MTN Writes Down Iran Again as Its Trapped Stake Keeps Costing
SOUTH AFRICA · TELECOMS
Key Facts
The write-down: MTN Group booked impairment losses of R2.13 a share in the first half of 2026, relating to Iran. The comparable figure a year earlier was R1.04.
The earnings hit: Statutory earnings per share are expected to fall 20% to 30%, to between R3.77 and R4.31, from 539 cents.
The underlying business: Adjusted headline earnings per share are expected to rise 18% to 23%, to between R7.75 and R8.08.
The stake: MTN holds 49% of Irancell. The remaining 51% sits with Iranian state and defence-linked entities.
The trapped money: MTN has taken no capital or dividends out of Iran since May 2018, when US sanctions were reimposed.
Last year’s share: MTN’s share of Irancell’s 2025 earnings was US$136 million, none of it repatriable.
MTN has written down another R2.13 a share against its Iranian business, and the MTN Iran impairment will cut statutory earnings per share by 20% to 30%. The operating business underneath is growing strongly, which is precisely what makes the Iranian stake so awkward.
What the MTN Iran impairment does to the numbers
MTN Group published a trading statement for the half year to 30 June 2026 on 11 August. It disclosed impairment losses of R2.13 a share relating to Iran, more than double the R1.04 booked a year earlier.
Statutory earnings per share are expected to fall 20% to 30%, landing between R3.77 and R4.31 against 539 cents in the first half of 2025.
One point is worth stating plainly, because it has been reported incorrectly elsewhere. It is earnings per share that fall 20% to 30%, not the share price.
A trading statement cannot and does not forecast a share price.
Adjusted headline earnings per share, which strip out the impairment and other non-operational items, are expected to rise 18% to 23% to between R7.75 and R8.08.
A frozen asset, not a failing one
MTN owns 49% of Irancell, the country’s second-largest mobile operator. The other 51% is held by Iranian state and defence-linked entities.
The business itself works. MTN’s share of Irancell’s 2025 earnings came to US$136 million.
None of it can leave. United States sanctions reimposed in May 2018, after Washington withdrew from the nuclear agreement, cut off MTN’s ability to extract capital or dividends.
Chief executive Ralph Mupita has described it as a frozen asset. MTN has been trying to sell out since 2020 and has found no mechanism to do so.
Why the write-down keeps getting bigger
An impairment is an accounting judgement about what an asset is worth to its owner. For an asset that generates cash the owner cannot touch, that value falls as the prospect of ever touching it recedes.
Renewed conflict involving Iran has pushed that prospect further away, which is why the charge more than doubled year on year. Each escalation makes an exit less likely and the carrying value harder to defend.
The company is not writing off a bad business. It is writing off access to a good one.
That distinction is why the two earnings measures diverge so sharply this half, and why analysts will read the adjusted figure rather than the statutory one.
The legal tail
The Iranian stake is not only an accounting problem. MTN disclosed in August 2025 that it is the subject of a United States Department of Justice grand jury investigation covering its former Afghanistan business and the Irancell holding.
It is separately defending litigation brought under the US Anti-Terrorism Act by more than 500 American families whose relatives were killed or wounded in Iraq and Afghanistan. MTN denies wrongdoing in both matters.
For an African group with global lenders and index investors, that is a governance overhang independent of the write-downs.
It is also a reminder that operating in sanctioned markets carries costs long after the operations themselves have stopped mattering commercially.
What it says about African multinationals
MTN is Africa’s largest mobile operator, present across the continent and into the Middle East. Its scale is exactly what exposed it here.
Expanding into markets that Western firms avoided was a genuine competitive advantage for years, and Irancell was one of the trophies. The bill arrived a decade later.
African corporates scaling internationally now face the same trade-off in a harder geopolitical environment, a theme running through our Africa: The New Scramble coverage. Growth markets that nobody else wants are cheap for a reason.
There is a practical lesson in the two earnings lines. A company can be operationally healthy and still report a collapse in statutory profit, if a single stranded asset is being marked down.
The reverse is also true, which is why the adjusted figure exists and why it is disclosed separately.
The underlying group is performing well. Investors will spend this reporting season deciding how much of that performance the Iranian stake is entitled to obscure.
Frequently Asked Questions
What did MTN write down in Iran?
MTN Group booked impairment losses of R2.13 a share in the first half of 2026 relating to its Iranian business, up from R1.04 a year earlier. The write-down concerns Irancell, in which MTN holds 49%.
Does the write-down mean MTN’s share price falls 20-30%?
No. The 20% to 30% decline in the trading statement refers to statutory earnings per share, which are expected to fall to between R3.77 and R4.31 from 539 cents. A trading statement does not forecast a share price.
Is MTN’s underlying business shrinking?
No. Adjusted headline earnings per share are expected to rise 18% to 23%, to between R7.75 and R8.08. The divergence between that and statutory earnings is the Iran impairment and currency effects.
Why can’t MTN get its money out of Iran?
United States sanctions reimposed in May 2018 left MTN unable to extract capital or dividends. Its share of Irancell’s 2025 earnings was US$136 million, none of which could be repatriated.
Connected Coverage
African corporates are scaling across borders at speed, as described in Africa’s Corporate Giants Buy Their Way to Scale, while telecoms remains one of the most contested sectors on the continent, as seen in MTN’s Ghanaian mobile money lawsuit. More from the region is on our Southern Africa hub.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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