MTN Rwandacell PLC (MTN Rwanda), a subsidiary of MTN Group, announced a 7.5% increase in total subscribers to 7.5 million during the first half of 2024.
However, its financial performance was impacted by various factors, leading to a significant 307.1% decline in profit after tax to a loss of Rwf10.5 billion.
A primary contributor to the profit decline was a 29% decrease in Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) to Rwf39 billion.
This decline was attributed to increased depreciation on tower leases resulting from the expansion of the network with 87 new sites. Additionally, the depreciation of the Rwandan franc against the US dollar by 12.6% exacerbated cost pressures.
Despite these challenges, MTN Rwandacell achieved positive growth in key areas. Active data subscribers rose by 0.6% to 2.3 million, and active Mobile Money (MoMo) subscribers increased by 15% to 5.1 million. Service revenue grew modestly by 0.8% to Rwf121.5 billion.
CEO Paula Bodibe expressed optimism about the Rwandan macroeconomic environment, anticipating relative stability in the second half of the year.
“We deployed capex of Rwf32.8bn in the first half of the year, and rolled out 87 sites across the country. The continued investment in our network is testament to the execution of our Ambition 2025 strategy, aimed at enhancing network capacity, coverage and modernising the network to enable the future profitability of the business,” she said.
The easing inflation rate from double-digit levels in the previous year to an average of 7.7% in the first half of 2024 is expected to boost consumer spending.
MTN Rwandacell remains committed to its Ambition 2025 strategy by investing Rwf32.8 billion in network expansion and modernization during the first half of the year.