MTN Nigeria achieves a spectacular N1.1 trillion profit in 2025, driven by data growth, fintech expansion, and FX gains

MTN Nigeria Communications Plc has delivered a remarkable turnaround in 2025, reporting a profit after tax of N1.1 trillion compared with a N400.4 billion loss recorded in 2024.

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The recovery was driven by stabilising foreign exchange, disciplined cost management, and robust growth in data and fintech revenues.

Service revenue rose 55.1 per cent year-on-year to N5.2 trillion, underpinned by a 74.5 per cent surge in data revenue and a 79.7 per cent increase in fintech income.

Voice services also saw a 42.1 per cent gain, highlighting the continued relevance of traditional telephony amid rapid digital adoption.

Earnings before interest, tax, depreciation and amortisation more than doubled to N2.7 trillion, with the EBITDA margin expanding 13.6 percentage points to 52.7 per cent, reflecting a sharp improvement in cost efficiency.

A significant contributor to the turnaround was foreign exchange performance. MTN Nigeria recorded a net FX gain of N90.3 billion in 2025, reversing a N925.4 billion loss in the prior year.

The improvement followed reduced dollar-denominated obligations and relative currency stability, with the naira closing the year around N1,436 per dollar.

Chief Executive Officer Karl Toriola described 2025 as a turning point for the company, citing macroeconomic improvement and tighter financial discipline as key drivers of profitability and equity restoration.

The company’s balance sheet and cash position strengthened considerably. Retained earnings rebounded to N400.4 billion from a deficit of N607.5 billion, while shareholders’ equity improved to N548.7 billion.

Free cash flow surged 215.5 per cent to N1.2 trillion, and MTN Nigeria moved into a net cash position of N104.8 billion after repaying N434 billion in borrowings and clearing commercial papers.

Subscriber metrics showed continued expansion.

Total subscribers rose 7.9 per cent to 87.3 million, active data users increased 11.6 per cent to 53.2 million, and average data usage per subscriber reached 13.1GB. MoMo wallet adoption surged 30.8 per cent to 3.7 million active wallets, supported by a 156 per cent rise in customer deposits.

Operating expenses were contained, increasing 16.7 per cent well below revenue growth with renegotiated tower leases and efficiency initiatives aiding margin expansion.

The board recommended a final dividend of N15 per share, bringing total payout to N20 per share, marking a return to shareholder distributions after a pause in 2024.

Management reaffirmed medium-term targets of low-20 per cent average service revenue growth and EBITDA margins in the mid-to-high 50 per cent range, assuming inflation moderates and exchange rates remain stable.

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Analysts noted that MTN Nigeria’s recovery reflects not just a cyclical rebound but a structurally stronger position to capture rising demand for data and digital financial services.