MTN flags gambling surge, MVNOs’ competition as South Africa prepaid revenue stagnates at 2% growth

MTN has identified gambling and intense competition from mobile virtual network operators (MVNOs) as a major threat to its operation in South Africa, particularly in its prepaid business.

The leading telecoms company noted that the growing quota of subscribers’ disposable income on gambling is reducing subscriptions to prepaid services. It also identified local pricing offers as a competitive advantage for MVNOs. 

According to its 2025 integrated report, published on Wednesday, the group noted that the country’s macroeconomic environment has been unfavourable, citing the significant surge in South Africa’s betting activities. 

Research by the National Gambling Board noted that gambling saw a record surge of close to R75 billion gross revenue during the 2024/2025 financial year. Another report by financial planners Olemera shows that about $58.7 billion was spent on gambling in 2024, 40% higher than in 2023. 

The reports support MTN’s concerns, highlighting widespread gambling activity among South Africans. And this impacted the telco’s earnings in 2025.

Also Read: MTN spent $1.2b with black-owned suppliers in 2025 to meet SA local laws target.

What the numbers are saying for MTN South Africa 

In the earnings for the financial year ended on 31 December, MTN South Africa recorded service revenue growth of just 2%, against group constant-currency service revenue growth of 22.7%. 

In other significant markets of the group, MTN Nigeria grew at 54.9% and MTN Ghana at 35.9% on the same basis. As a result of the performance, the South African subsidiary lost its place to the Nigerian subsidiary as the group’s most profitable market. 

Furthermore, South Africa’s fintech revenue declined 8.4% in the year, with digital revenue falling by 3.2% and voice revenue dropping by 4.2%. On a positive note, data revenue grew by 4.5% while enterprise service revenue increased by 13.6%.

Overall, this led to a 10.2% decline in MTN South Africa’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA). Also, the EBITDA margin contracted 2.9 percentage points to 34.5%.

In its plans for growth in 2026, the group said the top priority is “restoring profitable growth of prepaid in South Africa” and setting up fintech execution. It noted that the plans will be driven by refined regional offers, more granular bundle-pricing personalisation and channel optimisation.

Also, home connectivity is expected to be a key growth driver, focusing on expanding fixed-wireless access and fibre-to-the-home services.

MTN’s renewed strategy comes at a time when market pressures and competition for consumer spending are intensifying in the South African telecom sector.