MTN Nigeria Communications Plc has reported a strong half-year financial performance, with revenue rising by 54.6 percent year-on-year to N2.4 trillion for the six months ended June 30, 2025.
The company also delivered a free cash flow of N409.8 billion, an 18 percent increase from the prior year, despite significantly ramping up capital expenditure to expand network capacity and digital infrastructure.
This performance marks a sharp recovery from the previous year, when MTN posted a N519.1 billion loss in H1 2024. In contrast, the company recorded a profit after tax (PAT) of N414.9 billion in H1 2025, driven by increased demand for its services, price adjustments implemented during Q2, and operational cost efficiencies.
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“The growth in revenue and strong cash generation reflect the resilience of our business and the success of our turnaround strategy. We remain committed to sustained investments that enhance customer experience and support Nigeria’s digital transformation,” Karl Toriola, the chief executive officer of MTN Nigeria, stated.
MTN’s capital expenditure, excluding leases, rose by 288.4 percent to ₦565.7 billion, as the company accelerated investments in its mobile and fixed broadband networks. Total capex, including right-of-use assets from revised tower lease agreements, rose by 208.2 percent. Despite this, MTN generated a free cash flow of N409.8 billion, underlining its strong operational efficiency and disciplined financial management.
The capex boost supported strategic initiatives including the deployment of 240 additional 4G sites, expansion of fibre-to-the-home (FTTH) broadband solutions, and the launch of the Dabengwa Tier III Data Centre, the first phase of a $240 million infrastructure project that will become the largest in West Africa.
MTN’s revenue growth was broad-based across key segments. For instance, data revenue surged by 69.2 percent, supported by the addition of 3.3 million new active data users, increased data traffic (+41.2 percent), and higher average data usage per subscriber.
Voice revenue rose 40.3 percent, benefiting from a larger subscriber base (now 84.7 million) and new pricing structures.
Fintech revenue jumped 71.8 percent, powered by airtime lending and rising customer deposits, which increased nearly fivefold since December 2024.
Although the number of active fintech wallets dropped by 6.1 percent to 2.7 million compared to December 2024, MTN recorded a rebound in Q2 with over 562,000 wallets added, alongside a 49.7 percent increase in active agents.
The company also made progress on its balance sheet repair. Retained earnings improved to N–192.9 billion (from N–607.5 billion in December 2024), while shareholders’ equity recovered to N–42.5 billion, with a full return to positive territory expected in Q3 2025.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 119.5 percent to N1.2 trillion, with the EBITDA margin expanding by 15 percentage points to 50.6 percent.
MTN has upgraded its full-year 2025 guidance, now targeting service revenue growth of at least low-50 percent; EBITDA margin of at least low-50 percent and capex intensity moderation in H2 to support stronger free cash flow.
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MTN said its performance was supported by improving macroeconomic conditions, including naira stability at N1,530/$, better forex liquidity, and inflation moderation to 22.2 percent in June 2025. Policy reforms and the Central Bank’s decision to hold the Monetary Policy Rate at 27.5 percent also helped anchor the company’s financial recovery.
The company also received regulatory approval for a national roaming agreement with 9mobile, and has commenced onboarding of mobile virtual network operators (MVNOs), moves aligned with its Ambition 2025 strategy and broader industry collaboration goals.
Looking ahead, MTN reiterated its commitment to expanding home broadband coverage, investing in fintech innovation, and scaling digital services. It also announced a N3 billion commitment to the federal government’s 3 Million Technical Talent (3MTT) programme and launched a N100 million startup accelerator to empower African tech innovators.
“We are focused on driving long-term value creation while delivering inclusive digital progress across Nigeria,” Toriola said.
