IHS Holding Limited Reports Fourth Quarter and Full Year 2024 Financial Results
FULL YEAR 2024 FINANCIAL RESULTS AHEAD OF GUIDANCE
SIGNIFICANT PROGRESS MADE DELIVERING STRATEGIC REVIEW
CONSOLIDATED HIGHLIGHTS – FOURTH QUARTER AND FULL YEAR 2024
The table below sets forth the select financial results for the three months and twelve months ended December 31, 2024 and December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three months ended December 31, |
|
Full year ended December 31, |
|||||||||||||
|
|
2024 |
|
2023 |
|
|
Change |
|
2024 |
|
2023 |
|
Change |
||||
|
|
$’million |
|
$’million |
|
% |
|
$’million |
|
$’million |
|
% |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue |
|
437.8 |
|
509.8 |
|
|
(14.1 |
) |
|
1,711.2 |
|
|
2,125.5 |
|
|
(19.5 |
) |
Adjusted EBITDA(1) |
|
246.4 |
|
274.2 |
|
|
(10.1 |
) |
|
928.4 |
|
|
1,132.5 |
|
|
(18.0 |
) |
Income/(loss) for the period |
|
243.1 |
|
(456.8 |
) |
|
153.2 |
|
|
(1,644.2 |
) |
|
(1,988.2 |
) |
|
17.3 |
|
Cash from operations |
|
348.8 |
|
162.1 |
|
|
115.3 |
|
|
775.9 |
|
|
902.9 |
|
|
(14.1 |
) |
ALFCF(1) |
|
107.1 |
|
118.2 |
|
|
(9.3 |
) |
|
304.2 |
|
|
432.8 |
|
|
(29.7 |
) |
(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. |
|||||||||||||||||
FOURTH QUARTER 2024
Financial Highlights
-
Revenue of
$437.8 million 4.2% compared to the third quarter of 2024 with continued growth in revenue from Colocation, Lease Amendments and New Sites, more than offsetting the slight depreciation of the Nigerian Naira (“NGN”) versus theU.S. dollar (“USD”) -
Revenue decreased
14.1% year-on-year and increased39.3% on an organic basis. Organic growth was driven by9.2% Constant Currency(1) growth with the remainder a result of foreign exchange (“FX”) resets and power indexation, which helped to mitigate the non-core decline of53.1% primarily driven by the50.0% NGN devaluation, the majority of which occurred during the first quarter of 2024 -
Adjusted EBITDA of
$246.4 million 10.1% year-on-year) reached an Adjusted EBITDA Margin of56.3% , an increase of 250 basis points year-on-year, driven by continued financial discipline -
Income for the period was
$243.1 million $169.9 million -
Adjusted Levered Free Cash Flow (“ALFCF”) of
$107.1 million $348.8 million -
Capital expenditure (“Total Capex”) of
$82.6 million 36.8% year-on-year, reflecting actions being taken to improve cash generation - Full year 2024 financial results ahead of guidance across all metrics
- Consolidated net leverage ratio(2) of 3.7x, down 0.2x from the third quarter of 2024, within the target of 3.0x-4.0x
Strategic and Operational Highlights
-
Completed the disposal of IHS Towers’
70% interest in IHS Kuwait Limited at an Enterprise Value(3) of$230 million -
Extended maturity profile and shifted more debt into local currency through a
$439 million $430 million -
Raised
$1.2 billion -
Reduced volatility of the NGN compared to earlier in the year, with
8.0% appreciation versus the USD during the quarter. Continued USD availability, with$153 million Nigeria alone in the quarter - Continued organic growth in Towers (39,229) and Tenants (59,343) reaching a Colocation Rate of 1.51x at the end of the fourth quarter. Lease Amendments increased to 39,671 during the period
(1) “Constant Currency” combines the impact from CPI escalation, New Sites, new Colocation, new Lease Amendments, fiber and other revenues, as captured in organic revenue. Refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for the definition of organic revenue and additional information.
(2) Refer to note 4(e) in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for further information on the calculation of this figure.
