MoMo Powers MTN Rwanda’s Growth with 30.3% Revenue Increase Amid Market Challenges

MTN Rwanda’s latest financial results paint a picture of resilience in the face of economic and regulatory turbulence. While the telecom operator reported a loss after tax of Rwf 5.5 billion for the year, the final quarter saw a dramatic turnaround, with a profit after tax of Rwf 5.3 billion—a remarkable 328.9% improvement compared to Q4 2023. This late-year momentum signals a potential recovery, fueled by growth in its fintech segment and strategic operational shifts.

The year was defined by service revenue growth despite mounting external pressures. MTN Rwanda recorded a 4.6% increase in service revenue, reaching Rwf 257.7 billion, driven largely by the rapid expansion of its Mobile Money (MoMo) services. MoMo proved to be the company’s strongest asset, with revenue surging by 30.3% year-on-year, now accounting for 45.3% of total service revenue—a substantial leap from 36.3% in 2023. This performance highlights the growing role of fintech in the company’s long-term strategy, as advanced MoMo services, including payments, remittances, savings, and lending, saw a 56.2% increase, further embedding mobile money into Rwanda’s financial ecosystem.

However, regulatory headwinds significantly impacted profitability, particularly the continued zero-rated mobile termination rates (MTRs), which put pressure on interconnect margins and voice revenues. Voice revenue fell by 17.8% year-on-year, a drop largely attributed to aggressive pricing competition following regulatory changes. The company also faced hurdles in its data business, with active data subscribers shrinking by 8.0%, reflecting a competitive landscape where subsidized low-cost 4G smartphones from rivals are not translating into higher data consumption.

Despite these setbacks, the company ended the year on an optimistic note, with Q4 showcasing notable improvements in operational efficiency and revenue generation. The EBITDA margin, which had dropped to 35.5% over the full year, rebounded to 39.6% in the final quarter, suggesting that the worst of the cost and revenue pressures may be easing. At the same time, home broadband saw significant traction, with subscriber growth of 27% year-on-year, reflecting demand for fixed connectivity solutions.