MTN Group is concerned about the Middle Eastern, Ukrainian, and other conflicts, warning that if they continue, the growing geopolitical risks may have a negative impact on its operational environment and prospects, including the telco's market outlook.
The caution was issued this week by MTN Group CEO, Ralph Mupita, as he announced the company's financial and operational results for 2025.
Despite delivering solid free cash flow, higher returns, and a 45% increase in shareholder dividends, Mupita is concerned that geopolitical uncertainties would interrupt the telco's momentum.
He said: “While current macro conditions are supportive of the business, we note the rapidly-evolving developments in global geopolitics. Notably, the conflicts in the Middle East, Ukraine and elsewhere create added uncertainty for global and local macro conditions, including potential impacts on indicators such as energy supply and prices, foreign exchange rate volatility and the trajectory of inflation in our markets. If sustained, the escalating geopolitical risks may adversely impact our operating environment and prospects, including our market guidance.”
Nonetheless, he said: “Operationally, we remain focused on maintaining the robust performances in MTN Nigeria, MTN Ghana and MTN Uganda; as well as the traction in various markets within our broader portfolio. We will also continue driving the initiatives to improve the performance in MTN SA, particularly in prepaid.”
The four named markets are the MTN Group’s crown jewels as they hold strategic value in the face of competition from rival telcos with a broad African presence, such as Airtel Africa and Vodacom Group.
Looking ahead, Mupita said: “In terms of ongoing key strategic initiatives, we prioritise completing the structural separation of the fintech businesses in Ghana, Uganda and Nigeria, as well as concluding MTN’s acquisition of IHS.
"More broadly, we are excited to progress our strategic journey through execution of Ambition 2030. Our medium-term guidance and framework has been updated to better embody our capital allocation discipline and returns focus.”
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