IHS Holding Limited Reports Fourth Quarter and Full Year 2023 Financial Results
- Revenue decreased in Q4 2023 due to FX headwinds but showed organic growth.
- Adjusted EBITDA and ALFCF increased for both Q4 2023 and full year 2023.
- Loss was reported for both Q4 2023 and full year 2023.
- 2024 guidance forecasts positive revenue, Adjusted EBITDA, and ALFCF despite challenges from Nigerian currency devaluation.
- Company focuses on growth, efficiency, and innovation to navigate the challenging macro environment.
- Significant FX headwinds impacted revenue in Q4 2023.
- Losses were reported for both Q4 2023 and full year 2023.
- Nigerian currency devaluation poses challenges for revenue in 2024.
- The macro environment, particularly in Nigeria, continues to present operational challenges.
Insights
The reported financial results from IHS Holding Limited showcase a complex interplay between organic growth and foreign exchange volatility. The revenue increase of 8.4% for the full year, alongside a 9.9% rise in Adjusted EBITDA, indicates operational growth and efficiency improvements. However, the significant loss for the period and the impact of the Nigerian Naira devaluation are of particular interest. The devaluation has led to a substantial foreign exchange headwind, which despite being partially offset by FX protection mechanisms, poses a risk to future earnings.
Investors should note the guidance for 2024, which reflects management's expectations of continued currency challenges but also an anticipation of operational growth. The target net leverage ratio remaining at 3.0x-4.0x is indicative of the company's debt management strategy. However, the projected negative impact of $535 million on revenue due to further Naira devaluation could be a point of concern, potentially affecting investor sentiment and stock performance.
The devaluation of the Nigerian Naira by 75.3% in Q4 2023 and its continued decline in 2024 have broader implications beyond IHS's financials. This level of currency depreciation is indicative of significant macroeconomic instability in Nigeria, which could affect all businesses operating within the country. For IHS, which reported that Nigeria represented 63% of its Q4 revenue, the instability poses a substantial risk to its revenue base.
The company's decision to take a 'balanced approach to growth and cash generation' suggests a strategic shift to mitigate these risks. The reduction in capital expenditures and the focus on operating efficiencies and productivity enhancements are typical responses to such macroeconomic challenges. The emphasis on innovation and the use of AI may provide a competitive edge and operational cost savings, which could be crucial in weathering the economic turbulence in Nigeria.
From a market perspective, the performance of IHS Towers is a reflection of both the robust demand for communications infrastructure and the challenges posed by operating in volatile markets. The company's growth trends, such as the increase in lease amendments, new tenants and site developments, signal a strong demand for its services. The deal with Airtel in Nigeria, promising 3,950 new tenancies, underscores the potential for significant organic growth.
However, the reliance on the Nigerian market introduces a degree of unpredictability due to the currency's instability. Investors and analysts will likely weigh the organic growth potential against the foreign exchange risks. The ability of IHS to navigate the Nigerian economic landscape and manage its currency exposure will be critical in maintaining investor confidence and achieving its financial targets for 2024.
CONSOLIDATED HIGHLIGHTS – FOURTH QUARTER 2023
-
Revenue of
$509.8 million 3.1% (or increased48.4% organically) reflecting a$271.8 million 75.3% devaluation of the Nigerian Naira (“NGN”) when comparing the fourth quarter, 2023 to the fourth quarter, 2022 average FX rate -
Adjusted EBITDA of
$274.2 million 53.8% Adjusted EBITDA Margin) increased0.6% -
Loss for the period was
$456.8 million -
Cash from operations was
$162.1 million -
Adjusted Levered Free Cash Flow (“ALFCF”) was
$118.2 million -
Total Capex was
$130.6 million -
Introducing 2024 guidance for revenue of
$1,700 -1,730 million$935 -955 million$285 -305 million$330 -370 million
CONSOLIDATED HIGHLIGHTS – FULL YEAR 2023
-
Revenue of
$2,125.5 million 8.4% (or36.9% organically) reflecting a$615.7 million 44.4% devaluation of the NGN when comparing 2023 to 2022 average FX rate -
Adjusted EBITDA of
$1,132.5 million 53.3% Adjusted EBITDA Margin) increased9.9% -
Loss for the period was
$1,988.2 million -
Cash from operations was
$902.9 million -
ALFCF was
$432.8 million -
Total Capex was
$586.0 million
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, “We’re reporting a strong quarter of performance across our key metrics with revenue, Adjusted EBITDA and ALFCF in line or ahead of our expectations, despite the meaningful Nigerian currency devaluation that began in June, while capex was meaningfully below expectations. Our results reflect the continued strong secular trends we are seeing across our business, including growth in lease amendments, new tenants, new sites or build-to-suits and targeted fiber roll-out. These strong growth trends should continue in 2024 as evidenced by our recently announced deal with Airtel in
The Nigerian currency, the Naira, however, continues to devalue at levels that sadly are offsetting much of these strong secular trends. From January to December 2023, the Naira suffered a
Given the macro environment we’re operating in – particularly in
Despite the currency headwinds in
RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2023
The table below sets forth select financial results for the quarters ended December 31, 2023 and December 31, 2022:
|
|
Three months ended |
|
|
Twelve months ended |
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||||||||||||
