Telecom Operator Posts N355.5bn Profit In Q1

MTN Nigeria Communications Plc has reported a 56 per cent increase in free cash flow to N326.5 billion for the first quarter of 2026, driven by rising data demand and improved operational efficiency.

The telecom operator disclosed this in its unaudited financial results released on Thursday, even as it noted that free cash flow rose from N209.9 billion recorded in the corresponding period of 2025.

Meanwhile, the telco’s strong performance was underpinned by growth in service revenue, which surged 41.8 per cent to about N1.49 trillion, up from N1.05 trillion in Q1 2025.

Data revenue remained the major growth driver, increasing by 56.2 per cent year-on-year as data traffic climbed by 22.9 per cent, while average usage per subscriber rose to 14.3GB.

The firm also expanded its subscriber base, adding 2.3 million new users to reach 89.5 million, representing a 6.5 per cent increase, while active data subscribers grew by 9.5 per cent to 55 million.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose significantly by 68.1 per cent to N828.3 billion, with margins improving to 55.3 per cent, reflecting stronger operating leverage.

Commenting on the performance, the Chief Executive Officer, Karl Toriola, said, “The first quarter of 2026 underscores the strength of our execution and the resilience of our business model in a complex and evolving operating environment.”

He added, “We sustained strong commercial momentum, maintained disciplined cost management and accelerated investment in our network.”

The profit after tax grew by 165.9 per cent to N355.5 billion, while earnings per share more than doubled to N16.95 from N6.37 recorded in the same period last year.

Capital expenditure rose sharply by 92.8 per cent to N390.3 billion as the company intensified investments in network expansion, particularly in fibre-to-the-home and fixed wireless access infrastructure.

The company said it ended the quarter with a positive net cash position of N129 billion and had fully repaid its outstanding foreign-currency loans, thereby reducing exposure to exchange rate volatility.

MTN Nigeria also disclosed plans to restructure its fintech business by selling a 60 per cent stake while retaining 40 per cent ownership, alongside a proposed capital injection of N152.1 billion.