MTN Rwanda Sees Robust Subscriber Growth, 4G Expansion in Q2, 2024

MTN Rwandacell PLC (MTN Rwanda) has reported a substantial increase in its subscriber base and significant 4G penetration in its half-year financial results for the period ending June 30, 2024. The company added 527,000 new mobile subscribers, bringing its total to 7.5 million – a 7.5% increase year-over-year.

Additionally, the company’s mobile money platform, MoMo, grew by 15%, now reaching 5.1 million users.

Active data subscribers also rose by 0.6% to 2.3 million, despite facing increasing competitive pressure.

MTN Rwanda’s Enterprise Business Unit showcased a remarkable 40.2% year-over-year growth in revenue, fueled by a 36.6% increase in home broadband subscribers, up from 7,400 to 10,100, contributing to a 21.1% revenue increase.

Key Performance Highlights

-Mobile Subscribers: Increased by 527,000 to 7.5 million (+7.5% YoY).
– MoMo Subscribers: Increased by 15.0% to 5.1 million.
– Active Data Subscribers: Increased to 2.3 million (+0.6% YoY).
– Enterprise Business Revenue: Increased by 40.2% YoY.
– Home Broadband Subscribers: Grew by 36.6% to 10,100.
– 4G Network Coverage: Expanded to 86.7%.
– 4G Users: Increased by 414.7%.

MTN Rwanda’s Chief Executive Officer, Mapula Bodibe, expressed satisfaction with the company’s growth, attributing the success to the increased demand for connectivity and the strategic expansion of MTN’s network.

“We are extremely pleased with the strong growth in our subscriber base. Our investments in network expansion and modernization are ensuring that we continue to provide a superior customer experience,” Bodibe said.

In the fintech arena, Mobile Money Rwanda Ltd (MMRL), a subsidiary of MTN Rwanda, continued its upward trajectory with a 30.6% year-over-year growth in revenue. The active merchant base also surged by 83.4% to 441,000, underlining the widespread adoption of MoMo payment services.

Marking the one-year anniversary of MTN Rwanda’s 4G network license, the company reported a 25.9% increase in data traffic and a substantial 414.7% surge in 4G users.

A significant driver of this growth was the rollout of the Ikosora+, an affordable 4G-enabled smartphone developed under the Connect Rwanda 2.0 initiative.

This partnership with the Government of Rwanda led to a 39.0% year-over-year increase in the number of smartphones on the network, now totaling around 2.4 million, with smartphone penetration rising to 31.7% from 24.5% in the previous year.

Despite the growth in subscribers and technological adoption, the company faced challenges in its service revenue streams. Service revenue saw a modest growth of 0.8% year-over-year, primarily driven by gains in fintech and enterprise sectors.

However, voice revenue fell by 24.3% due to the Zero Mobile Termination Rate (MTR) regulation. Excluding the impact of Zero MTR, the service revenue growth would have been 9.2% year-over-year.

“While we maintained strong commercial momentum, our service revenue growth was impacted by regulatory and macroeconomic challenges,” said MTN Rwanda Chief Finance Officer, Mark Nkurunziza.

He noted that the increase in expenses and subsidy costs, especially related to the Ikosora+ smartphone and additional costs from One Network Area permanent roamers, contributed to a lower EBITDA margin of 31.3%.

Looking ahead, MTN Rwanda remains focused on completing the modernization of its network across Kigali and the Western Provinces by the end of 2024, with plans to upgrade sites in major cities and rural areas by 2027.

This strategic move is expected to enhance connectivity, improve margins, and deliver sustainable growth for shareholders.

In community engagement, MTN Rwanda participated in the “30 Days of Y’ello Care” campaign, celebrating the company’s 30th anniversary with initiatives aimed at improving education and well-being in rural areas.

As the year progresses, MTN Rwanda is adjusting its 2024 guidance to single-digit service revenue growth, an EBITDA margin of 40% to 42%, and capital expenditure intensity in the mid-twenties.

The company remains committed to unlocking operational efficiencies and strengthening its balance sheet for future profitability.

SOURCE: TAARIFA