Kigali – MTN Rwanda has reported a significant decline in profit after tax, plummeting by 307.1% to a loss of Rwf10.5 billion in the first half of 2024. The telecom giant attributed this downturn to increased depreciation costs on tower leases and a decline in overall earnings.
The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also took a hit, falling by 29% year-on-year to Rwf39 billion. This translates to a 13.8 percentage point drop in EBITDA margin to 31.3%.
To bolster its network infrastructure, MTN Rwanda invested heavily in expansion and modernization, with capital expenditure rising by 29.4% to Rwf29.5 billion. The company aims to complete network upgrades in Kigali and the Western Province by the end of 2024, with nationwide coverage expected by 2027.
Despite gaining more subscribers, MTN Rwanda experienced a decline in voice and data revenue, primarily due to the impact of the zero mobile termination rate (MTR) policy introduced by the Rwanda Utility and Regulatory Authority (RURA). This policy, designed to reduce interconnection charges between telecom operators, has negatively affected MTN Rwanda’s bottom line.
While the MTR policy has drawn criticism from MTN, other operators had previously expressed concerns about high interconnection rates, accusing MTN of unfair competition.
The company’s fintech arm, Mobile Money Rwanda Limited (MMRL), showed growth of 30.6%, offering some respite amidst the overall financial challenges.
