MTN Nigeria Communications Plc delivered a strong financial performance in the first half (H1) of 2026 with profit after tax rising 70.6 percent to N707.5 billion as sustained demand for data and other telecommunications services supported earnings growth.
The telecommunications company said service revenue for the six months ended June 30, 2026 increased 25.9 percent to N3.0 trillion, exceeding its medium-term guidance of at least low-20 percent growth.
Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 39.2 percent to N1.7 trillion, while EBITDA margin expanded by 5.3 percentage points to 55.9 percent.
Earnings per share increased by 70.6 percent to N33.70, in line with the improvement in bottom-line profitability.
The performance was supported by continued expansion in MTN Nigeria’s customer base, with total subscribers rising 8.9 percent to 92.2 million. The company added 4.9 million subscribers during the first half of the year.
Active data users increased 9.3 percent to 55.7 million, representing a net addition of 2.5 million customers as smartphone adoption and demand for data-intensive services continued to strengthen.
MTN Nigeria said service revenue growth moderated during the second quarter, primarily because previous price adjustments had become fully reflected in the comparative period and because of the temporary suspension of its airtime and data credit service, which affected fintech revenue.
Excluding the impact of the airtime and data credit service, service revenue increased 27.3 percent during the first half, highlighting continued growth across the company’s core operations.
Operating costs increased 11.3 percent, significantly below the pace of service revenue growth, allowing the company to expand profitability despite continued pressure from energy-related expenses.
MTN Nigeria invested N620.5 billion in capital expenditure, excluding leases, during the period, representing an increase of 1.2 percent and a capex intensity of 20.7 percent.
The investment was directed primarily towards strengthening network capacity and positioning the business to capture further growth opportunities as demand for telecommunications and digital services expands.
Cash generation also strengthened considerably with free cash flow increasing 73.9 percent to N712.7 billion, supported by higher earnings, improved operating cash generation and disciplined capital allocation.
The improved financial position prompted the Board of Directors to approve an interim dividend of N26 per share, payable from net distributable income and subject to applicable withholding tax.
The dividend will be paid on September 7, 2026, to shareholders whose names appear in the company’s register of members as of the August 20, 2026 qualification date.
Chief Executive Officer Karl Toriola said the first-half performance reflected resilient demand for MTN’s services, improved profitability and strong cash generation despite a challenging operating environment.
The company also benefited from greater stability in the foreign exchange market. The naira closed the period at N1,380 to the U.S. dollar, compared with N1,530 per dollar at the end of the first half of 2025, providing improved planning visibility and moderating some cost pressures.
Beyond its commercial operations, MTN Nigeria said it contributed N622.6 billion in taxes and levies to the government during the period and invested N1.4 billion through its Foundation in programmes focused on digital inclusion, youth empowerment and national development.
Looking ahead, MTN Nigeria said it will focus on sustaining service revenue growth, protecting margins, improving customer experience, expanding its home broadband business and strengthening fintech performance as it seeks to maintain earnings momentum during the second half of 2026.