MTN Nigeria Communications Plc recorded a 59.4% increase in pre-tax profit to N1.80 trillion for the nine months ended September 30, 2026, from N1.13 trillion in the corresponding period of 2025, supported by stronger data revenue, subscriber growth and improved operating margins.

For the third quarter alone, pre-tax profit increased by 39.6% to N704.1 billion from N504.2 billion in Q3 2025, as the telecommunications company sustained its earnings growth.

According to the company’s unaudited consolidated financial statements and earnings release dated October 30, 2026, revenue increased by 23.6% to N4.61 trillion from N3.73 trillion.

The stronger revenue performance translated into higher profitability, with operating profit rising by 38.2% to N1.99 trillion from N1.44 trillion and profit after tax rising by 55.3% to N1.17 trillion from N750.19 billion, while earnings per share rose to N55.60 from N35.80.

Key Highlights

  • Revenue: N4.61 trillion (Up 23.6% YoY from N3.73 trillion).
  • Service revenue: N4.59 trillion (Up 23.7% YoY from N3.71 trillion).
  • EBITDA: N2.62 trillion (Up 36.8% YoY from N1.92 trillion).
  • EBITDA margin: 56.9% (Up 5.5 percentage points from 51.4%).
  • Operating profit: N1.99 trillion (Up 38.2% YoY from N1.44 trillion).
  • Net finance costs: N277.00 billion (Down 25.3% YoY from N370.92 billion).
  • Total assets: N5.97 trillion (Up 10.6% from N5.40 trillion).
  • Total shareholders’ equity: N843.91 billion (Up 53.8% from N548.71 billion).
  • Cash and cash equivalents: N380.99 billion (Down 39.8% from N632.50 billion).

Management commentary

Commenting on the results, MTN Nigeria’s Chief Executive Officer, Karl Toriola, highlighted the company’s improved third-quarter performance and stronger operating margins.

  • “We delivered a very strong third quarter, reversing the temporary slowdown in Q2,” he said.

Toriola noted that service revenue growth accelerated during the quarter, supported by higher customer usage, increasing data adoption, and continued investment in network infrastructure. According to him,

“Growth is increasingly volume-led, driven by more users, deeper data adoption, higher usage and rising demand for home broadband, supported by continued investment in network coverage, capacity and quality.”

He also highlighted the group’s stronger financial position, noting that its borrowings were fully denominated in naira and carried fixed interest rates.

Management reaffirmed its medium-term guidance of service revenue growth, averaging at least the low-20% range and EBITDA margin in the mid-to-high-50% range.

Driving the numbers

MTN Nigeria’s revenue growth was primarily driven by its data business, which remained the largest contributor to service revenue during the nine-month period.

  • Data revenue increased by 35.8% to N2.68 trillion from N1.98 trillion, accounting for 58.5% of total service revenue.
  • Voice revenue increased by 11.1% to N1.50 trillion from N1.35 trillion, while digital services revenue rose by 24% to N88.3 billion from N71.2 billion.
  • Other service revenue, which includes enterprise-related services, increased by 21.3% to N219.2 billion.

However, fintech revenue declined by 25.9% to N97.5 billion from N131.6 billion, reflecting the temporary suspension of the company’s airtime and data credit service between April and June 2026.

  • Management explained that the service resumed under a new multi-partner model, with revenue increasing by 78.5% in the third quarter compared with the preceding quarter.

Data usage and subscriber growth support revenue

MTN Nigeria’s mobile subscriber base increased by 10.9% to 94.7 million from 85.4 million in September 2025.

  • Active data users also increased by 12% to 57.2 million, while average monthly data consumption per active user rose by 16.2% to 15.3GB.
  • The growth in usage contributed to a 30.1% increase in network data traffic, supported by greater smartphone adoption and demand for broadband services.
  • Smartphones on the network increased by 12.4%, bringing smartphone penetration to 66%.

The company also disclosed that fibre-to-the-home services now account for approximately 13% of total data traffic, reflecting the growing contribution of home broadband to its operations.

Operating efficiency strengthens profitability

MTN Nigeria’s operating expenses increased by 8.5% to N1.42 trillion from N1.31 trillion, significantly below the 23.6% growth in revenue.

  • Management attributed the slower increase in expenses to its cost-efficiency programme, a stronger naira and the benefit of VAT input claims, which helped contain higher energy-related costs.

Consequently, EBITDA increased by 36.8% to N2.62 trillion from N1.92 trillion, while EBITDA margin improved to 56.9% from 51.4%.

  • Operating profit rose by 38.2% to N1.99 trillion, despite depreciation and amortisation expenses increasing by 32.6% to N631.9 billion, reflecting continued investment in network infrastructure.

On funding, finance costs declined to N359.58 billion from N404.18 billion, while finance income increased to N82.58 billion from N33.26 billion.

  • As a result, net finance costs reduced by 25.3% to N277.00 billion from N370.92 billion.

The company also recorded a net foreign exchange gain of N80.14 billion, compared with N55.58 billion in the corresponding period of 2025, further supporting pre-tax earnings.

Third-quarter performance

For the three months ended September 30, 2026, revenue increased by 19.7% to N1.62 trillion from N1.35 trillion in Q3 2025.

  • Data revenue rose by 31.4% to N981.4 billion, while voice revenue increased by 9.3% to N503.3 billion.
  • Quarterly EBITDA increased by 32.8% to N951 billion from N716 billion, while EBITDA margin expanded to 58.7% from 52.9%.
  • Pre-tax profit rose by 39.6% to N704.1 billion from N504.2 billion, while profit after tax increased by 36.5% to N457.6 billion from N335.3 billion.
  • Management also disclosed that service revenue increased by 8.4% quarter-on-quarter, indicating an acceleration in growth following the slower performance recorded in the second quarter.

Balance sheet and cash flow

MTN Nigeria’s total assets increased by 10.6% to N5.97 trillion as of September 30, 2026, from N5.40 trillion at the end of December 2025.

  • The increase was driven largely by higher non-current assets, particularly property, plant and equipment, which rose to N2.33 trillion from N1.85 trillion, reflecting continued network investments.
  • Current investments also increased to N330.75 billion from N162.26 billion, while deferred tax assets rose to N139.08 billion from N93.63 billion.

On the funding side, total borrowings declined by 36.8% to N333.32 billion from N527.67 billion, while shareholders’ equity increased by 53.8% to N843.91 billion from N548.71 billion, supported by retained earnings.

  • The group ended September with a net cash position of N47.7 billion, compared with N104.8 billion at December 2025.

Cash flow performance remained strong, with net cash generated from operating activities increasing to N2.31 trillion from N1.56 trillion in the corresponding period of 2025.

  • But overall, cash and cash equivalents declined to N380.99 billion from N632.50 billion at the end of 2025.

Nevertheless, MTN Nigeria reported free cash flow of N1.17 trillion, up 57.5% from N742.6 billion, highlighting its stronger cash-generating capacity.

Market reaction

MTN Nigeria’s share price increased by 3.03% to close at N850.00 on Friday, October 30, 2026, from N825.00 in the preceding trading session.

The stock has gained 66.34% year-to-date from its opening price of N511 at the beginning of 2026. Month-to-date, the stock recorded a gain of 0.95%, according to the supplied market data.

At the closing price of N850, MTN Nigeria’s market capitalisation stood at N17.85 trillion, ranking it the 3rd largest companies listed on the Nigerian Exchange.