|
|
December 31, |
|
|
December 31, |
|
|
Y on Y |
|
|
December 31, |
|
|
December 31, |
|
|
Y on Y |
|
|
|
2023 |
|
|
2022 |
|
|
Growth |
|
|
2023 |
|
|
2022 |
|
|
Growth |
|
|
|
$’000 |
|
|
$’000 |
|
|
% |
|
|
$’000 |
|
|
$’000 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
509,784 |
|
|
526,167 |
|
|
(3.1 |
) |
|
2,125,539 |
|
|
1,961,299 |
|
|
8.4 |
|
Adjusted EBITDA(1) |
|
274,182 |
|
|
272,453 |
|
* |
0.6 |
|
|
1,132,535 |
|
|
1,030,931 |
|
* |
9.9 |
|
Loss for the period |
|
(456,823 |
) |
|
(268,863 |
) |
* |
(69.9 |
) |
|
(1,988,178 |
) |
|
(468,966 |
) |
* |
(323.9 |
) |
Cash from operations |
|
162,054 |
|
|
289,277 |
|
|
(44.0 |
) |
|
902,923 |
|
|
966,874 |
|
|
(6.6 |
) |
ALFCF(1) |
|
118,165 |
|
|
96,889 |
|
|
22.0 |
|
|
432,782 |
|
|
363,083 |
|
|
19.2 |
|
(1) |
|
Adjusted EBITDA and ALFCF are non-IFRS financial measures. See “Use of Non-IFRS Financial Measures” for additional information, definitions and a reconciliation to the most comparable IFRS measures. |
* |
|
Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022. |
Impact of Nigerian Naira devaluation in mid-June 2023
In mid-June 2023, the Central Bank of
The NGN fell
Due to the timing of the devaluation, the average of the USD/NGN rate used to consolidate the Group results was
The continued devaluation of the NGN in the fourth quarter of 2023 also resulted in an impact on finance costs, specifically related to unrealized FX losses of
Results for the three months ended December 31, 2023 versus 2022
During the fourth quarter of 2023, revenue was
Adjusted EBITDA was
Loss for the period was
Cash from operations and ALFCF for the fourth quarter of 2023 were
Segment results
Revenue and segment Adjusted EBITDA:
Revenue and segment Adjusted EBITDA, our key profitability measures used to assess the performance of our reportable segments, were as follows:
|
|
Revenue |
|
Segment Adjusted EBITDA |
||||||||||||
|
|
Three months ended |
|
Three months ended |
||||||||||||
|
|
December 31, |
|
December 31, |
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
|
|
2023 |
|
2022 |
|
Change |
|
|
2023 |
|
|
2022 |
|
|
Change |
|
|
|
$'000 |
|
$'000 |
|
% |
|
|
$'000 |
|
|
$'000 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
320,662 |
|
355,270 |
|
(9.7 |
) |
|
199,841 |
|
|
206,065 |
|
|
(3.0 |
) |
SSA |
|
124,016 |
|
117,492 |
|
5.6 |
|
|
62,373 |
|
|
66,555 |
|
* |
(6.3 |
) |
Latam |
|
54,331 |
|
43,891 |
|
23.8 |
|
|
41,089 |
|
|
31,425 |
|
|
30.8 |
|
MENA |
|
10,775 |
|
9,514 |
|
13.3 |
|
|
7,916 |
|
|
4,405 |
|
|
79.7 |
|
Other |
|
— |
|
— |
|
— |
|
|
(37,037 |
) |
|
(35,997 |
) |
|
(2.9 |
) |
Total |
|
509,784 |
|
526,167 |
|
(3.1 |
) |
|
274,182 |
|
|
272,453 |
|
* |
0.6 |
|
* Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.
Revenue for our
Segment Adjusted EBITDA for our
SSA
Revenue for our SSA segment increased by
Segment Adjusted EBITDA for our SSA segment was
Latam
Revenue for our Latam segment increased by
Segment Adjusted EBITDA for our Latam segment was
MENA
Revenue for our MENA segment increased by
Segment Adjusted EBITDA for our MENA segment was
Results for the twelve months ended December 31, 2023 versus 2022
During the twelve months ended December 31, 2023, revenue was
Adjusted EBITDA was
Loss for the period was
Cash from operations and ALFCF for the twelve months ended December 31, 2023 were
INVESTING ACTIVITIES
During the fourth quarter of 2023, capital expenditure (“Total Capex”) was
FINANCING ACTIVITIES AND LIQUIDITY
Below is a summary of key facilities we have entered into, repaid or amended during the fourth quarter of 2023. Approximate
IHS Holding (2020) Revolving Credit Facility
In November 2023, the IHS Holding RCF was further amended and restated to, among other things, extend the termination date to October 2026.
IHS Holding (2022) Bullet Term Loan Facility
In October 2023, the available commitments under the IHS Holding 2022 Term Loan were voluntarily reduced by
As of December 31, 2023,
IHS South Africa Overdraft
IHS SA entered into a
As of December 31, 2023,
CIV (2023) Term Loan
IHS Côte d’Ivoire S.A. entered into a facility agreement originally in December 2023 with, amongst others, certain financial institutions listed therein as original lenders, split into one tranche with a total commitment of
The CIV 2023 Term Loan has an interest rate of
The CIV 2023 Term Loan will terminate in December 2028. As of December 31, 2023, there were no amounts drawn under this facility.
Letter of Credit Facilities
As of December 31, 2023, IHS (
As of December 31, 2023, INT Towers Limited has utilized
As of December 31, 2023, ITNG Limited has utilized
As of December 31, 2023, Global Independent Connect Limited has utilized
FINANCING ACTIVITIES AND LIQUIDITY AFTER REPORTING PERIOD
Below is a summary of key facilities we have entered into, repaid or amended after the fourth quarter of 2023 up to March 8, 2024.
IHS Holding (2022) Bullet Term Loan Facility
In March 2024, the available commitments under the IHS Holding 2022 Term Loan were voluntarily reduced by
As of March 8, 2024,
CIV (2023) Term Loan
In February 2024,
As of March 8, 2024, an aggregate amount of
IHS Côte d’Ivoire S.A. Facility
The IHS Côte d’Ivoire S.A. Facility was fully repaid in February 2024 using the proceeds received from the initial drawdown of the CIV 2023 Term Loan.
IHS South Africa Overdraft
As of March 8, 2024,
As of March 8, 2024,
IHS Holding (2024) Term Facility
IHS Holding Limited entered into a
The interest rate per annum applicable to loans made under the IHS Holding 2024 Term Facility is equal to Term SOFR, plus a margin (ranging from
The IHS Holding 2024 Term Facility is scheduled to terminate on the date falling 24 months from the date of the loan agreement and is repayable in installments.
As of March 8, 2024, there are no amounts drawn down and outstanding under the IHS Holding 2024 Facility.
