MTN Set to Gain R2 Billion Profit as IHS Towers Deal Strengthens Africa Telecom Dominance
MTN Group is preparing for a major earnings boost after revealing that its planned full takeover of IHS Towers could add R2.011 billion in profit during the 2025 financial year.
The announcement signals another bold expansion move by one of Africa’s biggest telecom operators. It also shows how valuable digital infrastructure has become as mobile demand rises across the continent.
MTN had already owned 25% of IHS Towers. However, the company moved last year to acquire the remaining 75%, a deal that would give it complete ownership of a tower network spanning nearly 29,000 sites across Africa.
Those towers serve multiple network operators in five key MTN markets. As a result, the transaction could give MTN deeper control over infrastructure costs, network quality and long-term expansion plans.
In February 2025, IHS Towers’ board accepted MTN’s offer of $8.50 per share. MTN then confirmed plans to buy all outstanding shares it did not already own.
Fresh financial disclosures show the acquisition would lift MTN’s profit after tax from R27.4 billion to R35.7 billion for 2025 on a pro forma basis. That represents a sharp increase of more than R8 billion.
Still, part of that gain comes from one-off items. These include a R3.2 billion gain from the disposal of a subsidiary and a R1.07 billion reversal of impairment on withholding tax receivables.
Once those temporary gains and transaction costs are removed, MTN expects the true recurring profit impact to settle at R2.011 billion. Even then, it remains a significant earnings jump.
The deal would also raise MTN’s EBITDA from R98.5 billion to R107.4 billion, reflecting 9% growth. Meanwhile, recurring EBITDA would reach R103.8 billion, up 5.3%.
Headline earnings per share, one of South Africa’s most watched profitability indicators, would increase 8.3% to R13.79 per share on a once-off basis.
However, the acquisition comes with higher leverage. MTN’s debt-to-EBITDA ratio would rise from 0.3x to 0.8x. Even so, many analysts may view that level as manageable for a business of MTN’s scale.
Ralph Mupita described the deal as a strategic turning point.
“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth,” he said.
Sam Darwish also praised the transaction, saying it deepens a long-standing partnership with MTN and combines Africa’s largest mobile operator with one of its biggest digital infrastructure platforms.
The takeover still requires approval from IHS shareholders and regulators in markets where both companies operate.
If approved, the transaction could become one of the most important telecom infrastructure deals in Africa this year. It would also strengthen MTN’s grip on the continent’s fast-growing connectivity economy.
As Africa’s appetite for data, fintech, streaming and digital services accelerates, ownership of telecom towers may prove just as valuable as owning customers.
For MTN, this is not only a profit play. It is a power move.
