Earnings release
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MTN Nigeria Communications Plc Financial results for the half year ended 30 June 2026 Sensitivity: Public Financial results for the nine months ended 30 September 2026 MTN Nigeria Communications Plc
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 1 | Page Financial results for the nine months ended 30 September 2026 Strong nine -month performance; guidance reaffirmed Lagos | Nigeria: 30 October 2026 MTN Nigeria Communications Plc announces the Group financial results for the nine months ended 30 September 2026. Salient points Operational • Total subscribers up 10.9% to 94.7 million • Active data users up 12.0% to 57.2 million Financial • Service revenue up 23.7% to N4.6 trillion (Q3 2026: 19.7%) • EBITDA up 36.8% to N2.6 trillion • EBITDA margin up 5.5pp to 56.9% (Q3 2026: 58.7%) • PAT up 55.3% to N1.2 trillion with PAT margin expanding by 5.1pp to 25.3%. • EPS up 55.3% to N55.6 • Capex, excluding leases, up by 14.2% to N864.8 billion with a capex intensity of 18.7% • Free cash flow of N1.2 trillion, up 57.5%, reflecting strong cash generation Medium-term guidance : average service revenue growth of at least low -20% and EBITDA margin in the mid-to-high-50% range. Unless otherwise stated, financial and non -financial information is year-on-year (YoY, 9M 2026 versus 9M 2025). EBITDA – earnings before interest, tax, depreciation and amortisation | pp – percentage points | PAT – profit after tax | EPS – earnings per share | Capex – capital expenditure | Free cash flow – EBITDA less cash-related capex and accounting for working capital movements, income tax and interest paid | Subscribers exclude non-revenue-generating customers whose activity is limited to receiving incoming on-net voice calls and SMS, and using free data. CEO Commentary Karl Toriola, Chief Executive Officer, said: “We delivered a very strong third quarter, reversing the temporary slowdown in Q2. Service revenue grew 19.7% (8.4% QoQ), with growth accelerating each month to 21.6% in September. Profitability grew even faster: Q3 EBITDA rose 32.8% (12.5% QoQ) and the EBITDA margin widened by 5.8pp to 58.7%. For the nine months, service revenue grew 23.7% with an EBITDA margin of 56.9%. Both are comfortably within the guidance of ‘at least low -20%’ revenue growth and a ‘mid-to-high-50%’ margin. Growth is increasingly volume -led, driven by more users, deeper data adoption, higher usage and rising demand for home broadband, supported by continued investment in network coverage, capacity and quality. In fintech, core mobile money revenue more than doubled, up 102.2%, while our airtime and data credit service continued to recover following its resumption under a multi -partner model, with revenue up 78.5% on Q2.
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 2 | Page We continue to deliver on our efficiency programme, expanding margins and strengthening cash generation despite energy cost pressures, and these gains are increasingly structural. Our balance sheet is strong, with borrowings fully naira -denominated and at fixed rates, eliminating foreign currency and floating-rate exposure on our debt. We enter the final quarter with confidence and remain on track to deliver our guidance. Our priorities are clear: sustain growth, protect margins, scale home broadband and rebuild fintech momentum, while creating sustainable value for all our stakeholders.” Revenue segment performance Our broad-based revenue growth demonstrates the resilience of our core business and the strength of the underlying demand for our services, which continues to grow. Data was the main contributor to growth, supported by voice, digital services and home broadband. Data revenue rose 35.8% (Q3 2026: 31.4%), driven by growing digital adoption across our base. Active data users increased by 12.0% to 57.2 million, and average monthly usage per active data user grew by 16.2% to 15.3GB for the nine months (Q3 2026: 17.2GB), lifting net work data traffic by 30.1%. Smartphones on our network rose 12.4% YoY as customers upgraded to 4G- and 5G-capable devices, bringing smartphone penetration to 66.0%, up 0.9pp YoY. Home broadband is becoming an increasingly important contributor to our growth, supported by our leadership position in the FTTH market. FTTH now carries approximately 13% of our total data traffic, helping to free up capacity on the mobile network while enhancing the ef ficiency and scalability of our network. Voice revenue grew by 11.1% (Q3 2026: 9.3%), supported by a 10.9% increase in mobile subscribers to 94.7 million and targeted