MTN Group at Crossroads: Can Fintech, Telkom Merger End JSE: MTN Share Price Dive?
After entering 2025 with strong momentum and a rebound from years of underperformance, MTN Group (JSE: MTN) is now facing renewed investor..
Quick overview
- MTN Group started 2025 strong but faced a significant stock price drop of over 20% after its half-year report, raising investor concerns.
- The company may revive merger talks with Telkom, potentially creating South Africa's largest telecom operator with nearly 63 million customers.
- Regional performance varied, with Nigeria showing impressive growth while South Africa struggled due to competition and regulatory challenges.
- MTN is expanding its fintech operations and will host its first Fintech Summit in September 2025 to foster collaboration in Africa's digital financial services.
After entering 2025 with strong momentum and a rebound from years of underperformance, MTN Group (JSE: MTN) is now facing renewed investor caution as uneven regional growth and a steep share price correction have clouded sentiment.
Strong Start, Sudden Setback
Early in August, MTN’s stock climbed to a peak of R174, supported by robust earnings, improved investor confidence, and technical strength in its chart. Yet, the optimism quickly faded. Following the release of its half-year report, the stock slumped more than 20%, landing near R139.5, where the 20-week SMA currently sits as support.
The rapid drop has left the stochastic indicator in oversold territory, suggesting a potential rebound — though the speed of the decline highlights investor nerves about regional performance.
MTNJ Chart Weekly – Can the 20 SMA Hold As Support?
Possible Telkom Merger Back on the Table
Adding another layer of intrigue, sources suggest that MTN may revive talks with Telkom before the end of the year. The potential merger would create South Africa’s largest telecom operator with nearly 63 million customers (39 million from MTN alone). Previous negotiations collapsed three years ago when rival Rain disrupted discussions, proposing that Telkom instead acquire Rain. Renewed talks, if successful, could significantly reshape South Africa’s telecom landscape.
Regional Results: Uneven Growth
MTN’s latest earnings underscored the sharp contrast between its markets. Nigeria was the star performer, with service revenue surging 54% in H1 2025. This restored investor confidence in MTN’s most critical growth engine, which had been hampered by currency fluctuations in prior quarters.
Ghana continued to impress with solid after-tax profit growth, reinforcing MTN’s West African success story, while South Africa struggled, with service revenue rising just 2.3%, weighed down by stiff competition, slowing prepaid demand, and a challenging regulatory environment. This weakness was a key factor in dampening investor enthusiasm.
Fintech Expansion and Upcoming Summit
Despite uneven telecom growth, MTN continues to push aggressively into financial technology. Its Fintech arm remains Africa’s largest platform by scale and reach, and the company will host its first MTN Fintech Summit in Johannesburg from September 9–11, 2025.
The event, themed “Take-Off”, will gather over 300 participants — including regulators, policymakers, innovators, and industry leaders — with the aim of strengthening collaboration, sharing insights, and creating new opportunities across Africa’s fast-evolving digital financial services ecosystem.
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