MTN Nigeria Communications Plc more than doubled its profit after tax to N355.5 billion for the first quarter ended March 31, 2026, from N133.7 billion a year earlier, as increased data consumption and growth in fintech services drove revenue expansion.
The telecom operator’s service revenue rose by 41.8 percent year-on-year to N1.49 trillion, supported by increased data usage, subscriber growth, and expansion in digital financial services. Total revenue increased to N1.50 trillion, according to the company’s Q1 unaudited financial statements for the period ended March 31st, 2026.
Karl Toriola, the company’s chief executive officer, said the performance reflected execution and demand resilience despite macroeconomic pressures.
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“The first quarter of 2026 underscores the strength of our execution and the resilience of our business model in a complex and evolving operating environment,” he said, noting that inflationary pressures linked to higher energy prices were partly offset by a stronger naira.
Operationally, MTN added 2.3 million revenue-generating subscribers to reach 89.5 million, while active data users rose 9.5 percent to 55 million. Data traffic increased by 22.9 per cent, with average usage per subscriber rising to 14.3GB, reinforcing the role of data as the primary growth driver.
Data revenue grew by 56.2 percent to N827.2 billion, driven by higher smartphone penetration, which rose to 66.2 percent, and increased customer usage. Voice revenue also expanded by 22.5 percent to N499.1 billion, supported by subscriber additions and pricing strategies.
Fintech revenue recorded the fastest growth, rising 77.9 percent to N64.2 billion, reflecting increased adoption of digital financial services and higher interest income on customer balances.
The company reported improved cost efficiency, with operating expenses rising by 16.1 per cent, below revenue growth, enabling operating leverage. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 68.1 percent to N828.3 billion, while EBITDA margin expanded to 55.3 percent from 46.6 percent in the prior year.
Free cash flow increased by 55.6 percent to N326.5 billion. Cash and cash equivalents declined to N506.9 billion at the end of the period from N632.7 billion at the start of the quarter, reflecting higher capital expenditure and investment activity, as shown in the cash flow statement.
Capital expenditure excluding leases rose by 92.8 percent to N390.3 billion as the company accelerated network investment to support rising data demand and improve service quality.
“We sustained strong commercial momentum, maintained disciplined cost management and accelerated investment in our network—translating underlying demand into robust financial performance,” Toriola said.
During the quarter, the company disclosed a regulatory-driven disruption to one of its fintech products, Xtratime, which provides airtime and data credit advances. MTN said it “temporarily suspended its airtime and data credit advance service (‘Xtratime’)” in response to new regulatory requirements governing digital lending.
The suspension relates to the implementation of the Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, 2025, which introduced a revised compliance and licensing framework for providers of digital credit.
MTN stated that it is onboarding approved providers and expects to resume the service once the process is completed. In the interim, the company noted that customers continued to access airtime and data through alternative digital channels.
The company added that recharge behaviour has begun to stabilise following the suspension. “Following the initial impact of the suspension, recharge patterns have continued to normalise as affected customers settle outstanding balances and maintain service usage,” adding that this has supported a recovery in revenue through increased self-funded recharges.
MTN also disclosed progress on the planned separation of its fintech business, with MTN Group Fintech Holdings B.V. expected to acquire a 60 percent stake alongside a capital injection of N152.1 billion, subject to approvals, with MTN Nigeria retaining 40 percent.
“The transaction is expected to reduce MTN Nigeria’s future funding obligations, strengthen balance sheet flexibility, and allow increased focus on core connectivity and digital infrastructure while retaining exposure to fintech growth. The proposed transaction will also simplify governance of the fintech business. It is subject to shareholder approval at the AGM,” the statement disclosed.
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Looking ahead, the company expects service revenue growth to normalise as prior tariff adjustments become fully annualised from the second quarter.
Toriola said, “We remain confident in the structural demand drivers underpinning our business and will continue to prioritise network investment and customer experience.”