IHS Holding Limited Reports Third Quarter 2023 Financial Results
- Solid performance across key performance indicators (KPIs) driven by robust secular demand and contract structures.
- Challenging macroeconomic environment in Nigeria impacting capex and revenue due to Naira devaluation.
- Encouraging developments in Nigeria, Brazil, and South Africa, positioning the company for long-term growth.
- Enhanced focus on cash generation through operational efficiencies and capital allocation in high-growth markets.
- Significant negative impact from the devaluation of the Nigerian Naira on revenue and adjusted EBITDA.
- Reduction in capex may limit future growth opportunities.
CONSOLIDATED HIGHLIGHTS – THIRD QUARTER 2023
-
Revenue of
decreased$467.0 million 10.4% (or increased30.6% organically) reflecting a year on year foreign exchange (“FX”) headwind largely as a result of the$214.5 million 78.2% devaluation of the Nigerian Naira (“NGN”) -
Adjusted EBITDA of
($232.0 million 49.7% Adjusted EBITDA Margin) decreased15.5% -
Loss for the period was
$265.4 million -
Cash from operations was
$234.4 million -
Adjusted Levered Free Cash Flow (“ALFCF”) was
$79.6 million -
Total Capex was
$105.4 million -
Maintaining 2023 guidance for revenue of
, Adjusted EBITDA of$2,080 -2,110 million , Capital expenditure (“Total Capex”) of$1,130 -1,150 million and net leverage ratio target remains 3.0x-4.0x. Introducing ALFCF guidance of$610 -650 million and removing Recurring Levered Free Cash Flow (“RLFCF”) guidance of similar amount.$385 -405 million
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, ”We are reporting a solid quarter of performance across our KPI’s driven by growth across each of our segments that reflects robust secular demand and the quality of our contract structures. The impact of the Naira devaluation since mid-June is of course impacting these Q3 results, but the FX protection mechanisms in our revenue contracts have begun to reset and we will see more evidence of this resetting in our Q4 results. The reduction in capex in the quarter reflects an increasingly more balanced approach we are taking to growth and cash generation in light of what remains a challenging macroeconomic environment across the world but particularly in
We are encouraged by recent developments in
We are maintaining our 2023 guidance although incremental FX headwinds now assumed in guidance equate to
Lastly, regarding shareholder considerations, we continue to engage in constructive dialogue with Wendel and are making progress toward our mutual goals. We also continue to engage with MTN Group to better align on various commercial and governance matters and will provide additional updates at the appropriate time.”
RESULTS FOR THE THIRD QUARTER 2023
The table below sets forth select unaudited financial results for the quarters ended September 30, 2023 and September 30, 2022:
|
|
|
|
|
|
|
|||
|
|
Three months ended |
|||||||
|
|
September 30, |
|
September 30, |
|
Y on Y |
|||
|
|
2023 |
|
2022 |
|
Growth |
|||
|
|
$’000 |
|
$’000 |
|
% |
|||
|
|
|
|
|
|
|
|||
Revenue |
|
467,023 |
|
|
521,317 |
|
|
(10.4 |
) |
Adjusted EBITDA(1) |
|
231,953 |
|
|
274,428 |
* |
(15.5 |
) |
|
Loss for the period |
|
(265,351 |
) |
|
(36,648 |
)** |
|
(624.1 |
) |
Cash from operations |
|
234,437 |
|
|
294,190 |
|
|
(20.3 |
) |
ALFCF(2) |
|
79,610 |
|
|
89,656 |
|
|
(11.2 |
) |
(1) |
Adjusted EBITDA is a non-IFRS financial measures. See “Use of Non-IFRS Financial Measures” for additional information, definitions and a reconciliation to the most comparable IFRS measures. |
|
(2) |
