MTN Nigeria Posts N1 Trillion Revenue in Q1 2025: A Deep Dive into Segment Performance

MTN Nigeria Communications Plc, the country’s leading telecommunications operator, has reported a landmark revenue of N1.058 trillion for the first quarter of 2025, marking a 40.5% year-on-year increase from N752.99 billion in Q1 2024. This stellar performance, driven by robust growth across data, voice, digital, and fintech segments, underscores MTN’s resilience in navigating Nigeria’s challenging economic landscape and its strategic execution under the Ambition 2025 roadmap. Below is a comprehensive analysis of the company’s Q1 2025 financial and operational performance, with a focus on key revenue streams and their implications for the future.

Revenue Breakdown: Data Leads, Digital Soars

Data Revenue: N529 Billion, +51.5% YoY

Data services emerged as the cornerstone of MTN Nigeria’s revenue, contributing approximately 50% of the total at N529 billion, a 51.5% increase from Q1 2024. This growth was propelled by a 13% rise in active data users, reaching 50.3 million (up by 2.6 million), and a 46.4% surge in data traffic. The proliferation of smartphones, increasing demand for high-speed internet, and MTN’s aggressive network expansion—particularly in 4G and 5G—have fueled this performance.

A key factor was the tariff hike implemented late in Q1, which boosted revenue per user despite its limited immediate impact. Analysts expect the full effect of the tariff adjustment to materialize in Q2, potentially sustaining data revenue growth. MTN’s investments in network infrastructure, including new base stations and fiber optic rollout, have enhanced user experience, positioning the company to capture rising data consumption trends in Nigeria’s youthful, tech-savvy population.

Voice Revenue: N407 Billion, +27.7% YoY

Voice services, the second-largest revenue contributor, generated N407 billion, reflecting a 27.7% year-on-year increase. This growth was driven by an 8.2% expansion in the subscriber base to 84.1 million, with 3.2 million new subscribers added in Q1. Effective customer value management strategies, including targeted promotions and reactivation campaigns, bolstered voice usage.

MTN’s rural connectivity initiatives have also played a pivotal role, tapping into underserved markets to drive subscriber growth. The tariff hike further supported revenue, offsetting the declining trend in voice usage as consumers increasingly shift to data-driven communication platforms. Despite this shift, voice remains a critical revenue pillar, highlighting MTN’s ability to balance legacy services with emerging opportunities.

Digital Revenue: N26.1 Billion, +92.1% YoY

The digital segment recorded the highest growth rate at 92.1%, generating N26.1 billion. Though smaller in absolute terms, this segment’s performance reflects MTN’s strategic push into digital services, including rich media, e-commerce platforms, and value-added services like music and gaming. The surge aligns with Nigeria’s growing digital economy and increasing consumer demand for innovative, non-traditional telecom offerings.

MTN’s focus on digital inclusion, coupled with partnerships to enhance content delivery, has driven adoption. The company’s Ambition 2025 strategy emphasizes scaling digital platforms, and Q1’s results signal strong progress. Continued investment in this segment could position MTN as a leader in Nigeria’s digital transformation.

Fintech Revenue: N36 Billion, +57.9% YoY

Fintech revenue grew by 57.9% to N36 billion, driven by robust performance in airtime lending (e.g., Xtratime) and higher float income from mobile money services. However, the active wallet base shrank by 25.7% to 2.1 million, as MTN prioritized high-value customers over sheer volume. This strategic recalibration aims to build a sustainable fintech ecosystem, focusing on quality transactions and financial inclusion.

MTN’s rural penetration strategy, including agent network expansion, has supported fintech growth, particularly in underserved areas. The company’s efforts to integrate mobile money with broader financial services, such as microloans and savings products, are expected to drive future growth, despite the wallet base contraction.

Financial and Operational Highlights

Profitability and Cost Management

MTN Nigeria’s Q1 2025 financials reflect a remarkable recovery from the challenges of 2024, particularly the naira devaluation that eroded profitability. Profit after tax soared to N133.7 billion, a stark contrast to the N392.7 billion loss in Q1 2024. This turnaround was aided by a relatively stable naira (N1,537/$ in Q1 2025) and a significant reduction in foreign exchange losses, which fell to N5.5 billion from N695 billion in Q1 2024.

EBITDA surged by 65.9% to N492.7 billion, with the EBITDA margin expanding by 7.2 percentage points to 46.6%. This improvement reflects disciplined cost management, including renegotiated tower lease agreements that reduced forex exposure. The company’s focus on operational efficiency has bolstered its financial health, positioning it for sustained profitability.

Capital Expenditure and Network Investment

Capital expenditure (capex) surged by 159% to N202.4 billion, underscoring MTN’s commitment to enhancing network capacity and quality. Investments in 4G and 5G infrastructure, as well as rural connectivity, aim to meet rising data demand and improve service reliability. This aggressive capex aligns with MTN’s long-term growth strategy but may pressure short-term cash flows, requiring careful financial management.

Subscriber and Usage Trends

MTN’s total subscriber base grew by 8.2% to 84.1 million, driven by new activations and reactivations. Active data users increased by 13% to 50.3 million, reflecting Nigeria’s growing digital adoption. Data traffic rose by 46.4%, fueled by higher consumption of video streaming, gaming, and enterprise solutions. These trends highlight MTN’s ability to capture market share in a competitive landscape.

Challenges and Outlook

Despite the strong Q1 performance, MTN Nigeria faces challenges. Accumulated losses of N474.1 billion, carried forward from prior years, prevent dividend payments under Nigerian regulations. Analysts project that sustained profitability could clear these losses by year-end, potentially enabling dividends in 2026. However, the company must navigate potential price elasticity from tariff hikes, as higher costs could dampen demand, particularly among price-sensitive customers.

The competitive landscape also poses risks, with rivals like Airtel and Glo intensifying efforts to capture market share. MTN’s ability to maintain its edge will depend on continued innovation, network reliability, and customer-centric offerings.

Looking ahead, MTN Nigeria is well-positioned for growth. The stable macroeconomic environment, coupled with its strategic investments in data, digital, and fintech, supports a positive outlook. The company’s focus on rural expansion and digital inclusion aligns with Nigeria’s economic diversification goals, while its robust financial performance signals resilience. Analysts anticipate that MTN will sustain its revenue growth trajectory, with data and digital services driving the next phase of expansion.

Conclusion

MTN Nigeria’s Q1 2025 results mark a significant milestone, with N1.058 trillion in revenue reflecting strong execution across its core segments. Data remains the growth engine, while voice, digital, and fintech contribute to a diversified revenue base. Strategic investments, tariff adjustments, and a favorable economic environment have restored profitability, positioning MTN for long-term success. As the company addresses residual challenges, including accumulated losses and competitive pressures, its focus on innovation and customer value will be critical to sustaining its leadership in Nigeria’s telecommunications market.

For further details on MTN Nigeria’s performance, visit MTN Nigeria’s Investor Relations page.