(3) Enterprise Value” is defined as anticipated cash consideration to be received (as of December 2, 2024, the date of transaction announcement) plus borrowings less cash in the business and stated for a
FULL YEAR 2024
Financial Highlights
-
Revenue of
$1,711.2 million 19.5% (and increased by48.1% on an organic basis) year-on-year, primarily driven by the non-core impact of the57% devaluation of the Nigerian Naira -
Organic revenue growth was driven by
6.5% Constant Currency growth, with continued growth in revenue from Colocation, Lease Amendments and New Sites, with the remainder a result of FX resets and power indexation -
Adjusted EBITDA of
$928.4 million 54.3% , an increase of 100 basis points year-on-year, reflecting continued cost control -
Loss for the period was
$1,644.2 million $1,610.7 million -
ALFCF was
$304.2 million $775.9 million -
Total Capex of
$255.9 million 56.3% year-on-year, reflecting a narrowed focus on capital allocation
Strategic and Operational Highlights
- Initiated strategic review in March 2024 targeted at shareholder value-creation options with significant progress made:
-
Material commercial progress including the renewal and extension of all MTN tower MLAs and extension of Airtel Nigeria MLA, covering approximately
72% of group revenue -
Reduced risk in operating model by materially reducing exposure to power prices, with expectation to result in reduced earnings volatility. Included introducing power indexation to use fees with MTN in
Nigeria , and unbundling the power Managed Services contract with MTN inSouth Africa - Significant advances made on balance sheet strategy through extending maturity profile and shifting more debt into local currency
-
Disposal of IHS Towers’
70% interest in IHS Kuwait Limited at an Enterprise Value of$230 million
- Amended articles of association to better align governance framework with that of mature US listed companies
-
Continued USD availability, allowing us to source and upstream
$271 million Nigeria alone during the year
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, “We’re reporting a strong performance in the fourth quarter, with our key metrics revenue, Adjusted EBITDA and ALFCF all ahead of our guidance, while Total Capex was below expectations, and we saw a drop in our consolidated net leverage ratio. We believe our positive momentum reflects both the continued strong secular trends we are seeing across our business, a more stable macroeconomic environment, as well as the significant commercial and financial progress we have made during 2024 as part of our ongoing strategic review. We have de-risked our business through extending commercial contracts with Key Customers into the next decade, reduced our exposure to power prices, extended our debt maturities and completed some of our disposals target.
Looking to 2025 and beyond, we remain excited by the strong structural growth opportunities across our footprint. We believe we are well placed to leverage our market leading positions and support growing demand for our critical communications infrastructure, with growth underpinned by continued 5G deployment across our markets and an improving backdrop within our largest market
Full Year 2025 Outlook Guidance
The following full year 2025 guidance is based on a number of assumptions that management believes to be reasonable and reflects the Company’s expectations as of March 18, 2025. 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:
-
Organic revenue Y/Y growth of approximately
12% (at the mid-point) -
Average foreign currency exchange rates to
1.00 U.S. dollar for January 1, 2025, through December 31, 2025, for key currencies: (a) 1,640 Nigerian Naira; (b)5.90 Brazilian Real (c)0.96 Euros (d)18.50 South African Rand -
No contribution from
Kuwait andPeru operations sold during 2024 -
Revenue withholding tax in
Nigeria reduced from10% to2% effective January 1, 2025 -
Approximately 500 Build-to-suit sites, of which approximately 400 sites in
Brazil - Consolidated 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)/income and cash from operations, respectively, 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, insurance claims and gain on disposal of subsidiary, 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. |
||
RESULTS OF OPERATIONS FOR THE FOURTH QUARTER AND FULL YEAR 2024
Impact of Nigerian Naira devaluation
Following the steps taken by the Central Bank of
In November 2024, the Central Bank of
Set out below are the closing and average rates for the Naira currency relevant to these financial statements:
|
|
|
|
|
|
Closing Rate |
Closing Rate Movement (1) |
3- Month Average Rate |
Average Rate Movement (1) |
|
₦:$ |
$:₦ |
₦:$ |
$:₦ |
|
|
|
|
|
June 14, 2023 |
472.3 |
— |
— |
— |
June 30, 2023 |
752.7 |
(37.3)% |
508.0 |
— |
September 30, 2023 |
775.6 |
(2.9)% |
767.7 |
(33.8)% |
December 31, 2023 |
911.7 |
(14.9)% |
815.0 |
(5.8)% |
March 31, 2024 |
1,393.5 |
(34.6)% |
1,315.9 |
(38.1)% |
June 30, 2024 |
1,514.3 |
(8.0)% |
1,391.8 |
(5.4)% |
September 30, 2024 |
1,669.1 |
(9.3)% |
1,601.0 |
(13.1)% |
December 31, 2024 |
1,546.0 |
|
1,628.5 |
(1.7)% |
| (1) Movements presented for each period are between that period’s rate and the preceding period rate and are calculated as percentage of the period’s rate. | ||||
Due to the Naira devaluation, Revenue and segment Adjusted EBITDA in the fourth quarter of 2024 were negatively impacted by
Results for the three months ended December 31, 2024 versus 2023
Revenue
Revenue for the three months ended December 31, 2024 of
In December, 2024, the Company completed the disposal of its
Refer to the revenue component of the segment results section of this discussion and analysis for further details.
For the fourth quarter, the net decrease in Towers was 846 year-on-year (or a net increase of 896 year-on-year when excluding the impact of the
(1) Refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for the definition of organic revenue and additional information.
