MTN Nigeria has released its unaudited financial results for the Q1 ended March 31, 2026, reporting a pre-tax profit of N546.421 billion, up 169.64% YoY.
The Q1 2026 profit is the 2nd best quarterly profit since 2019; 4% lower than the Q4 2025 pre-tax profit of N569.588 billion.
The profit growth was driven by an impressive revenue growth, which surged by 42% YoY to N1,498 trillion, the highest quarterly revenue since 2019
Earnings per share increased by 166% to N16.95, which is nearly 30% of the 2025 full-year earnings per share.
When annualized, it is likely to exceed the 2025 figure by about 30%.
This suggests that, if MTNN sustains Q1 performance, it is likely to hit earnings per share of N67.80
Key highlights (Q1 2026 vs Q1 2025)
- Revenue: N1.498 trillion, +41.62% YoY
- Direct networking operating cost: N317.893 billion, -5.77% YoY
- Finance cost: N143.269 billion; +0.98%
- Net foreign exchange gain: N33.304 billion, vs loss of N5.525 billion
- Profit after tax: N355.501 billion; +165.93% YoY
- Total assets: N5.849 trillion, +8.25%
- Cash and cash equivalents: N506.716 billion; -19.89% YoY
- Shareholders’ funds: N903.940 billion; 64.74%
- Retained earnings: N755.689 billion; 88.73%
- Total subscribers: 89.5 million; +6.5%
- Active data users: 55 million; 9.5%
- Capex excluding leases: N390.3 billion; +92.8%
What is driving the numbers:
MTN Nigeria believes that cost discipline buoyed the Q1 2026 performance. Commenting on the results, CEO Karl Toriola stated:
- “Despite a challenging cost environment, strong operational discipline kept operating expenses (opex) well contained, delivering meaningful operating leverage. EBITDA increased by 68.1%, and EBITDA margin expanded by 8.7 percentage points to 55.3%, in line with our medium-term guidance of a mid-to-high 50% margin range. As a result, PBT rose by 169.6% to N546.4 billion”
That said, a cursory review of the financial statements and earnings shows that major drivers of the solid performance include strong revenue growth, almost flat growth in finance cost, foreign exchange gain against foreign exchange loss, expansion, etc.
The communication giant posted revenue of N1.49 trillion, the highest since 2019. This actually helped the bottom line. This is attributed to strong underlying demand.
- Data revenue increased by 56. 2%, supported by a 9.5% increase in active data subscribers, a 5.5pp rise in smartphone penetration to 66.2% and higher customer usage.
- Data traffic grew by 22.9%, while average usage per subscriber rose by 12.3% to 14.3GB, highlighting the continued demand.
- Voice revenue grew by 22.5%, supported by subscriber growth and targeted customer value management initiatives.
- Digital revenue increased by 12.1%, driven by mobile advertising and rich media services.
- Enterprise revenue declined by 5.9%, primarily due to a higher comparative base after last year’s service bundle optimization.
- Fintech revenue increased by 77.9%. Excluding Xtratime, core fintech revenue increased by 190.6%, supported by higher deposit balances, stronger adoption of advanced services and increased interest income
On cost, the cost of sales increased by 25.0%, well below service revenue growth, supporting a stronger gross margin profile.
This supported robust EBITDA growth of 68.1% to N828.3 billion, with EBITDA margin expanding by 8.7pp to 55.3%.
However, operating expenses grew by 16.19%, due to higher energy prices late in the quarter.
Balance sheet
Total assets grew by 8.25%, now standing at N5.849 trillion.
- Excluding leases, capex increased by 92.8% (capex intensity: 26. 0%), driven by accelerated investment to support data-traffic growth and improve service quality.
On the liability side, total borrowings decreased by 25% to N315 billion, primarily due to a N154 billion repayment as the company continues to reduce its exposure, which in turn helps moderate finance costs
What to know
MTN Nigeria’s Q1 2026 performance highlights continued strong growth, following a robust 2025 full-year performance that marked the company’s return to dividend payouts, with a total dividend of N20 per share after the last payment in 2023.
- Given the projected higher earnings per share for 2026, expectations for a higher dividend are reasonable.
The company expressed confidence in the structural demand drivers supporting its business, including rising data adoption, increasing smartphone penetration, and the ongoing acceleration of digitalization across Nigeria.
However, it remains mindful of the dynamic environment and will continue monitoring factors such as energy price volatility.
- Assuming an average Lagos ex-depot diesel price of N2,000 in H2 2026, with Q1 and Q2 costs already locked in, MTN estimates a 1.8–2.0 percentage point impact on full-year EBITDA margin.
- Within its medium-term guidance framework, the company maintains a target of “at least low 20%” for average service revenue growth, as the impact of price adjustments becomes fully annualized by Q2 2026.
MTN also said that it is keeping its mid-to-high 50% EBITDA margin target range.
This guidance is based on current macroeconomic assumptions, including average inflation remaining in the mid-teens and exchange rates in the N1,400–1,700/US$ range.”
Share price performance
MTNN shares closed yesterday, April 30, 2026, at N870, gaining over 6% from its previous day’s closing price.
YtD it has gained 70.6% and is still the most capitalized stock on the NGX with a market capitalization of N18.3 trillion.
