MTN Group, Africa's largest telecom operator, expects headline earnings per share to decline by as much as 30% in the first half of 2026, even as its underlying business performance strengthens. The divergence stems from a major impairment on MTN's 49% stake in Irancell, an Iranian telecom operator, compounded by foreign exchange losses and hyperinflation effects. MTN's Irancell holding, acquired during its mid-2000s expansion into the Middle East, has long exposed the group to currency and geopolitical volatility in a market subject to international sanctions.

According to the company's trading statement issued on Tuesday, MTN took a material hit on its Irancell investment due to geopolitical and economic conditions during the period, including the war in Iran. Impairment losses accounted for 213 cents of the difference between H1 2026 earnings per share and headline earnings per share, more than double the 104 cents recorded a year earlier.

The Group also reported 178 cents in non-operational items, up significantly from 12 cents in H1 2025. These included a 52-cent impact from hyperinflation and 126 cents from foreign exchange losses. Hyperinflation accounting, required under international financial reporting standards for economies experiencing severe inflation, can materially distort reported results for multinational operators with exposure to affected markets. The combined effect is a sharp decline in reported earnings per share that does not directly reflect the performance of MTN's core telecom operations.

MTN said it expects earnings per share for the six months ended June 30 to come in between 377 cents and 431 cents, representing a 20% to 30% decrease from the 539 cents reported in H1 2025. However, adjusted headline earnings per share — which the company considers a more accurate measure of operating performance — is projected to rise 18% to 23%, from 657 cents in H1 2025 to between 775 cents and 808 cents.

"Overall, the MTN Group delivered a resilient performance, with strong commercial execution and disciplined capital allocation in the period," the company said in its statement.

MTN also reported EBITDA margin expansion, free cash flow growth, and cash upstreaming to the Group.

On a regional basis, MTN said its operations in Nigeria, Ghana, and Uganda delivered "solid operational performance" during the first half. Nigeria remains an important growth market, though its fintech business is facing pressure, partly driven by the regulatory suspension of airtime lending. Airtime lending — short-term credit extended to prepaid subscribers — has been a meaningful revenue contributor for African telecom operators serving large unbanked populations, making the regulatory pause a notable drag on the segment.

MTN's South African business is experiencing headwinds. The group said the country's prepaid market remained challenging in Q2 2026, particularly for voice revenue. "As previously communicated and expected, the South African prepaid market continued to be tough in Q2 2026, specifically on voice service revenue," MTN said. The pressure reflects a broader industry shift as consumers migrate from traditional voice services toward data and digital offerings.

The company is also advancing its proposed IHS Towers acquisition. IHS shareholders voted in favor of the deal on August 4, giving MTN the required two-thirds majority to acquire the 75.3% of IHS it does not already own. The transaction would bring MTN's stake to 100% and result in IHS being delisted from the New York Stock Exchange. Full ownership of IHS, one of the largest tower operators across Africa, would give MTN greater control over a critical layer of its network infrastructure.

MTN said it expects to publish its full interim results on or about August 24.