Adjusted EBITDA
Adjusted EBITDA for the fourth quarter was
Income for the period
Income for the period in the fourth quarter of 2024 was
Cash from operations
Cash from operations for the fourth quarter of 2024 was
ALFCF
ALFCF for the fourth quarter of 2024 was
SEGMENT RESULTS
Revenue and Adjusted EBITDA by segment
Set out below are Revenue and Adjusted EBITDA for each of our reportable segments for the three months ended December 31, 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Revenue |
|
Adjusted EBITDA |
|
||||||||||||
|
|
Three months ended December 31, |
|
Three months ended December 31, |
|
||||||||||||
|
|
2024 |
|
2023 |
|
Change |
|
2024 |
|
2023 |
|
Change |
|
||||
|
|
$’000 |
|
$’000 |
|
% |
|
$’000 |
|
$’000 |
|
% |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
258,870 |
|
320,662 |
|
(19.3 |
) |
|
154,871 |
|
|
199,841 |
|
|
(22.5 |
) |
|
SSA |
|
124,173 |
|
124,016 |
|
0.1 |
|
|
80,800 |
|
|
62,373 |
|
|
29.6 |
|
|
Latam |
|
44,645 |
|
54,331 |
|
(17.8 |
) |
|
37,113 |
|
|
41,089 |
|
|
(9.7 |
) |
|
MENA |
|
10,134 |
|
10,775 |
|
(5.9 |
) |
|
7,308 |
|
|
7,916 |
|
|
(7.7 |
) |
|
Unallocated corporate expenses(1) |
|
— |
|
— |
|
— |
|
|
(33,720 |
) |
|
(37,037 |
) |
|
9.0 |
|
|
Total |
|
437,822 |
|
509,784 |
|
(14.1 |
) |
|
246,372 |
|
|
274,182 |
|
|
(10.1 |
) |
|
(1) Unallocated corporate expenses primarily consist of costs associated with centralized Group functions including Group executive, legal, finance, tax and treasury services. |
|||||||||||||||||
Fourth quarter revenue decreased
Tenants decreased by 269 year-on-year, with growth of 528 from Colocation and 96 from New Sites, more than offset by 893 Churned (which includes, for the third quarter of 2024, 529 Tenants occupied by our smallest Key Customer on which we were not recognizing revenue), while Lease Amendments increased by 1,035 primarily due to 3G and fiber upgrades.
Segment Adjusted EBITDA for the fourth quarter declined
SSA
Fourth quarter revenue was broadly flat year-on-year at
Tenants increased by 835 year-on-year, including 814 from Colocation and 127 from New Sites, partially offset by 106 from Churn, while Lease Amendments increased by 1,687.
Segment Adjusted EBITDA for the fourth quarter grew
Latam
Fourth quarter revenue decreased
Tenants increased by 746 year-on-year, including 697 from New Sites and 309 from Colocation, partially offset by 194 Churned and net divestiture of 66, due to the disposal of our
Fourth quarter segment Adjusted EBITDA declined
MENA
On December 19, 2024, the Company completed the disposal of its
Fourth quarter revenue decreased
Prior to the disposal in December 2024, Tenants increased by 4 for the year, including 9 from New Sites, partially offset by 5 Churned sites, while Lease Amendments increased by 272, resulting in 1,678 Towers, 1,700 Tenants and 272 Lease Amendments. Following completion of the Kuwait Dispoal and as of December 31, 2024 these Tower, Tenants and Lease Amendments had been deconsolidated.
Segment Adjusted EBITDA was
CAPITAL EXPENDITURE
Set out below is the capital expenditure for the three months ended December 31, 2024 and 2023 for each of our reporting segments:
|
|
|
|
|
|
|
|
|
|
||
|
|
Three months ended December 31, |
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
|
Change |
|
Change |
|
||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
% |
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
33,719 |
|
66,703 |
|
(32,984 |
) |
|
(49.4 |
) |
|
SSA |
|
17,070 |
|
11,348 |
|
5,722 |
|
|
50.4 |
|
|
Latam |
|
30,951 |
|
50,809 |
|
(19,858 |
) |
|
(39.1 |
) |
|
MENA |
|
179 |
|
1,276 |
|
(1,097 |
) |
|
(86.0 |
) |
|
Other |
|
682 |
|
492 |
|
190 |
|
|
38.6 |
|
|
Total capital expenditure |
|
82,601 |
|
130,628 |
|
(48,027 |
) |
|
(36.8 |
) |
|
During the fourth quarter of 2024, capital expenditure was
The
SSA
The
Latam
The
MENA
The
Results for the full ended December 31, 2024 versus 2023
Revenue
Revenue for the full year ended December 31, 2024 of
Refer to the revenue component of the segment results section of this discussion and analysis for further details.
(1) Refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for the definition of organic revenue and additional information.