Starting in the third quarter of 2023, we replaced RLFCF with ALFCF. ALFCF, unlike RLFCF, 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. See “Use of Non-IFRS Financial Measures” for additional information, a definition and a reconciliation to the most comparable IFRS measures for ALFCF. |
|
* |
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. |
|
** |
Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the GTS SP5 Acquisition in March 2022 and 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 USD/NGN rate used to consolidate the Group results was
The continued devaluation of the NGN in the third quarter of 2023 also resulted in an impact on finance, specifically related to unrealized foreign exchange losses of
Results for the three months ended September 30, 2023 versus 2022
During the third quarter of 2023, revenue was
Adjusted EBITDA was
Loss for the period was
Cash from operations and ALFCF for the third 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 |
||||||||||||
|
|
September 30, |
|
September 30, |
|
|
|
September 30, |
|
September 30, |
|
|
||||
|
|
2023 |
|
2022 |
|
Change |
|
2023 |
|
2022 |
|
Change |
||||
|
|
$'000 |
|
$'000 |
|
% |
|
$'000 |
|
$'000 |
|
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
271,394 |
|
355,351 |
|
(23.6 |
) |
|
158,003 |
|
|
210,039 |
|
|
(24.8 |
) |
SSA |
|
133,481 |
|
114,801 |
|
16.3 |
|
|
66,285 |
|
|
63,521 |
|
* |
4.4 |
|
Latam |
|
51,883 |
|
42,104 |
|
23.2 |
|
|
38,163 |
|
|
29,993 |
|
|
27.2 |
|
MENA |
|
10,265 |
|
9,061 |
|
13.3 |
|
|
5,155 |
|
|
3,828 |
|
|
34.7 |
|
Other |
|
— |
|
— |
|
— |
|
|
(35,653 |
) |
|
(32,953 |
) |
|
(8.2 |
) |
Total |
|
467,023 |
|
521,317 |
|
(10.4 |
) |
|
231,953 |
|
|
274,428 |
|
* |
(15.5 |
) |
* |
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
INVESTING ACTIVITIES
During the third 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 third quarter of 2023. Approximate
IHS Holding (2020) Revolving Credit Facility
In July 2023, the available commitments were increased to
As of November 13, 2023, there are no amounts drawn and outstanding under the
IHS Brasil - Cessão de Infraestruturas S.A. Debentures
IHS Brasil - Cessão de Infraestruturas S.A. issued debentures for
The IHS Brasil Debentures contain customary information and financial covenants, including but not limited to the maintenance of specified net debt to EBITDA and interest cover ratios. They also contain customary negative covenants and restrictions including, but not limited to, dividends and other payments to shareholders, intercompany loans and capital reductions.
The IHS Brasil Debentures are secured by a pledge over all shares owned by Centennial Towers Brasil Cooperatief U.A. and IHS Netherlands BR B.V. in IHS Brasil – Cessão de Infraestruturas S.A. and a pledge over the bank account where the companies’ receivables are deposited.
The IHS Brasil Debentures have an interest rate of CDI plus
The proceeds from the issuance of the IHS Brasil Debentures were applied towards, inter alia, refinancing certain indebtedness of IHS Brasil - Cessão de Infraestruturas S.A. (including the IHS Brasil Facilities and the GTS Facility, as set out below) and general corporate and working capital purposes.
IHS Brasil - Cessão de Infraestruturas S.A. Facilities
In September 2023, we prepaid the full remaining principal amount of the IHS Brasil Facilities and the GTS Facility of
FINANCING ACTIVITIES AND LIQUIDITY AFTER REPORTING PERIOD
Below is a summary of key facilities we have entered into, repaid or amended after the third quarter of 2023.
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 November 13, 2023,
IHS South Africa Overdraft
IHS SA entered into a
As of November 13, 2023,
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 30, 2026.
