Legend Internet Reassures Investors Despite Earnings Pressure from Expansion Plans

Kayode Tokede

Legend Internet Plc’s investors have been told that the company’s future earnings prospects remain strong, even though its unaudited six‑month results ending in January 2026 showed a decline. The firm is expanding its infrastructure, improving liquidity, and maintaining a solid equity base.

The broadband and digital services provider reported a loss of N99.34 million for the six‑month period, compared with a profit in the same period the previous year.

Chief Executive Officer Aisha Abdulaziz told stakeholders that the company is focused on long‑term growth and operational sustainability. She said recent investments in network expansion and digital infrastructure are expected to improve 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 noted that the earnings decline was largely driven by 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, supported by Legend Fiber, wholesale bandwidth services, customer premises equipment (CPE) sales, and Legend Pay operations. Although revenue moderated compared with the previous comparable period, 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. The company invested an additional N50.49 million in network infrastructure expansion, reinforcing management’s commitment to long‑term subscriber growth and service quality enhancement.

The company also recorded a notable improvement in liquidity, 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, underscoring the strength of the company’s 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 position it advantageously as broadband penetration and digital connectivity demand continue to rise across Nigeria. Legend Internet’s fibre infrastructure alone carried a book value of over N2.44 billion at the end of the review period, highlighting the scale of its long‑term asset base.

The company’s 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.