MTN Group has delivered R27.4-billion in profits for the 2025 financial year following R11.2-billion loss in the previous year.
In the annual financial statement released on Monday, MTN revealed customer subscriptions increased 5.6% to 307.2-million.
Group president and CEO Ralph Mupita said the group was proud to have gone past the 300-million customer subscription mark, as this highlights growth in digital and financial inclusion in the group’s markets.
“We remain committed to leading digital solutions for Africa’s progress. Operationally, we delivered strong earnings growth, free cash flow, and improved returns.
“The performance was underpinned by improved macroeconomic conditions in key markets and driven by strong operational execution and disciplined capital allocation,” said Mupita.
Service revenue increased 22% to R218.5-billion, heavily boosted by Nigeria and Ghana, which delivered 54.9% and 35.9% growth, respectively.
South Africa remained dull, with only 2% growth due to competitive pressures in the country.
The group effected leadership changes last August, revealing Ferdi Moolman as chief executive for the South African operations to weather the storm, replacing Charles Molapisi, who returned to his former role as group chief technology and information officer.
Headline earnings per share increased 1.058% over the year to R12.74 compared with R1.10 in the previous year.
The Iranian rial posted a 45.4% average value drop against the US dollar, which has pushed Irancell profits to drop by 41.2%.
MTN is exploring an exit from its 49% stake in Irancell due to US sanctions and the unauthorised removal of CEO Alireza Rafiei by Iranian authorities earlier this year.
Rafiei was immediately dismissed for the delayed shutdown of services.
Sunday World previously reported that Mupita has been holding talks with Middle Eastern institutions to explore the possibility of selling its stake in Irancell.
The group also raised concerns about the escalating war in the Middle East, adding to global economic uncertainty and potentially posing challenges for the business if tensions persist.
Including the Ukraine war, the group warned that these geopolitical conflicts may disrupt energy supply and prices, increase foreign exchange volatility, and influence inflation trends across its markets.
Supportive macroeconomic conditions
If these risks intensify, they could negatively affect the company’s operating environment and growth prospects.
Despite the uncertainty, the group said supportive macroeconomic conditions across its markets helped drive strong performance in the 2025 financial year and provide a base for future growth under its Ambition 2030 strategy.
Operationally, the company will focus on sustaining strong performances in Nigeria, Ghana, and Uganda while improving performance in South Africa, particularly in the prepaid segment.
The board has declared a dividend of R5 per share, supported by strong financial performance, solid earnings growth, and healthy free cash flow.
The company has also approved an improved medium-term shareholder remuneration policy that includes dividends and a share buyback programme.
The group aims to return between 40% and 60% of equity-free cash flow to shareholders each year.
This will include a minimum cash dividend of 40% with the possibility of an additional 20% through extra dividends or share buybacks.
The company may also repurchase shares of up to R6-billion over three years from 2026, subject to shareholder approval.