SHARE BUYBACK PROGRAM
In August 2023, the Company’s board of directors (the “Board”) authorized a stock repurchase program for up to
During the third quarter of 2023, the Company repurchased 948,101 shares, at an average price of
Full Year 2023 Outlook Guidance
The following full year 2023 guidance is based on a number of assumptions that management believes to be reasonable and reflects the Company’s expectations as of November 14, 2023. 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 reflects 1)
The Company’s outlook is based on the following assumptions:
-
Organic revenue Y/Y growth of approximately
34% (31% when excluding the non-recurring revenue in first quarter 2023)$48.1 million -
Average foreign currency exchange rates to
1.00 U.S. Dollar for January 1, 2023 through December 31, 2023 for key currencies: (a) 628.0 Nigerian Naira; (b)5.01 Brazilian Real (c)0.93 Euros (d)18.51 South African Rand -
Project Green capex
$90.0 -100.0 million -
Build-to-suit of circa 1,250 sites of which ~200 sites in
Nigeria and ~750 sites inBrazil - Net leverage ratio target of 3.0x-4.0x
Metric |
|
Current Range |
|
Previous Range |
Revenue |
|
|
|
|
Adjusted EBITDA (1) |
|
|
|
|
Recurring Levered Free Cash Flow (2) |
|
Not applicable |
|
|
Adjusted Levered Free Cash Flow (2) |
|
|
|
Not applicable |
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 net movement in working capital and other non-operating expenses, each of which adjustments may have a significant impact on these non-IFRS measures. |
|
(2) |
Starting in the third quarter of 2023, we replaced RLFCF with ALFCF. We have presented RLFCF above solely for the purpose of showing our previous guidance range for comparative purposes and it is replaced by ALFCF guidance for the full year 2023. As described last quarter, we are unable to provide a reconciliation of RLFCF to (loss)/profit and cash from operations, respectively, for the periods presented above without an unreasonable effort. ALFCF, unlike RLFCF, 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. See “Use of Non-IFRS Financial Measures” for additional information, a definition and a reconciliation to the most comparable IFRS measures for ALFCF. |
Conference Call
IHS Towers will host a conference call on November 14, 2023 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:
-
RBC Capital Markets Technology, Internet, Media and Telecom Conference (
New York ) – November 15, 2023 -
Wells Fargo 7th Annual TMT Summit (
Rancho Palos Verdes, CA ) – November 28, 2023 -
UBS Annual Global TMT Conference (
New York ) – December 5, 2023 -
New Street Research/BCG Future Series Conference: The Future of Wireless, AI and Convergence (
New York ) – December 12, 2023
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 nearly 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, including our anticipated results for the fiscal year 2023, 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, 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 and/or ability to access
U.S. Dollars in our markets; -
the effect of regional or global health pandemics, geopolitical conflicts and wars (including the current conflict between
Russia andUkraine ) 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; - 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;
- 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;
