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MTN Group Adjusts Outlook Following Double-Digit Growth and Updates on the Ongoing Turkcell Legal Conflict

MTN discusses the prolonged Turkcell case in relation to legal issues, providing updates about the appeal process.

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MTN Group Adjusts Forecast Following Double-Digit Growth and Provides Updates on the Ongoing...
MTN Group Adjusts Forecast Following Double-Digit Growth and Provides Updates on the Ongoing Turkcell Legal Dispute

MTN Group, a leading mobile telecommunications company with operations in 16 markets, presented its half-year results at the company's Innovation Centre in Johannesburg. Despite facing legal challenges, the company has managed to return to profitability in 2025.

U.S. Department of Justice Inquiry

As of August 2025, MTN Group is under a U.S. Department of Justice (DoJ) grand jury investigation related to its former subsidiary in Afghanistan (which it operated until April 2025) and its 49% stake in Iran’s state-run Irancell. The inquiry focuses on allegations that MTN, through its operations and affiliation with Irancell, supported anti-American militias in Afghanistan and Iraq between 2005 and 2010. MTN denies wrongdoing and is fully cooperating and voluntarily responding to information requests from the DoJ, with a motion to dismiss related complaints planned in the U.S. courts.

Regarding the Turkcell legal matter, the South African Supreme Court of Appeal (SCA) upheld MTN's position that Iranian law governs Turkcell's claims against MTN Group as of April 29, 2025. However, while affirming that Iranian law applies, the SCA also granted some relief to Turkcell. Specific further developments or resolutions were not detailed in the recent reports, implying that the Turkcell case remains legally significant but is partly settled on the choice of law issue.

Business Performance

Despite the legal challenges, MTN's advanced services revenue growth continues to be a structural growth driver for the company. Services such as payments, remittances, and bank-tech products grew by 42%, while service revenue growth in Nigeria surged by 54%. Fintech transaction volumes hit an impressive $212 billion in H1, and group data traffic rose by 41%.

In South Africa, revenue growth is muted at 2.3%, reflecting intense prepaid competition. To protect its market share, MTN is making tactical investments in pricing and distribution. The company now serves nearly 300 million subscribers across its markets.

EBITDA margins for the year in Nigeria are expected to exceed 50% due to an intensified CAPEX program. Nigeria's dividend-paying capacity has been restored earlier than expected, a significant milestone for shareholders.

Outlook and Challenges

MTN's Group President and CEO, Ralph Mupita, credited MTN's 17,000 employees across 16 markets for delivering solid results. Mupita emphasized the need for governments to adopt more enabling taxation policies to avoid stalling Africa's digital economy.

MTN is not accused of wrongdoing but is voluntarily cooperating with information requests from the U.S. Department of Justice. The company is part of the G6 operators alliance, continuing to engage authorities to push for fairer policies. However, ongoing regulatory and tax issues across its markets remain a challenge.

In conclusion, while MTN faces ongoing legal challenges, the company's focus remains on delivering solid results and ensuring every citizen has a data-capable handset. The company is preparing for eventual 2G shutdowns in South Africa and continues to invest in its advanced services to drive growth.

[1] MTN Group Faces U.S. Probe Over Afghanistan, Iran Ties [2] MTN Faces U.S. Probe Over Afghanistan, Iran Ties [3] South African Court Rules in Favour of MTN in Turkcell Case [4] MTN Says U.S. Probe Over Afghanistan, Iran Ties May Take Years [5] MTN's Legal Woes Continue to Affect Investor Confidence

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