MTN Rwanda’s service revenue increases by 24.5%

MTN Rwandacell PLC has reported a remarkable growth in the first quarter of this year, with service revenue surging by 24.5%. The telecom giant's key revenue streams, voice services, and data, have played a significant role in this growth. Mitwa Kaemba Ng'ambi, the CEO of MTN Rwanda, discussed the factors behind this outstanding performance in an exclusive interview with CNBC Africa. Ng'ambi highlighted that voice revenue grew by 11.7%, data revenue increased by nearly 10%, and mobile money revenue soared by over 55%, solidifying the company's position in the market. These key revenue drivers have propelled MTN Rwanda's growth in the first quarter of the year. The company has also witnessed a notable increase in its mobile subscribers, a testament to the quality services and network coverage provided by MTN Rwanda. The CEO mentioned that network expansion plans and commercial efforts have contributed to a 5% year-on-year growth in the subscriber base. Additionally, initiatives to deliver affordable products and services have attracted new customers to the digital world. Despite the impact of COVID-19, Ng'ambi emphasized a growth in data usage among existing customers, with an average consumption of nearly 3 gigabytes per month. The pandemic prompted MTN Rwanda to accelerate its digital transformation efforts, particularly in areas like distribution, leading to increased efficiency. Ng'ambi noted that these digital initiatives have positively impacted the company's performance and operational margins. Moreover, MTN Rwanda has made substantial investments in technology to enhance network quality and comply with regulatory standards. The CEO acknowledged the regulatory notice received by the company and reiterated their commitment to improving service quality through increased investments in technology. While the EBITDA margin saw a slight decline, Ng'ambi explained that operational investments in the current year were higher compared to the previous year, contributing to the margin variation. The surge in capital expenditure, up by 36.9%, mainly focused on enhancing network capacity and coverage across Rwanda. Additionally, the decision to establish mobile money subsidiary, Momo, has proved beneficial, providing autonomy and governance clarity. The separation has enabled greater focus on mobile money services, resulting in increased efficiency and innovation. Reflecting on MTN Rwanda's performance on the Rwandan stock exchange, Ng'ambi expressed satisfaction with the market response and emphasized the company's commitment to transparency and shareholder engagement. Looking ahead, MTN Rwanda aims to sustain its growth trajectory through continued investment in technology and service innovation. The company's projections for the remainder of 2022 include double-digit revenue growth in voice, data, and mobile money segments. Ng'ambi outlined plans to expand mobile money services and enhance financial inclusion by capturing a larger market share. With a focus on connectivity, platforms, and ESG initiatives, MTN Rwanda remains dedicated to transforming its business and seizing growth opportunities in the market.