MTN Nigeria inches closer to recovery as data boom, cost cuts drive profit surge

MTN Nigeria is on the brink of reversing two years of retained losses, following a strong financial performance in the first half of 2025.

With a pre-tax profit of N622.24 billion and net profit of N367.44 billion, the telecoms giant has dramatically narrowed its retained losses from N607.47 billion at the end of 2024 to N192.89 billion as of June 2025.

If the current momentum continues—with quarterly after-tax profits averaging N183.72 billion—MTN may fully erase its retained losses by the third quarter of 2025, restoring shareholders’ equity, which remains negative at N-42.45 billion, to positive territory for the first time since 2022.

In the first half of 2025, data revenue surged 69 per cent year-on-year to N1.228 trillion, now accounting for over 50 per cent of total revenue, which stood at N2.37 trillion.

With this trajectory, analysts believe MTN could achieve a record N4 trillion in total revenue by year-end, especially with room for further increases in ARPU (Average Revenue Per User).

Last year, MTN was battered by a N925 billion net forex loss, nearly wiping out its bottom line. However, the tide has turned.

In the second quarter of 2025, the company posted a N295 million net forex gain, bringing total first half net forex losses to just N5.23 billion, a stark contrast to N887.68 billion in H1 2024.

READ ALSO: MTN to deploy AI-powered monitoring to curb cable vandalism

This improvement is largely due to a stabilizing naira and reduced volatility in the official Investors & Exporters (I&E) forex window. If this trend holds, MTN’s exposure to FX-related shocks could remain muted throughout 2025.

The company has also implemented cost-cutting initiatives, including renegotiating tower lease agreements and tightening infrastructure spending. These measures have helped boost profitability, with net profit margin hitting 36.3% in Q2 and averaging 29.9% in H1.

If the company delivers N1.5 trillion in revenue in the second half of the year, it could end 2025 with ₦400–₦450 billion in net profit, a potential game-changer for investor sentiment.

Despite the strong H1 showing, MTN Nigeria’s full recovery is not yet complete. Its equity remains in negative territory, and the retained losses have not fully disappeared.

However, the company’s fundamentals are strengthening rapidly, buoyed by operational efficiency, digital transformation, and revenue diversification.

Management Optimistic About H2 Prospects

MTN’s management remains upbeat, stating in its H1 report:

“As we progress into the second half of 2025, we are constructive on our growth outlook and the opportunities within our evolving operating environment.

We anticipate sustained momentum in service revenue, supported by usage growth and market expansion. Our commercial strategy remains focused on deepening engagement, enhancing experience, and broadening access.”

Analysts agree that if macroeconomic conditions remain stable and MTN maintains its current trajectory, 2025 could be the telecom giant’s long-awaited comeback year—not just a period of survival, but one of renewed strength and shareholder value creation.