MTN Nigeria Communications Plc has hit record N1.09 trillion profit before tax of for the first half of 2026, representing a 75.4% year-on-year increase, its highest half year performance driven by strong data demand, improved operating efficiency and lower borrowing levels boosted earnings.

The telecommunications giant also recorded a 25.9% increase in its revenue to N2.99 trillion despite a challenging macroeconomic environment, according to its unaudited financial statements for the six months ended June 30, 2026, filed with the Nigerian Exchange (NGX) on Thursday, July 30.

Profit after tax also rose sharply by 70.6% to N707.5 billion. As a result, the Board of Directors has approved an interim dividend of N26 per share, payable on September 7, 2026, to shareholders on the register as of August 20, 2026.

The company’s balance sheet also strengthened during the period, with shareholders’ equity rising 69.6% to N930.6 billion, while earnings per share increased 70.6% to N33.76.

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Key highlights (H1 2026 vs H1 2025)

  • Revenue: N2.99 trillion, up 25.9% YoY
  • Operating profit: N1.27 trillion, up 41.9%
  • Profit before tax: N1.09 trillion, up 75.4%
  • Profit after tax: N707.5 billion, up 70.6%
  • Earnings per share: N33.76, up 70.6%
  • Shareholders’ equity: N930.6 billion, up 69.6%
  • Net assets per share: N44.41, up 69.6%
  • Interim dividend: N26 per share
  • Total assets: N5.97 trillion, up 10.5% from December 2025
  • Interest-bearing borrowings: N342.6 billion, down 35.1%

CEO commentary:

Commenting on the results, Chief Executive Officer Karl Toriola said the company delivered a strong first-half performance driven by sustained commercial momentum, stronger profitability and robust cash generation despite persistent macroeconomic pressures.

  • “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,” he said.

According to him, the naira’s improved stability during the period helped moderate cost pressures, while MTN added 4.9 million subscribers, lifting its customer base to 92.2 million, with active data users increasing to 55.7 million.

Toriola noted that service revenue grew 25.9%, exceeding the company’s medium-term guidance, while EBITDA margin expanded by 5.3 percentage points to 55.9% despite continued investment in network infrastructure.

He added that MTN invested N620.5 billion in capital expenditure excluding leases during the period, while free cash flow increased 73.9% to N712.7 billion, supporting the Board’s decision to declare an interim dividend of N26 per share.

Driving the numbers:

MTN Nigeria’s H1 2026 performance was driven primarily by continued expansion in data services, which remained the company’s largest revenue source.

  • Data revenue climbed 38.3% to N1.70 trillion, accounting for approximately 56.8% of total revenue and contributing about 76.7% of the overall increase in revenue during the period.
  • Growth was supported by rising data consumption, stronger broadband adoption and increasing demand for digital connectivity.
  • Voice revenue increased 15.0% to N897.1 billion, contributing about 30% of total revenue. Although voice remained the second-largest revenue stream, its slower growth continued to reflect the industry’s transition toward data-led consumption.
  • Combined, data and voice generated N2.60 trillion, representing approximately 86.7% of total H1 revenue, underscoring MTN’s evolution from a traditional voice operator into a broader digital connectivity business.
  • Other revenue lines were mixed. SMS revenue rose 21.9% to N112.7 billion, digital revenue increased 21.1% to N58.7 billion, handset and accessories sales grew 29.3% to N11.0 billion, while other ICT-related revenue rose 8.6% to N23.9 billion.
  • However, interconnect and roaming revenue declined 1.9% to N112.2 billion, while value-added services fell 6.9% to N77.1 billion, partly reflecting softer performance in supplementary digital services.

On profitability, revenue growth significantly outpaced operating costs, with operating profit rising 41.9% to N1.27 trillion. Lower finance costs following a reduction in borrowings also supported earnings, helping profit before tax increase 75.4% despite continued energy cost pressures.

Balance sheet performance:

MTN Nigeria’s balance sheet strengthened further during the first half of 2026, with total assets increasing 10.5% to N5.97 trillion from N5.40 trillion at December 2025.

  • The expansion was driven mainly by continued investment in network infrastructure. Property, plant and equipment increased to N2.22 trillion, while right-of-use assets stood at N1.75 trillion.
  • Together, both asset classes accounted for approximately 66.4% of total assets, highlighting the capital-intensive nature of the telecommunications business.
  • Current investments rose sharply to N415.3 billion from N162.3 billion, while trade receivables declined to N369.5 billion, indicating improved customer collections.
  • Despite the strong earnings, cash and cash equivalents declined to N458.9 billion from N632.5 billion, suggesting significant cash deployment toward capital expenditure, taxes, dividends and financing obligations.
  • Shareholders’ equity increased 69.6% to N930.6 billion, driven largely by retained earnings, which nearly doubled to N793.1 billion.
  • Traditional borrowings declined 35.1% to N342.6 billion, reducing interest-bearing debt exposure.

However, lease liabilities remained elevated at N2.44 trillion, continuing to represent the company’s largest financing obligation.

Current tax liabilities also increased to N640.4 billion, reflecting the stronger earnings performance recorded during the period.

Market reaction:

MTN Nigeria’s shares closed unchanged at N857.10 on Thursday, July 30, indicating investors were yet to fully react to the earnings announcement.

The stock opened the year at N511.00 and has since gained 67.7%, ranking among the stronger-performing large-cap stocks on the Nigerian Exchange in 2026.

The share price has also appreciated by about 19% over the past four weeks, rising from approximately N720 at the beginning of July to N857.10, lifting the company’s market capitalisation further.

With strong earnings growth, expanding profitability, sustained subscriber additions and a higher interim dividend, the market is expected to react positively to the results in subsequent trading sessions.