Hidasie Telecom Share Company declared a net profit of 86.5 million Br for the recently ended fiscal year.
Established five years ago, the company is engaged in the distribution of telecom products through over 800 outlets.
It generated 370 million Br of revenue from sales and services including commission earned and interest earned on deposits. The figure is 37.7pc higher than the preceding fiscal year.
Mobile prepaid cards, sim cards, bill collection, vehicle maintenance and sales of mobile apparatus are among the product distributed by Hidasie.
On the other hand, expenses grew by 33pc to 258 million Br. The surge was justified by a rise in operational expense due to increase in general administrative expense and salary by 48pc and 27pc, respectively, the company said.
“Even if sales and services showed a growing trend, we faced some difficulty in settling payments on time,” said Tadesse Asffaw, Managing Director of Hidasie.
With the exception of mobile apparatus sales, the company has shown an average growth of 59pc in all income generating activities.
“The price war was started by competitors who slashed prices last year”, said Hidasie’s board chairman Daniel Kebede.
Hidasie hired 1,454 employees last year, and has a total of 3591 employees.
The company was founded by more than 2,500 shareholders with a support from the government and ethio telecom.
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