FRI OCT 31 2025-theGBJournal| MTN Nigeria Communications Plc (MTNN) released its unaudited 9M-25 results after the close of business on Thursday, reporting a standalone EPS of N15.99 (+80.2x y/y) in Q3-25, bringing the 9M-25 EPS to N35.77 (vs. 9M-24 loss per share of N24.51).
The impressive performance was underpinned by strong topline growth (+62.8% y/y) and improved cost efficiency.
Notably, the company declared a surprise interim dividend of N5.00/share, translating to a yield of 1.0%, based on the last closing price of NGN520.10 (30 October).
Service revenue increased by 62.9% y/y in Q3-25 (9M-25: +57.5% y/y), supported by broad-based growth across all business segments – data (+80.2% y/y; 55.5% of revenue), voice (+45.2% y/y; 34.2% of revenue), digital (+15.3% y/y; 1.7% of revenue), fintech (+73.6% y/y; 3.6% of revenue), and other service revenue (+44.0% y/y; 5.0% of revenue).
In addition, non-service revenue (devices and SIM sales) grew by 44.6% y/y (9M-25: +32.1% y/y). On a q/q basis, total revenue advanced 2.4%.
Data remained the primary growth driver, supported by higher data usage, expanding user base, increased traffic, and price adjustments. Precisely, data traffic grew 36.3% y/y, while average monthly usage per user rose by 17.9% y/y to 13.2GB, reflecting sustained demand for digital connectivity.
At the same time, data subscribers increased by 12.8% y/y to 51.10 million (Q3-25 net additions: +100.00 thousand).
Voice revenue growth reflected continued subscriber expansion (+10.9% y/y to 85.4 million, with +700.00 thousand net additions in Q3-25) and pricing adjustments.
Also, the digital segments benefited from increased engagement and targeted content offerings, while fintech revenue was supported by higher active wallets (+3.6% y/y to 2.90 million, with +200.00 thousand net additions in Q3-25), increased customer deposits, and higher interest income.
Meanwhile, EBITDA margin expanded by 15.31ppts y/y to 52.9% in Q3-25 (9M-25: +15.10ppts y/y to 51.4%), as strong revenue growth outpaced expenses.
Specifically, total expenses grew by 22.9% y/y (9M-25: +20.2% y/y), driven by increases in cost of sales (+33.3% y/y) and OPEX (+19.4% y/y). The relatively slower expense growth was aided by naira appreciation, savings from revised tower lease agreements, and ongoing cost optimization initiatives.
Below the operating line, net finance costs declined by 8.9% y/y to N105.59 billion in Q3-25, reflecting a 56.9% y/y drop in interest expense on borrowings and a 324.3% y/y increase in finance income, which offset a 16.8% y/y increase in lease interest.
We also highlight that the company recorded a net FX gain of N60.81 billion (vs net FX loss of N17.25 billion in Q3-24) due to naira appreciation.
For 9M-25, net finance costs rose by 30.6% y/y, driven by a 77.7% y/y increase in lease interest, while the company posted a net FX gain of N55.58 billion (vs. net FX loss of N904.93 billion in 9M-24).
Overall, profit before tax advanced by 12.4x y/y to N504.18 billion in Q3-25 (Q3-24: N37.66 billion), while profit after tax surged by 80.2x y/y to N335.33 billion (Q3-24: N4.13 billion).
”The double-digit increase across all key revenue segments underscored the
strength and diversification of our service offerings” said CEO Karl Toriola.
”This keeps us on track to deliver on our FY 2025 single-year guidance, including service revenue growth and EBITDA margin of at least low-50%.
In addition, capex intensity is expected to moderate to within our ‘high-teens’ target range, supporting stronger free cash flow generation as we conclude the year,” Toriola added.
Meanwhile, MTNN is maintaining a medium-term guidance (from 2026 onwards), with a 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.
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