SHARE BUYBACK PROGRAM
In August 2023, the Company’s board of directors (the “Board”) authorized a stock repurchase program for up to
During the twelve months ended December 31, 2023, the Company repurchased a total of 1,878,657 shares for a total value of
Full Year 2024 Outlook Guidance
The following full year 2024 guidance is based on a number of assumptions that management believes to be reasonable and reflects the Company’s expectations as of March 12, 2024. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information.
The Company’s outlook is based on the following assumptions:
-
Organic revenue Y/Y growth of approximately
49% -
Average foreign currency exchange rates to
1.00 U.S. Dollar for January 1, 2024 through December 31, 2024 for key currencies: (a) 1,610 Nigerian Naira; (b)5.00 Brazilian Real (c)0.90 Euros (d)19.00 South African Rand -
Project Green capex of approximately
$10.0 million -
Build-to-suit of ~850 sites of which ~600 sites in
Brazil - Net leverage ratio target of 3.0x-4.0x
Metric |
|
Current Range |
Revenue |
|
|
Adjusted EBITDA (1) |
|
|
Adjusted Levered Free Cash Flow (1) |
|
|
Total Capex |
|
|
(1) |
|
Adjusted EBITDA and ALFCF are non-IFRS financial measures. See “Use of Non-IFRS Financial Measures” for additional information and a reconciliation to the most comparable IFRS measures. We are unable to provide a reconciliation of Adjusted EBITDA and ALFCF to (loss)/profit and cash from operations, respectively, for the periods presented above without an unreasonable effort, due to the uncertainty regarding, and the potential variability, of these costs and expenses that may be incurred in the future, including, in the case of Adjusted EBITDA, share-based payment expense, finance costs, and insurance claims, and in the case of ALFCF, cash from operations, net movement in working capital and maintenance capital expenditures, each of which adjustments may have a significant impact on these non-IFRS measures. |
Conference Call
IHS Towers will host a conference call on March 12, 2024 at 8:30am ET to review its financial and operating results. Supplemental materials will be available on the Company’s website, www.ihstowers.com. The conference call can be accessed by calling +1 646 307 1963 (
A simultaneous webcast and replay will be available in the Investor Relations section of the Company’s website, www.ihstowers.com, on the Earnings Materials page.
Upcoming Conferences and Events
IHS Towers management is expected to participate in the upcoming conferences outlined below, dates noted are subject to change. Visit www.ihstowers.com/investors/investor-presentations-events for additional conferences information.
-
J.P. Morgan 52nd Annual Global TMT Conference (
Boston ) – May 22, 2024 -
TD Cowen 52nd Annual TMT Conference (
New York ) – May 30, 2024 -
GS Digital Infrastructure (
London ) – June 5, 2024 - Barclays Emerging Markets ESG Corporate Days (virtual) – June 22, 2024
About IHS Towers
IHS Towers is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count and is one of the largest independent multinational towercos solely focused on emerging markets. The Company has over 40,000 towers across its 11 markets, including
Cautionary statement regarding forward-looking Information
This press release contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecast,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to statements regarding our future results of operations and financial position, anticipated results for the fiscal year 2024, industry and business trends, business strategy, plans, market growth, the impact of the devaluation of the Naira and other economic and geopolitical factors on our future results and operations and our objectives for future operations and our participation in upcoming presentations and events.
We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to:
- non-performance under or termination, non-renewal or material modification of our customer agreements;
- volatility in terms of timing for settlement of invoices or our inability to collect amounts due under invoices;
- a reduction in the creditworthiness and financial strength of our customers;
- the business, legal and political risks in the countries in which we operate;
- general macroeconomic conditions in the countries in which we operate;
- changes to existing or new tax laws, rates or fees;
-
foreign exchange risks, particularly in relation to the Nigerian Naira, and/or ability to hedge against such risks in our commercial agreements or access
U.S. Dollars in our markets; - the effect of regional or global health pandemics, geopolitical conflicts and wars, and acts of terrorism;
-
our inability to successfully execute our business strategy and operating plans, including our ability to increase the number of Colocations and Lease Amendments on our Towers and construct New Sites or develop business related to adjacent telecommunications verticals (including, for example, relating to our fiber businesses in
Latin America and elsewhere) or deliver on our sustainability or environmental, social and governance (ESG) strategy and initiatives under anticipated costs, timelines, and complexity, such as our Carbon Reduction Roadmap (and Project Green), including plans to reduce diesel consumption, integrate solar panel and battery storage solutions on tower sites and connect more sites to the electricity grid; - our reliance on third-party contractors or suppliers, including failure, underperformance or inability to provide products or services to us (in a timely manner or at all) due to sanctions regulations, supply chain issues or for other reasons;
- our estimates and assumptions and estimated operating results may differ materially from actual results;
- increases in operating expenses, including increased costs for diesel;
- failure to renew or extend our ground leases, or protect our rights to access and operate our Towers or other telecommunications infrastructure assets;
- loss of customers;
- risks related to our indebtedness;
- changes to the network deployment plans of mobile operators in the countries in which we operate;
- a reduction in demand for our services;
- the introduction of new technology reducing the need for tower infrastructure and/or adjacent telecommunication verticals;
- an increase in competition in the telecommunications tower infrastructure industry and/or adjacent telecommunication verticals;
- our failure to integrate recent or future acquisitions;
- the identification by management of material weaknesses in our internal control over financial reporting, which could affect our ability to produce accurate financial statements on a timely basis or cause us to fail to meet our future reporting obligations;
- increased costs, harm to reputation, or other adverse impacts related to increased intention to and evolving expectations for environmental, social and governance initiatives;
- our reliance on our senior management team and/or key employees;
- failure to obtain required approvals and licenses for some of our sites or businesses or comply with applicable regulations;
- inability to raise financing to fund future growth opportunities or operating expense reduction strategies;
- environmental liability;
- inadequate insurance coverage, property loss and unforeseen business interruption;
- compliance with or violations (or alleged violations) of laws, regulations and sanctions, including but not limited to those relating to telecommunications regulatory systems, tax, labor, employment (including new minimum wage regulations), unions, health and safety, antitrust and competition, environmental protection, consumer protection, data privacy and protection, import/export, foreign exchange or currency, and of anti-bribery, anti-corruption and/or money laundering laws, sanctions and regulations;
- fluctuations in global prices for diesel or other materials;
- disruptions in our supply of diesel or other materials;
- legal and arbitration proceedings;
- our reliance on shareholder support (including to invest in growth opportunities) and related party transaction risks;
- risks related to the markets in which we operate, including but not limited to local community opposition to some of our sites or infrastructure, and the risks from our investments into emerging and other less developed markets;
- injury, illness or death of employees, contractors or third parties arising from health and safety incidents;
- loss or damage of assets due to security issues or civil commotion;
- loss or damage resulting from attacks on any information technology system or software;
- loss or damage of assets due to extreme weather events whether or not due to climate change;
- failure to meet the requirements of accurate and timely financial reporting and/or meet the standards of internal control over financial reporting that support a clean certification under the Sarbanes Oxley Act;
- risks related to our status as a foreign private issuer; and
- the important factors discussed in the section titled “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023.
