MTN Group Ltd., Africa's largest wireless carrier, reported a return to profit and announced a dividend that exceeded market expectations, while outlining plans for potential share buybacks as part of a new shareholder-remuneration strategy. The Johannesburg-based telecommunications company declared a dividend of 5 rand per share for 2025, surpassing the median estimate of 3.82 rand per share in a Bloomberg survey. The payout was announced in a statement released on Monday.
MTN’s board also approved a revised shareholder-remuneration framework aimed at boosting investor returns. The policy includes a minimum annual distribution of 40% of equity-free cash flow, with the possibility of increasing that to as much as 60% through additional dividends or share buybacks.
Under the new framework, the company said it may repurchase shares worth up to 6 billion rand ($356 million) over the next three years, signaling confidence in its financial recovery and long-term growth prospects.
The telecoms group reported profit of 20.3 billion rand, rebounding strongly after the previous year’s earnings were hit by currency devaluations across several of its markets. The currency shocks had particularly affected Nigeria, MTN’s second-largest market, during 2024.
While the company’s core African operations improved, challenges remain in its long-running attempt to exit its investment in Iran. MTN decided in 2020 to sell its 49% stake in its Iranian venture, but U.S. sanctions imposed since May 2018 have complicated efforts to complete the divestment.
The situation has worsened following a conflict that erupted on Feb. 28, further delaying the company’s exit from the business. What was once a profitable presence in a large emerging market has since become one of the group’s most difficult operations.
Chief Executive Officer Ralph Mupita said MTN no longer has staff stationed in the country. The company had previously seconded three employees to Iran, but as of mid-January their presence had ended.
“We don’t have people on the ground,” Mupita said. “We have no insights into the operational detail on the network in current time.”
MTN has held its non-controlling stake in Irancell since 2006, when it entered into a partnership with the Iranian government. However, sanctions have prevented the company from extracting profits or investing further in the operation for nearly eight years.
“The investment in Irancell is subject to a number of sovereign, regulatory and commercial risks, which could result in the group failing to realize full market value of its investment should it be required to dispose of any portion thereof,” the company said.
Beyond its telecom operations, MTN is expanding its digital infrastructure footprint. The group is also in the process of acquiring tower assets from IHS Holdings Ltd., which will be housed within its infrastructure unit alongside its fiber network and data-center businesses.
“We have the fiber business that we have been building out with the east to west of Africa link, and the data centers that are being carved out, and then the towers will be the third pillar in the digital-infrastructure space,” Mupita said.
