MTN Nigeria Reports Significant Increase in Free Cash Flow for Q1 2026
MTN Nigeria Communications Plc demonstrated robust cash generation in the first quarter of 2026, with free cash flow rising by 55.6% to N326.5 billion, compared to N209.9 billion during the same period last year. This surge is attributed to heightened demand for data services and enhanced operational efficiencies, reinforcing the company’s financial standing amid ongoing challenges.
The company’s unaudited financial results, released on Thursday, highlighted this remarkable growth in free cash flow, which is calculated as EBITDA minus cash-related capital expenditures, changes in working capital, income taxes, and interest expenses. This uptick reflects MTN Nigeria’s improved operational leverage and its commitment to rigorous cost management, even as investments in network infrastructure accelerate.
During the quarter, MTN Nigeria added 2.3 million revenue-generating subscribers, bringing its total to 89.5 million—a 6.5% increase from Q1 2025. The count of active data subscribers rose by 9.5%, reaching 55 million, up from 50.3 million year-on-year, underscoring the growing reliance on digital connectivity.
The company’s services revenue soared by 41.8%, amounting to approximately N1.49 trillion in Q1 2026 compared to N1.5 trillion in Q1 2025. Notably, data revenue emerged as the primary growth catalyst, increasing by 56.2% year-on-year, fueled by rising consumption. Data traffic itself climbed by 22.9%, with average data usage per subscriber spiking by 12.3% to 14.3 GB. Furthermore, the smartphone penetration rate increased by 5.5 percentage points, now at 66.2%.
EBITDA saw a remarkable increase of 68.1%, reaching NGN 828.3 billion, up from NGN 492.7 billion during the same quarter last year. The EBITDA margin improved by 8.7 percentage points to 55.3%, demonstrating effective operational leverage despite the escalation of energy costs toward the quarter’s end.
MTN’s Chief Executive Officer, Carl Triola, attributed this impressive performance to disciplined execution across various business operations. He highlighted the company’s ability to maintain commercial momentum and prudent cost management while accelerating network investments in a rapidly evolving operational landscape.
Capital expenditure (excluding right-of-use assets) surged by 92.8%, moving from N202.4 billion in Q1 2025 to N390.3 billion in Q1 2026. A significant portion of this expenditure was directed toward expanding network capacity, particularly in fiber-to-the-home (FTTH) and fixed wireless access, strategically positioned to exploit residential broadband opportunities. Profit after tax rose remarkably by 165.9%, totaling NGN 355.5 billion compared to NGN 133.7 billion in Q1 2025, with earnings per share more than doubling to N16.95 from N6.37.
MTN ended the quarter with a favorable net cash position of N129 billion, a rise from N104.8 billion recorded at the end of December 2025. Additionally, the company fully repaid its outstanding foreign currency loans during the same period, effectively mitigating its exposure to foreign exchange fluctuations.
Looking ahead, MTN Nigeria remains focused on continuing its structural separation of the fintech business, planning to offload a 60% interest in MoMo Payment Service Bank and Y’ello Digital Financial Services to MTN Group Fintech Holdings while maintaining a 40% ownership stake. The company anticipates a capital injection of NOK 152.1 billion from this transaction.
As the company navigates regulatory developments, it has suspended certain services to comply with updated lending rules. However, MTN does not foresee any substantial financial impact as customer recharging patterns are expected to stabilize. The company continues to project a medium-term service revenue growth of at least low-20% and an EBITDA margin in the mid-to-high 50% range, with anticipated easing in capital expenditure intensity as the fiscal year progresses.
MTN Nigeria remains at the forefront of the Nigerian mobile market, increasingly catering to the rising demand for reliable and speedy connectivity, thus reinforcing its leadership amidst a growing digital economy.
