Ethio Telecom Posts 33% Revenue Growth Amid Market Transition and Structural Constraints
Ethio Telecom reported a 33.2% increase in annual revenue to 215.82 billion Birr for the 2025/26 fiscal year, driven by a milestone shift as mobile data overtook traditional voice as its primary income source. However, beneath the strong headline figures lies a more complex picture marked by revised operational targets, modest telebirr revenue contributions, and persistent foreign exchange constraints.
State-owned operator Ethio Telecom has closed its 2025/26 fiscal year with strong headline financial results, generating 215.82 billion Birr in total revenue—a 33.2% year-on-year increase that met 99.7% of its annual financial target. The performance was highlighted by an operational milestone: for the first time in the operator's history, data and internet services became the single largest revenue stream at 31.1% of total income, officially surpassing mobile voice services (23.5%). Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged 51.9% to 38.7 billion Birr, underscoring solid short-term profitability.
Despite the strong top-line numbers, the context behind the performance reveals a more nuanced picture. Industry analysts note that much of the apparent outperformance came against targets that had been revised downward during the period, softening the operational weight of the results. Furthermore, key growth metrics fell short of initial strategic projections. Active mobile data subscribers reached 51.53 million—achieving only 91% of the company's 56.63 million target—while smartphone adoption remained at 45.2%, leaving over half of the user base without regular broadband access.
The company's flagship digital financial platform, telebirr, continued its user expansion, growing to 60.6 million registered customers and processing 4.19 trillion Birr in total transaction value over the year. However, its financial contribution to the parent company remains minor, generating just 3.6% of total corporate revenue. Broader digital transaction volumes across Ethiopia also continue to be heavily dominated by conventional banking institutions, highlighting telebirr's early-stage monetization relative to its operational scale.
Adding to these operational friction points is an ongoing foreign currency shortage that limits foreign currency earnings and infrastructure expansion capabilities. While foreign currency revenues reached $188.5 million, foreign exchange constraints continue to pose headwinds for international capital expenditure requirements and technology imports. Overall, while Ethio Telecom delivered a solid financial year on paper, the underlying figures reflect a company navigating structural transition, market re-adjustment, and systemic economic boundaries.
Source: Ethio Telecom 2025/26 Annual Performance Report / StockMarket.et