Following a ₦392.7 billion loss in the same period the previous year, MTN Nigeria Communications Plc declared a profit after tax of ₦133.7 billion ($102.85 million) for the first quarter of 2025. The telecom operator reported a 41% increase in income to ₦1.06 trillion, fuelled by development in its fintech and digital businesses, lower foreign currency (FX) losses, and rate hikes.
The findings, which were made public on Tuesday, demonstrate MTN Nigeria’s calculated attempts to surmount financial obstacles and set itself up for long-term success in the fiercely competitive Nigerian telecom sector. In sharp contrast to the ₦392.7 billion ($302.08 million) loss reported in Q1 2024, MTN Nigeria’s unaudited financial statement for Q1 2025 showed a 134% year-over-year growth in earnings after tax.
FX losses after the depreciation of the naira, which had affected the company’s profitability for several quarters, were mostly responsible for the 2024 loss. Thanks to increased forex liquidity in the Nigerian market, MTN Nigeria was able to cut its foreign exchange losses by 99% in the first quarter of 2025. The total income for the quarter was ₦1.06 trillion, with service revenue increasing by 32.5% to ₦752.98 billion ($579.22 million).
Improved operational efficiency was evident in the 97% increase in operating profit and the 66% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA).
Retained earnings for the corporation, however, were still negative at ₦607 billion ($466.9 million), a persistent problem that can postpone the start of dividend payments. Analysts credited the Nigerian Communications Commission’s (NCC) January 2025 tariff rises for the income gain. Despite a 28.3% inflation rate in Q1 2025, the changes assisted MTN Nigeria in offsetting operating expenses. Service revenue and EBITDA margins are now expected to expand by mid-40% for the rest of 2025, according to analysts, available to BrandSpur telecom and information news desk.
Furthering, in the first quarter of 2025, MTN Nigeria claimed improvements in operations across all of its business segments. The corporation recovered from 2024 losses brought on by the NIN-SIM linkage enforcement, stabilising its subscriber base at over 84 million. Due to a rise in the use of 4G and 5G networks, the number of active data users climbed by 12% annually. To improve service quality and further Nigeria’s objectives for digital inclusiveness, the business recently extended its 5G infrastructure.
MTN Nigeria’s fintech and digital businesses grew significantly as part of an effort to diversify its revenue sources. MoMo, the company’s fintech division, processed $16.8 billion in merchant payments and saw a 21% rise in wallet transactions year over year. More than a quarter of fintech revenue came from digital services. Additionally, to better meet the government’s goal of 90% broadband penetration by the end of 2025, MTN Nigeria rebranded its fiber-to-the-home division as FibreX.
According to MTN Nigeria’s CEO, Karl Toriola: “FibreX and MoMo are key pillars of our strategy to go beyond traditional telecom services.
“We are committed to supporting Nigeria’s digital economy while delivering value to our customers,” he added.
Continuing, the performance of MTN Nigeria in the first quarter of 2025 comes as the firm aims to regain its position as the MTN Group’s top revenue maker. With $2.89 billion in sales, MTN South Africa overtook MTN Nigeria in 2024, while Ghana led the West and Central Africa area with $3.1 billion.
Following the NCC’s approval of rate hikes, MTN Group reinstated revenue guidance, demonstrating its confidence in Nigeria’s recovery. Operators like Glo and Airtel are fighting for market share in Nigeria’s fiercely competitive telecom sector. MTN Nigeria is well-positioned to hold onto its dominance thanks to its emphasis on digital offerings, operational effectiveness, and the introduction of 5G.
However, in a time of high inflation, the business must manage consumer concerns about cost. The business is aiming for a mid-40% increase in service revenue and EBITDA margins for the year, and overall, the first quarter of 2025 numbers show a bright future. It is anticipated that plans for a public offering and further 5G expansion will strengthen its financial situation.
Improved digital offerings, increased rural connection, and better network quality might all be benefits of a stronger MTN Nigeria for customers. In addition to solidifying its position in Nigeria, the telecom behemoth’s outstanding Q1 2025 performance also bolsters the MTN Group’s larger expansion strategy in Africa.
