MTN Nigeria records ₦133.7 billion profit in Q1 2025, its first since 2023

MTN Nigeria Communications Plc has reported a profit after tax of ₦133.7 billion ($102.85 million) for the first quarter of 2025, marking a significant recovery from a ₦392.7 billion loss in the same period last year.

The telecom operator announced a 41% year-on-year revenue increase to ₦1.06 trillion, driven by tariff hikes, reduced foreign exchange (FX) losses, and growth in its digital and fintech sectors.

The results, released on Tuesday, highlight MTN Nigeria’s strategic efforts to overcome economic challenges and position itself for sustained growth in Nigeria’s competitive telecommunications market.

MTN Nigeria’s unaudited financial statement for Q1 2025 revealed a 134% year-on-year increase in profit after tax, a stark contrast to the ₦392.7 billion ($302.08 million) loss recorded in Q1 2024.

The 2024 loss was largely attributed to FX losses following the naira’s devaluation, a challenge that had impacted the company’s performance for several quarters. In Q1 2025, MTN Nigeria reduced its FX losses by 99%, benefiting from improved forex liquidity in the Nigerian market.

Service revenue for the quarter rose by 32.5% to ₦752.98 billion ($579.22 million), while total revenue reached ₦1.06 trillion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 66%, and operating profit surged by 97%, reflecting improved operational efficiency.

However, the company’s retained earnings remained negative at ₦607 billion ($466.9 million), a lingering issue that may delay the resumption of dividend payments.

Analysts attributed the revenue growth to tariff increases approved by the Nigerian Communications Commission (NCC) in January 2025. The adjustments helped MTN Nigeria offset operational costs amid an inflation rate of 28.3% in Q1 2025. Analysts now project mid-40% growth in service revenue and EBITDA margins for the remainder of 2025.

MTN Nigeria stabilises subscriber base at over 84 million

MTN Nigeria reported operational improvements across its business segments in Q1 2025. The company stabilised its subscriber base at over 84 million, recovering from losses in 2024 due to the NIN-SIM linkage enforcement. Active data users grew by 12% year-on-year, driven by increased adoption of 4G and 5G networks.

The company also expanded its 5G infrastructure to enhance service quality and support Nigeria’s digital inclusion goals.

In a bid to diversify its revenue streams, MTN Nigeria saw significant growth in its digital and fintech businesses. The company’s fintech arm, MoMo, recorded a 21% year-on-year increase in wallet transactions, processing $16.8 billion in merchant payments.

Digital services also contributed over 25% of fintech revenue. Additionally, MTN Nigeria rebranded its fibre-to-the-home business to FibreX, aligning with the government’s target of 90% broadband penetration by the end of 2025.

“FibreX and MoMo are key pillars of our strategy to go beyond traditional telecom services,” said Karl Toriola, CEO of MTN Nigeria. “We are committed to supporting Nigeria’s digital economy while delivering value to our customers.”

Can MTN Nigeria reclaim its top market position?

MTN Nigeria’s Q1 2025 performance comes as the company seeks to reclaim its position as the top revenue earner within the MTN Group. In 2024, MTN Nigeria lost its lead to MTN South Africa, which generated $2.89 billion in revenue, while the West and Central Africa region, led by Ghana, contributed $3.1 billion.

The reinstatement of revenue guidance by MTN Group, following the NCC’s approval of tariff increases, reflects confidence in Nigeria’s recovery.

However, competition in the Nigerian telecom market remains intense, with operators like Airtel and Glo vying for market share. MTN Nigeria’s focus on 5G rollout, operational efficiency, and digital services positions it to maintain its lead. T

Yet, the company must navigate consumer concerns over affordability in a high-inflation environment.

Overall, the company’s first quarter of 2025 results signal a promising outlook, with the company targeting mid-40% growth in service revenue and EBITDA margins for the year

Plans for a public offering and continued 5G expansion are expected to bolster its financial position. For subscribers, a stronger MTN Nigeria could mean improved network quality, expanded rural connectivity, and enhanced digital services.

The telecom giant’s stellar performance in Q1 2025 has not only strengthened its position in Nigeria but also supports the MTN Group’s broader growth strategy in Africa.