Business · Companies · 7 hrs ago
MTN South Africa lifts margins as service revenue stalls and customers leave
MTN South Africa’s service revenue was flat in the third quarter, even as customers used more data.
The operator’s data revenue grew 6% in the quarter, while network traffic rose 27.9% over the first nine months of 2026.
Its prepaid customer base fell 6.9% to 27.4 million, and the total customer base dropped 2.7% to 39 million.
Prepaid revenue declined too, although its fall eased to 2.4% in the third quarter from 3.2% in the previous quarter.
Cost cuts lifted third-quarter EBITDA by 7%, and the profit margin widened by 3.6 percentage points to 38.1%.
That margin was above MTN’s medium-term target range, but revenue growth remained below the company’s goal of low-to-mid single digits.
MTN aims to restore revenue growth and expand home connectivity through fixed wireless access and fibre, while continuing cost savings; it said prepaid trends improved month by month.
MTN South Africa’s service revenue was flat in the third quarter of 2026, while revenue for the first nine months rose just 1% year on year.
Its prepaid customer base fell 6.9% year on year to 27.4 million, and its total customer base declined 2.7% to 39 million.
Despite weak revenue growth, third-quarter EBITDA rose 7% and the EBITDA margin increased by 3.6 percentage points to 38.1%.
Data revenue grew 6% in the quarter, but prepaid revenue fell 2.4%.
MTN said cost interventions were beginning to take effect and that it was prioritising a healthier, more valuable customer base.
- Who
- MTN South Africa, part of MTN Group.
- What
- Service revenue growth stalled in the third quarter as customer numbers fell, while profitability improved.
- When
- The results cover the third quarter and first nine months of 2026.
- Where
- South Africa.
- Why
- MTN attributed improved profitability to cost interventions. It said prepaid trends improved month on month and that it was prioritising a healthier, more valuable customer base.
This story does not have two clearly opposing sides.
MTN South Africa’s EBITDA margin was 32.6%.
Its EBITDA margin rose to 35.9%.
Service revenue was flat year on year, while EBITDA rose 7% and the margin reached 38.1%.
- Third-quarter service revenue
- Flat year on year
- Nine-month service revenue
- Up 1% year on year
- Prepaid customers
- 27.4 million, down 6.9% year on year
- Total customers
- 39 million, down 2.7%
- Third-quarter EBITDA margin
- 38.1%, up 3.6 percentage points
- Data revenue
- Up 6% in the third quarter
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What people are saying
While MTN SA’s service revenue was flat in Q3 2026 and up 1.0% YoY, it remains below our medium-term target
We were however encouraged by the month-on-month improvement in prepaid trends.
Performance is not yet at the level of our ambitions, but Q3 marks a clear improvement