NuRAN’s Africa-Focused Strategy Pays Off as Revenues and Margins Climb
NuRAN grew revenues 36%, improved gross margins to 53%, and nears EBITDA breakeven in 2025, driven by African NaaS expansion.
NuRAN Wireless Inc. , a leading supplier of mobile and broadband wireless infrastructure solutions has announced its audited financial results for the year ended December 31, 2024:
Highlights of the Company’s financial results for the twelve months ended December 31, 2024, include the following:
- Revenue of $4,364,327 compared to $3,199,125, for the twelve months ended December 31, 2024, an increase of 36.42%, almost 80% of which is attributable to the increase in live NaaS sites
- Gross profit of $2,331,615 (53%) for the twelve months ended December 31, 2024, compared to $ 543,820 (17%) in 2023, an improvement of $1,787,795 or 329%.
- Total expenses of $10,892,426 compared to $12,376,744 for the twelve months ended December 31, 2023, a decrease of 11.99%.
- Net Loss of $8,755,860 compared to $12,832,924 for the twelve months ended December 31, 2024, a decrease of 28.94%.
The substantial rise in gross profit is further evidence of our site build progress as well as the continually improving robust performance of our sites. As we continue to expand our operations and diversify our site builds across various countries, we are clearly focused on achieving positive EBITDA in the near term. Our continually improving financial performance should open the door to more attractive financing opportunities for further expansion. The recent agreements and financing initiatives not only strengthen our financial position but also reaffirm our commitment to bridging the digital divide for rural communities. The ongoing success in Cameroon, with over 80% gross margin in NaaS revenue, is a testament to the efficiency and effectiveness of our business model. We look forward to continuing to deliver value to our shareholders as we grow and scale our innovative solutions across Africa.
– Francis Letourneau, President and CEO, NuRAN Wireless Inc.
Q1 Guidance
Management reports that the company should reach positive Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) for its first quarter of operations in 2025. The revenue and traffic growth in Cameroon combined with the increase in number of sites built and billing, has allowed the company to achieve over 80% gross margin in Cameroon deducting direct costs of NaaS delivery from revenue.
Although EBITDA is a non-GAAP measure, NuRAN is encouraged by the ability of NaaS revenues in Cameroon and elsewhere to cover group operating costs with new capital being raised to continue to build and generate cash to repay debt.
Highlights from the Year and Recent Announcements Include:
- On July 16, 2024, NuRAN announced a US$ 32.2 million NaaS agreement for up to 200 sites with MTN Benin (JSE: MTN) for the deployment of rural 2G, 3G and 4G sites under the Network-as-a-Service (“NaaS”) business model in Benin, West Africa. The 5-year agreement with MTN Benin now places NuRAN in 8 countries for 5092 sites throughout Sub-Saharan Africa with NaaS agreements signed. The contract includes a renewal for an additional 5 years at the end of the initial term. This agreement has been signed under the MTN Framework Agreement announced on July 21, 2022, serving as further evidence of the strong partnership between MTN and NuRAN both dedicated to empowering lives in rural communities across Africa.
- On July 16, 2024, the Company announced that the initial US$ 2.5M drawdown from the Facility for Energy Inclusion (“FEI”) has been received allowing for the resumption of site construction.
- On August 19, 2024, NuRAN announced the closing of a non-brokered private placement of an unsecured convertible debenture (the “Debenture”) for aggregate gross proceeds of US$ 1.6M. The Debenture has a two-year term and accrues interest at a rate of 15% per annum until August 16, 2026, the Maturity Date. The principal amount of Debenture is US$2,194,772 after application of an original issuance discount of 25% and including all applicable fees. The Debenture may be converted into units of the Company (each, a “Unit”) at a conversion price of CDN$ 0.225 per Unit (the “Conversion Price”) with each Unit consisting of one common share and one common share purchase warrant exercisable into one common share at a price of CDN$ 0.25. Under the terms of the Debenture, the Company also granted a participation right in future equity financings up to a 9.9% equity interest in the Company.
- On December 9, 2024, the Company announced that it has achieved positive Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) in its wholly owned Cameroon subsidiary covering all operating expenses including a portion of central costs charged to the subsidiary. The recent developments specifically pertaining to site acceptance have accelerated subscriptions and mark a clear turning point for the company in Cameroon.
