MTN Nigeria’s Operating Cash Flow Hits N956bn, Highest in a Decade, as Profit Soars 180%
MTN Nigeria Communications Plc has posted its strongest cash flow performance in a decade, with cash generated from operations rising to N955.6 billion in the first half of 2025, up 79 percent from N533.2 billion in the same period last year. The performance, revealed in the telecom giant’s latest unaudited H1 2025 results, underscores its ability to generate real cash from core services such as voice, data, and digital offerings despite Nigeria’s challenging macroeconomic environment.
Analysts at CardinalStone attributed the surge to stronger EBITDA, improved cash collections, and resilience in operations despite rising finance costs. They noted that MTN is well-positioned to sustain its robust free cash flow in the second half of the year, supported by moderating capital expenditure after heavy frontloading in H1. This financial flexibility, analysts added, gives the company room to accelerate its 5G rollout, expand network infrastructure, and manage debt repayments without heavy reliance on external borrowing.
Despite heavy capital expenditure of N642.8 billion and debt repayments totaling over N340 billion, MTN still managed a net increase in cash to N257.6 billion by June 2025. Analysts say this reinforces its strong underlying cash generation capacity and signals a potential return to dividend payments in the current financial year, after two years of suspension due to negative equity. MTN’s equity position, which stood at negative N42.5 billion in H1 2025, is projected to turn positive by Q3.
The telco also delivered a major earnings rebound, with net income surging 180 percent to N414.9 billion, reversing the record N519 billion loss it suffered in H1 2024. Revenue grew 54 percent to N2.38 trillion, supported by tariff adjustments and more stable currency movements that helped reduce foreign exchange losses to just N5.2 billion, compared with N887.7 billion a year earlier. Analysts forecast FX losses for the full year will not exceed N7.6 billion, paving the way for a historic N1 trillion net profit in 2025.
This sharp turnaround, driven by improved cash flow, profitability, and lower FX pressures, positions MTN Nigeria as one of the strongest-performing corporates in the country this year. For investors, the prospect of dividend resumption and record earnings growth enhances MTN’s attractiveness, while for Nigeria’s telecom industry, the company’s financial stability strengthens its capacity to drive network expansion, digital inclusion, and 5G penetration nationwide.
Source: Business Day