JSE-listed MTN, Africa's largest mobile operator, surpassed 300 million customers in the quarter between July and September, according to its quarterly update released this morning.
Its growth to more than 300 million was a gain of 5.8% in the quarter and increases its share of Africa’s mobile market as it continues to outpace its peers. Based on McKinsey’s data on mobile subscriber penetration of 44%, its share of the continent's active mobile market has moved closer to 45%.
By comparison, JSE-listed Vodacom – Africa's second-largest mobile operator, according to Data Cup – now has 223.3 million customers, it said on 10 November. Vodacom is SA's largest mobile network operator (MNO).
Mobile subscriber penetration in Africa is expected to reach 50% by 2030, with 751 million unique mobile subscribers, up from 44% (527 million subscribers) in 2023, McKinsey said in May.
‘Disciplined execution’
Ralph Mupita, MTN Group president and CEO, in the trading update, says the operator’s achievement of more than 300 million customers is a “formative milestone” in its history.
MTN was born in South Africa in 1994 after securing a mobile licence, launching commercial services in June of that year.
Initially operating as M-Cell, the company focused on rapid expansion within South Africa, introducing services like prepaid plans and SMS in the mid-1990s. After rebranding to MTN in 2002, it started expanding into Africa before moving into the Middle East, which it fully exited last year apart from a minority holding in Irancell.
“The MTN Group delivered a strong performance in the nine-month period to September 2025,” comments Mupita. This, he says in a statement to shareholders issued this morning, reflects “improved macro-economic conditions and disciplined execution of our strategic and commercial priorities”.
Mupita adds that its results − which he called “pleasing” − were the result of a return to positive retained income and net equity positions by MTN Nigeria, which also resumed dividend payments with an interim declaration for the period.
Investors did not react positively to its figures, and stock declined 1.68% as of 10.40am, although its shares are up 147% over the past five years.
Peter Takaendesa, chief investment officer at Mergence Investment Managers, says MTN's “exposure to the rest of Africa has served it well over this period, with strong double-digit profit growth.
“The strong operational recovery in the rest of Africa operations is likely to continue over, at least, the next financial year, given strong data and fintech growth, as well as relatively supportive economic conditions.”
Yet, Takaendesa notes that MTN's local performance continues to weaken, which is in line with what Vodacom SA recently reported. “MTN SA is likely to remain a detractor over the mid-term.”
Solid progress
Fintech, currently a key growth area for mobile operators, saw the value of transactions increase 38% in constant currency to $342.3 billion. Revenue for this unit gained 23.1% in constant currency, when stripping out forex fluctuations.
Active Mobile Money users increased 5.3% to 64.3 million.
MTN says data revenue gained 35.4% in constant currency, with data traffic up 26.6% to 17 876 petabytes – or 3.8 billion standard, single-layer DVDs. The MNO also reported voice revenue up 10.8% under the same measurement of constant currency.
The MNO also said its earnings before interest, tax, depreciation and amortisation margin – a financial metric of operating profit when compared to revenue – gained around 6.7 percentage points to 45%.
Long-term obstacles
However, the company faces ongoing legal challenges. The stake in Irancell is the subject of ongoing litigation with losing bidder Turkcell, which is challenging MTN over alleged bribery to win the licence in Iran.
In a recent Supreme Court of Appeal ruling, Turkcell won approval to have the case tried in SA because MTN is domiciled here, even though the alleged offences occurred in Iran. MTN has said it will appeal this decision.
In addition, the group has been approached regarding a US Department of Justice (DOJ) grand jury investigation relating to MTN Group, its former subsidiary in Afghanistan and Irancell.
MTN, which is being probed for allegedly aiding terrorists in those countries, says it is cooperating with the DOJ and voluntarily responding to requests for information. In its interim results, released on 18 August, it said it “will update the market as appropriate on any material developments in the matter”.
Around two weeks later, it stated: “MTN is committed to the highest standards of ethical business practice and compliance with international laws where they are applicable.”
The MNO also says it “has not been charged with any violations of the law”. MTN does not have operational control over Irancell and does not benefit from this stake, it says in statements.
Takaendesa notes the DOJ matter creates ongoing uncertainty for investors.
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