Last Update 18 Nov 25
Fair value Increased 3.33%MTN Nigeria Accelerates Network Investments with ₦757.4bn Capex Surge to Strengthen Service Quality Amid Economic Pressures
MTN Nigeria’s unprecedented ₦757.4 billion capex deployment in 9M 2025 was channelled into four critical infrastructure pillars designed to boost network reliability, expand nationwide coverage, and enhance digital service capability. These targeted investments reflect management’s deliberate strategy to strengthen service quality amid escalating data demand and network congestion concerns.
1. Capacity Expansion Across Key Urban Centres
MTN intensified capacity upgrades within high-density urban hubs—Lagos, Abuja, Port Harcourt, Kano, Ibadan, and emerging secondary cities—to handle surging traffic volumes.
- The upgrades focused on expanding radio access network (RAN) capacity, boosting spectral efficiency, and enhancing backhaul transmission.
- This is expected to significantly reduce congestion during peak hours, improve data throughput, and elevate voice quality metrics.
- Given that over 70% of MTN’s data traffic originates from major cities, capacity expansion remains a critical lever for sustaining QoS and customer experience.
2. Deployment of New Sites to Deepen Coverage
Beyond capacity upgrades, MTN accelerated the rollout of new network sites to bridge coverage gaps across underserved communities.
- These greenfield sites extend MTN’s 4G footprint and support early-stage 5G densification.
- Site deployment enhances rural penetration, supporting the government’s digital inclusion objectives.
- The additional sites also expand MTN’s commercial reach, laying the foundation for future data revenue growth in low-ARPU regions.
3. Rollout of Fibre-to-the-Home (FTTH) for High-Speed Broadband
MTN scaled its FTTH expansion as part of its broadband strategy to serve households, SMEs, and corporate clients with reliable high-speed internet.
- FTTH deployment addresses the rising demand for streaming, remote work, cloud services, and home-based digital consumption.
- It also diversifies MTN’s revenue mix by strengthening its fixed broadband segment, where penetration remains materially below potential in Nigeria.
- The expansion underpins MTN’s ambition to dominate the fixed-wireless and fibre broadband markets over the next decade.
4. Development of a New Data Centre to Support Digital and Cloud Services
MTN invested in a new state-of-the-art data centre aimed at supporting Nigeria’s fast-growing digital ecosystem.
- The facility enhances MTN’s ability to deliver cloud, enterprise connectivity, fintech hosting, IoT solutions, and edge computing services.
- It strengthens network resilience, reduces latency for mission-critical applications, and expands MTN’s service capacity for enterprise clients.
- The data centre supports national digital transformation goals and positions MTN as a key player in West Africa’s cloud and hyperscale infrastructure landscape.
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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