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MTN Rwanda Reports Stable Revenue and Subscriber Growth Amidst Challenging Economic Conditions

November 6, 2024
4 min read
Author: Aayushya Ranjan

MTN Rwandacell Plc (MTN Rwanda) has announced its unaudited financial results for the nine months ended 30 September 2024, reporting stable revenues and sustained subscriber growth despite a challenging operating environment.

During this period, MTN Rwanda’s mobile subscriber base increased by 5.3% year-on-year, reaching 7.6 million, with the addition of 382,000 subscribers, demonstrating the continued demand for our services in the market. Active Mobile Money (MoMo) subscribers grew by an impressive 13.4% year-on-year (YoY) to 5.2 million. In contrast, active data subscribers declined by 10.3% YoY to 2.3 million.

Service revenue rose by 1.6% to Rwf 189.3 billion, supported by strong growth in the Mobile Money and Enterprise segments. This growth partially offset declines in voice revenue, which dropped by 21.4% due to the impact of the Zero Mobile Termination Rate (MTR) regulation, while data revenue saw a 1.9% decrease. Excluding the impact of Zero MTR, adjusted service revenue growth would have been 7.3% YoY.

Mobile Money Rwanda delivered solid results with a 29.4% increase in MoMo revenues, driven by the increased adoption of advanced services and a 58.3% increase in the active merchant base to 451,000, showcasing strong adoption and usage of MoMo payment services. Furthermore, customer value management initiatives and an increase in overall subscriber base penetration to 68.6% contributed to the deepening of the fintech ecosystem across Rwanda.

The Enterprise Business segment recorded strong results, with 37.5% growth in service revenues YoY driven by stable subscriber growth and strong contributions from mobile and fixed data services. Home broadband subscriptions saw remarkable growth, increasing by 25.3% YoY and delivering a 43.4% rise in home broadband revenue. This surge reflects MTN Rwanda’s commitment to expanding fixed broadband connectivity, a vital component of MTN Rwanda’s strategy to drive access to digital services across the nation. With these advancements, MTN Rwanda continues to bring reliable, high-speed internet access to more households and businesses, supporting the digitization of Rwanda’s economy and enhancing connectivity for both individual and business needs.

MTN Rwanda’s earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 22.5% to Rwf 65.7 billion, resulting in an EBITDA margin of 34.0%. This was impacted by factors such as the introduction of Zero MTR, increased interconnect costs related to permanent roamers in the ONA (One Network Area) region, and the local currency’s depreciation against the dollar. Consequently, profit after tax declined by 232.4% to Rwf-10.9 billion, driven by lower EBITDA and increased depreciation and amortization costs.

Our financial performance for the nine months reflects a sustained focus and execution of our strategic priorities towards the delivery of our Ambition 2025 strategy. Quarter three’s performance, in particular, demonstrates MTN Rwanda’s resilience and marks a turning point towards our return to growth and profitability through commercial execution and operational efficiencies.
Our key growth drivers remain the Mobile Money and Enterprise segments, supported by solid growth in our customer base, increased adoption of the Mobile Money payments ecosystem, and the expansion and modernization of the network. However, the impact of Zero MTR, ONA interconnect costs, and local currency depreciation continue to put pressure on our margins and profitability, underpinning the -10.9 percentage points (pp) YoY drop in reported EBITDA to 34.0%. Excluding these effects, the normalized EBITDA margin would have been 41.0%, a slight drop of 3.9 pp.
We maintain a strong focus on accelerating our commercial execution to grow service revenue, driving operational efficiencies to improve our earnings profile, and strengthening our balance sheet. As we move into the final quarter, we anticipate a stable outlook with sustained subscriber and revenue growth as we continue to drive digital and financial inclusion in Rwanda while providing value to our stakeholders.

– Dunstan Stober, Acting Chief Financial Officer, MTN Rwanda

 

Despite the headwinds to our business, MTN Rwanda has demonstrated resilience and a continued commitment to delivering best-in-class connectivity and access to digital services across Rwanda, which is reflected in our strong subscriber growth. Our strategic focus on financial inclusion, supported by alignment with government initiatives, is driving meaningful impact for our customers and the Rwandan economy. We’re proud of the progress we’ve made in expanding connectivity and modernizing our network, which will enable new digital technologies and deliver superior customer experience. As we look ahead, we remain committed to accelerating Rwanda’s digital journey and expanding our fintech offerings to foster financial inclusion nationwide, underpinned by improved margins to ensure sustainable growth and returns for our shareholders.

– Mapula Bodibe, Chief Executive Officer, MTN Rwanda

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