MTN Group, Africa’s largest mobile operator, saw its shares fall sharply after reporting a drop in revenue in its home South African market and facing expanded U.S. investigations into its past operations.
The stock fell as much as 10 percent in a single day, its steepest decline in more than two years.
The company is reshuffling its leadership in response to the challenging performance at home. Ferdi Moolman has been appointed the new CEO of its South African unit, replacing Charles Molapisi, while Yolanda Cuba steps in as deputy CEO. The group also broadened the role of its finance chief to include mergers and acquisitions, signaling a more aggressive growth strategy.
South African sales fell 3.7 percent in the first half, reflecting a highly competitive and saturated prepaid market. By contrast, MTN’s Nigerian business—now its largest market—grew revenue by 37.5 percent, overtaking South Africa as the top contributor.
Despite these headwinds, the group as a whole swung to a profit of 9.75 billion rand in the first six months of the year, rebounding from a loss during the same period in 2024. That earlier loss was largely driven by currency devaluations in Nigeria and Ghana.
Ongoing U.S. Department of Justice probes into MTN’s former minority stake in Irancell and its exited operations in Afghanistan continue to weigh on investor confidence. Group CEO Ralph Mupita described the issues as “legacy matters,” but analysts warn that legal risks and guidance cuts in South Africa have created a mostly negative sentiment.
Can MTN regain its footing in its home market? Mupita hinted that industry consolidation may be necessary in a market with too many players and shrinking profits.
Source: newsghana.com.gh
