MTN South Africa has revised its mid-term service revenue guidance downwards as the operator faces stiffer competition in its home market, despite a positive upswing in its operations in the rest of Africa.
The business “continues to navigate an environment characterised by elevated competitive intensity and ongoing pressure on consumers”, MTN Group said in its interim results to 30 June 2025, published on Monday.
“The medium-term target for service revenue growth has been revised to ‘low to mid-single-digit’ growth from ‘mid-single-digit’,” the group said.
Alongside the revised service revenue target, MTN South Africa has adjusted its forecast Ebitda margin range from 37-39% to 35-37%. MTN’s less optimistic outlook comes as performance figures for the South African subsidiary show a period of stagnation in the first half of the year.
MTN South Africa service revenue grew 2.3% year on year in the latest six-month reporting period, with data revenue growth of 4.3%.
Voice revenue declined 2.2% and revenue from fintech – largely led by MTN Mobile Money – was not much higher at 2.4%. The enterprise division was a standout performer, with revenue growth of 11.6% – the only MTN South Africa division to report double-digit growth.
In contrast, service revenue growth at group level (with South Africa included) was 22.4% year on year. Data and fintech revenue growth were 34% and 25%, respectively. Group Ebitda margin grew by seven percentage points 44.2%, lifted by a major turnaround in Nigeria.
Focus on prepaid
MTN described the South African operation’s performance as “resilient”, acknowledging that the macroeconomic environment had improved but that competition from rivals had intensified.
“While inflation remained low in the period and interest rates were reduced, the South African economy recorded modest growth (GDP up 0.1% in the first quarter). Consumer confidence remained muted during the first half overall, though showed some improvement in the second quarter,” said MTN.
Read: Ferdi Moolman is new CEO of MTN South Africa
Alongside the results announcement, MTN on Monday also announced a raft of leadership changes, including the exit of South Africa CEO Charles Molapisi, who will move to head up group technology, the role he held before his stint leading the South African business. Ferdi Moolman, who led the Nigerian operation – the group’s largest market – between 2016 and 2021, will take over as CEO from Molapisi.
Speaking at the group’s investor presentation on Monday, MTN Group CEO Ralph Mupita said the network operator will continue to implement interventions to accelerate South Africa’s performance, particularly in the prepaid segment, which is expected to drive improvements in topline growth and Ebidta margin towards the upper end of the targeted range over the medium term.
“The focus is really on prepaid,” said Mupita. – © 2025 NewsCentral Media
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