Adjusted EBITDA
Adjusted EBITDA was
Loss for the year
The year-on-year decrease in the loss for the year of
Cash from operations
Cash from operations for the full year ended 2024 was
ALFCF
ALFCF for the full year ended 2024 was
Project Green, which began in October 2022, resulted in annualized ALFCF savings of approximately
FINANCING ACTIVITIES DURING THE THREE MONTHS ENDED DECEMBER 31, 2024
Below is a summary of key facilities we have entered into, repaid or amended during the fourth quarter of 2024. Approximate
IHS Holding 2021 Notes Issuance
In November 2024, the 2026 Notes were partially redeemed, in an aggregate principal amount outstanding of
IHS Holding (2022) Bullet Term Loan
In October 2024, the drawn amount of
IHS Holding (2024) Term Loan
In November 2024, the IHS Holding 2024 Term Loan was fully prepaid using the proceeds received from the IHS Holding 2030/31 Notes.
IHS Holding 2024 Dual-Tranche Term Loan
In October 2024, IHS Holding Limited entered into and drew down on a dual-tranche
As of December 31, 2024,
IHS Holding 2024 Notes Issuance
In November 2024, IHS Holding Limited issued
The proceeds of the issuance of the IHS Holding 2030/31 Notes were used to partially redeem the principal amount of the 2026 Notes and 2027 Notes and fully prepay the IHS Holding (2024) Term Loan (including accrued and unpaid interest), fees and expenses related to the offering of the notes, and for general corporate purposes. The IHS Holding 2030/31 Notes pay interest semi-annually in arrear and the principal is repayable in full on maturity.
As of December 31, 2024, the aggregate principal amount outstanding of the IHS Holding 2030/31 Notes was
IHS Netherlands Holdco B.V. Notes
In November 2024 and December 2024, the 2027 Notes were partially redeemed, in an aggregate principal amount outstanding of
IHS Kuwait Facility
IHS Kuwait Limited was sold as part of the Kuwait Disposal that completed in December 2024.
IHS South Africa Overdraft
This overdraft facility, entered into in October 2023, expired in December 2024.
Letter of Credit Facilities
As of December 31, 2024, IHS Nigeria has utilized
As of December 31, 2024, INT Towers Limited has utilized
As of December 31, 2024, Global Independent Connect Limited has utilized
OTHER ACTIVITIES AFTER REPORTING PERIOD
Oi S.A. Judicial Recovery Plan Update
On March 13, 2025, the Group acquired
Conference Call
IHS Towers will host a conference call on March 18, 2025, 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 +1 646 233 4753 (
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.
-
Avior 2025 Corporate Summit (
South Africa ) – March 25, 2025
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 solely focused on the emerging markets. The Company has over 39,000 towers across its nine markets, including
For more information about the Company and our financial and operating results, please also refer to the 4Q24 Supplemental Information deck posted to our Investors Relations website at www.ihstowers.com/investors.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
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, future organic growth, anticipated results for the fiscal year 2025 (including our ability to enhance profitability and cash flow generation) industry and business trends, business strategy and plans, shareholder value creation (including our ongoing strategic review and related productivity enhancements and cost reductions, as well as our ability to refinance or meet our debt obligations), our market growth, position and our objectives for future operations, including our ability to maintain relationships with customers, the potential benefit of the terms of our contract renewals the impact (illustrative or otherwise) of the renewed agreements with MTN Nigeria (including certain rebased fee components) on our financial results, the impact of currency and exchange rate fluctuations (including the fluctuations of the Naira) and other economic and geopolitical factors on our future results and operations, the outcome and potential benefit of our ongoing strategic review, including our ability to make commercial progress, increase Adjusted EBITDA and cash flow generation and reduce debt, our objectives for future operations, our participation in upcoming presentations and events, and the timing of any of the foregoing.
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 to access
U.S. dollars in our markets; - the effect of regional or global health pandemics, geopolitical conflicts and wars and acts of terrorism including, but not limited to, or as a result of, political instability, religious differences, ethnicity and regionalism in emerging and less developed markets;
-
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); - our inability to manage growth;
- 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 fluctuating costs for diesel or ground leases;
- 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 tenancies or 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;
- disruptions in our supply of diesel or other materials, as well as related price fluctuations;
- 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, 2024.
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. Particularly in the ESG context, materiality is subject to various definitions that often differ from, and are generally more expansive than, the definition under US federal securities laws. 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. Additionally, references to our website and other documents contained in this press release are provided for convenience only, and their content is not incorporated by reference into this press release.
