MTN Group Launches $375M Share Buyback Amid Profit Rise

MTN Group, a South African mobile operator, announced a 6 billion rand ($375 million) share buyback program, approved by its board, following a 21.3% increase in half-year adjusted profit. The program is set to commence on Monday.

MTN's Chief Executive Officer, Ralph Mupita, reported that adjusted Headline Earnings Per Share (HEPS) rose to 793 cents for the six months ending June 30, up from 654 cents the previous year. However, reported HEPS fell by 5.8% due to a 3.9 billion rand non-cash impairment on its 49% stake in Irancell, attributed to Iran's hyperinflation and the rial's depreciation.

The company is seeking to exit Iran amidst U.S. sanctions that have hindered its financial operations there. MTN's service revenue increased by 17.5% to 115.3 billion rand, driven by growth in Nigeria, Ghana, and Uganda.

Core earnings rose 24.4% to 56 billion rand, with an EBITDA margin of 47.1%. Regulatory hurdles remain for MTN's tower deal with IHS Towers in Nigeria.