Latest news with #IHSRwanda
Yahoo
21-05-2025
- Business
- Yahoo
IHS Holding Ltd (IHS) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...
Revenue Growth: 26% organic growth, driven by 8% constant currency growth. Adjusted EBITDA: $253 million, with a margin of 57.5%, up 1,320 basis points year over year. Adjusted Levered Free Cash Flow (ALFCF): $150 million, an increase of approximately 248% year over year. Total CapEx: $44 million, down 17.8% year over year. Consolidated Net Leverage Ratio: Reduced to 3.4 times from 3.7 times at the end of 2024. Liquidity: Over $900 million of available liquidity at the end of March 2025. Nigeria Revenue: $271 million, increased 19% year over year. Nigeria Segment Adjusted EBITDA: $179 million, a 74.1% increase year over year. Sub-Saharan Africa Revenue: Decreased 8.1% year over year. LatAm Towers and Tenants Growth: Towers grew by 6.7%, tenants by 8.2% year over year. Cash and Cash Equivalents: $629 million as of March 31, 2025. Warning! GuruFocus has detected 6 Warning Signs with IHS. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. IHS Holding Ltd (NYSE:IHS) reported a strong start to 2025 with solid growth across key metrics such as revenue, adjusted EBITDA, and ALFCF, while reducing total CapEx. The company achieved 26% organic revenue growth, driven by increased revenues from co-location, lease amendments, new sites, and CPI escalators. Adjusted EBITDA reached $253 million with a margin of 57.5%, marking a significant improvement compared to the previous year. IHS Holding Ltd (NYSE:IHS) successfully reduced its consolidated net leverage ratio to 3.4 times, down from 3.7 times at the end of 2024. The company announced the sale of IHS Rwanda for an enterprise value of $274.5 million, achieving a transaction multiple of 8.3 times adjusted EBITDA, which is higher than the IHS Group multiple. The company faced a decline in both towers and tenants by approximately 3% and 1% respectively, year over year, primarily due to the divestitures of towers in Kuwait and Peru. The impact of the renewed and extended contracts with MTN Nigeria, including associated site churn, continues to affect comparisons. Revenue growth was partially offset by the 14% depreciation of the Nigerian Naira against the Dollar. The company anticipates a step down in ALFCF in the second quarter due to the timing of interest payments and maintenance CapEx plans. The sale of IHS Rwanda, while beneficial, indicates a strategic shift that may reduce future growth opportunities in that market. Q: Can you confirm if the Q1 performance was in line with your expectations, and what are the risks for the remainder of 2025? A: Yes, the Q1 performance was in line with our expectations, with a strong start to the year. We benefited from a favorable FX tailwind in Nigeria and slower-than-expected churn from MTN Nigeria. Looking ahead, while the macroeconomic environment is uncertain, our business fundamentals remain strong. We are monitoring global macroeconomic factors but remain confident in our guidance for 2025. - Steve Howden, CFO Q: Regarding the asset sale program, does the sale of IHS Rwanda indicate a shift in strategy? A: We have made significant progress towards our strategic goals, including asset disposals. While we have completed initial targets, we will continue to evaluate opportunities to unlock shareholder value, including potential disposals. Our focus remains on profitability and cash flow generation. - Sam Darwish, CEO Q: Can you provide details on the organic growth and financial outlook for the Rwanda portfolio compared to the rest of your portfolio? A: The Rwanda business has a lease-up rate of about 2.05, with growth potential in digitalization and 4G/5G rollout. Compared to other SSA segments, Rwanda and similar markets are expected to see double-digit growth, while South Africa is slower. Overall, we aim for double-digit organic revenue growth, with higher growth in EBITDA and ALFCF. - Steve Howden, CFO Q: What is the plan for capital returns to shareholders, and how do you prioritize debt reduction versus buybacks or dividends? A: Our immediate focus is on increasing profitability, cash flow, and reducing debt. We recently paid down a high-interest term loan in Nigeria. As we progress, we will evaluate capital allocation options, including buybacks and dividends, likely towards the end of this year or early next year. - Steve Howden, CFO Q: Regarding the FX resets in Nigeria, is there a catch-up effect expected from previous quarters? A: Our contracts in Nigeria reset quarterly based on currency movements, so there is no catch-up effect from previous quarters. The resets are current and reflect the latest currency rates. - Steve Howden, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
