MTN expects profits to fall by up to 30% as Iran investment takes a hit

MTN Group expects its first half earnings to fall from last year, with its Iranian investment accounting for much of the decline. The group expects earnings per share for the six months to 30 June 2026 to come in between 377 cents and 431 cents. That would put earnings 20% to 30% below the 539 cents MTN reported in the first half of 2025. The decline follows a significant impairment on MTN’s 49% stake in Irancell. MTN said economic and geopolitical conditions in Iran, including the war, hurt the investment during the period. Foreign exchange losses and hyperinflation added further pressure to the group’s results.

Irancell hits the numbers

The Irancell impairment contributed 213 cents to the difference between MTN’s earnings per share and headline earnings per share. The figure compares with 104 cents in the first half of 2025. MTN also recorded 178 cents in non-operational items during the period, up sharply from 12 cents a year earlier. Foreign exchange losses accounted for 126 cents of that amount, while hyperinflation contributed another 52 cents. Those costs have made MTN’s headline earnings look much weaker than the performance of its operating businesses. MTN expects adjusted headline earnings per share to rise by between 18% and 23%, from 657 cents in H1 2025 to between 775 cents and 808 cents.

Nigeria, Ghana and Uganda perform better

MTN said its businesses in Nigeria, Ghana and Uganda delivered solid operational results during the first half. Nigeria remains one of the group’s important markets, although its fintech operation has come under pressure. MTN has previously linked some of that pressure to the suspension of airtime lending in the country. The group also faces a tougher market in South Africa. Its prepaid business remained under pressure in the second quarter, with voice revenue proving particularly difficult. “The South African prepaid market continued to be tough in Q2 2026, specifically on voice service revenue,” MTN said.

IHS deal moves ahead

MTN is also moving towards full ownership of IHS Towers. IHS shareholders approved the transaction on 4 August, giving MTN the required majority to acquire the 75.3% stake it does not already own. The acquisition would give MTN 100% ownership of IHS and lead to the tower company leaving the New York Stock Exchange. The first half numbers show that MTN’s weaker reported earnings do not come from a broad decline across its telecom operations. The bigger hit comes from Irancell, currency movements and hyperinflation in Iran.