MTN Nigeria has delivered its strongest financial rebound in years, returning to profitability in 2025 after a historic foreign exchange-driven loss in 2024, and proposing a total dividend of N20 per share for the year.
For the full year ended December 31, 2025, the telecom operator posted a profit after tax of N1.11 trillion, reversing a N400.4 billion loss recorded in 2024. Earnings per share rose to N53.07 from negative N19.05 a year earlier.
The performance was underpinned by robust service revenue growth, expanding margins, and a dramatic turnaround in foreign exchange dynamics. Total revenue climbed 54.9% year-on-year to N5.20 trillion, while service revenue — the company’s core top line metric — rose 55.1% to N5.17 trillion.
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In the fourth quarter alone, pre-tax profit surged 248.8% to N569.6 billion from N163.3 billion in Q4 2024, reflecting sustained revenue momentum and improved cost efficiency.
Following the results, the board proposed a final dividend of N15 per share, bringing total dividends for the 2025 financial year to N20 per share. The dividend will be paid electronically to shareholders on the register on April 8, 2026, who have completed e-dividend registration.
Chief Executive Officer Karl Toriola described 2025 as a “significant turning point.”
“We closed the year with positive retained earnings of N400.4 billion (December 2024: negative N607.5 billion) and shareholders’ equity of N548.7 billion (December 2024: negative N458.0 billion),” he said, noting that improved macroeconomic conditions — particularly a more stable foreign exchange market and moderated inflation — helped ease margin pressure.
The company maintained its medium-term service revenue growth target of at least the low 20% range and revised EBITDA margin guidance upward from 53–55% to the mid-to-high 50% range, signaling confidence in operational leverage.
Data and fintech power revenue surge
MTN Nigeria’s recovery was driven primarily by data and fintech growth, reflecting the structural shift in consumer usage patterns.
Data revenue rose 74.5% to N2.78 trillion, becoming the largest contributor to service revenue. The growth was supported by a 34% increase in data traffic, an 11.6% rise in active data users to 53.2 million, and smartphone penetration climbing to 66.1%.
Voice revenue remained resilient, increasing 42.1% to N1.85 trillion, aided by subscriber growth and customer value management initiatives. Mobile subscribers rose 7.9% to 87.3 million.
Fintech revenue expanded 79.7% to N191.3 billion, driven by higher interest income and the expansion of advanced services. Active wallets increased to 3.7 million, reinforcing management’s push to diversify revenue beyond traditional connectivity.
Crucially, cost growth lagged revenue growth. Cost of sales increased 30.3%, well below the 55% rise in service revenue, while operating expenses rose 16.7%, reflecting efficiency gains and savings from tower lease renegotiations. The resulting operating leverage drove EBITDA up 108.9% to N2.74 trillion.
Foreign exchange, which had severely distorted 2024 earnings, became a tailwind. The company reported a net FX gain of N90.3 billion compared to a N925.4 billion loss in 2024, following the settlement of outstanding letters of credit and reduced dollar exposure.
Capital expenditure, excluding leases, rose 126.2% to N1.00 trillion, reflecting a significant investment in network capacity and quality. Even with this aggressive build-out, free cash flow jumped 215.5% to N1.2 trillion, underscoring improved cash generation and working capital discipline.
Balance sheet repair and market re-rating
The balance sheet shows a marked turnaround. Total assets increased 28.7% to N5.40 trillion, while shareholders’ funds rose 219.8% year-on-year to N548.7 billion, reversing the negative equity position recorded in 2024.
Retained earnings returned to positive territory at N400.4 billion, a dramatic shift from the N607.5 billion deficit a year earlier. The restoration of equity strengthens solvency metrics and supports dividend resumption.
Investors have responded decisively. As of the close of trading yesterday, the shares stood at N760, making MTN Nigeria the most capitalized company on the Nigerian Exchange with an approximate market value of N16 trillion.
The stock has gained 33% in February alone, pushing year-to-date returns to 49%, following a 155.5% rally in 2025. The re-rating reflects renewed confidence in earnings stability, reduced FX risk, and sustained growth in high-margin data services.
The 2025 results signal more than a cyclical rebound. They point to a structural strengthening of MTN Nigeria’s operating model — one increasingly anchored on data monetization, fintech expansion, and disciplined cost management — at a time when macroeconomic headwinds have begun to ease.