Key Highlights
…Total subscribers increased by 6.7% to 84.7 million
…Active data users increased by 11.8% to 51.0 million
…Service revenue increased by 54.6% to N2.4 trillion
…EBITDA increased by 119.5% to N1.2 trillion
…EBITDA margin increased by 15.0pp to 50.6%
…PAT of N414.9 billion (H1 2024: negative N519.1 billion)
…Earnings per share of N19.8 kobo (H1 2024: negative N24.7 kobo)
THUR JULY 31 2025-theGBJournal| MTN Nigeria Communications Plc (MTNN) second-quarter core earnings trounced analysts’ expectations on Wednesday as 3.8 million more customers joined the telecoms giant’s network in H1 2025.
”In light of the strong momentum in our business, we have upgraded our FY 2025 and medium-term guidance and we remain firmly on track to restore our balance sheet to a positive net asset position by the end of Q3,” says elated CEO, Karl Toriola.
”And now target service revenue growth of ‘at least low-50%’ and EBITDA margin of ‘at least low-50%’.”
MTNN saw Earnings per share (EPS) of N13.41 in the quarter under review, a strong recovery from the loss per share of N6.08 in Q2-24.
The performance was underpinned by a 68.1% y/y increase in revenue and a 21.80 ppts expansion in EBITDA margin to 53.7%.
Consequently, H1-25 EPS printed N19.8 (vs. loss per share of N24.71 in H1-24).
Service revenue advanced by 68.1% y/y in Q2-25 (H1-25: +54.6% y/y), reflecting double-digit growth across all segments – data (+85.6% y/y; 53.4% of revenue), voice (+53.0% y/y; 36.5% of revenue), digital (+32.5% y/y; 1.7% of revenue), fintech (+84.2% y/y; 3.6% of revenue), and other service revenue (+31.7% y/y; 4.8% of revenue).
Additionally, non-service revenue also grew by 40.6% y/y (H1-25: +43.1% y/y), buoyed by device and SIM sales. On a q/q basis, total revenue rose by 24.9%.
Data revenue remained the standout performer, driven by subscriber growth, increased data traffic, and price adjustments. Specifically, data subscribers rose by 11.8% y/y to 51.0 million (Q2-25 net additions: +0.70 million).
Whereas data traffic expanded by 41.2% y/y, and average monthly usage per user rose by 26.3% y/y to 13.2GB. These trends were supported by rising smartphone penetration (+430bps y/y to 62.6%) and expanding 4G coverage (82.4%).
Elsewhere, voice revenue growth reflected increased subscriber minutes and improved customer value management. Despite SIM registration constraints from regulatory directives, MTNN recorded 6.7% y/y growth in voice subscribers to 84.70 million (Q2-25 net additions: +0.60 million).
Meanwhile, digital and fintech segments benefited from higher demand for rich media and strong uptake of MTN Xtratime and other value-added services.
Furthermore, total expenses increased modestly by 14.3% y/y (H1-25: +18.7% y/y), supported by a relatively stable currency, cost optimization initiatives, and N114.00 billion in savings from tower lease renegotiations.
As a result, EBITDA margin expanded significantly by 21.80 ppts y/y to 53.7% in Q2-25, marking the company’s highest quarterly EBITDA margin since Q1-22 (54.6%).
For H1-25, EBITDA margin expanded by 14.94 ppts y/y to 50.5%.
Below the operating line, net finance costs fell by 57.4% y/y to N130.49 billion, aided by N295.00 million in FX gains (vs. N231.32 billion loss in Q2-24).
However, we note that interest income declined by 26.2% y/y, while interest expense more than doubled (+127.6% y/y) to N133.26 billion primarily driven by a 97.2% y/y increase in interest expenses on leases and a 129.3% y/y rise in interest expenses on borrowings.
In H1-25, net finance costs declined by 74.4% y/y, primarily due to 99.2% decrease in net FX losses to N5.23 billion.
Ultimately, pre-tax profit rebounded to N419.61 billion in Q2-25 (vs. a loss of N175.60 billion in Q2-24), while profit after tax came in at N281.17 billion (vs. a loss of N126.36 billion).
Toriola expects to sustain strong operational and financial growth momentum in the second half of 2025, supported by a more stable macroeconomic and regulatory environment, continued demand for our services, the benefit of recent price adjustments and network investments.
”In terms of our medium-term guidance (from 2026 onwards), we target average service revenue growth of ‘at least low-20%’ and EBITDA margin in the 53-55% range based on current economic assumptions and no price adjustments,” Toriola said.
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