LAGOS, Aug 24 – MTN Group has approved a R6 billion ($375 million) share buyback programme as Africa’s largest telecommunications operator reported stronger underlying earnings and cash generation during the first half of 2026.
The Johannesburg-listed group said its board approved the repurchase programme, which CEO Ralph Mupita said would begin on Monday. MTN shares rose 4.61% to R201 at 10:05 GMT following the announcement.
Adjusted headline earnings per share increased 21.3% to 793 cents in the six months ended June 30, compared with 654 cents in the same period last year. The improvement was supported by subscriber additions, stronger service revenue and growth in digital and fintech businesses across the group’s markets.
MTN serves more than 317 million customers across 19 markets. Group service revenue increased 17.5% to R115.3 billion, with Nigeria, Ghana and Uganda among the markets supporting the strongest growth. South Africa recorded more modest service revenue growth of 1.5%.
Underlying profitability also strengthened. Core earnings increased 24.4% to R56 billion, while the group’s EBITDA margin expanded by 3.1 percentage points to 47.1%.
Reported headline earnings per share, however, declined 5.8% as MTN absorbed a R3.9 billion non-cash impairment on its 49% stake in Irancell. The impairment reflected hyperinflation in Iran and the sharp depreciation of the rial. Foreign-exchange losses in South Sudan also weighed on reported earnings.
The impairment comes as MTN continues efforts to exit Iran, its remaining operation in the Middle East as part of a broader withdrawal from the region. The process remains complicated by US sanctions that have been in place since 2018 and have prevented the company from repatriating about R880 million in dividends trapped in the country.
Mupita said the sanctions continue to restrict the company’s ability to move capital in either direction. According to him, “With the sanctions in place, we can’t put any money in and we can’t take any money out. But if the situation did change in a way where there was a removal of sanctions we would continue with executing our Middle East exit strategy.”
Beyond Iran, MTN’s African operations continued to drive growth. Nigeria, Ghana and Uganda contributed to the increase in service revenue, while stronger subscriber numbers and expansion in digital and fintech services provided additional support.
MTN also provided an update on its proposed transaction involving tower operator IHS Towers. The group said the remaining obstacles to the deal are largely regulatory. Nigeria’s competition regulator has granted conditional approval, including a requirement for MTN to reduce its stake in the Nigerian business by as much as 30% over time at prevailing market prices.
The combination of stronger underlying earnings, improved margins and the new share buyback programme signals increased confidence in MTN’s cash-generation capacity. At the same time, the continued costs associated with Iran and other foreign-exchange exposures remain significant factors for investors assessing the group’s reported earnings and international portfolio.
