������Ƶ

By Fadekemi Ajakaiye

An investment management analyst, Abdulrauf Bello, has identified MTN Nigeria Communications Plc as one of the companies on the Nigerian Exchange (NGX) with a combination of revenue growth, profitability, cash generation and dividend payments.

Bello made the assessment in a post on X while responding to a question on which single company an investor could consider for a N100 million investment on the NGX.

He cited MTN Nigeria’s revenue growth, margins, cash flow and dividend payments as factors behind his assessment.

“It is the only company that gives you a mix of sustainable top-line growth, top-tier margins, top-tier cash flow generation, and a steady and predictable dividend,” Bello said.

MTN Nigeria’s unaudited financial results for the first half of 2026 showed revenue of N2.99 trillion, representing a 25.9 per cent increase compared with the corresponding period.

The company’s profit after tax rose by 70.6 per cent to N707.5 billion, while earnings before interest, taxes, depreciation and amortisation increased by 39.2 per cent to N1.7 trillion.

The company reported an EBITDA margin of 55.9 per cent, while free cash flow rose by 73.9 per cent to N712.7 billion.

The board also approved an interim dividend of N26 per share for the period.

Data services remained a major contributor to the company’s revenue during the period. Data revenue increased by 38.3 per cent to N1.70 trillion, accounting for 56.8 per cent of total revenue.

Voice revenue, meanwhile, rose by 15 per cent to N897.1 billion.

The performance reflects the increasing contribution of data services to MTN Nigeria’s revenue as demand for mobile internet and digital services continues to expand.

The company also invested N620.5 billion in capital expenditure during the first half of the year as it continued to expand and upgrade its network infrastructure.

Bello said the company’s ability to combine investment in infrastructure with shareholder returns was one of the factors behind his assessment of its prospects.

However, he acknowledged that MTN Nigeria faces risks, including regulatory changes, substantial capital expenditure requirements, debt obligations and foreign-exchange exposure.

The broader telecommunications sector has also continued to contribute significantly to Nigeria’s economy.

According to data cited in the report, the telecommunications sector contributed N5.2 trillion to real gross domestic product in the second quarter of 2026, representing 9.72 per cent of national output, while recording year-on-year growth of 10.38 per cent.

Data from the Nigerian Communications Commission also showed that MTN Nigeria had 98.64 million active lines as of June 2026, representing 51.4 per cent of the country’s telecom subscriber base.

Bello said the company’s scale within the telecommunications market, together with its financial performance, made it a stock worth considering by investors assessing companies listed on the NGX.

“If the question is which Nigerian company gives me the greatest peace of mind holding N100 million in just one stock, MTN is difficult to look past,” he said.

However, he added that the company remained exposed to the broader risks affecting the Nigerian operating environment.

MTN Nigeria’s performance will therefore continue to be watched by investors as the company balances network investment, shareholder distributions, debt management and the effects of regulatory and foreign-exchange developments on its operations.