MTN Nigeria, Airtel Africa to Return to Profitability in 2025—CSL
The top telecom companies, MTN Nigeria and Airtel Africa Plc. listed on the Nigerian Exchange, NGX, are expected to return to profitability in 2025 after FX losses that emanated from the Nigerian naira devaluation threatened operators balance sheets.
MTN Nigeria recorded more than N925 billion in FX losses in the financial year 2024, a development that broke its balance sheet quality.
Its immediate rival, Airtel Africa Plc, recorded $153 million in FX losses at the end of the 9-month financial year 2025, a steep year-on-year reduction from $903 million in FX losses in the previous year.
“Looking ahead, we believe the worst is over for telecom operators, and we expect them to return to profitability in 2025,” CSL Stockbrokers Limited said in a review.
In 2024, Nigeria’s telecommunications sector saw mixed performances among its listed companies. MTN Nigeria sustained its revenue growth momentum, recording a 36.0% year-on-year (y/y) increase to N3.36 trillion, up from N2.47 trillion in 2023.
In contrast, Airtel Africa reported a 5.8% revenue decline in its 9M-2025 results, with revenue falling to US$3.66 billion from US$3.88 billion in 9M 2024. Analysts at CSL Stockbrokers Limited attributed the decline to significant currency devaluations in key markets, including Nigeria, Malawi, and Zambia.
In its regulatory filing, MTN Nigeria reported that its strong top-line growth was fueled by data and voice revenue increases of 49.1% and 14.5% y/y, respectively.
Meanwhile, Airtel saw declines of 2.8% in data revenue and 14.7% in voice revenue, largely due to these currency devaluations.
Analysts stated that operators in Nigeria’s telecommunications sector are grappling with rising operational costs, driven by high inflation, increasing energy prices, and currency devaluation, all of which are putting pressure on profitability.
This impact is particularly evident in MTN Nigeria, where Direct Network Operating Costs surged by 88.1% y/y to N1.23 trillion in FY 2024, up from N655.2 billion in 2023, according to CSL Stockbrokers.
In contrast, Airtel managed its costs more efficiently, recording a slight 1.1% y/y decrease in Direct Network Operating Costs, which fell to $708 million in 9M 2025 from $716 million in 9M 2024.
In analysts’ minds, currency devaluation remains a major challenge for Nigeria’s telecom sector, with foreign exchange (FX) losses significantly impacting publicly listed operators.
MTN Nigeria has been particularly affected, recording N925.36 billion in FX losses in 2024. To mitigate its FX exposure, MTN renegotiated tower lease agreements with IHS and ATC, securing more favourable terms.
“The revised leases are now primarily Naira-based, with a minimised US dollar-linked portion. Additionally, they are tied to a discounted US Consumer Price Index (CPI) with a cap on the Naira CPI escalator,” CSL said.
Analysts said the previous technology-based pricing model has been removed, and payments now focus solely on tower space and power for new upgrades.
The investment firm highlighted that these strategic adjustments helped MTN reduce its FX losses in Q4 2024, enabling the company to report a quarterly profit of N114.49 billion—a sharp turnaround from the N454.60 billion loss recorded in the same quarter of the previous year.
Airtel has also taken steps to mitigate its FX exposure by localising its foreign debt, resulting in a sharp reduction in FX losses to US$153 million in 9M 2025, down from US$903 million in the previous year.
This strategy significantly improved Airtel’s financial performance, with the company reporting a net profit of US$248 million—a remarkable turnaround from the US$2 million profit recorded in 9M 2024.
“Our positive outlook is driven by several key factors, including a steady recovery in mobile subscriptions, recently implemented tariff increases, expansion of 4G and 5G networks, rising broadband penetration, and the ongoing transition from analog to digital models,” CSL Stockbrokers said in a review note. Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
