MTN Nigeria Communications Plc’s full year (FY) 2025 results mark a definitive turning point, as the telecom giant transitioned from a challenging 2024 to a record-breaking performance that reaffirms its role as the backbone of Nigeria’s digital economy.
MTN Nigeria wiped out its 2024 losses to post a record-breaking N1.11 trillion profit – one of the most significant financial turnarounds in African corporate history.
This remarkable comeback, supported by a strengthening Naira and a 55.1 percent rise in service revenue, restores the company’s ability to reward shareholders with dividend.
By doubling its network investment to N1 trillion in 2025, MTN has significantly expanded its 5G footprint and data capacity to meet the needs of its 53.2 million active data users.
The FY’25 scorecards…
MTNN recorded total subscribers increased by 7.9 percent to 87.3 million. The active data users increased by 11.6 percent to 53.2 million. Service revenue increased by 55.1 percent to N5.2 trillion. EBITDA increased by 108.9 percent to N2.7 trillion.
EBITDA margin increased by 13.6 percentage points to 52.7 percent. Profit After Tax (PAT) of N1.1 trillion, rose by 377.9 percent (FY 2024: negative N400.4 billion). MTNN recorded earnings per share (EPS) of N53.07 kobo (FY 2024: negative N19.05 kobo).
The company reported retained earnings and shareholders’ equity of N400.4 billion and N548.7 billion, respectively. Capex, excluding leases, more than doubled to N1 trillion with a capex intensity of 19.3 percent. MTNN recorded free cash flow (FCF) of N1.2 trillion, up 215.5 percent. It also proposed final dividend of N15 per share.
With a staggering turnaround to N1.11 trillion in profit after tax (PAT) and a 55.1 percent surge in service revenue, the results highlight more than just financial recovery; they showcase a massive acceleration in infrastructure investment.
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Analysts target price signals upside potential …
According to Philip Anegbe-led team of analysts at Lagos-based CardinalStone, their target price for MTNN is N933.33, a remarkable upside from N790 the stock closed as at March 9.
The analysts twelve-month target price of N933.33 represents an 18.1 percent potential upside from its current reference price, thereby triggering “a BUY recommendation”.
The stock had reached a 52-week high of N819 as against a 52-week low of N230. MTNN market capitalisation stood at N16.229trillion as at Tuesday March 10. At the Nigerian Exchange Limited (NGX), the telecom giant has 20,995,560,103 shares outstanding.
“MTN Nigeria Communications Plc (MTNN) successfully turned the corner in FY’25, reversing its negative equity and retained earnings positions and declaring a final dividend of N15/share (total: N20/share) in relation to the N1.1 trillion PAT in FY’25”, they noted.
“In FY’26, we forecast an EPS of N80.84 per share driven by a robust revenue growth (+30.4percent), stronger margins, and a lower finance cost. This higher EPS inspired our dividend per share (DPS) expectation of N60.78, which translates to a dividend yield of 7.7 percent at the current market price,” they added.
“We arrived at this DPS using a dividend payout ratio of 75.2 percent, which is conservatively below MTNN’s 2020–2022 average payout of 79.1percent, leaving potential for a positive surprise on this front. Over the next five years, we project an average dividend per share of N132.14, implying an average dividend yield of 16.7 percent,” CardinalStone analysts added.
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CEO speaks…
Karl Toriola, CEO, MTNN said, “2025 marked a significant turning point in our business performance and resumption of dividend payments. In the period, we returned to profitability, generated stronger free cash flow and restored positive retained earnings and shareholders’ funds.”
“Our balance sheet resilience was driven by the robust performance of the business as well as a focused reduction in foreign currency exposure and financial discipline”, he added.
“These results were delivered through excellent commercial execution, commitment to operational efficiency and disciplined capital allocation, underpinned by a supportive macroeconomic environment,” he said.
“Looking ahead, we are encouraged by the trajectory of our business as we seek to consolidate the significant gains achieved in 2025. The favourable macroeconomic environment, our disciplined execution and continued network leadership position us well for sustained growth across our connectivity and platform businesses.
“Our commitment to operational excellence and disciplined capital allocation will remain steadfast, ensuring that we progressively strengthen our balance sheet. We remain focused on driving profitable growth, reinforcing our financial strength and providing consistent returns to our shareholders,” the CEO said.
Outlook…
MTNN financial position provides the company with the flexibility to fund growth and returns. Liquidity remains strong and MTNN exposure to foreign exchange risks has been significantly reduced.
“We will maintain this resilience by actively managing currency risk, optimising funding, and maintaining prudent leverage as we invest to meet rising demand. Our capital allocation will remain disciplined, prioritising investments that protect our market leadership, support cash generation, and align with our dividend policy,” MTNN noted.
Building on the strong recovery in 2025 – marked by a return to profitability, restoration of positive retained earnings and equity balances and the resumption of dividends – MTNN entered 2026 with optimism and a focus on disciplined execution.
While global geopolitical developments pose some risk to MTNN operating environment and outlook, the company is encouraged by the improved macroeconomic backdrop in Nigeria, supported by ongoing policy implementation.
“This provides a more supportive foundation for our business. Our investment thesis remains compelling, underpinned by sustained growth in data consumption and our commitment to network leadership, superior customer experience and disciplined capital allocation. As part of our broader connectivity strategy, we see opportunity in the home broadband, where we aim to ‘own the home’ through economically driven FTTH deployment and rapid FWA scaling. We will balance cost, feasibility, demand and execution speed to deliver best-in-class connectivity at scale.
“We will also continue to scale our platforms. In fintech, our main goals are to scale MoMo PSB’s active user base, deepen financial inclusion and drive economic impact across Nigeria. We aim to drive advanced services, including digital payments, by providing seamless, accessible, and secure financial services, while also enhancing monetisation through CVM initiatives,” MTNN further noted.
