MTN Nigeria Swings Back to Profitability with ₦414B in Half‑Year Earnings

MTN Nigeria  has bounced back. After a turbulent 2024 marked by currency shocks and balance sheet strain, the telecoms giant is back in the black—reporting a profit after tax of ₦414.9 billion for the first half of 2025. This sharp turnaround from last year’s loss of over ₦500 billion is more than a recovery story. It is a statement of intent.

At the heart of the performance is a surge in service revenue, up 54.6% year-on-year to ₦2.4 trillion. Data services led the charge, contributing more than half of that, powered by strong user growth and increased smartphone penetration. With 3.7 million new smartphones added to its network and data traffic up by 41%, MTN is clearly feeding Nigeria’s hunger for high-speed connectivity.

Voice revenue also held up—rising 40.3%—despite new SIM registration rules that briefly slowed subscriber growth. Still, MTN added 3.8 million mobile subscribers, bringing its total to 84.7 million, while active data users climbed to 51 million.

The results also show just how much MTN is betting on Nigeria’s digital future. Capital expenditure more than tripled (excluding leases), reaching ₦565.7 billion, with a large slice going into expanding network capacity, rolling out fibre-to-the-home, and launching the first phase of the Dabengwa Tier III Data Centre—an ambitious project set to become West Africa’s largest.

That infrastructure will power more than just data. MTN’s enterprise and fintech arms are gaining momentum. Fintech revenue jumped nearly 72%, thanks in part to its airtime lending product, Xtratime, and rising deposits in MoMo wallets. Though the total number of active wallets is down year-on-year, the second quarter showed a rebound, with over half a million new wallets opened.

The business also made gains in digital content and enterprise cloud services. MTN Cloud, tied to the new data centre, is being positioned as the launchpad for Africa’s next wave of tech startups. The company’s startup accelerator has already committed ₦100 million in grants and support—backing bold innovators looking to scale.

Importantly, MTN’s cost controls are finally paying off. A renegotiated tower lease deal, a more stable naira, and tighter expense management helped drive EBITDA up by 119.5% to ₦1.2 trillion, with a margin of 50.6%. The company also generated ₦409.8 billion in free cash flow, despite heavy network investments.

MTN Nigeria’s balance sheet, once in negative territory, is healing fast. Retained earnings improved significantly, and the company expects to return to a positive net asset position by the end of Q3. Ratings agency GCR has already upgraded its outlook to ‘Stable’, keeping MTN’s AAA rating intact.

Looking ahead, the telco is not backing off. It has raised its 2025 guidance, now expecting service revenue and EBITDA margin to grow by at least 50%. Medium-term, it is aiming for 20% annual service revenue growth and an EBITDA margin of up to 55%.

“We are excited by the progress made in the first half of 2025, reflecting the successful execution of the strategic priorities we previously communicated to the market. Building on the momentum from the first quarter, we delivered strong growth in service revenue for the period under review. This was driven by robust demand for our services, proactive customer value management and price adjustments, mainly in Q2. In reinforcing this growth, we accelerated investment in our network to enhance capacity, coverage and quality of experience… In light of the strong momentum in our business, we have upgraded our FY 2025 and medium-term guidance and we remain firmly on track to restore our balance sheet to a positive net asset position by the end of Q3.”

– Karl Toriola, CEO, MTN Nigeria.

MTN Nigeria’s results position it not only as a resilient operator but also as a central actor in Nigeria’s digital and financial inclusion agenda. As it continues investing in connectivity, innovation, and ecosystem partnerships, the company appears well-placed to sustain its growth trajectory and deliver long-term value to stakeholders.