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF INCOME/(LOSS) AND OTHER COMPREHENSIVE (LOSS)/INCOME
FOR THE THREE MONTHS AND FULL YEAR ENDED DECEMBER 31, 2024 AND 2023:
|
|
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Full year ended December 31, |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
|
|
|
|
|
|
|
|
|
Revenue |
|
437,822 |
|
509,784 |
|
1,711,225 |
|
2,125,539 |
Cost of sales |
|
(227,788) |
|
(220,678) |
|
(890,533) |
|
(1,183,306) |
Administrative expenses |
|
(82,260) |
|
(112,906) |
|
(429,818) |
|
(404,783) |
(Net loss allowance)/net reversal of loss on trade receivables |
|
(2,082) |
|
(1,977) |
|
25 |
|
(7,202) |
Other income |
|
86,592 |
|
35 |
|
88,248 |
|
404 |
Operating income |
|
212,284 |
|
174,258 |
|
479,147 |
|
530,652 |
Finance income |
|
175,716 |
|
8,420 |
|
33,747 |
|
25,209 |
Finance costs |
|
(151,646) |
|
(621,091) |
|
(2,123,138) |
|
(2,436,511) |
Income/(loss) before income tax |
|
236,354 |
|
(438,413) |
|
(1,610,244) |
|
(1,880,650) |
Income tax expense |
|
6,712 |
|
(18,410) |
|
(33,957) |
|
(107,528) |
Income/(loss) for the period |
|
243,066 |
|
(456,823) |
|
(1,644,201) |
|
(1,988,178) |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Owners of the Company |
|
246,515 |
|
(453,588) |
|
(1,632,025) |
|
(1,976,609) |
Non-controlling interests |
|
(3,449) |
|
(3,235) |
|
(12,176) |
|
(11,569) |
Income/(loss) for the period |
|
243,066 |
|
(456,823) |
|
(1,644,201) |
|
(1,988,178) |
|
|
|
|
|
|
|
|
|
Income/(loss) per share ($) - basic |
|
0.74 |
|
(1.36) |
|
(4.90) |
|
(5.93) |
Income/(loss) per share ($) - diluted |
|
0.73 |
|
(1.36) |
|
(4.90) |
|
(5.93) |
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
Items that may be reclassified to income or loss |
|
|
|
|
|
|
|
|
Exchange gain recycled to income statement on disposal of subsidiary |
|
(98) |
|
— |
|
(98) |
|
— |
Exchange differences on translation of foreign operations |
|
(267,515) |
|
336,006 |
|
996,548 |
|
970,808 |
Other comprehensive (loss)/income for the period, net of taxes |
|
(267,613) |
|
336,006 |
|
996,450 |
|
970,808 |
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period |
|
(24,547) |
|
(120,817) |
|
(647,751) |
|
(1,017,370) |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Owners of the Company |
|
(21) |
|
(129,142) |
|
(592,196) |
|
(1,025,754) |
Non-controlling interests |
|
(24,526) |
|
8,325 |
|
(55,555) |
|
8,384 |
Total comprehensive loss for the period |
|
(24,547) |
|
(120,817) |
|
(647,751) |
|
(1,017,370) |
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE FULL YEAR ENDED DECEMBER 31, 2024 AND 2023:
|
|
|
|
|
|
|
2024 |
|
2023 |
|
|
$’000 |
|
$’000 |
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
1,352,645 |
|
1,740,235 |
Right-of-use assets |
|
699,057 |
|
886,909 |
Goodwill |
|
403,242 |
|
619,298 |
Other intangible assets |
|
673,952 |
|
933,030 |
Deferred income tax assets |
|
73,345 |
|
63,786 |
Derivative financial instrument assets |
|
29,410 |
|
1,540 |
Trade and other receivables |
|
121,033 |
|
147,305 |
|
|
3,352,684 |
|
4,392,103 |
Current assets |
|
|
|
|
Inventories |
|
30,746 |
|
40,589 |
Income tax receivable |
|
2,250 |
|
3,755 |
Derivative financial instrument assets |
|
— |
|
565 |
Trade and other receivables |
|
313,356 |
|
607,835 |
Cash and cash equivalents |
|
577,956 |
|
293,823 |
Assets held for sale |
|
— |
|
26,040 |
|
|
924,308 |
|
972,607 |
|
|
|
|
|
TOTAL ASSETS |
|
4,276,992 |
|
5,364,710 |
|
|
|
|
|
Non-current liabilities |
|
|
|
|
Trade and other payables |
|
5,218 |
|
4,629 |
Borrowings |
|
3,219,215 |
|
3,056,696 |
Lease liabilities |
|
470,476 |
|
510,838 |
Provisions for other liabilities and charges |
|
83,876 |
|
86,131 |
Deferred income tax liabilities |
|
100,450 |
|
137,106 |
|
|
3,879,235 |
|
3,795,400 |
Current liabilities |
|
|
|
|
Trade and other payables |
|
422,500 |
|
532,627 |
Provisions for other liabilities and charges |
|
182 |
|
277 |
Derivative financial instrument liabilities |
|
10,203 |
|
68,133 |
Income tax payable |
|
49,879 |
|
75,612 |
Borrowings |
|
128,734 |
|
454,151 |
Lease liabilities |
|
82,068 |
|
