MTN Rwandacell, a subsidiary of the South Africa-based MTN group, said its total subscribers increased by 7.5% to 7.5 million in the six months to June 30, but profit after tax decreased by -307.1% to -Rwf10.5 billion, impacted by a lower Ebitda, an increase in depreciation on tower leases driven by the rollout of additional sites and local currency depreciation.
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 29% to Rwf39bn. Active data subscribers increased 0.6% to 2.3 million. Active Mobile Money (MoMo) subscribers increased by 15% to 5.1m. Service revenue increased by 0.8% to Rwf 121.5bn.
The macroeconomic environment in Rwanda was expected to remain relatively stable in the second half, CEO Paula Bodibe said in a statement.
She said the local currency depreciation against the US dollar continued to remain in double digit territory at 12.6% year-on-year, easing from the mid-teen highs of 2023. This continued to result in higher import and utility costs.
“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.
Rwanda’s economic growth momentum remained strong in the first half of 2024 despite the challenging global context. According to the National Institute of Statistics Rwanda, the Rwandan economy grew by 9.7% in the first quarter, mainly driven by the services sector, which grew by 11% and the telecommunications services sub-sector leading in growth by 28%. \
Rwanda’s Urban CPI averaged 7.7%, easing from double-digit rates last year, which should allow for more disposable income available for consumers use, she said. - Edward West.