MTN Rwandacell Plc (MTN Rwanda) has released its unaudited financial results for the nine months ending September 30, 2024, showing steady revenue growth in key areas despite an overall challenging operating environment. The company reported a 1.6% increase in service revenue to Rwf 189.3 billion, driven by significant gains in Mobile Money and Enterprise services, which helped offset declines in voice and data revenue.
The mobile subscriber base saw a 5.3% year-on-year increase, reaching 7.6 million, with the addition of 382,000 new subscribers. Mobile Money (MoMo) services showed strong growth, with active subscribers rising by 13.4% to 5.2 million, underscoring the growing demand for mobile financial services in Rwanda. However, active data subscribers decreased by 10.3% year-on-year to 2.3 million, reflecting the competitive pressures in the data market.
Service revenue from MTN Rwanda’s Mobile Money segment surged by 29.4%, driven by increased adoption of advanced services and a 58.3% increase in the active merchant base, now at 451,000. The Enterprise Business segment also performed well, with a 37.5% rise in service revenues, benefiting from stable subscriber growth and demand for both mobile and fixed data services.
In the home broadband market, MTN Rwanda reported a 25.3% growth in subscriptions and a 43.4% increase in revenue, demonstrating its commitment to expanding fixed broadband access across the nation.
Despite the successes in Mobile Money and Enterprise, MTN Rwanda faced notable revenue declines in other areas:
•Voice Revenue: Fell by Rwf 14.4 billion, representing a 21.4% year-on-year drop, due to the regulatory impact of the Zero Mobile Termination Rate (MTR).
•Data Revenue: Declined by Rwf 1.2 billion, a 1.9% year-on-year decrease, as competitive pressures affected data uptake.
These revenue decreases contributed to a 22.5% drop in Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), which stood at Rwf 65.7 billion with an EBITDA margin of 34.0%. The decline in EBITDA was compounded by higher interconnect costs related to permanent roamers in the One Network Area (ONA) and the depreciation of the local currency against the dollar. Consequently, profit after tax plummeted by Rwf 15.6 billion, resulting in a net loss of Rwf 10.9 billion or a 232.4% year-on-year decline.
Mapula Bodibe, MTN Rwanda’s Chief Executive Officer, highlighted the company’s commitment to growth despite the financial challenges. “Despite the headwinds, MTN Rwanda has demonstrated resilience and a commitment to delivering best-in-class connectivity and digital services. Our strategic focus on financial inclusion and alignment with government initiatives continues to make a meaningful impact on the Rwandan economy,” said Bodibe. “As we look ahead, we remain dedicated to expanding Rwanda’s digital journey and strengthening our fintech offerings to foster financial inclusion nationwide.”
In line with its strategic priorities, MTN Rwanda reported a capital expenditure of Rwf 34.8 billion, an 18.9% year-on-year decrease following accelerated investments in network modernization during the first half of 2024. Network upgrades completed in Kigali have resulted in a more intelligent, agile, and connected infrastructure, enhancing the digital experience for customers across Rwanda.
MTN Rwanda continues to support community initiatives, contributing to the Imbuto Foundation’s ‘Edified Generation Program’ and pledging Rwf 30 million to the #DusangireLunch campaign for school meals. Additionally, the company recently celebrated the graduation of young professionals from the MTN Group Global Graduate Program, building a workforce equipped for Rwanda’s growing digital economy.
Looking ahead, MTN Rwanda remains focused on driving service revenue growth, operational efficiencies, and strengthening its balance sheet. The company anticipates a positive regulatory outcome on Zero MTR, which could further stabilize its financial performance. “Our strong subscriber growth and commitment to digital inclusion will continue to support Rwanda’s economic progress and deliver long-term value for our shareholders,” added Bodibe.
With a solid strategy in place, MTN Rwanda is set to enhance its service offerings and bolster its contributions to the nation’s digital transformation, ensuring sustainable growth and value for its stakeholders.
