Legend Internet Plc has reassured investors of stronger future earnings prospects despite posting a pre-tax loss of N199.34 million for the six months ended January 31, 2026. Aggressive investment in network expansion, rising operating costs, and higher financing expenses weighed on profitability.
The broadband and digital services provider swung from a pre-tax profit of N239.85 million in the corresponding period of 2025 to a loss position, marking its first interim loss since listing on the Nigerian Exchange (NGX).
According to the company’s unaudited financial results for the half-year period ended January 31, 2026, filed on the Nigerian Exchange (NGX), administrative expenses alone — at N457.62 million — exceeded the company’s gross profit of N322.99 million for the period, making an operating loss mathematically unavoidable even before finance charges were applied.
Revenue declined by 18.84% to N505.36 million from N622.64 million in the corresponding period of 2025. Cost of sales fell by a slower 13.69% to N182.37 million, resulting in gross profit declining 21.48% to N322.99 million.
The major pressure point came from operating expenses. Administrative expenses surged 174.38% to N457.62 million, exceeding gross profit by N134.63 million and pushing the company into an operating loss position. Personnel expenses accounted for N153.50 million of administrative costs, while depreciation charges stood at N98.36 million.
Finance cost escalated by 1,278.78% to N64.71 million, contributing to the overall pre-tax loss. Total liabilities rose by 143.33% to N903.91 million compared to July 2025, with borrowings increasing by 650.84% to N564.88 million.
Despite the earnings setback, management argues that the results should be viewed in the context of ongoing investments designed to strengthen the company’s competitive position in Nigeria’s expanding broadband market.
The Chief Executive Officer, Aisha Abdulaziz, stated that the company remains focused on building a stronger platform for sustainable earnings and shareholder value. “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,” Mrs. Abdulaziz said.