propositions, which offset softer usage per subscriber as customers shift towards data. Digital revenue increased by 24.0% and accelerated to 30.6% growth in Q3. Growth was led by rich media services and mobile advertising. Enterprise revenue increased by 6.5%, led by bulk SMS, fixed connectivity and converged services, supported by the acquisition of high -quality customers. In fintech, the core mobile money business continued to scale, with revenue up 102.2%, driven mainly by higher float income as wallet balances more than quadrupled to N43.8 billion from December 2025. Overall fintech revenue declined 25.9% due to the suspe nsion of the airtime and data credit service between April and June. The service resumed under a new multi -partner model and continued to recover in Q3, with revenue up 78.5% on Q2. In August 2026, MoMo PSB moved to its new Alipay+ platform, a step-change for our fintech business. Built for reliability and scale, it offers a richer, more feature-packed and secure customer experience, giving MoMo PSB the foundation to become a scaled d igital financial services platform. Monthly active users at the end of Q3 were 3.2 million, now measured on the new platform only and continue to grow as legacy wallets migrate and new customers are onboarded. Underlying engagement remained robust, with Q3 transaction volumes up 69.1% on Q2.
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 3 | Page Financial performance Our strong top line, combined with disciplined cost management, delivered significant operating leverage. Operating expenses (Opex) rose by 8.5%, well below revenue growth and inflation. This reflected the continued delivery of our expense-efficiency programme, together with the benefit of a stronger naira (N1,329/US$ at the end of September 2026 against N1,475/US$ in September 2025) and VAT input claims, which collectively contained the impact of higher diesel- linked tower costs in Q3. As a result, EBITDA increased by 36.8% and the EBITDA margin expanded by 5.5pp to 56.9% (Q3 2026: 58.7%). Depreciation and amortisation rose by 32.6%, reflecting higher network investment. Net finance costs fell by 25.3% to N277.0 billion as borrowings were reduced, and the stronger naira produced a net foreign exchange gain of N80.1 billion (9M 2025: N55.6 billion). Cash generation was strong with free cash flow up 57.5% to N1.2 trillion on higher earnings and disciplined capital allocation, delivered alongside continued network investment and supporting shareholder returns. Capex excluding leases rose 14.2%, giving a capex intensity of 18.7% in line with our target range. Investment accelerated in Q3, up 69.1%, as we stepped up our 2026 network rollout, expanding coverage and capacity, improving network quality and supporting home broadband growth. Our balance sheet is a source of strength and resilience. We closed the period with a net cash position of N47.7 billion (December 2025: N104.8 billion) after paying N860.8 billion in dividends, covering the FY 2025 final and 2026 interim, and increasing n etwork investment. Our interest earned exceeded the interest payable on borrowings, resulting in a net interest income position and underscoring the strength of our balance sheet, which remains fully naira -denominated and fixed-rate. This provides us with the flexibility to continue investing for growth while sustaining shareholder returns. Outlook Our capital allocation priorities remain unchanged: investing in network capacity and coverage to improve customer experience, scaling home broadband and fintech, maintaining a resilient balance sheet and delivering sustainable shareholder returns. Growth will continue to be underpinned by subscriber and usage growth, deeper data adoption and the scaling of home broadband, digital and enterprise services. In fintech, our priorities are to complete the migration of customers to the new MoMo platform, deepen wallet activity and use cases, and sustain the recovery of the airtime and data credit service to expected levels by the end of November 2026. The structural separation of the fintech business is progressing, subject to regulatory approvals. We continue to closely monitor developments in our operating environment, particularly energy costs, inflation, FX conditions, pricing behaviour and customer affordability. While energy costs remain an important consideration, recent trends give us increased confidence in our margin outlook as we enter the final quarter. Our focus remains on sustaining growth and protecting margins, while converting earnings growth into stronger cash flow and long-term shareholder value.
