By 
Legend Internet Plc, Nigeria’s first publicly listed internet service provider (ISP), has reported stronger profits for the 2025 financial year despite mounting liquidity pressures and rising costs that continue to test its financial resilience.
For the year ended July 31, revenue increased 4% to ₦1.19 billion ($799,000), while gross profit rose to ₦761.4 million ($511,000) from ₦677.4 million ($455,464) in 2024. Profit after tax jumped 44% to ₦172.7 million ($116,000), supported by tighter cost controls. Earnings per share also improved to 9 kobo, up from 6 kobo in the previous year.
The company’s landmark IPO earlier in 2025 provided rare investor access to Nigeria’s broadband market. Yet, behind the headline gains lie challenges that underscore the difficulty of scaling connectivity in a fiercely competitive telecom sector.
In the third quarter, profit after tax fell sharply by over 50% to ₦32.9 million ($22,085), as operating expenses nearly tripled to ₦122.6 million ($82,329), driven by higher staff, consultancy, and marketing costs. Earnings per share dropped to 2 kobo from 7 kobo a year earlier. However, a fourth-quarter rebound, attributed to stricter cost-of-sales management, helped stabilise gross margins and close the year on stronger footing.
Liquidity remains a critical pressure point. Net cash flow from operations turned negative at ₦72.6 million ($48,000), compared with positive inflows in 2024. By July, cash balances had dwindled to ₦21 million ($14,000), against an overdraft of ₦49 million ($33,000). The company leaned on short-term borrowings, securing ₦50 million in loans by April, with overall short-term liabilities rising to ₦464.8 million ($312,574). Legend reported no long-term debt.
Rising overheads compounded the strain, with operating and administrative expenses up 52% to ₦560.2 million ($376,366). Personnel costs more than doubled to ₦195.9 million ($131,682). While cost of sales declined 7% to ₦429.7 million ($288,531), the savings were insufficient to offset surging expenses, causing earnings before interest and tax to drop 39% to ₦172.7 million ($115,966).
On the balance sheet side, total assets edged up to ₦3.34 billion ($2.24 million) from ₦3.03 billion ($2.03 million) in 2024, with fibre infrastructure accounting for over ₦2.6 billion ($1.7 million). Shareholders’ funds stood at ₦2.87 billion ($1.9 million), slightly below last year, though retained earnings climbed to ₦734.6 million ($493,527). The company reported no impairments or asset pledges, while reaffirming its commitment to stable pricing despite inflation exceeding 33%.
Legend’s improved profitability marks progress, but its future hinges on whether it can generate stronger cash flows and maintain tighter cost discipline. In an industry where infrastructure demands are high and liquidity can vanish quickly, the company faces a delicate balancing act between growth and financial stability.
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