MTN Nigeria’s Robust Q1 2025 Performance

In an impressive display of resilience and strategic maneuvering, MTN Nigeria reported a staggering revenue of
N1 trillion for the first quarter of 2025. This achievement signifies a remarkable
40.5% increase year-on-year, a substantial leap from the N752.9 billion recorded in Q1 2024.
One can’t help but wonder: What does this surge mean for the broader telecommunications landscape in Nigeria?

The driving force behind this robust performance can primarily be traced back to a 50% tariff increase
that was introduced in February 2025. While this bold adjustment played a crucial role in bolstering revenues,
the full financial impact is anticipated to unfold over subsequent quarters. Picture the intricate recipe that goes
into a successful business strategy; every ingredient matters, and sometimes it’s the boldest changes that yield
the most significant results.

According to its unaudited financial results for Q1 2025, MTN Nigeria has made a triumphant return to profitability,
reporting a net profit of N133.7 billion. This marks a stark contrast from the
N392.7 billion loss that weighed heavily on the company’s fortune during the same quarter last year.
The turnaround is nothing short of dramatic—almost cinematic, wouldn’t you agree?

Significantly, this rebound signals a continued recovery from the turmoil caused by the 2023 naira
devaluation. That event sent shockwaves through the company’s finances, resulting in enormous foreign
exchange losses. Yet, here they are, picking themselves up and moving forward. It raises an interesting question:
How do companies manage to pivot in the face of adversity, and what can we learn from their strategies?

MTN has now recorded three consecutive quarters of profitability since June 2024. This recovery has been
particularly impressive, especially given the backdrop of a N740 billion FX loss last year. Just
imagine the pressure on the management and employees during those tumultuous times. Now, with a stronger foundation,
MTN is charting a new course.

In Q1 2025, the company successfully reduced its realized FX losses by a commendable 66%, and even
posted an unrealized foreign exchange gain of N55 billion. This gain serves as a partial hedge
against the significant N476.8 billion loss experienced the previous year. This indicates an
adeptness in financial management; a skill that not only supports business metrics but also builds stakeholder
confidence.

It’s important to remember that telecommunications multinationals like MTN are especially vulnerable to exchange
rate volatility. Since the naira was floated, the operating and capital expenditures in dollars have posed a
unique challenge that the company must continuously navigate. How many businesses can adapt and thrive under
such pressures?

Commenting on the tariff increase—affecting voice calls, SMS, and data plans—MTN Nigeria’s CEO, Karl
Toriola, elaborated:

“We commenced phased implementation of the new tariff structure in mid-February 2025 across our data and
voice bundles, with the majority of adjustments taking effect in March.”

Toriola further mentioned that while the full impact on usage and revenue is expected from Q2, early indicators
suggest a strong resilience in customer demand. This optimism is fueled by targeted Customer Value Management
(CVM) initiatives.

Additionally, Toriola highlighted a recent collaboration with Airtel Africa, aimed at passive
infrastructure sharing in Nigeria. This partnership could potentially enhance the quality of network coverage and
operational efficiency. Could this be a trend we see more of in the industry?

Stronger Margins, Rising Subscriber Base

Operational profitability also showed significant improvement, with EBITDA soaring by 65.9% and
the EBITDA margin expanding by 7.2 percentage points to reach 46.6%. As investors
look closely at these figures, the sentiment has turned decidedly positive. MTN’s share price, which had endured
a tumultuous 24.24% loss year-to-date, has recently rebounded. As of April 29, 2025, the stock
was trading at N240 per share, reflecting an impressive 20% Year-to-Date gain.

In terms of subscriber growth, MTN added a remarkable 3.2 million new users in Q1 2025, bringing
its total subscriber base to 84.1 million. Active data users also surged by 2.6 million,
pushing the total to 50.3 million. This surge has reinforced a
46.4% year-on-year growth in data traffic—indicative of an increasingly connected society.

As MTN Nigeria continues to navigate the complexities of the telecommunications industry, one can’t help but
feel a sense of optimism for what the future holds. With continued innovation, strategic partnerships, and a
focus on customer value, MTN seems well-positioned to maintain its trajectory. After all, in a world that
thrives on connection, isn’t it inspiring to witness a tale of recovery, resilience, and undeniable growth?