MTN Nigeria roars back to profitability with stellar nine-month results

MTN Nigeria Communications delivered a resounding financial comeback, reporting a robust performance for the nine months to September 30, 2025 - a N750.2 billion taxed profit marked a dramatic turnaround from a N514.9bn loss in the same period last year.

This resurgence paved the way for a return to dividend payments, with an interim dividend of N5.00 per share approved by the board.

CEO Karl Toriola hailed the results as a “significant milestone,” attributing the turnaround to strategic execution, improved macroeconomic conditions, and prudent financial management. “We are pleased to report that MTN Nigeria has restored its positive retained earnings and shareholders’ equity positions,” he said.

MTN Nigeria’s subscriber base surged by 11% to 85.4 million, while active data users climbed 12.8% to 51.1 million. Service revenue soared 57.5% year-on-year to N3.7 trillion, driven by strong demand and strategic price adjustments.

EBITDA more than doubled to N1.9 trillion, with margins expanding by 15.1 percentage points to 51.4%, reflecting tight cost management and operational efficiency. Cost pressures were contained through savings from renegotiated tower lease agreements and progress in expense efficiency initiatives, supported by the strengthening of the naira against the dollar. 

Earnings a share rebounded to N35.77 kobo, compared to a negative N24.51 kobo in 2024. Retained earnings and shareholders’ equity returned to positive territory, standing at N142.7bn and N293.1bn respectively.

Capital expenditure jumped 248% to N757.4bn, as MTN accelerated network investments to enhance service quality. Free cash flow rose 38.5% to N742.6bn, underscoring strong underlying cash generation despite the capex surge.

Nigeria’s economic landscape provided a supportive backdrop, with the naira strengthening from N1 535/$ in December 2024 to N1 475/$ by September 2025. Inflation eased to 18% from 34.8%, prompting the Central Bank of Nigeria to lower the Monetary Policy Rate to 27%, a move seen as boosting investor confidence and business activity.

Commercial momentum remained strong, with data traffic up 36.3% year-on-year. A spectrum lease agreement with T2 Mobile (formerly 9Mobile) was signed to bolster capacity and support national roaming. MTN also ramped up its home broadband strategy, focusing on fixed-wireless access and targeted fibre expansion.

Fintech operations continued to gain traction, with active wallets rising to 2.9 million and revenue up 72.5%. The company sees fintech as a key driver of financial inclusion and long-term growth.

Looking ahead, Toriola  said MTN Nigeria aims to sustain its growth trajectory and deliver on its full-year guidance, targeting service revenue growth and EBITDA margins in the low-50% range. Capex intensity is expected to moderate in the fourth quarter, supporting stronger free cash flow.

"Supported by a more stable macroeconomic environment, we expect to close the year on a stronger note while positioning the business for long-term success," he said.

Medium-term goals remain intact, with service revenue growth projected at “at least low-20%” and earnings before interest, tax depreciation and amortisation (EBITDA) margins between 53–55% from 2026 onwards.

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