The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this press release and the documents that we reference in this press release with the understanding that our actual future results, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Additionally, we may provide information herein that is not necessarily “material” under the federal securities laws for SEC reporting purposes, but that is informed by various ESG standards and frameworks (including standards for the measurement of underlying data), and the interests of various stakeholders. Much of this information is subject to assumptions, estimates or third-party information that is still evolving and subject to change. For example, we note that standards and expectations regarding greenhouse gas (GHG) accounting and the processes for measuring and counting GHG emissions and GHG emissions reductions are evolving, and it is possible that our approaches both to measuring our emissions and any reductions may be at some point, either currently or in future, considered by certain parties to not be in keeping with best practices. In addition, our disclosures based on any standards may change due to revisions in framework requirements, availability of information, changes in our business or applicable government policies, or other factors, some of which may be beyond our control. These forward-looking statements speak only as of the date of this press release. Except as required by applicable law, we do not assume, and expressly disclaim, any obligation to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.
IHS HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF LOSS AND OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2022 |
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|
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|
|
|
||||||||
|
Three months ended |
|
|
Twelve months ended |
||||||||
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
||
|
2023 |
|
|
2022* |
|
|
2023 |
|
|
2022* |
||
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
||
|
|
|
|
|
||||||||
Revenue |
509,784 |
|
526,167 |
|
2,125,539 |
|
1,961,299 |
|
||||
Cost of sales |
(220,678 |
) |
(338,203 |
) |
(1,183,306 |
) |
(1,157,001 |
) |
||||
Administrative expenses |
(112,906 |
) |
(216,234 |
) |
(404,783 |
) |
(501,175 |
) |
||||
(Net loss allowance)/net reversal of loss allowance on trade receivables |
(1,977 |
) |
1,049 |
|
(7,202 |
) |
4,446 |
|
||||
Other income |
35 |
|
469 |
|
404 |
|
4,676 |
|
||||
Operating profit |
174,258 |
|
(26,752 |
) |
530,652 |
|
312,245 |
|
||||
Finance income |
8,420 |
|
4,790 |
|
25,209 |
|
15,825 |
|
||||
Finance costs |
(621,091 |
) |
(297,968 |
) |
(2,436,511 |
) |
(872,049 |
) |
||||
Loss before income tax |
(438,413 |
) |
(319,930 |
) |
(1,880,650 |
) |
(543,979 |
) |
||||
Income tax (expense)/benefit |
(18,410 |
) |
51,067 |
|
(107,528 |
) |
75,013 |
|
||||
Loss for the period |
(456,823 |
) |
(268,863 |
) |
(1,988,178 |
) |
(468,966 |
) |
||||
|
|
|
|
|
||||||||
Loss attributable to: |
|
|
|
|
||||||||
Owners of the Company |
(453,588 |
) |
(268,066 |
) |
(1,976,609 |
) |
(459,007 |
) |
||||
Non‑controlling interests |
(3,235 |
) |
(797 |
) |
(11,569 |
) |
(9,959 |
) |
||||
Loss for the period |
(456,823 |
) |
(268,863 |
) |
(1,988,178 |
) |
(468,966 |
) |
||||
|
|
|
|
|
||||||||
Loss per share—basic $ |
(1.36 |
) |
(0.81 |
) |
(5.93 |
) |
(1.39 |
) |
||||
Loss per share—diluted $ |
(1.36 |
) |
(0.81 |
) |
(5.93 |
) |
(1.39 |
) |
||||
|
|
|
|
|
||||||||
Other comprehensive income/(loss): |
|
|
|
|
||||||||
Items that may be reclassified to profit or loss |
|
|
|
|
||||||||
Fair value gain through other comprehensive income |
5 |
|
— |
|
12 |
|
— |
|
||||
Exchange differences on translation of foreign operations |
336,001 |
|
115,970 |
|
970,796 |
|
72,661 |
|
||||
Other comprehensive income/(loss) for the period, net of taxes |
336,006 |
|
115,970 |
|
970,808 |
|
72,661 |
|
||||
|
|
|
|
|
||||||||
Total comprehensive loss for the period |
(120,817 |
) |
(152,893 |
) |
(1,017,370 |
) |
(396,305 |
) |
||||
|
|
|
|
|
||||||||
Total comprehensive loss attributable to: |
|
|
|
|
||||||||
Owners of the Company |
(129,142 |
) |
(159,267 |
) |
(1,025,754 |
) |
(399,486 |
) |
||||
Non‑controlling interests |
8,325 |
|
6,374 |
|
8,384 |
|
3,181 |
|
||||
Total comprehensive loss for the period |
(120,817 |
) |
(152,893 |
) |
(1,017,370 |
) |
(396,305 |
) |
||||
*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.
