MTN South Africa Claims Gambling is Crimpling Their Prepaid Business
MTN South Africa claims that gambling has in all ways contributed to its recent downwards returns spiral. The group cited the surge in betting activity as a key reason its local mobile arm is struggling to grow.
In its 2025 integrated report, MTN said muted prepaid growth in South Africa is exacerbated by the growing share of disposable income that is being spent on online gambling. The company also flagged competition from mobile virtual network operators (MVNOs) as a feature of the local pricing environment.
Bad 2025 for MTN South Africa!
MTN South Africa lagged badly behind the rest of MTN Group’s portfolio in the 2025 financial year. The local operation managed service revenue growth of just 2%, against group constant-currency service revenue growth of 22.7%. MTN Nigeria grew at 54.9% and MTN Ghana at 35.9% on the same basis.
MTN South Africa’s fintech revenue declined 8.4% in the year, digital revenue fell 3.2% and voice revenue dropped 4.2%. Data revenue – the only consumer-facing segment showing meaningful momentum – grew 4.5%. Enterprise service revenue, more insulated from consumer wallet pressure, increased by 13.6%.
The combined effect was a 10.2% decline in MTN South Africa’s earnings. This was before interest, tax, depreciation and amortisation (Ebitda) – or 10.1% excluding a loss on the disposal of towers. The Ebitda margin contracted 2.9 percentage points to 34.5%.
The group placed restoring profitable growth of prepaid in South Africa alongside fintech execution as one of MTN’s top priorities for 2026. It said overall macroeconomic pressures and competition for consumer wallet share continue to exacerbate the persistent competitive intensity in the South African telecoms sector.
The Master Plan for 2026!
MTN South Africa’s 2026 plan, according to the report, will lean on refined regional offers, more granular bundle-pricing personalisation and channel optimisation. Home connectivity is expected to be a key growth driver, with a focus on expanding fixed-wireless access and fibre-to-the-home uptake.
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MTN South Africa raised prices in February 2025 and is positioning post-paid contracts as a more resilient pocket of growth.The company conceded that MVNOs have continued to be a feature in the competitive and pricing environments.
Ferdi Moolman, a former CEO of MTN Nigeria, took over as CEO of MTN South Africa late in 2025, replacing Charles Molapisi, who was named group chief technology and information officer.
