National Wire About Nigerians, Nigerian Business and Other Stories
MTN Nigeria Communications Plc has reported a significant turnaround in its Q1 2025 unaudited results, with earnings per share (EPS) of NGN6.38, compared to a loss per share of NGN18.63 in Q1 2024.
The improvement was driven by a 40.5% year-on-year increase in revenue to NGN1.05 trillion, fueled by growth across key segments, including data, voice, digital, and fintech.
Key Highlights:
– Data segment grew 51.5% year-on-year, driven by an expanding user base, increased data consumption, and price adjustments.
– Voice segment revenue increased 27.7% year-on-year, supported by subscriber acquisition, retention, and price adjustments.
– Digital and fintech segments posted impressive gains, driven by higher demand for content and growing adoption of MTNN’s airtime lending product, Xtratime.
– Net FX losses plummeted 99.2% year-on-year to NGN5.53 billion, reflecting relative naira stability and reduced foreign currency-denominated debt.
Financial Performance:
– Revenue: NGN1.05 trillion (up 40.5% year-on-year)
– EBITDA margin: 46.6% (up 714 basis points year-on-year)
– Pre-tax profit: NGN202.65 billion (vs. pre-tax loss of NGN575.69 billion in Q1 2024)
– Profit after tax: NGN133.68 billion (vs. loss after tax of NGN392.69 billion in Q1 2024)
Outlook:
The company’s management is confident about a complete recovery, return to profitability, and restoration of a positive equity balance.
The full impact of the new tariff structure is expected to materialize in Q2 2025, further supporting the company’s momentum.
According to the CEO, Karl Toriola: “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.
“Although macroeconomic uncertainties persist, we are encouraged by the relative stability of the naira during the period and the moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025. The exchange rate remained relatively stable at N1,537/US$ at the end of March 2025, while reported inflation was 24.2%.
“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. We 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.
Speaking on the company’s solid commercial and financial momentum; “Our commercial performance remained strong, supported by sustained investment in network capacity, solid demand, and proactive customer value management (CVM) initiatives. 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. This growth was supported by our disciplined approach to gross connections and churn management, as well as continuous innovation in customer value propositions.
“We commenced phased implementation of the new tariff structure in mid-February 2025 across our data and voice bundles, with the majority of adjustments taking effect in March. While the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted CVM initiatives.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. We remain committed to improving the quality and engagement of our wallet base, while accelerating the development of advanced fintech services. These efforts are aligned with our strategic objective to build a more robust, inclusive, and scalable digital financial ecosystem”, he added.
