MTN Navigates Headwinds with Resilient Underlying Performance

Africa’s leading telecom operator, MTN Group, anticipates a profit decline of up to 30% for the first half of 2026. This comes despite robust growth in its core telecom business and an expected rise of up to 23% in underlying earnings.

The primary factor impacting headline profitability is a significant impairment on MTN’s 49% stake in Irancell, compounded by foreign exchange losses and hyperinflation in Iran. While these non-operational factors are weighing down reported earnings, the company highlights strong operational momentum across its markets.

Key Financial Projections:

• Headline Earnings Per Share: Down 20%-30% to between 377 cents and 431 cents
• Adjusted Headline Earnings Per Share: Up 18%-23% to between 775 cents and 808 cents (a better indicator of operating performance)
• Underlying Earnings: Expected to rise by up to 23%

MTN’s management emphasized that the projected decline in headline earnings does not accurately reflect the strength of its underlying telecom operations. The company took a material hit on its Irancell investment due to evolving geopolitical and economic conditions, including the ongoing conflict in Iran.

Regional Performance Highlights:

• Nigeria: Remains a key growth market, though fintech faces regulatory pressure
• South Africa: Prepaid voice revenue continues to be challenging
• Ghana & Uganda: Delivered solid operational performance during the period

MTN is also progressing with its acquisition of IHS Towers, which would give the company 100% ownership and result in IHS being delisted from the New York Stock Exchange. The full interim results are expected on or about August 24.