MTN Nigeria reported a profit after tax of $102.85 million for the first quarter of 2025, marking its second consecutive profitable quarter and signaling a turnaround from a $302.08 million loss in the same period last year.
The telecom operator attributed the rebound to improved foreign exchange liquidity, tariff adjustments, and stronger adoption of its 4G and 5G networks, according to unaudited results released Tuesday.
Service revenue surged 32.5% year-on-year to $579.22 million, driven by recent price hikes, expanded digital offerings, and growth in mobile money transactions. This marks MTN’s first first-quarter profit since Nigeria’s 2023 currency devaluation triggered widespread financial losses across industries. CEO Karl Toriola cited stabilizing macroeconomic conditions, including a firmer naira and moderated inflation, but cautioned that global trade tensions could affect future performance.
Operational efficiencies bolstered margins, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising to 38.5%. Cost-saving measures, including renegotiated tower leases, yielded $2.92 million in annual savings. Investor confidence has strengthened, with shares climbing 55% from a 2024 low of $0.20 by late April, accompanied by a single-day trading volume spike to 11 million units. Analysts at Chapel Hill Denham described the stock as undervalued despite recent gains, pointing to earnings potential and renewed market optimism.
MTN plans to reduce its parent company’s stake from 76% to 65% through a public share sale expected to raise approximately $436.6 million, earmarked for network upgrades and debt reduction. The move follows a 2021 offering that attracted over 126,000 local investors and aligns with government goals to increase domestic ownership in key sectors.
Strategic diversification efforts underpin the recovery. The company rebranded its fiber broadband service to FibraX, supporting Nigeria’s target of 90% broadband penetration by 2025. Mobile money transactions via MoMo wallets grew 21%, processing $16.8 billion in payments, while digital services now contribute over a quarter of fintech revenue. Active data users increased by 12%, and disruptions from mandatory SIM registration have largely subsided.
Challenges persist, however. Retained earnings remain negative at $466.9 million, delaying dividend resumption, and inflation, though easing, persists at 28.3%. A pending class-action lawsuit over data management practices adds reputational risks.
MTN aims for mid-40% service revenue growth and EBITDA margin expansion through 2025, hinging on 5G deployment and forex stability. The annual general meeting on April 30 will address dividend policies and governance updates, closely watched by stakeholders.
The resurgence of Nigeria’s largest telecom firm reflects broader economic shifts as industries adapt to currency reforms and digital transformation. With 84 million subscribers, MTN’s investment in infrastructure and fintech could further catalyze financial inclusion, though macroeconomic volatility and regulatory hurdles remain critical tests for sustained growth.
