የ 227ቱ ገጽ ጭማቂ
Concise summary of the Ethio Telecom Share Sale Prospectus:
Company Overview:
🇪🇹 Ethio Telecom is one of the oldest telecom providers in Africa, dominating the Ethiopian market with 94.5% market share and a subscriber base of 78.3 million as of June 2024.
🇪🇹The company operates across three main segments:
1. Telecoms (mobile, fixed voice, data, and internet) – the core business.
2. Infrastructure Sharing – sharing telecom infrastructure with companies like Safaricom.
3. Mobile Financial Services (Telebirr) – a rapidly growing mobile money service.
🇪🇹 Financial Highlights:
• Revenue Growth:
• 2024: ETB 91.4 billion (up from ETB 71.5 billion in 2023).
Strong growth driven by mobile services, Telebirr, and infrastructure sharing.
• Profitability:
• 2024 Net Profit: ETB 19 billion (doubled from ETB 9 billion in 2022).
• EPS: ETB 19.01 per share.
• EBITDA: ETB 41.2 billion in 2024, showing strong operational profitability.
🇪🇹 Key Strengths:
• Dominant Market Position: With nearly complete market coverage, the company is positioned as a critical player in Ethiopia’s telecom market.
• Telebirr Growth: Telebirr, with over 47.5 million users, has grown rapidly, showing significant potential in mobile financial services.
• 5G Expansion: The company is investing in future technologies, with 5G rolled out in 5 cities and further plans for expansion.
🇪🇹 Risks:
• Increased Competition: Safaricom’s entry into Ethiopia has already captured 5.5% of the market, with potential new entrants increasing competitive pressure.
• Foreign Exchange Exposure: With the Birr’s depreciation, Ethio Telecom faces higher costs for foreign-denominated contracts, impacting profitability.
• Regulatory Risks: Changes in licensing, taxation, or telecom regulation could impact operations.
🇪🇹 Share Offering:
• Offer: 100,000,000 ordinary shares at ETB 300 per share (raising ETB 30 billion).
• Target: Ethiopian citizens only, via the Telebirr platform.
• Minimum Investment: ETB 9,900 (33 shares).
• Lock-in Period: Shares cannot be sold or traded until the planned listing on the Ethiopian Securities Exchange (ESX), which is expected within 12 months.
Investment Considerations:
• Strong Market Position and growth potential in telecom and mobile financial services.
• Risks include growing competition, currency fluctuation, and political/economic instability in Ethiopia.
• Long-term hold due to the lock-in period and potential for capital appreciation once the ESX listing happens.
This is a general overview.
(Abdulkadir Hajj Nureddin)