MTN Nigeria, the country's largest telecom operator, has reported a revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024. This significant growth was largely driven by a 50% tariff increase implemented in February 2025, which is expected to have a more substantial impact on revenue in subsequent quarters.

The company's unaudited Q1 2025 financial results show a dramatic turnaround, with a profit after tax of N133.7 billion, compared to a loss of N392.7 billion in the same period last year. This rebound signals a continued recovery from the financial distress triggered by the 2023 naira devaluation, which severely impacted profitability due to massive foreign exchange losses.

MTN Nigeria has now recorded three consecutive quarters of profitability since June 2024, following a turbulent period marked by a N740 billion FX loss last year. In Q1 2025, the company managed to cut its realised FX losses by 66% and posted an unrealised foreign exchange gain of N55 billion, partly offsetting the N476.8 billion loss from the previous year.

The tariff increase, which uniformly applies to voice calls, SMS, and data plans, was implemented in mid-February 2025, with the majority of adjustments taking effect in March. According to MTN Nigeria CEO, Karl Toriola, early indicators suggest continued resilience in customer demand, aided by targeted customer value management (CVM) initiatives.

Operational profitability also improved significantly, with EBITDA rising by 65.9%, and the EBITDA margin expanding by 7.2 percentage points to 46.6%. This key metric has responded positively to investor sentiment, with MTN's share price rebounding from last year's 24.24% year-to-date loss. As of April 29, 2025, the stock was trading at N240 per share, reflecting a 20% YTD gain.

On the subscriber front, MTN added 3.2 million new users in Q1 2025, bringing its total subscriber base to 84.1 million. Active data users also grew by 2.6 million, pushing the total to 50.3 million and supporting a 46.4% year-on-year growth in data traffic.

The company's recent partnership with Airtel Africa on a passive infrastructure-sharing initiative in Nigeria is expected to improve network coverage and operational efficiency. This collaboration is a significant step towards enhancing the overall telecom experience in the country.

The strong performance of MTN Nigeria in Q1 2025 is a testament to the company's resilience and adaptability in the face of challenging market conditions. As the telecom industry continues to evolve, MTN's focus on innovation, customer value, and operational efficiency will be crucial in maintaining its market leadership position.