- 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, 2022.
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, 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) (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||
|
|
2023 |
|
2022* |
|
2023 |
|
2022* |
||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
||||
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
467,023 |
|
|
521,317 |
|
|
1,615,755 |
|
|
1,435,132 |
|
Cost of sales |
|
(365,032 |
) |
|
(297,598 |
) |
|
(949,774 |
) |
|
(818,797 |
) |
Administrative expenses |
|
(93,835 |
) |
|
(91,527 |
) |
|
(291,877 |
) |
|
(284,941 |
) |
(Net loss allowance)/net reversal of loss allowance on trade receivables |
|
(711 |
) |
|
1,597 |
|
|
(5,225 |
) |
|
3,397 |
|
Other income |
|
33 |
|
|
70 |
|
|
369 |
|
|
4,207 |
|
Operating profit |
|
7,478 |
|
|
133,859 |
|
|
369,248 |
|
|
338,998 |
|
Finance income |
|
5,823 |
|
|
6,412 |
|
|
18,233 |
|
|
11,035 |
|
Finance costs |
|
(261,993 |
) |
|
(234,223 |
) |
|
(1,804,222 |
) |
|
(574,081 |
) |
Loss before income tax |
|
(248,692 |
) |
|
(93,952 |
) |
|
(1,416,741 |
) |
|
(224,048 |
) |
Income tax expense/(benefit) |
|
(16,659 |
) |
|
57,304 |
|
|
(89,118 |
) |
|
23,945 |
|
Loss for the period |
|
(265,351 |
) |
|
(36,648 |
) |
|
(1,505,859 |
) |
|
(200,103 |
) |
|
|
|
|
|
|
|
|
|
||||
Loss attributable to: |
|
|
|
|
|
|
|
|
||||
Owners of the Company |
|
(263,377 |
) |
|
(30,702 |
) |
|
(1,497,525 |
) |
|
(190,941 |
) |
Non‑controlling interests |
|
(1,974 |
) |
|
(5,946 |
) |
|
(8,334 |
) |
|
(9,162 |
) |
Loss for the period |
|
(265,351 |
) |
|
(36,648 |
) |
|
(1,505,859 |
) |
|
(200,103 |
) |
|
|
|
|
|
|
|
|
|
||||
Loss per share—basic $ |
|
(0.79 |
) |
|
(0.09 |
) |
|
(4.49 |
) |
|
(0.58 |
) |
Loss per share—diluted $ |
|
(0.79 |
) |
|
(0.09 |
) |
|
(4.49 |
) |
|
(0.58 |
) |
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income/(loss): |
|
|
|
|
|
|
|
|
||||
Items that may be reclassified to profit or loss |
|
|
|
|
|
|
|
|
||||
Fair value loss through other comprehensive income |
|
— |
|
|
— |
|
|
7 |
|
|
— |
|
Exchange differences on translation of foreign operations |
|
4,789 |
|
|
(52,962 |
) |
|
629,748 |
|
|
(43,309 |
) |
Other comprehensive income/(loss) for the period, net of taxes |
|
4,789 |
|
|
(52,962 |
) |
|
629,755 |
|
|
(43,309 |
) |
|
|
|
|
|
|
|
|
|
||||
Total comprehensive loss for the period |
|
(260,562 |
) |
|
(89,610 |
) |
|
(876,104 |
) |
|
(243,412 |
) |
|
|
|
|
|
|
|
|
|
||||
Total comprehensive loss attributable to: |
|
|
|
|
|
|
|
|
||||
Owners of the Company |
|
(251,373 |
) |
|
(79,165 |
) |
|
(876,163 |
) |
|
(240,219 |
) |
Non‑controlling interests |
|
(9,189 |
) |
|
(10,445 |
) |
|
59 |
|
|
(3,193 |
) |
Total comprehensive loss for the period |
|
(260,562 |
) |
|
(89,610 |
) |
|
(876,104 |
) |
|
(243,412 |
) |
* |
Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the GTS SP5 Acquisition in March 2022 and the MTN SA Acquisition in May 2022. |
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AT SEPTEMBER 30, 2023 AND DECEMBER 31, 2022
|
|
September 30, |
|
December 31, |
||
|
|
2023 |
|
2022* |
||
|
|
$’000 |
|
$’000 |
||
ASSETS |
|
|
|
|
||
Non‑current assets |
|
|
|
|
||
Property, plant and equipment |
|
1,754,367 |
|
|
2,075,441 |
|
Right of use assets |
|
883,234 |
|
|
965,019 |
|
Goodwill |
|
638,538 |
|
|
763,388 |
