MTN Group reports rising first-half profits amid regional growth and South African challenges

MTN Group reported a significant increase in adjusted first-half earnings, driven by strong performance in several African markets. Net income in Nigeria, the company’s largest market, surged 71%, while profits in Ghana and Uganda rose by 43% and 38%, respectively. This growth is attributed to increased data usage and fintech adoption across the region.

However, the company faces challenges in its home market of South Africa. MTN South Africa has reported a continuous decline in voice service revenue within the prepaid segment for four consecutive reporting periods. This trend is being exacerbated by competition from banking entities like Capitec Connect, which uses free connectivity as a customer retention tool rather than a primary revenue stream.

While headline earnings for the group were impacted by impairment losses related to an investment in Iran, the overall operational performance in key African territories remains a primary driver of the company’s adjusted earnings growth.