MTN Nigeria Returns to Profit with ?133.7B
in Q1 2025, Its First Since 2023
MTN Nigeria has recorded a profit of ?133.7 billion
in the first quarter of 2025, marking a sharp turnaround from a ?392.7
billion loss in the same period last year. This is the company’s first
quarterly profit since 2023.
The recovery is attributed to a 41% year-on-year
revenue increase to ?1.06 trillion, driven by regulatory-approved tariff
hikes, reduced FX losses, and growth in digital and fintech
services.
MTN’s FX losses—previously a major drag due to naira
devaluation—dropped by 99% this quarter, following improved forex liquidity in
Nigeria.
Despite this progress, MTN’s retained earnings
remain negative at ?607 billion, potentially delaying dividend payouts.
Subscriber Growth and Digital Expansion
MTN also reported operational gains across its
segments:
The telco also grew its fintech and digital
service arms, with its MoMo platform processing $16.8 billion in
transactions, and digital services contributing over 25% of its fintech
revenue. Its fibre business was rebranded as FibreX, aligning with
Nigeria’s 90% broadband penetration target by 2025.
“FibreX and MoMo are central to our strategy of going
beyond traditional telecom services,” said CEO Karl Toriola.
Outlook and Market Competition
MTN Nigeria is now aiming to reclaim its top spot
within the MTN Group, after falling behind South Africa and the
West/Central Africa region in 2024. With renewed revenue guidance and a
stronger market outlook, analysts forecast mid-40% growth in both
service revenue and EBITDA margins for the full year.
However, competition remains stiff as Airtel
and Glo intensify their efforts. MTN’s challenge will be balancing
service improvements with affordability in an economy still grappling with 28.3%
inflation.
The company plans to pursue a public offering
and expand 5G coverage, signaling confidence in its renewed financial
strength and strategic direction.
Comments:
Leave a Reply