…Telecom giant grows revenue by 25.9 per cent to N2.99tn as surging data demand, lower borrowing costs and subscriber growth drive record earnings.
MTN Nigeria Communications Plc has reported its strongest half-year financial performance on record, posting a 75.4 per cent increase in profit before tax to N1.09 trillion for the six months ended June 30, 2026.
The telecommunications giant attributed the strong performance to robust data demand, improved operating efficiency, lower finance costs and continued subscriber growth, despite Nigeria’s challenging macroeconomic environment.
According to its unaudited financial results filed with the Nigerian Exchange (NGX) on Thursday, revenue rose 25.9 per cent year-on-year to N2.99 trillion, while profit after tax climbed 70.6 per cent to N707.5 billion.
Reflecting the improved earnings, the Board of Directors approved an interim dividend of N26 per share, payable on September 7, 2026, to shareholders on the register as of August 20.
MTN’s operating profit increased 41.9 per cent to N1.27 trillion, while earnings per share rose 70.6 per cent to N33.76.
The company’s balance sheet also strengthened significantly during the period, with shareholders’ equity rising 69.6 per cent to N930.6 billion and total assets expanding 10.5 per cent to N5.97 trillion.
Interest-bearing borrowings fell 35.1 per cent to N342.6 billion, reducing finance costs and contributing to stronger profitability.
Karl Toriola, Chief Executive Officer, MTN Nigeria, said the results reflected the resilience of customer demand and disciplined execution across the business. “We delivered a strong first-half performance, with sustained commercial momentum, improved profitability and robust cash generation. This reflects the resilience of demand for our services, disciplined execution across the business and continued focus on efficiency in a challenging operating environment.”
He noted that improved stability in the naira helped ease cost pressures during the period.
MTN added 4.9 million subscribers, increasing its customer base to 92.2 million, while active data users rose to 55.7 million.
According to Toriola, service revenue growth of 25.9 per cent exceeded the company’s medium-term guidance, while EBITDA margin improved by 5.3 percentage points to 55.9 per cent.
The company invested N620.5 billion in network expansion during the period, excluding lease-related expenditure, while free cash flow increased 73.9 per cent to N712.7 billion, supporting the interim dividend declaration.
Data services remained MTN Nigeria’s biggest growth engine.
Data revenue surged 38.3 per cent to N1.70 trillion, accounting for 56.8 per cent of total revenue and contributing nearly 77 per cent of the company’s overall revenue growth during the period.
The increase was driven by rising internet usage, expanding broadband penetration and growing demand for digital services.
Voice revenue also recorded steady growth, rising 15 per cent to N897.1 billion, representing about 30 per cent of total revenue.
Combined, data and voice services generated N2.60 trillion, accounting for almost 87 per cent of MTN’s total revenue, highlighting the company’s continued transition from a traditional telecom operator to a broader digital connectivity provider.
Other business segments also posted gains. SMS revenue rose 21.9 per cent to N112.7 billion, digital services increased 21.1 per cent to N58.7 billion, handset and accessories sales grew 29.3 per cent to N11 billion, while ICT-related services advanced 8.6 per cent to N23.9 billion.
However, interconnect and roaming revenue declined 1.9 per cent to N112.2 billion, while value-added services fell 6.9 per cent to N77.1 billion.
MTN continued investing heavily in its network infrastructure during the first half of the year.
Property, plant and equipment increased to N2.22 trillion, while right-of-use assets stood at N1.75 trillion, together accounting for more than 66% of total assets.
Current investments rose sharply to N415.3 billion, while trade receivables declined, indicating improved customer collections.
Although cash and cash equivalents fell to N458.9 billion from N632.5 billion at the end of 2025, the decline reflected substantial spending on network expansion, taxes, dividends and financing obligations.
Retained earnings nearly doubled to N793.1 billion, strengthening shareholders’ equity, while current tax liabilities increased to N640.4 billion in line with higher profitability.
