MTN Group on Monday reported a 21.3% increase in adjusted headline earnings per share (HEPS) for the first half of 2026, driven by a 17.5% rise in service revenue and a 32.7% jump in equity free cash flow.
The Johannesburg-based telecom operator said adjusted HEPS reached ZAR 10.92, up from ZAR 9.00 in the same period last year. Service revenue growth of 17.5% on a constant-currency basis was broad-based, with Nigeria, Ghana, Côte d'Ivoire, Cameroon and Uganda among the top contributors. Data services accounted for 50% of service revenue, rising 29.2% year-over-year, while voice revenue grew 2.4% and fintech revenue increased 13.3%.
Fintech transactions reached $330.5 billion with 13 billion transactions processed, as monthly active users approached 71 million. Advanced fintech services grew 32%, though overall fintech revenue fell short of guidance due to three non-operating factors. The group’s return on capital employed improved to 31.5% from 27.1% at the end of 2025, while the cost-to-revenue ratio tightened from just under 56% to just above 52%.
Equity free cash flow climbed 32.7% to ZAR 27.9 billion, and free cash flow increased 66% to ZAR 19.4 billion. Operating free cash flow before spectrum and licenses rose 23%, supported by ZAR 13.9 billion in cash upstreamed from operating companies, up from ZAR 8.2 billion a year earlier. Capital expenditure intensity stood at 16.6%, or about ZAR 20 billion, and is expected to remain within a 15% to 18% range for the full year.
CEO Ralph Mupita highlighted the group’s “very strong commercial momentum,” noting that EBITDA margins were the strongest since around 2012 after accounting changes. The Ghana unit reported an EBITDA margin of 61.8%, while Nigeria is expected to deliver 20% service revenue growth for the full-year 2026. The group’s leverage ratio remained low at 0.3 times, and the dividend yield stood at 5.81%.
Ferdie Moolman, head of the South African unit, said cost initiatives are structural and likely to take two to three years to fully unlock. He also indicated the company has reached a “comfortable level” to restart market push for prepaid voice and airtime advance services, though growth would be managed to avoid past over-penetration issues. MTN reaffirmed a ZAR 6 billion share buyback target over a three-year period and noted an outstanding $500 million Eurobond due in October 2026.
The group’s subscriber base grew to just shy of 318 million, with data traffic totaling 14,338 petabytes. MTN’s shares were up 0.57% at $153.68, trimming year-to-date gains to 18.9% and leaving the stock 7.1% below its 52-week high of $165.50.
