MTN has more people using data, but its South African revenue is barely growing

South Africans are using more mobile data on MTN's network, but the company is not seeing the same increase in the money it makes from those customers. During the first nine months of 2026, data traffic on the network grew by 27.9%. Postpaid customers used an average of 32.8GB a month, while prepaid customers consumed 5.2GB. Despite that increase, MTN South Africa's service revenue grew by just 1%.

The third quarter was particularly flat. Service revenue showed no year-on-year growth, even though data revenue increased by 6%. For MTN, the problem is not getting people online. It is getting more revenue from customers who are already using its services.

More time online, but not much more money

MTN's data revenue increased by 4.7% over the first nine months of the year. That is considerably slower than the 27.9% increase in network traffic. Postpaid data consumption rose by 31.9% to 32.8GB per month. Prepaid customers increased their average usage by 28.9% to 5.2GB. Smartphone penetration also reached 70.6%.

These figures show how much mobile internet has become part of everyday life. People are using their phones for messaging, video, banking, work and other online services. But higher consumption does not necessarily mean they are buying more expensive bundles or spending more each month.

MTN has not provided a detailed explanation for the difference between data usage and revenue growth. Group CEO Ralph Mupita admitted that the South African business is still falling short of its medium-term growth target. "While MTN SA's service revenue was flat in Q3 2026 and up 1.0% YoY, it remains below our medium-term target," he said.

Losing prepaid customers is a concern

The prepaid business is adding to MTN's difficulties. Prepaid revenue declined by 3% during the first nine months of 2026. The decline eased to 2.4% in the third quarter, compared with 3.2% in the previous quarter.

MTN also lost prepaid customers. Its prepaid base fell by 6.9% to 27.4 million, while its total South African customer base declined by 2.7% to 39 million. The company says it is focusing on keeping customers who generate more value. It has also pointed to pressure in the consumer voice market and lower mobile termination rates.

However, prepaid remains an important part of the local market. Many customers buy data when they can afford it, often in smaller bundles rather than through monthly contracts. If those customers leave or reduce their spending, the effect can be felt across the business. MTN has not explained how much of the decline is due to customers moving to other networks, buying less data or changing their spending habits.

Nigeria and Ghana are bringing in more data revenue

MTN's performance in other African markets makes South Africa's figures difficult to ignore. Data revenue in Nigeria grew by 31.4% in the third quarter, while Ghana recorded growth of 39.9%. South Africa managed 6%.

The markets are different, with their own pricing conditions, competition and customer spending patterns. Still, the gap shows that MTN is finding it easier to turn data demand into revenue in some countries than it is at home. Uganda is also facing pressure. MTN reported that data revenue growth there slowed from 17.5% in the second quarter to 7.8% in the third quarter. The company partly blamed unauthorised public Wi-Fi resellers, which allow people to access the internet without purchasing mobile data directly from operators. MTN has not identified this as a problem in South Africa, but the situation in Uganda shows how alternative internet services can affect mobile operators' earnings.

Fibre and fixed wireless are part of the response

MTN is looking beyond mobile data bundles to grow its South African business. It is expanding fibre and fixed wireless access services, targeting households that need a regular internet connection. The company is also cutting costs. Its South African EBITDA increased by 7% in the third quarter, while its EBITDA margin improved by 3.6 percentage points to 38.1%.

That improvement suggests the cost cutting work is having an effect. However, better margins do not solve the problem of slow revenue growth. MTN wants to get South African service revenue growth back into the low-to-mid single digits over the medium term. It will need to improve prepaid performance, retain customers and find ways to earn more from its growing data usage. For now, the figures leave MTN with an uncomfortable position: its customers are consuming considerably more data, but the additional usage is bringing in relatively little extra revenue. The company still has to work out how to make that growth pay.