MTN Rwandacell PLC (MTN Rwanda) has released unaudited financial results for the six months ended 30 June 2022 through the Rwanda Stock Exchange. The company registered a 20.4% increase in total revenue to Rwf106.3 billion.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 17.8% to Rwf 52.5 billion, with an EBITDA margin of 49.3%, but with a capital expenditure (capex, IAS 17) increase by 56.0% to Rwf 28.8 billion.
The firm said its profit after Tax (PAT) decreased by 31.5% to Rwf9 billion, as the business continues to amortize its operating license that was renewed in 2021.
Its customer base increased by 1.7% year-on-year (YoY) to 6.6 million, growing its’ leadership in customer market share by 2.7 percentage points (pp) to 65.6%. Active data and mobile money subscribers also grew by 23.9% and 9.1% respectively.
Commenting on this business growth, Chief Executive Officer of MTN Rwanda, Mitwa Ng’ambi, said “We are pleased to present our half year results to our shareholders. We have continued diligent execution of our Ambition 2025 strategy which has yielded these positive results. Leading in connectivity, has been of great focus for us in the first half of the year, where we invested Rwf 28.8 billion in technology, including the roll out of 57 new sites across the country. Transformation of our distribution footprint and product offerings has also contributed greatly to the commercial momentum that the business has experienced. Voice, data and mobile money have performed particularly well and our engagement in various Environmental, Social and Governance initiatives has further cemented our commitment to the communities we serve.”
MTN Rwanda’s key revenue streams, voice, data and fintech increased by 7.1%, 14.6% and 52.4% YoY respectively. The voice and data results are mainly attributed to a rise in strategic customer value management campaigns, increased active data subscribers and usage.
The company’s financial report is a consolidation of both MTN Rwanda and its subsidiary company, Mobile Money Rwanda Ltd (MMRL). In driving the company’s platform strategy, MMRL made encouraging strides in H1, growing the volume of transactions by 38.3% YoY and the value of transaction by 22.8%, while volume of merchant transactions also grew by 36.4% YoY.
MMRL continues to drive growth in the mobile financial services sector with a focus on advanced services in line with the Ambition 2025 strategy.
A sustainable approach to business growth has been the focus of MTN Rwanda Chief Finance Officer, Mark Nkurunziza who said “MTN Rwanda’s dual focus on top line revenue growth as well as cost efficiencies resulted in our Earnings Before interest tax and depreciation and amortization (EBITDA) growing by 17.8%. While our contribution to the Community Health insurance scheme increased from 2.5% to 3.0% of turnover in 2022, and an increase in 4G uptake resulted in a higher data cost of sales, we are pleased to have closed the period with an EBITDA margin of 49.3%. This margin has grown by 8 percentage points over the last 3 years, and we’re encouraged by the strides we have made thus far”.
As part of its Environmental and Corporate Social Responsibility efforts, MTN Rwanda saw to the implementation of several initiatives in the first half of the year. The most notable being the introduction of solar power in the main data centre, further advocacy for the adoption of green energy solutions by donating solar panels to 700 families through the Cana Challenge and with the annual staff community service initiative, 21 days of Yello Care, conducted digital skills training for students at Agahozo Shalom Youth Village.
In the remainder of the year, the focus remains primarily on the expansion of connectivity for full population coverage in the near term and diversification of Mobile Money products to unlock new opportunities with a focus on advanced services. It also remains the company’s focus to drive for cost efficiencies to sustain healthy margins and continue to invest in capacity to meet its commitments to customers and stakeholders alike.
As this was the last time that Mitwa Ng’ambi would present results to the shareholder community following her appointment as CEO of MTN Cameroon, effective 1 September 2022, she concluded by saying, “It has been a great pleasure serving the people of Rwanda as CEO of MTN. I am immensely grateful to have worked with such an amazing team and also to have received great support from the Government of Rwanda. I would also like to thank the Board of Directors and various stakeholders who have had a hand in our success over the years. I wish my successor, Ms Bodibe and the entire MTN Rwanda team nothing but the best, as they continue to lead digital solutions for Rwanda’s progress”.