MTN Rwandacell Plc (MTN.rw) HY2022 Interim Report
Comments from MTN Rwanda Chief Executive Officer
MTN Rwanda has continued its journey of accelerated progress shown over the last three years. This is despite global and local inflationary pressures, resulting from the Ukraine-Russia war, which has placed strain on supply chains globally and resulted in an increase in commodity and fuel prices.
While we remain cautious of the current operating environment, we have continued diligent execution of our Ambition 2025 strategy. Leading in connectivity, has been of great focus in the first half of the year, and our investment in network has resulted in a leading NPS position ending the period. We deployed capex of Rwf 28.8 billion in the first half of the year (up by 56.0% YoY), rolling out 57 sites across the country. We also enabled U2100 spectrum on all sites across the network to close the quarter with full carrier aggregation which has greatly improved customer experience. With this solid foundation we continue our focus in pursuit of full population coverage.
These investments, along with solid operational execution, supported a resilient commercial performance. We grew our subscriber base by 1.7% YoY to 6.6 million in H1 2022 against the backdrop of new SIM registration guidelines, which were introduced in September 2021.
We are pleased to have maintained our leadership in customer market share, which increased by 2.7pp to 65.6%.
With the aim to deliver a superior data experience to our customers, we embarked upon an accelerated 4G penetration drive which has seen the number of active 4G users grow by five times over the period, while overall data subscribers also grew by 23.9%. This approach coupled with initiatives to drive smartphone penetration will bolster data revenue growth in the long run. To drive smartphone penetration, we signed a Memorandum of Understanding (MOU) with the Bank of Kigali, that will see to the launch of a device financing partnership post our half year results release.
In driving our platform strategy, we have placed significant focus on the growth of our MoMo customer base and the service ecosystem that it enjoys. MoMo active subscribers grew by 9.1% YoY while the volume and value of transactions processed were up by 38.3% and 22.8% YoY, respectively.
Within our merchant ecosystem, MoMoPay, the volume of transactions increased by 36.4% YoY.
Notable product launches on Mobile Money, during the period, include MoMoBiz and Mobile Money interoperability. MoMoBiz, an end-to-end payment solution and interface, aims to facilitate financial transactions for businesses of all sizes. Mobile Money interoperability, also launched in the second quarter, further facilitates person-to-person money transfers across all networks. Mobile Money Rwanda Ltd will continue to drive growth in the mobile financial services, with a focus on advanced services, in line with our strategy.
Our continued strategic focus on Environment, Social and Governance (ESG) matters led to the implementation of a number of initiatives in the first half of the year. The most notable being the introduction of solar power in our main data centre, a pilot of which continues to perform well. We continued to advocate for the adoption of green energy solutions, by also donating solar panels to 700 families through the Cana Challenge in partnership with the Development Bank of Rwanda. Project Twese (“All of Us”), which launched last year with special focus on making our products and services more accessible to people with disabilities, led to the completion of a 3-month sign language training programme for our front-line staff. We are proud of the role we play in serving and supporting all members of our society. Through our annual staff community service initiative, the 21 days of Yello Care, MTN Rwanda staff also focused on digital skills training at Agahozo Shalom Youth Village, a home to orphaned and vulnerable Rwandan Youth.
With this sustainable approach to business growth, our overall revenue grew by 20.4% YoY. EBITDA grew by 17.8% YoY closing the quarter with an EBITDA margin of 49.3%. The decline of 1.1pp in the EBITDA margin is primarily due to the increase in the mandatory contribution to the Community Based Health insurance scheme from 2.5% to 3.0% of turnover in 2022, as well as the cost of sales associated with accelerating 4G penetration. We continue to implement cost efficiencies to contain operating expenditure growth.
The renewal of our operating license in 2021 amplified amortisation costs as well as net finance costs resulting in a 31.5% YoY decline in PAT to Rwf 9.7 billion.
The contents of the post above were obtained from third parties, which We, AfricanFinancials, believe to be reliable. However, We do not guarantee their accuracy and the above information may be in condensed form. The reader is encouraged to refer to the original source of the information, which, in most cases, is in PDF format and on the originating company's letterhead. While We endeavour to replicate the original content accurately, We cannot guarantee the absence of errors in the above article and We disclaim any liability regarding reliance on information provided in this article.