MTN rebounds to profit, hikes dividend, plans share buyback 

Africa’s biggest telecoms operator MTN Group 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.
At the market opening in Johannesburg, South Africa-headquartered MTN shares surged 7.4% before paring gains to trade 4.8% higher at 0943 GMT.

The operator declared a final dividend of 500 cents per share, ‌up 45%, and 35% above the 370 cents minimum MTN had guided for the period.

Group CEO Ralph Mupita said in a media call that MTN would introduce an enhanced framework, targeting an annual distribution of 40% to 60% of equity-free cash flow in shareholder remuneration, effective now.

The framework includes a minimum cash dividend of 40% of equity‑free cash flow, with an additional 20% 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% to 218.5 billion rand, led by strong growth of 54.9% and 35.9% 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%. Reuters