June 3 (THEWILL) — Legend Internet Plc has reassured investors of stronger future earnings prospects despite posting a pre-tax loss of ₦199.34 million for the six months ended January 31, 2026, as aggressive spending on network expansion, rising operating expenses, and higher financing costs weighed on profitability.
The broadband and digital services provider reported its first interim loss since listing on the Nigerian Exchange (NGX), reversing from a pre-tax profit of ₦239.85 million recorded in the corresponding period of 2025.
According to its unaudited half-year results, revenue declined by 18.84 percent year-on-year to ₦505.36 million from ₦622.64 million, while gross profit fell 21.48 percent to ₦322.99 million. Although the cost of sales moderated during the period, earnings came under pressure from a sharp rise in operating expenses.
Administrative expenses surged by 174.38 percent to ₦457.62 million, exceeding gross profit and pushing the company into an operating loss of ₦134.63 million, compared with an operating profit of ₦244.55 million a year earlier. Personnel costs, depreciation charges, professional fees, marketing expenses, and travel costs all increased during the review period.
Finance costs further compounded the pressure on earnings, jumping 1,278.78 percent to ₦64.71 million following new commercial paper borrowings. Total borrowings rose to ₦564.88 million from ₦75.23 million at the end of July 2025.
The Chief Executive Officer, Aisha Abdulaziz, said the weaker earnings reflected the short-term impact of investments aimed at strengthening the company’s long-term growth prospects.
“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”, she said.
Despite the earnings setback, the company maintained a relatively strong balance sheet. Total assets rose by 7.55 percent to ₦3.45 billion, supported by continued investment in fibre infrastructure. Property, plant, and equipment increased to ₦3.25 billion, while fibre network assets were valued at more than ₦2.44 billion.
Liquidity also improved significantly, with cash and cash equivalents rising to ₦165.5 million from a negative position of ₦28.3 million previously.
Legend Internet’s shares slipped from ₦6.06 to ₦5.90 following the results, although the stock remains above its opening price for the year as investors assess whether the company’s expansion strategy can translate into stronger earnings in the second half of 2026.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
