MTN Reports Profit Turnaround, Raises Dividend, and Initiates Share Buyback

MTN Group, the largest telecommunications operator in Africa, has confirmed a return to annual profitability and stated on Monday that it will distribute a dividend to shareholders that surpasses earlier expectations, in addition to initiating a share buyback program.

This solid performance for the year concluded on December 31 comes after a challenging 2024 for the group. During that time, its major division, MTN Nigeria, faced significant impacts from drastic currency devaluations, heightened inflation, and elevated interest rates.

For the entire year of 2025, robust performances from MTN Nigeria and MTN Ghana, complemented by cost savings amounting to 3.6 billion rand, led to a profit before tax of 47.4 billion rand ($2.81 billion). This marks a notable recovery compared to a loss before tax of 4.1 billion rand in 2024, as reported by Reuters.

Upon market opening in Johannesburg, shares of MTN experienced a rise of 7.4 percent, later stabilizing to an increase of 4.8 percent.

The company declared a final dividend of 500 cents per share, reflecting a 45 percent increase and 35 percent higher than the minimum guidance of 370 cents previously announced by MTN.

Ralph Mupita, the Group Chief Executive Officer, mentioned during a media conference reported by Reuters that MTN plans to establish a revised framework aiming to distribute 40 percent to 60 percent of equity-free cash flow to shareholders annually, effective immediately.

Under this framework, a minimum cash dividend of 40 percent of equity-free cash flow will be maintained, along with an option for an additional 20 percent that can be allocated for further cash distributions or share repurchases.

Mupita also indicated that the board has sanctioned a buyback of shares worth up to 6 billion rand, which will be conducted opportunistically over the next three years from 2026.

Furthermore, the group's service revenue increased by 22.7 percent to 218.5 billion rand, primarily driven by strong growth of 54.9 percent in Nigeria and 35.9 percent in Ghana, as disclosed by the mobile operator.

In the competitive pre-paid market segment, MTN South Africa reported a modest service revenue growth of 2 percent, according to the report.