MTN Rwanda’s recent financial performance demonstrates resilience amid economic and regulatory challenges. While the telecom operator recorded a full-year loss of Rwf 5.5 billion after tax, it achieved a remarkable turnaround in the final quarter, posting a profit after tax of Rwf 5.3 billion—a 328.9% increase compared to Q4 2023. This late recovery signals promising prospects ahead, with growth in the fintech sector and strategic operational adjustments playing a key role.
Despite facing mounting external challenges, MTN Rwanda managed to grow its service revenue by 4.6%, reaching Rwf 257.7 billion, largely driven by the expanding Mobile Money (MoMo) segment. MoMo emerged as the company’s most valuable asset, with revenue rising by 30.3% year-on-year and now accounting for 45.3% of total service revenue, a notable increase from 36.3% in 2023. The surge in advanced MoMo services, ranging from payments and remittances to savings and lending, further solidified its role in Rwanda’s financial ecosystem, with a 56.2% year-on-year growth.
However, regulatory challenges, especially the ongoing zero-rated mobile termination rates (MTRs), had a negative impact on profitability, particularly affecting interconnect margins and voice revenues. The company experienced a 17.8% decline in voice revenue, mainly due to intense competition following regulatory adjustments. Additionally, MTN faced difficulties in its data business, with active data subscribers decreasing by 8.0%, as subsidized 4G smartphones from competitors failed to boost increased data consumption.
Despite these hurdles, the company ended the year on a positive note, with the fourth quarter showing significant improvements in operational efficiency and revenue growth. The EBITDA margin, which had dropped to 35.5% for the full year, rebounded to 39.6% in Q4, indicating that the pressure on costs and revenues may be easing. Furthermore, home broadband services experienced impressive growth, with a 27% increase in subscribers, reflecting strong demand for fixed connectivity solutions.
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