By Bamidele Famoofo
WorldStage– Investors in the equities market are reacting positively to the first quarter results of Nigeria’s biggest telco, MTNN, as it announced its biggest quarterly financial performance on record.
The shares traded at 890 per share on Thursday, up from a previous close of ₦870, as buyers step in to price -in the earnings beat.
MTN Nigeria Communications Plc, Nigeria’s most capitalised telco on the Stock Exchange, delivered a revenue growth of 41.62 percent year-on-year to ₦1.498 trillion from ₦1.058 trillion, driven by broad-based growth across all revenue streams.
Data remained the single largest income line, surging 56.16 percent to ₦826.1 billion, reflecting the continued deepening of smartphone penetration, rising broadband consumption, and the full annualisation of the 50 percent tariff adjustment implemented in February 2025. Voice revenue climbed 27.63 percent to ₦450.7 billion, while SMS revenue rose 40.38 percent to ₦54.6 billion. Fintech (Value Added Services) delivered the most impressive growth among all segments, jumping 78.77 percent to ₦64.1 billion.
The profitability picture was even more striking.
Profit from operating activities surged 84.50 percent to ₦632.3 billion from ₦342.7 billion, reflecting not just revenue strength but meaningful operating leverage as total revenue grew 41.62 percent while total operating expenses rose 45.05 percent to
₦548.1 billion, a significant portion of which was driven by a 173.48 percent jump in employee expenses to ₦65.8 billion and an 86.96% rise in other operating expenses to ₦103.4 billion. However, the income statement was substantially boosted below the operating line by a dramatic swing in
foreign exchange as the company recorded a net FX gain of ₦33.3 billion compared to a loss of ₦5.5 billion in Q1 2025. Finance income also surged 228.44% to ₦24.1 billion, while finance costs were virtually flat at ₦143.3 billion versus ₦141.9 billion in the prior year, resulting in net finance
costs narrowing sharply by 38.68 percent to ₦85.9 billion. Profit before tax consequently leapt 169.64 percent
to ₦546.4 billion from ₦202.6 billion in Q1 2025. After income tax expense of ₦190.9 billion, profit after tax grew 165.93 percent to ₦355.5 billion from ₦133.7 billion. Earnings per share climbed to 16.95 kobo from 6.37 kobo, a 166.09 percent year-on-year increase.
Looking at key metrics, performance was outstanding across the board. EBITDA margin expanded by 8.7 percentage points to 55.3 percent from 46.6 percent in Q1 2025, comfortably exceeding the company’s own medium-term guidance range of 53–55 percent in just the first quarter of 2026. Operating margin
widened sharply to 42.2 percent from 32.4 percent, and net profit margin nearly doubled to 23.7 percent from
12.6 percent. Return on equity stood at a strong 39.3 percent, while return on assets came in at 6.1 percent.
The debt-to-equity ratio improved dramatically to 41.8 percent from 96.2 percent in Q1 2025, reflecting the
significant strengthening of the equity base as shareholders’ equity surged 64.74 percent to ₦903.9 billion from ₦548.7 billion in December 2025. Total assets expanded to 8.25 percent to ₦5.849 trillion, driven by growth in property, plant and equipment to ₦2.114 trillion and right-of-use assets of ₦1.740 trillion. Borrowings declined by 28.42 percent to ₦377.7 billion, pointing to active deleveraging and a materially cleaner balance sheet.
