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By Osasome, C.O
MTN Nigeria records strong H1 2026 performance as data, broadband and digital services fuel growth
MTN Nigeria Reports ₦707.5bn Half-Year Profit on Strong Data Growth and Operational Efficiency
MTN Nigeria Plc has reported a 70.6 percent year-on-year increase in profit after tax (PAT) to ₦707.5 billion for the first half of the 2026 financial year, driven by robust demand for data services, improved operational efficiency, disciplined cost management and a stronger naira.
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The telecommunications giant also recorded 29.5 percent growth in revenue to ₦2.993 trillion, reflecting strong performance across its data, voice, digital, fintech and enterprise businesses despite operating in a challenging macroeconomic environment.
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The impressive earnings underscore MTN Nigeria’s continued leadership in Nigeria’s telecommunications industry as the company deepens investments in broadband infrastructure, digital services and financial technology while rewarding shareholders with an interim dividend.
Data Services Continue to Drive Revenue Growth
MTN Nigeria said its financial performance was largely powered by sustained consumer demand for high-speed internet services and digital connectivity.
Service revenue increased by 25.9 percent to approximately ₦3.0 trillion, supported by ₦1.70 trillion in data revenue and ₦897.1 billion in voice revenue.
According to the company, data revenue grew by 38.4 percent, driven by rising smartphone penetration, increased data consumption and continued expansion of its active data subscriber base.
Network data traffic climbed 25.8 percent, while average monthly data usage per subscriber increased 15.2 percent to 14.8GB, highlighting the growing appetite for digital services across the country.
“The resilience of our core business, together with targeted commercial initiatives, helped contain the impact of the temporary suspension of airtime and data credit service and supported continued growth during the period,” the company said.
Subscriber Base Climbs Above 92 Million
MTN Nigeria maintained strong commercial momentum during the period, adding 4.9 million new subscribers to bring its customer base to 92.2 million.
The company also expanded its active data users by 2.5 million, raising the total to 55.7 million subscribers.
Smartphone penetration across its network increased to 66.4 percent, reinforcing management’s confidence that mobile broadband remains the company’s largest long-term growth opportunity.
MTN said growing demand for fibre-to-the-home (FTTH) services and Fixed Wireless Access (FWA) powered by its 5G network positions the company to capture Nigeria’s expanding broadband market.
“As demand for reliable, high-speed broadband continues to grow, our fibre-to-the-home and 5G Fixed Wireless Access offerings position us well to accelerate broadband adoption and capture significant long-term opportunities,” the company stated.
Voice Business Remains Resilient Despite Digital Shift
Although consumer communication habits continue shifting toward internet-based applications and over-the-top (OTT) platforms, MTN Nigeria’s voice business remained resilient.
Voice revenue grew by 12 percent, supported by subscriber growth and value-driven customer offerings.
The enterprise business recorded a marginal 0.4 percent decline, which management attributed to strategic portfolio optimisation initiatives introduced during the first quarter to improve long-term revenue quality.
The company expects the enterprise segment to return to growth as demand strengthens for enterprise connectivity, converged ICT solutions and digital services.
Mobile Money Shows Strong Underlying Momentum
While fintech revenue declined 7.2 percent due to the temporary suspension of airtime and data credit services, MTN said its underlying mobile money business continued to expand significantly.
Revenue generated from mobile money increased by approximately 132 percent, while active digital wallets grew by 1.3 million to reach 5.0 million during the reporting period.
The company disclosed that it continues to implement the structural separation of its fintech business following shareholder approval, subject to regulatory clearances.
Management believes the restructuring will improve financial flexibility, reduce future funding obligations and enable MTN to retain significant exposure to Nigeria’s fast-growing fintech market.
“Our focus remains on building a stronger, more reliable and more relevant fintech platform for the Nigerian market by improving platform stability, strengthening customer experience, expanding rural penetration and pursuing the appropriate licensing pathway,” MTN said.
Strong Cash Generation Supports Shareholder Returns
The telecom operator generated strong cash flows during the period, reflecting improved profitability and disciplined capital allocation.
Free cash flow increased 73.9 percent to ₦712.7 billion, while earnings per share rose to ₦33.70.
The Board of Directors approved an interim dividend of ₦26 per ordinary share, payable on September 7, 2026, to shareholders whose names appear in the company’s register by the qualification date of August 20, 2026.
₦620bn Invested in Network Expansion
MTN Nigeria continued investing heavily in network infrastructure to support growing customer demand.
Capital expenditure, excluding leases, reached ₦620.5 billion, reinforcing investments in network capacity, broadband expansion and digital infrastructure.
Despite rising energy costs, the company contained operating expenditure growth at 11.3 percent, resulting in a 5.3 percentage-point expansion in EBITDA margin to 55.9 percent.
The stronger naira also helped moderate operating costs, closing at approximately ₦1,380 per US dollar at the end of the first half of 2026 compared with ₦1,530 per US dollar during the corresponding period of 2025.
According to the company, the relatively stable exchange rate improved planning certainty while easing inflation-related cost pressures.
CEO Highlights Resilient Performance
Commenting on the results, MTN Nigeria Chief Executive Officer, Karl Toriola, said the company delivered a strong operational and financial performance despite a challenging global and domestic economic environment.
“We delivered a strong first-half performance, with sustained commercial momentum, improved profitability and robust cash generation. This reflects the resilience of demand for our services, disciplined execution across the business and continued focus on efficiency in a challenging operating environment,” Toriola said.
He noted that service revenue grew 25.9 percent, outperforming the company’s medium-term guidance and significantly exceeding Nigeria’s average inflation rate during the period.
According to him, excluding the temporary suspension of airtime and data credit services, service revenue growth would have reached 27.3 percent, demonstrating the strength of MTN Nigeria’s core business.
Driving Digital Inclusion and National Development
Beyond its commercial performance, MTN Nigeria reaffirmed its commitment to creating social and economic value.
The company disclosed that it invested ₦1.4 billion through the MTN Foundation in programmes promoting digital inclusion, youth empowerment and national development.
It also contributed ₦622.6 billion in taxes and statutory levies to government during the reporting period.
Toriola said the company remains focused on sustaining revenue growth, improving customer experience, expanding broadband penetration and strengthening its fintech business while creating long-term value for shareholders.
“We remain confident in the long-term structural opportunity in Nigeria and will continue to execute with discipline to create sustainable value for all stakeholders,” he said.
Outlook: Broadband, Fintech and Digital Services to Drive Future Growth
Industry analysts have described MTN Nigeria’s half-year performance as exceptionally strong. They believe this underscores the rising significance of data services, broadband connectivity, and digital financial solutions within the telecom sector. These three pillars are now viewed as the primary growth engines driving the country’s telecommunications industry forward.
Smartphone adoption continues to rise across Nigeria, while demand for high-speed internet is growing at a rapid pace. This is being supported by expanding fibre infrastructure and the ongoing nationwide rollout of 5G services.
Taken together, these factors position MTN Nigeria strongly to sustain growth and fully capitalise on the country’s accelerating digital transformation agenda.
