Johannesburg – MTN South Africa recorded modest growth in the first half of 2026, with service revenue rising 1.5% to R21.94 billion as the telecommunications group continued efforts to reset its prepaid customer base.
The South African operation accounted for 19% of MTN Group’s total service revenue of R115.3 billion for the six months ended June 30, according to the group’s interim results.
However, profitability came under pressure. MTN South Africa’s EBITDA before once-off items fell 7.7% to R8.51 billion, while its EBITDA margin declined from 36.5% to 34.3%.
The weaker earnings performance came as the company continued to implement measures aimed at improving the quality and sustainability of its prepaid business.
MTN said the South African prepaid market remained challenging, with management taking “deliberate actions” to reset the customer base for healthier and more sustainable growth.
Despite the pressure in prepaid, MTN South Africa recorded stronger performance in several other parts of the business.
Data revenue increased 4% to R10.9 billion, while the company said postpaid, enterprise and wholesale businesses continued to deliver above-inflation growth.
The company has also been simplifying its prepaid bundles and strengthening its sales and distribution initiatives as it seeks to rebuild growth in the segment.
MTN South Africa’s fintech business, however, remained under pressure. Fintech revenue fell 16.3% to R701 million from R838 million a year earlier, while digital revenue declined 7.5% to R606 million.
Major growth driver
The South African operation’s performance contrasts sharply with some of MTN’s other major markets. Nigeria recorded 25.7% service revenue growth in constant-currency terms, while Ghana grew 32.3%.
At group level, MTN’s service revenue increased 17.5% in constant-currency terms, while EBITDA before once-off items rose 24.4% to R56 billion.
MTN said data remained a major growth driver across the group, with data revenue increasing 29.2% in constant-currency terms.
For South Africa, the focus for the remainder of the year is expected to remain on restoring sustainable prepaid growth, improving customer value and maintaining network leadership while managing costs.
MTN Group president and chief executive Ralph Mupita said the group was encouraged by the progress being made in South Africa, particularly in its postpaid, enterprise and data businesses.
The group has reaffirmed its medium-term guidance as it continues to invest in network capacity and digital services across its markets.
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Compiled by Betha Madhomu
