MTN Nigeria Communications Plc has recorded a 6.7 per cent surge in total subscribers, rising to 84.7 million, and an increase of 11.8 per cent in internet users, moving the figure to 51 million.
This record, showcasing a robust growth in key performance metrics, is contained in its financial results for the first half of 2025 submitted to the Nigerian Exchange Ltd.
However, the telecommunication giant still faces challenges in its MoMo Wallet, signalling headwinds for its fintech segment despite the reported significant increases in subscribers, revenue, and profitability.
Details of the H1 earnings show that the profitability of the telecom giant, the Earnings before interest, tax, depreciation, and amortisation (EBITDA), grew by 11.5 per cent to N1.2 trillion, with the EBITDA margin improving by 1.9 per cent to 50.6 per cent.
Profit after tax (PAT) reached N4.9 billion, a significant turnaround from a negative of N5.9 billion in H1 2024. Earnings per share improved to N3.88 kobo, compared to a negative N2.47 kobo in the prior year.
The increase in the subscribers’ base and that of the internet users prompted a 54.6 per cent surge, moving the revenue to N2.4 trillion, driven by strong demand across voice, data, and digital services, bolstered by strategic price adjustments in Q2.
Capital expenditure (excluding leases) increased by 28.4 per cent to N6.57 billion, reflecting accelerated network investments to enhance capacity and customer experience and a rise of 18.8 per cent in free cash flow to N4.98 billion, underscoring disciplined capital allocation.
MoMo Wallet Concerns
Despite the strong overall performance, MTN Nigeria’s fintech segment, particularly its MoMo Wallet, has shown signs of softening. While fintech revenue grew by 71.8 per cent, driven by the airtime lending product (Xtratime) and advanced services, industry observers note a decline in monthly active users of rich media services (excluding ayoba) by 24.6 per cent to 7.4 million compared to December 2024. This drop, attributed to platform optimisation, has raised questions about the sustainability of MoMo Wallet’s growth trajectory.
Analysts suggest that the decline in active users could reflect challenges in user retention or competitive pressures in Nigeria’s rapidly evolving fintech market. However, MTN remains optimistic, citing improved engagement levels and a focus on high-value customer services as key drivers of fintech revenue growth. The company has also begun onboarding mobile virtual network operators (MVNOs) and secured a national roaming agreement with Emerging Markets Telecommunications Services Ltd (3Mobile), signaling a broader strategy to strengthen its ecosystem.
Strategic and Macroeconomic Context
MTN Nigeria’s CEO, Karl Toriola, highlighted the company’s strategic execution as a key factor in its H1 success. “We are excited by the progress made in the first half of 2025, reflecting the successful execution of our strategic priorities,” Toriola said. “Our accelerated network investments have enhanced capacity, coverage, and quality of experience, supporting robust demand for our services.”
The macroeconomic environment in Nigeria showed improvement, with a relatively stable naira (closing at N1,530/US$ compared to N1,550/US$ in December 2024) and improved foreign exchange liquidity. The Central Bank of Nigeria maintained the Monetary Policy Rate at 27.5 per cent, contributing to a moderation in headline inflation to 22.5 per cent in June 2025. These conditions supported MTN’s improved business performance and set a favourable backdrop for long-term investments.
Buoyed by its strong H1 performance, MTN Nigeria has revised its full-year 2025 guidance, now targeting service revenue growth and an EBITDA margin of at least low-50 per cent. The company expects to restore a positive net asset position by the end of Q3 2025, supported by strong earnings and free cash flow generation. For the medium term (from 2026), MTN projects service revenue growth of at least low-20 per cent and an EBITDA margin in the 53–55 per cent range, assuming stable economic conditions and no further price adjustments.
MTN Nigeria continues to invest in digital and financial inclusion initiatives. The company committed N3 billion to support the Federal Ministry of Communications, Innovation & Digital Economy’s 3 Million Technical Talent (3MTT) Programme, aimed at fostering digital skills among young Nigerians. Additionally, MTN launched an accelerator programme offering N10 million in grants, mentorship, and technical support to empower African startups, reinforcing its role as a catalyst for innovation.
Outlook
Looking ahead, MTN Nigeria anticipates sustained operational and financial momentum in H2 2025, supported by a stable macroeconomic environment and continued demand for its services. The company expects a moderation in capital expenditure in the second half, aligning with its full-year objectives, which should further strengthen free cash flow.
While the decline in MoMo Wallet’s active users raises concerns, MTN’s focus on expanding advanced fintech services and leveraging its partner ecosystem positions it to address these challenges. As Nigeria’s largest telecommunications provider, MTN remains committed to driving inclusive digital progress and delivering long-term value to its stakeholders.
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