Telecommunications giant MTN Nigeria has ramped up its capital expenditure (capex), spending a staggering N202.4 billion in the first quarter of 2025, representing a 159% increase year-on-year, as it continues to fast-track investments in infrastructure to improve network capacity and service delivery nationwide.
The telco’s aggressive investment push came alongside a return to profitability, posting a profit after tax of N133.7 billion, compared to a N392.7 billion loss recorded in Q1 2024.
According to its unaudited financial report for the period ending 31 March 2025, total capex including right-of-use assets reached N436.4 billion, up 142.8% from the previous year.
Okay.ng understands that the capex growth was driven by efforts to improve user experience, expand 4G and 5G infrastructure, and support growing demand for data, voice, fintech, and digital services.
Speaking on the company’s performance, Karl Toriola, CEO of MTN Nigeria, 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. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year.”
MTN’s service revenue grew by 40.5% year-on-year to N1.05 trillion, supported by strong double-digit growth in data (+51.5%) and fintech (+57.9%).
Its subscriber base grew to 84.1 million, with 50.3 million active data users and 2.1 million MoMo wallets reported as of March 2025.
MTN also benefited from a sharp drop in forex-related expenses. With a more stable exchange rate environment, foreign exchange losses fell by 99.2%, further boosting bottom-line recovery.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 65.9% to N492.7 billion, with the EBITDA margin expanding to 46.6%.
Despite the high level of capex, MTN recorded a positive free cash flow of N209.9 billion, although this was 54.8% lower than the previous year due to increased investment outflows and a high base effect from 2024.
Smartphone penetration increased to 60.7%, helped by the addition of 4 million new smartphones to the network, while 4G population coverage improved to 82.7%.
MTN expects to maintain high investment intensity through the year, with a capex-to-revenue ratio projected in the upper teens, focused on fibre expansion, 5G rollout, and MoMo adoption growth.
