Africa’s biggest telecoms operator MTN Group rebounded to an annual profit and said this Monday it would pay shareholders a dividend that exceeded guidance and planned to buy back shares.

The strong performance in the year ended December 31 followed a difficult 2024 for the group, when its largest business, MTN Nigeria, ⁠was hit by sharp currency devaluations, surging inflation and high interest rates.

For the full year 2025, strong performances in MTN Nigeria and MTN Ghana, as well as R3.6 billion in cost savings ($213 million), delivered a profit before tax of R47.4 billion ($2.81 billion).

That compared to a restated loss before tax of R4.1 billion ($243 million) in 2024.

At the market opening in Johannesburg, South Africa (SA)-headquartered MTN shares surged 7.4% before paring gains to trade 4.8% higher at 11:43 CAT.

The operator declared a final dividend of 500 cents per share, ‌up ⁠45%, and 35% above the 370 cents minimum MTN had guided for the period.

Group Chief Executive Officer Ralph Mupita said in a media call that MTN would introduce an enhanced framework, targeting an annual distribution of 40% to 60% of equity-free cash flow in shareholder remuneration, effective now.

The framework includes ⁠a minimum cash dividend of 40% of equity‑free cash flow, with an additional 20% available for further cash payouts or share repurchases.

Mupita said the board had approved a buyback of up to ⁠6 billion rand ($356 million), “to be executed opportunistically over three years from 2026”.

The group’s service revenue rose 22.7% to R218.5 billion ($12.96 billion), led by strong growth of 54.9% and 35.9% ⁠in Nigeria and Ghana, respectively, the mobile operator said.

In the pre-paid segment, where competitive pressures are severe, MTN SA reported overall service revenue growth of 2%.

–Reuters–