February 27, 2026/Cordros Report

MTN Nigeria Communications Plc (MTNN) published 2025FY audited financials yesterday (26 February) after close of business, reporting an EPS of NGN53.07 vs a loss per share of NGN19.05 in 2024FY (Q4-25: +216.7% y/y to NGN17.29). The sharp earnings recovery was underpinned by revenue growth of 54.9% y/y, reflecting tariff adjustments, subscriber growth, and sustained data demand, alongside a material reversal in foreign exchange position to a net gain of NGN90.27 billion (2024FY: net FX loss of NGN925.36 billion). The company announced a final dividend of NGN15.00/share implying a dividend yield of 2.0% based on the last closing price of NGN760.00 (26 February). This brings the total 2025FY DPS to NGN20.00.

Service revenue increased by 55.1% y/y in 2025FY (Q4-25: +49.3% y/y), supported by broad based growth across key segments – data (+74.5% y/y; 53.8% of revenue), voice (+42.1% y/y; 35.8%), digital (+36.0% y/y; 1.9%), and fintech (+79.7% y/y; 3.7%) – while other service revenue declined marginally (-3.6% y/y) reflecting weaker contributions from enterprise-led lines, particularly cloud, infrastructure and ICT services. Meanwhile, non service revenue (devices and SIMs) increased by 29.5% y/y.

Data remained the primary growth driver, supported by subscriber expansion, increased usage and tariff adjustments. Precisely, data subscribers grew by 11.6% y/y to 53.20 million (net adds: 5.50 million), while data traffic increased by 34.0% y/y, with average monthly usage rising by 20.0% y/y to 13.10GB. Traffic was supported by improved smartphone penetration (+790bps y/y to 66.1%) and network expansion (4G coverage expanded by 210bps y/y to 84.6%). The home broadband segment also expanded, adding 1.00 million subscribers to reach 4.20 million.

Voice revenue growth was driven by subscriber expansion (+7.9% y/y to 87.30 million; net adds of 6.40 million) and tariff adjustments. Within value added services, digital revenue benefited from mobile advertising and content partnerships, while fintech growth reflected higher active mobile money wallets (+30.8% y/y to 3.70 million; net adds: 900.00 thousand), increased deposits, and stronger interest income.
 
Elsewhere, total expenses increased by 20.2% y/y (cost of sales: +30.3% y/y; operating expenses: +16.7% y/y), significantly below revenue growth, reflecting efficiency gains and structural savings from the IHS contract renegotiation, which delivered combined savings of NGN288.70 billion during the period. As a result, EBITDA margin expanded by 13.63ppts to 52.7%. In Q4-25, EBITDA margin expanded by 10.22ppts y/y to 56.1%.

Below the operating line, net finance costs rose by 17.5% y/y to NGN473.75 billion, primarily due to higher lease related interest expenses (+56.7% y/y) following extended tower lease arrangements. However, the company recorded a net FX gain of NGN90.27 billion, compared to a net FX loss of NGN925.36 billion in 2024FY, supported by the settlement of outstanding letters of credit, reduced foreign currency exposure (USD105.00 million vs USD146.00 million in 2024FY), and relative FX stability. In Q4-25, net finance costs declined by 13.7% y/y to NGN102.83 billion, while net FX gain printed NGN24.69 billion (vs. net FX loss of NGN20.43 billion in Q4-24).

Finally, MTNN reported a profit before tax (PBT) of NGN1.70 trillion (vs a pre-tax loss of NGN550.33 billion in 2024FY) and a profit after tax (PAT) of NGN1.11 trillion (vs a loss after tax of NGN400.44 billion). In Q4-25, PBT and PAT increased by 248.8% y/y and 216.8% y/y to NGN569.59 billion and NGN362.66 billion, respectively.

Management call this afternoon at 3.00 pm Nigerian time. Click here to register.

Comment: MTNN delivered a strong 2025FY recovery, with revenue up 54.9% y/y (Cordros estimate: +56.4% y/y) and EBITDA margin expanding to 52.7% (Cordros estimate: 51.6%), reflecting the combined impact of tariff adjustments, sustained data demand, subscriber expansion, and operating leverage. EPS printed at NGN53.07 (Cordros estimate: NGN53.31), reflecting a strong operational recovery, but importantly amplified by a substantial FX turnaround, with the company reporting a net FX gain of NGN90.27 billion versus a net FX loss of NGN925.36 billion in 2024FY. The final dividend outcome (NGN15.00/share | Cordros estimate: NGN10.50/share) also exceeded expectations, signalling improved financial stability and capital allocation confidence. In 2026, the company is poised to benefit from the full year impact of tariff adjustments and continued data demand. However, growth rates are expected to normalise from the elevated 2025 base. Our estimates are under review.