Financial results for the six months ended 30 June 2025
MTN Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1994/009584/06)
(Share code MTN)
(ISIN: ZAE000042164)
(MTN or the Company or the Group)
Financial results for the six months ended 30 June 2025
MTN is a pan-African mobile operator with the strategic intent of 'Leading
digital solutions for Africa's progress'. We have 298 million customers in 16
markets and are inspired by our belief that everyone deserves the benefits of
a modern connected life.
First half (H1) 2025 key messages
• Robust H1 performance | Strong commercial execution, disciplined capital
allocation, improved macro conditions
• Service revenue growth of 22.4%* led by MTN Nigeria and MTN Ghana
• Continued fintech ecosystem development | Fintech transaction value +45.4%*
• MTN Nigeria positive net asset value expected by Q3 2025
• Upgraded medium-term guidance
Highlights
• MTN delivered a robust H1 2025 performance, with positive momentum in our
operational and financial results
o Group service revenue increased by 23.2% to R105.1 billion on a
reported basis; up 22.4 %* in constant currency (CC)
o Data revenue increased by 36.5% on a reported basis; up 34.3%* in CC
o Fintech revenue increased by 37.3% on a reported basis; up 24.9%* in
CC
o EBITDA (before once-off items) increased by 60.6% on a reported basis;
up 42.3%* in CC
o EBITDA margin (before once-off items) increased by 10.7 percentage
points (pp) on a reported basis to 42.7%; up 7.1pp* to 44.2%* in CC
o Basic earnings per share (EPS) increased by 231.8% to 539 cents
(H1 2024: 409 cents loss)
o Reported headline EPS (HEPS) increased by 352.0% to 645 cents (H1 2024:
256 cents loss)
o No interim dividend declared (H1 2024: nil)
• Total subscribers up 4.7% to 297.7million
• Active data subscribers increased by 10.3% to 164.4 million
• Data traffic increased by 29.1% to 11.7PB
• Mobile Money (MoMo) monthly active users (MAU) up 1.7% to 63.2 million
• Fintech transaction volumes up 14.5% to 11.1 billion
• Capex (ex-leases) of R20.8 billion, with capex intensity of 19.0%
• Upgraded medium-term guidance: Group service revenue growth of 'at least
high-teens' (previously 'at least mid-teens')
* Constant currency (CC) information after accounting for the impact of the pro
forma adjustments as defined and included throughout this results announcement.
Refer to relevant section for more detail on the basis upon which constant
currency information is presented.
Group President and CEO Ralph Mupita comments:
H1 results reflect the resilience, progress and momentum in our business
"The Group reported a pleasing set of results, driven by strong commercial
execution, disciplined capital allocation and improved macroeconomic
conditions. We are encouraged by the acceleration in our topline and the
recovery in our profitability and free cash flow generation.
We have raised our overall medium-term guidance (refer to the relevant section
of this H1 2025 results announcement), underlining the strength of our portfolio
as well as our commitment to accelerate the growth in our business and continue
to unlock value for our shareholders and broader stakeholders.
Strong commercial momentum underpinned by improvement in macro conditions
Our performance in H1 2025 was supported by improved macroeconomic conditions,
characterised by greater stability in inflation and foreign exchange (forex)
rates in key markets. The Nigerian naira exhibited greater stability against
the US dollar in the first half, particularly when compared to H2 2024; while
the Ghanaian cedi strengthened year-to-date in H1 against both our reporting
currency the rand and the US dollar. The approval of price adjustments in
Nigeria, which were phased in during the period, largely benefitting Q2, boosted
MTN Nigeria and the Group's service revenue expansion.
We deployed capex of R20.8 billion (ex-leases) to enhance the capacity, coverage
and quality of our networks and platforms – with an acceleration in MTN Nigeria.
This capex spend also reflected the strengthening of the cedi against the rand,
which drove higher capex for MTN Ghana in our reporting currency. This equated
to a capex intensity ratio of 19.0%, which underpinned the commercial momentum
and growth of our business.
