Full Year 2024 Helios Towers PLC Earnings Call Transcript
Key Points
- Helios Towers PLC (HTWSF) reported record tenancy additions and strong organic growth in both top-line and bottom-line metrics for 2024.
- The company achieved a significant milestone by generating $19 million in surplus free cash flow for the first time, marking a $100 million improvement over the previous year.
- Helios Towers PLC (HTWSF) has maintained a 10-year track record of uninterrupted EBITDA growth at a compounded annual growth rate of 26% since 2015.
- The company has a strong balance sheet with fixed interest costs, allowing for amplified growth in bottom-line free cash flow as operational cash flow increases.
- Helios Towers PLC (HTWSF) is well-positioned to benefit from structural growth in Africa and the Middle East, with mobile subscribers growing at 5% per year and data consumption expected to quadruple in the next five years.
- The company faces geopolitical risks, particularly in the Democratic Republic of Congo (DRC), where civil disturbances are a part of working life.
- There is a potential threat from satellite technology, which could alter network topography and impact the traditional mobile infrastructure model.
- Some markets, such as Senegal and Madagascar, are not experiencing tenancy growth in line with other regions, which could affect overall returns on investment.
- Helios Towers PLC (HTWSF) has a high level of financial leverage, although it is decreasing, with a target to reduce it to 3.5 by the end of 2025.
- The company is not currently prioritizing mergers and acquisitions, which could limit growth opportunities in new markets.
Good morning, everyone, and thank you for joining us for today's Helios Towers full year 2024 results. My name is Drew and I'll be the operator on today's call. (Operator Instructions) It's now my pleasure to hand over to Tom Greenwood, CEO to begin. Please go ahead.
Thanks very much, Drew and hi everyone and welcome to the Helios 2024 earnings call. I hope you and your family are all doing well and thank you very much for your time today. So, I'm Tom Greenwood, Group CEO, and we're very excited to be here discussing our 2024 results, which included record tenancy additions and strong organic top-line and bottom-line growth.
2024 marks a pivotal point in the Helios evolution where we move into a surplus free cash flow phase of our journey. Our rigorous capital allocation framework is serving us well. First, we invest CapEx in high return projects to deliver this organic growth.
Second, we optimize our balance sheet with the appropriate level of financial leverage. And what
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