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 4 | Page Key financial tables Group income statement summary N billion 9M 2026 9M 2025 YoY Q3 2026 Q3 2025 YoY Total revenue 4,613.3 3,731.0 23.6% 1,620.3 1,353.3 19.7% Service revenue 4,586.0 3,708.2 23.7% 1,611.2 1,345.9 19.7% Data 2,684.4 1,977.2 35.8% 981.4 746.7 31.4% Voice 1,496.7 1,347.6 11.1% 503.3 460.4 9.3% Digital 88.3 71.2 24.0% 29.7 22.8 30.6% Fintech 97.5 131.6 (25.9%) 20.3 48.4 (58.1%) Other service revenue 219.2 180.6 21.3% 76.5 67.6 13.3% Non-service revenue 27.3 22.8 20.1% 9.0 7.4 22.1% Other income - 1.7 - - - - Operating Expenses (1,988.9) (1,814.4) (9.6%) (669.3) (637.3) (5.0%) Cost of sales (566.5) (503.0) (12.6%) (190.4) (173.4) (9.8%) Operating expenses (1,422.3) (1,311.4) (8.5%) (478.9) (463.9) (3.2%) EBITDA 2,624 1,918 36.8% 951 716 32.8% EBITDA margin 56.9% 51.4% 5.5pp 58.7% 52.9% 5.8pp Depreciation & amortisation (631.9) (476.5) (32.6%) (225.0) (167.0) (34.7%) Net finance costs (277.0) (370.9) 25.3% (65.7) (105.6) 37.8% Net FX gain 80.1 55.6 44.2% 43.8 60.8 (28.0%) Profit before tax 1,795.6 1,126.4 59.4% 704.1 504.2 39.6% Taxation (630.5) (376.3) (67.6%) (246.4) (168.9) (45.9%) Profit after tax 1,165.2 750.2 55.3% 457.6 335.3 36.5% PAT margin 25.3% 20.1% 5.1pp 28.2% 24.8% 3.5pp Group cash flow and investment N billion 9M 2026 9M 2025 YoY Q3 2026 Q3 2025 YoY Free cash flow 1,169.7 742.6 57.5% 457.0 332.8 37.3% Capex 1,187.8 1,250.6 (5.0%) 392.2 264.5 48.3% Capex excl. leases 864.8 757.4 14.2% 243.9 144.3 69.1% Capex intensity excl. leases 18.7% 20.3% (1.6pp) 15.1% 10.7% 4.4pp Key operating indicators Sep 2026 Sep 2025 YoY Mobile subscribers (million) 94.7 85.4 10.9% Active data users (million) 57.2 51.1 12.0% MoMo monthly active users (million) 3.2 2.9 11.6% YoY growth rate is calculated using unrounded figures
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 5 | Page Conference call Management will host a conference call for analysts and investors on 02 November 2026 at 15:00 (WAT). For r egistration details , click here . A transcript and the presentation will be available at www.mtn.ng/investors. Contacts Investor Relations Media Chima Nwaokoma, Snr. Manager, Investor Relations Funso Aina, Snr. Manager, External Relations Tel: +234 803 200 0186 Tel: +234 803 200 4168 investorrelations.ng@mtn.com mediaenquiries.ng@mtn.com About MTN Nigeria MTN Nigeria is one of Africa’s largest providers of communications services, connecting over 94 million people in communities across the country with each other and the world. Guided by a belief that everybody deserves the benefits of a modern connected li fe, MTN Nigeria’s leadership position in coverage, capacity, and innovation has remained constant since its launch in 2001. The Company's subsidiaries are MoMo Payment Service Bank Limited, Yello Digital Financial Services Limited and XS Broadband Limited. MTN Nigeria is part of the MTN Group - a multinational telecommunications group which operates in 19 markets in Africa and the Middle East, serving over 300 million people. Visit www.mtn.ng for more information
