MTN Nigeria Communications Plc reports revenue of N1.50tn for Q1 2026

MTN Nigeria Communications Plc delivered a compelling set of unaudited Q1 2026 numbers, strengthening its positioning as one of the most resilient earnings stories in Nigeria’s equity market. The Group reported a 41.6% year-on-year expansion in revenue to N1.50tn, alongside a modest 1.8% quarter-on-quarter uptick, reflecting both sustained demand-side strength and a more supportive macro backdrop characterized by improved FX liquidity and relative Naira stability.

Service revenue rose by 41.8% to approximately N1.49tn, driven primarily by accelerated growth in data consumption, fintech expansion, improved voice revenue performance, and the continued monetization of its rapidly growing subscriber base. Data revenue remained the dominant growth engine, surging 56.2% year-on-year to N827.2bn as active data users increased 9.5% to 55 million subscribers. Smartphone penetration climbed further to 66.2%, while average monthly data consumption per subscriber rose materially to 14.3GB, underscoring MTN’s strengthening position within Nigeria’s fast-expanding digital economy.

Revenue-Generating Subscribers

Operationally, the telecom giant added 2.3 million revenue-generating subscribers during the quarter, lifting total subscribers by 6.5% year-on-year to 89.5 million. The strong subscriber momentum continues to validate MTN Nigeria’s extensive network investments, improved service quality, and widening digital ecosystem strategy, particularly within data and fintech services.

Profitability metrics expanded sharply, reflecting both operating leverage and improved cost discipline. EBITDA advanced 68.1% year-on-year to N828.3bn, with EBITDA margin expanding by 8.7 percentage points to 55.3%, firmly within management’s medium-term target range. The margin expansion was particularly notable given the persistent inflationary and energy cost pressures that characterized parts of the quarter. Management attributed the stronger earnings profile to disciplined operating expenditure control, improved FX conditions, and continued scale efficiencies across the business.

Below the operating line, MTN Nigeria recorded a remarkable turnaround in bottom-line performance. Profit before tax surged approximately 170% to N546.4bn, while profit after tax jumped 165.9% to N355.5bn. Earnings per share rose correspondingly by 166.1% to N16.95, reinforcing the company’s significantly improved earnings quality following the FX-induced pressures experienced during prior periods.

Capital expenditure

Capital expenditure remained elevated as MTN intensified investments in network capacity, infrastructure modernization, and digital service expansion. Capex excluding leases increased 92.8% year-on-year to N390.3bn, highlighting management’s continued commitment toward long-term network leadership and capacity enhancement amid rising demand for high-speed connectivity. Despite the aggressive investment cycle, free cash flow strengthened 55.6% to N326.5bn, demonstrating the Group’s improving cash generation profile and stronger balance sheet resilience.

From a strategic perspective, the Q1 2026 performance reflects a combination of favorable industry dynamics and effective execution. Nigeria’s telecom sector continues benefiting from structural demand drivers including rising smartphone adoption, increasing remote work and digital consumption patterns, fintech penetration, and enterprise digitization. MTN Nigeria appears particularly well-positioned to capitalize on these trends given its scale advantage, network leadership, and expanding ecosystem across data, voice, enterprise solutions, and fintech services.

Management also highlighted the supportive impact of a relatively stronger Naira during the period, with the exchange rate closing around N1,387/US$ compared with N1,436/US$ at the end of 2025. This relative currency stability helped moderate some FX-related cost pressures that had materially affected earnings in previous periods. Nonetheless, the company acknowledged that elevated geopolitical tensions and rising global energy prices remain medium-term risk factors capable of reintroducing inflationary pressures into the operating environment.

Overall, MTN Nigeria’s Q1 2026 results reinforce the investment case for the company as a dominant digital infrastructure and connectivity play within Nigeria’s economy. The combination of strong top-line growth, expanding margins, accelerating data monetization, robust subscriber additions, and significantly improved profitability suggests the company is entering a more favorable earnings cycle after navigating one of the most challenging macroeconomic periods in recent Nigerian corporate history.