MTN warns gambling is hurting its prepaid business in South Africa
MTN South Africa's prepaid growth is hindered by online gambling and competition, leading to a 10.2% decline in Ebitda.Summary
MTN South Africa's prepaid business is facing a surprising drag from online gambling, which is consuming a growing share of disposable income, according to the company's 2025 integrated report. This issue, combined with competition from mobile virtual network operators (MVNOs), has led to muted growth, with service revenue increasing by only 2% compared to 22.7% for the broader MTN Group. Consequently, MTN South Africa reported a 10.2% decline in Ebitda and a contraction in margins. To address these challenges, the group has prioritized restoring profitable prepaid growth for 2026, focusing on refined regional offers, personalized bundle pricing, and channel optimization. Additionally, the company is leveraging home connectivity, including fixed-wireless access and fibre-to-the-home, as a key growth driver. The appointment of Ferdi Moolman as CEO late in 2025 signals a strategic shift to stabilize the South African operation.
(Source：Techcentral)