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Legend Internet Plc, Nigeria’s first publicly-listed internet service provider, reported improved annual profits for the year ending July 31, 2025—but troubling signs persist as the company contends with cash flow pressures and rising operating costs.
Financials & Performance
Revenue rose by about 4% year-over-year to ₦1.19 billion (≈ US$799,000), while gross profit climbed to ₦761.4 million (≈ US$511,000) from ₦677.4 million (≈ US$455,000). Profit after tax surged 44%, reaching ₦172.7 million (≈ US$116,000), helped by tighter management of cost of goods sold. Earnings per share jumped to 9 kobo from 6 kobo in the previous year.
Rising Costs & Cash Flow Concerns
Despite the headline gains, Legend faces serious challenges. In its third quarter, profit after tax dropped to ₦32.9 million (about US$22,000), while operating expenses nearly tripled, driven by staff, consulting, and marketing costs. TechCabal Looking at cash flows, the situation is more worrisome: net cash from operations swung to negative ₦72.6 million (≈ US$48,000), compared to positive flows in the previous year. Cash reserves shrank to ₦21 million, even as short-term liabilities grew to ₦464.8 million.
Assets, Liabilities & Outlook
Legend’s asset base ticked up modestly to ₦3.34 billion, with fibre infrastructure making up a large share of its holdings. Shareholders’ funds remain largely stable, with retained earnings increasing. Still, liquidity remains a weak spot, especially with no long-term debt recorded. The company heavily relies on short-term borrowings to stay afloat.
Bottom Line
Legend Internet’s profit indicates progress—but it’s a fragile victory. With margins squeezed by escalating costs and negative cash flows, its ability to scale sustainably depends on better cost discipline, more stable cash generation, and smarter financial management. In Nigeria’s competitive ISP market, it’s a reminder that showing profit doesn’t always mean financial health.