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 6 | Page 9 months 9 months 9 months 9 months ended 30 ended 30 ended 30 ended 30 Sept-2026 Sept-2025 Sept-2026 Sept-2025 Profit for the period 1,165,174 750,185 1,137,337 687,334 Items that may be reclassified to profit or loss, (net of taxation): Fair valuation (loss)/gain on investments at FVOCI (a) 288 130 246 136 Other comprehensive (loss)/income for the period; net of taxation 288 130 246 136 Total comprehensive income/(loss) 1,165,462 750,315 1,137,583 687,470 Company Consolidated and separate statement of other comprehensive income (a) Fair valuation gain or loss on investments designated at fair value through other comprehensive income (FVOCI) relates to Federal Government treasury bills and bonds investments and its recognised net of tax (except for Federal Government bonds). In millions of Nigerian Naira Group 9 months 9 months 9 months 9 months ended 30 ended 30 ended 30 ended 30 Sept 2026 Sept 2025 Sept 2026 Sept 2025 Revenue 4,613,323 3,731,003 4,600,183 3,726,967 Other income - 1,672 - 1,672 Direct networking operating costs (1,023,491) (1,040,695) (1,023,491) (1,040,695) Value added services (36,193) (40,723) (32,016) (39,609) Cost of starter packs, handsets and accessories (43,694) (35,245) (43,694) (35,245) Interconnect costs (139,694) (145,525) (139,694) (145,525) Roaming costs (8,004) (8,678) (8,004) (8,678) Transmission costs (25,015) (32,507) (25,015) (32,507) Commissions (214,376) (172,446) (215,700) (172,518) Advertisements, sponsorships and sales promotions (56,474) (32,584) (52,475) (31,257) Employee costs (186,797) (95,050) (177,863) (91,312) Impairment losses/(reversals) on financial assets (23,872) (2,751) (41,462) (2,710) Other operating expenses (231,259) (208,233) (239,046) (267,347) Depreciation of property and equipment (340,279) (219,900) (340,279) (219,900) Depreciation of right of use assets (219,473) (192,347) (219,473) (192,347) Amortisation of intangible assets (72,197) (64,208) (71,067) (63,078) Operating profit 1,992,505 1,441,783 1,970,904 1,385,911 Finance income 82,579 33,259 76,003 25,507 Finance costs (359,577) (404,180) (358,906) (403,289) Net foreign exchange gain/(loss) 80,138 55,579 79,807 55,399 Profit before taxation 1,795,645 1,126,441 1,767,808 1,063,528 Tax (expense)/credit (630,471) (376,256) (630,471) (376,194) Profit for the period 1,165,174 750,185 1,137,337 687,334 Earnings/(loss) per share - basic/diluted (N) 55.60 35.80 54.27 32.80 Group Company Consolidated and separate statement of profit or loss In millions of Nigerian Naira
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 7 | Page In millions of Nigerian Naira 30 Sept 2026 31 Dec 2025 30 Sept 2026 31 Dec 2025 Assets Non-current assets Property, plant and equipment 2,330,944 1,853,524 2,330,520 1,853,524 Right-of-use assets 1,820,332 1,716,877 1,820,332 1,716,877 Intangible assets 395,569 421,410 393,636 418,347 Investments in subsidiaries - - 60,660 45,386 Other non-current investments 21,020 17,812 9,766 6,251 Deferred tax assets 139,080 93,629 139,063 93,612 Other non-current assets 81,837 46,149 81,837 46,149 4,788,782 4,149,401 4,835,814 4,180,146 Current assets Inventories 36,311 23,298 36,311 23,298 Trade and other receivables 404,593 397,029 411,888 433,716 Current investments 330,749 162,255 238,064 116,893 Restricted cash 31,421 37,707 31,221 37,507 Cash held for MoMo customer 1,262 1,298 - - Cash and cash equivalents 380,992 632,501 379,669 630,219 1,185,328 1,254,088 1,097,153 1,241,633 Total assets 5,974,110 5,403,489 5,932,967 5,421,779 Equity and liabilities Equity Share capital 420 420 420 420 Share premium 166,362 166,362 166,362 166,362 Other reserves (14,143) (14,431) (31,630) (31,876) Shares held for employee share scheme (14,311) (4,041) (14,311) (4,041) Retained profit 705,579 400,402 735,209 457,570 843,907 548,712 856,050 588,435 Liabilities Non-current liabilities Borrowings 260,853 419,572 260,853 419,572 Lease liabilities 2,109,007 2,117,047 2,109,007 2,117,047 Provisions 52 52 52 52 Share based