MTN Nigeria Communications Plc recorded an 11% decline in finance costs to N359.58 billion in the nine months ended September 30, 2026, down from N404.18 billion in the corresponding period of 2025.
The N44.6 billion reduction, alongside stronger operating earnings and higher finance income, contributed to a 55.3% increase in profit after tax to N1.17 trillion from N750.19 billion a year earlier.
According to the company’s unaudited financial statements, finance costs declined by 11% during the period, reducing the amount of earnings absorbed by interest and other financing obligations.
Finance income, meanwhile, increased by 148.3% to N82.58 billion from N33.26 billion, providing an additional N49.32 billion in income.
Consequently, MTN’s net finance expense narrowed to N277 billion from N370.92 billion in the corresponding period of 2025, representing an improvement of N93.92 billion.
The reduction strengthened the company’s earnings position at a time when telecommunications operators continue to face substantial funding requirements for network infrastructure and technology investments.
MTN also recorded N80.14 billion in net foreign exchange gains, compared with N55.58 billion in the preceding year.
The combination of lower net financing expenses and higher foreign exchange gains contributed to the company’s stronger profit before tax, which increased by 59.4% to N1.80 trillion from N1.13 trillion.
However, the improvement in financing expenses was not the only driver of profitability.
MTN’s revenue rose by 23.6% to N4.61 trillion from N3.73 trillion, supported by continued growth in telecommunications services, particularly mobile data.
Operating profit increased by 38.2% to N1.99 trillion from N1.44 trillion, indicating that earnings from the company’s core operations grew faster than revenue.
The operating profit margin consequently improved to 43.2% from 38.7%, reflecting stronger earnings conversion despite rising personnel, marketing and impairment expenses.
MTN recorded N186.80 billion in employee costs, compared with N95.05 billion in the corresponding period of 2025, while advertising, sponsorship and sales promotion expenses increased to N56.47 billion from N32.58 billion.
Credit impairment charges also rose to N23.87 billion from N2.75 billion.
Despite these additional expenses, operating earnings expanded by N550.72 billion, providing a substantial contribution to the company’s overall profit growth.
MTN’s financial position also showed a reduction in outstanding borrowings, with total borrowings declining to approximately N333.32 billion as of September 30, 2026, from N527.67 billion at the end of December 2025.
The reduction in borrowings is consistent with lower financing exposure, although the company’s finance costs also include lease-related interest and other financing charges.
For investors, the improvement in MTN’s earnings reflects the combined benefits of stronger operating performance and a reduced net financing burden.
While foreign exchange movements may continue to influence reported earnings, the expansion in operating profit suggests that the company’s profitability improvement was not dependent solely on currency-related gains.
The sustainability of this performance will depend on MTN’s ability to maintain revenue growth, manage financing obligations and control operating expenses while continuing to invest in network capacity.