Legend Internet Plc boosted annual profit by 45% after cutting network charges and adding new revenue streams, though rising liquidity pressures cloud its outlook.
For the year to July 31, 2025, the company lifted net profit to ₦172.7 million from ₦119.5 million, according to unaudited results.
It grew revenue 4.6% to ₦1.19 billion, driven by wholesale bandwidth sales and stronger uptake of its payments arm, Legend Pay.
Costs And Expenses Surge
Lower infrastructure costs fuelled earnings.
Legend cut payments to Infraco Abuja to ₦275.5 million from ₦400 million, reducing cost of sales 7% to ₦429.6 million.
New bandwidth charges of ₦125.6 million offset part of the savings.
The company lifted gross profit 12% to ₦761.4 million.
Expenses surged.
Legend increased administrative spending 52% to ₦560.2 million, reflecting higher salaries, marketing, and consultancy fees.
It more than doubled personnel costs to ₦195.9 million.
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Operating profit before finance costs dropped to ₦201.2 million from ₦309.8 million.
Still, bottom-line profit rose because the company paid no tax this year, compared with ₦165.6 million in 2024.
Cash Flow Pressure
Cash flow delivered the sharpest warning.
Operations swung to a ₦72.6 million deficit after generating a ₦734.5 million surplus last year, as receivables jumped nearly 77-fold to ₦367.1 million.
Legend increased cash to ₦21 million only by drawing ₦148.8 million in new loans, which left it with a net overdraft.
It lifted borrowings nearly tenfold to ₦165.4 million and more than doubled current liabilities to ₦465 million.
Legend’s shares closed Friday at ₦5.65, down 9% from the April IPO price of ₦6.20 and 13% lower since July.
Legend grew profit, but without stronger cash generation, its growth story looks fragile.
