Strong Earnings Revive MTN Shares After Prolonged Slump for African Mobile Network
MTN share price has shown resilience in 2025 as strong earnings attract investors, while major stock indices have crumbled, which suggests..
Quick overview
- MTN's share price has rebounded significantly in 2025, driven by strong earnings and renewed investor confidence.
- After a prolonged decline, the stock has shown resilience, climbing from a low of 7,100 ZAC to 12,600 ZAC amid global market turbulence.
- Solid financial performance, particularly in Nigeria, and attractive valuation metrics position MTN as a compelling investment opportunity.
- Analysts project annual revenue growth of 7.7% for MTN over the next three years, outpacing the broader telecom industry's expected growth.
MTN share price has shown resilience in 2025 as strong earnings attract investors, while major stock indices have crumbled, which suggests further upside momentum ahead.
Stock Reversal Gains Momentum After Prolonged Decline
After enduring a prolonged downtrend since 2022, MTN Group Limited (JSE:MTN) is showing signs of a meaningful recovery. Following a period of stabilization in the final quarter of 2024, the stock began to climb in early 2025, buoyed by renewed investor confidence and stronger-than-expected earnings results.
By August 2024, MTN’s share price had dropped to a low of 7,100 ZAC, with weekly moving averages acting as persistent resistance. However, a sharp rebound began to materialize by late March 2025, pushing the price up to 12,600 ZAC. This rally coincided with broader global market turbulence triggered by rising trade tensions, particularly after the U.S. responded to retaliatory tariffs from other nations.
MTN Share Chart Weekly – A Break Above 200 SMA Opens the Door for Buyers
Despite this backdrop of uncertainty, MTN shares found solid footing. The price climbed decisively above key moving averages, which flipped from resistance to support on the weekly chart—signaling a potential trend reversal. Even as global indices such as the S&P 500 and Dow Jones faltered in April, MTN stock demonstrated resilience. After a sharp 20% correction in early April, the price stabilized just below the 200-week SMA, and a bullish doji candlestick formed—a classic reversal pattern.
Now trading above 11,000 ZAC, MTN appears technically poised for further gains. The stochastic oscillator suggests the stock is oversold, adding to the bullish case, particularly as global tariff talks show signs of progress. Easing trade tensions could act as a macro tailwind for equity markets, supporting further upside for the stock.
Strong Financial Performance Underscores Recovery Potential
MTN’s resurgence is supported not only by technical signals but by solid fundamental performance. The telecom giant reported a robust operational and financial year for 2024, with an especially strong second half—this despite significant currency devaluation in Nigeria, one of its largest markets. In constant-currency terms, service revenue rose by 14%, though reported figures declined 15% in rand terms due to FX pressure.
MTN Nigeria’s performance stood out, delivering a 35.6% surge in service revenue. This growth is expected to accelerate further in 2025 following tariff changes introduced in February. MTN South Africa also posted steady results, with a 3.1% service revenue increase and healthy EBITDA margins holding at 37.4%.
Looking forward, analysts tracking MTN project annual revenue growth of 7.7% over the next three years, compared to the broader telecom industry’s expected rate of 5.6%. That outperformance potential adds another layer of investor appeal.
Valuation Still Attractive Despite Rebound
Even after its recent rebound, MTN Group remains attractively valued. While many of South Africa’s wireless telecom firms trade at price-to-sales (P/S) ratios north of 1.7x, MTN’s sits at a more modest 1.1x. This relative undervaluation, combined with strong earnings momentum, positions the stock as a compelling opportunity for value and growth investors alike.
Conclusion: Momentum Builds for MTN Stock Amid Macro and Earnings Tailwinds
MTN Group’s share price may have lagged for much of the past two years, but its recent breakout reflects a potential turning point. Strong earnings, particularly in high-growth markets like Nigeria, a supportive technical setup, and improving global trade sentiment all point to a brighter outlook.
With forecasts pointing to sustained revenue expansion and improving margins, MTN appears well-positioned to continue its recovery. If expense control and favorable macro conditions hold, the stock could be on track for a multi-quarter re-rating.
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