MTN Rwanda has reported an after tax profit of Rwf14.2 billion in the first half of 2021 compared to Rwf9.3 billion in the same period last year.
All the telco’s revenue streams, data, voice, Mobile Money and enterprise registered positive growth in the first 6 months of the year.
As of June this year, they had grown their mobile subscriber base by 1.1 million to reach 6.5 million with active data users increasing by 400,000 to 1.8 million. Mobile Money users currently stand at 3.55 million.
The increase in subscribers, the telco said, saw voice revenue increase by 16.1 per cent to rake in 48 per cent of total revenue.
The development they say was partly achieved by expansion of customer acquisition points, rural telephony initiatives and revamped acquisition offers.
Data as a revenue stream accounted for 18 per cent of revenue with growth attributed to increased subscribers, usage (MB per user) and growth in traffic which is estimated to have grown by 35 per cent.
Financial Technology revenue was reported to have the highest growth rising by 80 per cent (year on year).
Fintech operations include Mobile Money and airtime lending service. The FinTech arm in April this year became a subsidiary, Mobile Money Rwanda Ltd, with a mandate to run mobile money operations.
The telco also makes money from its revenue arm which involves selling devices and fixed connectivity which recorded a 19 per cent increase in revenue.
In the same period, the telco's operating expenses rose by 30 per cent to Rwf43.7 billion from Rwf33.6 billion in the first half of 2020. The increase in capital expenditure was associated with investment in the network to cater for coverage and capacity.
Commenting on the performance, Mark Nkurunziza, MTN Rwanda Chief Finance Officer said that the results are driven by an increase across revenue generating services.
"These results seen so far are attributed to a number of revenue generating services such as voice and data that registered an increase of 16 per cent and 25 per cent respectively. Enterprise business grew by 18 per cent. Fintech also played a major role, ringing in the highest year on year growth of 80 per cent, derived from a lower 2020 base following the zero-rating of P2P fees from March 2020 to June 2020,”
"The volume of Mobile Money transactions also grew over the period, supported by a reduction in transaction fees of up to 60 per cent year on year. The overall financial position of the Company remains solid with the total assets increasing from Rwf288.7 billion to Rwf295.1 billion representing a 2.2 per cent growth,” Nkurunziza said.
MTN Rwanda Chief Executive Officer Mitwa Ng’ambi said that in the second half of the year, they are keen on the execution of 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 see them invest up to $27.7 million by end of the year.
"This will consist of managing the impacts of the Covid-19 pandemic, scaling our platform businesses to sustain growth, and continuing to significantly invest in the capacity and resilience of our network, as a priority, to manage the continued growth in traffic. We have invested a total of $18.5 million in the network and platforms in the first half of 2021, with the intention of ending the year with a total investment of $27.7 million,” concluded Ng’ambi.
In their outlook for 2021, the telco noted that data and digital revenue streams have the potential for further growth and remain priorities for the remainder of the year.
During the period, the telco supported government efforts in curbing the spread of Covid-19 such as through awareness campaigns.
In May this year, MTN Rwanda listed its shares on the Rwanda Stock Exchange with a total of 1,350,886,600 ordinary shares registered.