In a clear signal of confidence in its renewed stability, MTN Nigeria declared an interim dividend of ₦5.00 per share, rewarding shareholders who endured the challenges of the prior year. This dividend payout underscores the company’s commitment to delivering value even as it continues to invest heavily in infrastructure and innovation to secure long-term growth.
The telecom giant attributed its impressive performance to a combination of strategic factors, including explosive growth across its core operational segments, the beneficial effects of a strengthening naira, and a disciplined approach to financial management. These elements converged to create a perfect storm of profitability, enabling MTN to not only erase last year’s losses but to establish a foundation for sustained success.
At the heart of this recovery was a dramatic surge in operational efficiency. Service revenue skyrocketed by 57.5 percent year-on-year, reaching an impressive ₦3.7 trillion. This substantial increase in top-line growth provided the fuel for an even more pronounced improvement in bottom-line metrics. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) more than doubled, climbing by 123 percent to ₦1.9 trillion. Such a leap in EBITDA reflects not just revenue growth but also enhanced cost control and operational leverage.
The EBITDA margin tells an equally compelling story of efficiency gains. It expanded by a remarkable 15.1 percentage points to 51.4 percent, indicating that more than half of every naira of service revenue now drops through to operating profit before financing and tax considerations. This margin improvement is a testament to MTN’s ability to scale its operations while keeping incremental costs in check, a critical achievement in an industry known for high fixed costs and intense competition.
The company’s balance sheet, which had been battered by currency volatility and operational pressures in prior periods, has been convincingly restored to health. Retained earnings flipped from deep negative territory to a positive ₦142.7 billion, providing a buffer for future investments and potential economic headwinds. Shareholders’ equity followed suit, recovering to ₦293.1 billion, which strengthens the company’s credit profile and enhances its capacity to raise capital if needed for expansion.
Despite channeling a hefty ₦757.4 billion into capital expenditure—primarily to expand network coverage, upgrade technology, and support digital initiatives—MTN generated a robust ₦742.6 billion in free cash flow. This near-parity between capex and free cash flow generation highlights the company’s exceptional cash conversion capabilities and its ability to fund growth internally without overly straining liquidity. It also positions MTN to continue its aggressive investment program without compromising financial flexibility.
Driving this financial renaissance was explosive growth in MTN Nigeria’s digital services ecosystem, which has evolved from a supporting role to a central pillar of the company’s strategy. Data services emerged as the undisputed star performer, with revenue surging 73.2 percent to ₦1.98 trillion. This growth was underpinned by a significant expansion in the active data user base, which grew to 51.1 million subscribers. The increase reflects both successful customer acquisition efforts and higher data consumption per user, driven by affordable data plans, improved network quality, and the proliferation of digital content and applications.
The fintech segment also delivered standout results, with revenue jumping 72.5 percent to ₦131.6 billion. This growth was propelled by the rapid adoption of mobile wallets, digital payment solutions, and value-added financial services offered through MTN’s MoMo platform. As Nigeria continues its transition toward a cashless economy, MTN has positioned itself at the forefront of this shift, capturing transaction fees and building a sticky ecosystem that encourages customer retention across multiple service lines.
Even the traditional voice segment, long considered a mature and slowing business, defied expectations with a strong 41.9 percent revenue increase to ₦1.35 trillion. This resurgence suggests that voice remains a vital communication tool, particularly in rural and underserved areas where data penetration is still developing. Bundled offerings that combine voice, data, and fintech services likely contributed to this renewed vigor in the voice category.
On the subscriber front, MTN Nigeria’s total base expanded by 11 percent to 85.4 million, consolidating its position as the country’s leading mobile operator. The home broadband segment was another bright spot, with the user base reaching 4 million—a clear indication of growing demand for reliable fixed wireless and fiber-to-the-home solutions, especially as remote work, online education, and streaming entertainment become entrenched in daily life.
Karl Toriola, Chief Executive Officer of MTN Nigeria, described the results as a validation of the company’s operational resilience and strategic execution. “These numbers reflect the strength of our team, the effectiveness of our investments, and our unwavering focus on delivering value to customers and shareholders alike,” Toriola stated. He expressed optimism about closing the 2025 financial year on an even stronger footing, citing an improving macroeconomic environment characterized by greater currency stability, moderating inflation, and supportive government policies aimed at boosting digital inclusion.
Toriola’s confidence is not without foundation. Nigeria’s economy has shown signs of stabilization following years of currency devaluation and inflationary pressures that had previously eroded MTN’s profitability through foreign exchange losses on dollar-denominated obligations. With the naira finding firmer ground and the Central Bank implementing measures to enhance forex liquidity, MTN is better shielded from translational risks that plagued its 2024 performance.
The implications of MTN Nigeria’s turnaround extend beyond the company itself. As a bellwether for the telecoms industry and a major listed entity on the Nigerian Exchange, its success signals potential recovery pathways for other sectors grappling with similar challenges. It also highlights the critical role of digital infrastructure in driving economic growth, job creation, and financial inclusion across Africa’s most populous nation.
For investors, the interim dividend and the prospect of a full-year payout provide tangible rewards, while the strengthened balance sheet and cash flow generation offer reassurance of sustainability. Analysts are likely to revise earnings forecasts upward, potentially driving a re-rating of MTN’s valuation multiples.
In summary, MTN Nigeria’s transformation from a ₦514.9 billion loss to a ₦750.2 billion profit in just one year is a masterclass in corporate resilience. Powered by surging data and fintech revenues, a growing subscriber base, operational efficiencies, and a stabilizing macro backdrop, the company has not only righted its ship but charted a course for continued prosperity. As Karl Toriola and his team look to the final quarter of 2025, the telecom giant appears poised to end the year not just in the black, but as a shining example of what focused execution can achieve in even the most challenging environments.
