Karl Toriola-led MTN Nigeria posts $3.8 billion in revenue, returns to profitability

MTN Nigeria, the country’s largest telecom operator, led by Karl Toriola, posted over $3.8 billion in revenue for its fiscal year 2025, marking a 54.92% increase over the previous year. The performance marks a decisive turnaround for the telecom giant, driven by robust data demand, disciplined pricing and improved macroeconomic stability.

Data, voice boost revenue growth
In its latest financial report, MTN Nigeria saw its revenue increase from N3.56 trillion ($2.48 billion) to N5.2 trillion ($3.84 billion) for the full year ended Dec. 31, 2025. The company’s revenue growth was underpinned by strong commercial execution across data, voice, fintech and digital services. Profit after tax reached N1.11 trillion ($819.25 million), a sharp reversal from the N400.4 billion ($295.23 million) loss recorded in 2024.

Total subscriber base climbed 7.9% to 87.3 million, while active data users increased 11.6% to 53.2 million, reflecting sustained structural demand for connectivity in Africa’s most populous nation.

Data, fintech power topline expansion
Data revenue surged 74.5% to N2.78 trillion ($2.05 billion), cementing its position as MTN Nigeria’s largest revenue contributor. The growth was supported by a 34% rise in data traffic and a 20% increase in average usage per subscriber to 13.1GB. Smartphone penetration rose to 66.1%, while 4G population coverage expanded to 84.6%.

Voice revenue grew 42.1% to N1.85 trillion ($1.36 billion), demonstrating resilience despite pricing adjustments. Fintech revenue climbed 79.7% to N191.3 billion ($141.02 million), as active MoMo wallets expanded 30.8% to 3.7 million and customer deposits surged. Digital revenue increased 36%, driven by mobile advertising and content partnerships.

The company more than doubled its network investment, with capital expenditure excluding leases rising 126.2% to N1 trillion ($738.06 million), translating to a capex intensity of 19.3%. Investments targeted capacity expansion, radio densification, fibre rollout and a new data centre to support enterprise and cloud services.

FX pressure eases
Improved foreign exchange stability and disciplined balance sheet management significantly strengthened earnings quality. The naira appreciated to N1,436 per dollar at year-end, compared with N1,535 a year earlier, while inflation moderated.

MTN Nigeria reported earnings before interest, tax, depreciation and amortisation (EBITDA) of N2.74 trillion ($2.02 billion), up 108.9%, with margin expansion of 13.6 percentage points to 52.7%.

The company posted a net foreign exchange gain of N90.3 billion ($66.62 million), compared with a N925.4 billion ($682.75 million) loss the previous year, reflecting reduced dollar exposure and settlement of outstanding foreign obligations.

Free cash flow rose 215.5% to N1.2 trillion ($885.34 million), even as the company accelerated network spending. MTN Nigeria closed the year with a positive net cash position of N104.8 billion ($77.32 million), compared with negative N719.5 billion ($530.84 million) in 2024. Net debt-to-EBITDA stood at negative 0.1x, while interest cover strengthened to 26.5x, underscoring balance sheet resilience.

Dividend restored, outlook strengthened
Following the earnings recovery, the board proposed a final dividend of N15 ($0.01) per share, bringing the total dividend for 2025 to N20 ($0.014) per share, marking a return to shareholder payouts after the prior year’s loss.

Chief Executive Officer Karl Toriola described 2025 as “a significant turning point,” highlighting restored retained earnings of N400.4 billion ($295.43 million) and shareholders’ equity of N548.7 billion ($404.86 million).

“2025 marked a return to profitability, stronger free cash flow generation and the resumption of dividends. Our balance sheet resilience reflects disciplined execution and a deliberate reduction in foreign currency exposure,” Toriola said.

Looking ahead, MTN Nigeria maintained its medium-term guidance of at least low-20% average service revenue growth and upgraded its EBITDA margin outlook to the mid-to-high 50% range, supported by improved macroeconomic conditions and sustained data demand.

With expanding broadband coverage, fintech scaling and continued network leadership, MTN Nigeria enters 2026 with strengthened financial flexibility and a renewed focus on profitable growth and consistent shareholder returns.