Projected Increase of More Than Twofold in MNT's H1 2025 Profit per Share
In a positive turn of events, the telecoms giant, MTN Group, has reported a substantial rebound in earnings for the six months ended 30 June 2025. The expected performance is attributed to solid commercial execution, disciplined capital allocation, and improving macroeconomic conditions in key markets.
The trading statement, issued by MTN Group ahead of its half-year results, complies with the JSE Listings Requirements, which call for issuers to disclose when earnings will vary by at least 20 percent from the previous corresponding period. The company anticipates earnings per share (EPS) to increase by more than 200 percent, from a loss of 409 cents in the first half of 2024 to a range of between 495 and 577 cents in the current period.
The improvement in MTN Group's EPS and HEPS is supported by more stable inflation and foreign exchange environments across its footprint. The Group's service revenue, particularly in key markets like Nigeria, has shown robust growth. In Q1 2025, the service revenue increased nearly 20%, significantly contributing to the overall earnings rebound.
The trading statement does not mention any specific update on the anticipated increase in EPS and HEPS, but it is expected to be within the ranges previously stated. The Group continues to face headwinds in its South African operations, particularly within the prepaid segment.
Including the non-operational impairment losses, the projected HEPS figures for the first half of 2025 are expected to rise by more than 300 percent, from a loss of 256 cents in H1 2024 to a positive range between 614 and 666 cents. The difference between EPS and HEPS is mainly due to these non-operational impairment losses. Some downward pressure on EPS remains due to impairment losses related to investments, goodwill, and fixed assets, amounting to approximately 104 cents per share.
Both Nigeria and Ghana operations reported their half-year financials on 30 July and 31 July respectively, showing strong growth in service revenue and profitability. The Group's strategic transactions, such as equity placements to fund acquisitions like the Birmingham Bullring purchase, indicate active portfolio management to support growth and value creation, which positively impacts earnings in the medium term.
In summary, MTN Group’s EPS and HEPS growth in H1 2025 was driven by nearly 20% service revenue growth, strong performance in strategic market segments (notably Nigeria), and active capital raising and investment initiatives supporting business expansion and profitability recovery. The overall positive momentum of MTN's broader market portfolio has contributed meaningfully to the Group's performance for the period. The anticipated recovery is largely driven by strong operational and financial results from MTN's key markets, particularly Nigeria and Ghana. The audited financial results for the half-year are expected to be published on the JSE's Stock Exchange News Service (SENS) on Monday, 18 August 2025.
The trading statement issued by MTN Group implies an intent to invest in technology and business expansion, given the mention of strategic transactions like equity placements for acquisitions.
The growth in MTN Group's earnings, primarily driven by service revenue growth and strong performance in key markets like Nigeria, offers potential opportunities for finance and telecoms investors.
