MTN Group is making more money from its core telecom business, but its profits are heading in the opposite direction. Africa’s largest telecom operator expects headline earnings per share to fall by as much as 30% in the first half of 2026, even as its underlying earnings rise by up to 23%.
The reason is Iran.
A large impairment on MTN’s 49% stake in Irancell, an Iranian telecom operator, alongside foreign exchange losses and hyperinflation, is dragging down headline earnings despite stronger underlying performance, according to the company’s trading statement on Tuesday.
MTN’s underlying earnings are expected to rise by up to 23%, but a write-down on its Irancell investment, compounded by hyperinflation and foreign exchange losses, is dragging reported earnings lower.
MTN said it took a material hit on its 49% investment in Irancell because of geopolitical and economic conditions during the period, including the war in Iran. The impairment losses accounted for 213 cents of the difference between H1 2026 earnings per share and headline earnings per share, compared with 104 cents a year earlier.