91,156 |
|
|
693,566 |
|
1,221,956 |
|
|
|
|
|
TOTAL LIABILITIES |
|
4,572,801 |
|
5,017,356 |
|
|
|
|
|
Stated capital |
|
5,403,139 |
|
5,394,812 |
Accumulated losses |
|
(6,925,419) |
|
(5,293,394) |
Other reserves |
|
1,067,701 |
|
8,430 |
Equity attributable to owners of the Company |
|
(454,579) |
|
109,848 |
Non-controlling interests |
|
158,770 |
|
237,506 |
TOTAL EQUITY |
|
(295,809) |
|
347,354 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
4,276,992 |
|
5,364,710 |
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE FULL YEAR ENDED DECEMBER 31, 2024 AND 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Attributable to owners of the Company |
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Non- |
|
|
||||||
|
|
Stated |
|
Accumulated |
|
Other |
|
|
|
controlling |
|
Total |
||||||
|
|
capital |
|
losses |
|
reserves |
|
Total |
|
interests |
|
Equity |
||||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
At January 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 |
) |
Non-controlling interests arising on business combination |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,922 |
|
|
1,922 |
|
Exercise of share options |
|
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 |
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
At December 31, 2023 |
|
5,394,812 |
|
|
(5,293,394 |
) |
|
8,430 |
|
|
109,848 |
|
|
237,506 |
|
|
347,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
At January 1, 2024 |
|
5,394,812 |
|
|
(5,293,394 |
) |
|
8,430 |
|
|
109,848 |
|
|
237,506 |
|
|
347,354 |
|
Non-controlling interests derecognized on disposal |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(23,181 |
) |
|
(23,181 |
) |
Exercise of share options |
|
8,327 |
|
|
— |
|
|
(8,327 |
) |
|
— |
|
|
— |
|
|
— |
|
Share-based payment expense |
|
— |
|
|
— |
|
|
27,769 |
|
|
27,769 |
|
|
— |
|
|
27,769 |
|
Total transactions with owners |
|
8,327 |
|
|
— |
|
|
19,442 |
|
|
27,769 |
|
|
(23,181 |
) |
|
4,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss for the year |
|
— |
|
|
(1,632,025 |
) |
|
— |
|
|
(1,632,025 |
) |
|
(12,176 |
) |
|
(1,644,201 |
) |
Other comprehensive income/(loss), net of recycling |
|
— |
|
|
— |
|
|
1,039,829 |
|
|
1,039,829 |
|
|
(43,379 |
) |
|
996,450 |
|
Total comprehensive (loss)/income |
|
— |
|
|
(1,632,025 |
) |
|
1,039,829 |
|
|
(592,196 |
) |
|
(55,555 |
) |
|
(647,751 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
At December 31, 2024 |
|
5,403,139 |
|
|
(6,925,419 |
) |
|
1,067,701 |
|
|
(454,579 |
) |
|
158,770 |
|
|
(295,809 |
) |
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS AND FULL YEAR ENDED DECEMBER 31, 2024 AND 2023:
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended December 31, |
|
Full year ended December 31, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
348,845 |
|
|
162,054 |
|
|
775,856 |
|
|
902,923 |
|
Income taxes paid |
|
(3,538 |
) |
|
(3,004 |
) |
|
(38,629 |
) |
|
(45,411 |
) |
Payment for rent |
|
(956 |
) |
|
431 |
|
|
(7,827 |
) |
|
(3,716 |
) |
Payment for tower and tower equipment decommissioning |
|
(43 |
) |
|
(16 |
) |
|
(95 |
) |
|
(343 |
) |
Net cash from operating activities |
|
344,308 |
|
|
159,465 |
|
|
729,305 |
|
|
853,453 |
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
(61,460 |
) |
|
(81,441 |
) |
|
(235,169 |
) |
|
(464,897 |
) |
Payment in advance for property, plant and equipment |
|
(14,283 |
) |
|
(22,145 |
) |
|
(29,864 |
) |
|
(111,065 |
) |
Purchase of software and licenses |
|
(689 |
) |
|
(3,141 |
) |
|
(3,980 |
) |
|
(22,811 |
) |
Consideration paid on business combinations, net of cash acquired |
|
— |
|
|
— |
|
|
— |
|
|
(4,486 |
) |
Proceeds from sale of subsidiaries, net of cash disposed |
|
114,887 |
|
|
— |
|
|
118,960 |
|
|
— |
|
Proceeds from disposal of property, plant and equipment |
|
11,707 |
|
|
1,451 |
|
|
26,706 |
|
|
2,919 |
|
Insurance claims received |
|
22 |
|
|
11 |
|
|
73 |
|
|
321 |
|
Interest received |
|
5,809 |
|
|
7,670 |
|
|
18,660 |
|
|
25,008 |
|
Deposit of short-term deposits |
|
(3,070 |
) |
|
4,538 |
|
|
(43,660 |
) |
|
(183,400 |
) |
