MTN Nigeria Plc has delivered a remarkable turnaround in Q1 2025, with profit after tax surging by 134% year-on-year to ₦133.64 billion, a significant recovery from the ₦392.7 billion loss reported in Q1 2024, firmly signaling the telecom giant’s return to profitability.
🔑 Key Financial Highlights:
- Revenue: ₦1.057 trillion ▲ +40.5% YoY (Q1 2024: ₦753 billion)
- Profit After Tax: ₦133.64 billion ▲ +134% YoY
- EBITDA: Up 65.9%; EBITDA Margin: 46.6% ▲ +7.2 ppts
- Free Cash Flow: ₦209.9 billion ▼ -54.8%, impacted by accelerated capex
- Net FX Losses: ₦5.5 billion ▼ -99.2% (Q1 2024: ₦656.4 billion)
- Net Finance Costs: ₦134.5 billion ▼ -44% YoY
- Capex: ₦202.4 billion ▲ +159% YoY
📶 Operational Drivers and Strategic Execution
MTN’s strong topline performance was fueled by a 51.5% surge in data revenue (₦529.4 billion) and 27.7% increase in voice revenue (₦407.4 billion). Key enablers included regulatory approval for tariff adjustments, improving pricing power and sustaining network investments.
Q1 also saw 3.2 million new subscribers, taking the total base to 84.1 million, while active data users rose to 50.3 million, driven by growing demand and focused churn management. Data traffic expanded by 46.4% YoY.
📉 Cost Efficiency and FX Risk Mitigation
MTN effectively managed cost pressures, containing OPEX growth at 23.9%, while benefiting from a revised tower lease agreement and forex-stable environment. FX losses fell dramatically by 99.2%, and net finance costs were down by 44%, boosting the bottom line.
💸 Equity Position and Cash Flow
Despite still operating with negative shareholders’ equity (₦324.6 billion), MTN made progress in repairing its balance sheet, trimming retained losses and delivering positive free cash flow. Though FCF dropped from a high 2024 base, management expects progressive recovery as tariff hikes take full effect in Q2.
💡 Strategic Outlook and Fintech Realignment
MTN's recalibrated fintech strategy saw a 25.7% reduction in active wallet base, now focused on high-value users and rural financial inclusion. Investments in infrastructure sharing with Airtel and capex expansion reflect a commitment to long-term growth and efficiency.
CEO Karl Toriola emphasized that MTN is now “firmly on the path to restoring profitability and achieving a positive net asset position within 2025,” underlining successful delivery of its five-point strategy post-2024 EGM.
🔮 Outlook: Strong Foundation for Sustainable Growth
With macro stability improving (naira at ₦1,537/$, inflation at 24.2%), MTN is poised to sustain momentum. Solid execution, pricing flexibility, disciplined cost management, and targeted investment give confidence in the telco’s ability to sustain growth, enhance margins, and rebuild shareholder value in 2025.
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