During the period, total subscribers increased by 4.7% to 297.7 million, with
active data subscribers and MoMo MAU up 10.3% to 164.4 million and 1.7% to
63.2 million, respectively. Data traffic rose by 29.1% (42.1% excluding JVs)
and fintech transaction volumes by 14.5%, highlighting the ongoing structural
demand for our services.
Operational and financial performance
The Group delivered strong service revenue growth of 22.4%* in H1 2025, with
pleasing contributions from both data (up 34.3%*) and fintech (up 24.9%*).
Advanced services fintech revenue increased by 42.0%* and increased its
contribution to total MoMo revenue (i.e. excluding airtime advance) by 3.8pp to
33.4%. Our larger Opcos, MTN Nigeria and MTN Ghana, led the growth in service
revenue (up 54.1%* and 39.9%* respectively). MTN South Africa (SA) continued to
navigate competitive pressures in its prepaid segment and reported service
revenue growth of 2.3% in H1.
EBITDA margins expanded by 7.1pp* to 44.2%*, driving EBITDA growth of 42.3%* to
R46.7 billion in the period. This outcome was underpinned by robust topline
growth and continued progress in our expense efficiency programme (EEP), which
yielded savings of approximately R1.5 billion in the first half.
On the back of our strong operational performance in H1, operating free cash
flow (OpFCF) increased by 106.4% to R20.5 billion (before spectrum and licence
acquisitions).
Balance sheet and liquidity positions
Group net-debt-to-EBITDA leverage was 0.5x as at 30 June 2025 (December 2024:
0.7x) – comfortably within the loan covenant threshold of 2.5x; with our holding
company (Holdco) leverage remaining largely stable at 1.5x (December 2024:
1.4x). Cash upstreamed from Opcos in the first half amounted to R8.2 billion,
including approximately R3.6 billion from MTN Ghana and R1.6 billion from MTN
SA.
In terms of our Holdco debt mix, the proportion of non-rand debt was
approximately 17% and remained firmly within our medium-term upper limit target
of 40% for foreign currency denominated borrowings.
During H1 2025 we raised R1.8 billion under the DMTN programme to refinance
maturities for the year. At Holdco, we maintained healthy liquidity headroom of
R39.1 billion as at 30 June 2025 – of which R15.7 billion was held in cash.
Outlook, priorities and medium-term guidance
The improvement in macroeconomic conditions in our operating environment
provides a solid foundation to drive our medium-term growth ambitions, as we
continue to execute on our strategy.
Within our operations, our priorities are to accelerate the performance of MTN
SA and sustain the strong momentum in MTN Nigeria and MTN Ghana. For fintech,
we will continue the work to scale the ecosystem, including driving the recovery
of MoMo PSB in Nigeria.
Our balance sheet health and financial flexibility remain critical to our
operational and strategic execution. We remain guided by our capital allocation
framework to safeguard the resilience of our financial profile, further
supported by our focus on expense efficiencies. We remain on track to achieve
our target of R7-8 billion in cost savings between 2024-2026.
We will continue to invest in order to capture the exciting growth opportunities
we see in our markets and anticipate deploying capex (ex-leases) of R33-
38 billion (from R30-35 billion) in FY 2025. This reflects the impact of
stronger forex rates (especially the cedi) against the rand.
Based on current assumptions, we have revised our medium-term framework – see
relevant section below of this H1 2025 results announcement – in light of the
strong momentum we see in our business. In terms of the key change we have
raised our overall guidance for Group service revenue growth to 'at least high-
teens', from 'at least mid-teens'."
Any forward-looking financial information disclosed in these interim results
including the dividend guidance has not been reviewed or audited or otherwise
reported on by our external auditors.
