MTN Rwandacell Plc (MTN Rwanda) is pleased to announce 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,” highlighted Dunstan Stober, Acting Chief Financial Officer.
MTN Rwanda reported capital expenditure of Rwf 34.8 billion, an 18.9% year-on-year (YoY) decrease, as we slowed down capex investments in Q3 following the accelerated capex deployment in H1, which included our network modernization program. Notably, network modernization in Kigali was completed during this period, making the network more intelligent, connected, and agile. Across Rwanda, the network modernization program aims to deliver an enhanced digital experience for MTN customers.
“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,” stated MTN Rwanda Chief Executive Officer, Mapula Bodibe.
As part of MTN Rwanda’s commitment to creating shared value, the company made its annual contribution to Imbuto Foundation’s ‘Edified Generation Program,’ through which it supports 100 students from underprivileged backgrounds by covering their annual school fees. Still in the space of education, MTN Rwanda pledged Rwf 30,000,000 to feed 10,000 students for the 2024–2025 school year through the Ministry of Education’s impactful #DusangireLunch campaign, in partnership with our subsidiary, Mobile Money, aimed at raising awareness of the impact of a nutritious meal at school on enrollment, retention, and performance.
MTN Rwanda also recently celebrated the graduation of ten young professionals as part of the MTN Group Global Graduate Program, where they gained essential skills, demonstrating MTN Rwanda’s contribution to the development of the Rwandan labor market by building a workforce equipped for the digital economy. Additionally, MTN Rwanda hosted the MTN Iwacu Muzika Festival across eight districts, bringing together local artists and uniting Rwandans through cultural celebration, supporting both national pride and the growth of Rwanda’s creative industry.
Looking ahead, MTN Rwanda will continue implementing appropriate interventions to accelerate service revenue growth, unlock operational efficiencies, and strengthen our balance sheet to improve profitability. We anticipate a positive outcome from the regulatory study on Zero MTR. We will continue to pursue initiatives to improve financial performance and deliver leading digital solutions to drive Rwanda’s progress, creating long-term value for our shareholders.
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