MTN Nigeria Communications Plc has reported a record profit before tax of N1.09 trillion for the first half of 2026, marking a 75.4% year-on-year increase, as robust data demand, improved operating efficiency and lower borrowing costs boosted earnings despite a challenging macroeconomic environment.
The telecommunications giant also recorded a 25.9% increase in revenue to N2.99 trillion in the six months ended June 30, 2026, according to its unaudited financial statements filed with the Nigerian Exchange (NGX) on Thursday.
Profit after tax rose 70.6% to N707.5 billion, while the company’s Board of Directors approved an interim dividend of N26 per share, payable on September 7, 2026, to shareholders on the register as of August 20, 2026.
The company’s financial position also improved significantly during the period, with shareholders’ equity climbing 69.6% to N930.6 billion, while earnings per share increased by 70.6% to N33.76. Net assets per share also rose 69.6% to N44.41.
Total assets grew 10.5% to N5.97 trillion from N5.40 trillion at the end of December 2025, while interest-bearing borrowings declined 35.1% to N342.6 billion.
Operating profit increased 41.9% to N1.27 trillion as revenue growth outpaced operating costs, while lower finance costs following reduced borrowings further strengthened profitability.
Commenting on the results, Chief Executive Officer Karl Toriola attributed the strong performance to resilient customer demand, disciplined execution and improved operational efficiency.
“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.
Toriola noted that the improved stability of the naira during the period helped moderate cost pressures, while MTN added 4.9 million subscribers, increasing its customer base to 92.2 million. Active data users also rose to 55.7 million.
He said service revenue expanded by 25.9%, exceeding the company’s medium-term guidance, while EBITDA margin improved by 5.3 percentage points to 55.9% despite continued investment in network infrastructure.
Toriola added that MTN invested N620.5 billion in capital expenditure, excluding leases, during the period, while free cash flow surged 73.9% to N712.7 billion, supporting the Board’s decision to declare the N26 interim dividend.
The company’s performance was largely driven by continued growth in its data business, which remained its biggest revenue contributor.
Data revenue rose 38.3% to N1.70 trillion, accounting for approximately 56.8% of total revenue and contributing about 76.7% of the overall revenue growth during the period. The increase was supported by higher data consumption, stronger broadband adoption and rising demand for digital connectivity.
Voice revenue also increased by 15.0% to N897.1 billion, contributing about 30% of total revenue. Combined, data and voice services generated N2.60 trillion, representing about 86.7% of total first-half revenue, highlighting MTN’s continued transition from a traditional voice operator to a broader digital connectivity business.
Other revenue streams also recorded growth, with SMS revenue rising 21.9% to N112.7 billion, digital revenue increasing 21.1% to N58.7 billion, handset and accessories sales growing 29.3% to N11.0 billion, while ICT-related revenue rose 8.6% to N23.9 billion.
However, interconnect and roaming revenue declined 1.9% to N112.2 billion, while value-added services fell 6.9% to N77.1 billion, reflecting weaker performance in supplementary digital services.
On the balance sheet, continued investment in network infrastructure drove asset growth, with property, plant and equipment increasing to N2.22 trillion and right-of-use assets standing at N1.75 trillion. Together, the two asset classes accounted for about 66.4% of total assets, underlining the capital-intensive nature of the telecommunications business.
Current investments rose sharply to N415.3 billion from N162.3 billion, while trade receivables declined to N369.5 billion, indicating improved customer collections.
Cash and cash equivalents, however, fell to N458.9 billion from N632.5 billion, reflecting significant cash deployment towards capital expenditure, taxes, dividends and financing obligations.
Retained earnings nearly doubled to N793.1 billion, driving the increase in shareholders’ equity, while traditional borrowings declined significantly, reducing the company’s interest-bearing debt exposure. Lease liabilities remained high at N2.44 trillion, continuing to represent MTN’s largest financing obligation.
Current tax liabilities also increased to N640.4 billion, reflecting the stronger earnings recorded during the period.
Despite the record financial performance, MTN Nigeria’s shares closed unchanged at N857.10 on Thursday, suggesting investors were yet to fully price in the earnings announcement.
The stock has gained 67.7% since the start of 2026, rising from N511.00, and has appreciated by about 19% over the past month from around N720 at the beginning of July, further lifting the company’s market capitalisation.
The strong earnings growth, expanding profitability, sustained subscriber additions and higher interim dividend are expected to support positive investor sentiment in subsequent trading sessions.
Boluwatife Enome
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