Legend Internet Plc, a leading player in Nigeria’s internet service space, has reported a post-tax profit of ₦32.9 million for the first quarter ended April 30, 2025—marking a 54.3% year-on-year decline from the ₦72.1 million posted in the same period in 2024.
The significant drop in profit was largely driven by a surge in operating expenses, which more than doubled to ₦122.6 million from ₦46.4 million in the corresponding quarter of the previous year. This sharp increase in costs offset gains in other areas of the business, underscoring the challenges of maintaining profitability amid rising operational overheads.
Modest Revenue Growth Anchored by Core Services
Despite the profit slump, Legend Internet recorded modest growth in revenue, with total income rising 2.2% to ₦319.9 million in Q1 2025, up from ₦313.0 million in the same period last year.
The company’s earnings were largely driven by its two key revenue streams: wholesale bandwidth services and subscription income, which collectively contributed ₦312.7 million. This indicates strong continuity in customer demand, especially in enterprise and consumer internet services.
Cost of Sales Decline Boosts Gross Profit
In a positive development, Legend Internet managed to reduce its cost of sales by 22%, bringing it down to ₦105.7 million from ₦135.7 million in Q1 2024. This reduction helped lift gross profit by 20.8%, reaching ₦214.2 million compared to ₦177.3 million a year earlier.
Financial Expenses and Depreciation Remain Stable
Depreciation and amortisation expenses saw only a marginal increase of 2.4%, rising to ₦38.5 million from ₦37.6 million in the same quarter of the previous year. Meanwhile, finance costs dropped significantly by 65.8% to ₦821,918, from ₦2.4 million, easing pressure on the bottom line despite the overall drop in net profit.
However, profit before tax still recorded a 42.6% decline, falling to ₦52.2 million in Q1 2025 from ₦90.9 million in Q1 2024.
Solid Balance Sheet and Market Valuation
As of April 30, 2025, Legend Internet’s total assets stood at ₦3.28 trillion, while shareholders' equity was valued at ₦2.95 trillion—reflecting a strong balance sheet despite short-term profitability pressures.
On the capital markets front, the company closed the quarter with a market capitalisation of ₦16.5 billion, and its share price was recorded at ₦8.25 per unit.
Listing on the Nigerian Exchange
It’s worth noting that Legend Internet Plc was listed on the Main Board of the Nigerian Exchange Limited by introduction on April 24, 2024. The listing has provided the company with greater visibility in the capital market and access to a broader base of institutional and retail investors.