MTN Group, Africa’s largest telecom operator led by Zimbabwean executive Ralph Mupita, reported a modest decline in profit after tax to $752 million in the first half of 2026, despite strong growth in service revenue, EBITDA and cash generation across its pan-African operations.

According to its financial results for the six months ended June 30, 2026, MTN’s profit after tax declined from R12.57 billion ($784.23 million) in H1 2025 to R12.05 billion ($752.16 million) in H1 2026. The weaker bottom-line performance came despite a 9.7% increase in reported service revenue to R115.32 billion ($7.2 billion) and a 20% increase in EBITDA before once-off items to R56 billion ($3.5 billion).

The earnings performance was affected principally by a non-cash impairment of MTN’s equity-accounted investment in Irancell and foreign exchange losses in South Sudan. South Africa also recorded weaker operating performance, with EBITDA declining 7.7% during the period.

Nigeria, Ghana drive MTN’s revenue growth

MTN’s performance was supported by strong growth across Nigeria and Ghana, which offset weaker earnings from South Africa. MTN Nigeria delivered the strongest performance among the group’s three largest operations, with service revenue increasing 25.2% to R35.33 billion ($2.21 billion) from R28.23 billion ($1.76 billion) a year earlier. EBITDA rose 38.7% to R19.87 billion ($1.24 billion), while EBITDA margin expanded to 55.9% from 50.4%.

Nigeria contributed 30.6% of MTN Group’s service revenue and 35.5% of group EBITDA in the first half, making it the largest contributor to the group’s earnings.

MTN Ghana also maintained strong momentum, with service revenue rising 7.1% to R22.13 billion ($1.38 billion) from R20.67 billion ($1.29 billion). EBITDA increased 13.9% to R13.74 billion ($857.73 million), while the EBITDA margin expanded to 61.9% from 58.2%. Ghana accounted for 19.2% of group service revenue and 24.5% of group EBITDA during the period. South Africa, however, remained a drag on group profitability. Service revenue increased only 1.5% to R21.94 billion ($1.37 billion), while EBITDA declined 7.7% to R8.51 billion ($531.1 million). Its EBITDA margin fell to 34.3% from 36.5%.

Data and fintech strengthen MTN’s growth

MTN’s group service revenue increased 9.7% on a reported basis and 17.5% in constant currency terms, reflecting sustained growth in data, fintech and digital services. Data revenue was the strongest contributor, rising 21% to R57.6 billion ($3.6 billion) on a reported basis and 29.2% in constant currency terms. Voice revenue increased 3.8% on a reported basis to R30.4 billion ($1.9 billion), while wholesale revenue rose 10.3% to R5.2 billion ($324.54 million).

Fintech revenue increased 1.4% to R14.9 billion ($929.94 million) on a reported basis and 13.3% in constant currency terms. Excluding regulatory items, fintech revenue increased 19.3%.

MTN’s fintech ecosystem also recorded strong activity, with transaction volumes rising 17.2% to 13 billion and transaction value increasing 33.8% in constant currency terms to $330.5 billion. Monthly active MoMo users increased 12.1% to 70.8 million, while advanced fintech services grew 31.8%.

Subscriber base reaches 317.7 million

MTN added millions of customers during the first half, increasing its total subscriber base by 6.7% to 317.7 million across its 19 markets. Active data subscribers increased 9.1% to 179.3 million, while data traffic climbed 22.8% to 14.3 petabytes as smartphone adoption and digital engagement continued to rise.

The growth in data usage reinforced data as MTN’s primary revenue growth engine, with the company continuing to invest in network capacity, coverage and service quality.

MTN spent R19.7 billion ($1.23 billion) on capital expenditure excluding leases during the period, resulting in capex intensity of 16.6%, compared with 19% in H1 2025.

Mupita points to stronger profitability and cash generation

Mupita said MTN’s first-half performance reflected sustained commercial momentum, disciplined execution and continued investment across its connectivity, fintech and digital infrastructure businesses. The group’s EBITDA before once-off items increased 20% on a reported basis and 24.4% in constant currency terms to R56 billion ($3.5 billion). EBITDA margin expanded to 47.1% from 42.7%, while the constant-currency margin increased to 47.6%. Adjusted headline earnings per share rose 21.3% to R7.93, although reported HEPS declined 5.8% to R6.15. Excluding the impact of Irancell, adjusted HEPS increased 23.7% to R7.67.

Operating free cash flow increased 27.5% to R25.1 billion ($1.57 billion), while free cash flow rose to R11.1 billion ($692.86 million). Equity free cash flow, the measure used in MTN’s shareholder remuneration framework, increased 32.7% to R7 billion ($436.91 million). The group also maintained a strong balance sheet, with net debt-to-EBITDA remaining at 0.3x as of June 30, 2026, while liquidity headroom stood at R39.1 billion ($2.44 billion).

Strategic focus sharpens under Ralph Mupita

Under Mupita’s leadership, MTN continued executing its Ambition 2030 strategy across connectivity, fintech and digital infrastructure. The group advanced the structural separation of its fintech operations, completing the process in Ghana while progressing regulatory approvals in Nigeria and Uganda. It also expanded its fintech ecosystem through a strategic partnership with Ant International.

MTN continued to advance its proposed acquisition of the remaining shares in IHS, while selectively investing in artificial intelligence and data infrastructure opportunities aligned with its long-term growth strategy. The company also agreed settlement terms with the Syrian Arab Republic relating to its former investment in Syria.

Under the agreement, MTN is authorised to receive $43.9 million upon execution, subject to completion of the remaining legal formalities.

MTN said its medium-term guidance remains unchanged and confirmed that its share buyback programme will commence, reflecting confidence in the group’s cash generation, balance sheet strength and long-term growth prospects. Despite the decline in reported profit, the group’s underlying earnings, cash flows and operating performance remained strong, with Nigeria and Ghana emerging as key contributors to MTN’s growth while weaker performance in South Africa continued to weigh on overall profitability.