MTN Nigeria Rebounds to ₦1.1tn Profit, Powered by Data Surge and FX Gains
MTN Nigeria Communications Plc has delivered one of the most striking financial recoveries in the country’s corporate sector, reporting a profit after tax (PAT) of N1.1 trillion for the 2025 financial year, reversing a substantial loss recorded in 2024. This turnaround was propelled by strong data revenue growth, improved foreign exchange (FX) gains, tighter cost control and renewed investor confidence.
Major Financial Turnaround for 2025
After facing a N400.4 billion loss in 2024, largely due to sharp naira depreciation and FX headwinds, MTN Nigeria swung back to profitability with a remarkable N1.11 trillion profit after tax in 2025. This represents a significant year-on-year turnaround and cements MTN’s position as one of Nigeria’s most profitable listed companies.
Why This Matters
MTN’s profit swing of over N1.5 trillion signals both improved operational performance and financial stability.
Restored profitability also enabled the resumption of dividend payments, with a total payout of N20 per share for 2025.
- Data Revenue: The Main Growth Engine :
The core driver of MTN’s strong performance was explosive data revenue growth.
MTN reported an over 74% increase in data revenue year-on-year, reflecting Nigerians’ growing appetite for mobile internet services.
Data now accounts for the single largest component of service revenue, helping offset slower trends in voice services.
This surge aligns with broader industry shifts toward data-centric services, as both MTN and Airtel reported combined data revenues surpassing N3.5 trillion for their latest reporting cycles.
- FX Gains & Macro Tailwinds
One of the most dramatic improvements in MTN’s financials was the shift in foreign exchange results:
In 2024, net FX losses weighed heavily on earnings.
In 2025, MTN posted a net FX gain of N90.3 billion, due to reduced dollar-denominated debt and a more stable naira.
A more stable currency environment, with the naira strengthening relative to 2024, helped ease the FX pressure that had previously eroded profits.
- Operational Performance & Customer Growth :
MTN’s improved performance was not only financial but also operational:
Total subscribers increased to 87.3 million, a 7.9% rise.
Active data users climbed to 53.2 million, up 11.6%.
Data traffic on the network rose about 34%, highlighting stronger customer engagement.
These metrics reflect sustained demand for digital services and the resilience of MTN’s customer base even amid competitive pressures.
Cash Flow, Investments & Future Outlook
MTN also reported a 215.5% jump in free cash flow to N1.2 trillion in 2025, underscoring improved liquidity and capital strength.
Capital expenditure (capex) more than doubled as MTN invested N 1 trillion to expand network coverage, roll out more fibre, and enhance quality signaling long-term confidence in the Nigerian telecoms market.
Management Guidance
While celebrating strong results, MTN’s leadership has maintained its guidance for:
- Continued service revenue growth in the low- 20% range annually.
- EBITDA margin expansion into the mid-to-high 50% range assuming relative macroeconomic stability.
Wider Industry Context
MTN’s rebound mirrors a broader trend of telecom growth in Nigeria:
- Rising internet usage, accelerated by remote work, streaming, and fintech adoption.
- Regulatory approval for market-reflective data pricing, which lifted yield per gigabyte.
The sector overall continues shifting from traditional voice to data-driven revenue models.
What This Means for Investors & the Economy
MTN’s 2025 financial results deliver several positive signals:
- Restored shareholder value with resumed dividends.
- Improved balance sheet strength with positive retained earnings and equity.
- Strong cash generation to fund future growth without relying heavily on debt.
- A bullish indicator of investor confidence in Nigeria’s tech and telecom sectors.
For the Nigerian economy, the rebound underscores the critical role of telecoms in driving digital inclusion, economic activity and investor interest in local capital markets.
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