MTN Nigeria Communications Plc has reported a solid rebound in profitability and a significant expansion in service revenue for the first quarter (Q1) ended March 31, 2025.
This was driven by continued network investments, strong subscriber growth and regulatory support for pricing adjustments.
According to the unaudited financial results released on April 29, 2025, service revenue rose by 40.5% year-on-year to ₦1.0 trillion while profit after tax rose to ₦133.7 billion, a sharp recovery from a ₦392.7 billion loss reported in Q1 2024.
The Group also reported an EBITDA of ₦492.7 billion, a 65.9% year-on-year increase with EBITDA margin expanding by 720 basis points to 46.6%.
MTN Nigeria added 3.2 million new subscribers in Q1 to bring its total subscriber base to 84.1 million, a 8.2% year-on-year increase.
The company also recorded 13% growth in active data users, adding 2.6 million new data customers to close the quarter with 50.3 million active data users.
The sustained growth in user base supported a 46.4% increase in data traffic as the company deepened network capacity and improved service quality.
Strategic investments in customer value management (CVM) initiatives and disciplined churn control supported commercial momentum during the quarter.
MTN’s capital expenditure for the quarter, excluding leases, increased by 159% to ₦202.4 billion in line with its commitment to accelerate investment in network infrastructure.
The Group noted that regulatory approval for new pricing frameworks enabled it to balance pricing adjustments with quality enhancement initiatives.
Karl Toriola, CEO of MTN Nigeria, said: “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services… Our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year.”
He added that stability in the naira and a moderation in inflation following the rebased CPI in January provided a more predictable operating environment for the business.
The official exchange rate stood at ₦1,537/USD at the end of March, while inflation was reported at 24.2%.
MTN also reported a recalibration of its fintech business during the quarter as the company noted a 25.7% decline in its active MoMo wallet base, which dropped to 2.1 million as of March 2025.
However, this was attributed to a strategic shift towards onboarding higher-value users and improving liquidity (float) management within the ecosystem.
Despite the short-term reduction in active wallets, MTN emphasized its long-term goal of driving financial inclusion, including the launch of a rural penetration strategy targeted at underserved communities.
The telecom operator remains focused on developing advanced fintech solutions to support its ambition of building a scalable and inclusive digital financial ecosystem.
MTN Nigeria reported positive free cash flow of ₦209.9 billion, supporting the company’s ability to sustain capital investments and maintain financial flexibility.
Earnings per share stood at ₦6.38, a significant improvement from the negative EPS recorded in the corresponding quarter of 2024.
The company reiterated its commitment to disciplined execution across all business lines and expects the full impact of the new pricing structure to reflect in Q2 2025 results.
Infrastructure-sharing partnerships, such as the agreement with Airtel Africa, are expected to reduce capital duplication and enhance network efficiency.
