MTN Nigeria, the largest telecommunications provider in the country, forecasts revenue of ₦4.9 trillion by 2025, relying on tariff increases and subscriber growth.
Expected Revenue and Growth Drivers
According to a report by CardinalStone Partners Limited, MTN Nigeria expects to increase its revenue from ₦4.8 trillion to ₦4.9 trillion by 2025 due to tariff hikes and increasing demand for communication services. In Q1 2025, the operator reported a 134% profit increase year-on-year, reaching ₦133.64 billion.
MTN Nigeria's Market Position and Strategic Initiatives
With over 75 million subscribers and a 40% market share, MTN Nigeria leads the telecommunications sector in the country. The company is actively enhancing its infrastructure, including expanding its 4G network and preparing for a 5G rollout. The MoMo mobile money platform is becoming a key growth engine amidst a significant underserved population in the country.
CardinalStone Projections and Risks
In its report, CardinalStone assigned MTN Nigeria a 'Buy' rating with a target price of ₦250 per share. Despite optimistic forecasts, MTN Nigeria faces risks, including regulatory uncertainty and increasing competition from other operators like Airtel Nigeria.
Considering strategic initiatives such as rural expansion and 5G implementation, MTN Nigeria is well-positioned for significant growth in 2025. However, existing risks related to regulation and the economic situation in the country must be considered.
