MTN NIGERIA PROFIT RISES AS DATA STAYS KING

MTN Nigeria recorded higher revenue and profit in the first nine months of 2026, as growing demand for mobile data continued to drive its business. The company's latest results show that data revenue grew faster than its other major service segments, reinforcing the importance of internet usage to its earnings.

For the nine months ended September 30, 2026, MTN Nigeria reported total revenue of ₦4.61 trillion, up 23.6% from ₦3.73 trillion in the corresponding period of 2025.

Profit before tax increased by 59.4% to ₦1.80 trillion, compared with ₦1.13 trillion a year earlier. Profit after tax also rose by 55.3% to ₦1.17 trillion, according to the company's earnings release dated October 30, 2026.

The difference between the two profit figures is important. Although profit before tax grew by 59.4%, the increase in tax expense reduced the growth recorded after tax.

DATA LEADS REVENUE GROWTH

Data remained MTN Nigeria's largest service revenue contributor. Revenue from the segment increased by 35.8% to ₦2.68 trillion, compared with ₦1.98 trillion in the same period of 2025. It accounted for approximately 58.5% of total service revenue.

The growth was supported by increased customer numbers and higher usage. MTN's total mobile subscribers rose by 10.9% to 94.7 million, while active data users increased by 12% to 57.2 million.

Average monthly data consumption per active user also climbed by 16.2% to 15.3GB. This contributed to a 30.1% increase in network data traffic.

MTN's management described the growth as increasingly volume-led, driven by more subscribers and higher data consumption. This provides the company's explanation for the expansion, although its results do not separately quantify the contribution of usage, pricing changes and shifts in customer spending.

Other service segments also recorded growth. Voice revenue increased by 11.1% to ₦1.50 trillion, while digital revenue rose by 24% to ₦88.3 billion. Fintech revenue moved in the opposite direction, declining by 25.9% to ₦97.5 billion. MTN attributed the decline partly to the suspension of its airtime and data credit service between April and June, before its resumption under a multi-partner model.

HIGHER COSTS, BUT STRONGER PROFITABILITY

MTN's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 36.8% to ₦2.62 trillion. Its EBITDA margin improved by 5.5 percentage points, from 51.4% to 56.9%, while operating profit rose by 38.2% to ₦1.99 trillion.

The company said operating expenses increased by 8.5%, below revenue growth. It attributed this performance to its cost-efficiency programme, the benefit of a stronger naira and VAT input claims, which helped contain higher operating costs.

However, tax expense increased by 67.6% to ₦630.5 billion, compared with ₦376.3 billion in the corresponding period of 2025. This helps explain why profit after tax grew by 55.3%, slightly below the 59.4% increase in profit before tax.

WHAT THE RESULTS MEAN FOR SUBSCRIBERS AND INVESTORS

For subscribers, the figures highlight how central data has become to MTN's business. Average monthly usage of 15.3GB per active data user means customers are relying increasingly on mobile internet, while the 30.1% increase in network traffic points to greater demand on the company's infrastructure.

MTN increased capital expenditure, excluding leases, by 14.2% to ₦864.8 billion during the period. It identified network coverage, capacity and service quality as priorities for this investment. Its fibre-to-the-home business now carries approximately 13% of total data traffic, helping ease pressure on the mobile network.

The practical question for subscribers is whether this investment will translate into more reliable connections and wider coverage as demand grows. Higher network traffic makes capacity and service quality important measures to watch, alongside the company's financial performance.

For investors, MTN reaffirmed its guidance for average service revenue growth in at least the low-20% range and an EBITDA margin in the mid-to-high 50% range. The company also expects its airtime and data credit service to recover to expected levels by the end of November 2026.

These targets and the expected recovery provide concrete measures against which investors can assess the company's next results. They will also be watching the proposed fintech separation, which remains subject to regulatory approvals.

MTN's nine-month results show that data is doing much of the work behind its earnings growth. Its next challenge is to sustain that performance while expanding network capacity and meeting the service expectations of a growing customer base.