Certain information presented in these interim results constitutes pro forma
financial information and constant currency information. This pro forma
financial information and constant currency information has not been audited or
reviewed or otherwise reported on by MTN's external auditor. The responsibility
for preparing and presenting the pro forma financial information and constant
currency information for the completeness and accuracy of the pro forma
financial information and constant currency information is that of the directors
of MTN. This is presented for illustrative purposes only. Because of its nature,
the pro forma financial information and constant currency financial information
may not fairly present MTN's financial position, changes in equity, and results
of operations or cash flows.
The pro forma financial information presented in the interim financial results
for the period ended 30 June 2025, has been prepared excluding the impact of
impairment of goodwill, PPE, intangibles and associates, impairment loss on
remeasurement of disposal group, gain on disposal/dilution of investment in
JV/associate/ subsidiary and fair value gain on acquisition of subsidiary, net
(gains)/losses (after tax) on disposal of SA towers, net profit on disposal of
PPE and intangibles, hyperinflation, impact of foreign exchange losses and
gains, reversal of deferred tax asset and other non-operational items
(collectively the "Pro forma adjustments") and constitutes pro forma financial
information to the extent that it is not extracted from the segmental
information included in the reviewed consolidated financial results for the six
months ended 30 June 2025. This pro forma financial information has been
presented to eliminate the impact of the pro forma adjustments from the
consolidated results for the period ended 30 June 2025 to achieve a comparable
year-on-year (YoY) analysis. The pro forma adjustments have been calculated in
terms of the Group accounting policies disclosed in the consolidated financial
statements for the year ended 31 December 2024.
Constant currency information has been presented to remove the impact of
movement in currency rates on the Group's results and has been calculated by
translating the prior financial reporting period's results at the current
period's average rates. The measurement has been performed for each of the
Group's currencies, materially being that of the US dollar and Nigerian naira.
The constant currency growth percentage has been calculated after translating
prior year results at current year rates. In addition, in respect of MTN Ghana,
MTN Irancell, MTN Sudan and MTN South Sudan the constant currency information
has been prepared excluding the impact of hyperinflation. The economies of
Ghana, Sudan, South Sudan and Iran were assessed to be hyperinflationary for
the period under review and hyperinflation accounting was applied.
The Group's results and segmental report are presented in line with the Group's
operational structure. The Group's underlying operations are clustered as
follows: South Africa (SA), Nigeria, the Southern and East Africa (SEA) region,
the West and Central Africa (WECA) region and the Middle East and North Africa
(MENA) region and their respective underlying operations.
The SEA region includes Uganda, Zambia, Rwanda, South Sudan, Botswana (joint
venture-equity accounted) and eSwatini (joint venture-equity accounted). The
WECA region includes Ghana, Cameroon, Côte d'Ivoire, Benin, Congo-Brazzaville
and Liberia. The MENA region includes Iran (joint venture-equity accounted) and
Sudan.
Although Iran, Botswana and eSwatini form part of their respective regions
geographically and operationally, they are excluded from their respective
regional results because they are equity accounted for by the Group.
H1 2025 webcast
MTN will be hosting a webcast and presentation today, Monday 18 August 2025,
where we will be unpacking the Group's performance for the half year period
ended 30 June 2025. To participate, please register here:
https://themediaframe.com/mediaframe/webcast.html?webcastid=H9kg48x7
Results Announcement
This results announcement is the responsibility of the directors and is a
summary of the full interim results. The interim results have been reviewed by
the Company's external auditors, Ernst & Young Inc., who have expressed an
unqualified review opinion thereon.
Any investment decisions should be based on the full interim results as the
information in this results announcement does not provide all the details and
investors and/or shareholders are encouraged to review the full interim results
which are available through the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/mtn/MTNH125.pdf and on MTN's
website at: https://www.mtn.com/financial-results/?report_cat=interim-results.
Copies of the interim results may also be requested by emailing
investor.relations@mtn.com.
18 August 2025
Fairland
Lead sponsor
J.P. Morgan Equities (SA) Proprietary Limited
Joint sponsor
Tamela Holdings Proprietary Limited
Date: 18-08-2025 07:05:00
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