MTN Nigeria Communications Plc has reported a growth in its service revenue by 40.5 per cent to N1.0 trillion in the first quarter ended 31 March, 2025.
The report was released by the communications firm on Wednesday.
Highlights:
· Total subscribers increased by 8.2% to 84.1 million
· Added 3.2 million subscribers in Q1 2025
· Active data users rose by 13.0% to 50.3 million
· Added 2.6 million active users in Q1 2025
· Service revenue grew by 40.5% to N1.0 trillion
· EBITDA1 increased by 65.9% to N492.7 billion
· EBITDA1 margin expanded by 7.2 percentage points (pp) to 46.6%
· Profit after tax of N133.7 billion (Q1 2024: negative N392.7 billion)
· Earnings per share of N6.38 kobo
· Capital expenditure (Capex), excluding leases, increased by 159.0% to N202.4 billion
· Positive free cash flow (FCF) of N209.9 billion
Challenging But Improving Operating Conditions
Although macroeconomic uncertainties persist, the firm said it is 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%.
During the quarter, it received regulatory approval for price adjustments, a critical enabler to sustain ongoing investment in the industry and maintain the quality of service for our customers.
This, the firm said, has empowered it to accelerate network investments with N202.4 billion in capex (up 159%), focused on boosting capacity and improving user experience.
MTN said it also continued to explore efficiency-enhancing opportunities through infrastructure-sharing partnerships.
A key milestone was the agreement between MTN Group and Airtel Africa to collaborate on passive infrastructure in Nigeria, enabling accelerated coverage and driving network cost efficiencies.
Commercial And Financial Momentum
Its commercial performance remained strong, supported by sustained investment in network capacity, solid demand, and proactive customer value management (CVM) initiatives.
In Q1, it added 3.2 million new subscribers, bringing total base to 84.1 million. During the same period, active data users rose by 2.6 million, increasing the base to 50.3 million and contributing to a 46.4% YoY growth in data traffic.
This growth, MTN said, was supported by its approach to gross connections and churn management, as well as continuous innovation in customer value propositions.
The firm commenced the phased implementation of the new tariff structure in mid-February 2025 across its data and voice bundles, with the majority of adjustments taking effect in March.
“While the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted CVM initiatives.
“Our fintech strategy recalibration was well-advanced during the quarter, with a deliberate focus on enhancing the quality of our ecosystem.
Although this led to a 25.7% decline in our active wallet base to 2.1 million compared to December 2024, the report said the development enabled MTN to onboard more high-value customers and improve float levels, thereby enhancing the overall health and sustainability of the ecosystem.
“As part of our long-term ambition to drive financial inclusion, we are launching a rural penetration strategy aimed at expanding access to financial services for underserved and financially excluded communities. We remain committed to improving the quality and engagement of our wallet base, while accelerating the development of advanced fintech services.”
These efforts, MTN said, are aligned with its strategic objective to build a more robust, inclusive, and scalable digital financial ecosystem.
Profitability recovery and balance sheet progress
Its commercial momentum drove broad-based revenue growth across core segments, including data, voice, digital services, and fintech. Service revenue grew by 40.5%, supported by the late-quarter tariff adjustments.
Cost pressures were mitigated by our revised IHS tower lease agreement, which reduced foreign exchange (forex) exposure and capped price increases, as well as improved underlying expense efficiency initiatives.
As a result, its EBITDA increased by 65.9%, and the EBITDA margin expanded by 7.2pp to 46.6%, which the firm said aligns with its guidance.
“Notably, the stability in the exchange rate in Q1 versus December 2024 helped reduce forex losses.”
Overall, it reported a significant turnaround in our bottom line, with a profit after tax of N133.7 billion versus a loss of N392.7 billion in the prior year.
“This performance reflects the successful delivery of the five strategic priorities we committed to at the Extraordinary General Meeting (EGM) held on 30 April 2024.”
Retained earnings improved to negative N474.1 billion (December 2024: negative N607.5 billion) and shareholders’ equity to negative N324.6 billion (December 2024: negative N458.0 billion).
It also delivered a free cash flow of N209.9 billion, representing a decrease of 54.8%, mainly due to the accelerated capex in Q1 and the elevated prior-year FCF base, due to larger naira depreciation and accrual build-up in that period.
“We expect a progressive recovery in FCF as the full impact of the tariff increase is realised,” the report added.
Outlook
“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.”
Speaking on the feat, CEO’s Commentary, Karl Toriola 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.”
