Full Breakdown
MTN Group's Financial Turnaround Driven by Nigerian and Ghanaian Markets
3/17/2026, 7:50:59 PM
Significant Recovery in Earnings
MTN Group has reported a substantial recovery in its financial performance for the year ending December 2025, transitioning from a loss to a profit. The telecommunications giant recorded a 67% increase in adjusted headline earnings per share, rising to R13.59 from a restated R8.14 in 2024. Group service revenue surged by 22.7% in constant currency, reaching R218.5 billion, while earnings before interest, tax, depreciation, and amortization (Ebitda) climbed 36.8% to R98.5 billion, expanding the margin to 44.5%. The company also declared a dividend of R5 per share, a 45% increase from the previous year.
Nigeria's Role in the Turnaround
MTN Nigeria emerged as the primary driver of this turnaround, achieving a remarkable 54.9% growth in service revenue in constant currency. The Nigerian operation reported a profit after tax of R13.1 billion, recovering from a loss of R6.8 billion in 2024. Data revenue in Nigeria soared by 74%, now constituting over half of the operation's total revenue. The turnaround was attributed to improved macroeconomic conditions, including moderating inflation and a stabilizing naira, alongside strategic price adjustments that boosted voice revenue by 41.9%.
Growth in Ghana
MTN Ghana also played a crucial role in the group's success, with service revenue increasing by 35.9% in constant currency. The Ghanaian market benefited from a favorable economic environment, leading to a 48.3% rise in data revenue and a 33.3% increase in fintech revenue, particularly following the abolishment of the controversial e-levy. MTN Ghana's Ebitda margin expanded to 60.2%, making it the group's most profitable operation.
Challenges in South Africa
In contrast, MTN South Africa faced significant challenges, with service revenue growing only 2% and Ebitda declining by 10.1%. The prepaid segment was particularly affected, with a 0.7% drop in prepaid subscribers and a 2.3% decline in consumer prepaid service revenue. The competitive landscape intensified, leading to increased bad debts and a contraction in voice revenue. However, the enterprise segment showed resilience, with service revenue up 13.6%.
Expansion of Fintech Services
MTN's fintech division, particularly its Mobile Money (MoMo) platform, has become increasingly vital, processing transactions valued at over $500 billion in 2025, a 37.6% increase year-on-year. The platform's active user base grew to 69.5 million, and the company facilitated $3.5 billion in loans, marking an 80.4% increase. MTN's strategic focus on fintech is part of its Ambition 2030 strategy, which aims to enhance connectivity and digital infrastructure across Africa.
Official Statements & Responses
Ralph Mupita, MTN Group CEO, emphasized the importance of the Nigerian and Ghanaian markets in the group's recovery, stating, “We are pleased with the overall development of our fintech ecosystem.” He also noted the ongoing structural separation of fintech businesses in key markets to unlock standalone value.
Criticism & Opposition
Despite the positive outlook, MTN South Africa's struggles have raised concerns among analysts regarding the sustainability of growth in the face of increasing competition and economic pressures. Critics argue that the company needs to address its challenges in the prepaid market more effectively to maintain overall group performance.
What's Next
Looking ahead, MTN Group aims to continue its focus on expanding its fintech services while addressing the competitive pressures in South Africa. The company is implementing strategies to enhance prepaid performance and is exploring partnerships to improve service delivery and reduce bad debts.
