Last Update 02 Nov 25
Fair value Increased 12%MTN H1/Q2 Result – Strong Recovery with Margin Expansion Amid Cost Headwinds
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MTN NIGERIA COMMUNICATIONS PLC Q3 Result – Strong Earnings Recovery, Balance Sheet Restoration & Dividend Resumption
Executive Summary
MTN Nigeria Communications Plc delivered a strong financial and operational performance for the nine months ended September 30, 2025, marking a full turnaround after FY-2024 losses driven by FX volatility. The Group reported a substantial rebound in earnings supported by mobile data growth, fintech expansion, pricing adjustments, and improved FX market stability. Profit Before Tax surged to ₦1.13 trillion from a loss of ₦714 billion in 9M 2024, reflecting a significant rebound in core operations and net foreign exchange gains amid naira appreciation and moderated currency volatility. Profit After Tax stood at ₦750 billion compared to a ₦515 billion loss in the prior period, supported by operating efficiency and reduced FX loss pressures. Revenue grew 57% YoY to ₦3.73 trillion driven by accelerating data usage, expanding fintech adoption and tariff adjustments. EBITDA increased 123% YoY to ₦1.92 trillion, reflecting enhanced cost efficiency, improved operating leverage, and lower naira-driven opex pressures. MTNN also declared an interim dividend of ₦5.00 per share, signalling renewed confidence in capital strength and future cash flows.
Financial Highlights – Statement of Profit or Loss
₦’ million 9M 2025 9M 2024
Revenue 3,726,000 2,368,000
EBITDA 1,917,000 860,000
EBITDA Margin 51.4% 36.3%
Depreciation & Amortization (600,000)* (approx.)
EBIT 1,317,000 430,000
Net Finance Costs (186,000) (1,140,000)
Profit Before Tax 1,131,000 (714,000)
Income Tax (381,000) 199,000
Profit After Tax 750,000 (515,000)
EPS (₦) ₦35.77 (₦24.51)
Revenue Performance
- Total revenue +57% YoY, driven by strong pricing and volume growth
- Data revenue +73% YoY, supported by:
- +36% increase in data traffic
- Higher 4G network capacity and 5G rollout momentum
- Growth in smartphone penetration (65%)
- Voice revenue +41.9% YoY as base expanded +11% subscribers
- Fintech revenue +72.5% YoY with rising MoMo wallet adoption (+1.6% YTD active wallets)
- Solid contributions from enterprise and wholesale services
MTN’s strategic focus on digital inclusion, network upgrades, and fintech monetization continued to reinforce topline expansion.
Profitability and Margins
- EBITDA margin improved to 51.4% from 36.3%, reflecting strong scale benefits
- FX environment normalized, resulting in ₦55.6bn FX gain vs ₦905bn loss prior year
- Net finance costs moderated significantly as FX pressures eased
- Cost optimization and reduced USD-linked opex supported margin expansion
- Rebound in bottom-line profitability enabled dividend reinstatement
Balance Sheet Overview
₦’ million Sep 2025 Dec 2024 % Δ
Total Assets 4,310,000 4,050,000 +6%
Total Liabilities 4,017,000 4,508,000 -11%
Net Assets / Equity 293,000 (458,000) Turned Positive
Retained Earnings 143,000 (607,000) Rebuilt
Cash Flow from Ops 742,600 536,100 +39%
Interpretation
- Equity turned positive following improved profitability and FX gains
- Strong operating cash flow supports capex and dividend commitments
- Strategic capex front-loading to support network growth
- Deleveraging continued through repayment of foreign obligations and reduced FX translation losses
Key Indicators
Metric 9M 2025
Revenue Growth +57%
EBITDA Growth +123%
EBITDA Margin 51.4%
PBT Growth Turnaround
PAT Growth Turnaround
Subscriber Growth +11%
Active Data Users +13%
MoMo Wallets +2.5%
Strategic Insights
- Accelerated investments in broadband expansion (4G + 5G rollout)
- Strengthening fintech ecosystem and MoMo penetration
- Pricing strategy supports ARPU growth
- Focus on operational efficiencies to sustain margins
- Digital initiatives, enterprise solutions, and infrastructure sharing driving future growth
Strengths
- Largest telecom operator in Nigeria by subscriber base
- Strong brand equity and national coverage leadership
- Robust data and fintech momentum
- Rebuilt equity base and improved cash flows
Weaknesses
- High dependence on regulatory environment and spectrum costs
- Persistent inflationary pressures can impact ARPU elasticity
- FX exposure still material despite improving stability
Outlook
MTN Nigeria is poised to sustain growth momentum backed by:
- Continued data traffic surge
- Fintech revenue expansion
- Easing FX volatility and improving naira liquidity
- Strengthening free cash flow to support dividend policy
Management guidance remains bullish, targeting sustained margin expansion and capital discipline through FY-2025/26.
Analyst View
“MTN Nigeria’s 9M-2025 performance confirms a strong recovery trajectory driven by data leadership, fintech growth, and FX stabilization. With equity restored, margins expanding, and dividend reinstated, MTN is positioned for multi-year value creation supported by disciplined execution and digital ecosystem expansion.”
Conclusion
MTN Nigeria delivered a decisive rebound in 9M 2025, underpinned by strong core operations, cost efficiency, and FX normalization. With a solid balance sheet, strong cash generation, and accelerating digital growth, the Group remains strategically well-positioned for sustained earnings growth and long-term shareholder value creation.
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