South Africa’s MTN Group has approved a 6 billion rand ($375 million) share buyback programme after reporting stronger half-year adjusted earnings and cash generation, supported by growth across several of its major African markets.
According to Reuters, MTN Group President and CEO Ralph Mupita said the share buyback would begin on Monday after receiving approval from the telecommunications company’s board.
Africa’s largest telecom operator, which serves more than 317 million customers across 19 markets, reported a 21.3% increase in adjusted headline earnings per share to 793 cents for the six months ended June 30, up from 654 cents a year earlier.
Don’t Miss This:
MTN Nigeria suspends airtime, data lending services over FCCPC regulation
MTN shares gained 4.61% to 201 rand by 1005 GMT following the results and announcement of the buyback programme.
While adjusted earnings strengthened, reported headline earnings per share declined 5.8%, largely because of a 3.9 billion rand non-cash impairment on MTN’s 49% stake in Irancell. The impairment reflected hyperinflation in Iran and the sharp depreciation of the country’s rial, while foreign exchange losses in South Sudan also weighed on earnings.
MTN is seeking to leave Iran as part of its broader withdrawal from the Middle East. However, U.S. sanctions in place since May 2018 have complicated the process and prevented the company from repatriating approximately 880 million rand in dividends, according to Mupita.
Mupita said the sanctions currently prevent MTN from moving money into or out of Iran, adding that the company would continue executing its Middle East exit strategy if circumstances changed and sanctions were removed.
The company’s African businesses provided stronger momentum during the period. Nigeria, Ghana and Uganda, alongside other operations, helped MTN increase service revenue by 17.5% to 115.3 billion rand, while service revenue growth in South Africa stood at 1.5%.
Strong subscriber additions and expansion in MTN’s digital and fintech services also supported the group’s performance, demonstrating the growing importance of services beyond traditional mobile connectivity to the company’s wider strategy.
What This Means For Africa
MTN’s results provide an important indication of the continued growth potential of Africa’s telecommunications and digital services markets. With more than 317 million customers across 19 markets, changes in the group’s performance provide insight into consumer demand across several major African economies.
The contribution from Nigeria, Ghana and Uganda is particularly significant. Their role in supporting service revenue growth shows how MTN’s geographic diversification across Africa can strengthen the wider group’s performance even when individual markets face economic or currency pressures.
Growth in digital and fintech services also points to the expanding role telecommunications companies are playing in Africa’s digital economy, where mobile networks increasingly provide platforms for payments and other financial services alongside connectivity.
For Ralph Mupita and MTN, the combination of stronger adjusted earnings, cash generation and the $375 million share buyback signals confidence in the group’s underlying performance, even as the company continues managing currency risks and completing its planned withdrawal from the Middle East.
Don’t Miss This:
MTN Uganda Revenue Rises 13.6% to $972 Million in 2025 as Data and Fintech Services Grow
Image Credit: BHM