IHS Towers Reaches Deal to Sell Its Rwanda Business to Paradigm Tower Ventures
IHS Holding Limited (NYSE:IHS) has entered into an agreement to sell 100% of IHS Rwanda Limited, including its approximately 1,465 sites, to Paradigm Tower Ventures. The transaction is expected to be finalized in the second half of 2025. IHS Holding Limited (NYSE:IHS), most commonly known as HIS Towers, was founded in 2001 and is among the largest independent owners, operators, and developers of shared communications infrastructure globally. The company is the leading independent tower operator in six of the markets where it operates and holds the distinction of being the sole independent tower operator in four of them, with a portfolio exceeding 39,000 towers. In its Q1 2025 earnings, IHS Holding Limited (NYSE:IHS) highlighted that the agreement to sell Rwanda operations for an enterprise value of $274.5 million is part of the company's broader strategy focused on enhancing shareholder value. The deal also underscores the underlying worth of the company's broader portfolio. The company's projections for FY25 also factor in a full-year contribution from its operations in Rwanda. IHS Rwanda began its operations in December 2013. The company later acquired the tower assets of MTN Rwandacell Ltd and took full ownership of Rwanda Towers Ltd, which was previously a subsidiary of Airtel Rwanda Ltd. As a result of these acquisitions, IHS Rwanda had established itself as the leading owner and operator of shared communications infrastructure in the country. To enhance network performance and operational efficiency, IHS Holding Limited (NYSE:IHS) has continuously invested in advanced network monitoring and power systems across its Rwandan sites. IHS Rwanda has remained committed to expanding its services, meeting rising demand, and operating towers with a focus on environmental sustainability. IHS is up by nearly 75% since the start of 2025. While we acknowledge the potential of IHS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IHS and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
IHS Towers Reaches Deal to Sell Its Rwanda Business to Paradigm Tower Ventures
IHS Holding Limited (NYSE:IHS) has entered into an agreement to sell 100% of IHS Rwanda Limited, including its approximately 1,465 sites, to Paradigm Tower Ventures. The transaction is expected to be finalized in the second half of 2025. IHS Holding Limited (NYSE:IHS), most commonly known as HIS Towers, was founded in 2001 and is among the largest independent owners, operators, and developers of shared communications infrastructure globally. The company is the leading independent tower operator in six of the markets where it operates and holds the distinction of being the sole independent tower operator in four of them, with a portfolio exceeding 39,000 towers. In its Q1 2025 earnings, IHS Holding Limited (NYSE:IHS) highlighted that the agreement to sell Rwanda operations for an enterprise value of $274.5 million is part of the company's broader strategy focused on enhancing shareholder value. The deal also underscores the underlying worth of the company's broader portfolio. The company's projections for FY25 also factor in a full-year contribution from its operations in Rwanda. IHS Rwanda began its operations in December 2013. The company later acquired the tower assets of MTN Rwandacell Ltd and took full ownership of Rwanda Towers Ltd, which was previously a subsidiary of Airtel Rwanda Ltd. As a result of these acquisitions, IHS Rwanda had established itself as the leading owner and operator of shared communications infrastructure in the country. To enhance network performance and operational efficiency, IHS Holding Limited (NYSE:IHS) has continuously invested in advanced network monitoring and power systems across its Rwandan sites. IHS Rwanda has remained committed to expanding its services, meeting rising demand, and operating towers with a focus on environmental sustainability. IHS is up by nearly 75% since the start of 2025. While we acknowledge the potential of IHS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than IHS and that has 100x upside potential, check out our report about this cheapest AI stock. READ MORE: and Disclosure. None. Sign in to access your portfolio
Business Wire
20-05-2025
- Business
- Business Wire
IHS Towers Agrees to Sell Rwanda Operations to Paradigm Tower Ventures
