Legend Internet Builds ₦4.14bn Asset Base As Cost Pressures Weigh On Profit
Legend Internet Plc continued to strengthen its balance sheet in the 12 months ended July 31, 2026, with total assets rising 29 percent to ₦4.14 billion from ₦3.21 billion a year earlier.
The expansion reflects continued investment in infrastructure and increased access to financing, although higher costs are weighing on earnings.
The internet service provider disclosed the performance in its unaudited management financial statements for the period, filed with the Nigerian Exchange Limited (NGX).
Total assets increased by ₦929.4 million during the year, driven largely by a significant increase in current assets, which rose to ₦1.65 billion from ₦597.8 million. The stronger liquidity position provides the company with additional capacity to support operations and fund near-term growth initiatives.
Despite a decline in revenue, Legend Internet maintained a relatively strong gross profit position. Revenue fell to ₦1.10 billion from ₦1.19 billion, while gross profit moderated to ₦714 million from ₦761.4 million. This translated to a gross margin of approximately 65 percent, underscoring the resilience of the company’s core operating economics despite softer top-line performance.
The company’s infrastructure base also remained substantial, with property, plant and equipment valued at ₦2.47 billion at the end of the reporting period. Legend Internet invested an additional ₦49.6 million in property, plant and equipment during the year, highlighting its continued commitment to expanding and maintaining its network capacity.
Legend recorded a net cash inflow of ₦1.07 billion from financing activities, following proceeds from loans, term loans and commercial paper, partly offset by loan repayments. The increased financing provides additional resources for expansion, but also raises the importance of effective debt and financing-cost management as the company scales.
The company Legend reported a profit of ₦13.2 million for the period, down from ₦142.5 million in the previous year due to infrastructure acquisition costs, administrative expenses and financing-related pressures.
For investors, the key question will be whether the company can convert its enlarged asset and financing base into stronger revenue growth and improved earnings. Sustained investment in infrastructure could provide a platform for future expansion, but tighter control of administrative and financing costs will be critical to translating balance-sheet growth into shareholder returns.
“Legend Internet’s ability to translate its expanded asset and financing base into stronger revenue growth, while bringing administrative and financing costs under control have strong potential to restore profitability and improve shareholder returns ,” an analyst said.
