Legend Internet Plc, Nigeria’s first publicly listed internet service provider (ISP), posted higher annual profits in 2025 even as rising costs and liquidity pressures weighed on its balance sheet.
For the year ended July 31, revenue rose 4% to ₦1.19 billion ($799,000), while gross profit climbed to ₦761.4 million ($511,000) from ₦677.4 million ($455,464) a year earlier. Profit after tax surged 44% to ₦172.7 million ($116,000), helped by tighter cost controls. Earnings per share increased to 9 kobo from 6 kobo in 2024.
Legend’s IPO earlier this year gave investors rare access to the sector. Still, the company’s dependence on short-term borrowing, surging personnel costs, and negative cash flows underscores the difficulties of scaling connectivity in one of Africa’s most competitive telecom landscapes.
The headline numbers mask volatility. In the third quarter, profit after tax dropped by more than half to ₦32.9 million ($22,085), while operating expenses nearly tripled to ₦122.6 million ($82,329), driven by higher staff, consultancy, and marketing costs. Earnings per share fell to 2 kobo from 7 kobo a year earlier.
Legend rebounded in the final quarter, however, closing the year with stronger margins. Analysts suggest this rebound stemmed from tighter cost-of-sales management, which kept gross margins stable despite lower quarterly revenues.
The bigger challenge lies in liquidity. Net cash from operations swung to a negative ₦72.6 million ($48,000) in 2025, compared to positive flows a year earlier. By July, cash balances had shrunk to ₦21 million ($14,000), with an overdraft of ₦49 million ($33,000). The company leaned on short-term borrowings, adding ₦50 million in loans by April, while total short-term liabilities climbed to ₦464.8 million ($312,574). Legend reported no long-term debt.
Operating and administrative expenses added to the strain, rising 52% to ₦560.2 million ($376,366), with personnel costs more than doubling to ₦195.9 million ($131,682). The savings on cost of sales, which dropped 7% to ₦429.7 million (288,531), were not enough to offset higher overheads. Earnings before interest and tax fell 39% to ₦172.7 million ($115,966), showing that rising finance and administrative costs continue to erode margins.
Total assets edged up to ₦3.34 billion ($2.24 million) from ₦3.03 billion ($2.03 million) in 2024, with fibre infrastructure valued at more than ₦2.6 billion ($1.7 million). Shareholders’ funds stood at ₦2.87 billion ($1.9 million), only slightly below last year’s level, while retained earnings increased to ₦734.6 million ($493,527). Legend reported no asset impairments or pledges, and reaffirmed its commitment to stable pricing despite inflation running above 33%.
The company’s improved profit is a step forward, but without stronger cash generation and tighter cost discipline, that progress may prove fragile. For Legend, the real test is whether it can balance growth with stability in a market where infrastructure is expensive, competition is fierce, and liquidity can dry up quickly.
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