MTN Nigeria Communications Plc has released its unaudited financial results for the first quarter of 2025, showcasing a remarkable turnaround with a profit after tax of N133.7 billion, compared to a loss of N392.7 billion in Q1 2024. This positive outcome, the company said, is underpinned by strategic investments, disciplined execution, and a record N202.4 billion in capital expenditure (CapEx) marking a 159% year-on-year increase.
Subscriber growth and revenue expansion
The telecom giant added 3.2 million new subscribers during the quarter, pushing its total subscriber base to 84.1 million, an 8.2% year-on-year increase. Active data users rose by 13% to 50.3 million, with data traffic growing by 46.4%. This surge contributed to a 40.5% year-on-year increase in service revenue, which reached N1.0 trillion.
Karl Toriola, CEO of MTN Nigeria, highlighted the company’s strong commercial momentum, stating, “Building on the momentum from Q4 2024 place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.”
Robust financial performance
MTN Nigeria reported an EBITDA of N492.7 billion, a 65.9% increase compared to the same period last year, with an EBITDA margin expansion of 7.2 percentage points to 46.6%. Earnings per share also improved significantly to N6.38 kobo.
The stability of the naira, which ended the quarter at N1,537/US$, and moderated inflation at 24.2% played a pivotal role in mitigating cost pressures. The company’s net foreign exchange losses declined sharply by 99.2% to N5.5 billion.
Record-high capital expenditure
MTN Nigeria’s capital expenditure, excluding leases, skyrocketed to N202.4 billion, representing a 159% year-on-year increase. This investment focused on enhancing network capacity and service quality, with 4G coverage now reaching 82.7% of the population and smartphone penetration rising to 60.7%.
“Following regulatory approval for price adjustments for the industry, we accelerated capex deployment to support the stronger-than-expected growth in data traffic and enhance service quality and user experience,” Toriola explained. “Despite the higher CapEx, we achieved a positive free cash flow of N209.9 billion, demonstrating disciplined capital allocation and strong cash generation.”
Strategic initiatives and innovations
The quarter saw MTN Nigeria’s collaboration with Airtel Africa on passive infrastructure, aimed at enhancing coverage and achieving cost efficiencies. This landmark partnership highlights the importance of cooperation within the telecoms industry to drive sustainable growth and broaden access to digital connectivity.
MTN Nigeria also recalibrated its fintech strategy, focusing on onboarding high-value customers and deepening financial inclusion. While the active wallet base declined by 25.7% to 2.1 million, float holdings grew by an impressive 60.3%, reflecting improved ecosystem health and a deliberate move towards quality over quantity.
Commenting on this, Toriola said, “Our fintech strategy recalibration was well-advanced during the quarter, with a deliberate focus on enhancing the quality of our ecosystem. Although this led to a 25.7% decline in our active wallet base to 2.1 million compared to December 2024, it enabled us to onboard more high-value customers and improve float levels, thereby enhancing the overall health and sustainability of the ecosystem.”
In digital services, revenue soared by 92.1%, driven by increased demand for rich media content and optimised user experiences. The enterprise business also flourished, with a 55.2% revenue increase attributed to fixed connectivity, data services, and converged solutions. The company’s continued focus on customer value management (CVM) initiatives and innovations in service delivery further supported its performance.
Expanding network capabilities
MTN Nigeria’s commitment to expanding its network capabilities was evident in its Q1 activities. The company added approximately 4.0 million smartphones to its network, boosting smartphone penetration to 60.7%. Additionally, 4G network coverage increased to 82.7% of the population, while the company’s 5G rollout remained focused on enhancing capacity over coverage, with a stable 12.7% population reach.
Home broadband services also saw significant growth, with 233,000 new subscribers added during the quarter. This brought MTN Nigeria’s broadband subscriber base to 3.5 million, driven by its 5G fixed wireless access and fibre-to-the-home offerings, which cater to the evolving digital needs of households and businesses.
Driving financial inclusion
As part of its long-term strategy to drive financial inclusion, MTN Nigeria launched a rural penetration strategy aimed at underserved and financially excluded communities. This initiative aligns with the company’s broader goals of enhancing the quality of its fintech ecosystem and supporting sustainable economic development.
Speaking on financial inclusion, Toriola said, “Our fintech strategy is about creating a digital financial ecosystem that promotes financial inclusion and fosters economic development.”
Navigating macroeconomic challenges
Despite ongoing macroeconomic uncertainties, MTN Nigeria demonstrated resilience and adaptability. The company’s renegotiated tower lease agreements and VAT exemptions under the new Finance Act helped mitigate the impact of naira depreciation and rising operational costs. Operating expenses increased by 25% year-on-year, but disciplined cost-efficiency initiatives ensured that growth remained controlled.
Depreciation and amortisation expenses rose by 22.1%, driven by increased right-of-use assets from revised lease agreements. Nonetheless, the company’s net debt-to-EBITDA ratio remained healthy at 0.5 times, underscoring its robust financial position.
Outlook for 2025
Looking ahead, MTN Nigeria aims to sustain its growth trajectory by deepening investments in network capacity, expanding digital and financial inclusion, and restoring shareholder value. The company anticipates continued revenue growth as the full impact of tariff adjustments materialises in subsequent quarters.
“Our strong performance in Q1 2025 underscores our ability to navigate a complex and evolving macroeconomic environment,” Toriola affirmed. “We remain focused on executing our Ambition 2025 strategy, accelerating network investment, deepening digital and financial inclusion, and restoring shareholder value in a challenging but improving macro environment. We will continue to execute with discipline, agility, and a focus on sustainable growth.
MTN Nigeria also reaffirmed its guidance for FY 2025, targeting service revenue growth of at least mid-40%, an EBITDA margin of at least mid-40%, and CapEx intensity in the upper teens. The company’s medium-term goals include service revenue growth of at least 20% and an EBITDA margin recovery to at least 50%.
With disciplined execution and a clear vision, MTN Nigeria is poised to deliver sustained growth and innovation, ensuring its position as a leader in Nigeria’s digital transformation and inclusive progress.
