MTN Group (MTN) Q2 2026 earnings summary

Executive summary

• Strong commercial momentum drove robust growth and profitability, with service revenue up 17.5% and EBITDA up 24.4% year-over-year, supported by broad-based contributions from Nigeria, Ghana, Côte d'Ivoire, Cameroon, and Uganda.

• Fintech revenue rose 13.3%, with transaction value up 33.8% to $330.5 billion and advanced services up 32%, though growth was below guidance due to non-operational factors.

• Adjusted headline EPS increased 21.3% to 793 cents, and return on capital employed rose to 31.5% from 27.1%, with equity free cash flow up 32.7%.

• Share buyback program of R6 billion commenced, and medium-term guidance reaffirmed.

• Strategic initiatives advanced, including fintech structural separations, IHS transaction progress, and launch of Ambition 2030.

Financial highlights

• Service revenue reached R115.3 billion (+17.5%), data revenue up 29.2%, and fintech revenue up 13.3%* year-over-year.

• EBITDA before once-off items rose to R56.0 billion (+24.4%), with margin expanding to 47.6%.

• Equity free cash flow increased by 32.7% to R7.0 billion; cash conversion from earnings to free cash flow at 92.5%.

• Group leverage remains low at 0.3x, with liquidity headroom of R39.1 billion.

• CapEx intensity at 16.6%, with higher investment in growth markets like Nigeria.

Outlook and guidance

• Medium-term guidance reaffirmed: group service revenue growth in high-teens, ROCE in high-20% to low-30% range, and leverage at or below 1.0x.

• H2 2026 expected to see re-acceleration in service revenue, especially as Nigerian airtime lending normalises and South Africa's prepaid business recovers.

• Macro outlook remains uncertain, with inflation, energy prices, and geopolitical developments as key risks.

• Focus areas include prepaid recovery in South Africa, fintech platform rollout, capital discipline, and completing the IHS transaction.

• Anticipates closing the IHS transaction in the second half, with regulatory approvals progressing.