Telecom Rally Adds N5.67tn to MTN, Airtel on Earnings Optimism
Telecom rally adds N5.67tn to the combined market value of MTN Nigeria Plc and Airtel Africa Plc within the first 10 trading days of the second half of 2026. The strong performance came despite a broader market sell-off on the Nigerian Exchange (NGX), reflecting growing investor confidence in the telecommunications sector.
Investors are betting on stronger earnings after the Nigerian Communications Commission (NCC) approved a 50% tariff adjustment earlier this year. Strong first-quarter financial results from both telecom operators also helped fuel the rally.
Telecom Rally Adds N5.67tn Despite Broader Market Weakness
According to an analysis by THE WHISTLER, the combined market capitalisation of MTN Nigeria and Airtel Africa increased from ₦34.04 trillion on July 1 to ₦39.71 trillion on July 10.
The gain of ₦5.67 trillion, representing about 16.7%, came as investors sold shares in several banking, consumer goods, and industrial companies following months of strong market gains.
Airtel Africa Leads the Market Rally
Airtel Africa recorded the biggest increase during the period.
Its share price climbed from ₦4,794 to ₦5,801.40, pushing its market capitalisation from ₦18.02 trillion to ₦21.80 trillion.
The increase added approximately ₦3.78 trillion, representing a 21% gain in just 10 trading sessions.
MTN Nigeria Extends Strong Recovery
MTN Nigeria also delivered impressive growth.
Its share price rose from ₦720 to ₦810, increasing the company’s market value from ₦15.12 trillion to ₦17.01 trillion.
This added ₦1.89 trillion, representing a 12.5% increase over the same period.
NCC Tariff Increase Boosts Investor Confidence
Market analysts believe the rally reflects renewed optimism following the NCC’s approval of a 50% tariff adjustment, the first major telecom pricing review in several years.
The regulator approved the increase to help operators manage rising operating costs, improve service quality, and support continued investment in network infrastructure.
Investors also expect the higher tariffs to improve profit margins over the coming quarters after years of pressure from foreign exchange losses, inflation, and regulated pricing.
MTN Nigeria Reports Strong Earnings Growth
MTN Nigeria posted one of its strongest quarterly performances in recent years.
The company reported a profit after tax of ₦355.5 billion for the first quarter of 2026, more than double the ₦133.7 billion recorded during the same period in 2025.
Service revenue increased 41.8% year-on-year to ₦1.49 trillion, while total revenue reached ₦1.50 trillion.
Data and Fintech Drive MTN’s Growth
Data services remained MTN’s biggest growth driver.
Data revenue jumped 56.2% to ₦827.2 billion, accounting for more than half of total service revenue.
The company ended the quarter with 55 million active data subscribers, while average monthly data usage increased to 14.3GB per customer. Smartphone penetration also rose to 66.2%.
Voice revenue grew 22.5% to ₦499.1 billion, helping MTN expand its total subscriber base to 89.5 million after adding 2.3 million new customers.
Its fintech business also performed strongly.
Revenue from digital financial services increased 77.9% to ₦64.2 billion, although regulatory changes temporarily affected its Xtratime lending service.
To strengthen the business, MTN Group Fintech Holdings B.V. plans to inject ₦152.1 billion into MTN’s fintech operations. Under the proposed restructuring, the parent company will own 60% of MoMo Payment Service Bank and Y’ello Digital Financial Services, while MTN Nigeria will retain a 40% stake.
The company also reported EBITDA of ₦828.3 billion, up 68.1%, with its EBITDA margin improving to 55.3%.
Meanwhile, free cash flow increased 55.6% to ₦326.5 billion, despite capital expenditure nearly doubling to ₦390.3 billion as MTN expanded its network infrastructure.
Chief Executive Officer Karl Toriola said the company maintained strong commercial momentum through disciplined cost management and continued investment in network capacity.
Airtel Africa Posts Record Financial Performance
Airtel Africa also reported record earnings for the financial year ended March 31, 2026.
The telecom group generated $6.42 billion in revenue, representing 29.5% growth in reported currency and 24% growth in constant currency.
Nigeria remained the company’s fastest-growing market, with revenue increasing 47.5% in constant currency.
Data Services Become Airtel’s Largest Business
Data services overtook voice revenue as Airtel Africa’s biggest source of income.
Data revenue grew 35.2%, supported by rising smartphone adoption and increased internet usage.
The company’s subscriber base expanded 10.5% to 183.5 million, while data customers rose 14.8% to 84.2 million.
Smartphone penetration increased to 49.5%, and average monthly data consumption reached 8.9GB per customer.
Chief Executive Officer Sunil Taldar said the company’s strong performance reflects growing demand for digital services and continued investment in network infrastructure.
Telecom Stocks Regain Investor Attention
The telecom rally adds N5.67tn to the value of Nigeria’s two largest listed telecom companies and signals renewed investor confidence in the sector.
With stronger earnings, rising data consumption, expanding fintech services, and improved pricing following the NCC’s tariff adjustment, analysts expect telecom stocks to remain among the best-performing sectors on the Nigerian Exchange in the coming months.