payments liability 91,015 44,354 91,021 44,354 Employee benefits 15,733 13,699 15,733 13,699 Other non-current liabilities 11,945 11,634 2,172 2,354 2,488,605 2,606,358 2,478,838 2,597,078 Current liabilities Trade and other payables 1,203,157 1,317,659 1,208,508 1,319,134 Borrowings 72,470 108,097 72,470 108,097 Lease liabilities 350,667 269,182 350,667 269,182 Contract liabilities 173,478 138,138 173,478 138,138 Current tax payable 710,292 355,175 709,881 354,801 Provisions 73,659 39,177 71,423 37,545 Derivatives 198 2,224 198 2,224 Deposit held for MoMo customers 43,815 9,842 - - Employee benefits 10,497 6,003 10,497 6,003 Other current liabilities 3,365 2,922 957 1,142 2,641,598 2,248,419 2,598,079 2,236,266 Total liabilities 5,130,203 4,854,777 5,076,917 4,833,344 Total equity and liabilities 5,974,110 5,403,489 5,932,967 5,421,779 Consolidated and separate statement of financial position for the nine months ended 30 Sept 2026 Group Company
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MTN Nigeria Communications Plc Financial results for the nine months ended 30 September 2026 8 | Page 9 months 9 months 9 months 9 months ended 30 ended 30 ended 30 ended 30 In millions of Nigerian Naira Sept 2026 Sept 2025 Sept 2026 Sept 2025 Cash flows from operating activities Cash generated from operations 2, 874,050 1, 965,370 2, 875,863 1, 962,200 Interest received 59,632 19, 165 56, 653 11, 361 Finance cost paid ( 328,655) ( 404,271) ( 328,655) ( 404,271) Tax paid ( 295,364) ( 21,546) ( 295,255) ( 21,546) Net cash generated from operating activities 2,309,663 1,558,718 2,308,606 1,547,744 Cash flows from investing activities Acquisition of property and equipment ( 1,003,289) ( 539,260) (1,002,866) ( 539,260) Acquisition of right of use assets ( 24,719) ( 123,002) ( 24,719) ( 123,002) Acquisition of intangible assets ( 78,077) ( 142,643) ( 78,077) ( 142,643) Proceeds from disposal of property and equipment 2, 687 1, 732 2, 687 1, 732 Purchase of investment in non-current FGN bonds ( 9,676) ( 5,139) ( 5,900) - Sale of investment in non-current FGN bonds 6, 879 - 2, 650 - Purchase of bonds, treasury bills and foreign deposits ( 1,105,852) ( 376,605) ( 814,751) ( 146,735) Sale of bonds, treasury bills and foreign deposits 959, 449 305, 314 700, 277 99, 816 Purchase of contract acquisition costs ( 9,423) ( 7,956) ( 9,423) ( 7,956) Decrease in restricted cash 5, 659 67, 643 5, 659 67, 643 Prepaid road investment tax credit cost ( 76,057) ( 21,724) ( 76,057) (21,724) Additional investments in subsidiary - - ( 30,000) - Net cash flows used in investing activities (1,332,419) (841,640) (1,330,520) (812,129) Cash flows from financing activities Proceeds from borrowings - 29, 755 - 29, 755 Repayment of borrowings ( 188,514) ( 326,351) ( 188,514) ( 326,351) Repayment on lease liabilities ( 158,569) ( 176,723) ( 158,569) ( 176,723) Dividend paid ( 859,698) - ( 859,698) - Payments to the Ericsson Wallet Platform (EWP) liability ( 177) ( 140) - - Additional shares purchased for employee share scheme ( 16,965) ( 509) ( 16,965) ( 509) Net cash flows used in financing activities ( 1,223,923) ( 473,968) ( 1,223,746) ( 473,828) Net increase/(decrease) in cash and cash equivalents ( 246,679) 243, 110 ( 245,660) 261, 787 Cash and cash equivalent at the beginning of the period 632,695 253, 409 630, 334 232, 832 Effect of exchange rate fluctuations on cash held (4,730) ( 413) ( 4,725) ( 413) Cash and cash equivalents at the end of the period 381, 286 496, 106 379, 949 494, 206 Consolidated and separate statement of cash flows Group Company