MTN shareholders woke up to strong gains on Monday after the telecom giant announced a significantly higher dividend and a R6 billion share buyback programme, rewarding investors for a dramatic earnings turnaround in 2025.
The South African-listed company declared a final dividend of R5 per share for the full year, up 45% from R3.45 the previous year, bringing the total dividend for 2025 to R5 per share. Combined with the planned buyback, the capital return package could put billions of rand directly into the pockets of investors.
At the centre of the good news is MTN Nigeria, which has become the group’s biggest profit contributor. The Nigerian operation swung from a ₦400 billion loss in 2024 to a ₦1.1 trillion profit in 2025, powered by 55% service revenue growth to ₦5.2 trillion. This performance enabled MTN Nigeria to pay out ₦419.91 billion in dividends, the bulk of which flows straight back to the parent company and ultimately to MTN Group shareholders.
Group-level results were equally impressive. Headline earnings per share surged more than tenfold to R12.74, while service revenue rose 22.9% to R218 billion and EBITDA before once-off items jumped 64% to R98.5 billion. Operating free cash flow improved markedly, giving management the confidence to boost payouts and launch the buyback.
CEO Ralph Mupita called the year “excellent,” pointing to stabilising currencies, strong data demand, and operational discipline as the key drivers. The results mark the successful conclusion of the Ambition 2025 strategy, during which MTN grew its customer base beyond 300 million across Africa.
For ordinary investors holding MTN shares, whether through direct ownership, retirement funds, or unit trusts, the higher dividend means more cash in hand. Many South African and international funds with exposure to MTN will see an immediate boost, while the share buyback is expected to support the stock price by reducing the number of shares in circulation.
The share price reacted positively, rising over 7% in early Johannesburg trading as the market digested the improved capital returns and clearer earnings outlook for 2026.
Of course, risks remain. Persistent fibre vandalism in Nigeria, high energy costs, and potential regulatory changes could still pressure margins. Network efficiency in some markets continues to trail more mature operations, and heavy capital expenditure will be needed to sustain growth in fibre broadband, 5G, and fintech.
Also read: MTN Aims to Connect 30 Million Homes Across Africa with Fibre and Fixed Broadband
Nevertheless, for shareholders who endured years of currency volatility and headline losses, Monday’s announcement felt like overdue recognition. The combination of record profits, a 45% dividend increase, and a share buyback has turned what was once a story of survival into one of genuine recovery and reward.
As MTN shifts focus to its Ambition 2030 plans, investors are now betting that Nigeria’s momentum and the group’s broader digital push will continue delivering returns. For anyone with MTN shares in their portfolio, 2025 has delivered exactly what many had been waiting for: a real payday.