Refund of short-term deposits |
|
2,736 |
|
|
(469 |
) |
|
211,453 |
|
|
36,162 |
|
Net cash from/(used in) investing activities |
|
55,659 |
|
|
(93,526 |
) |
|
63,179 |
|
|
(722,249 |
) |
|
|
|
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||||
Shares repurchased and canceled through buyback program |
|
— |
|
|
(4,324 |
) |
|
— |
|
|
(10,037 |
) |
Proceeds received from issuance of borrowings (net of transaction costs) |
|
1,596,978 |
|
|
9,660 |
|
|
2,208,375 |
|
|
986,604 |
|
Repayment of borrowings |
|
(1,683,484 |
) |
|
(45,349 |
) |
|
(2,149,307 |
) |
|
(689,940 |
) |
Fees on borrowings and derivative instruments |
|
(1,263 |
) |
|
(4,621 |
) |
|
(10,558 |
) |
|
(19,441 |
) |
Interest paid |
|
(73,983 |
) |
|
(74,911 |
) |
|
(326,984 |
) |
|
(299,029 |
) |
Payment for the principal portion of lease liabilities |
|
(10,770 |
) |
|
(13,428 |
) |
|
(55,233 |
) |
|
(72,854 |
) |
Interest paid for lease liabilities |
|
(19,495 |
) |
|
(17,744 |
) |
|
(66,041 |
) |
|
(58,443 |
) |
Interest/premium paid on derivative instruments |
|
(8,834 |
) |
|
— |
|
|
(8,834 |
) |
|
— |
|
Net gain/(loss) settled on derivative instruments |
|
157 |
|
|
222 |
|
|
(22,414 |
) |
|
839 |
|
Net cash (used in)/from financing activities |
|
(200,694 |
) |
|
(150,495 |
) |
|
(430,996 |
) |
|
(162,301 |
) |
|
|
|
|
|
|
|
|
|
||||
Net increase/(decrease) in cash and cash equivalents |
|
199,273 |
|
|
(84,556 |
) |
|
361,488 |
|
|
(31,097 |
) |
Cash and cash equivalents at beginning of year |
|
397,499 |
|
|
425,436 |
|
|
293,823 |
|
|
514,078 |
|
Exchange differences |
|
(18,816 |
) |
|
(47,057 |
) |
|
(77,355 |
) |
|
(189,158 |
) |
Cash and cash equivalents at end of period |
|
577,956 |
|
|
293,823 |
|
|
577,956 |
|
|
293,823 |
|
Use of Non-IFRS financial measures
Certain parts of this document 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 Accounting Standards as issued by International Accounting Standards Board (“IFRS® Accounting Standards”), and may be different from similarly titled non-IFRS measures used by other companies.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA (including by segment) as (loss)/income for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, net impairment/(reversal of impairment) of withholding tax receivables, impairment of goodwill, business combination transaction costs, net impairment/(reversal of impairment) of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent, reversal of provision for decommissioning costs, net (gain)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, gain on disposal of subsidiary and certain other items that management believes are not indicative of the core performance of our business.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue for the applicable period, expressed as a percentage.
We believe Adjusted EBITDA and Adjusted EBITDA Margin are useful to investors and are used by our management for measuring profitability and allocating resources, because they exclude the impact of certain items that have less bearing on our core operating performance such as interest expense and taxes. 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 Accounting Standards.
Adjusted EBITDA and Adjusted EBITDA Margin are not measures of performance under IFRS Accounting Standards and you should not consider these as an alternative to (loss)/income or (loss)/income margin for the period or other financial measures determined in accordance with IFRS Accounting Standards.
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, investors and prospective investors should not place undue reliance on Adjusted EBITDA or Adjusted EBITDA Margin.
ALFCF
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, income taxes paid, withholding tax, lease and rent payments made, net interest paid or received, business combination transaction costs, 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.
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 Accounting Standards.
ALFCF is not intended to replace cash from operations for the period or any other measures of cash flow under IFRS Accounting Standards.
