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MTN Nigeria reported a record ₦1.09 trillion profit before tax in the first half of 2026, driven by strong growth in data revenue, improved operating efficiency and lower borrowing costs.
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Revenue rose 25.9 percent to ₦2.99 trillion, while profit after tax climbed 70.6 percent to ₦707.5 billion as the telecom giant expanded its subscriber base to 92.2 million.
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The company declared an interim dividend of ₦26 per share after investing ₦620.5 billion in network expansion and generating strong cash flows during the period.
July 31, (THEWILL) — MTN Nigeria Communications Plc posted its strongest half-year financial performance on record after profit before tax surged 75.4 percent to ₦1.09 trillion in the first six months of 2026.
The telecommunications giant also grew revenue by 25.9 percent to ₦2.99 trillion despite operating in a challenging macroeconomic environment, according to its unaudited financial statements filed with the Nigerian Exchange on Thursday.
Profit after tax increased by 70.6 percent to ₦707.5 billion, while earnings per share rose by the same margin to ₦33.76.
Following the strong performance, the company’s board approved an interim dividend of N26 per share, payable on September 7, 2026, to shareholders on the register as of August 20.
The company’s balance sheet also strengthened, with shareholders’ equity rising 69.6 percent to ₦930.6 billion during the period.
Data business powers revenue growth
Data services remained MTN Nigeria’s biggest earnings driver during the period.
Data revenue rose 38.3 percent to ₦1.70 trillion, accounting for nearly 57 percent of total revenue and contributing more than three-quarters of the company’s revenue growth.
The performance reflected increased data consumption, stronger broadband adoption and rising demand for digital connectivity across the country.
Voice revenue also grew by 15 percent to ₦897.1 billion, although it continued to expand at a slower pace as customers increasingly shifted towards data services.
Combined, voice and data generated ₦2.60 trillion, representing almost 87 percent of the company’s total revenue during the first half of the year.
SMS revenue increased 2.9 percent to ₦112.7 billion, while digital services and handset sales also posted healthy growth. However, revenue from value-added services and interconnect and roaming declined slightly during the period.
Lower debt boosts profitability
MTN Nigeria’s earnings also benefited from improved cost management and lower financing expenses.
Operating profit climbed 41.9 percent to ₦1.27 trillion as revenue growth outpaced operating costs.
Traditional interest-bearing borrowings declined by 35.1 percent to ₦342.6 billion, helping reduce finance costs and further strengthen profitability.
The Chief Executive Officer, Karl Toriola, said resilient customer demand, disciplined execution and operational efficiency underpinned the company’s performance.
“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”, he said.
He added that MTN gained 4.9 million subscribers during the period, bringing its customer base to 92.2 million, while active data users increased to 55.7 million.
Investment in network continues
The company continued investing heavily in expanding and improving its network infrastructure.
Capital expenditure, excluding leases, stood at ₦620.5 billion during the period, while free cash flow increased 73.9 percent to ₦712.7 billion.
Total assets rose 10.5 percent to ₦5.97 trillion, supported mainly by investments in property, plant and equipment as well as network assets.
Although cash and cash equivalents declined to ₦458.9 billion from ₦632.5 billion at the end of 2025, MTN said the movement reflected capital expenditure, dividend payments, taxes and financing obligations.
Current investments increased sharply to ₦415.3 billion, while trade receivables declined, indicating stronger customer collections.
Shares gain as investors back earnings
MTN Nigeria’s shares closed unchanged at ₦857.10 on Thursday as investors digested the results.
The stock has gained about 67.7 percent since the beginning of the year, making it one of the best-performing large-cap stocks on the Nigerian Exchange in 2026.
Over the past month alone, the shares have appreciated by about 19 percent, reflecting growing investor confidence in the company’s earnings outlook.
With record profitability, continued subscriber growth, expanding data usage and an improved dividend payout, analysts expect the market to respond positively to the company’s financial performance in subsequent trading sessions.
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.
