MTN announces board changes as share price falls over 9%

MTN’s share price plunged over 9% on Monday, even though it reported growth in its first half topline, profitability, and free cash flows, which were largely boosted by a turnaround at subsidiary MTN Nigeria, and despite lagging sales in South Africa.

A significant number of board changes were announced. The share price traded at R155.89 on Monday afternoon, a price still well above R90.28 a year ago.

Sales at its South Africa unit, its home market, dropped 3.7% in the six months to June 30. Group adjusted headline earnings a share increased by 76.1% to 657 cents per share. Reported HEPS increased by 352% to 645 cents. No interim dividend was declared.

The board said it has been evaluating their “Ambition 2025” strategy and, considering the evolving geopolitical, macroeconomic, and technology landscapes, resolved that the strategy remains appropriate.

The board however that the company’s focus was being streamlined into three principal platforms: “Connectivity,” “Fintech,” and “Digital Infrastructure.” The aim was for this three-platform approach to best position the group to capture value from the opportunities brought about by data adoption and financial inclusion across Africa.

In the Connectivity platform, there were opportunities to simplify and consolidate digital offerings. In Fintech, the business would become a scaled, digital-first platform. The positioning of the Digital Infrastructure business was being enhanced to better enable the exponential growth in digital workloads, as well as infusing AI across the business.

To strengthen strategy execution, MTN announced some executive committee (exco) changes, which would become effective from November 1, 2025.

Group CFO Tsholofelo Molefe would have her responsibilities expanded to incorporate the mergers and acquisitions (M&A) portfolio. Chief M&A and Business Development Officer Kholekile Ndamase would step down from the group exco and have a new reporting line to Tsholofelo, in her role as the steward for the capital allocation framework.

To streamline the Markets structure, good progress had been made in optimising the portfolio, including exits from the Middle East and some African markets. The structure and operating model of the Markets portfolio was being optimised to that it can better drive connectivity growth.

Middle East and North Africa Vice President (VP) Ismail Jaroud would step down from the group exco and become VP of Special Projects in the office of the Group President and CEO, focusing on portfolio optimisatio. He will also continue as CEO of MTN Dubai.

Markets Senior VP Ebenezer Asante would focus on accelerating growth in Ghana, Uganda, Rwanda, Zambia, South Sudan, Sudan, Liberia, and the joint ventures in Eswatini and Botswana. He will take on this revised role as the VP of Ghana, Southern and East Africa (SEA).

In addition to being CEO of MTN Nigeria, Karl Toriola would take on more responsibilities as VP of Francophone Africa, which encompasses Cameroon, Côte d'Ivoire, Benin, and Congo Brazzaville.

Current Group Chief Risk Officer Ferdi Moolman would succeed Charles Molapisi as CEO and Executive Director of MTN South Africa. 

Yolanda Cuba, currently VP for SEA, would step down from the group exco to become Deputy CEO and executive director of MTN SA. Moolman would step down from the MTN Nigeria board effective October 31, 2025.

Mazen Mroué, Group Chief Technology and Information Officer (GCTIO) and Digital Infrastructure CEO, would prioritise efforts to expand the fibre and data centre businesses across Africa. Additionally, he will work with MTN’s towerco partners, as well as lead network sharing opportunities across the group operations.

As the Digital Infrastructure platform evolved, Mazen would lead the group’s partnerships with non-terrestrial networks such as low-earth-orbit satellite operators.

Charles Molapisi would remain on the group exco, but will have additional responsibilities and focus on speeding up AI use case adoption and infusion across the business.

Selorm Adadevoh, currently Group Chief Commercial Officer (GCCO), will take on expanded responsibilities to include Strategy and Transformation.

Chief Strategy and Transformation Officer Chika Ekeji would step down from the group exco to focus on the growth of some of the emerging businesses aligned to the platform strategy.

Group revenue was up 22.4%, while the number of subscribers increased by 4.7% to 297.7 million. Active data subscribers increased by 10.3% to 164.4 million. MTN SA service revenue increased by 2.3%, MTN Nigeria’s service revenue was up 54.1%, and MTN Ghana’s service revenue increased by 39.9%. In fintech, active MoMo customers increased by 1.8% to 62.3 million.

BUSINESS REPORT