A year after posting one of the largest losses in its history, MTN Nigeria Communications Plc delivered a dramatic turnaround in 2025, reporting a profit after tax of N1.1 trillion compared to a N400.4 billion loss recorded in 2024.
The recovery was underpinned by improved foreign exchange stability, disciplined cost management, and sustained growth in data and fintech revenues, which significantly lifted earnings and restored shareholder value.
Revenue Growth Accelerates
Service revenue rose 55.1 per cent year-on-year to N5.2 trillion for the financial year ended December 31, 2025. Data revenue was the primary growth engine, surging 74.5 per cent, while fintech revenue climbed 79.7 per cent, reflecting deepening demand for digital connectivity and financial services.
Voice revenue also remained resilient, increasing 42.1 per cent, underscoring the continued relevance of traditional services even as digital adoption accelerates.
Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled, rising 108.9 per cent to N2.7 trillion. EBITDA margin expanded by 13.6 percentage points to 52.7 per cent — a sharp improvement driven by topline growth outpacing cost expansion.
FX Gains Reverse Prior-Year Losses
A major contributor to the rebound was the reversal of foreign exchange losses. The company recorded a net FX gain of N90.3 billion in 2025, compared to a steep N925.4 billion loss in 2024.
The improvement followed a reduction in dollar-denominated obligations and relative currency stability during the year. The naira closed 2025 around N1,436 per dollar, compared with approximately N1,535 per dollar at the end of 2024, easing pressure on the balance sheet.
Chief Executive Officer Karl Toriola described 2025 as a turning point, citing improved macroeconomic conditions and tighter financial discipline as key drivers of the company’s restored profitability and strengthened equity position.
Balance Sheet and Cash Flow Strengthen
Retained earnings rebounded to a positive N400.4 billion, from a deficit of N607.5 billion in 2024. Shareholders’ equity similarly recovered to N548.7 billion from a negative N458 billion position the previous year.
Free cash flow surged 215.5 per cent to N1.2 trillion, reflecting stronger operating performance and improved working capital management.
Capital expenditure (excluding leases) more than doubled to N1 trillion, as the company intensified investment in network expansion, spectrum optimisation, and fibre rollout to support growing traffic volumes and enhance service quality.
By year-end, MTN Nigeria had moved into a net cash position of N104.8 billion, a significant shift from negative N719.5 billion in 2024. During the year, it repaid N434 billion in borrowings and cleared outstanding commercial papers without raising new debt.
Subscriber, Data Metrics Climb
Total subscribers increased by 7.9 per cent to 87.3 million, while active data users rose 11.6 per cent to 53.2 million. Data traffic expanded 34 per cent, and average data usage per subscriber grew 20 per cent to 13.1GB. Smartphone penetration reached 66.1 per cent, reinforcing the structural shift toward data-led consumption.
On the fintech front, active MoMo wallets grew 30.8 per cent to 3.7 million, supported by a 156 per cent rise in customer deposits, highlighting growing trust and adoption of digital financial services.
Costs Contained, Margins Expand
Operating expenses increased 16.7 per cent — well below revenue growth — reflecting efficiency gains and renegotiated tower lease agreements. Cost of sales rose 30.3 per cent but remained slower than topline expansion, enabling margin accretion.
The board recommended a final dividend of N15 per share, bringing total dividend for the year to N20 per share. The payout marks a return to shareholder distributions after dividends were suspended in 2024 due to losses.
Outlook
Management reaffirmed its medium-term target of average service revenue growth in at least the low-20 per cent range and upgraded EBITDA margin guidance to the mid-to-high 50 per cent range. The outlook assumes inflation moderating to the mid-teens and exchange rates trading between N1,400 and N1,700 per dollar.
With improved margins, reduced currency exposure, stronger cash generation and renewed dividend payments, 2025 represents more than a cyclical recovery for MTN Nigeria. The company appears structurally better positioned to capture rising demand for data and digital financial services in an increasingly connected market.