FEATURED: MTN Rwanda Reports Profit Over Rwf14 Billion In H1 2021 | New times
MTN Rwanda reported an after-tax profit of Rwf 14.2 billion in the first half of 2021, compared to Rwf 9.3 billion in the same period last year.
All telecom, data, voice, mobile money and enterprise revenue streams recorded positive growth in the first 6 months of the year.
By June of this year, they had increased their mobile subscriber base by 1.1 million to 6.5 million with active data users increasing from 400,000 to 1.8 million. Mobile Money users currently stand at 3.55 million.
The increase in the number of subscribers, the phone company said, resulted in an increase in voice revenue of 16.1% to 48% of total revenue.
The development, they say, has been in part achieved through expansion of customer acquisition points, rural telephony initiatives and revamped acquisition offerings.
Data as a revenue stream accounted for 18% of revenue, with growth attributed to increased subscribers, usage (MB per user) and traffic growth reportedly increasing by 35% .
FinTech revenues were reported to have the highest growth, with an increase of 80 percent (year over year).
Fintech operations include Mobile Money and Airtime Lending Service. The FinTech branch became in April this year a subsidiary, Mobile Money Rwanda Ltd, with the mandate to manage mobile money operations.
The phone company also makes money from its revenue arm of selling devices and landline connectivity which saw a 19% increase in revenue.
During the same period, the operating expenses of the telecommunications company increased by 30% to reach Rwf 43.7 billion, compared to Rwf 33.6 billion in the first half of 2020. The increase in capital expenditure has been combined with investments in the network to cover coverage and capacity.
Commenting on the performance, Mark Nkurunziza, CFO of MTN Rwanda, said the results are due to an increase in revenue-generating services.
“These results seen so far are attributed to a number of revenue-generating services such as voice and data which recorded increases of 16% and 25% respectively. Business activity increased by 18 percent. FinTech also played a major role, recording the highest year-over-year growth of 80%, derived from a weaker 2020 base following the zero-rating of P2P fees from March 2020 to June 2020 ”,
“The volume of mobile money transactions also increased during the period, supported by a reduction in transaction fees of up to 60% year on year. The overall financial situation of the company remains strong, with total assets rising from Rwf 288.7 billion to Rwf 295.1 billion, a growth of 2.2%, ”Nkurunziza said.
MTN Rwanda CEO Mitwa Ng’ambi said that in the second half of the year they want to implement Ambition 2025 to maintain robust growth.
She added that in addition to the $ 18.5 million investment in the network in the first half of 2021, additional investments will allow them to invest up to $ 27.7 million by the end of the year. ‘year.
“This will consist of managing the impacts of the Covid-19 pandemic, evolving our platform activities to support growth and continuing to invest significantly in the capacity and resilience of our network, as a priority, to manage the continued growth of traffic. We have invested a total of $ 18.5 million in the network and platforms in the first half of 2021, with the intention to end the year with a total investment of $ 27.7 million, ”Ng’ambi concluded. .
In its outlook for 2021, the phone company noted that digital data and revenue streams have further growth potential and remain priorities for the remainder of the year.
During the period, the telephone company supported the government’s efforts to curb the spread of Covid-19, including through awareness campaigns.
In May of this year, MTN Rwanda listed its shares on the Rwanda Stock Exchange with a total of 1,350,886,600 ordinary shares registered.