MTN Nigeria Reports N1.1 Trillion Profit After 2024 Loss, Resumes Dividend as FX Pressure Eases
MTN Nigeria Communications Plc has delivered one of the strongest earnings recoveries in Nigeria’s corporate landscape, reporting a profit after tax of N1.1 trillion for the year ended December 31, 2025, compared to a N400.4 billion loss in 2024.
The turnaround was driven by aggressive topline expansion, disciplined cost control, improved foreign exchange conditions and deliberate balance sheet restructuring.
The Board proposed a final dividend of N15 per share, bringing total dividend for the year to N20 per share, marking the resumption of shareholder payouts after last year’s disruption.
Revenue Expansion Anchored on Data and Fintech
Service revenue surged 55.1% year-on-year to N5.17 trillion, while total revenue climbed 54.9% to N5.2 trillion.
Data revenue rose 74.5% to N2.78 trillion, making it the largest revenue contributor. Data traffic increased 34%, with average usage per subscriber rising to 13.1GB. Smartphone penetration improved to 66.1%, reinforcing the structural shift toward digital consumption.
Voice revenue remained resilient, expanding 42.1% to N1.85 trillion, demonstrating elasticity stability despite pricing adjustments.
Fintech revenue climbed 79.7% to N191.3 billion, supported by float income growth and expansion of MoMo wallets to 3.7 million. Customer deposits rose 156.1% as growth deepened in digital payments.
Enterprise revenue grew modestly at 7.7%, but underlying performance was stronger when excluding one-off USSD recognition in Q4 2024.
Investors King View:
The composition of revenue confirms that MTN Nigeria is transitioning from a traditional telecom operator to a digital platform business. Data and fintech now represent structural growth engines rather than supplementary segments.
Margin Recovery and Operating Leverage
EBITDA more than doubled to N2.74 trillion, up 108.9% with EBITDA margin expanding 13.6 percentage points to 52.7%.
Cost of sales rose 30.3%, below revenue growth, enabling gross margin expansion. Operating expenses increased 16.7% to reflect the successful execution of its efficiency programme and savings from the IHS tower lease renegotiation.
Net foreign exchange position swung from a N925.4 billion loss in 2024 to a N90.3 billion gain in 2025, following settlement of letters of credit and reduction in foreign currency debt.
Investors King View:
The FX gain is material to the bottom-line swing. While operational performance improved meaningfully, part of the earnings rebound reflects normalization of currency distortions rather than purely organic margin expansion. Sustainability depends on FX stability.
Balance Sheet Restoration
Shareholders’ equity improved to N548.7 billion, reversing a negative N458 billion position in 2024. Retained earnings returned to positive N400.4 billion.
Net debt-to-EBITDA moved to negative 0.1x, reflecting a net cash position of N104.8 billion. The company repaid N434 billion in facilities and reduced FX loan exposure to US$105 million.
Free cash flow rose 215.5% to N1.2 trillion, even as capex excluding leases more than doubled to N1 trillion, representing capex intensity of 19.3%.
Investors King View:
This is the most important development in the results. The restoration of equity and deleveraging materially reduces financial risk. MTN Nigeria now has flexibility to fund growth internally without excessive exposure to volatile funding markets.
Capital Allocation and Network Leadership
The company invested heavily in 4G densification, spectrum optimisation and FTTH expansion. Home broadband subscribers rose to 4.2 million after adding approximately one million users.
Recognition as Nigeria’s fastest mobile network by Ookla reinforces competitive positioning.
However, lease liabilities remain substantial at over N2.1 trillion, highlighting continued structural obligations within the tower leasing model.
Macroeconomic Tailwinds
The naira strengthened to N1,436/US$ from N1,535/US$ in 2024. Headline inflation moderated to 15.2% by year-end.
Management revised medium-term EBITDA margin guidance upward to “mid-to-high 50%,” maintaining service revenue growth target of at least low 20% annually.
These projections assume exchange rates between N1,400–N1,700 per dollar and mid-teens inflation.
Risk Assessment:
Execution risk now shifts from survival to capital discipline. Sustaining margins above 55% will require continued pricing power, FX stability and cost efficiency. Any reversal in macro conditions could reintroduce volatility to earnings.
Strategic Implications for Investors
Dividend visibility restored – N20 total dividend signals confidence in cash generation.
Reduced FX sensitivity – Lower dollar exposure improves earnings stability.
Platform monetisation upside – Fintech and data centre expansion provide optionality beyond connectivity.
Capex intensity remains elevated – Network investment will continue to weigh on short-term liquidity but supports long-term growth.
Investors King Note
2025 marks a structural reset for MTN Nigeria. The company transitioned from FX-driven losses and negative equity in 2024 to record profitability, restored shareholder funds and resumed dividends in 2025.
While part of the rebound reflects macro normalisation, operational performance demonstrates improved pricing discipline, scale efficiency and capital management.
The key question for 2026 is sustainability. If macro stability holds and data demand continues to expand at current rates, MTN Nigeria is positioned to consolidate its leadership and generate consistent shareholder returns.
Investors will closely monitor FX conditions, fintech monetisation progress and capex efficiency as the company moves from recovery to consolidation.
