MTN Nigeria returned to the black and has resumed dividend payments in the year to end-December as economic conditions in the West African nation improved.
MTN Nigeria, the first of MTN Group’s African units to release annual results, reported a profit after tax of 1.1-trillion naira (about R12.8bn) after a loss of 400.4-billion naira a year ago.
Service revenue increased by 55.1% to 5.2-trillion naira, while earnings before interest, tax, depreciation and amortisation (ebitda) increased by 108.9% to 2.7-trillion naira, the group said on Friday.
Total subscribers increased by 7.9% to 87.3-million, while active data users rose by 11.6% to 53.2-million.
A dividend of 15 naira per share was declared, bringing the total dividend for the year to 20 naira per share.
“The year 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,” said CEO Karl Toriola.
“Our balance sheet resilience was driven by the robust performance of the business and a focused reduction in foreign currency exposure and financial discipline,” he added.
Nigeria’s macroeconomic conditions improved further in 2025 with a more stable foreign exchange market, improved forex liquidity and a sustained decline in inflation, the group said.
“These factors, supported by our tower lease contract renegotiation, substantially reduced the pressure on our margins, laying a strong foundation for sustainable cash generation and shareholder returns,” said Toriola.
The group expanded its broadband coverage by 1.1 percentage points to 91.2% through its network investments.
The structural demand for data in Nigeria was demonstrated by the 34% increase in data traffic on MTN’s network that underpinned strong service revenue growth in the period.
“We more than doubled the investment in our network to 1-trillion naira in 2025 (2024: 443.5-billion naira), strengthening service quality and user experience in line with our commitment to our customers and the government, while positioning our business for growth in an increasingly data-driven market.”
The group secured a three-year spectrum lease with T2 Mobile, effective from October 2025, as part of its national roaming agreement.
Data remained the primary growth engine, complemented by solid contributions from voice, fintech and digital services, Toriola 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,” he said.
The group provided medium-term guidance of an average service revenue growth target of “at least the low 20%” and revised its ebitda margin upward from the 53%-55% range to “mid to high 50%”.
MTN Nigeria’s earnings were published before news of the US and Israeli attacks on Iran and counterstrikes by Tehran. The latest developments in the Gulf will further restrict the MTN group’s ability to realise value from its 49% stake in Irancell and add another layer of complexity to the group’s plans to exit the Middle East.
Still, MTN shares resisted the pressure on Friday, rising almost 2%. Over the past 12 months the stock has gained more than 72%.
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