IHS HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT DECEMBER 31, 2023 AND DECEMBER 31, 2022 |
||||||
|
|
|
|
|
||
|
|
December 31, |
|
December 31, |
||
|
|
2023 |
|
|
2022* |
|
|
|
$’000 |
|
$’000 |
||
Non‑current assets |
|
|
|
|
||
Property, plant and equipment |
|
1,740,235 |
|
|
2,075,441 |
|
Right of use assets |
|
886,909 |
|
|
965,019 |
|
Goodwill |
|
619,298 |
|
|
763,388 |
|
Other intangible assets |
|
933,030 |
|
|
1,049,103 |
|
Fair value through other comprehensive income financial assets |
|
13 |
|
|
10 |
|
Deferred income tax assets |
|
63,786 |
|
|
78,369 |
|
Derivative financial instrument assets |
|
1,540 |
|
|
6,121 |
|
Trade and other receivables |
|
147,292 |
|
|
130,347 |
|
|
|
4,392,103 |
|
|
5,067,798 |
|
Current assets |
|
|
|
|
||
Inventories |
|
40,589 |
|
|
74,216 |
|
Income tax receivable |
|
3,755 |
|
|
1,174 |
|
Derivative financial instrument assets |
|
565 |
|
|
— |
|
Trade and other receivables |
|
607,835 |
|
|
663,467 |
|
Cash and cash equivalents |
|
293,823 |
|
|
514,078 |
|
Assets held for sale |
|
26,040 |
|
|
— |
|
|
|
972,607 |
|
|
1,252,935 |
|
TOTAL ASSETS |
|
5,364,710 |
|
|
6,320,733 |
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Trade and other payables |
|
532,627 |
|
|
669,149 |
|
Provisions for other liabilities and charges |
|
277 |
|
|
483 |
|
Derivative financial instrument liabilities |
|
68,133 |
|
|
1,393 |
|
Income tax payable |
|
75,612 |
|
|
70,008 |
|
Borrowings |
|
454,151 |
|
|
438,114 |
|
Lease liabilities |
|
91,156 |
|
|
87,240 |
|
|
|
1,221,956 |
|
|
1,266,387 |
|
Non‑current liabilities |
|
|
|
|
||
Trade and other payables |
|
4,629 |
|
|
1,459 |
|
Borrowings |
|
3,056,696 |
|
|
2,906,288 |
|
Lease liabilities |
|
510,838 |
|
|
518,318 |
|
Provisions for other liabilities and charges |
|
86,131 |
|
|
84,533 |
|
Deferred income tax liabilities |
|
137,106 |
|
|
183,518 |
|
|
|
3,795,400 |
|
|
3,694,116 |
|
TOTAL LIABILITIES |
|
5,017,356 |
|
|
4,960,503 |
|
|
|
|
|
|
||
Stated capital |
|
5,394,812 |
|
|
5,311,953 |
|
Accumulated losses |
|
(5,293,394 |
) |
|
(3,317,652 |
) |
Other reserves |
|
8,430 |
|
|
(861,271 |
) |
Equity attributable to owners of the Company |
|
109,848 |
|
|
1,133,030 |
|
Non‑controlling interest |
|
237,506 |
|
|
227,200 |
|
TOTAL EQUITY |
|
347,354 |
|
|
1,360,230 |
|
TOTAL EQUITY AND LIABILITIES |
|
5,364,710 |
|
|
6,320,733 |
|
*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.
IHS HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2022 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Attributable to owners of the Company |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non‑ |
|
|
|
|
|
|
Stated |
|
|
Accumulated |
|
|
Other |
|
|
|
|
|
controlling |
|
|
Total |
|
|
|
capital |
|
|
losses |
|
|
reserves |
|
|
Total |
|
|
interest |
|
|
equity |
|
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at Jan 1, 2022 |
|
5,223,484 |
|
|
(2,860,205 |
) |
|
(842,911 |
) |
|
1,520,368 |
|
|
223,188 |
|
|
1,743,556 |
|
NCI arising on business combination |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
831 |
|
|
831 |
|
Options converted to shares |
|
88,469 |
|
|
— |
|
|
(88,469 |
) |
|
— |
|
|
— |
|
|
— |
|
Share-based payment expense |
|
— |
|
|
— |
|
|
13,423 |
|
|
13,423 |
|
|
— |
|
|
13,423 |
|
Other reclassifications related to share-based payment |
|
— |
|
|
1,560 |
|
|
(2,835 |
) |
|
(1,275 |
) |
|
— |
|
|
(1,275 |
) |
Total transactions with owners of the Company |
|
88,469 |
|
|
1,560 |
|
|
(77,881 |
) |
|
12,148 |
|
|
831 |
|
|
12,979 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss for the year* |
|
— |
|
|
(459,007 |
) |
|
— |
|
|
(459,007 |
) |
|
(9,959 |
) |
|
(468,966 |
) |
Other comprehensive income* |
|
— |
|
|
— |
|
|
59,521 |
|
|
59,521 |
|
|
13,140 |
|
|
72,661 |
|
Total comprehensive (loss)/income* |
|
— |
|
|
(459,007 |
) |
|
59,521 |
|
|
(399,486 |
) |
|
3,181 |
|
|
(396,305 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at Dec 31, 2022 |
|
5,311,953 |
|
|
(3,317,652 |
) |
|
(861,271 |
) |
|
1,133,030 |
|
|
227,200 |
|
|
1,360,230 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at Jan 1, 2023 |
|
5,311,953 |
|
|
(3,317,652 |
) |
|
(861,271 |
) |
|
1,133,030 |
|
|
227,200 |
|
|
1,360,230 |
|
Shares repurchased and canceled through buyback program |
|
(10,037 |
) |
|
— |
|
|
— |
|
|
(10,037 |
) |
|
— |
|
|
(10,037 |
) |
NCI arising on business combination |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,922 |
|
|
1,922 |
|
Options converted to shares |
|
92,896 |
|
|
— |
|
|
(92,896 |
) |
|
— |
|
|
— |
|
|
— |
|
Share-based payment expense |
|
— |
|
|
— |
|
|
13,168 |
|
|
13,168 |
|
|
— |
|
|
13,168 |
|
Other reclassifications related to share-based payment |
|
— |
|
|
867 |
|
|
(1,426 |
) |
|
(559 |
) |
|
— |
|
|
(559 |
) |
Total transactions with owners of the Company |
|
82,859 |
|
|
867 |
|
|
(81,154 |
) |
|
2,572 |
|
|
1,922 |
|
|
4,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss for the year |
|
— |
|
|
(1,976,609 |
) |
|
— |
|
|
(1,976,609 |
) |
|
(11,569 |
) |
|
(1,988,178 |
) |
Other comprehensive income |
|
— |
|
|
— |
|
|
950,855 |
|
|
950,855 |
|
|
19,953 |
|
|
970,808 |
|
Total comprehensive (loss)/income |
|
— |
|
|
(1,976,609 |
) |
|
950,855 |
