Firms Reaffirms Long-term Growth Outlook Amid Earnings Setback

Legend Internet Plc has reaffirmed its long-term growth outlook despite reporting weaker earnings in its unaudited six-month results ended January 2026, assuring investors that ongoing investments in infrastructure and technology will support future profitability and sustainable shareholder value.

The broadband and digital services provider recorded a loss of N99.34 million during the review period, compared with a profit in the corresponding period of the previous year. Management, however, maintained that the earnings setback reflects the cost of executing an aggressive expansion strategy rather than any deterioration in the company’s core business fundamentals.

Chief Executive Officer of Legend Internet, Aisha Abdulaziz, said the company remains focused on building a stronger platform for future growth through investments in fibre infrastructure, technology and operational capacity.

“We are building for the future, and while short-term earnings may reflect the weight of our expansion strategy, the underlying fundamentals of the business remain strong. Our investments in fibre infrastructure, technology, and operational capacity are positioning Legend Internet for improved performance, stronger cash generation, and sustainable shareholder value in the periods ahead,” Abdulaziz said.

According to industry analysts, the decline in earnings was largely driven by increased expansion-related spending, higher administrative expenses and one-off adjustments, rather than weakness in the company’s operational performance.

Revenue for the six-month period stood at N220.55 million, supported by contributions from Legend Fiber, wholesale bandwidth services, customer premises equipment (CPE) sales and Legend Pay operations.

Although revenue moderated compared with the corresponding period of the previous year, the company continued to strengthen its infrastructure footprint through additional investments in fibre network assets and service delivery capabilities.

The company’s commitment to long-term growth was reflected in its capital expenditure programme during the period. Property, plant and equipment increased to N3.25 billion from N3.20 billion in July 2025, following an additional N50.49 million investment in network infrastructure expansion.

Management said the investments are expected to support subscriber growth, improve service quality and enhance the company’s competitive position in Nigeria’s rapidly expanding broadband market.

Despite the earnings pressure, Legend Internet recorded a significant improvement in liquidity. Cash and cash equivalents rose to N165.5 million from a negative position of N28.3 million in the previous period, providing the company with greater financial flexibility to support operations and future growth initiatives.

Shareholders’ funds remained strong at N2.55 billion as of January 2026, underscoring the resilience of the company’s balance sheet. Total equity has grown steadily over recent years, rising from N2.58 billion in 2023 to N2.84 billion in July 2025 before moderating following dividend payments, prior-period adjustments and the current earnings decline.

Market observers noted that Legend Internet’s growing fibre infrastructure positions the company to benefit from increasing demand for broadband services and digital connectivity across Nigeria.

The company’s fibre network assets carried a book value of more than N2.44 billion at the end of the review period, highlighting the scale of its investment in long-term infrastructure development.

Management also emphasized that its financial risk management framework, liquidity controls and foreign exchange risk policies remain firmly in place to support operational stability and long-term value creation.

As broadband adoption and digital transformation continue to accelerate across the country, the company said it remains confident that its expansion strategy will translate into stronger earnings performance and improved returns for shareholders over the long term.