MTN Nigeria Communications Plc has reported a strong financial performance for the first half of 2026, recording a 70.6 per cent increase in profit after tax to N707.5 billion, driven by sustained growth in data usage, improved operational efficiency, robust cash generation and a more stable foreign exchange environment.
The telecommunications company, in its unaudited financial results for the six months ended June 30, also announced an interim dividend of N26 per ordinary share, subject to applicable withholding tax, following what it described as resilient commercial performance despite continued macroeconomic challenges.
The dividend will be paid on Sept. 7, 2026, to shareholders whose names appear in the company’s register as of Aug. 20.
The company reported that service revenue rose by 25.9 per cent to N3.0 trillion, while total revenue also increased by 25.9 per cent to N2.99 trillion during the review period.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 39.2 per cent to N1.67 trillion, with EBITDA margin improving from 50.6 per cent to 55.9 per cent, reflecting tighter cost management and operating efficiencies.
Basic earnings per share also rose by 70.6 per cent to N33.70, while free cash flow surged by 73.9 per cent to N712.7 billion, highlighting stronger operating cash generation and disciplined capital allocation.
Chief Executive Officer of MTN Nigeria, Karl Toriola, said the company’s first-half performance demonstrated the resilience of customer demand and the effectiveness of its operational strategy.
“We delivered a strong first-half performance, with sustained commercial momentum, improved profitability and robust cash generation.
“This reflects the resilience of demand for our services, disciplined execution across the business and continued focus on efficiency in a challenging operating environment,” Toriola said.
According to him, Nigeria’s improving macroeconomic conditions, particularly the relative stability of the naira, supported business planning and helped ease some operating cost pressures.
The naira closed the first half of 2026 at N1,380 to the U.S. dollar, compared with N1,530 during the corresponding period in 2025.
On customer growth, MTN Nigeria added 4.9 million new subscribers during the first six months of the year, increasing its customer base by 8.9 per cent to 92.2 million.
Active data users also rose by 9.3 per cent to 55.7 million, reflecting continued smartphone adoption and growing demand for internet services.
The company said data revenue remained its strongest growth driver, rising by 38.4 per cent to N1.70 trillion.
Network data traffic increased by 25.8 per cent, while average monthly data usage per subscriber rose by 15.2 per cent to 14.8 gigabytes, supported by smartphone penetration of 66.4 per cent.
Voice revenue also remained resilient, increasing by 12 per cent to N993.5 billion, despite changing customer communication habits and increased adoption of internet-based messaging platforms.
Digital services revenue grew by 20.9 per cent to N58.5 billion, while other service revenue increased by 26.1 per cent.
However, fintech revenue declined by 7.2 per cent to N77.2 billion, largely due to the temporary suspension of the company’s airtime and data credit service during the second quarter.
Despite this, MTN reported that its underlying mobile money business remained strong, with MoMo wallets increasing by 88.8 per cent to five million, while mobile money revenue grew by approximately 132 per cent.
The company said it had resumed airtime and data credit services and expects stronger fintech performance in the second half of the year.
To support future growth, MTN invested N620.5 billion in capital expenditure, excluding leases, representing a 1.2 per cent increase over the previous year.
The investments were directed toward expanding network capacity, extending coverage and accelerating home broadband deployment through fibre-to-the-home and 5G fixed wireless access technologies.
Toriola said the operator remained committed to strengthening customer experience while maintaining disciplined capital allocation.
He noted that the company ended the period with a positive net cash position of N116.3 billion, having completely eliminated its outstanding foreign currency loans, thereby reducing exposure to exchange rate volatility.
The CEO also disclosed that retained earnings nearly doubled to N793.1 billion, while shareholders’ equity rose by 69.6 per cent to N930.6 billion, despite payment of a N314.6 billion final dividend in May.
Beyond financial performance, Toriola said MTN invested N1.4 billion through the MTN Foundation in programmes promoting digital inclusion, youth empowerment and national development.
He added that the company contributed N622.6 billion in taxes and levies to government during the period, underscoring its role in supporting economic growth.
He said the company’s financial resilience had also been recognised through Agusto & Co.’s upgrade of MTN Nigeria’s long-term credit rating to Aaa, while GCR maintained its AAA rating with a stable outlook.
Looking ahead, Toriola expressed confidence in Nigeria’s long-term growth prospects, citing increasing data demand, expanding smartphone adoption, growing broadband opportunities and the continued evolution of digital financial services.
He said MTN would continue investing in network expansion, digital platforms and customer experience while focusing on sustaining service revenue growth of at least the low-20 per cent range and maintaining EBITDA margins in the mid-to-high-50 per cent band.
The company also reaffirmed its commitment to strengthening its fintech business through improved customer experience, deeper rural penetration and the ongoing structural separation of the unit, subject to regulatory approvals.
According to Toriola, the strategy is expected to enhance balance sheet flexibility, improve funding efficiency and position the fintech business for long-term growth.
