Q3 2024 IHS Holding Ltd Earnings Call Transcript
Key Points
- IHS Holding Ltd (IHS) reported strong organic revenue growth of 49% year-on-year, driven by Forex resets and increased revenue from colocation, lease amendments, and new sites.
- Adjusted EBITDA grew over 3% year-on-year to $246 million, with a margin of 58.5%, highlighting the resilience of IHS's financial model.
- The company successfully renewed and extended all tower contracts with MTN Nigeria through 2032, significantly improving financial visibility and stability.
- IHS Holding Ltd (IHS) has made substantial progress in reducing exposure to power price volatility by moving to power pass-through and power indexation models.
- The company is on track to achieve its 2024 revenue, adjusted EBITDA, and ALFCF guidance, trending towards the upper end of its existing guidance ranges.
- IHS Holding Ltd (IHS) faced significant Forex headwinds, particularly with the Naira devaluing by 52% year-on-year, resulting in a $265 million impact.
- Revenue decreased by 10% year-on-year, reflecting a challenging Forex environment and the impact of the new financial terms with MTN Nigeria.
- The consolidated net leverage ratio increased to 3.9 times, remaining at the higher end of the company's target range.
- The company experienced a slowdown in CapEx investments, mirroring the reduced investment pace of major carriers like MTN and Airtel in Nigeria.
- Despite organic growth, the colocation rate in Nigeria decreased slightly due to tenant churn from a smaller customer.
Good day, and welcome to the IHS Holding Limited third quarter 2024 earnings results call for the three month period ended September 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 Robert Berg. Please go ahead, sir.
Thank you, operator. Thanks also to everyone for joining the call today. I'm Robert Berg, Head 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 September 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
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