Service revenue rose by 41.8 percent to ₦1.49 trillion, driven largely by strong demand for data services, growth in fintech operations and improved voice performance.
Total revenue stood at ₦1.50 trillion, up from ₦1.06 trillion in Q1 2025, reinforcing the company’s strong commercial momentum during the period.
Data revenue remained the primary growth driver, increasing by 56.2 percent as active data users rose by 9.5 percent to 55 million.
Data traffic expanded by 22.9 percent, supported by higher smartphone penetration, which climbed to 66.2 percent, and increased usage per subscriber.
Voice revenue grew by 22.5 percent, while fintech revenue surged by 77.9 percent amid increased adoption of digital financial services and stronger engagement across platforms.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 68.1 percent to ₦828.3 billion, while EBITDA margin expanded to 55.3 percent from 46.6 percent in the prior year.
The improvement was supported by strong operating leverage and disciplined cost management despite inflationary pressure and rising energy costs.
Operating profit rose to ₦632.3 billion from ₦342.7 billion, while profit before tax increased significantly by 169.6 percent to ₦546.4 billion.
Net finance costs declined by 38.7 percent following the repayment of outstanding foreign currency loans, reducing exposure to foreign exchange volatility and strengthening the company’s balance sheet.
Capital expenditure increased significantly during the period with spending rising by 92.8 percent to ₦390.3 billion excluding leases.
The increase reflects accelerated investment in network infrastructure to support rising data demand and improve service quality across the country.
Free cash flow rose by 55.6 percent to ₦326.5 billion, highlighting strong cash generation capacity and the company’s ability to fund expansion while maintaining financial stability.
Subscriber growth remained positive with total subscribers increasing by 6.5 percent to 89.5 million, while data subscribers grew to 55 million.
On the balance sheet, MTN Nigeria reported a net cash position of ₦129.0 billion, indicating improved liquidity and reduced leverage.
The company also recorded retained earnings of ₦755.7 billion and shareholders’ equity of ₦903.9 billion.
As part of its strategic restructuring, MTN Nigeria is progressing with plans to separate its fintech business. Under the proposed structure, MTN Group Fintech Holdings will acquire a 60 percent stake with MTN Nigeria retaining 40 percent.
The transaction includes a capital injection of ₦152.1 billion and is expected to enhance balance sheet flexibility and allow the company to focus on its core connectivity business.
The company also temporarily suspended its airtime and data credit service, Xtratime, in response to new regulatory requirements governing digital lending.
Management stated that onboarding processes are ongoing and service is expected to resume once compliance requirements are met.
Looking ahead, MTN Nigeria maintained its medium-term outlook, targeting service revenue growth of at least low 20 percent and EBITDA margins in the mid-to-high 50 percent range.
However, the company noted that energy cost volatility, particularly diesel prices, could impact margins by up to 2 percentage points in the full year.
The Q1 2026 performance highlights MTN Nigeria’s ability to convert strong demand for data and digital services into earnings growth, while balancing increased capital investment and evolving regulatory requirements in a dynamic operating environment.
