IHS Holding Limited Reports Second Quarter 2024 Financial Results

In This Article:

Consolidated Highlights – Second Quarter 2024

  • Revenue of $435.4 million increased 4.2% compared to the first quarter of 2024. Revenue decreased by 20.3% (or increased by 69.3% organically) compared to the second quarter of 2023, reflecting a $490.0 million year-on-year foreign exchange ("FX") headwind, largely as a result of the 63.5% devaluation of the Nigerian Naira ("NGN"), partially offset by $354.7 million FX resets and escalations captured within organic growth.

  • Adjusted EBITDA of $250.8 million (57.6% Adjusted EBITDA Margin) decreased from the second quarter of 2023 by 11.9%, reflecting a $307.2 million year-on-year FX headwind largely as a result of the devaluation of the NGN

  • Loss for the period was $124.3 million of which $169.7 million relates to unrealized FX losses

  • Cash from operations was $151.6 million

  • Adjusted Levered Free Cash Flow ("ALFCF") was $66.9 million

  • Total Capex was $53.7 million

  • On August 7, 2024, we reduced guidance for revenue to $1,670-1,700 million, Adjusted EBITDA to $900-920 million and ALFCF guidance to $250-270 million. The reduction in guidance includes the impact from the renewal and extension of all tower contracts with MTN Nigeria. Capital expenditure ("Total Capex") guidance of $330-370 million and net leverage ratio target of 3.0x-4.0x remain unchanged.

LONDON, August 13, 2024--(BUSINESS WIRE)--IHS Holding Limited (NYSE: IHS) ("IHS Towers" or the "Company"), one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, today reported financial results for the second quarter ended June 30, 2024.

Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, "We’re reporting solid performance on Revenue, Adjusted EBITDA and ALFCF, while Capex decreased meaningfully. As of this quarter, we began putting the negative impacts of the January 2024 Naira devaluation in the rearview mirror, as we realized more of the benefits of the FX resets in our revenue contracts and saw a significant step-up in Adjusted EBITDA and Adjusted EBITDA margin from the first quarter. The reduction in Capex reflects the actions we’re taking to try to generate more cash and narrow our focus to projects that we believe will deliver the highest returns, two of the main goals of our ongoing strategic review.

Organic growth for the quarter was 69%. Groupwide, we added net 385 tenants and 1,566 lease amendments and built 207 towers, including 136 in Brazil. For the remainder of the year, we expect strong performance in our KPIs as the underlying trends driving our business remain healthy, and the higher Adjusted EBITDA margin continues after the dip of 1Q24 margins emanating from the January 2024 devaluation in Nigeria.