MTN’s R6 billion gift to shareholders

MTN’s board has approved a share buyback programme that will see the telecoms giant repurchase 31 million shares for R6 billion.

This “gift” forms part of MTN’s new shareholder remuneration framework, which was announced with the launch of its Ambition 2030 strategy.

As per this framework, MTN aims to deliver between 40% and 60% of equity-free cash flow to shareholders, either as cash dividends or through share buybacks.

Therefore, while it did not declare an interim dividend in its latest half-year results, MTN announced that the buyback programme will continue for as long as it remains value-accretive to MTN shareholders.

This was revealed in MTN’s results for the six months through June 2026, which were published on Monday, 24 August.

These results marked a milestone for the telecoms giant, which has officially moved from formulation to the active execution of its Ambition 2030 strategy.

This strategy, launched in March 2026, is designed to guide the next phase of MTN’s growth and value creation.

It focuses heavily on driving MTN’s Connectivity, Fintech, and Digital Infrastructure platforms.

Within the Connectivity segment, MTN spent the past half-year scaling data, home, and enterprise services.

This was supported by sustained investment in the group’s networks, platforms, and customer experience. 

To this end, it also launched MTN One TV, further expanding its digital services offering.

In the Fintech platform, MTN completed the structural separation of its Mobile Money business in Ghana. 

The group has also progressed with the required approvals in Nigeria and Uganda. 

“These initiatives support our objective of unlocking value and accelerating growth in one of Africa’s leading fintech platforms,” MTN said.

Within the Digital Infrastructure division, MTN advanced the acquisition of the remaining 75% of IHS Holdings it does not already own.

The deal has been approved by IHS shareholders, but the Nigerian Federal Competition and Consumer Protection Commission only granted conditional approval.

To see the deal through, MTN must sell down up to 30% of the Nigerian component of IHS at market price over time, which the telecoms giant said it is comfortable with.

MTN’s financial results

MTN reported R118.87 billion revenue for the six-month period, up 8.8% compared to the first half of its 2025 financial year.

This growth was largely driven by a strong performance in Nigeria and Ghana, which grew revenue by 25.1% and 43.7%, respectively.

Nigeria was the largest revenue contributor, accounting for R35.55 billion of the total. 

In contrast, South African revenue lagged, dropping by 1.6% to R24.84 billion.

From a segmental perspective, MTN’s revenue growth was primarily driven by Data, which saw the fastest growth, with revenue increasing 29% to R57.59 billion.

MTN’s Incoming voice and Devices segments were the only divisions to report declines, of 19.4% and 14%, respectively.

At the group level, MTN’s basic earnings per share declined by 26.14% to 404 cents, while its headline earnings per share fell by 5.8% to 615 cents.

These declines were largely due to R3.9 billion non-cash impairment MTN recognised on its joint venture in Iran, Irancell. The impairment was driven by the ongoing conflict in Iran.

This, alongside foreign exchange losses in South Sudan of R2.3 billion, led to a 4.09% decline in MTN’s after-tax profit to R12.05 billion.

Despite these headwinds, MTN said the quality of its earnings remained strong, with operating free cash flow increasing 27.5% to R25.1 billion.

Looking forward to the rest of its 2026 financial year, MTN said it is still seeing strong structural demand for connectivity, fintech, and digital infrastructure services across its markets.

The group mentioned geopolitical developments, foreign-exchange volatility, and inflationary pressures as key concerns.

However, MTN said its strong balance sheet, diversified portfolio, and disciplined capital allocation framework position it well to navigate the external environment.