|
Other intangible assets |
|
908,821 |
|
|
1,049,103 |
|
Fair value through other comprehensive income financial assets |
|
10 |
|
|
10 |
|
Deferred income tax assets |
|
60,873 |
|
|
78,369 |
|
Derivative financial instrument assets |
|
1,889 |
|
|
6,121 |
|
Trade and other receivables |
|
153,972 |
|
|
130,347 |
|
|
|
4,401,704 |
|
|
5,067,798 |
|
Current assets |
|
|
|
|
||
Inventories |
|
60,381 |
|
|
74,216 |
|
Income tax receivable |
|
2,375 |
|
|
1,174 |
|
Trade and other receivables |
|
629,245 |
|
|
663,467 |
|
Cash and cash equivalents |
|
425,436 |
|
|
514,078 |
|
Assets held for sale |
|
21,139 |
|
|
— |
|
|
|
1,138,576 |
|
|
1,252,935 |
|
Total assets |
|
5,540,280 |
|
|
6,320,733 |
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Trade and other payables |
|
569,761 |
|
|
669,149 |
|
Provisions for other liabilities and charges |
|
309 |
|
|
483 |
|
Derivative financial instrument liabilities |
|
51,887 |
|
|
1,393 |
|
Income tax payable |
|
65,322 |
|
|
70,008 |
|
Borrowings |
|
457,941 |
|
|
438,114 |
|
Lease liabilities |
|
86,898 |
|
|
87,240 |
|
|
|
1,232,118 |
|
|
1,266,387 |
|
Non‑current liabilities |
|
|
|
|
||
Trade and other payables |
|
5,493 |
|
|
1,459 |
|
Borrowings |
|
3,084,214 |
|
|
2,906,288 |
|
Lease liabilities |
|
507,008 |
|
|
518,318 |
|
Provisions for other liabilities and charges |
|
84,811 |
|
|
84,533 |
|
Deferred income tax liabilities |
|
141,842 |
|
|
183,518 |
|
|
|
3,823,368 |
|
|
3,694,116 |
|
Total liabilities |
|
5,055,486 |
|
|
4,960,503 |
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
||
Stated capital |
|
5,391,363 |
|
|
5,311,953 |
|
Accumulated losses |
|
(4,814,310 |
) |
|
(3,317,652 |
) |
Other reserves |
|
(321,440 |
) |
|
(861,271 |
) |
Equity attributable to owners of the Company |
|
255,613 |
|
|
1,133,030 |
|
Non‑controlling interest |
|
229,181 |
|
|
227,200 |
|
Total equity |
|
484,794 |
|
|
1,360,230 |
|
Total liabilities and equity |
|
5,540,280 |
|
|
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 (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 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 January 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 |
|
86,470 |
|
|
— |
|
|
(86,470 |
) |
|
— |
|
|
— |
|
|
— |
|
Share‑based payment expense |
|
— |
|
|
— |
|
|
10,230 |
|
|
10,230 |
|
|
— |
|
|
10,230 |
|
Other reclassifications related to share-based payment |
|
— |
|
|
1,560 |
|
|
(2,835 |
) |
|
(1,275 |
) |
|
— |
|
|
(1,275 |
) |
Total transactions with owners of the company |
|
86,470 |
|
|
1,560 |
|
|
(79,075 |
) |
|
8,955 |
|
|
831 |
|
|
9,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss for the period* |
|
— |
|
|
(190,941 |
) |
|
— |
|
|
(190,941 |
) |
|
(9,162 |
) |
|
(200,103 |
) |
Other comprehensive (loss)/income* |
|
— |
|
|
— |
|
|
(49,278 |
) |
|
(49,278 |
) |
|
5,969 |
|
|
(43,309 |
) |
Total comprehensive loss* |
|
— |
|
|
(190,941 |
) |
|
(49,278 |
) |
|
(240,219 |
) |
|
(3,193 |
) |
|
(243,412 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at September 30, 2022* |
|
5,309,954 |
|
|
(3,049,586 |
) |
|
(971,264 |
) |
|
1,289,104 |
|
|
220,826 |
|
|
1,509,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at January 1, 2023 |
|
5,311,953 |
|
|
(3,317,652 |
) |
|
(861,271 |
) |
|
1,133,030 |
|
|
227,200 |
|
|
1,360,230 |
|
Shares repurchased and cancelled through buyback program |
