MTN Nigeria Communications (MTNN) Q3 2025 earnings summary

Executive summary

• Positive retained earnings and shareholders' equity restored, reflecting improved financial health.

• Achieved a strong turnaround with profit after tax of N750.2 billion for the nine months ended 30 September 2025, compared to a loss of N513.9 billion in the prior year period, driven by robust revenue growth and improved cost efficiency.

• Revenue increased by 57.4% year-over-year to N3.73 trillion, reflecting significant growth across all business segments.

• Interim dividend of N5 per share declared, underscoring commitment to shareholder value.

• Strong topline growth, margin improvement, and robust cash flow generation achieved.

Financial highlights

• Service revenue grew by 57.5% year-over-year; EBITDA up 123.0% to N1.9tn.

• Revenue: N3.73 trillion, up 57.4% year-over-year.

• Operating profit rose 203.3% to N1.44 trillion; PBT rose 257.8% to N1.1tn.

• EPS turned positive to 35.77k from -24.51k; PAT improved from -N514.9bn to N1,510.1bn.

• Free cash flow increased 38.5% to N742.6bn; capex (ex-leases) up 248.0% to N757.4bn.

Outlook and guidance

• FY 2025 guidance targets at least low-50% service revenue growth and EBITDA margin, both on track.

• Capex intensity expected to moderate in Q4 to support stronger free cash flow.

• Medium-term (FY26-28) guidance: service revenue growth at least low-20%, EBITDA margin 53-55%.

• Directors have a reasonable expectation of continued operational existence and ability to discharge liabilities, supported by improved profitability, liquidity, and compliance with loan covenants.

• Assumptions include easing inflation below 20% and stable exchange rates (N1,500-1,800/US$).