Strong growth in Viettel Burundi profit (Lumitel) in 2018

Lumitel - Africa market that sets a record to takes revenue to offset the operating expense in the fastest time.

Among 10 international markets Viettel is trading, Burundi is the market where Viettel has reached the number 1 position with the fastest speed in the history, only after 7 months. In addition to becoming the largest telecom company, Lumitel sets a record as the unit to takes revenue to offset the operating expense in the fastest time, after 3 months since its opening. 

Lumitel had EBITDA Margin up to 54%, ranking the second among 10 international markets of Viettel. 54% is also the current number of telecom market shares of Lumitel brand in Burundi, occupying the No. 1 position.

At the end of 2018, Lumitel achieved pre-tax profit of over USD 7.3 million, showing an increase by 225% compared to 2017. In 2018 alone, there were an increase by 278,000 in the number of subscribers - showing the highest figure in the last 3 years (264,000 in 2017 and 239,000 in 2016) and the third consecutive year Lumitel occupies 70% of the new subscriber market share in Burundi.

As shared by Viettel Burundi CEO, Mr. Nguyen Huy Tan, in 2019, Lumitel set a goal of becoming a leading company in digital services, transmission channels and digital payment.

Lumitel's Lumicash e-wallet, started to be offered in September 2016, seems to be hardly developed in a poor country like Burundi while competitors have been ahead up to 3 years. But by the end of 2018, there were an increased by 4 times in the number of new subscribers of Lumicash e-wallet compared to 2017, bringing the total number of customers to 320,000, accounting for 47% of the electronic wallet market share in Burundi, occupying the position. No. 1. In particular, Lumicash service is now profitable.

Currently, Burundi is the market where Viettel has the best urban subscription rate in Africa with 39% of the total number of subscribers. Although this is a very poor market, Lumitel's rate of subscribers with ARPU over USD 5/month is up to 34.6% of total subscribers, representing the highest rate among Viettel's African markets. 

As said by Mr. Nguyen Huy Tan, General Director of Lumitel (Viettel Burundi), Viettel's services must meet the demand of super cheap prices and optimal operation to achieve business efficiency because Burundi people are still very poor. 

Lumicash e-wallet leads the electronic payment market of Burundi thanks to the "tailor-made" design to the needs of customers.

Lumitel has ultimately found a solution to meet both requirements. "For example, Lumicash e-wallet service helps Burundi people pay taxes, fees and charges, electricity and water bills, etc., via mobile phones thanks to features specifically designed on 2G network USSD platform for the market".

Burundi is also the first international market of Viettel in the world to provide unlimited internal messaging package with a feature phone with the cost equivalent to only VND 500/day.

“However, we operate Lumitel in Burundi not only for revenue-generating, but also contribute to promoting socio-economic development as well as building international relations between the two countries in order to create a beautiful image of Vietnam in this country”, said by Mr. Nguyen Huy Tan.

These successes are considered the foundation for Viettel to believe that Lumitel will continue to lead in digital transformation in the East African nation as Burundi. In the coming time, Lumitel has set to become a leading company in digital services, transmission channels and digital payment.