MTN Nigeria profit jumps 75% on data boom, cuts debt

MTN Nigeria Communications Plc posted a record pre-tax profit of N1.09 trillion for the first half of 2026, a 75.4% increase that prompted the board to declare an interim dividend of N26 per share. The results, filed on Thursday with the Nigerian Exchange, underscore the telecom giant's ability to extract significant earnings growth from a tough operating environment.

Revenue climbed 25.9% to N2.99 trillion, significantly outpacing operating costs. Profit after tax surged 70.6% to N707.5 billion. Earnings per share rose in lockstep by 70.6% to N33.76, while operating profit expanded 41.9% to N1.27 trillion.

The outperformance was largely driven by data services, which grew 38.3% to N1.70 trillion and now account for 56.8% of total revenue. Voice revenue grew at a slower 15.0% to N897.1 billion, reflecting the company's ongoing transition away from traditional calls. Chief Executive Officer Karl Toriola attributed the strength to resilient demand, noting the naira's improved stability helped moderate cost pressures.

The company added 4.9 million subscribers, bringing its base to 92.2 million. “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.

Cost control and deleveraging amplified the top-line growth, with EBITDA margins expanding by 5.3 percentage points to 55.9%. Interest-bearing borrowings fell 35.1% to N342.6 billion, sharply reducing financing costs. Free cash flow jumped 73.9% to N712.7 billion, easily funding the N620.5 billion in capital expenditure and the interim dividend.

However, the balance sheet is not without structural risks. Lease liabilities remained elevated at N2.44 trillion, continuing to represent the company's largest financing obligation. Cash and equivalents dipped to N458.9 billion from N632.5 billion at year-end due to heavy capital deployment and a current tax liability that grew to N640.4 billion.

Shares closed unchanged at N857.10 on Thursday, suggesting the market had not yet fully priced in the results. The stock has already gained 67.7% year-to-date and has added 19% over the past four weeks. With shareholders set to receive the N26 payout on September 7, shrinking traditional debt and expanding margins position MTN favorably among large-cap equities on the Nigerian Exchange.