MTN Rwanda posts strong growth in mobile money, enterprise, and broadband services for the third quarter of 2024, highlighting sustained momentum in key segments despite a tough economic backdrop.
The telecom giant’s unaudited financials show a 5.3 percent year-on-year increase in subscribers to 7.6 million and a 1.6 percent uptick in service revenue to Rwf189.3 billion, led by mobile money and enterprise.
Active Mobile Money (MoMo) subscribers rose by 13.4 percent to 5.2 million, while MoMo revenue jumped 29.4 percent, bolstered by a 58.3 percent rise in the active merchant base. However, data subscribers dipped 10.3 percent to 2.3 million, and voice revenue contracted by 21.4 percent, impacted by Zero Mobile Termination Rate (MTR) regulation. Adjusted for Zero MTR effects, MTN Rwanda’s service revenue growth would be 7.3 percent.
The Zero Mobile Termination Rate (Zero MTR) is a regulatory policy where mobile network operators are not allowed to charge each other fees for terminating calls on each other’s networks.
“Our core drivers, mobile money and enterprise, continue to thrive, underpinned by robust subscriber growth and a dynamic payments ecosystem. While margin pressure persists from Zero MTR and local currency depreciation, our focus remains on accelerating revenue and operational efficiencies. Moving into the final quarter, we expect stable growth as we advance digital and financial inclusion,” MTN Rwanda’s Acting Chief Financial Officer, Dunstan Stober said.
The telecom’s enterprise services marked impressive results, with a 37.5 percent rise in revenue, driven by strong mobile and fixed data demand. Home broadband subscriptions rose by 25.3 percent, translating into a 43.4 percent revenue boost—reflecting MTN’s drive to extend digital connectivity across Rwanda.
Despite the gains, EBITDA dropped 22.5 percent to Rwf65.7 billion, with a 34 percent margin, pressured by Zero MTR impacts and One Network Area (ONA) region costs. Capital expenditure saw an 18.9 percent decrease to Rwf34.8 billion, following accelerated H1 investments, with notable completion of Kigali’s network modernization. While the telecom operator also registered a Rwf-10.9 billion Profit after tax a loss during the period, impacted by a lower EBITDA and an increase in depreciation on our tower leases.
MTN Rwanda’s Chief Executive Officer, Mapula Bodibe, reinforced the commitment to advancing Rwanda’s digital journey.
“Despite headwinds, our subscriber growth and financial inclusion initiatives showcase our resilience and alignment with national objectives. Network modernization and fintech expansion are empowering our customers and positioning us for long-term growth,” Bodibe stated.
“Looking ahead, we remain focused on expanding digital access and enhancing our fintech offerings to drive sustainable returns,” She said.
With ongoing strategic interventions, MTN Rwanda aims to strengthen its balance sheet, improve profitability, and deliver enhanced digital solutions that contribute to Rwanda’s digital economy.
