In its recently published earnings release, MTN Nigeria Communications Plc (MTNN) posted a H1'25 PAT of N414.86 billion (vs a loss of N519.06 billion in H1'24), on the back of the implementation of the tariff adjustments. The impact of the higher tariff, which was fully reflected in Q2’25, coupled with the 6.7% YoY increase in mobile subscriber base in H1’25, supported top-line. We also note sustained demand for data services and growing deployment of cost optimisation strategies, with the latter leading to a reduction in the cost- to-sales ratio. These improvements and feedback from recent communication with management have resulted in a recalibration of our projections. We have revised our 12-month Target Price ("TP") to N526.94 and adjusted our recommendation to a HOLD.
