MTN Rwanda’s earnings up 228.5% y/y in Q1’25

MTN Rwanda has reported a robust performance in the first quarter of 2025, with a significant increase in net profit and total revenue. The telecom company saw its net profit soar by 228.5% year-on-year to Rwf1.6 billion, propelled by a 12.4% surge in total revenue to Rwf67.9 billion. Despite a 1.2 percentage point decline in EBITDA margin to 38.9%, the company witnessed a 9.3% rise in EBITDA to Rwf26.5 billion. MTN Rwanda remains cautious about competitive market dynamics, especially the impact of zero mobile termination rates introduced in August 2023. MTN Rwanda's strong performance in the fintech sector was a key driver behind its financial success in Q1’25. The company experienced remarkable growth in mobile revenues, which escalated by 28% year-on-year to Rwf33 billion. Additionally, data revenue showed a double-digit growth of 12.2% year-on-year, totaling Rwf11.7 billion, mainly due to a significant increase in data usage, which surged by over 20% year-on-year for the quarter. The enterprise segment also played a crucial role in revenue growth, with enterprise revenues expanding by 13.2% year-on-year. Moreover, MTN Rwanda's EBITDA margin saw a notable improvement, increasing by 9.3% to Rwf26.5 billion year-on-year, resulting in a reported margin of 38.9%. The company's underlying EBITDA performance, adjusted for lease accounting, revealed an underlying EBITDA margin of 44%, showcasing a 3.9 percentage point growth compared to the previous year. This growth is attributed to MTN Rwanda's focus on cost containment measures to mitigate the impact of currency depreciation. In terms of service revenue, MTN Rwanda witnessed substantial growth in Momo service revenue by 28%, driven by the expansion of the agent network. Additionally, advanced services experienced significant growth, complemented by strong double-digit growth in traditional services, indicating a robust fintech business foundation. Data revenue also increased by 12.2% year-on-year, fueled by enhanced commercial offerings like the Guamo proposition launch, which helped the company address pricing challenges in the market. Looking ahead, MTN Rwanda is expected to continue its strategic focus on driving revenue growth through its fintech and data offerings while maintaining a keen eye on market dynamics and regulatory changes that could impact its operations.