MTN Nigeria records revenue of N1.058trn and PAT of N134b in Q1 2025
MTN Nigeria published its unaudited financial results for the first quarter of 2025 on April 29th 2025, reporting a remarkable turnaround with a top-line profit of ₦1.06tn. This represents growth of 40.5% y/y and 107.1% q/q.
The strong performance was primarily driven by the data and voice segments, which contributed 50.0% and 33.4% to total revenue, respectively. Data revenue grew by 51.6% y/y and 17.5% q/q, while voice revenue rose by 32.0% y/y and 18.6%
q/q.
These segments benefitted from price adjustments following the recent approved tariff hike, alongside a 5.5% increase in the active user base, which further boosted data consumption.
Supported by both infrastructure-sharing partnerships with Airtel Africa and higher revenues from the recent tariff hike, MTN Nigeria strengthened its capacity to invest in network expansion, committing ₦202.4b in capital expenditure during the quarter.
While these initiatives helped ease operating cost pressures, overall expenses still rose by 23.9% y/y, driven mainly by the impact of naira depreciation on lease-related costs. However, this was partly mitigated by renegotiated tower lease agreements, which reduced their foreign exchange exposure. Consequently, EBITDA surged by 65.9% y/y and 108.7% q/q, with the EBITDA margin improving by 18.1% to 46.6% y/y and by 1.8% q/q.
Net interest expenses increased by 44.0%, on the backdrop of elevated borrowing costs, increased lease obligations from naira depreciation, and additional leases from renewed tower lease agreements. However, net foreign exchange losses contracted sharply to N5.5b, reflecting the relative stability of the naira during the quarter—from N1,535/US$ at year-end 2024 to N1,537/US$ at the end of March 2025.
MTN Nigeria reaffirmed its 2025 guidance, projecting service revenue growth of at least mid-40% and an EBITDA margin in the same range, driven by the full impact of tariff adjustments and continued cost discipline. Capital expenditure is expected to remain elevated within 17% – 19%, as the company prioritises network expansion.
Management also targets a return to positive retained earnings and shareholders’ equity within the year. Over the medium term, the company
anticipates sustaining service revenue growth of at least 20%, an EBITDA margin recovery to 50%, and a gradual moderation in capex spend as current investments mature.
However, management acknowledges that macroeconomic headwinds—particularly currency volatility and potential demand sensitivity to new tariffs—could influence the pace of recovery.
In conclusion, MTN Nigeria has delivered a strong recovery, driven by the positive impact of tariff adjustments and prudent cost management. The outlook remains robust, supported by sustained investments in network infrastructure, a clear emphasis on operational efficiency, and ongoing initiatives to expand its active user base. With these strategic pillars in place, MTN Nigeria is well-positioned to generate attractive shareholder value over both the short and medium term. SOURCE: Coronation Asset Management Limited