|
|
(1,025,754 |
) |
|
8,384 |
|
|
(1,017,370 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at Dec 31, 2023 |
|
5,394,812 |
|
|
(5,293,394 |
) |
|
8,430 |
|
|
109,848 |
|
|
237,506 |
|
|
347,354 |
|
*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022
IHS HOLDING LIMITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2023 AND 2022 |
||||||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
Twelve months ended |
|||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
$’000 |
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
162,054 |
|
|
289,277 |
|
|
902,923 |
|
|
966,874 |
|
Income taxes paid |
|
(3,004 |
) |
|
(4,791 |
) |
|
(45,411 |
) |
|
(51,245 |
) |
Payment for rent |
|
431 |
|
|
(2,678 |
) |
|
(3,716 |
) |
|
(7,983 |
) |
Payment for tower and tower equipment decommissioning |
|
(16 |
) |
|
(165 |
) |
|
(343 |
) |
|
(343 |
) |
Net cash generated from operating activities |
|
159,465 |
|
|
281,643 |
|
|
853,453 |
|
|
907,303 |
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
(81,441 |
) |
|
(93,654 |
) |
|
(464,897 |
) |
|
(378,521 |
) |
Payment in advance for property, plant and equipment |
|
(22,145 |
) |
|
(25,371 |
) |
|
(111,065 |
) |
|
(165,154 |
) |
Purchase of software and licenses |
|
(3,141 |
) |
|
(2,457 |
) |
|
(22,811 |
) |
|
(15,695 |
) |
Consideration paid on business combinations, net of cash acquired |
|
— |
|
|
177 |
|
|
(4,486 |
) |
|
(735,740 |
) |
Proceeds from disposal of property, plant and equipment |
|
1,451 |
|
|
717 |
|
|
2,919 |
|
|
1,826 |
|
Insurance claims received |
|
11 |
|
|
406 |
|
|
321 |
|
|
2,100 |
|
Interest income received |
|
7,670 |
|
|
4,790 |
|
|
25,008 |
|
|
15,170 |
|
Net movement in short-term deposits |
|
4,069 |
|
|
(44,896 |
) |
|
(147,238 |
) |
|
(241,274 |
) |
Net cash used in investing activities |
|
(93,526 |
) |
|
(160,288 |
) |
|
(722,249 |
) |
|
(1,517,288 |
) |
|
|
|
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||||
Transactions with non-controlling interest |
|
— |
|
|
— |
|
|
— |
|
|
11 |
|
Shares repurchased and canceled through buyback program |
|
(4,324 |
) |
|
— |
|
|
(10,037 |
) |
|
— |
|
Bank loans and bond proceeds received (net of transaction costs) |
|
9,660 |
|
|
428,595 |
|
|
986,604 |
|
|
1,263,272 |
|
Bank loans and bonds repaid |
|
(45,349 |
) |
|
(392,293 |
) |
|
(689,940 |
) |
|
(506,504 |
) |
Fees on loans and derivative instruments |
|
(4,621 |
) |
|
(7,352 |
) |
|
(19,441 |
) |
|
(19,911 |
) |
Interest paid |
|
(74,911 |
) |
|
(60,828 |
) |
|
(299,029 |
) |
|
(234,567 |
) |
Payment for the principal of lease liabilities |
|
(13,428 |
) |
|
(22,802 |
) |
|
(72,854 |
) |
|
(76,629 |
) |
Interest paid for lease liabilities |
|
(17,744 |
) |
|
(9,525 |
) |
|
(58,443 |
) |
|
(36,178 |
) |
Margin received on non-deliverable forwards |
|
— |
|
|
— |
|
|
— |
|
|
12,854 |
|
Premium paid on derivative instruments |
|
— |
|
|
(910 |
) |
|
— |
|
|
(910 |
) |
Profits received/(losses settled) on derivative instruments |
|
222 |
|
|
(252 |
) |
|
839 |
|
|
(3,197 |
) |
Net cash (used in)/generated from financing activities |
|
(150,495 |
) |
|
(65,367 |
) |
|
(162,301 |
) |
|
398,241 |
|
|
|
|
|
|
|
|
|
|
||||
Net (decrease)/increase in cash and cash equivalents |
|
(84,556 |
) |
|
55,988 |
|
|
(31,097 |
) |
|
(211,744 |
) |
Cash and cash equivalents at beginning of year |
|
425,436 |
|
|
530,468 |
|
|
514,078 |
|
|
916,488 |
|
Effect of movements in exchange rates on cash |
|
(47,057 |
) |
|
(72,378 |
) |
|
(189,158 |
) |
|
(190,666 |
) |
Cash and cash equivalents at end of year |
|
293,823 |
|
|
514,078 |
|
|
293,823 |
|
|
514,078 |
|
Use of Non-IFRS financial measures
Certain parts of this press release contain non-IFRS financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Levered Free Cash Flow (“ALFCF”). The non-IFRS financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with IFRS, and may be different from similarly titled non-IFRS measures used by other companies.
We define Adjusted EBITDA (including by segment) as profit/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, business combination transaction costs, impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent on the decommissioning of sites, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, listing costs and certain other items that management believes are not indicative of the core performance of our business. The most directly comparable IFRS measure to Adjusted EBITDA is our profit/(loss) for the period.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the applicable period, expressed as a percentage.
We believe that Adjusted EBITDA is an indicator of the operating performance of our core business. We believe Adjusted EBITDA and Adjusted EBITDA Margin, as defined above, are useful to investors and are used by our management for measuring profitability and allocating resources, because they exclude the impact of certain items which have less bearing on our core operating performance. We believe that utilizing Adjusted EBITDA and Adjusted EBITDA Margin allows for a more meaningful comparison of operating fundamentals between companies within our industry by eliminating the impact of capital structure and taxation differences between the companies.
