MTN has invested N202.4 billion in Q1 2025, a 159 per cent increase year-on-year, to upgrade and expand network infrastructure and enhance service quality and capacity.

This is contained in the unaudited Q1 2025 results released Tuesday night, which showed that the telecoms firm has equally returned to profitability.

Precisely, MTN achieved a profit after tax of N133.7 billion, marking a significant turnaround from a loss of N392.7 billion in Q1 2024. It added 3.2 million subscribers in Q1 2025, bringing the total to 84.1 million, an 8.2 per cent increase year-on-year.

Expectedly active data users rose by 13 per cent to 50.3 million, with data traffic increasing by 46.4 per cent year-on-year. Service revenue grew by 40.5 per cent to N1.06 trillion, driven by increased demand for data and voice services.

The firm’s EBITDA increased by 65.9 per cent to N492.7 billion, with the margin expanding by 7.2 percentage points to 46.6 per cent.

MTN Nigeria’s Chief Executive Officer, Karl Toriola, said: “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services.”

Toriola said that MTN’s Q1 results have placed it on the path to restoring profitability and achieving a positive net asset position within the current financial year while increasing its investments to improve network and service quality.

The CEO noted that recent price adjustments have helped the telecom accelerate network investments with a focus on boosting capacity and improving user experience. He also noted that while the company has adjusted its prices, it doesn’t expect “the full impact on usage and revenue is expected from Q2, early indicators suggest continued resilience in customer demand, aided by our targeted CVM initiatives”.

Despite these wins, challenges remain. Retained earnings still stand at a negative N607 billion ($466.9 million), which might affect dividend resumption. Inflation is still an issue to contend with at 28.3 per cent, squeezing margins, and a pending class-action lawsuit on data mismanagement could pose reputational risks.

Analysts forecast a sharp recovery for MTN Nigeria, powered by strategic tariff increases, network expansion, and operational discipline. The company aimed for mid-40 per cent growth in service revenue and EBITDA margins through the remainder of 2025. Key to this ambition will be the continued rollout of 5G infrastructure, improved forex liquidity, and the execution of the public offering.