Legend Internet Faces Setback with N14.78m Loss
It's a tough time for Legend Internet Plc, as they've reported a loss after tax of N14.78 million for the period ending October 31, 2025. This is a stark contrast to the N94.52 million profit they enjoyed in the same period of 2024. The shift is primarily due to lower revenue and a significant increase in administrative costs. But what exactly happened?
Let's break it down. The company's revenue took a hit, dropping by 17% to N258.27 million from N309.74 million the previous year. The cost of sales was N110.37 million, resulting in a gross profit of N147.90 million, a decrease from the N201.16 million in 2024.
Here's where things get concerning: administrative expenses soared by 60%, reaching N168.78 million compared to N105.79 million. This led to an operating loss of N20.88 million, a significant change from the operating profit of N95.37 million the year before. After accounting for finance costs, Legend Internet recorded a pre-tax loss of N21.73 million for the period.
However, there's a silver lining. The company received a tax credit of N6.95 million, which slightly reduced the net loss to the aforementioned N14.78 million.
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Further analysis reveals that the company's retained earnings decreased to N566.01 million from N700.78 million as of July 31, 2025, influenced by the loss and a declared dividend liability of N120 million. Shareholders' funds also saw a decline, moving from N2.84 billion in July to N2.70 billion.
Total assets experienced a slight dip, falling to N3.09 billion from N3.21 billion, mainly due to a decrease in property, plant, and equipment, which went from N2.60 billion to N2.47 billion. Cash and cash equivalents also decreased, from N21.02 million to N11.52 million in the previous quarter.
Current liabilities increased to N382.58 million due to a rise in other payables and the recognition of a dividend liability. Non-current liabilities stood at N52.36 million, stemming from deferred tax obligations.
A Deeper Dive:
- Revenue Decline: What specific factors contributed to the 17% drop in revenue? Was it a decrease in subscribers, increased competition, or other market dynamics?
- Administrative Expenses: What caused the substantial 60% increase in administrative costs? Was it due to expansion, restructuring, or other internal factors?
- Future Outlook: What strategies is Legend Internet implementing to address these challenges and return to profitability? Are there plans for cost-cutting, revenue diversification, or other initiatives?
Controversy & Comment Hooks:
Could this loss be a temporary setback, or does it indicate deeper underlying issues within the company? What do you think are the most significant factors contributing to Legend Internet's current financial situation? Share your thoughts and opinions in the comments below!
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