LONDON & KIGALI, Rwanda--(BUSINESS WIRE)--IHS Holding Limited (NYSE: IHS) ('IHS Towers'), one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count, has agreed to sell 100% of IHS Rwanda Limited ('IHS Rwanda') including its approximately 1,465 sites 1 to Paradigm Tower Ventures. The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the second half of 2025. The terms of the transaction reflect an enterprise value 2 of $274.5 million, implying a transaction multiple of 8.3x adjusted EBITDA after leases 3. This represents a significant premium compared to the current valuation multiple of the IHS Towers group. Sam Darwish, Chairman & CEO, IHS Towers, commented, 'The agreement to sell our Rwanda operations to Paradigm Tower Ventures was carefully considered as part of our strategic initiatives targeted at shareholder value-creation options and highlights the value of our Rwanda operations within our wider portfolio. We have enjoyed more than 10 years of commercial success in Rwanda. We are deeply appreciative to our colleagues and customers, in addition to the Government of Rwanda for its exemplary and investor supportive framework, who have all helped make IHS Rwanda the success it is today.' Stephen Harris, Co-founder, Paradigm Tower Ventures, said, 'Rwanda represents an exciting market with high demand for shared wireless infrastructure. The Paradigm team is very much looking forward to building a strong customer focused business providing high quality and secure infrastructure to mobile network operators.' 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 eight markets, including Brazil, Cameroon, Colombia, Côte d'Ivoire, Nigeria, Rwanda, South Africa and Zambia. For more information, please email: communications@ or visit: About Paradigm Tower Ventures: Stephen Harris, Hal Hess and Steven Marshall, well respected and experienced former executives of global and African tower businesses, founded Paradigm Infrastructure in 2019. They have substantial experience in the acquisition and operations of tower businesses in multiple African markets. This transaction marks the first investment by Paradigm Tower Ventures, a new tower platform which is focused on the growth of new build shared wireless infrastructure in Sub–Saharan Africa. Paradigm Tower Ventures is backed for this transaction by a consortium of equity and debt finance providers. Cautionary Language 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, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this document may be forward-looking statements, including regarding the enterprise value of the transaction, the total base consideration to be received pursuant to the transaction, the potential impact of the sale of IHS Rwanda under the Company's strategic review process, and the timing of any of the foregoing. In some cases, you can identify forward-looking statements by terms such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'could,' 'intends,' 'targets,' 'commits,' 'projects,' 'contemplates," 'believes,' 'estimates,' 'forecast,' 'predicts,' 'potential' or 'continue' or the negative of these terms or other similar expressions. 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, 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. Further information on such assumptions, risks and uncertainties is available in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2024. We qualify all of our forward-looking statements by these cautionary statements. 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. Websites and other materials References to any website or other documents contained in this press release are provided for convenience only, and their content is not incorporated by reference into this press release. Rounding Certain numbers, sums, and percentages in this press release may be impacted by rounding. Certain definitions We define Adjusted EBITDA for the Group as income/(loss) 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. See our unaudited condensed consolidated interim financial statements filed with the U.S. Securities and Exchange Commission for additional information, definitions and a reconciliation to the most comparable IFRS measures. 1 As of March 31, 2025. 2 Enterprise value is defined as anticipated consideration to be received on a borrowings and cash free basis. Refer to note 20 in our unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025 (filed on form 6-K with the Securities and Exchange Commission on May 20, 2025) for further information. 3 Consists of contribution for Rwanda to Adjusted EBITDA for IHS Holding Limited and its subsidiaries (the 'Group') of $37.6 million for the last 12 months to March 31, 2025, and reduced by $4.4 million for incremental lease costs in Rwanda. Adjusted EBITDA for the Group is defined in our unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025 (filed on form 6-K with the Securities and Exchange Commission on May 20, 2025).
