MTN Nigeria rakes in N1 trillion in Q1 2025 as tariff hike boosts revenue
MTN Nigeria recorded revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024.
MTN Nigeria recorded N1 trillion in revenue in Q1 2025, a 40.5% increase from Q1 2024.
The company returned to profitability with a N133.7 billion profit after tax in Q1 2025, following a loss in the same period last year.
MTN Nigeria added 3.2 million new users and 2.6 million active data users in Q1 2025, bringing the total subscriber base to 84.1 million and total active data users to 50.3 million.
MTN Nigeria recorded revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024.
This strong performance was largely driven by a 50% tariff increase implemented in February 2025, though the full financial impact is expected to materialize in subsequent quarters.
According to its unaudited Q1 2025 financial results, the telecom giant returned to profitability with a N133.7 billion profit after tax, a dramatic turnaround from the N392.7 billion loss recorded in the same period last year.
This rebound signals a continued recovery from the financial distress triggered by the 2023 naira devaluation, which severely impacted profitability due to massive foreign exchange losses.
The company has now recorded three consecutive quarters of profitability since June 2024, following a turbulent period marked by a N740 billion FX loss last year.
In Q1 2025, MTN Nigeria managed to cut its realised FX losses by 66% and posted an unrealised foreign exchange gain of N55 billion, partly offsetting the N476.8 billion loss from the previous year.
Telecom multinationals like MTN remain particularly exposed to exchange rate volatility due to their dollar-denominated operational and capital expenditures, a challenge that has persisted since the naira was floated.
Speaking on the tariff increase, which uniformly applies to voice calls, SMS, and data plans, MTN Nigeria CEO, Karl Toriola, said:
'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.
'While the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted CVM initiatives,' he added.
Mr. Toriola also added a recent partnership with Airtel Africa on a passive infrastructure-sharing initiative in Nigeria. The collaboration is expected to improve network coverage and operational efficiency.
Stronger margins, rising subscriber base
Operational profitability also improved significantly, with EBITDA rising by 65.9%, and the EBITDA margin expanding by 7.2 percentage points to 46.6%, a key metric watched by investors.
Investor sentiment has responded positively, with MTN's share price rebounding from last year's 24.24% year-to-date loss. As of April 29, 2025, the stock was trading at N240 per share, reflecting a 20% YTD gain.
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