MTN Nigeria Communications Plc has strengthened its financial position after eliminating all foreign currency debt, posting a 70.6 percent increase in half-year profit as rising data demand, lower finance costs and a stronger naira combined to drive one of the company’s strongest earnings performances in recent years.
The telecom operator’s return to a net cash position marks a significant turnaround after two years of foreign exchange-induced earnings volatility, highlighting how balance sheet deleveraging and resilient demand for digital services are reshaping profitability across Nigeria’s telecommunications industry.
For the six months ended June 30, 2026, profit after tax rose to N707.5 billion, while service revenue increased 25.9 percent to N3 trillion, exceeding the company’s medium-term growth target and reflecting sustained demand for mobile connectivity and digital services.
The Board declared an interim dividend of N26 per share, underscoring management’s confidence in the company’s cash-generating capacity and financial outlook.
A defining feature of the half-year performance was MTN Nigeria’s complete repayment of its remaining $105 million foreign currency loans, removing a major source of earnings volatility that had weighed heavily on profitability following Nigeria’s exchange rate liberalisation.
The debt repayment, combined with the appreciation of the naira to N1,380 per dollar from N1,530 a year earlier, enabled the company to reverse previous foreign exchange losses and report a net foreign exchange gain of N36.4 billion, compared with a N5.2 billion loss in the corresponding period of 2025.
Lower borrowings also reduced finance costs by 20.4 percent, leaving MTN Nigeria with a net cash position of N116.3 billion, a milestone that analysts say significantly strengthens the company’s financial flexibility ahead of future investments in network expansion and digital infrastructure.
The stronger balance sheet was further recognised by Agusto & Co., which upgraded MTN Nigeria’s long-term issuer rating to Aaa, complementing the AAA rating previously assigned by Global Credit Rating (GCR).
Operationally, the company’s growth continued to be powered by its expanding data business.
Data revenue was up 38.4 percent, supported by a 25.8 percent increase in data traffic, while active data subscribers rose to 55.7 million. Average monthly data consumption increased to 14.8 gigabytes per subscriber, reflecting rising demand for video streaming, digital commerce, remote work and other bandwidth-intensive services.
Smartphone penetration across the network reached 66.4 percent, while continued investments in 5G Fixed Wireless Access (FWA) and Fibre-to-the-Home (FTTH) services strengthened MTN’s position in Nigeria’s rapidly growing broadband market.
The company’s fintech business recorded mixed performance during the period.
While overall fintech revenue declined 7.2 percent following the temporary suspension of its airtime and data credit lending service during the second quarter, core MoMo Payment Service Bank (MoMo PSB) operations remained resilient.
Mobile money revenue increased by approximately 132 percent, with active wallets reaching five million, reinforcing the strategic importance of financial services to MTN’s long-term growth ambitions.
Management confirmed that the airtime credit service has resumed while the planned structural separation of the fintech business continues, subject to regulatory approvals.
The group also maintained strict cost discipline despite persistent inflationary pressures.
Operating expenses increased by 11.3 percent, substantially below revenue growth, enabling earnings before interest, tax, depreciation and amortisation (EBITDA) margin to improve by 5.3 percentage points to 55.9 percent.
Free cash flow rose 73.9 percent to N712.7 billion, while capital expenditure intensity moderated to 20.7 percent, reflecting improved capital allocation and operational efficiency.
Chief Executive Officer Karl Toriola said the results reflected strong commercial execution, resilient customer demand and continued operational discipline despite a challenging macroeconomic environment.
“We delivered a strong first-half performance, with sustained commercial momentum, improved profitability and robust cash generation,” Toriola said.
The company’s strengthened balance sheet, expanding broadband footprint and improving cash generation are expected to provide additional capacity to fund future network investments while sustaining shareholder returns, positioning MTN Nigeria to capitalise on rising digital adoption across Africa’s largest telecom market.
