MTN Nigeria’s Q1 Profit Jumps 166% as 2.3 Million Subscribers Join Network

MTN Nigeria simulated ₦244.12 ▲0.33% Communications Plc has reported a surge in profitability for the first quarter ended March 31, 2026, driven by subscriber growth and an expansion in data usage.

According to the unaudited financial results released on Wednesday, the telecommunications giant saw its profit after tax skyrocket to N355.5 billion from N133.7 billion in the same period in 2025.

Subscriber and data surge

The company’s commercial momentum remained strong as it added 2.3 million revenue-generating subscribers during the quarter, bringing its total subscriber base to 89.5 million — a 6.5% increase.

The data segment was a primary catalyst for growth. Active data users grew by 9.5% to 55.0 million, while data traffic surged by 22.9%. This was supported by a 5.5 percentage point rise in smartphone penetration, which now stands at 66.2%. Consequently, data revenue jumped by 56.2%, making it the largest contributor to the company’s N1.5 trillion service revenue.

Karl Toriola, CEO of MTN Nigeria, attributed the performance to the company’s resilient business model despite a complex operating environment marked by geopolitical tensions and energy price volatility.

“The first quarter of 2026 underscores the strength of our execution,” he said. “While elevated energy prices and renewed inflationary pressures persisted, these were partly mitigated by a relatively stronger naira, which closed at N1,387/US$ compared to N1,436/US$ in December 2025.”

He further noted that the company successfully repaid all outstanding foreign currency loans (which stood at $105 million in December 2025), significantly reducing its exposure to foreign exchange sensitivity.

Network investment and fintech expansion

To support the growing demand, MTN Nigeria accelerated its network investment, with capital expenditure (excluding leases) rising by 92.8% to N390.3 billion.

The company also highlighted progress in the structural separation of its fintech business. A proposed transaction would see MTN Group Fintech acquire a 60% interest in the unit, accompanied by a N152.1 billion capital injection. Despite the temporary suspension of the “Xtratime” airtime credit service due to new regulatory frameworks, fintech revenue grew by 77.9%, fueled by higher deposit balances and increased adoption of advanced services.

Outlook
Looking ahead, MTN Nigeria remains optimistic about the structural demand for its services. The company maintained its medium-term guidance for service revenue growth in the “low 20%” range and expects its EBITDA margin to stay within the mid-to-high 50% range.

“We will continue to prioritise targeted network investment to support growth and further enhance the quality of experience,” Toriola concluded, “ensuring we are well-positioned to capture emerging growth opportunities.”