MTN Nigeria reported a N1 trillion revenue in the first quarter (Q1) a 40.5% year-on-year increase from N752.9 billion in Q1 2024, buoyed by the tariff increment implemented in the middle of February 2025.
According to the Q1 2025 unaudited financial results for the quarter ended March, the company bounced back to profitability in the quarter, posting N133.7 billion profit after tax compared with the N392.7 billion loss it recorded in Q1 2024.
Capital expenditure, excluding leases, surged by 159% to N202.4 billion, reflecting MTN Nigeria’s commitment to enhancing network capacity and service quality. The company also reported a positive free cash flow of N209.9 billion, despite the increased capital spending.
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Commenting on the report, MTN Nigeria CEO Karl Toriola said,
“We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality”.
In Q1 2025, MTN Fintech revenue grew to N36 billion, driven by the strong performance of the airtime lending product (Xtratime) and higher float income in that aspect of the business. Also, the Fintech revenue increased by 57.9%, primarily driven by the strong performance supported by the onboarding of high-value customers. The revamp of its customer acquisition strategy, which commenced in Q3 2024, allowed the to further optimize its incentives and customer engagement framework to strengthen qualitative performance, deepen service penetration, and enhance performance monitoring across sales and distribution channels.
Consequently, MTN observed a decrease in active wallets (down 25.7%), while agents and merchants increased by 47.7% and 23.6%, respectively, compared to December 2024. Float holding grew by 60.3% compared to December 2024, indicating improved quality of its wallet base and sustained underlying demand in the ecosystem. MTN announced that the company is prepared to invest and intensify qualitative field acquisition efforts, particularly in rural and underserved areas, in line with its financial inclusion objectives.
In fintech, MTN disclosed that its renewed focus on rural penetration and refined incentive structures is expected to reverse the decline in active wallets in the coming quarters. The company’s continued focus on launching advanced services and enhancing the quality of its fintech ecosystem will help attract more high-value customers and sustain float growth.
Data revenue grew to N529 billion, overtaking voice revenue contributions to N407 billion. The telco experienced a 46.4% increase in data traffic. In addition, data usage per user grew by 29.5% to 12.8GB, benefiting from price adjustments and ongoing network investments, which contributed to revenue growth. Also, MTN added 3.2 million new subscribers in Q1, bringing its total base to 84.1 million. During the same period, the company’s active data users rose by 2.6 million, increasing the base to 50.3 million and contributing to a 46.4% YoY growth in data traffic.
MTN noted that although macroeconomic uncertainties persist, it was encouraged by the relative stability of the naira during the period and the moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025.
Despite the positive results, challenges remain. Retained earnings are still negative at N474.1 billion, and shareholders’ equity stands at –N324.6 billion. However, the company is optimistic about restoring profitability and achieving a positive net asset position within the current financial year.
Looking ahead
MTN Nigeria plans to continue executing its Ambition 2025 strategy, focusing on network investment, digital and financial inclusion, and restoring shareholder value. The company anticipates continued momentum in service revenue, supported by strong demand for data and proactive customer value management initiatives.
Notably, the company also announced that it is accelerating the rollout of fiber-to-the-home connections to capture significant market growth in high-speed broadband. In parallel, MTN is maintaining focused investment in network capacity and coverage to enhance customer experience and support medium and long-term growth.