Gambling Habits Cut Into Mobile Revenue as Competition Intensifies
MTN has identified a growing trend of South Africans allocating disposable income to gambling alongside increased competition from mobile virtual network operators (MVNOs) as major headwinds for its business, particularly in the prepaid segment. The telecom giant reported that this shift is reducing subscriptions to traditional prepaid services.
The concerns are supported by data showing a significant surge in betting activity across the country. According to the National Gambling Board, gross revenue reached nearly R75 billion during the 2024/2025 financial year – a record high. Separate research from Olemera indicates that South Africans spent $58.7 billion on gambling in 2024, representing a 40% increase from the previous year.
Impact on MTN’s Performance
The trend has already affected MTN’s financial results in South Africa. While group service revenue grew by 22.7% (constant currency), MTN South Africa only managed a modest 2% increase for the year ended December 31, 2025.
This underperformance contrasts sharply with other key markets where MTN operates:
- Nigeria: Service revenue growth of 54.9%
- Ghana: Service revenue growth of 35.9%
As a result, the South African subsidiary has lost its position as MTN’s most profitable market to Nigeria.
Additional Challenges
The company also noted these specific impacts:
- Fintech revenue declined by 8.4%
- Digital revenue fell by 3.2%
- Voice revenue dropped by 4.2%
- Overall EBITDA declined by 10.2% with a margin contraction of 2.9 percentage points
Despite these challenges, MTN South Africa saw positive growth in data (up 4.5%) and enterprise services (up 13.6%).