MTN Nigeria has reported a fantastic profit after tax of ₦133.7 billion in financial results for Q1 2025, unlike a period with losses in the same space in 2023.
The telco transformed significantly in its Q1 profits, which is a noteworthy turnaround from an adverse period. It shows the adaptability of the company’s business strategies after a challenging year impacted by currency devaluation and macroeconomic volatility.
Revenue Growth
The Q1 2025 service revenue of MTN Nigeria means that users brought in ₦1.05 trillion, which was an increase of 40.5% compared to the previous year. One of the strong contributors to this growth was:
- Data Revenue: Increased 51.5 percent to ₦529.4 billion because of increased data traffic up to 46.4 percent.
- Voice Revenue: An upsurge of 27.7 percent to reach ₦407.4 billion with 3.2 million new subscribers, bringing the total number of subscribers to 84.1 million.
The impact of the new tariffs put up in February 2025 was also felt in the performance of MTN Nigeria in the first quarter of 2025. Further benefits in revenue from this tariff increase would be felt more keenly in the ensuing quarters.
Fintech Performance: Mixed Results
MTN’s fintech division remained upward in Q1 2025, with revenue of ₦36 billion, a growth of 57.9% from the previous year. The growth momentum was mainly due to the improved performance of the airtime lending product, Xtratime, and also earned better float income. Even with that, the number of active MoMo PSB wallets depreciated by 25.7% quarter-on-quarter, which translates into a drop of 55.6% for year-on-year.
Notwithstanding the fall in active mobile money wallets, the general good performance in fintech revenue has imparted positively onto the results for MTN Nigeria for Q1 2025. The company seeks to extend its MoMo PSB in underserved rural communities as a counter to losses in active wallets.
Profitability and Operating Efficiency
The profitability, on the other hand, of MTN Nigeria as a result of investment decisions in the suitable directions and cost controls was thus reflected in the first quarter Q1 2025-Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew up to 65.9% from the previous one, and it also extended the EBITDA margin by 7.2 percentage points to 46.6%. Despite this, the 25% increase in operating expenses was primarily connected with the increase in lease-related costs due to foreign exchange pressures, but evidence continues to reflect that MTN Nigeria Q1 2025 strong profit performance.
The company also recorded robust free cash flows of ₦209.9 billion, translated into a strong income-generating activity from operations. The cash flow profiles will allow MTN Nigeria to sustain aggressive investments in network and service quality for the year 2025.
Network Expansion and Capital Investments
MTN Nigeria expanded its capital expenditure in Q1 2025 to ₦202.4 billion, a staggering increase of 159% compared to the previous year. This investment was pursued towards expanding its network infrastructure, mainly increasing coverage on both 4G and 5G and improving quality of service. Additionally, emphasis was put in increasing financial inclusion services, especially for people living in rural areas, to achieve wider access to mobile financial services.
Looking Ahead: Challenges and Opportunities for MTN Nigeria in 2025
As impressive as the MTN Nigeria Q1 2025 results are in terms of profits, challenges are yet to be faced:
- Mobile money decline: The reduction in MoMo PSB wallets could affect the long-term fintech growth because competitors are intensifying their presence in mobile payments.
- Macroeconomic risks: The company still faces inflation pressures and currency fluctuation that could damage its operational costs and profit margins in the coming months, if any.
Although the company still possesses all important fundamentals that are required for continuous growth in future, as perfect revenue streams, operational efficiency, as well as strategic investments on network infrastructure
MTN Nigeria Q1 2025 Sets Positive Outlook for 2025
MTN Nigeria Q1 2025 results show a healthy performance recovery and a good sign for the rest of the year. Targeting data revenue, mobile money expansion, and end-to-end investments will see the company well-placed to catch up with growth opportunities in 2025. The company still has to deal with the fintech segment’s inefficiencies and external macroeconomic uncertainties to sustain profitability, though.
Follow us on WhatsApp, Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to editorial@techtrendsmedia.co.ke
