MTN Nigeria Communication Plc, one of the leading telecommunication firms in the country, has seen its cash generated from operating activities soar to the highest in about 10 years, according to data curated by BusinessDay.
According to the company’s latest unaudited results for the first half of 2025 (H1), the telecom giant generated N955.6 billion cash from operations, up from N533.2 billion reported in the prior year.
Analysts at Lagos-based research and consultancy firm CardinalStone said this strong outturn was buoyed by a surge in EBITDA and higher cash collections despite elevated finance costs.
“We expect MTNN to sustain its robust free cash flow profile in H2’25, aided by a strong core operating performance and expected moderation in CAPEX, given the strategic frontloading in H1’25,” the analysts said in a note recently.
Cash from operations reflects money earned from MTN’s core activities, such as voice, data, and digital services, after deducting day-to-day expenses.
The sharp increase, up 79 percent, points to a stronger ability to convert sales into real cash, a critical measure of business health in Nigeria’s challenging macroeconomic environment.
Meanwhile, investing cash flows printed at negative N642.79 billion, primarily due to the frontloading of CAPEX. The company also repaid N192.79 billion in borrowings and N147.31 billion in lease liabilities, in line with its debt reduction strategy.
Altogether, net cash flow from financing stood at negative N310.93 billion, though this was a marked improvement from the prior year, which stood at N684.94 billion.
Despite the CAPEX surge and debt service, the company ended the period with a N1.97 billion net increase in cash and cash equivalents to N257.60 billion, reflecting the strong underlying cash generation capacity.
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“Stronger operating cash gives MTN greater financial flexibility to invest in network expansion, accelerate 5G rollout, and service debt without overreliance on external borrowing — an important advantage as borrowing costs rise,” said a Lagos-based investment analyst.
“It also enhances the company’s capacity to maintain dividends, a key attraction for investors in the Nigerian market.”
MTNN last paid a dividend two years ago, on the back of a negative equity position, which currently sits at negative N42.51 billion as of H1’25, as against N458.01 billion in the whole of 2024. The equity position is likely to turn by the third quarter, analysts have said.
But with a return to profitability and a more robust cash flow, there is a likelihood of a resumption of dividend payment in the current financial year.
Profit at the South Africa-headquartered telco jumped the most in at least seven years, buoyed by tariff increases and more relaxed currency swings that made the company suffer the steepest losses since being listed on the Exchange.
Net income rose by 180 percent to N414.9 billion in the first six months of the following year, reversing the N519 billion losses it accrued in the prior year. This is as revenue climbed 54 percent to N2.38 trillion in the period under review.
One of the biggest turnarounds in MTN Nigeria’s financial turnaround was the steepest fall in FX losses. Its financials show that foreign exchange losses slowed to N5.2 billion from N887.7 billion last year as the naira maintained its steady value throughout the first half of the year.
CardinalStone sees the telecom giant trimming its full-year FX losses to N7.64 billion, up from N925.36 billion last year. This will translate to a record-setting N1 trillion net income while turnover hits more than N5 trillion.
