MTN Rwanda returns to profit as data and fintech drive Q1 growth

MTN Rwanda returned to profit in the first quarter of 2026, helped by strong growth in internet usage and mobile money services. 

The company posted a profit after tax of Rwf 10.8 billion ($6.8 million) for the quarter ended March 31, 2026, reversing the net loss reported in Q1 2025, according to its financial results. 

The performance marks a sharp recovery from the losses the telecom operator recorded during the same period last year.

Service revenue rose 14.7% year-on-year to Rwf 295.7 billion ($200.78 million), while EBITDA—a measure of operating profitability—grew 17.3% to Rwf 106.8 billion ($72.52 million). Its EBITDA margin improved to 35.8%, up from 32.7% a year earlier.

Growth was driven mainly by MTN Rwanda’s digital businesses. Active data subscribers increased 14.1% to 2.8 million, reflecting rising demand for internet services, while monthly active users on its mobile money platform, MoMo, climbed 17.3% to 6.2 million. 

Revenue from data services rose 15.6%, while fintech revenue from MoMo services jumped 27.6%.

The recovery also built on momentum from late 2025, when increased data consumption and home broadband usage helped strengthen the company’s revenue base. 

The results suggest Rwanda’s telecom sector, although smaller than markets such as Nigeria or South Africa, is becoming one of Africa’s fastest-growing digital economies.

“We remain focused on protecting affordability for our customers, accelerating efficiency across the business, and continuing to invest in the capabilities that will define the next phase of growth,” said Monzer Ali, MTN Rwanda Chief Executive Officer, in the company’s Q1 earnings commentary.

Rwanda’s broader economy has remained resilient despite rising inflation and global economic uncertainty. The country recorded GDP growth of 9.4% in 2025, up from 7.2% the previous year, driven mainly by services and industry. However, inflationary pressures have intensified in early 2026. 

According to Rwanda’s National Institute of Statistics, urban inflation averaged 7.6% between March 2025 and March 2026, while energy prices rose 25.5%.

The National Bank of Rwanda also raised its benchmark interest rate to 7.25% in February 2026 to contain inflation.

For MTN Rwanda, these pressures are affecting both operating costs and consumer spending. The company said geopolitical tensions in the Middle East have increased energy costs and disrupted global trade flows, putting pressure on supply chains and customer purchasing power.

Still, the company continues to invest heavily in network expansion and digital infrastructure. During the quarter, MTN Rwanda said it expanded 4G population coverage to 94.8% and continued its phased rollout of 5G services.

Compared with larger MTN subsidiaries, Rwanda remains a relatively small market. MTN Nigeria reported a profit after tax of roughly $256 million in Q1 2026, while Airtel Africa posted $227 million. 

MTN Rwanda’s subscriber base of 8.2 million is also far smaller than MTN Nigeria’s 89.5 million users or Airtel Africa’s 183.5 million subscribers across its markets.

Growth in mobile money usage in Rwanda, at 5.9 million adults, has outpaced adoption levels in some larger African markets, reflecting the country’s broader push toward financial inclusion and digital payments.

MTN Rwanda said it is targeting capital expenditure intensity of between 7% and 10% of revenue, lower than the aggressive network investment cycles underway in larger telecom markets such as Nigeria and South Africa.

Despite macroeconomic uncertainty, MTN Rwanda described the return to profitability as a “positive start to the year” as it continues to execute its long-term “Ambition 2025” strategy.