Ethio Telecom CEO Latute Hangs it Up
By HAGEZOM MEKONNEN
(Fortune) – Ethio telecom has secured record high total revenue of 12.35 billion Br during the just ended fiscal year, announced Jean Micheal Latute, CEO of the company, at Hilton Hotel on September 14, a day before he stepped down from the company which he ran at the helm for the past 21 months.
Having been granted his early retirement request, Latute has handed over the reins to Bruno Duthoit, who will be coming in with 21 years of experience at France Telecom, according to Abdurahim Ahmed, External Communication Officer with Ethio-telecom.
Latute had been managing the former Ethiopian Telecommunications Corporation (ETC), since his company France Telecom took over management of the state owned telecommunication services provider in December 2010 and rebranded it as ethio-telecom.
France telecom is a multinational telecommunications corporation, based in France. It is the second largest telecommunications company in the world. It provides mobile, landline and Internet businesses through its brand Orange.
Incoming CEO, Bruno Duthoit, was previously the CEO for the Orange brand in Armenia and Moldavia and a board member in Poland.
Latute’s early retirement comes a little over three months before the original contract with ethio-telecom expires.
Recently, however, there had been reports that the contract will be extended. While, Abdurahim has confirmed to Fortune that the contract is extended by six months, the retired CEO has hinted that there is a possibility of extension in an interview he had recently given on international media.
Ethio Telecom hopes to raise the number of mobile phone subscriptions from 6.5 million to 50 million, mobile telephone coverage from 8.7pc to 45pc, the number of Internet subscribers from 187,000 to five million, and wireless telecom service coverage from less than 50pc to 90pc by the end of the 2014/15.
Last year’s achievement of the company is lower than the previous year. In 2010/11 ethio teleco’s revenue earnings of 8.8 billion Br, only fell short by 11pc from the target unlike 2011/12 when the company achieved 70.5pc of its plan.
Out of the total revenue earned this year, 8.87 billion Br is gained from Earnings before Interest, depreciation and amortization and Tax.
“The income increase from last year was mainly gained from the new distribution strategy implemented to achieve products and services availability and sales,” Latute told reporters during the announcement of his company performance.
Mobile revenue accounted for 66.6pc of the income, followed by international service revenue which accounts for 22.4pc according to him.
During the last fiscal year, more than 1.4 billion birr sales revenue has been collected from vouchers and 17.3 million Mobile SIM cards were sold, he adds. Ethio-telecom had planned to get 10 million new mobile customers for the 2011/12 fiscal year. The number of SIM and voucher cards wholesale distributers has increased to 45 and the retailers to 34 thousand throughout the country.
As of June 2012, the company’s total subscribers has reached 18.3 million, the management told reporters at the press conference.
There are an average of 450,000 new mobile clients monthly over the year, 805,000 fixed line users, 221,000 internet and data subscribers, and 2.44 mobile service internet users in the country, according to the management’s report.