MTN Nigeria reported stronger nine-month results for 2026, with third-quarter service revenue increasing 19.7% year over year and accelerating to 21.6% in September. Profit after tax rose 55.3% to approximately NGN 1.2 trillion, while free cash flow climbed 57.5% to the same level.
The company said the business regained momentum after a temporary slowdown in the second quarter. Service revenue increased 8.4% sequentially, with data revenue up 12.1% from Q2 and contributing more than 80% of the quarterly increase. Voice revenue also grew 9.3%, supported by subscriber gains and targeted offers.
MTN Nigeria attributed the earlier weakness to a high comparison base following tariff adjustments and the suspension of its airtime and data credit service between April and June. Management said the third quarter showed a clear rebound and that much of the previous market-share pressure had been recovered.
Profitability improved alongside revenue. The EBITDA margin reached 58.7% in the third quarter and 56.9% for the first nine months, an increase of 5.5 percentage points. Management linked the improvement to cost discipline, its expense-efficiency program, a stronger naira and VAT input claims. The nine-month EBITDA growth rate was 36.8%, while the profit-after-tax margin stood at 25.3%.
Cash generation remained strong despite higher network investment and dividend payments. Capital expenditure rose 14.2% to NGN 864.8 billion, with capital intensity at 18.7%. The company said it paid about NGN 860.8 billion in final and interim dividends. Total borrowings fell 36.8% from December to NGN 333.3 billion, leaving a net cash position of NGN 47.7 billion at September 30, 2026.
Data usage and connectivity continued to support the operating performance. MTN Nigeria added 2.5 million subscribers during the quarter, bringing its RGS 90 customer base to 94.7 million. Average monthly data usage per active subscriber reached 17.2 gigabytes in Q3, while smartphone adoption continued to increase. Home broadband was also identified as an increasingly important contributor within the data business.
The fintech division showed underlying progress after the airtime and data credit service disruption. Core fintech revenue, excluding commissions from that service, more than doubled, driven mainly by higher floating income and larger balances. Transaction volumes rose 69% from Q2 after the MoMo PSB business moved to the Alipay+ platform in August. The airtime and data credit service returned under a multi-partner model, with revenue up 78.5% sequentially, and management expects activity to return to normal levels by the end of November.
MTN Nigeria kept its medium-term framework unchanged. It continues to target average service revenue growth of at least the low-20% range, EBITDA margins in the mid-to-high 50% range and capital intensity in the high teens. Management expects the fourth quarter to benefit from easier comparisons, the normalization of the airtime and data credit service and lower diesel costs, with fourth-quarter pricing set below NGN 1,700 per liter compared with levels below NGN 1,800 in Q3.
The company’s priorities include completing the migration of legacy wallet users to Alipay+, expanding fiber-to-the-home and fixed wireless broadband, developing digital and enterprise services, and pursuing the structural separation of the fintech business. The separation and planned microfinance initiatives remain subject to regulatory approval.
Executives identified smartphone affordability, broadband and fintech competition, regulatory uncertainty, energy costs and inflation as key risks. During the call, management said Starlink Direct to Cell represented a long-term consideration rather than an immediate threat, citing bandwidth, cost and quality limitations, while pointing to MTN Nigeria’s 5G and fiber networks as strengths in urban markets.
Sources: Investing.com News.