MTN Nigeria Plc has surged past the ₦10 trillion market capitalization mark following an impressive earnings release that boosted investor confidence and increased trading activity in the telecom giant’s stock.
This development places MTN Nigeria at the forefront as the highest-valued company on the Nigerian Exchange (NGX), bolstered by its strong performance in the first half (H1) of 2025 and regulatory support for tariff hikes across the industry.
The telecom firm’s stock closed at ₦480 per share last Friday, rising from ₦472 at the end of July. Market data showed 1.485 million MTN Nigeria shares were traded, valued at approximately ₦714 million.
After a challenging 2024, MTN Nigeria recorded a sharp turnaround, reporting a profit of ₦414.86 billion for H1 2025, up from a loss of ₦519.06 billion in the previous year. The robust earnings were driven by strong revenue growth attributed to price increases, expanding data usage, and customer acquisition.
Service revenue rose by 54.6% year-on-year to ₦2.38 trillion, with the data segment contributing 51.7%—up from 47.2% a year earlier. MTN reported that data subscribers grew by 11.8% to 51 million, while average data consumption per user rose 26.3% to 13.26GB.
Voice services also contributed to revenue growth, supported by an expanding user base and customer retention strategies. Meanwhile, operating expenses climbed 18.7% to ₦1.18 trillion, but this increase lagged behind revenue growth, preserving operating margins. Cost savings from new tower lease agreements and a stable exchange rate further supported operational efficiency.
However, net finance costs rose 57.8% to ₦265.33 billion, driven by higher interest expenses and reduced finance income. Notably, foreign exchange losses stood at ₦5.23 billion—significantly lower than the ₦887.68 billion FX loss recorded in H1 2024, reflecting a more stable currency environment.
MTN’s profit before tax hit ₦622.26 billion, compared to a negative figure of ₦751.29 billion in the corresponding period last year. Consequently, earnings per share (EPS) rose to ₦19.8, reversing last year’s loss per share.
Shareholders’ equity also showed marked improvement, with the company narrowing its negative balance from -₦324.57 billion in Q1 2025 to -₦42.45 billion in H1 2025. This is a significant recovery from the -₦458 billion recorded at the end of 2024.
Analysts at CardinalStone Securities have projected that this turnaround could lead to dividend payouts and a potential public share offering. MTN Group President, Ralph Mupita, had previously stated the group’s intention to reduce its shareholding in MTN Nigeria once the company returned to positive equity and resumed dividend payments.
