MTN Nigeria Communications (MTNN) Q1 2025 earnings summary

Executive summary

• Achieved strong commercial momentum with broad-based revenue growth across core segments, driven by data and fintech.

• Total subscribers grew 8.2% year-over-year to 84.1 million, with 3.2 million added in Q1 2025.

• Operating environment improved, with inflation averaging 24% and naira depreciation stabilizing.

• Regulatory changes included approval for price adjustments and new SIM registration restrictions.

• Profit after tax reached N133.7 billion, a turnaround from a loss of N392.7 billion in Q1 2024.

Financial highlights

• Service revenue rose 40.5% year-over-year to N1.05 trillion; data revenue up 51.5% to N529.4bn; fintech revenue up 57.9% to N36.1bn.

• EBITDA increased 65.9% to N492.7bn; EBITDA margin improved to 46.6% from 39.4% year-over-year.

• Free cash flow was N209.9 billion, down 54.8% year-over-year due to higher capex and interest payments.

• Capex (excluding leases) increased 159% to N202.4bn; capex intensity rose to 19.1%.

• Net foreign exchange losses declined 99.2% to N5.5 billion, reflecting naira stability.

Outlook and guidance

• Targeting at least mid-40% service revenue growth and EBITDA margin for FY 2025; capex intensity expected in the upper teens.

• Medium-term guidance: service revenue growth of at least 20% and EBITDA margin recovery to at least 50%.

• Aims to restore positive net asset position and accelerate earnings recovery.

• Near-term risks include exchange rate volatility, price elasticity from new tariffs, and global geopolitical tensions.

• Focus remains on network investment, digital and financial inclusion, and restoring shareholder value.