South Africa-based telecom giant MTN Group has reported a strong start to 2026, posting a significant rise in first-quarter core earnings largely fueled by robust performances from its operations in Nigeria and Ghana.
The continent’s largest mobile network operator said on Tuesday that its earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 27.9 percent in constant currency for the three months ended March 31, reaching 27.6 billion rand, equivalent to about $1.67 billion.
With a subscriber base exceeding 310 million customers spread across 16 African markets, MTN said the latest performance reflects growing demand for telecom and digital services across key regions despite persistent economic pressures in several countries.
Nigeria, one of MTN’s biggest markets, played a major role in the earnings boost. Earlier, MTN Nigeria announced a profit after tax of N355.5 billion for the first quarter of 2026, representing a sharp 165.9 percent increase compared to the same period last year.
The Nigerian operation’s return to strong profitability comes amid ongoing efforts to stabilize costs, expand data services, and improve operational efficiency after previous periods marked by currency volatility and inflationary pressures.
However, despite the strong quarterly showing, MTN Nigeria warned that rising energy costs could weigh on profitability in the months ahead. In its unaudited Q1 results released last month, the telecom operator projected a possible decline of between 1.8 and 2.0 percentage points in its full-year EBITDA margin if diesel prices average around N2,000 per litre during the second half of the year.
The warning highlights the mounting operational challenges facing telecom companies in Nigeria, where many operators rely heavily on diesel-powered generators to keep network infrastructure running amid inconsistent electricity supply.
Commenting on the outlook, MTN Nigeria Chief Executive Officer, Karl Toriola, said the company remains cautious about developments in the broader business environment.
“We continue to monitor developments in the operating environment, including energy price volatility and regulatory dynamics,” Toriola said in the company’s Q1 report.
Industry analysts say MTN’s latest earnings underscore the resilience of Africa’s telecom sector, particularly in high-growth markets where increasing smartphone adoption and digital connectivity continue to drive revenue expansion despite inflation and currency challenges.