MTN, Airtel cross N1.18trn combined quarterly EBITDA on data boom

Nigeria’s two biggest telecommunications operators, MTN Nigeria and Airtel Nigeria, posted combined quarterly Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of more than N1.18 trillion in the first quarter of 2026, underscoring a strong profitability rebound powered by rising data consumption, tariff adjustments, expanding smartphone penetration and improving macroeconomic conditions.

The combined EBITDA figure was derived using MTN Nigeria’s Q1 2026 EBITDA of N828 billion and Airtel Nigeria’s quarterly EBITDA of $284 million for the January–March 2026 period.

Airtel’s EBITDA was converted using an average exchange rate of about N1,386/$, the same rate Airtel Africa referenced in its latest results when it highlighted the improvement in naira stability from about N1,529/$ to N1,386/$. At that rate, Airtel Nigeria’s $284 million EBITDA translates to roughly N393.6 billion, bringing the combined quarterly EBITDA of both operators to approximately N1.22 trillion.

Read also: Airtel, MTN drive 2.1m new telecom connections in November gain

The strong earnings performance signals a major recovery for Nigeria’s telecom sector after years of pressure from naira devaluation, high inflation, rising energy costs and foreign exchange losses that weakened profitability across the industry.

Both operators recorded significant growth in revenue, margins, subscriber numbers and data traffic, reinforcing the central role of telecoms in Nigeria’s rapidly expanding digital economy.

MTN Nigeria, which reports its financial year on a calendar basis ending December 31, posted first-quarter 2026 revenue of N1.498 trillion, representing a 41.6 percent increase compared with N1.058 trillion recorded in the corresponding period of 2025.

EBITDA rose to N828 billion in Q1 2026 from N491 billion in Q1 2025, while EBITDA margin improved sharply to 55.3 percent from 46.4 percent a year earlier.

Profit after tax climbed 165.9 percent year-on-year to N355.5 billion from N133.7 billion in the first quarter of 2025.

Airtel Nigeria, whose parent company Airtel Africa reports full-year financial results on a March-ending financial calendar, also delivered strong growth in the quarter ended March 31, 2026.

Airtel Nigeria recorded quarterly revenue of $475 million for the January–March 2026 quarter, representing reported growth of 54.7 per cent and constant currency growth of 40.2 per cent compared with the same period in 2025.

Quarterly EBITDA stood at $284 million, with EBITDA margin rising to 59.7 per cent.

The figures reflect one of the strongest profitability periods recorded in Nigeria’s telecom industry in recent years.

The latest quarterly performance also capped impressive full-year results from both operators, highlighting how data services have become the dominant engine of telecom growth in Africa’s largest market.

MTN Nigeria’s full-year 2025 financial results showed total revenue rose 55.9 percent to N5.203 trillion from N3.337 trillion in 2024.

Service revenue climbed to N5.173 trillion, supported mainly by data growth and fintech expansion.

EBITDA for the full year rose to N2.744 trillion, while EBITDA margin stood at 52.7 percent.

Most significantly, MTN Nigeria returned strongly to profitability with profit after tax of N1.113 trillion after reporting heavy losses in previous periods largely due to foreign exchange pressures triggered by naira devaluation.

Airtel Nigeria also maintained robust momentum throughout its full financial year ended March 2026.

Airtel Africa’s Nigeria mobile services segment recorded revenue of $1.598 billion for the year, representing growth of 52.8 percent on a reported basis and 47.4 percent in constant currency.

Data revenue rose sharply to $820 million, growing 69.8 percent on a reported basis and 63.6 percent in constant currency terms.

Underlying EBITDA reached $924 million, while EBITDA margin expanded to 57.8 percent, up by 785 basis points.

Industry analysts say the results show the Nigerian telecom market is gradually moving away from a volume-driven subscriber race toward a more mature phase centred on data monetisation, digital services and operating efficiency.

Data revenue has now overtaken voice as the primary source of growth for both companies.

MTN Nigeria reported that data revenue increased by 56.2 percent in Q1 2026, driven by rising smartphone adoption, stronger 4G penetration and growing demand for video streaming, cloud services, social media and digital business tools.

Average monthly data usage per subscriber on MTN’s network rose to 14.3 gigabytes, while smartphone penetration climbed to 66.2 percent.

The company’s subscriber base also expanded to 89.5 million customers.

Airtel Nigeria recorded similar momentum.

Monthly data usage per customer increased by 30.8 percent to 11 gigabytes, while smartphone penetration rose to 54.9 percent.