|
(10,022 |
) |
|
— |
|
|
— |
|
|
(10,022 |
) |
|
— |
|
|
(10,022 |
) |
NCI arising on business combination |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,922 |
|
|
1,922 |
|
Share‑based payment expense |
|
— |
|
|
— |
|
|
9,327 |
|
|
9,327 |
|
|
— |
|
|
9,327 |
|
Options converted to shares |
|
89,432 |
|
|
— |
|
|
(89,432 |
) |
|
— |
|
|
— |
|
|
— |
|
Other reclassifications related to share based payment |
|
— |
|
|
867 |
|
|
(1,426 |
) |
|
(559 |
) |
|
— |
|
|
(559 |
) |
Total transactions with owners of the company |
|
79,410 |
|
|
867 |
|
|
(81,531 |
) |
|
(1,254 |
) |
|
1,922 |
|
|
668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss for the period |
|
— |
|
|
(1,497,525 |
) |
|
— |
|
|
(1,497,525 |
) |
|
(8,334 |
) |
|
(1,505,859 |
) |
Other comprehensive income |
|
— |
|
|
— |
|
|
621,362 |
|
|
621,362 |
|
|
8,393 |
|
|
629,755 |
|
Total comprehensive (loss)/income |
|
— |
|
|
(1,497,525 |
) |
|
621,362 |
|
|
(876,163 |
) |
|
59 |
|
|
(876,104 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at September 30, 2023 |
|
5,391,363 |
|
|
(4,814,310 |
) |
|
(321,440 |
) |
|
255,613 |
|
|
229,181 |
|
|
484,794 |
* |
Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the GTS SP5 Acquisition in March 2022 and the MTN SA Acquisition in May 2022 |
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
$’000 |
|
$’000 |
|
$’000 |
|
$’000 |
||||
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
234,437 |
|
|
294,190 |
|
|
750,428 |
|
|
677,599 |
|
Income taxes paid |
|
(8,450 |
) |
|
(6,452 |
) |
|
(42,407 |
) |
|
(46,454 |
) |
Payment for rent |
|
(1,204 |
) |
|
(1,175 |
) |
|
(4,147 |
) |
|
(5,305 |
) |
Payment for tower and tower equipment decommissioning |
|
(6 |
) |
|
(320 |
) |
|
(327 |
) |
|
(178 |
) |
Net cash generated from operating activities |
|
224,777 |
|
|
286,243 |
|
|
703,547 |
|
|
625,662 |
|
|
|
|
|
|
|
|
|
|
||||
Cash flow from investing activities |
|
|
|
|
|
|
|
|
||||
Purchase of property, plant and equipment |
|
(124,413 |
) |
|
(122,011 |
) |
|
(393,015 |
) |
|
(284,867 |
) |
Payment in advance for property, plant and equipment |
|
(18,772 |
) |
|
(51,870 |
) |
|
(88,920 |
) |
|
(139,783 |
) |
Purchase of software and licenses |
|
(3,494 |
) |
|
(234 |
) |
|
(19,670 |
) |
|
(13,238 |
) |
Consideration paid on business combinations, net of cash acquired |
|
(4,486 |
) |
|
(8,993 |
) |
|
(4,486 |
) |
|
(735,917 |
) |
Proceeds from disposal of property, plant and equipment |
|
508 |
|
|
255 |
|
|
1,468 |
|
|
1,109 |
|
Insurance claims received |
|
32 |
|
|
80 |
|
|
310 |
|
|
1,694 |
|
Interest income received |
|
5,761 |
|
|
3,364 |
|
|
17,338 |
|
|
10,380 |
|
Deposit of short term deposits |
|
(59,173 |
) |
|
(70,628 |
) |
|
(187,938 |
) |
|
(358,694 |
) |
Refund of short term deposits |
|
15,908 |
|
|
10,733 |
|
|
36,631 |
|
|
162,316 |
|
Net cash used in investing activities |
|
(188,129 |
) |
|
(239,304 |
) |
|
(638,282 |
) |
|
(1,357,000 |
) |
|
|
|
|
|
|
|
|
|
||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
||||
Transactions with non-controlling interest |
|
— |
|
|
11 |
|
|
— |
|
|
11 |
|
Shares repurchased and cancelled through buyback program |
|
(5,713 |
) |
|
— |
|
|
(5,713 |
) |
|
— |
|
Bank loans received |
|
318,765 |
|
|
118,884 |
|
|
976,944 |
|
|
834,677 |
|
Bank loans repaid |
|
(226,741 |
) |
|
(44,184 |
) |
|
