April 30, 2026/Cordros Report
MTN Nigeria Communications Plc (MTNN) published its Q1-26 unaudited results after COB yesterday, reporting a 165.9% y/y increase in EPS to NGN16.95 (Q1-25: NGN6.38). The strong earnings performance was driven by revenue growth of 41.6% y/y, reflecting subscriber growth (+6.5% y/y), strong data demand, and the base effect of tariff adjustments implemented in 2025.
Service revenue increased by 41.8% y/y to NGN1.49 trillion, reflecting notable growth across all key segments – data (+56.2% y/y; 55.6% of revenue), voice (+22.5% y/y; 33.5% of revenue), digital (+12.1% y/y; 2.0% of revenue), fintech (+77.9% y/y; 4.3% of revenue), and other service revenue (+36.7% y/y; 4.7% of revenue). Non-service revenue (device and SIM card sales) rose by 13.0% y/y to NGN9.31 billion.
Data remained the primary growth driver, supported by subscriber expansion, increased usage, and pricing adjustments. Data subscriber base rose by 9.5% y/y to 55.0 million, with net additions of 1.80 million in Q1-26. Data traffic also increased by 22.9% y/y, while average monthly usage per subscriber grew by 12.3% y/y to 14.3GB, reflecting sustained demand for reliable and high speed connectivity.
On voice, the segment’s growth was driven by subscriber growth (+6.5% y/y to 89.5 million | Q1-26 net additions: +2.20 million), stable usage trends, and pricing adjustments. Elsewhere, the growth in digital reflected higher demand for content, while fintech growth was driven by increased adoption, higher transaction volumes, and stronger interest income.
Meanwhile, total expenses increased by 18.5% y/y (cost of sales: +25.0% y/y; operating expenses: +16.1% y/y), significantly below revenue growth, reflecting operating leverage. As a result, EBITDA and EBIT margins expanded by 871bps y/y and 981bps y/y to 55.3% and 42.2%, respectively.
Further down, net finance costs declined by 38.7% y/y to NGN85.88 billion, driven by lower interest expense (-55.1% y/y), higher finance income (+228.4% y/y), and a net FX gain of NGN33.30 billion (vs FX loss of NGN5.53 billion in Q1-25).
Finally, MTNN reported a pre-tax profit of NGN546.42 billion (+169.6% y/y) and a profit after tax of NGN355.50 billion (+165.9%).
Comment: Unsurprisingly, MTNN delivered a strong Q1-26 performance, supported by sustained data demand, subscriber growth, and the base effect of prior tariff adjustments. Looking ahead, we expect earnings momentum to remain firm, underpinned by continued digital adoption and strong data demand. However, we note that the base effect from tariff adjustments will normalise from Q2, which may moderate the pace of revenue growth. Our estimates are under review.
