MTN posts annual profit boosted by Nigeria growth, hikes dividend, and plans share buyback to reward shareholders.
Africa’s biggest telecoms operator MTN Group has rebounded to an annual profit and said on Monday it would pay shareholders a dividend that exceeded guidance and planned to buy back shares.
The strong performance in the year ended December 31 followed a difficult 2024 for the group, when its largest business, MTN Nigeria, was hit by sharp currency devaluations, surging inflation and high interest rates.
For the full year 2025, strong performances in MTN Nigeria and MTN Ghana, as well as 3.6 billion rand in cost savings, delivered a profit before tax of 47.4 billion rand ($2.81 billion). That compared to a restated loss before tax of 4.1 billion rand in 2024, a Reuters report said.
At the market opening in Johannesburg, South Africa-headquartered MTN shares surged 7.4 per cent before paring gains to trade 4.8 per cent higher.
The operator declared a final dividend of 500 cents per share, up 45 per cent, and 35 per cent above the 370 cents minimum MTN had guided for the period.
Group Chief Executive Officer, Ralph Mupita, said in a media call reported by Reuters that MTN would introduce an enhanced framework, targeting an annual distribution of 40 per cent to 60 per cent of equity-free cash flow in shareholder remuneration, effective now.
The framework includes a minimum cash dividend of 40 per cent of equity free cash flow, with an additional 20 per cent available for further cash payouts or share repurchases.
Mupita said the board had approved a buyback of up to 6 billion rand, “to be executed opportunistically over three years from 2026”.
The group’s service revenue rose 22.7 per cent to 218.5 billion rand, led by strong growth of 54.9 per cent and 35.9 per cent in Nigeria and Ghana, respectively, the mobile operator said.
In the pre-paid segment, where competitive pressures are severe, MTN South Africa reported overall service revenue growth of 2 per cent, the report added.