MTN Group has started 2026 on a stronger footing, with first-quarter core earnings up 27.9% as the telecoms giant squeezed more value out of its business and delivered standout performances in Nigeria and Ghana. For a company with more than 310 million customers across 16 African markets, the latest numbers show that MTN’s continental engine is still firing — even if MTN South Africa remains under pressure in the prepaid market.
The group told investors on Tuesday that earnings before interest, tax, depreciation and amortisation (Ebitda) rose to R27.6-billion for the three months ended 31 March, measured in constant currency. That translated into a healthier Ebitda margin of 47.6%, up by three percentage points, a sign that the telecoms group is benefiting from tighter cost discipline at a time when operating conditions remain uneven across the continent.
Revenue also moved in the right direction. Group service revenue, excluding currency effects, climbed 21.1% to R56.8-billion, underscoring how MTN’s scale and its diversified African footprint continue to support growth. But the real story in these latest results is where that growth came from: outside South Africa, the group’s biggest markets are doing the heavy lifting.
MTN Nigeria was the standout performer, with service revenue up 41.7%. MTN Ghana followed with a 35.7% increase, while MTN Cameroon delivered 14.4% growth and MTN Ivory Coast posted a solid 18.3% rise. Those numbers point to strong demand for data, mobile money and broader telecom services in some of MTN’s most important markets, helping offset weaker momentum closer to home.
For South African investors, though, the picture is more mixed. MTN said its South African prepaid business remains highly competitive, with service revenue edging up only 0.7%. That is not a collapse by any means, but it does show how difficult the local prepaid market remains as operators battle for price-sensitive customers in a tough economy.
The group said its prepaid recovery strategy is still on track. That plan includes improving distribution, refreshing product offers, tightening credit management and competing more aggressively in the market. In plain terms, MTN is trying to win back traction by making its offers more accessible and more relevant to customers who may be switching between networks based on price, coverage and convenience.
A key part of that effort appears to be showing early results. MTN said its business in South Africa is stabilising, with gains in cash recharges helping to offset a decline in XtraTime usage. XtraTime is the service that allows prepaid customers to borrow airtime and data when they run out, and a drop in its use may suggest customers are recharging more consistently rather than relying on short-term credit.
MTN Group earnings rise as Africa markets outpace South Africa
The wider group’s performance was still driven overwhelmingly by data and financial services. Data revenue remained MTN’s largest growth engine, rising 35.4%, while voice revenue increased 4.7%. Financial services revenue also surged 20%, reflecting the growing importance of mobile money and digital financial products to MTN’s business model across Africa.
That mix matters. As mobile usage shifts away from basic voice and towards streaming, social media, payments and bundled data products, operators like MTN are increasingly reliant on data-led growth. Our understanding is that this trend is particularly strong in markets where mobile money adoption is broadening access to financial services and helping telecoms groups deepen customer engagement.
The result is a business that is becoming more balanced, but also more exposed to currency volatility and market-specific risks. MTN’s decision to report in constant currency helps strip out the impact of exchange-rate swings, which can be severe in several of its African operations. Even so, the numbers still show real operational strength, not just accounting support.
Another issue hanging over the group is energy. MTN said it is working with partners to make sure it has enough power to meet ongoing diesel requirements, a reminder of the infrastructure challenges that continue to affect businesses across parts of Africa. In many markets, unreliable electricity supply still forces companies to run expensive backup generation, adding pressure to costs even when revenue is growing.
That makes the improvement in margins all the more important. A stronger 47.6% Ebitda margin suggests MTN is getting better at controlling overheads, which is crucial in a business where network expansion, power costs and regulatory demands can all eat into profits quickly. For a telecoms operator of this scale, small percentage gains can translate into billions of rand.
The latest update also comes amid intense investor scrutiny of MTN’s leadership and strategy, particularly after recent reports about executive pay and the broader debate over whether the group can keep delivering growth without leaving South Africa behind. We reported earlier on the significant compensation earned by CEO Ralph Mupita, and the latest operational performance will likely add to the conversation around whether the current leadership team is extracting enough value from the group’s vast African footprint.
Still, the headline message from Tuesday’s trading update is clear: MTN Group earnings are improving, and the business is benefiting from better execution in its larger African markets. The challenge now is whether that momentum can be sustained while South Africa remains subdued and external pressures such as currency swings and energy constraints continue to bite.
For now, MTN has given the market a firm signal that its African portfolio can still generate strong returns. The group’s first-quarter performance shows the benefits of diversification, disciplined cost control and rising demand for data and mobile financial services. But as always with MTN, the real test will be whether it can turn this early-year strength into a full-year result that satisfies investors across the continent.