MTN Nigeria Plc has generated N1 trillion in service revenue in the first quarter of 2025.
This marks a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.
MTN Nigeria disclosed this in a corporate filing with the Nigerian Exchange Limited on Tuesday, April 29, 2025.
The company’s profit after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.
Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.
Active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.
EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.
MTN recorded a free cash flow of N209.9 billion and earnings per share stood at N6.38.
MTN Nigeria CEO, Karl Toriola, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.
Toriola said momentum from Q4 2024 had helped put the company on track to restore profitability and achieve a positive net asset position.
He 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.”
He added that the regulatory approval for price adjustments was essential to sustain investment and maintain service quality.
According to him, the approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.
Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.
MTN said: “Capex rose by 142.8%, including the effects of higher right-of-use assets following tower lease renegotiations. Excluding leases, capex increased by 159.0%, resulting in an 8.7pp increase in capex intensity to 19.1%, in line with the target range.
“Following regulatory approval for price adjustments for the industry, we accelerated capex deployment to support the stronger-than-expected growth in data traffic and enhance service quality and user experience. Despite the higher capex, we achieved a positive free cash flow of N209.9 billion, demonstrating disciplined capital allocation and strong cash generation.
“Our funding and liquidity position remains solid, supported by a cash balance of N303.7 billion. Foreign currency exposure remains within manageable limits. We have largely settled the outstanding US$ Letters of Credit (LC) obligations, with only US$1.4 million remaining at the end of the quarter. Consequently, approximately 23% (December 2024: 28%) of the total debt is denominated in foreign currency, and the balance in local currency.
“Our debt metrics are healthy and remain well within all our financial covenants, with a net debt-to-EBITDA ratio of 0.5 times and an interest cover ratio of 9 times as at 31 March 2025. These metrics position us well to meet our operational, financial, and investment obligations while maintaining flexibility to navigate the evolving macroeconomic environment.”
The Star
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