MTN Sees First-Half Profit Jump on Nigeria, Ghana Mobile Gains

MTN Group Ltd. said adjusted first-half earnings climbed as much as 23% after improved results from the Nigerian, Ghanaian and Ugandan operations of Africa’s biggest mobile-network operator.

Adjusted headline earnings per share for the six months ended June 30 are in a range of 7.75 rand to 8.08 rand compared with 6.57 rand a year earlier, the Johannesburg-based company said in a statement Tuesday.

The operational performance at the company’s units is translating into stronger profit, with rising data usage, fintech adoption and some economic stability improving results from the region.

Net income for its business in Nigeria, its biggest market with about 81 million subscribers, surged 71% in the period, while profit at its Ghanaian operation climbed 43%, the units said in separate statements in the last week of July. In Uganda, profit after tax climbed 38%, the firm said Aug. 7.

So-called headline earnings were likely flat because of impairment losses relating to the company’s investment in Iran.

MTN in 2020 decided to sell its 49% stake in its Iranian venture, but US sanctions against the Middle Eastern nation — in place since May 2018 — have stymied the efforts, with the conflict that broke out on Feb. 28 further hindering the plan.

MTN shares declined 4% after the update to the lowest since April 21. The drop pared their gain this year to 16%, valuing the business at 362 billion rand ($22 billion).

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