MTN Nigeria Communications Plc has reported a sharp rise in earnings for the first quarter of 2026, with profit after tax more than doubling to N355.5 billion, driven by strong growth in data usage and digital financial services.

The company disclosed this in its Q1 2026 financial results released on Thursday, showing that service revenue rose 41.8 per cent year-on-year to N1.49 trillion, while total revenue climbed to N1.50 trillion for the period ended March 31, 2026.

The performance reflects a significant turnaround for the telecom operator, supported by rising demand for internet services, improved network usage and expansion in its fintech operations.

MTN’s subscriber base also grew during the period, adding 2.3 million users to reach 89.5 million active customers. Data services remained the strongest growth driver, with revenue increasing 56.2 per cent to N827.2 billion, supported by higher smartphone penetration and increased average data consumption per user.

Voice services also recorded growth, rising 22.5 per cent to N499.1 billion, while fintech revenue surged 77.9 per cent to N64.2 billion as more customers adopted digital financial services.

Chief Executive Officer, Karl Toriola, said the company maintained strong commercial momentum, controlled costs and accelerated network investments to meet rising demand.

However, the fintech segment faced regulatory pressure during the quarter following the introduction of new digital lending rules. MTN temporarily suspended its airtime and data credit advance service in compliance with the 2025 Digital, Electronic, Online, or Non-Traditional Consumer Lending Regulations, which introduced stricter licensing requirements.

The company said it is working with approved providers to restore the service and noted that customer recharge behaviour had begun to stabilise despite the suspension.

In a related development, MTN Nigeria announced plans to restructure its fintech business, involving the entry of MTN Group Fintech Holdings B.V. as a majority investor in key subsidiaries, including MoMo Payment Service Bank and Y’ello Digital Financial Services.

Under the arrangement, MTN Nigeria will retain a 40 per cent stake, while the transaction is expected to inject over N150 billion into the fintech operations, strengthening balance sheet flexibility and reducing funding pressure on the Nigerian arm.

Operational efficiency improved during the period, with earnings before interest, tax, depreciation and amortisation rising 68.1 per cent to N828.3 billion and margins expanding to 55.3 per cent. Free cash flow also increased significantly, despite higher capital expenditure aimed at expanding network capacity.

The company said it expects revenue growth to normalise in the coming quarters as previous tariff adjustments are fully absorbed, while the proposed fintech restructuring awaits shareholder approval.