Half Year 2026 MTN Group Limited Earnings Call Transcript
Key Points
- Strong commercial momentum with service revenue growth of 17.5% on a constant currency basis, within the medium-term guidance range.
- EBITDA margin reached its highest level in over a decade, driven by operating leverage and cost efficiency programs.
- Fintech ecosystem remains robust, with transaction values up over one-third to $331 billion and advanced services growing 32%.
- Adjusted headline earnings per share grew 21.3%, reflecting strong underlying earnings momentum.
- Equity free cash flow grew 32.7%, supporting the shareholder remuneration framework and a new share buyback program.
- Ghana delivered stellar performance with 32% service revenue growth and the highest EBITDA margin in the group at 61.8%.
- Group leverage remains low at 0.3 times, with strong liquidity and improved debt mix.
- Fintech service revenue growth of 13.3% was below guidance, impacted by the Uganda election shutdown, Ghana float rate change, and Nigeria airtime advance suspension.
- South Africa's prepaid voice segment remains a drag on growth, with a deliberate reset on airtime advances impacting revenue.
- Nigeria's service revenue growth was significantly affected by the FCCPC directive to suspend airtime advance, with a 13% print including this impact.
- Higher global oil prices have increased diesel costs in Nigeria, pressuring EBITDA margins, expected to be at the lower end of the guidance range.
- Impairment on Irancell investment of ZAR3.9 billion and hyperinflationary effects in Sudan, South Sudan, and Iran negatively impacted basic EPS.
- Contingent liabilities for uncertain tax exposures have doubled year-on-year, reflecting new tax assessments across the portfolio.
- The IHS transaction is complex, with regulatory approvals still pending in Nigeria, South Africa, and other regions, and requires additional debt funding.
(video playing)
Good afternoon, everyone, and welcome. It's my pleasure to welcome you to our interim results for the year -- for the six months ended June 30, 2026. And a warm welcome to everybody here in the room at MTN Innovation Center, including all the members of our investment community and the media. I also would like to welcome members of Exco and any Board members who've come. We also welcome everyone joining us remotely as well as all the MTN colleagues across our markets.
Before we begin, let me cover a few housekeeping points. First, our standard disclaimer and Safe Harbor statement is displayed on our screen now. There you have it. And it applies to today's presentation. (Event Instructions)
For connectivity, the WiFi details are now displayed on screen. I'll just pause a little to let you capture them. If you plan to share updates online, please use #MTNinterims and tag our corporate accounts at MTN Group on X and at MTN on LinkedIn. A QR code for the whole results booklet is also displayed
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