Walking away: MTN finally calls it quits on Iran in an expensive, but necessary break-up
A lot has happened in the eight years since MTN’s Iran assets last contributed positively to the homegrown mobile telecoms network’s balance sheet and the big yellow African giant is finally cutting some losses.
MTN, the African telecommunications giant, has finally decided to let go of its operations in Iran, a costly but necessary break-up. The decision stems from the fact that Iran's assets have not contributed positively to the company's balance sheet for the past eight years. The impetus for this move came from the United States under President Donald Trump, who, in May 2018, announced the withdrawal of the United States from the Iran nuclear deal. This decision effectively ended any financial opportunity for MTN and the Iranian economy.
The loss, recognized as an impairment, amounts to a write-off of 213 cents per share, down from the previous R5.39 reported in the first half of 2025. This move is expected to drop the share price by 20%–30%. The write-off also removes the highly volatile, trapped paper profits from Iran, which had been masking the strength of MTN's core pan-African business.
The write-down will provide MTN with a more accurate financial picture, free from the unpredictable impacts of the Iranian war, sanctions, and foreign government decisions.
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