Strong Gross Margin, Expansion Drive Offer Hope For Recovery In Legend Internet
Legend Internet Plc’s latest nine-month financial performance, despite a decline in profitability, points to potential recovery prospects as the company combines a resilient gross margin with an aggressive expansion and investment drive.
The company’s revenue declined by 15.1 per cent to N871.1 million in the nine months ended April 30, 2026, from N962.2 million in the corresponding period of 2025. However, gross profit remained substantial at N531.1 million, translating to a gross margin of approximately 61 per cent. This suggests that the core business continues to generate a healthy contribution before administrative and financing costs.
Administrative expenses rose by 142 per cent to N881.4 million, from N364.1 million in the previous year, while the company’s operating profit of N281 million in 2025 turned into an operating loss of N350.3 million in the review period.
However, the substantial investments being made in acquisitions and infrastructure could provide a platform for stronger revenue and earnings performance if the expansion strategy delivers the expected benefits.
The financial statements show that Legend Internet paid N1.3 billion for the acquisition of a subsidiary and placed N5.52 billion in escrow, while securing N6.88 billion in loan financing during the period. These transactions point to a significant expansion strategy, although the increased financing obligations have also contributed to higher finance costs, which rose to N65.9 million from N5.8 million.
The company also retains a significant infrastructure base, with property, plant and equipment valued at approximately N2.54 billion as of April 30, 2026, largely comprising fibre infrastructure.
This infrastructure provides a platform for expanding its customer base, increasing service capacity and potentially achieving greater economies of scale as the business grows.
Net cash used in operating activities stood at N217.1 million, while cash and cash equivalents closed at only N33.2 million. Total equity, nevertheless, remained substantial at N2.44 billion, despite the comprehensive loss recorded during the period.
“Legend Internet has the potential to translate its expansion investments into stronger financial performance.
“Our robust gross margin, substantial infrastructure base and ongoing expansion programme provide a solid foundation for recovery. We shall utilise the capital deployed to drive the scale, revenue growth and profitability needed to support our ongoing sustainable turnaround,” says the company’s Chief Executive Officer, Aisha Abdulaziz.