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 income/(loss) 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 are income/(loss) and income/(loss) margin, respectively, for the three and twelve months ended December 31, 2024 and 2023:
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended December 31, |
|
For the full year ended December 31, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
||||
|
|
|
|
|
|
|
|
|
||||
Income/(loss) for the year |
|
243,066 |
|
|
(456,823 |
) |
|
(1,644,201 |
) |
|
(1,988,178 |
) |
Divided by: Total revenue |
|
437,822 |
|
|
509,784 |
|
|
1,711,225 |
|
|
2,125,539 |
|
Income/(loss) margin for the year |
|
55.5 |
% |
|
(89.6 |
)% |
|
(96.1 |
)% |
|
(93.5 |
)% |
Adjustments: |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
(6,712 |
) |
|
18,410 |
|
|
33,957 |
|
|
107,528 |
|
Finance costs(a) |
|
151,646 |
|
|
621,091 |
|
|
2,123,138 |
|
|
2,436,511 |
|
Finance income(a) |
|
(175,716 |
) |
|
(8,420 |
) |
|
(33,747 |
) |
|
(25,209 |
) |
Depreciation and amortization |
|
96,695 |
|
|
95,205 |
|
|
362,735 |
|
|
435,586 |
|
Net (impairment reversal)/impairment of withholding tax receivables(b) |
|
(31,746 |
) |
|
12,880 |
|
|
1,081 |
|
|
47,992 |
|
Impairment of goodwill |
|
- |
|
|
- |
|
|
87,894 |
|
|
- |
|
Business combination transaction costs |
|
322 |
|
|
785 |
|
|
1,280 |
|
|
2,432 |
|
Net impairment/(reversal of impairment) of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent(c) |
|
4,692 |
|
|
(20,814 |
) |
|
17,651 |
|
|
87,696 |
|
Gain/(loss) on disposal of property, plant and equipment |
|
23,725 |
|
|
(2,854 |
) |
|
20,163 |
|
|
(3,806 |
) |
Share-based payment expense(d) |
|
18,061 |
|
|
3,799 |
|
|
27,940 |
|
|
13,370 |
|
Insurance claims(e) |
|
(22 |
) |
|
(11 |
) |
|
(73 |
) |
|
(321 |
) |
Gain on disposal of subsidiary |
|
(83,838 |
) |
|
- |
|
|
(83,838 |
) |
|
- |
|
Other costs(f) |
|
6,199 |
|
|
10,958 |
|
|
14,374 |
|
|
19,017 |
|
Other income |
|
- |
|
|
(24 |
) |
|
- |
|
|
(83 |
) |
Adjusted EBITDA |
|
246,372 |
|
|
274,182 |
|
|
928,354 |
|
|
1,132,535 |
|
Divided by: Total revenue |
|
437,822 |
|
|
509,784 |
|
|
1,711,225 |
|
|
2,125,539 |
|
Adjusted EBITDA Margin |
|
56.3 |
% |
|
53.8 |
% |
|
54.3 |
% |
|
53.3 |
% |
| (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 foreign exchange 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 foreign exchange gains arising from financing arrangements and net realized and unrealized gains from valuations of financial instruments. | ||||||||||||
| (b) 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. | ||||||||||||
| (d) Relates to share-based compensation expenses which are non-cash and 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 included one-off expenses related to strategic initiatives and operating systems of |
||||||||||||
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 ended December 31, 2024 and 2023:
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended December 31, |
|
For the full year ended December 31, |
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
348,845 |
|
|
162,054 |
|
|
775,856 |
|
|
902,923 |
|
|
Net movement in working capital |
|
(92,104 |
) |
|
104,002 |
|
|
158,667 |
|
|
224,982 |
|
|
Income taxes paid |
|
(3,538 |
) |
|
(3,004 |
) |
|
(38,629 |
) |
|
(45,411 |
) |
|
Withholding tax(a) |
|
(20,777 |
) |
|
(27,473 |
) |
|
(85,076 |
) |
|
(117,561 |
) |
|
Lease and rent payments made |
|
(31,221 |
) |
|
(30,741 |
) |
|
(129,101 |
) |
|
(135,013 |
) |
|
Net interest paid(b) |
|
(77,008 |
) |
|
(67,241 |
) |
|
(317,158 |
) |
|
(274,021 |
) |
|
Business combination costs |
|
4,857 |
|
|
2,356 |
|
|
6,707 |
|
|
6,792 |
|
|
Other costs(c) |
|
1,734 |
|
|
4,482 |
|
|
5,513 |
|
|
12,229 |
|
|
Maintenance capital expenditure(d) |
|
(23,284 |
) |
|
(25,680 |
) |
|
(71,796 |
) |
|
(139,958 |
) |
|
Corporate capital expenditures(e) |
|
(383 |
) |
|
(590 |
) |
|
(785 |
) |
|
(2,180 |
) |
|
ALFCF |
|
107,121 |
|
|
118,165 |
|
|
304,198 |
|
|
432,782 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlling interests |
|
(2,084 |
) |
|
(2,113 |
) |
|
(12,411 |
) |
|
(9,860 |
) |
|
ALFCF excluding non-controlling interests |
|
105,037 |
|
|
116,052 |
|
|
291,787 |
|
|
422,922 |
|
|
| (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 years ended December 31, 2024 and 2023, primarily related to one-off consulting fees. | |||||||||||||
| (d) 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. | |||||||||||||
| (e) 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/20250318789609/en/
For more information, please email: communications@ihstowers.com
Source: IHS Holding Limited
