Legend Internet swings to loss as costs rise, revenue slides

Aisha Abdulaziz, CEO, Legend Internet

Legend Internet Plc reported a quarterly loss as higher operating expenses outweighed revenue from its broadband and Wi-Fi businesses, extending pressure on the Abuja-based internet services provider.

The company posted a net loss of N14.8 million for the period ended Oct. 31, 2025, compared with a profit of N94.5 million a year earlier, according to its unaudited financial statement filed on the Nigerian Exchange on Wednesday.

Revenue fell 17 percent to N258.3 million from N309.7 million, driven largely by a drop in Legend Fiber sales, its core business line.

Gross profit declined to N147.9 million from N201.2 million, as customers’ installation expenses and rising bandwidth costs eroded margins. Administrative expenses surged 60 percent to N168.8 million, led by higher staff costs, travel expenses, and depreciation on network assets.

As a result, operating performance swung into a loss of N20.9 million before interest and tax, versus a N95.4 million profit a year earlier.

Read also: Legend Internet says N10bn Series 1 Commercial Paper oversubscribed by 119.7%

Legend’s revenue mix showed Legend Fiber contributing N224.3 million, down from N292.6 million in the previous year, while wholesale bandwidth brought in N12.6 million, a new line item.

Sales of customer premises equipment rose to N18.5 million from N12.3 million, but were not enough to offset fiber weakness.

The company ended the quarter with shareholders’ funds of N2.70 billion, down from N2.84 billion in July, reflecting the period loss and a newly booked N120 million dividend liability.

Cash remained tight as N11.5 million was held in bank balances, compared with a N49.4 million bank overdraft, leaving net cash in negative territory.

Total assets slipped to N3.09 billion from N3.21 billion, as depreciation and limited capital additions reduced the value of network infrastructure and equipment. Outstanding receivables stood at N495.7 million, while total borrowings declined to N49.4 million after loan repayments.

Legend reported a basic loss per share of 2 kobo, reversing a 5-kobo profit a year earlier.

Management did not issue a profit outlook but said the company continues to focus on managing liquidity, controlling operating costs, and expanding service lines such as wholesale bandwidth to stabilise earnings amid softer broadband demand.

Shares of Legend Internet have shed 19.4 percent since January, ranking it 138th on the NGX in terms of year-to-date performance. The stock closed trading on Wednesday, December 3, 2025, at N5.

“Shareholders’ worries are compounded by the fact that LEGENDINT has lost 14% of the stock’s value from November 5th to date,” according to data analytics platform African Exchange.

Wasiu Alli is a business and economics journalist with more than two years experience covering macro trends, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. An alumnus of Lagos State University and trained at Lagos Business School, he heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.

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