Legend Internet Confirms Strong Future Earnings as Expansion Accelerates

By Peter Egwuatu

Legend Internet Plc has reassured investors that its earnings outlook remains positive as the company continues to expand its infrastructure, improve liquidity, and maintain a solid equity base, even after reporting a loss in its unaudited six‑month results to January 2026.

The broadband and digital services provider recorded a negative earnings position of N99.34 million for the six‑month period ended January, compared with a profit in the same period a year earlier.

Chief Executive Officer Aisha Abdulaziz told stakeholders that the company is focused on long‑term growth and operational sustainability. She highlighted recent investments in network expansion and digital infrastructure that are expected to enhance service delivery and support future profitability.

“We are building for the future, and while short‑term earnings may reflect the weight of our expansion strategy, the underlying fundamentals of the business remain strong. Our investments in fibre infrastructure, technology, and operational capacity are positioning Legend Internet for improved performance, stronger cash generation, and sustainable shareholder value in the periods ahead,” Abdulaziz said.

Analysts attribute the earnings decline mainly to aggressive expansion spending, higher administrative costs, and one‑off adjustments, rather than a deterioration in core business fundamentals.

Revenue for the period was N220.55 million, driven by Legend Fiber, wholesale bandwidth services, customer premises equipment sales, and Legend Pay operations. Although revenue was lower than the comparable period a year earlier, the company continued to deepen its infrastructure footprint with additional investments in fibre network assets. Capital expenditure rose as property, plant and equipment increased to N3.25 billion from N3.20 billion in July 2025. An additional N50.49 million was invested in network infrastructure expansion, underscoring management’s commitment to long‑term subscriber growth and service quality improvement.

The company also reported a notable liquidity improvement, with cash and cash equivalents rising sharply to N165.5 million from a negative position of N28.3 million previously. Despite short‑term profitability pressure, shareholders’ funds remained robust at N2.55 billion as of January 2026, highlighting the strength of the balance sheet. Total equity grew steadily from N2.58 billion in 2023 to N2.84 billion in July 2025 before moderating following dividend payments, prior‑period adjustments, and the current period earnings decline.

Industry observers believe the company’s expanding fibre infrastructure could give it a competitive edge as broadband penetration and digital connectivity demand continue to rise across Nigeria. Legend Internet’s fibre infrastructure alone had a book value of over N2.44 billion at the end of the review period, underscoring the scale of its long‑term asset base.

Management maintained that its financial risk‑management policies, foreign‑exchange controls, and liquidity oversight structures are designed to support operational sustainability and long‑term value creation for shareholders.

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