Adjusted EBITDA measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to us, many of which present an Adjusted EBITDA-related performance measure when reporting their results.
Adjusted EBITDA and Adjusted EBITDA Margin are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. You should exercise caution in comparing Adjusted EBITDA and Adjusted EBITDA Margin as reported by us to Adjusted EBITDA and Adjusted EBITDA Margin as reported by other companies. Adjusted EBITDA and Adjusted EBITDA Margin are unaudited and have not been prepared in accordance with IFRS.
Adjusted EBITDA and Adjusted EBITDA Margin are not measures of performance under IFRS and you should not consider these as an alternative to profit/(loss) for the period or other financial measures determined in accordance with IFRS.
Adjusted EBITDA and Adjusted EBITDA Margin have limitations as analytical tools, and you should not consider them in isolation. Some of these limitations are:
- they do not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on our indebtedness;
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often need to be replaced in the future and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect any cash requirements that would be required for such replacements;
- some of the items we eliminate in calculating Adjusted EBITDA and Adjusted EBITDA Margin reflect cash payments that have less bearing on our core operating performance, but that impact our operating results for the applicable period; and
- the fact that other companies in our industry may calculate Adjusted EBITDA and Adjusted EBITDA Margin differently than we do, which limits their usefulness as comparative measures.
Accordingly, prospective investors should not place undue reliance on Adjusted EBITDA or Adjusted EBITDA Margin.
We define ALFCF as cash from operations, before certain items of income or expenditure that management believes are not indicative of the core cash flow of our business (to the extent that these items of income and expenditure are included within cash flow from operating activities), and after taking into account net working capital movements, net interest paid or received, withholding tax, income taxes paid, lease payments made, maintenance capital expenditure, and routine corporate capital expenditure. We believe that it is important to measure the free cash flows we have generated from operations, after accounting for the cash cost of funding and routine capital expenditure required to generate those cash flows. Starting in the third quarter 2023, we replaced Recurring Levered Free Cash Flow (“RLFCF”) with ALFCF. Unlike RLFCF, ALFCF only includes the cash costs of business combination transaction costs, other costs and other income and excludes the reversal of movements in the net loss allowance on trade receivables and impairment of inventory to better reflect the liquidity position in each period. There is otherwise no change in the definition or calculation of this metric for the periods presented as a result of the name change.
We believe ALFCF is useful to investors because it is also used by our management for measuring our operating cash flow, liquidity and allocating resources. While Adjusted EBITDA provides management with a basis for assessing its current operating performance, we use ALFCF in order to assess the long-term, sustainable operating liquidity of our business. ALFCF is derived through an understanding of the funds generated from operations, taking into account our capital structure and the taxation environment (including withholding tax implications), as well as the impact of non-discretionary maintenance capital expenditure and routine corporate capital expenditure. ALFCF provides management with a metric through which to measure the underlying cash generation of the business by further adjusting for expenditure that are non-discretionary in nature (such as interest paid and income taxes paid), as well as certain cash items that impact cash from operations in any particular period.
ALFCF and similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to us, many of which present an ALFCF-related measure when reporting their results. Such measures are used in the telecommunications infrastructure sector as they are seen to be important in assessing the liquidity of a business. We present ALFCF to provide investors with a meaningful measure for comparing our liquidity to those of other companies, particularly those in our industry.
ALFCF and similar measures are used by different companies for differing purposes and are often calculated in ways that reflect the circumstances of those companies. You should exercise caution in comparing ALFCF as reported by us to ALFCF or similar measures as reported by other companies. ALFCF is unaudited and has not been prepared in accordance with IFRS.
ALFCF is not intended to replace cash from operations for the period or any other measures of cash flow under IFRS. ALFCF has limitations as an analytical tool, and you should not consider it in isolation. Some of these limitations are:
- not all cash changes are reflected, for example, changes in working capital are not included and discretionary capital expenditure are not included;
- some of the items that we eliminate in calculating ALFCF reflect cash payments that have less bearing on our liquidity, but that impact our operating results for the applicable period;
- the fact that certain cash charges, such as lease payments made, can include payments for multiple future years that are not reflective of operating results for the applicable period, which may result in lower lease payments for subsequent periods;
- the fact that other companies in our industry may have different capital structures and applicable tax regimes, which limits its usefulness as a comparative measure; and
- the fact that other companies in our industry may calculate ALFCF differently than we do, which limits their usefulness as comparative measures.
Accordingly, you should not place undue reliance on ALFCF.
