MTN Makes Strong Recovery With N414bn Profit in H1, Revises Guidance Upwards

MTN Nigeria Plc has made a strong recovery in the First Half (H1) of 2025, achieving robust and broad-based revenue growth across voice, data, digital, and fintech segments.

The largest Nigerian telecommunications provider reported a profit after tax (PAT) of N414.9 billion, marking a strong recovery from the loss after tax of N519.1 billion recorded in the prior H1 2024 period.

Revenue for MTN Nigeria was up 54.50 percent to N2.37 trillion in the period under review from N1.53 trillion the previous year.

In the second quarter (Q2), MTN Nigeria completed the phased implementation of new price adjustments (a 50 percent tariff hike) across voice and data bundles, which benefitted its earnings in the overall H1 period.

The price increases didn’t negatively affect demand for MTN services which remained resilient helping to support strong service revenue growth in the period.

Data revenue rose by 69.2 percent, supported by active user base growth, higher data traffic and price adjustments. Underpinning this growth is the ongoing investment in network capacity to accommodate increased traffic and enhance user experience, as well as higher smartphone penetration.

The company added approximately 3.7 million smartphones to the network in the second half of the year (HI), raising smartphone penetration to 62.6 percent, up 4.3pp from December 2024. 4G population coverage remained stable at 82.4 percent, as efforts continued to focus on capacity enhancement to reduce congestion in the network.

Meanwhile, MTN Nigeria’s retained earnings improved to negative N192.9 billion (December 2024: negative N607.5 billion) and shareholders’ equity to negative N42.5 billion, from negative N458.0 billion in December 2024.

MTN Nigeria stock was trading up 1% to about N472 per share.

MTN revises guidance upwards

Given the strong momentum MTN Nigeria revised up its Full Year (FY) 2025 guidance and now target service revenue growth of ‘at least low-50%’ and EBITDA margin of ‘at least low-50%’.

The firm say its on track to restore positive retained earnings and net asset positions by the end of Q3 2025.

In terms of our medium-term guidance (from 2026 onwards), MTN Nigeria now targets average service revenue growth of ‘at least low-20%’ and EBITDA margin in the 53-55% range.

“This is based on current economic assumptions, including an easing of average inflation rates to below the 20% levels, exchange rates remaining in the N1,600-1,800/US$ range and no price adjustments,” MTN Nigeria CEO Karl Toriola said.

Other Key points:

• Total subscribers increased by 6.7% to 84.7 million
• Active data users increased by 11.8% to 51.0 million
• EBITDA increased by 119.5% to N1.2 trillion
• EBITDA margin increased by 15.0pp to 50.6%
• Earnings per share of N19.8 kobo (H1 2024: negative N24.7 kobo)
• Capex, excluding leases, increased by 288.4% to N565.7 billion as investments accelerated in H1
• Free cash flow (FCF) of N409.8 billion, up 18.0%

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