4% to 60.6 million.

Why it matters

The performance underscores Ethiopia’s accelerating demand for connectivity and digital financial services. Stronger profitability and user growth could bolster the company’s outlook as the government pursues plans to open the economy and partially privatize the operator. Robust metrics may help support valuation prospects, attract investors, and fund continued network expansion and digital service innovation.

By the numbers

• EBIT: 92.9 billion birr, up 47.5% year over year
• Revenue: 215.8 billion birr
• Total subscribers: 90.12 million, up 8.3%
• Telebirr users: 60.6 million, up 16.4%

What’s driving the gains

• Scale effects: A larger customer base improves operating leverage as fixed network costs are spread across more users.
• Service diversification: Growth in Telebirr suggests rising adoption of mobile-money services, adding new revenue streams and deepening customer relationships.
• Network reach: Expanding coverage and improved service quality likely supported both subscriber additions and higher usage.

The bigger picture

Ethiopia has been moving to liberalize and modernize its telecom sector as part of broader economic reforms. Ethio Telecom’s momentum arrives amid those efforts, with performance indicators that may help underpin future investment and competitiveness. A previous attempt to sell a stake in the operator reportedly saw limited uptake, but healthier results now could strengthen confidence in the company’s trajectory.

What to watch

• Investment in infrastructure: Continued upgrades in 4G and expansion of coverage to underserved regions.
• Digital services growth: Further integration of Telebirr into everyday commerce and public services.
• Market dynamics: Potential competitive shifts as the sector opens and as private capital enters.
• Customer experience: Improvements in network reliability, pricing, and product bundles to retain and grow the user base.

Ethio Telecom’s latest numbers point to a market embracing both broader connectivity and digital finance at scale. If the momentum holds, it could mark a turning point for Ethiopia’s telecom landscape—supporting economic activity, improving inclusion, and setting the stage for the next phase of sector reform.