MTN Rwanda delivers solid revenue growth in 2021
MTN Rwanda, the largest telecommunications company in the country, delivered a solid growth in 2021 with service revenue growing by more than 24 per cent to nearly $181 million. Net earnings increased by 10.9 per cent in the same period. For more, MTN Rwanda’s Chief Finance Officer, Mark Nkurunziza spoke to CNBC Africa’s Julius Bizimungu.
Fri, 11 Mar 2022 14:51:25 GMT
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AI Generated Summary
- MTN Rwanda reports over 24 percent growth in service revenue, reaching nearly $181 million in 2021, bolstered by network expansion and enhanced service quality.
- The company sees a surge in mobile money usage and a substantial increase in subscribers despite regulatory challenges, positioning itself as a market leader in Rwanda.
- MTN Rwanda's strategic shift towards FinTech services, evidenced by the creation of an independent subsidiary, drives over 60 percent revenue growth, aligning with the broader vision of becoming a platform business for connectivity and financial services.
MTN Rwanda, the leading telecommunications company in the country, has reported a remarkable growth in 2021 with service revenue surging by more than 24 percent to almost $181 million. The company's Chief Finance Officer, Mark Nkurunziza, commended the significant progress during an interview with CNBC Africa's Julius Bizimungu. Nkurunziza attributed the growth to several key factors, including the expansion of network coverage, improved service quality, and a surge in mobile money usage as the nation transitions towards a cashless economy. Despite the challenges posed by tightened SIM card registration regulations, MTN Rwanda managed to increase its subscriber base by 300,000 to reach 6.4 million users, solidifying its position as a market leader. Additionally, the company witnessed an 18.9 percent growth in data users, partly fueled by the shift to remote work amid the pandemic and competitive data offerings. Nkurunziza highlighted the evolving revenue composition for the future, shifting towards a decreased reliance on voice services and a greater emphasis on data and FinTech services. The company's focus on FinTech is evident through the establishment of an independent subsidiary to manage mobile money and FinTech operations, contributing to over 60 percent revenue growth in this sector. Furthermore, MTN Rwanda's alignment with the vision of becoming a platform business for FinTech and connectivity resonates with the broader strategy of the MTN Group, aiming to leverage these sectors for growth and innovation. The company's plans to enhance its dividend payout, increasing network infrastructure investments, and pursuing growth opportunities on the Rwanda Stock Exchange indicate a promising outlook for 2022. Nkurunziza emphasized the commitment to sustained double-digit revenue growth and fostering market consolidation discussions within the telecommunications sector. Investors can anticipate advanced mobile money services and new product offerings from MTN Rwanda in 2022, signaling a continued trajectory of growth and innovation in the telecommunications industry.
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