MTN Group, one of Africa's largest mobile network operators, said its service revenue climbed 9.9% year on year to $10.7 billion (R176.2 billion) in the first nine months of 2026, driven by third-quarter growth momentum in Nigeria and Ghana. The figures come from the group's results for the nine months ended September 30, 2026, filed on Monday in a JSE SENS announcement.

According to the filing, the performance was supported by data consumption, restored momentum in the Nigerian market, and sustained strength in Ghana.

The group's overall subscriber base expanded 7.2% to 322.9 million customers across its African markets, reflecting continued network expansion and distribution across the competitive markets in which it operates.

Data Drives Growth

Data revenue was the leading growth driver, surging 20.9% in reported currency to $5.4 billion (R88.9 billion). Data services now account for 50.4% of group service revenue, overtaking voice as the group's single largest revenue stream, while active data subscribers rose 9.6% to 181.7 million. The momentum was further fueled by a 27.3% increase in total data traffic to 22,754 petabytes and smartphone penetration reaching 66.4% of the subscriber base.

Voice revenue declined 3.1% on a reported basis to $2.8 billion (R46.0 billion), though it rose 3.4% in constant currency. The reported decline underscores the continued shift from airtime-based voice calls to calls carried over social media and over-the-top platforms.

Group earnings before interest, tax, depreciation and amortisation (EBITDA) expanded 22.9% in constant currency, lifting the overall EBITDA margin by 2.8 percentage points to 47.9%.

"Demand across the Group remained robust. Customer numbers increased by 7.2% to 322.9 million, and data revenue grew by 28.2%: it now accounts for 50.4% of service revenue," Group President and CEO Ralph Mupita said in the report.

He added that "EBITDA growth outpaced service revenue growth, reflecting operating leverage and our expense efficiency programme, which absorbed higher energy costs." Energy costs have been a persistent cost pressure for telecom operators across African markets, underscoring why efficiency programmes remain central to protecting margins.

Nigeria and Ghana Powered the Third Quarter

MTN Nigeria led data growth, with data revenue up 31.4% in the third quarter of 2026 as active data users rose to 57.2 million. The quarter marked a strong operational turnaround for the unit, where service revenue grew 19.7% and improved each month to reach 21.6% growth in September 2026. The recovery matters well beyond a single market: Nigeria is Africa's most populous country and one of MTN's largest operations.

MTN Ghana registered a 39.9% jump in quarterly data revenue, while its service revenue climbed 33.5%. The unit also secured 5G and mobile broadband spectrum under 15-year licenses valued at $202 million.

In South Africa, the third quarter was the strongest earnings quarter of the year, with EBITDA up 7.0% and margins expanding to 38.1%. The improvement was attributed to structural cost interventions, even as service revenue rose 1% over the nine months and was flat in the third quarter, with prepaid trends continuing to recover.

Fintech Expands but Trails Targets

MTN's fintech division, which continues its move toward a standalone business, extended its growth frontier as Mobile Money (MoMo) monthly active users rose 9.3% to 70.3 million. Total fintech transaction volumes surged 20.1% to 20.3 billion transactions, driving overall transaction value up 36.9% in constant currency to $512.5 billion. Mobile money has grown into a primary digital payments channel across much of the continent, extending financial services to many users outside traditional banking.

Overall fintech revenue grew 12.7% to $1.37 billion (R22.6 billion), below the group's medium-term targets. The shortfall reflected the temporary suspension of airtime and data lending services in Nigeria during the second quarter of 2026, lower interest rates on float balances in Ghana, and election-related disruptions in Uganda.

Excluding airtime advances, core MoMo revenue advanced 18.5% over the nine months. MTN Nigeria expects its airtime lending services, now operating under a new multi-partner model, to fully recover to pre-suspension levels by the end of the year.

Investment, Cash Flow and Balance Sheet Actions

The group invested $1.75 billion (R28.8 billion) in capital expenditure excluding leases, a capex intensity of 15.9%, focused on network coverage and infrastructure expansion across Nigeria, Côte d'Ivoire, Uganda, and Ghana — spending aimed at keeping pace with the region's fast-growing demand for data.

Free cash flow surged to R22.4 billion from R11.9 billion in the first nine months of 2025, while cash upstreamed to the group reached R21.4 billion. MTN also implemented a share buyback program, repurchasing $121.4 million (R2.0 billion) worth of shares during the third quarter, and settled its $500 million Eurobond at maturity on October 13, 2026.

Outlook

Looking ahead, Mupita said MTN remains focused on sustaining momentum in key markets such as Nigeria, Ghana, and South Africa, and on restoring fintech growth through airtime and data lending.

"For the rest of the year, we will focus on sustaining the commercial momentum across our markets," he said, adding that "all the while, we will focus on maintaining cost and capital discipline and delivering FCF growth and improving returns."

MTN also aims to address operational bottlenecks in Uganda and to finalize the pending $2.2 billion acquisition of IHS Holdings, one of the continent's largest tower companies, which would give the group control of the infrastructure that powers its connectivity.