July 31, 2026/Cordros Report
MTN Nigeria Communications Plc (MTNN) published its Q2-26 unaudited results after market close yesterday (30 July), reporting EPS of NGN16.60 (+25.2% y/y), bringing H1-26 EPS to NGN33.76 (+70.6% y/y). The strong performance was underpinned by revenue growth (+13.3% y/y), EBITDA margin expansion (+291bps y/y to 56.5%) and a 31.7% y/y decline in net finance costs. In addition, the company declared an interim dividend of NGN26.00/share (3.0% dividend yield), its highest interim dividend since listing.
MTNN’s total revenue increased by 13.3% y/y in Q2-26 (H1-26: +25.9% y/y), supported by growth in both service and non-service revenue. Service revenue – the group’s core operating business – increased by 13.2% y/y in Q2-26 (H1-26: +25.9% y/y), driven primarily by data (+24.9% y/y; 53.4% of revenue), alongside growth in voice (+3.1% y/y; 36.5% of revenue), digital (+31.2% y/y; 1.7% of revenue), and other service revenue (+17.5% y/y; 4.8% of revenue), while Fintech revenue declined by 72.4% y/y (3.6% of revenue) reflecting the temporary suspension of airtime and data credit service. Meanwhile, non-service revenue which largely comprises sales of devices and sim card grew by 26.2% y/y (H1-26: +19.1% y/y). On a q/q basis, total revenue declined modestly by 0.2%.
On key segments, data remained the primary revenue growth driver, supported by continued subscriber additions, rising smartphone penetration and sustained demand for high-speed connectivity. During the period, data subscribers increased by 9.2% y/y to 55.70 million (Q2-26 net adds: +700.00 thousand). smartphone penetration reached 66.4% (Q2-25: 62.6%), while average usage per subscriber increased by 15.2% to 14.8GB (Q2-25: 13.2GB). Elsewhere, voice revenue grew more modestly, supported primarily by subscriber additions (+8.9% y/y to 92.20 million), as the ongoing shift towards data consumption and Over-the-Top (OTT) communication channels continued to moderate voice usage growth.
Total expenses increased slightly by 6.1% y/y (H1-26: +12.1% y/y), reflecting modest growth in both cost of sales (+4.3% y/y) and operating expenses: (+6.9% y/y). The relatively modest increase in operating costs reflects the benefits of a more stable naira alongside ongoing cost optimisation initiatives, which largely offset higher energy-related expenses during the quarter. The combination of strong revenue growth and relatively modest cost growth drove a 291bps y/y expansion in EBITDA margin to 56.5% (H1-26: +542bps y/y to 55.9%).
Below the operating line, net finance costs fell by 31.7% y/y to NGN89.09 billion, reflecting higher finance income (+220.8% y/y to NGN22.72 billion), lower finance costs (-16.7% y/y to NGN114.86 billion) and a 936.6% y/y surge in net FX gain to NGN3.06 billion. In H1-26, net finance costs declined by 35.3% y/y to NGN174.97 billion.
Ultimately, profit before tax increased by 30.4% y/y to NGN545.17 billion, while profit after tax increased by 25.9% y/y to NGN352.04 billion. In H1-26, PBT and PAT increased by 75.9% y/y and 71.2% y/y to NGN1.09 trillion and NGN707.54 billion, respectively.
Management call this afternoon at 3.00 pm Nigerian time. Click here to register.
Comment: MTNN delivered another strong quarter, with double-digit growth across both revenue and earnings reflecting the continued strength of its core operating business. The company continues to benefit from its market-leading position, expanding network coverage and sustained demand for mobile data services. The record interim dividend declaration of NGN26.00/share further underscores the group’s improved cash flow generation and balance sheet strength following a meaningful reduction in foreign currency-related financing pressures. Looking ahead, we expect earnings momentum to remain favourable, supported by continued subscriber growth, resilient demand for data services and a relatively stable macroeconomic environment. Our estimates are under review.
