After N2trn losses in 2 years, MTN returns to profitability

invests N202.4bn on network infrastructure   MTN Nigeria has invested NN202.4billion on network infrastructure and made a profit after tax of N133.7bn in the first quarter of 2025. This is contained in the telecom operator’s Q1 2025 financial results released on Tuesday. This is just as the company has finally returned to profitability after incurring […]

• invests N202.4bn on network infrastructure

 

MTN Nigeria has invested NN202.4billion on network infrastructure and made a profit after tax of N133.7bn in the first quarter of 2025.

This is contained in the telecom operator’s Q1 2025 financial results released on Tuesday.

This is just as the company has finally returned to profitability after incurring losses between 2022 and 2024 owing largely to naira depreciation.

Its foreign exchange-related losses following the unification of the exchange market were estimated at over N2 trillion.

After the losses, the telecom giant appears to be bouncing back as the Q1 results indicated.

The company said in the results that it invested 202.4bn in Q1 2025, a 159% increase year-on-year, to upgrade and expand network infrastructure, enhancing service quality and capacity.

The results also showed that the telecom operator achieved a profit after tax of N133.7bn, marking a significant turnaround from a loss of 392.7 billion in Q1 2024.

It also added 3.2 million subscribers in Q1 2025, bringing the total to 84.1m, an 8.2% increase year-on-year.

Its active data users also rose by 13% to 50.3 million, with data traffic increasing by 46.4% year-on-year.

The company’s service revenue surged by 40.5% to 1.06 trillion driven by increased demand for data and voice services.

It said its EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 65.9% to 492.7 billion, with the EBITDA margin expanding by 7.2 percentage points to 46.6%.

MTN said the substantial capital expenditure in the first quarter underscored its commitment to enhancing network infrastructure, which is pivotal for sustaining growth and improving customer experience.

Karl Toriola, CEO of MTN said, “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.

“Although macroeconomic uncertainties persist, we are encouraged by the relative stability of the naira during the period and the moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025. The exchange rate remained relatively stable at N1,537/US$ at the end of March 2025, while reported= inflation was 24.2%.”

 

 

 

On the 2025 outlook, he said, “We remain focused on executing our Ambition 2025 strategy, accelerating network investment, deepening digital and financial inclusion, and restoring shareholder value in a challenging but improving macro environment. We will continue to execute with discipline, agility, and a focus on sustainable growth”

 

 

 

Mr Mutiu Ladipo, a financial analyst, said the company’s financial turnaround in Q1 2025 reflected effective strategic execution and resilience in the face of economic challenges.

 

 

 

Its growth in data users and traffic highlights MTN Nigeria’s successful focus on digital services and customer value management, according to the company.