Data customers increased to 31.4 million, helping push Airtel Nigeria’s total subscriber base to 58.3 million, representing 9.4 percent growth.

Combined, MTN Nigeria and Airtel Nigeria now account for nearly 148 million mobile subscribers, strengthening Nigeria’s position as Africa’s biggest telecom market.

Speaking on MTN Nigeria’s Q1 2026 performance, Karl Toriola, the company’s chief executive officer, said the results reflected strong business momentum and reinforced the operator’s commitment to network expansion and customer experience.

“We have just announced our Q1 2026 Results, reflecting strong momentum. Beyond the highlights, what matters most is what these results enable us to do for our customers,” he said.

Toriola disclosed that MTN Nigeria increased capital expenditure significantly during the quarter as part of efforts to improve network quality and expand capacity.

“Our Capex increased by 92.89 percent, from N202.4 billion in Q1 2025 to N390.3 billion in Q1 2026. This reflects our commitment. The more our customers place their trust in us, the more we will continue to invest in the infrastructure that powers their experience,” he said.

According to him, the company remains focused on improving service quality across its network despite the growing pressure created by rapidly increasing data traffic.

“We are mindful of the responsibility of serving 89.5 million subscribers, and we remain focused on improving the quality, reliability, and reach of our network,” Toriola added.

He also thanked regulators, shareholders and customers for supporting the company’s long-term strategy.

“Sincere appreciation to the government and our regulators for creating an enabling environment and to our shareholders for their continued confidence in our long-term strategy and sustained investment in the business.

“To all MTNers at MTN Nigeria who continue to show up and give their best, thank you. And most importantly, to our 89.5 million subscribers, thank you. We are because of you,” he said.

At Airtel Africa, Sunil Taldar, group chief executive officer, described the financial year as one of the company’s strongest operational performances, driven by customer growth, digital adoption and improved efficiencies.

“This year delivered a very strong performance across both operating and financial metrics, reflecting the attractive industry fundamentals and structural growth drivers across our footprint. This backdrop, and the continued success of our strategy contributed to our highest level of customer additions, revenue and EBITDA growth,” Taldar said.

According to him, adoption of artificial intelligence and digital technologies has helped improve customer experience and operational efficiency across Airtel’s markets, including Nigeria.

“Adoption of new digital technologies and AI has been pivotal in unlocking growth opportunities and driving efficiencies, with wide-ranging rollouts enhancing customer experience through site-level network optimisation, streamlined onboarding and accelerating the rollout of myAirtel app,” he said.

Taldar noted that Airtel Africa recorded a 22 percent increase in smartphone customers to 91 million across its operations, contributing to nearly 50 percent growth in data traffic.

He added that Airtel Money continued to expand strongly, with annualised transaction value exceeding $215 billion in the fourth quarter of 2026.

“Airtel Money has made strong progress across digital adoption, ecosystem expansion and product innovation this year. Customer engagement continues to deepen, with app transacting customers up 74 percent and annualised TPV of over $215bn in Q4’26,” he said.

He disclosed that Airtel Africa still plans to proceed with the Airtel Money initial public offering when market conditions improve.

“We remain committed to the listing as market conditions allow, with the intention of undertaking the IPO in the second half of 2026,” he added.

Read also: Airtel bets on Nigeria broadband in chase of MTN

Despite the strong earnings momentum, both operators warned that rising energy costs and heavy infrastructure investments could continue to pressure margins.

Taldar said ongoing geopolitical developments were already increasing energy-related operating expenses.

“The recent increase in energy costs arising from the ongoing geopolitical events will likely lead to increased cost inflation, resulting in EBITDA margin pressure in the near-term,” he said.

Nevertheless, analysts believe the outlook for Nigeria’s telecom sector remains positive as data demand continues to surge across households, businesses and digital platforms.

The latest results show that telecom operators are increasingly benefiting from Nigeria’s digital transformation as consumers spend more time online for entertainment, payments, education, commerce and enterprise connectivity.

The sector is also seeing improved monetisation following tariff adjustments approved in 2025, helping operators recover some of the costs associated with network expansion and inflationary pressures.

For investors and industry observers, the message from the latest earnings season is that Nigeria’s telecom industry is no longer driven mainly by subscriber growth alone, but by the ability of operators to convert rising digital demand into stronger margins, higher cash flow and sustainable profitability.

With combined quarterly EBITDA estimated at about N1.22 trillion after converting Airtel Nigeria’s dollar-denominated earnings into naira, MTN Nigeria and Airtel Nigeria have firmly established data monetisation as the foundation of the sector’s new growth era.