MTN Rwandacell Plc (MTN Rwanda) announced its unaudited results for the half-year ended 30 June 2022. Mobile subscribers increased by 1.7% year-on-year (YoY) to 6.6 million. Active data subscribers increased by 23.9% YoY to 2.2 million, supported by the data growth initiatives. Fintech revenue maintained strong YoY growth of 52.4%, which was attributable to both Xtratime service and MoMo. Also, service revenue was up by 21.5% to Rwf 105.1 billion.
Additionally, earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 17.8% to Rwf 52.5 billion, with an EBITDA margin of 49.3%. Furthermore, the capital expenditure (CAPEX) rose by 56.0% to Rwf 28.8 billion, while the profit after tax (PAT) decreased by 31.5% to Rwf 9.7 billion, as the business continues to amortize its operating license that was renewed in 2021.
Commenting on the results, MTN Rwanda’s Chief Executive Officer, Mitwa Ng’ambi, said, “MTN Rwanda has continued its journey of accelerated progress shown over the last three years, despite global and local inflationary pressures, resulting from the Ukraine-Russia war. While we remain cautious of the current operating environment, we have continued diligent execution of our Ambition 2025 strategy. Leading in connectivity has been of great focus in the first half of the year, and our investment in the network has resulted in a leading NPS position ending the period. We also enabled the U2100 spectrum on all sites across the network to close the quarter with full carrier aggregation which has greatly improved customer experience. With this solid foundation, we continue our focus in pursuit of full population coverage.”
Outlook
Inflation is expected to rise further in the remainder of the year as macroeconomic pressures persist. This may impact the business into H2. The investment in the network and platforms remains a key priority supporting the company’s strategy. MTN Rwanda will continue investing in its network to improve quality, as it targets full population coverage this year to further drive the growth in subscriber base and connectivity business. In navigating the increasingly challenging trading environment, the company will continue to execute the “Ambition 2025 strategy” to drive solid commercial momentum, with an increased focus on efficiencies, to achieve its medium-term targets.