Internet Service Provider Records N199m Half-Year Loss Despite Network Expansion

An internet service provider,
Legend Internet Plc has posted a loss of N99.34 million for the six months ended January 31, 2026, reversing the N239.85 million profit recorded in the corresponding period of 2025, as declining revenue and rising operating costs weighed heavily on the company’s performance.

The ISP reported revenue of N505.36 million during the period, representing an 18.8 per cent decline from N622.64 million recorded a year earlier. The company’s earnings per share also fell into negative territory at 11 kobo, compared with earnings of 12 kobo in the corresponding period of 2025.

Financial statements filed with the Nigerian Exchange (NGX) showed that gross profit declined to N322.99 million from N411.33 million in the same period last year. Administrative expenses, however, surged sharply to N457.62 million from N166.78 million, contributing significantly to the deterioration in profitability.

The company consequently posted an operating loss before tax and interest of N134.63 million, compared to an operating profit of N244.55 million in the corresponding period of 2025. Finance costs also rose substantially to N64.71 million from N4.69 million, resulting in a loss before and after tax of N199.34 million for the six months. Also, a N100 million gain recognised under other comprehensive income reduced the overall comprehensive loss to N99.34 million.

However, a breakdown of revenue showed that fibre internet services remained the company’s largest source of income, generating N198.30 million during the period, down from N318.15 million recorded a year earlier. Wholesale bandwidth contributed N12.58 million, while WiFi services generated N2.20 million and Legend Pay accounted for N279,000.

The company’s balance sheet reflected growing leverage. Total borrowings rose sharply to N564.88 million as of January 31, 2026, compared with N75.23 million at the end of July 2025. The increase was driven largely by an N537.95 million commercial paper obligation.

Meanwhile, shareholders funds declined to N2.55 billion from N2.84 billion at the end of the previous financial year, reflecting the impact of losses, dividend payments and prior-period adjustments. Retained earnings fell to N410.75 million from N700.78 million.

Despite weak earnings, the company strengthened its liquidity position. Cash and cash equivalents rose to N269.13 million from N21.02 million at the end of July 2025, supported largely by financing inflows from new borrowings. Net cash generated from financing activities stood at N382.04 million during the period.

The company also continued investing in network infrastructure, with property, plant and equipment increasing to N2.45 billion from N2.60 billion after accounting for fresh additions and depreciation. The bulk of these assets remains tied to its fibre infrastructure network.

The latest results underscore the profitability challenges facing broadband providers amid rising operating costs, infrastructure investment requirements and increasing financing expenses, despite growing demand for internet connectivity across the