Telecom Equipment

IHS Towers targets revenue of $2.2 bn and Capex of $650 mn

March 28, 2023

IHS Towers has revealed 2023 guidance: revenue of $2,190-$2,220 million, Adjusted EBITDA of $1,200-$1,220 million, RLFCF of $430-450 million, total Capex of $610-650 million and net leverage ratio target remains 3.0x-4.0x.
IHS Towers said it is expecting 23 percent increase in revenue during 2023 as compared with 24.2 percent growth achieved in 2022.

IHS Towers is targeting Project Green Capex of $90-100 million in 2022. IHS Towers aims to build 1,200 sites of which ~150 sites in Nigeria and ~750 sites in Brazil.

Spending for Project Green was $103.6 million in 2022, including $61.3 million in the fourth quarter of 2022.

IHS Towers said capital expenditures were $195.6 million during the fourth quarter of 2022 compared to $150.6 million in the fourth quarter of 2021. The increase is driven by increases in Nigeria, Latam and Sub-Saharan Africa segments of $31.8 million, $9.4 million and $6.3 million, respectively.

Sam Darwish, IHS Towers Chairman and Chief Executive Officer, said: “2022 results included two acquisitions that bolstered our size in Brazil and allowed us to enter South Africa as the largest independent tower operator in the country. Both transactions demonstrate how IHS continues to deliver on our diversification strategy.”

IHS Towers reported revenue of $1.961 billion in 2022 compared to $1.579 billion in 2021, an increase of $381.6 million, or 24.2 percent.

Aggregate inorganic revenue was $151.5 million, or 9.6 percent, for the twelve-month period ended December 31, 2022, driven by the MTN South Africa Acquisition, GTS SP5 Acquisition, I-Systems Acquisition and fifth stage of the Kuwait Acquisition.

IHS Towers reported loss of $470.4 million for the twelve months ended December 31, 2022 compared to loss of $26.1 million for the twelve months ended December 31, 2021. The loss for the year reflects the impact of an increase in finance costs mainly due to an increase in foreign exchange losses on financing and an increase in interest expense.

The loss for the year is also due to an increase in cost of sales, including diesel costs and administrative expenses, IHS Towers said in its earnings report.