MTN Group Posts 33% Surge in Q1 Profit on Strong African Growth

South Africa’s MTN Group has kicked off 2025 on a strong note, posting a 33% increase in core profit for the first quarter ended 31 March. The performance reflects robust service revenue growth across key African markets and cost containment in its domestic operations.

In a trading update released on Monday, MTN said earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 33% on a constant-currency basis. The group also recorded a 5.3 percentage point improvement in its EBITDA margin, which now stands at 44.1%.

While the telecom giant did not disclose the exact EBITDA figure, it attributed the jump to continued momentum in service revenue and disciplined cost control—especially regarding device sales in South Africa.

Nigeria and Ghana Power Regional Growth

MTN’s performance was fuelled by substantial service revenue gains in its West African operations. In Nigeria, Africa’s most populous market, service revenue soared by 40.4%, while Ghana posted 39.5% growth.

The company highlighted these markets as strong contributors to group-level revenue, which increased by 10.4% overall, or 19.8% when measured in constant currency.

Challenges Persist in South Africa

Back home, MTN South Africa faced a tough market environment, particularly in the highly competitive prepaid segment. Despite this, the unit delivered modest growth, with service revenue rising 2.6%.

“MTN South Africa continues to navigate a challenging and competitive landscape, but we are encouraged by the underlying operational improvements,” the group said in a statement.

Improved Macroeconomic Climate

MTN also pointed to a stabilising macroeconomic environment across several of its operating regions. This stability has supported stronger consumer demand and improved exchange rate conditions, especially in key markets like Nigeria and Ghana.

While MTN did not provide full-year guidance in its Q1 report, the group reiterated its commitment to maintaining operational efficiency and growing its fintech and data services offerings.

With a footprint spanning 19 countries and over 280 million subscribers, MTN remains one of Africa’s largest mobile operators and a bellwether for the continent’s telecommunications sector.

The strong quarterly results are likely to boost investor confidence and support the group’s broader strategy to expand digital and financial inclusion across Africa.

{Source: Reuters}

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