MTN back in black

MTN’s dividend beat estimates as Africa’s largest wireless carrier surged back into profit.

The Johannesburg-based company declared a payout of R5 a share for 2025, compared with the median estimate of R3.82 in a Bloomberg survey, it said in a statement on Monday.

Profit jumped to R20.3 billion after MTN didn’t see a repeat of currency devaluations that dented some of its businesses across 18 markets — especially Nigeria, its second-biggest — in 2024. 

MTN in 2020 decided to sell its 49% stake in its Iranian venture, but US sanctions against the Middle Eastern nation — in place since May 2018 — have stymied the efforts, with the conflict that broke out on 28 February further hindering the plan.

The carrier has maintained the non-controlling shareholding in Irancell since 2006 — signing a deal with the theocracy underpinned by the Islamic Revolutionary Guard Corps — but hasn’t extract profit or invested in the operation for almost eight years because of the sanctions. 

“The investment in Irancell is subject to a number of sovereign, regulatory and commercial risks, which could result in the group failing to realise full market value of its investment should it be required to dispose of any portion thereof,” the company said on Monday.

What was once a lucrative foothold in a large emerging market has become one of the most troublesome operations for current CEO Ralph Mupita.