The MTN Group reported strong financial results for the six months to 30 June 2026, driven by accelerated subscriber growth across much of its African footprint, but its South African operation remains a drag on overall performance.
Key numbers underline group momentum
Group service revenue increased by 17.5% to R115 billion in H1 2026, while earnings before interest, tax, depreciation and amortisation (EBITDA) before once-off items rose almost 25% to R56 billion. Adjusted headline earnings per share (HEPS) climbed more than 21% to 793 cents.
Fintech continues to contribute meaningfully: transaction volumes were up 17.2%, reaching R13 billion for the period. The group also announced a share buyback programme of approximately 31 million ordinary shares for an aggregate consideration of up to R6 billion.
| Metric | H1 2026 |
|---|---|
| Service revenue | R115 billion (+17.5%) |
| EBITDA (before once-offs) | R56 billion (+~25%) |
| Fintech transaction volumes | R13 billion (+17.2%) |
| Adjusted HEPS | 793 cents (+21%+) |
| Share buyback | ~31 million shares (up to R6 billion) |
South Africa underperforms while other markets lead growth
MTN said much of the growth was led by operations in Ghana, Nigeria, Uganda, Côte d’Ivoire and Cameroon, alongside broader portfolio contributions. By contrast, the South African business recorded only 1.5% growth in service revenue for the period — a modest increase MTN characterises as the short-term cost of management actions to improve the quality of its large prepaid base.
Performance improved slightly in the second quarter: MTN South Africa’s service revenue grew 2.3% in Q2, up from 0.7% in Q1 2026. Management attributed the softer overall showing in SA principally to a decline in prepaid voice volumes — historically a significant revenue stream.
"To be clear, the South African consumer is fairly resilient, so the drop in prepaid is down to not enough demand," MTN Group CEO Ralph Mupita said. "We saw a deceleration on voice in the prepaid sector. And that's a big bundle of revenue that has historically been there."
Mupita told Motheo Khoaripe that while prepaid voice is weakening as customers shift to messaging and data services, there was solid growth in postpaid, wholesale and prepaid data segments in South Africa. He expects prepaid voice to continue to decline as usage patterns evolve.
What this means for customers, jobs and investors
- Household consumers: the shift away from prepaid voice to data and messaging can mean smaller voice bills but higher data spend, depending on bundles and usage. Operators’ efforts to clean up low-value prepaid customers could reduce cheap, low-usage connections but aim to improve overall revenue quality.
- Employees and jobs: stronger growth across MTN’s West and East African markets may support investment and hiring there; the modest recovery in MTN SA suggests management is targeting a higher-quality customer mix rather than short-term subscriber volume.
- Investors: the group’s buyback programme of up to R6 billion and the rise in adjusted HEPS are positive signals for shareholders, while geographic divergence highlights country-specific risks within a single-listed pan-African operator.
MTN also referenced progress on the proposed IHS transaction, which management expects to conclude in the second half of 2026 subject to remaining regulatory approvals.
The results underline a central tension for large South African corporates operating across Africa: growth and returns can be uneven by market, with consumer behaviour and regulatory contexts creating divergent outcomes. For South African households and businesses that rely on mobile services, the transition from voice to data and fintech-led services will continue to shape monthly communications and payments costs.
These developments do not constitute financial advice. Investors and customers should consider their own circumstances when responding to corporate announcements.
