… Posts Q1 Profit After Tax of N133.7 Billion
Despite challenges pervading the industry, leading telecommunication service provider, MTN Nigeria increased its capital expenditure (CAPEX), while increasing investments to improve network and service quality with the hope of restoring profitability and achieving a positive net asset position within the current financial year.
In its unaudited results for the quarter ended March 31, 2025, the telecom operator noted that Capex, excluding leases, increased by 159.0% to N202.4 billion.
Its total subscribers also increased by 8.2% to 84.1 million, adding 3.2 million subscribers in Q1 2025, with active data users rising by 13.0% to 50.3 million with the help of 2.6 million active users added in Q1 2025.
Also service revenue grew by 40.5% to N1.0 trillion, while EBITDA1 increased by 65.9% to N492.7 billion. Q1 profit after tax reported a significant turnaround in bottom line, with a profit after tax of N133.7 billion as against a loss of N392.7 billion in the same quarter last year. This performance reflects the successful delivery of the five strategic priorities.
MTN Nigeria maintained that some initiatives that just kicked off, including the implementation of the new tariff regime in mid-February attributed to the positive result, although the full impact of the new tariff will reflect in Q2.
“During the quarter, we received regulatory approval for price adjustments, a critical enabler to sustain ongoing investment in the industry and maintain the quality of service for our customers. This has empowered us to accelerate network investments with N202.4 billion in capex (up 159%), focused on boosting capacity and improving user experience,” the stamen noted.
MTN Nigeria CEO, Karl Toriola said: “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. Building on the momentum from Q4 2024, 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.”
Enumerating some of the positive reports, MTN noted:
- In Q1, we added 3.2 million new subscribers, bringing our total base to 84.1 million. During the same period, active data users rose by 2.6 million, increasing the base to 50.3 million and contributing to a 46.4% YoY growth in data traffic.
- Our fintech strategy recalibration was well-advanced during the quarter, with a deliberate focus on enhancing the quality of our ecosystem. Although this led to a 25.7% decline in our active wallet base to 2.1 million compared to December 2024, it enabled us to onboard more high-value customers and improve float levels, thereby enhancing the overall health and sustainability of the ecosystem.
- As part of our long-term ambition to drive financial inclusion, we are launching a rural penetration strategy aimed at expanding access to financial services for underserved and financially excluded communities.
- Strong commercial momentum drove broad-based revenue growth across core segments, including data, voice, digital services and fintech. Service revenue grew by 40.5%, supported by the late-quarter tariff adjustments.
- Data traffic increased by 46.4%, while average usage per subscriber grew by 29.5% to 12.8GB.
- There was an addition of approximately 4.0 million smartphones onto the network during the quarter, bringing smartphone penetration to 60.7%, underscoring rising demand for high-speed data services.
- 4G network coverage expanded to 82.7% of the population (up 0.2pp), while 5G coverage remained stable at 12.7%, as we prioritised enhancing capacity over broadening coverage during the period.
- Maintained market leadership in the home broadband segment, adding approximately 233k new subscribers in Q1 and bringing our total broadband subscriber base to 3.5 million. We leveraged our 5G fixed wireless access and fibre-to-the-home offerings, which enable reliable connectivity to meet the evolving digital needs of households and businesses.
The company also continued to explore efficiency-enhancing opportunities through infrastructure-sharing partnerships. A key milestone was the agreement between MTN Group and Airtel Africa to collaborate on passive infrastructure in Nigeria, enabling accelerated coverage and driving network cost efficiencies.
With an insight into future growth, MTN Nigeria is geared at a pathway of total recovery.
“We reiterate our single-year guidance for FY 2025:
- Service revenue growth of ‘at least mid-40%’, as tariff adjustments take full effect.
- EBITDA margin of at ‘least mid-40%’, supported by disciplined cost management.
- Capex intensity in the upper teens, in line with our disciplined approach to capital allocation.
In terms of our balance sheet, we aim for a recovery in our retained earnings and shareholders’ equity positions to positive balances within the current financial year,” the report noted.
Toriola assured of the future: “With a disciplined approach and strong operational focus, we are well-positioned to deliver sustained growth and value. Together, we will continue to navigate the challenges and seize the opportunities ahead, ensuring that MTN Nigeria remains at the forefront of innovation, connectivity, and inclusive progress in Nigeria.”
