MTN Rwandacell Plc records strong growth in subscribers and revenue in third quarter of 2023

On 4 November 2023 at 10:00

MTN Rwandacell Plc (MTN Rwanda) has released its third quarter results for the period ending 30th September 2023, reporting significant growth in various key performance indicators. Through the bold and progressive journey of its Ambition 2025 strategy, the company was able to register impressive results delivering strong growth across its Data, Enterprise and Mobile Financial Services Business Units.

MTN Rwanda recorded a solid 13.6% growth in service revenue, realizing over Rwf 186.2 billion during the period, with Mobile Money (MoMo) and Voice remaining the largest contributors to service revenue. Data revenue continued to show significant growth, driven by a steady growth in Active Data subscribers.

Despite the challenging global and local macro conditions the company is facing, driven by elevated inflationary pressures and local currency depreciation against the US dollar, the company still witnessed an impressive growth of 34.7% year on year in MoMo revenue, 22.4% growth in Data revenue while Voice revenue eased slightly by 3.9% as a result of the introduction of zero-rated Interconnect rates.

MTN Rwanda successfully launched its own 4G network in July 2023, to provide best-in- class network connectivity, faster and more reliable data speeds and improved digital services for its customers. During this period, the company took the bold step of rolling out 1,011 4G sites across the country, to achieve 84% population coverage to date.

During the third quarter, MTN Rwanda also celebrated its 25th year anniversary of operations in Rwanda and engaged in various activities to recognize this milestone and show appreciation to its customers, partners and stakeholders for their loyalty, support and association with MTN Rwanda, over the past 25 years. In order to drive engagement with customers, the company rolled out the nationwide Iwacumuzika festival across 8 districts in Rwanda and also interacted with customers across different service touchpoints during customer service week.

In order to provide more value to customers, the company introduced new affordably priced offers such as the Tubitayeho Voice and Data plans, at a time when customers needed it the most, amidst inflationary pressures that dampened consumer purchasing power.

In its steadfast commitment to building a more sustainable Rwanda, the company planted 2,500 trees in Huye district, marking significant progress towards its pledge to plant 25,000 trees in celebration of 25 years of operations in Rwanda. This reflects MTN Rwanda’s enduring dedication to creating shared value and making a positive impact on the environment and in the communities it serves.

"We are focused on diligently executing our Ambition 2025 strategy, while ensuring sustained growth in all our operations, despite the challenging operating environment. We are encouraged by our solid performance during this quarter and we remain focused on executing our commercial strategy, driving efficiencies whilst generating value for our shareholders.

MTN Rwanda is committed to delivering sustained growth and value for our stakeholders, driven by a growth in subscribers, earnings, and EBITDA as well as displaying margin resilience, as we continue to maintain our position as Industry leaders," said Mapula Bodibe, MTN Rwanda CEO.

"Our performance underscores our role as a trusted telecommunications provider deeply committed to inclusivity, customer-centricity and community development, whilst we continue to invest in the development of our infrastructure to enhance the quality and coverage of our network," concluded Bodibe.

Mark Nkurunziza, the Chief Finance Officer of MTN Rwanda had this to add "We registered strong results showcasing EBITDA1 growing by 4.7%, to Rwf 84.7 billion, although the EBITDA margin contracted by 3.9 percentage points, settling at 44.9%. This contraction was primarily attributed to heightened expenses associated with interconnect and 4G wholesale data costs, the introduction of a zero mobile termination rate policy and the impact of dollar denominated costs affected by the depreciation of the local currency against the dollar."

"In view of these factors, we still expect FY23 guidance to remain intact with mid-teens service revenue growth and healthy EBITDA margins as we deliver value to our stakeholders," concluded Nkurunziza.

Looking forward, we are focused on implementing our Ambition 2025 strategy to deliver leading digital solutions for Rwanda’s progress. We are confident that the investments we have made, including the rollout of our own 4G network, will deliver long-term benefits and enhanced service offerings for our customers.

About MTN Rwandacell

MTN Rwandacell Plc (MTN Rwanda) is the market leader in mobile telecommunications in Rwanda.

Since 1998, the telecom has continuously invested in expanding and modernising its network and leading digital solutions for Rwanda’s progress. MTN Rwanda offers various services to subscribers, including innovative propositions such as personalised voice and data offers for individuals and corporates with a clear vision to lead the delivery of a bold, new digital world to customers with a belief that everyone deserves the benefits of a modern connected life.