MTN Nigeria’s Profit Jumps 70.6% in H1 2026 as Stronger Naira Eases Cost Pressure

MTN Nigeria  has reported a strong first-half performance for the period ended 30 June 2026, with profit after tax rising 70.6% year-on-year to N707.5 billion, as the telco benefited from robust data demand, a more stable naira and tighter cost control.

Service revenue grew 25.9% to N3.0 trillion, ahead of the company’s medium-term guidance of at least low-20% growth and 10.4 percentage points above average inflation for the period. Stripping out the temporarily suspended airtime and data credit service, underlying service revenue growth was even stronger at 27.3%, underscoring the resilience of MTN Nigeria’s core business.

EBITDA climbed 39.2% to N1.7 trillion, with margin expanding 5.3 percentage points to 55.9%, as operating expenses grew a modest 11.3% despite ongoing energy cost pressures. Free cash flow rose 73.9% to N712.7 billion.

Subscriber growth continues

The operator added 4.9 million net subscribers in H1, lifting its total base to 92.2 million, an 8.9% increase. Active data users grew 9.3% to 55.7 million, supported by rising smartphone penetration, now at 66.4%, and average data usage per subscriber climbing 15.2% to 14.8GB.

Data revenue was the standout performer, up 38.4%, while voice revenue grew a more modest 12.0%. Enterprise revenue slipped 0.4%, which the company attributed to portfolio optimisation carried out earlier in the year to improve revenue quality.

Fintech reset, mobile money scales up

Fintech revenue declined 7.2% following the temporary suspension of MTN Nigeria’s airtime and data credit service, a key contributor to that segment. However, the underlying mobile money business told a different story, with MoMo revenue up roughly 132% and active wallets rising by 1.3 million to 5.0 million in the half. The company said the structural separation of its fintech business remains on track, pending regulatory approval, following shareholder sign-off.

Currency stability supports the bottom line

A stronger, more stable naira, which closed H1 2026 at N1,380/US$ compared with N1,530/US$ a year earlier, helped moderate cost pressures and contributed to a net foreign exchange gain of N36.4 billion, reversing a N5.2 billion loss in H1 2025. MTN Nigeria also confirmed it no longer carries any outstanding foreign currency loans, having held US$105 million as at December 2025, reducing its exposure to currency swings.

The company closed the period with a net cash position of N116.3 billion, up 11.0% from December 2025, and reported a net debt/EBITDA ratio of negative 0.4x.

Dividend and outlook

The board approved an interim dividend of N26 per share, payable on 7 September 2026 to shareholders on the register as at 20 August 2026.

Commenting on the results, MTN Nigeria CEO Karl Toriola said the company delivered a strong first-half performance built on sustained commercial momentum, improved profitability and disciplined execution. He added that the business remains confident in Nigeria’s long-term structural growth opportunity, citing rising data demand, underpenetrated home broadband and accelerating enterprise digitalisation as key drivers for the second half.

“We delivered a strong first-half performance, with sustained commercial momentum, improved profitability and robust cash generation. This reflects the resilience of demand for our services, disciplined execution across the business and continued focus on efficiency in a challenging operating environment. Looking ahead, our focus remains on sustaining service revenue growth, protecting margins within our guidance framework, improving customer experience, accelerating disciplined home broadband execution and strengthening fintech performance. We remain confident in the long-term structural opportunity in Nigeria and will continue to execute with discipline to create sustainable value for all stakeholders.”

-Karl Toriola, Chief Executive Officer, MTN Nigeria 

Looking ahead, MTN Nigeria said it remains focused on sustaining service revenue growth, protecting margins, and strengthening its fintech and home broadband propositions. Over the medium term, the company continues to target service revenue growth of at least low-20% and an EBITDA margin in the mid-to-high 50% range.