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MTN Group has approved a R6 billion ($375 million) share repurchase programme after delivering stronger earnings and cash generation in the first half of 2026, reinforcing its confidence in the telecom giant’s financial outlook.
The buyback was announced alongside the group’s interim results for the six months ended June 30, 2026, which showed a 24.4% increase in EBITDA in constant-currency terms to R56 billion.
The programme is expected to involve the repurchase of approximately 31 million ordinary shares, subject to market conditions and the company’s assessment of whether the purchases remain value-accretive to shareholders.
Buyback to Begin After Closed Period
MTN said the share repurchase will commence after the current closed period, in line with its capital allocation framework.
The board has authorised the company to spend up to R6 billion on the programme, signalling an intention to return additional capital to shareholders following the improvement in the group’s earnings and cash-generation profile.
MTN said the programme would continue for as long as market conditions allow and the repurchases remain beneficial to shareholders.
H1 Earnings Show Strong Momentum
The buyback comes against a backdrop of improved operating performance across the MTN Group.
Core earnings before interest, tax, depreciation and amortisation rose 24.4% to R56 billion, while the group’s EBITDA margin improved to 47.1%.
Adjusted headline earnings per share increased 21.3% to 793 cents, compared with 654 cents in the corresponding period, supported by stronger cash generation and growth in MTN’s digital and fintech businesses.
The performance strengthens the case for the group’s decision to return additional capital to investors while continuing to fund its expansion plans.
Reported Profit Hit by Iran Impairment
Despite the improvement in underlying performance, MTN’s reported headline earnings per share declined 5.8%, reflecting the impact of a major non-cash impairment.
The group recorded a R3.9 billion impairment on its 49% interest in Irancell, following the effects of hyperinflation and currency depreciation in Iran.
Foreign-exchange losses in South Sudan also weighed on reported earnings, highlighting the impact of operating across markets with significant currency and macroeconomic volatility.
Nigeria Remains a Key Growth Market
MTN’s operations in Nigeria were among the markets contributing to the group’s stronger performance.
Nigeria, Ghana and Uganda recorded strong revenue growth during the period, supporting the group’s broader earnings recovery.
The Nigerian business remains strategically important to MTN as the company continues to expand data, digital and fintech services while navigating intense competition and evolving regulatory requirements.
IHS Deal Moves Closer to Completion
The H1 results also come as MTN advances its proposed acquisition of IHS Towers, a transaction valued at about $6.2 billion.
Nigeria’s Federal Competition and Consumer Protection Commission has granted conditional approval for the transaction, requiring MTN to eventually sell down up to 30% of the Nigerian component of the IHS business at market prices. MTN said it is comfortable with the condition.
The acquisition remains one of MTN’s major strategic priorities as the group seeks greater control of telecommunications infrastructure across its markets.
MTN Reaffirms Medium-Term Targets
Alongside the buyback, the group reaffirmed its medium-term financial targets under its Ambition 2030 strategy.
The strategy is designed to guide MTN’s next phase of growth, with the company balancing investment in network infrastructure and digital services against its commitment to improving shareholder returns.
The decision to launch the buyback therefore reflects more than the latest earnings performance; it also signals that management believes the group has sufficient financial capacity to return capital while continuing to invest in its long-term growth plans.
The Bigger Picture
MTN’s R6 billion share repurchase marks a significant shift in its capital-return strategy at a time when the group is showing stronger operating momentum.
With EBITDA growth, improving margins and stronger adjusted earnings supporting the business, the buyback provides shareholders with another potential avenue for value creation.
However, the company still faces challenges from currency volatility, pressure in some international markets and the financial implications of its planned IHS acquisition.
For MTN, the immediate priority will be to sustain its operational recovery while executing its broader Ambition 2030 strategy and ensuring that capital returned to shareholders does not come at the expense of investment needed to support the next phase of growth.
