November 2, 2026/Cordros Report
MTN Nigeria Communications Plc (MTNN) published its Q3-26 unaudited results after close of business on Friday (30 October), reporting standalone EPS of NGN21.84 (+36.5% y/y), bringing 9M-26 EPS to NGN55.60 (+55.3% y/y). Earnings uplift was driven by revenue growth (+19.7% y/y), EBITDA margin expansion (+578bps y/y to 58.7%), and a steep 51.1% y/y decline in net finance costs.
MTNN’s total revenue increased by 19.7% y/y in Q3-26 (9M-26: +23.6% y/y), supported by growth in both service and non-service revenue. Service revenue, the group’s core operating business, increased by 19.7% y/y in Q3-26 (9M-26: +23.7% y/y), driven primarily by data (+31.4% y/y; 60.6% of revenue), with additional support from voice (+9.3% y/y; 31.1% of revenue), digital (+30.6% y/y; 1.8% of revenue) and other service revenue (+13.3% y/y; 4.7% of revenue). Meanwhile, Fintech revenue declined by 58.1% y/y (1.3% of revenue), reflecting the earlier suspension of the airtime and data credit service in Q2-26, which has since resumed with multiple partners and is recovering gradually (revenue +78.5% q/q) with full restoration targeted by the end of November. Separately, non-service revenue, which largely comprises sales of devices and SIM cards, grew by 22.1% y/y (9M-26: +20.1% y/y). On a q/q basis, total revenue increased by 8.4%.
Across key segments, data maintained its position as the primary revenue growth driver, supported by continued subscriber additions, rising smartphone penetration, and higher usage. During the period, active data users increased by 12.0% y/y to 57.20 million (Q3-26 net adds: +1.5 million). Smartphone penetration reached 66.0% (+90bps y/y), while average monthly usage per active data user increased by 16.2% y/y to 15.30GB in 9M-26 (Q3-26: 17.20GB). Home broadband also continued to expand, with FTTH now carrying approximately 13.0% of total data traffic. Elsewhere, voice revenue grew more modestly, supported primarily by subscriber additions (+10.9% y/y to 94.7 million), as the ongoing shift towards data consumption continued to moderate voice usage.
On cost, total expenses increased by 5.0% y/y (9M-26: +9.6% y/y), reflecting growth in cost of sales (+9.8% y/y) and operating expenses (+3.2% y/y). The modest increase in operating costs reflects the benefits of a stronger naira, VAT input claims, and ongoing cost optimisation initiatives, which offset higher diesel-linked tower costs during the quarter. The combination of strong revenue growth and relatively modest cost growth drove a 578bps y/y expansion in EBITDA margin to 58.7% (9M-26: +548bps y/y to 56.9%).
Below the operating line, net finance costs fell by 51.1% y/y to NGN21.89 billion, reflecting higher finance income (+89.9% y/y to NGN35.78 billion) and lower finance costs (-18.5% y/y to NGN101.45 billion), partly offset by a 28.0% y/y decline in net FX gain to NGN43.78 billion. In 9M-26, net finance costs declined by 37.6% y/y to NGN196.86 billion.
Profit before tax (PBT) increased by 39.6% y/y to NGN704.06 billion, while profit after tax (PAT) increased by 36.5% y/y to NGN457.63 billion, despite a 151bps y/y increase in effective tax rate to 35.0% (Q3-25: 33.5%). In 9M-26, PBT and PAT increased by 59.4% y/y and 55.3% y/y to NGN1.80 trillion and NGN1.17 trillion, respectively.
Management call on Monday today (2 November) by 3.00 pm Nigerian time. Click here to register.
Comment: MTNN delivered a strong Q3-26 results, with earnings growth driven mainly by operations as revenue growth and a wider EBITDA margin of 58.7% lifted operating earnings. Growth was led by data, supported by higher usage and home broadband, while reduced borrowings and a stronger naira eased the pressure from financing costs. Looking ahead, we expect the company to close the year strongly, with festive season demand supporting usage in Q4-26. We maintain a positive view on MTNN’s earnings outlook. Our estimates are under review