Q2 2024 IHS Holding Ltd Earnings Call Transcript
Key Points
- IHS Holding Ltd (IHS) reported a significant increase in adjusted EBITDA by 35% from Q1 2024, indicating strong operational performance.
- The company successfully renewed and extended all tower contracts with MTN in Nigeria through 2032, securing long-term revenue streams.
- IHS Holding Ltd (IHS) achieved a 69% organic growth in revenue compared to Q2 2023, driven by FX resets, CPI escalations, and power adjustments.
- The company reduced its CapEx by 73% year-on-year, reflecting strategic focus on cash generation and high-return projects.
- IHS Holding Ltd (IHS) has approximately $12.3 billion of contracted revenues with an average remaining tenant term of more than eight years, providing financial stability.
- The Naira devaluation significantly impacted reported revenue and adjusted EBITDA, with a 20% decline in revenue year-over-year.
- Despite strong organic growth, the devaluation of the Naira led to a 22% decrease in segment adjusted EBITDA in Nigeria.
- The company anticipates a negative impact of $30 million to $35 million on fiscal year 2024 results due to the new MTN Nigeria contract terms.
- IHS Holding Ltd (IHS) faces challenges in upstreaming US dollars from Nigeria, with uncertainties about sustained dollar availability.
- The judicial recovery proceedings around Oi in LatAm could potentially impact organic growth aspirations in the region.
Good day, and welcome to the IHS Holding Limited Second Quarter 2024 Earnings Results Call for the three month period ended June 30, 2024. Please note that today's conference is being webcast and recorded. (Operator Instructions)
At this time, I'd like to turn the conference over to Naya Bermudez. Please go ahead.
Thank you, operator. Thanks also to everyone for joining the call today. I'm Naya Bermudez, Senior Manager of Investor Relations here at IHS. With me today are Sam Darwish, our Chairman and CEO; and Steve Howden, our CFO.
This morning we published our unaudited financial statements for the three month period ended June 30, 2024 with the SEC, which can also be found on the Investor Relations section of our website. We also issued a related earnings release, presentation, and supplemental deck. These are the consolidated results of IHS Holding Limited, which is listed on the New York Stock Exchange under the ticker symbol IHS and which comprises the entirety of the Group's operations.
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