Africa Digest News

MTN Group, Africa’s largest telecommunications operator, has staged a remarkable comeback in the first half of 2025 (H1 2025), delivering impressive financial performance and strategic execution.

After navigating a challenging 2024 with currency devaluations and economic headwinds, the company has rebounded strongly, driven by surging data and fintech revenues, operational discipline, and improved macroeconomic conditions.

Key Financial Highlights of MTN Group’s H1 2025 Performance

1. Revenue Growth and Profitability Surge

MTN Group reported a 23.2% increase in group service revenue, reaching R105.1 billion ($6.1 billion), up from R85.3 billion ($4.94 billion) in H1 2024.

On a constant currency basis, revenue grew by 22.4%, reflecting strong performances across key markets.

Headline earnings per share (HEPS) swung from a loss of 256 cents ($0.15) to a profit of 645 cents ($0.37) in H1 2025, marking a significant turnaround.

The company’s EBITDA before one-off items surged by 60.6% to R46.7 billion ($2.71 billion), with an EBITDA margin expanding to 42.7% (up from 32.0% in H1 2024).

2. Data and Fintech Drive Growth

The telecom giant’s growth was propelled by a 36.5% increase in data revenue and a 37.3% rise in fintech revenue.

Data services now account for approximately 45% of total revenue, supported by a 29.1% surge in data traffic to 11.7 petabytes and a 10.3% increase in active data subscribers to 164.4 million.

The company’s Mobile Money (MoMo) platform saw significant traction, with transaction values rising 45.4% to $212.2 billion and advanced services revenue growing by 42.0%.

These figures highlight MTN’s strategic focus on digital and financial services as key growth pillars.

READ ALSO:The Leaders Set to Shape MTN’s Next Chapter, Starting November 2025

3. Strong Performance in Key Markets

• Nigeria: MTN Nigeria led the group’s growth with a 54.1% surge in service revenue, supported by a more stable naira. The subsidiary reported a profit after tax of ₦414.9 billion ($267.6 million), rebounding from a ₦519.1 billion ($334.8 million) loss in H1 2024. Analysts project MTN Nigeria’s net asset value to turn positive by Q3 2025, paving the way for dividend resumption.
• Ghana: MTN Ghana outperformed expectations, recording a profit after tax of ₵3.6 billion ($349.2 million), surpassing Nigeria’s profit despite a smaller subscriber base of 30.2 million. The unit’s EBITDA margin reached 58.4%, driven by a 39.9% increase in service revenue and strong demand for data and fintech services.
• South Africa: Growth was more modest at 2.3% in service revenue, with challenges in the prepaid segment due to competitive pressures. However, MTN South Africa showed resilience in its postpaid, wholesale, and enterprise segments.
• Uganda: MTN Uganda reported a 13.1% revenue increase to $479.88 million, with data revenue overtaking voice, rising by 31.3% to Ush 490.2 billion ($133.7 million).

4. Subscriber and Network Expansion

MTN Group grew its subscriber base by 4.7% to 297.7 million, with active data subscribers increasing by 10.3% to 164.4 million and MoMo users rising by 1.8% to 63.2 million.

The company invested heavily in network infrastructure, with capital expenditure (capex) excluding leases rising 54.8% to R20.8 billion ($1.21 billion), supporting the rollout of 1,443 3G, 1,766 4G, and 542 5G sites.

Full-year capex guidance was raised to R33–38 billion ($1.91–2.20 billion), reflecting strategic investments to enhance network capacity and digital platforms.

5. Improved Financial Health

MTN’s operating free cash flow more than doubled to R20.5 billion ($1.19 billion) from R9.9 billion ($573.4 million) in H1 2024, while the net-debt-to-EBITDA ratio improved to 0.5x, well below the covenant threshold of 2.5x.

The company declared a dividend of 345 cents ($0.20) per share, up from 330 cents ($0.19) in 2023, with a minimum ordinary dividend of 370 cents ($0.21) anticipated for the full 2025 financial year.

Strategic Initiatives Fuelling MTN’s Comeback

Under the leadership of CEO Ralph Mupita, MTN Group has executed its Ambition 2025 strategy with precision, focusing on:

• Digital and Fintech Expansion: Partnerships with Mastercard and investments in platforms like MoMo have strengthened MTN’s fintech ecosystem, with advanced services like banktech and remittances growing significantly.
• Network Investments: The launch of a $240 million data centre in Lagos and a new roaming deal with 9mobile in Nigeria reflect MTN’s commitment to digital inclusion and infrastructure growth.
• Portfolio Optimisation: MTN completed exits from Afghanistan and Guinea-Bissau and increased local ownership in Ghana and Uganda, raising R1.7 billion ($98.6 million) in proceeds.
• Expense Efficiency: The company realised R1.5 billion ($87 million) in savings through its Expense Efficiency Programme, targeting R7–8 billion ($406–464 million) by 2026.

Upgraded Guidance and Future Outlook

MTN raised its medium-term service revenue growth guidance from mid-teens to at least high-teens, reflecting confidence in sustained momentum. Specific market outlooks include:

• Nigeria: Targeting low-50% service revenue growth with an EBITDA margin of at least 50%.
• Ghana: Aiming for mid-to-upper thirties growth with margins in the mid-to-high 50s.
• South Africa: Expecting low-to-mid single-digit growth with EBITDA margins of 35–37%.

The company’s focus on data-led growth, fintech innovation, and disciplined capital allocation positions it to capitalise on Africa’s growing demand for digital and financial services.

READ ALSO:How MTN Uganda’s H1 2025 Performance Signals a Fintech Powerhouse in the Making

Why MTN’s Comeback Matters

MTN Group’s H1 2025 performance signals a robust recovery for one of Africa’s leading telecom operators.

The company’s ability to navigate macroeconomic challenges, such as currency volatility and inflation, while delivering strong financial results, demonstrates its operational resilience and strategic foresight.

For investors, the improved financial health, dividend growth, and upgraded guidance make MTN an attractive prospect.

For consumers, the focus on network expansion and fintech services promises enhanced connectivity and financial inclusion across the continent.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.