Cost pressures weigh on Legend Internet profit despite N4.14bn asset base

Legend Internet Plc reported a pre-tax profit of N13.21 million for the year 2026, a staggering 92.35% decrease from N172.66 million in the previous year. The decline was mainly due to administrative expenses skyrocketing nearly nine times and finance costs more than doubling. Despite a one-off N672 million asset disposal gain, the company would have experienced a significant operating loss.

The top line, representing revenue, faced pressure throughout the review period, causing a 7.44% year-on-year decline to N1.10 billion. Gross profit followed suit, dropping 6.23% to N714.00 million. Profit before tax plummeted 92.35%, reaching N13.21 million. Total assets grew by 28.94% to N4.14 billion, mainly due to increased receivables and prepayments.

Total equity, however, declined by 2.73% to N2.76 billion. Earnings per share fell to 1 kobo, down from 7 kobo. Borrowings surged by 1,419.10%, reaching N1.14 billion. Cash and cash equivalents decreased by 71.02%, ending at N6.09 million. The company's stock traded at N4.05 per share, having lost 23.4% of its value since the beginning of the year, ranking it 113th among NGX companies by year-to-date performance.