MTN Nigeria reported a profit after tax of ₦133.7 billion( $102.85 million) in Q1 2025. This marks the telecom giant’s second consecutive profitable quarter, a significant rebound from the ₦392.7 billion ($302.08 million) loss recorded in Q1 2024, largely driven by foreign exchange losses and inflation.
The unaudited Q1 2025 results, released on Tuesday, reflect a strengthening financial outlook. Service revenue rose 32.5% year-on-year to ₦752.98 billion ($579.22 million), fueled by recent price hikes, broader adoption of 4G and 5G networks, and solid growth in MTN’s digital and fintech verticals. It’s also the company’s first Q1 profit since the 2023 naira devaluation triggered a cascade of FX-related losses.
MTN’s return to financial stability has tangible benefits for its over 84 million subscribers. A profitable MTN can invest more aggressively in network upgrades, improve service quality, expand rural connectivity, and enhance the overall digital experience. Faster internet speeds, fewer call dropouts, and better access to services in underserved areas are among the expected gains.
“We are encouraged by the improvements in Nigeria’s macroeconomic conditions, marked by increased forex liquidity, a relatively stable naira, and easing inflation,” said Karl Toriola, MTN Nigeria CEO. “However, the recent escalation in global geopolitical and trade tensions presents risks to the broader outlook.”
Profitability has also strengthened MTN’s operational efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin rose to 38.5%. Key contributors include MTN’s expense efficiency program and successful renegotiation of tower leases, which have already saved the company ₦3.8 billion ($2.92 million) annually.
MTN’s stock has responded positively. Trading volumes soared to 11 million units on April 15—its highest single-day activity this year—while the share price surged 55% from a 2024 low of ₦170 to ₦264.20 ($0.20) by the end of April. Analysts have taken notice, with Chapel Hill Denham calling the stock “extremely cheap” despite its recent rally, citing stronger earnings expectations and improved investor sentiment.
This momentum also sets the stage for a new public offering. MTN Nigeria plans to reduce MTN Group’s stake from 76% to 65% via a share sale expected to raise between ₦500 billion and ₦700 billion ($436.6 million). Proceeds will fund network expansion and reduce debt. The company’s last offering in 2021 drew over 126,000 local investors, and this new issuance aligns with government efforts to boost indigenous ownership in the telecom sector.
A central pillar of MTN’s recovery strategy is diversification. In Q1, the company rebranded its fibre-to-the-home business to FibreX, supporting Nigeria’s ambition for 90% broadband penetration by 2025. This complements fintech growth, where MoMo wallet transactions rose 21% year-on-year, processing $16.8 billion in merchant payments. Digital services now contribute over 25% of fintech revenue.
The company also made progress operationally. Active data users increased by 12% year-on-year, and the negative effects of the NIN-SIM linkage enforcement, which caused subscriber losses in 2024, have largely tapered off.
Despite these wins, challenges remain. Retained earnings still stand at a negative ₦607 billion ($466.9 million), which may delay dividend resumption. Inflation remains stubbornly high at 28.3%, squeezing margins, and a pending class-action lawsuit on data mismanagement could pose reputational risks.
Analysts forecast a sharp recovery for MTN Nigeria, powered by strategic tariff increases, network expansion, and operational discipline. The company aims for mid-40% growth in service revenue and EBITDA margins through the remainder of 2025. Key to this ambition will be the continued rollout of 5G infrastructure, improved forex liquidity, and the execution of the public offering.
MTN Nigeria’s annual general meeting, set for April 30, will address potential dividend policy revisions and corporate governance updates—two topics sure to be closely watched by investors.