Yahoo
20-05-2025
- Business
- Yahoo
IHS Towers Agrees to Sell Rwanda Operations to Paradigm Tower Ventures
LONDON & KIGALI, Rwanda, May 20, 2025--(BUSINESS WIRE)--IHS Holding Limited (NYSE: IHS) ("IHS Towers"), one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count, has agreed to sell 100% of IHS Rwanda Limited ("IHS Rwanda") including its approximately 1,465 sites1 to Paradigm Tower Ventures. The transaction is subject to customary closing conditions, including government and regulatory approvals, and is expected to close in the second half of 2025. The terms of the transaction reflect an enterprise value2 of $274.5 million, implying a transaction multiple of 8.3x adjusted EBITDA after leases3. This represents a significant premium compared to the current valuation multiple of the IHS Towers group. Sam Darwish, Chairman & CEO, IHS Towers, commented, "The agreement to sell our Rwanda operations to Paradigm Tower Ventures was carefully considered as part of our strategic initiatives targeted at shareholder value-creation options and highlights the value of our Rwanda operations within our wider portfolio. We have enjoyed more than 10 years of commercial success in Rwanda. We are deeply appreciative to our colleagues and customers, in addition to the Government of Rwanda for its exemplary and investor supportive framework, who have all helped make IHS Rwanda the success it is today." Stephen Harris, Co-founder, Paradigm Tower Ventures, said, "Rwanda represents an exciting market with high demand for shared wireless infrastructure. The Paradigm team is very much looking forward to building a strong customer focused business providing high quality and secure infrastructure to mobile network operators." 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 eight markets, including Brazil, Cameroon, Colombia, Côte d'Ivoire, Nigeria, Rwanda, South Africa and Zambia. For more information, please email: communications@ or visit: About Paradigm Tower Ventures: Stephen Harris, Hal Hess and Steven Marshall, well respected and experienced former executives of global and African tower businesses, founded Paradigm Infrastructure in 2019. They have substantial experience in the acquisition and operations of tower businesses in multiple African markets. This transaction marks the first investment by Paradigm Tower Ventures, a new tower platform which is focused on the growth of new build shared wireless infrastructure in Sub–Saharan Africa. Paradigm Tower Ventures is backed for this transaction by a consortium of equity and debt finance providers. Cautionary Language 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, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this document may be forward-looking statements, including regarding the enterprise value of the transaction, the total base consideration to be received pursuant to the transaction, the potential impact of the sale of IHS Rwanda under the Company's strategic review process, and the timing of any of the foregoing. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "commits," "projects," "contemplates," "believes," "estimates," "forecast," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. 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, 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. Further information on such assumptions, risks and uncertainties is available in our filings with the US Securities and Exchange Commission, including our Annual Report on Form 20-F for the fiscal year ended December 31, 2024. We qualify all of our forward-looking statements by these cautionary statements. 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. Websites and other materials References to any website or other documents contained in this press release are provided for convenience only, and their content is not incorporated by reference into this press release. Rounding Certain numbers, sums, and percentages in this press release may be impacted by rounding. Certain definitions We define Adjusted EBITDA for the Group as income/(loss) 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. See our unaudited condensed consolidated interim financial statements filed with the U.S. Securities and Exchange Commission for additional information, definitions and a reconciliation to the most comparable IFRS measures. 1 As of March 31, 2025. 2 Enterprise value is defined as anticipated consideration to be received on a borrowings and cash free basis. Refer to note 20 in our unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025 (filed on form 6-K with the Securities and Exchange Commission on May 20, 2025) for further information. 3 Consists of contribution for Rwanda to Adjusted EBITDA for IHS Holding Limited and its subsidiaries (the "Group") of $37.6 million for the last 12 months to March 31, 2025, and reduced by $4.4 million for incremental lease costs in Rwanda. Adjusted EBITDA for the Group is defined in our unaudited condensed consolidated interim financial statements for the three months ended March 31, 2025 (filed on form 6-K with the Securities and Exchange Commission on May 20, 2025). View source version on Contacts ihstowers@
