July 31, 2025/CSL Research
Financial Highlights:
- Revenue +54.5% y/y to N2.38TN
- Direct Network Operating Costs +16.8% y/y to N685.31BN
- OPEX +21.6% y/y to N491.84BN
- EBITDA +119.5% y/y to N1.20TN
- Operating Profit +193.2% y/y to N892.82BN
- Pre-Tax Profit rose to N622.26BN from the N751.29BN Pre-Tax loss recorded in H1 2024
MTN Nigeria delivered a strong performance in the first half of 2025, reporting a 54.5% year-on-year (y/y) increase in Total Revenue to ₦2.38 trillion, up from ₦1.54 trillion in H1 2024. On a quarter-on-quarter (q/q) basis, Revenue rose by 24.7% to ₦1.32 trillion in Q2 2025, compared to ₦1.06 trillion in Q1 2025. The impressive y/y growth was primarily driven by a 54.6% rise in service revenue. According to management, the robust topline growth was fuelled by strong demand for MTN’s services, proactive customer value management, and tariff adjustments—especially in Q2 2025.
Data Revenue surged by 69.2% y/y to ₦1.23 trillion (H1 2024: ₦727.33 billion), remaining the largest contributor to total revenue. Growth was underpinned by an 11.8% y/y increase in data subscribers, rising to 51.0 million from 45.6 million, as well as higher data traffic and price adjustments. The ongoing investment in network capacity to accommodate increased traffic and enhance user experience, as well as higher smartphone penetration also contributed significantly to the performance. Voice Revenue also recorded solid growth, rising by 40.3% y/y to N887.13 billion, driven by a growing subscriber base, price increases, and sustained efforts in customer value management. Fintech Revenue posted a strong 71.8% y/y growth to ₦83.19 billion, while digital Revenue also saw strong momentum, climbing 59.1% y/y to ₦48.44 billion in H1 2025.
Target Price: N471.93/s
Stock Rating: BUY
MTN Nigeria’s Direct Network Operating Costs grew slower than Revenue, rising by 16.8% y/y to N685.31 billion in H1 2025, up from N586.80 billion in H1 2024. Operating Expenses also rose by 21.6% y/y to N491.84 billion (H1 2024: N404.63 billion), reflecting improved operational discipline supported by a relatively stable naira, cost savings from revised tower lease agreements, and continued cost-efficiency
initiatives.
As a result of the company’s continued cost-efficiency initiatives, EBITDA surged by 119.5% y/y to N1.20 trillion (H1 2024: N547.69 billion), with the EBITDA margin expanding by 1,498 basis points to 50.6%. Operating Profit also recorded impressive growth, rising 193.2% y/y to N892.82 billion, compared to N304.55 billion in the prior year.
MTN Nigeria’s Net Finance Cost rose by 57.8% y/y to ₦265.33 billion in H1 2025, compared to ₦168.16 billion in H1 2024. This increase was driven by a 52.8% y/y rise in Finance Costs, largely attributable to higher interest expenses on borrowings and lease liabilities. Meanwhile, Finance Income declined marginally by 3.5% y/y, reflecting lower interest earnings from bank deposits. A key highlight for the period was the
sharp reduction in foreign exchange (FX) losses, due to the relative stability of the Naira. FX losses dropped significantly to ₦5.23 billion, representing a 99.4% decline from the ₦887.68 billion recorded in H1 2024.
The company reported a Pre-Tax Profit of N622.26 billion, a sharp turnaround from the Pre-Tax Loss of N751.29 billion in H1 2024. Tax expenses amounted to N207.41 billion, compared to a Tax Credit of N232.23 billion in the same period last year.
Consequently, Net Profit stood at N414.86 billion in H1 2025, marking a solid recovery from the Net Loss of N519.06 billion recorded in H1 2024. We have a target price of N471.93/s for MTN Nigeria with a BUY recommendation. Current Price; N471.1/s.
To read full report, click on the link below
CSL MTN Nigeria Earnings Quick Take H1 2025 .pdf
