MTN Nigeria Communications (MTNN) Q2 2025 earnings summary

Executive summary

• Service revenue surged 54.6% year-over-year to N2.4 trillion, driven by price adjustments, resilient demand, and disciplined execution.

• EBITDA increased 119.5% to N1.2 trillion, with margin expanding to 50.6% due to cost efficiencies and strong operating leverage.

• PAT reached N414.9 billion, a turnaround from a loss of N519.1 billion in H1 2024, underpinned by strategic execution and improved macroeconomic conditions.

• Accelerated investments aimed at enhancing service quality and capturing growth opportunities, with capex (ex-leases) up 288.4% to N565.7 billion.

• On track to restore positive retained earnings and shareholders' equity by Q3 2025.

Financial highlights

• Service revenue: N2.36 trillion, up 54.6% year-over-year; data revenue up 69.2%, voice up 40.3%, fintech up 71.8%.

• EBITDA: N1.2 trillion, up 119.5% year-over-year; EBITDA margin at 50.6%, up 15.0pp.

• PAT: N414.9 billion, compared to a loss of N519.1 billion in H1 2024; EPS of N19.8 kobo versus negative N24.7 kobo.

• Capex (excluding leases): N565.7 billion, up 288.4%; total capex: N986.1 billion, up 208.2%.

• Free cash flow: N409.8 billion, up 18.0% year-over-year.

Outlook and guidance

• FY 2025 service revenue and EBITDA margin expected to grow at least low-50%; medium-term (FY26-28) at least low-20% for revenue and 53-55% margin.

• Capex intensity to remain in the 'upper teens' for FY 2025, moderating over the medium term.

• On track to restore balance sheet to a positive net asset position by end of Q3 2025.