(644,591 |
) |
|
(114,211 |
) |
Fees on loans and derivative instruments |
|
(6,149 |
) |
|
(3,282 |
) |
|
(14,820 |
) |
|
(12,559 |
) |
Interest paid |
|
(79,173 |
) |
|
(69,070 |
) |
|
(224,118 |
) |
|
(173,739 |
) |
Payment for the principal of lease liabilities |
|
(14,844 |
) |
|
(22,966 |
) |
|
(59,426 |
) |
|
(52,717 |
) |
Interest paid for lease liabilities |
|
(15,405 |
) |
|
(11,543 |
) |
|
(40,699 |
) |
|
(27,763 |
) |
Initial margin received on non‑deliverable forwards |
|
145 |
|
|
6,629 |
|
|
197 |
|
|
13,106 |
|
(Losses) settled/ profits received on non‑deliverable forwards |
|
— |
|
|
(172 |
) |
|
420 |
|
|
(3,197 |
) |
Net cash (used in)/generated from financing activities |
|
(29,115 |
) |
|
(25,693 |
) |
|
(11,806 |
) |
|
463,608 |
|
|
|
|
|
|
|
|
|
|
||||
Net increase/(decrease) in cash and cash equivalents |
|
7,533 |
|
|
21,246 |
|
|
53,459 |
|
|
(267,730 |
) |
Cash and cash equivalents at beginning of period |
|
433,048 |
|
|
567,298 |
|
|
514,078 |
|
|
916,488 |
|
Effect of movements in exchange rates on cash |
|
(15,145 |
) |
|
(58,076 |
) |
|
(142,101 |
) |
|
(118,290 |
) |
Cash and cash equivalents at end of period |
|
425,436 |
|
|
530,468 |
|
|
425,436 |
|
|
530,468 |
|
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 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 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.
Segment Adjusted EBITDA (defined 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 and related prepaid land rent on the decommissioning of sites, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, costs relating to this offering and certain other items that management believes are not indicative of the core performance of its business)) to assess the performance of the business.
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 Adjusted EBITDA or Adjusted EBITDA Margin 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 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 is 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
The following is a reconciliation of Adjusted EBITDA to the most directly comparable IFRS measure, which is profit for the three and nine months ended September 30, 2023 and 2022:
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||
|
|
2023 |
|
2022* |
|
2023 |
|
2022* |
||||
|
|
$'000 |
|
$'000 |
|
$'000 |
|
$'000 |
||||
|
|
|
|
|
|
|
|
|
||||
Loss |
|
(265,351 |
) |
|
(36,648 |
) |
|
(1,505,859 |
) |
|
(200,103 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
16,659 |
|
|
(57,304 |
) |
|
89,118 |
|
|
(23,945 |
) |
Finance costs(a) |
|
261,993 |
|
|
234,223 |
|
|
1,804,222 |
|
|
574,081 |
|
Finance income(a) |
|
(5,823 |
) |
|
(6,412 |
) |
|
(18,233 |
) |
|
(11,035 |
) |
Depreciation and amortization |
|
104,931 |
|
|
117,474 |
|
|
340,381 |
|
|
340,173 |
|
Impairment of withholding tax receivables(b) |
|
10,508 |
|
|
11,422 |
|
|
35,112 |
|
|
39,141 |
|
Business combination transaction costs |
|
161 |
|
|
3,685 |
|
|
1,647 |
|
|
17,928 |
|
Net impairment of property, plant and equipment and prepaid land rent(c) |
|
103,429 |
|
|
3,099 |
|
|
108,510 |
|
|
1,768 |
|
Net (gain)/loss on disposal of property, plant and equipment |
|
(386 |
) |
|
(134 |
) |
|
(952 |
) |
|
13,650 |
|
Share-based payment expense(d) |
|
2,654 |
|
|
4,127 |
|
|
9,571 |
|
|
9,752 |
|
Insurance claims(e) |
|
(32 |
) |
|
(70 |
