MTN Nigeria Communications Plc has kicked off 2025 with a robust financial rebound, posting a 40.5% surge in service revenue to N1.0 trillion for the first quarter ended March 31, 2025. The telecoms giant also swung back to profitability, recording a profit after tax of N133.7 billion, a remarkable turnaround from a loss of N392.7 billion in the same period last year.
The results, released on Wednesday, reflect strong commercial momentum, renewed regulatory support, and macroeconomic improvements most notably, the stabilisation of the naira and a moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025.
Key Financial and Operational Highlights
- Total subscribers grew by 8.2% to 84.1 million, with 3.2 million new users added in Q1.
- Active data users rose by 13% to 50.3 million, up by 2.6 million in the quarter.
- Service revenue jumped by 40.5% to N1.0 trillion.
- EBITDA increased by 65.9% to N492.7 billion.
- EBITDA margin improved by 7.2 percentage points to 46.6%.
- Earnings per share reached N6.38 kobo.
- Capital expenditure, excluding leases, soared 159% to N202.4 billion.
- Free cash flow came in at N209.9 billion, down 54.8% due to front-loaded capex.
Operating Environment and Strategic Execution
MTN credited its strong Q1 performance to strategic tariff adjustments approved mid-quarter, enhanced investment in network capacity, and disciplined cost controls. The company noted that despite persistent macroeconomic headwinds, the relative stability of the exchange rate holding at around N1,537/$ and a drop in reported inflation to 24.2% contributed to a more favorable business environment.
A standout development in the quarter was a collaboration agreement with Airtel Africa on passive infrastructure sharing, aimed at accelerating coverage expansion and cutting network deployment costs.
Growth in Core Segments and Tariff Implementation
MTN’s voice, data, digital, and fintech verticals all recorded growth, aided by proactive customer value management (CVM) strategies and improved churn management. Data traffic grew by 46.4% year-on-year, buoyed by strong additions to the data user base.
The new tariff structure, rolled out in phases starting February, is expected to deliver its full financial impact in Q2. Early indicators, MTN said, suggest strong customer resilience and continued demand.
Fintech Strategy Recalibration
The company noted a 25.7% decline in its active wallet base to 2.1 million, due to efforts to refocus the fintech business on higher-value customers. However, it highlighted an improvement in overall wallet quality, float levels, and ecosystem sustainability.
A rural penetration strategy targeting financially excluded communities is also underway, as part of MTN’s ambition to drive nationwide financial inclusion.
Balance Sheet Recovery and Profitability Outlook
MTN reported a positive free cash flow of N209.9 billion, despite increased capital expenditure, and said it expects this to improve as tariff impacts take full effect. Retained earnings improved to negative N474.1 billion, while shareholders’ equity rose to negative N324.6 billion, positioning the company toward a positive net asset stance within the current year.
CEO Karl Toriola’s Outlook
“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,” said MTN Nigeria CEO Karl Toriola.
“Our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.”
