MTN Plans $360m Share Buyback For Shareholders After Profit Recovery

MTN Group, has announced plans to repurchase shares worth up to R6bn after returning to profitability, as the company moves to strengthen shareholder returns following a challenging financial period in 2024.

The Johannesburg-based telecom giant said the share buyback programme will be executed over a three-year period beginning in 2026, following approval by its board. The move forms part of an enhanced capital allocation framework aimed at boosting shareholder remuneration.

The company disclosed the plan on Monday while announcing its financial results for the year ended December 31, 2025, which showed a strong recovery driven largely by improved performances in its key African markets, particularly Nigeria and Ghana.

MTN reported a profit before tax of R47.4bn for the 2025 financial year, a significant turnaround from the restated loss before tax of R4.1bn recorded in 2024.

The previous year had been difficult for the group as its largest subsidiary, MTN Nigeria, faced severe macroeconomic pressures, including sharp currency devaluations, high inflation and elevated interest rates.

Group Chief Executive Officer, Ralph Mupita, said during a media briefing that the improved financial performance allowed the company to reward shareholders through higher dividends and share repurchases.

According to him, MTN has introduced an enhanced shareholder distribution framework targeting annual payouts of between 40 per cent and 60 per cent of equity-free cash flow.

The policy sets a minimum cash dividend of 40 per cent of equity-free cash flow, while the remaining 20 per cent could be deployed for additional cash dividends or share repurchases depending on market conditions and capital allocation priorities.

“In line with this framework, the board has approved a share buyback programme of up to R6bn, which will be implemented opportunistically over three years from 2026,” Mupita said.

The group also declared a final dividend of 500 cents per share for the 2025 financial year, representing a 45 per cent increase compared with the previous year and exceeding the company’s earlier guidance of a minimum dividend of 370 cents per share by about 35 per cent.

Operationally, MTN recorded strong revenue expansion across its major markets. Group service revenue rose by 22.7 per cent to R218.5bn, supported by robust growth in West Africa.

Service revenue in Nigeria surged by 54.9 per cent during the year, while Ghana posted growth of 35.9 per cent, highlighting the continued importance of these markets to the group’s overall performance.

However, growth remained relatively modest in the more mature South African market, where intense competition in the prepaid segment weighed on performance. MTN South Africa reported service revenue growth of about two per cent during the period.

The company noted that disciplined cost management also contributed to the improved earnings performance. MTN achieved cost savings of about R3.6bn during the year as part of ongoing efficiency initiatives across its operations.

Analysts say the improved financial position, stronger operating performance and renewed focus on shareholder returns signal the telecom operator’s recovery from the macroeconomic disruptions that affected several of its African markets in the previous year.

With the planned share buyback, increased dividends and strengthened payout policy, MTN is seeking to reinforce investor confidence while maintaining flexibility to fund growth opportunities across its expanding digital and telecom services footprint on the continent.