Legend Internet Posts ₦199.3 Million Loss as Operating Expenses Surge 174%

Legend Internet Plc reported a loss after tax of ₦199.34 million for the six months ended January 31, 2026, compared with a profit after tax of ₦239.85 million recorded in the corresponding period of 2025.

The decline in performance was driven by lower revenue, rising operating expenses and significantly higher finance costs.

Revenue fell by 18.8 percent from ₦622.64 million in the first half of 2025 to ₦505.36 million during the review period.

Cost of sales declined from ₦211.31 million to ₦182.37 million, providing some relief to margins. However, the reduction was insufficient to offset mounting administrative expenses.

Gross profit dropped from ₦411.33 million to ₦322.99 million, representing a decline of 21.5 percent.

Administrative expenses surged to ₦457.62 million from ₦166.78 million in the previous year, an increase of 174.4 percent.

The sharp rise in operating costs pushed the company into an operating loss of ₦134.63 million compared with an operating profit of ₦244.55 million recorded a year earlier.

Finance costs also increased substantially to ₦64.71 million from ₦4.69 million, reflecting the impact of increased borrowings and higher interest obligations.

As a result, loss before tax stood at ₦199.34 million against a profit before tax of ₦239.85 million in the corresponding period of 2025.

On a quarterly basis, the company posted a loss of ₦226.18 million for the three months ended January 31, 2026, compared with a profit of ₦146.41 million recorded in the same quarter of the previous year.

Despite the weak earnings performance, Legend Internet’s cash position improved significantly. Cash and cash equivalents rose to ₦269.13 million from ₦21.02 million at the end of July 2025, strengthening short-term liquidity.

Total assets increased by 7.6 percent to ₦3.45 billion from ₦3.21 billion, supported by growth in current assets, which rose to ₦989.39 million from ₦597.82 million.

However, the stronger liquidity position was accompanied by a sharp increase in liabilities. Current liabilities climbed to ₦903.91 million from ₦319.11 million. Borrowings increased to ₦564.88 million from ₦75.23 million, representing an increase of more than 650 percent.

The increase in debt contributed to higher finance costs and pressured profitability during the period.

Shareholders’ funds declined to ₦2.55 billion from ₦2.84 billion as retained earnings fell from ₦700.78 million to ₦410.75 million following the reported loss.

While the company recorded ₦100 million in other comprehensive income during the period, it was insufficient to offset the substantial operating loss.

The latest results indicate that Legend Internet faces significant profitability challenges as management seeks to balance revenue growth, cost control and debt management in an increasingly competitive operating environment.