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MTN Group handed shareholders a 45% dividend increase Monday after a dramatic profit recovery, with Africa's largest mobile operator declaring a final dividend of R5 per share for the year ended Dec. 31, 2025, up from R3.45 the previous year.
The payout came on the back of a stunning rebound in earnings. Reported headline earnings per share jumped more than tenfold to R12.74 from R1.10 in 2024, while operating free cash flow climbed nearly 82% to R57 billion.
Group CEO Ralph Mupita said the numbers reflected strong execution and a friendlier operating environment across key markets.
"Operationally, we delivered strong growth in earnings, free cash flow and improved returns," Mupita said, pointing to disciplined capital allocation and continued network investment as key drivers.
The turnaround was fueled by Nigeria and Ghana, where recovering currencies and a January 2025 tariff adjustment in Nigeria gave the business meaningful top-line relief. Service revenue rose 23% to R218.5 billion, while data revenue jumped nearly 38% to R101.5 billion as demand for mobile connectivity kept accelerating. Fintech revenue also pushed higher, buoyed by growing mobile money transaction volumes across MTN's African footprint.
The group's balance sheet told a similar story of improvement. Net debt to earnings fell to 0.3 times from 0.7 times a year earlier, giving MTN more room to return cash to shareholders.
The board approved an enhanced shareholder remuneration framework targeting annual distributions of 40% to 60% of equity-free cash flow, combining dividends with potential buybacks. Under the plan, MTN may repurchase up to R6 billion worth of shares over the next three years, pending shareholder approval.
Mupita flagged the broader geopolitical landscape as a risk to watch, citing Middle East tensions and their potential ripple effects on supply chains, energy prices and currency markets. MTN holds a non-controlling stake in Iran's Irancell but said it had no visibility into those operations and no personnel on the ground.
The MTN share price has fallen close to 10% over the past week, though it remains up more than 60% over the past year.