Reconciliation from profit for the period to Adjusted EBITDA and Adjusted EBITDA Margin
The following is a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable IFRS measure, which is profit for the three and twelve months ended December 31, 2023 and 2022:
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
Twelve months ended |
|||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022* |
|
|
2023 |
|
|
2022* |
|
|
|
$'000 |
|
|
$'000 |
|
|
$'000 |
|
|
$'000 |
|
|
|
|
|
|
|
|
|
|
||||
Loss for the period |
|
(456,823 |
) |
|
(268,863 |
) |
|
(1,988,178 |
) |
|
(468,966 |
) |
Divided by total Revenue |
|
509,784 |
|
|
526,167 |
|
|
2,125,539 |
|
|
1,961,299 |
|
Loss margin for the period |
|
(89.6 |
)% |
|
(51.1 |
)% |
|
(93.5 |
)% |
|
(23.9 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|
||||
Income tax expense/(benefit) |
|
18,410 |
|
|
(51,067 |
) |
|
107,528 |
|
|
(75,013 |
) |
Finance costs(a) |
|
621,091 |
|
|
297,968 |
|
|
2,436,511 |
|
|
872,049 |
|
Finance income(a) |
|
(8,420 |
) |
|
(4,790 |
) |
|
(25,209 |
) |
|
(15,825 |
) |
Depreciation and amortization |
|
95,205 |
|
|
128,729 |
|
|
435,586 |
|
|
468,904 |
|
Impairment of withholding tax receivables(b) |
|
12,880 |
|
|
13,193 |
|
|
47,992 |
|
|
52,334 |
|
Impairment of goodwill |
|
— |
|
|
121,596 |
|
|
— |
|
|
121,596 |
|
Business combination transaction costs |
|
785 |
|
|
2,924 |
|
|
2,432 |
|
|
20,851 |
|
Net (reversal of impairment)/impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent(c) |
|
(20,814 |
) |
|
36,389 |
|
|
87,696 |
|
|
38,157 |
|
Net (gain)/loss on disposal of property, plant and equipment |
|
(2,854 |
) |
|
(10,268 |
) |
|
(3,806 |
) |
|
3,382 |
|
Share-based payment expense(d) |
|
3,799 |
|
|
3,513 |
|
|
13,370 |
|
|
13,265 |
|
Insurance claims(e) |
|
(11 |
) |
|
(406 |
) |
|
(321 |
) |
|
(2,092 |
) |
Other costs(f) |
|
10,958 |
|
|
3,598 |
|
|
19,017 |
|
|
4,873 |
|
Other income(g) |
|
(24 |
) |
|
(63 |
) |
|
(83 |
) |
|
(2,584 |
) |
Adjusted EBITDA |
|
274,182 |
|
|
272,453 |
|
|
1,132,535 |
|
|
1,030,931 |
|
Divided by total Revenue |
|
509,784 |
|
|
526,167 |
|
|
2,125,539 |
|
|
1,961,299 |
|
Adjusted EBITDA Margin |
|
53.8 |
% |
|
51.8 |
% |
|
53.3 |
% |
|
52.6 |
% |
*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022
(a) |
|
Finance costs consist of interest expense and loan facility fees on borrowings, the unwinding of the discount on our decommissioning liability and lease liability, realized and unrealized net FX losses arising from financing arrangements and net realized and unrealized losses from valuations of financial instruments. Finance income consists of interest income from bank deposits, realized and unrealized net FX gains arising from financing arrangements and net realized and unrealized gains from valuations of financial instruments. |
(b) |
|
Revenue withholding tax primarily represents amounts withheld by customers in |
(c) |
|
Represents non-cash charges related to the impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent on the decommissioning of sites. Following a more detailed assessment of the assets held for sale and related forecast cash flows, a change in accounting estimate has resulted in the reversal of the customer relationship intangible impairment recognized on September 30, 2023, reducing the impairment charge for the period by |
(d) |
|
Represents credits and expense related to share-based compensation, which vary from period to period depending on timing of awards and changes to valuation inputs assumptions. |
(e) |
|
Represents insurance claims included as non-operating income. |
(f) |
|
Other costs for the three months ended December 31, 2023, included one-off consulting fees related to corporate structures and operating systems of |
(g) |
|
Other income for the twelve months ended December 31, 2022, related to a tax indemnity receipt from a seller relating to a prior acquisition. |
Reconciliation from cash from operations to ALFCF
The following is a reconciliation of ALFCF to the most directly comparable IFRS measure, which is cash from operations for the three and twelve months December 31, 2023 and 2022:
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
Twelve months ended |
|||||||
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
$'000 |
|
|
$'000 |
|
|
$'000 |
|
|
$'000 |
|
|
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
162,054 |
|
|
289,277 |
|
|
902,923 |
|
|
966,874 |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||
Net movement in working capital |
|
104,002 |
|
|
(21,655 |
) |
|
224,982 |
|
|
46,240 |
|
Income taxes paid |
|
(3,004 |
) |
|
(4,791 |
) |
|
(45,411 |
) |
|
(51,245 |
) |
Withholding tax(a) |
|
(27,473 |
) |
|
(31,312 |
) |
|
(117,561 |
) |
|
(116,147 |
) |
Lease and rent payments made |
|
(30,741 |
) |
|
(35,005 |
) |
|
(135,013 |
) |
|
(120,790 |
) |
Net interest paid(b) |
|
(67,241 |
) |
|
(56,038 |
) |
|
(274,021 |
) |
|
(219,397 |
) |
Business combination transaction costs |
|
2,356 |
|
|
4,505 |
|
|
6,792 |
|
|
21,389 |
|
Other costs(c) |
|
4,482 |
|
|
2,632 |
|
|
12,229 |
|
|
8,385 |
|
Other income(d) |
|
— |
|
|
— |
|
|
— |
|
|
(2,500 |
) |
Maintenance capital expenditure(e) |
|
(25,680 |
) |
|
(48,676 |
) |
|
(139,958 |
) |
|
(166,357 |
) |
Corporate capital expenditure(f) |
|
(590 |
) |
|
(2,048 |
) |
|
(2,180 |
) |
|
(3,369 |
) |
ALFCF |
|
118,165 |
|
|
96,889 |
|
|
432,782 |
|
|
363,083 |
|
|
|
|
|
|
|
|
|
|
||||
Non-controlling interest |
|
(1,674 |
) |
|
(1,269 |
) |
|
(8,900 |
) |
|
(6,066 |
) |
ALFCF excluding non-controlling interest |
|
116,491 |
|
|
95,620 |
|
|
423,882 |
|
|
357,017 |
|
(a) |
|
Withholding tax primarily represents amounts withheld by customers which may be recoverable through an offset against future corporate income tax liabilities in the relevant operating company. |
(b) |
|
Represents the aggregate value of interest paid and interest income received. |
(c) |
|
Other costs for the three and twelve months ended December 31, 2023 included one-off consulting fees related to corporate structures and operating systems and one-off consulting services and one-off professional fees related to financing. Other costs for the three months and twelve months ended December 31, 2022 included professional costs related to Sarbanes-Oxley (SOX) implementation costs along with professional fees and system implementation costs. |
(d) |
|
Other income for the twelve months ended December 31, 2022 related to a tax indemnity receipt from a seller relating to a prior acquisition. |
(e) |
|
We incur capital expenditure in relation to the maintenance of our towers and fiber equipment, which is non-discretionary in nature and required in order for us to optimally run our portfolio and to perform in line with our service level agreements with customers. Maintenance capital expenditure includes the periodic repair, refurbishment and replacement of tower, fiber equipment and power equipment at existing sites to keep such assets in service. |
(f) |
|
Corporate capital expenditure, which are non-discretionary in nature, consist primarily of routine spending on information technology infrastructure. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240312788175/en/
Source: IHS Holding Limited
FAQ
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