) |
|
(310 |
) |
|
(1,686 |
) |
Other costs(f) |
|
3,211 |
|
|
966 |
|
|
8,059 |
|
|
1,274 |
|
Other income(g) |
|
(1 |
) |
|
— |
|
|
(59 |
) |
|
(2,521 |
) |
Adjusted EBITDA |
|
231,953 |
|
|
274,428 |
|
|
871,207 |
|
|
758,477 |
|
Divided by total revenue |
|
467,023 |
|
|
521,317 |
|
|
1,615,755 |
|
|
1,435,132 |
|
Adjusted EBITDA Margin |
|
49.7 |
% |
|
52.6 |
% |
|
53.9 |
% |
|
52.9 |
% |
* |
Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the GTS SP5 Acquisition in March 2022 and 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 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) |
Revenue withholding tax primarily represents amounts withheld by customers in |
|
(c) |
Represents non-cash charges related to the impairment of property, plant and equipment and related prepaid land rent on the decommissioning of sites. |
|
(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 September 30, 2023 included one-off consulting fees related to corporate structures and operating systems of |
|
(g) |
Other income for the nine months ended September 30, 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 nine months September 30, 2023 and 2022:
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
|
|
$'000 |
|
$'000 |
|
$'000 |
|
$'000 |
||||
|
|
|
|
|
|
|
|
|
||||
Cash from operations |
|
234,437 |
|
|
294,190 |
|
|
750,428 |
|
|
677,599 |
|
Net movement in working capital |
|
(2,355 |
) |
|
(23,214 |
) |
|
124,275 |
|
|
67,895 |
|
Income taxes paid |
|
(8,450 |
) |
|
(6,452 |
) |
|
(42,407 |
) |
|
(46,454 |
) |
Withholding tax(a) |
|
(23,159 |
) |
|
(28,854 |
) |
|
(90,088 |
) |
|
(84,835 |
) |
Lease and rent payments made |
|
(31,453 |
) |
|
(35,684 |
) |
|
(104,272 |
) |
|
(85,785 |
) |
Net interest paid(b) |
|
(73,412 |
) |
|
(65,706 |
) |
|
(206,780 |
) |
|
(163,359 |
) |
Business combination transaction costs |
|
328 |
|
|
6,264 |
|
|
4,436 |
|
|
16,884 |
|
Other costs(c) |
|
2,969 |
|
|
740 |
|
|
7,747 |
|
|
5,753 |
|
Other income(d) |
|
— |
|
|
(2,500 |
) |
|
— |
|
|
(2,500 |
) |
Maintenance capital expenditure(e) |
|
(19,259 |
) |
|
(48,894 |
) |
|
(114,278 |
) |
|
(117,681 |
) |
Corporate capital expenditure(f) |
|
(36 |
) |
|
(234 |
) |
|
(1,590 |
) |
|
(1,321 |
) |
ALFCF(g) |
|
79,610 |
|
|
89,656 |
|
|
327,471 |
|
|
266,196 |
|
Non-controlling interest |
|
(3,186 |
) |
|
(1,461 |
) |
|
(7,747 |
) |
|
(5,231 |
) |
ALFCF excluding non-controlling interest |
|
76,424 |
|
|
88,195 |
|
|
319,724 |
|
|
260,965 |
|
(a) |
Withholding tax primarily represents amounts withheld by customers and amounts paid on bond interest in |
|
(b) |
Represents the aggregate value of interest paid and interest income received. |
|
(c) |
Other costs for the three and nine months ended September 30, 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 nine months ended September 30, 2022 included professional costs related to Sarbanes-Oxley (SOX) implementation costs million along with professional fees and system implementation costs. |
|
(d) |
Other income for the nine months ended September 30, 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. |
|
(g) |
ALFCF replaces the previously used RLFCF metric with effect from third quarter 2023. 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231114345362/en/
Source: IHS Holding Limited
FAQ
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