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MTN Rwanda reports Rwf5.5 billion loss in 2024 due to high operating costs and low revenue growth

MTN Rwanda reports Rwf5.5 billion loss in 2024 due to high operating costs and low revenue growth

March 17, 2025
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MTN Rwanda reports Rwf5.5 billion loss in 2024 due to high operating costs and low revenue growth

Oluwatosin Adeyemi by Oluwatosin Adeyemi
March 17, 2025
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MTN Rwanda reports Rwf5.5 billion loss in 2024 due to high operating costs and low revenue growth

MTN Rwanda reports Rwf5.5 billion loss in 2024 due to high operating costs and low revenue growth

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MTN Rwanda reported a loss after tax of Rwf 5.5 billion, marking a 194.1 percent decrease from the profit reported in the previous year. The financial performance was attributed to low revenue growth and high operating expenditures.

During the reviewed period, voice revenue declined by 17.8 percent, falling to Rwf 68.7 billion. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also decreased by 19.8 percent, reaching Rwf 92.9 billion.

Capital expenditure (capex) declined by 15.3 percent to Rwf 70.5 billion (Rwf 36.9 billion, ex-leases).

Read also: MTN Rwanda reports 261.6 billion Rwf in total revenue for 2024 despite decline in data users

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“Despite a challenging operating backdrop, we delivered resilient results with encouraging trends in some of our key financial metrics in H2, particularly Q4,” Mapula Bodibe, MTN Rwanda’s Chief Executive Officer, said in a statement.

MTR’s policy contributes to revenue decrease

The main driver of the revenue decline was the zero-rated Mobile Termination Rates (MTR), which led to the 17.8 percent drop in voice revenue.

Bodibe said that although the nation’s macroeconomic circumstances generally improved over the year, the company’s financial performance was significantly impacted by the competitive and regulatory landscape.

In the regulatory environment, she noted, “Our business was affected by the continued zero-rating of local MTR and rising One Network Area (ONA) interconnect charges attributed to permanent roamers in Uganda and South Sudan.”

Last year, RURA reviewed the laws governing local Mobile Termination Rates (MTR), requiring telecom firms to forgo payment for calls from other networks in Rwanda that were received on their network for a year.

Bodibe explained that discussions with RURA are ongoing, with hopes that the reintroduction of MTRs could offer a positive resolution to the challenges at hand.

Capital expenditures decreased by 15.3%, EBITDA declined by 19.8%

With leases excluded, MTN Rwanda’s capital expenditures—the costs associated with purchasing or enhancing tangible assets—dropped by 15.3 percent to Rwf 70.5 billion and Rwf 36.9 billion.

Earnings from core operations, measured by EBITDA (Earnings Before Interest, Taxes, depreciation, and Amortization), fell 19.8 percent to Rwf 92.9 billion.

Earnings from core operations decreased by 10.9 percentage points to 35.5 percent, which means that for every dollar of revenue, the EBITDA margin—which measures profitability from core operations as a percentage of revenue—decreased by 10.9 percentage points.

“We are pleased to have witnessed a turnaround in our PAT In the last quarter of 2024, which was driven by double-digit service revenue growth and disciplined capital allocation. However, the company reported a net loss of Rwf 5.5 billion for the year, compared to 2023, due to a slowdown in revenue growth and rising operating expenses. EBITDA declined by 19.8 percent, with the EBITDA margin falling to 35.5 percent, primarily impacted by a 26.3% increase in costs and the effects of the Zero MTR directive on voice revenue. Despite these challenges, MTN Rwanda maintained financial discipline driven by cost expense efficiencies, and value-based capital expenditure, reducing by 15.3 percent YoY to Rwf 70 billion underscoring a strategic focus on optimizing network infrastructure to improve efficiency and enhance customer experience,” said Dunstan Stober, Acting Chief Financial Officer of MTN Rwanda.

Read also: MTN Rwanda records 7.6 million subscribers in 2024

No dividends in order to regain profitability 

The Board of Directors decided not to declare a dividend for 2024, in order to focus on regaining profitability and improving the company’s financial standing.

Earnings per share (EPS) were reduced from Rwf 4.4 to Rwf 4.1 per share.

Tags: 2024MTN RwandaRwanda
Oluwatosin Adeyemi

Oluwatosin Adeyemi

Oluwatosin Adeyemi is a seasoned writer with 5+ years of experience. He holds a degree in Animal Science from Olabisi Onabanjo University. A hardworking and creative individual with a passion for teamwork and self-improvement.

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