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May 03.2025

2 Minutes Read

How MTN Nigeria's ₦133.7 Billion Profit Signals a Turnaround

MTN Nigeria Sees Profit Surge in Q1 2025 Amid Economic Optimism

In a significant turnaround, MTN Nigeria reported a profit after tax of ₦133.7 billion (approximately $102.85 million) for the first quarter of 2025, marking its second consecutive profitable quarter. This comes as a welcome contrast to the staggering loss of ₦392.7 billion ($302.08 million) recorded in the same quarter of 2024. The positive results are largely attributed to improved foreign exchange conditions and pricing strategies in the telecom market.

Key Drivers Behind MTN’s Financial Recovery

Service revenue soared by 32.5% year-on-year, reaching ₦752.98 billion ($579.22 million). This growth has been propelled by a combination of price increases, heightened adoption of 4G and 5G networks, and a robust performance in MTN's digital and fintech segments. Notably, the company has made significant strides in improving operational efficiency, with its EBITDA margin enhancing to 38.5% due to the successful renegotiation of leases and a focused expense efficiency program.

Impact on Subscribers and Service Quality

For MTN’s 84 million subscribers, the financial upswing translates into tangible benefits such as accelerated network upgrades, improved service quality, and an expansion of rural connectivity initiatives. Enhanced internet speeds and reduced service disruptions are anticipated outcomes, positioning the company to better serve its customer base across Nigeria.

The Road Ahead: Opportunities and Challenges

Despite the palpable signs of recovery, significant challenges persist, including retained earnings that remain negative at ₦607 billion ($466.9 million), which may defer the resumption of dividends. Additionally, the looming class-action lawsuit and an inflation rate hovering around 28.3% pose risks to MTN's enhanced profit projections and overall financial health.

As MTN prepares for a new public offering to increase local ownership in the telecommunications sector, its strategy for diversification through fintech and broadband services appears promising. With initiatives aimed at broadening internet access and strengthening digital services, MTN Nigeria is poised to navigate both the opportunities and challenges that lie ahead in the increasingly competitive telecommunications landscape.

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How MTN Nigeria's ₦133.7 Billion Profit Signals a Turnaround

MTN Nigeria Sees Profit Surge in Q1 2025 Amid Economic Optimism

Key Drivers Behind MTN’s Financial Recovery

Impact on Subscribers and Service Quality

The Road Ahead: Opportunities and Challenges

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