Legend Internet Plc reported a loss after tax of ₦199.34 million for the six months ended January 31, 2026, marking a sharp turnaround from the ₦239.85 million profit recorded in the same period of 2025. The decline in financial performance was driven by falling revenue, rising operating costs, and significantly higher finance expenses. The company’s revenue dropped by 18.8 percent to ₦505.36 million from ₦622.64 million in the first half of 2025, while gross profit fell by 21.5 percent to ₦322.99 million from ₦411.33 million. Despite a reduction in cost of sales from ₦211.31 million to ₦182.37 million, this was not enough to offset the surge in administrative expenses.
Administrative expenses soared to ₦457.62 million from ₦166.78 million, a staggering 174.4 percent increase, which pushed the company into an operating loss of ₦134.63 million. This contrasts sharply with the operating profit of ₦244.55 million recorded in the corresponding period of the previous year. Finance costs also rose dramatically to ₦64.71 million from just ₦4.69 million, reflecting increased borrowings and higher interest obligations. The combined effect of these factors led to a loss before tax of ₦199.34 million, compared to a profit before tax of ₦239.85 million in 2025.
On a quarterly basis, Legend Internet posted a loss of ₦226.18 million for the three months ended January 31, 2026, compared to a profit of ₦146.41 million in the same quarter of 2025. Despite the weak earnings, the company’s cash position improved significantly, with cash and cash equivalents rising to ₦269.13 million from ₦21.02 million at the end of July 2025. Total assets grew by 7.6 percent to ₦3.45 billion from ₦3.21 billion, driven by an increase in current assets to ₦989.39 million from ₦597.82 million.
However, this improvement in liquidity was accompanied by a sharp rise in liabilities. Current liabilities climbed to ₦903.91 million from ₦319.11 million, while borrowings surged to ₦564.88 million from ₦75.23 million — an increase of over 650 percent. This rise in debt directly contributed to higher finance costs and pressured profitability. Shareholders’ funds declined to ₦2.55 billion from ₦2.84 billion, with retained earnings falling from ₦700.78 million to ₦410.75 million due to the reported loss. Although the company recorded ₦100 million in other comprehensive income, it was insufficient to offset the substantial operating loss.
The latest financial results highlight Legend Internet’s ongoing challenges in maintaining profitability amid rising costs and increased borrowing. Management now faces the critical task of balancing revenue growth, cost control, and debt management in a highly competitive market. The company’s ability to stabilize its financial position will be closely watched by investors and stakeholders in the coming months.
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