Legend Internet claims “expansion investment” as admin costs, executive pay fuel ₦104.8m Q1 loss

Nigerian internet provider Legend Internet has recorded another financial loss ahead of its planned merger with Spectranet Limited. This is according to its financial statement for the period ended April 2026, published on the Nigerian Exchange (NGX).

During the period ended April 2026, the company recorded a ₦216.8 million loss, compared with a ₦32.3 million profit a year ago. The development also comes as the internet provider eyes a period of growth alongside the merger. 

The company recorded a loss after tax of ₦216.8 million. The loss was further reduced to ₦104.8 million after considering actuarial gains on defined benefit schemes (₦112 million).

Despite its revenue only dropping to  ₦311.7 million from ₦320 million in Q1 2026, Legend Internet’s loss was driven by massive spending on its administrative expenses. During the quarter, the expenses surged by 162% to ₦423.8 million, compared to ₦161.7 million a year ago. 

A breakdown of its revenue drive shows that its core fibre product led the earnings drive at ₦236.7 million, a 76% share of the total revenue. The rest of its revenue is attributed to Wholesale Bandwidth at ₦70 million, while other revenue sources such as Legend Wifi, Legend Pay, and CPE sales brought in zero figures. 

In spite of no revenue, cost of sales for Legend Pay and CPE nears ₦3 million, while total cost of sales, which includes installation, Infraco and bandwidth costs, summed to ₦103.6 million between February and April, 2026.

Growth plan weighed down by administrative expenses

While reacting to the financial statement in a backdrop message, Chief Executive Officer, Legend Internet, Aisha Abdulaziz said the company’s operating fundamentals emerged stronger during the period as the management continued to implement its growth plan. 

She added that the period saw resilient gross margins amid an aggressive expansion and investment drive, despite declines in revenue and profitability.

According to the financial statement, Legend Internet paid ₦1.3 billion for the acquisition of a subsidiary and placed ₦5.52 billion in escrow, while securing ₦6.88 billion in loan financing, a transaction facility during the nine months ending April 2026. 

Meanwhile, Legend Internet’s growth plan saw the bulk of spending completely swallowed by administrative expenses of ₦423.8 million. Further breakdown shows a massive surge in its spending categories.

For instance, personnel cost increased from ₦99.3 million to ₦212.5 million in one year. This was after the company made a substantial increase in the salaries received by key management personnel. A year ago, only one member earned ₦8 million and above. But now, the number has risen to nine. 

Professional fees, which comprise payments made to external third-party experts, advisors, and consultants, increased massively from ₦1.5 million to ₦355.3 million. Marketing expenses and electricity, among others, also increased. 

While losses accumulate, the CEO said the increase in investment is a drive for expansion. 

“Legend Internet has the potential to translate its expansion investments into stronger financial performance. Our robust gross margin, substantial infrastructure base and ongoing expansion programme provide a solid foundation for recovery,” she said.

Aisha Abdulaziz added that;

“We shall utilise the capital deployed to drive the scale, revenue growth and profitability needed to support our ongoing sustainable turnaround.” 

Also read: Legend Internet slips to N99 million loss in 2025 ahead of Spectranet merger.

Ahead of Spectranet’s merger

In Legend Internet’s statement in March, which disclosed the merger plans, the company noted that the deal is to bring positive earnings and strengthen the capacity of the fibre and wireless infrastructure. 

The company projected that the deal will deliver improved operational efficiency and expand coverage across key urban markets. 

Importantly, the leading cause of the merger is a rescue plan for both Legend Internet and Spectranet. While the proposed merger will combine resources, it will create a stronger broadband operator capable of competing more effectively in Nigeria’s internet market.

According to the official statement, the merger was projected to be completed in the second quarter of 2026. Till now, no release has been made to explain why the deal is yet to be finalised.