IHS - Earnings call 3 2023 | IHS Holding Limited

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Operator

Good day, and welcome to the IHS Holding Limited Earnings Results Call for the 3-month period ended September 30, 2023. Please note that today's conference is being webcast and recorded. [Operator Instructions]At this time, I'd like to turn the conference over to Colby Synesael. Please go ahead, sir.

Colby Synesael

Thank you, operator. for call everyone to also joining today. the Thanks of at IHS. Colby Synesael, here EVP the I'm Communications With are Steve Howden, me CEO; our and today CFO. Sam Darwish, Chairman our and X-month unaudited This published Investor related Relations website XX, financial earnings and our the X-month of issued statements XXXX, morning, on periods our for and we section release September ended presentation. the a and statements which the IHS comprises attention New group's Slide out discuss release earnings X-K consolidated set the draw which Limited, X, are out full, ticker the Holding symbol in disclaimer entirety filed your results to the the be and of today. IHS, as should Stock beginning forward-looking read of in the cautionary of operations.Before York the set on which listed the would These Exchange along results, under on like our the presentation is we with I well to the regarding statement of results assessing difficult which, business. contain any information our the business be view other that and important some particular, EBITDA we to which and industry with In the factors as of beyond Securities assessing discussed measures, those our as cause materially the risks, with Factors or results, of the our uncertainties to which the and our we important Commission adjusted statements, to other including nature, and XX-F factors, such are in non-IFRS discussed may involve performance ALFCF including known that the unknown Risk liquidity implied filed statements, control industry also that forward-looking by to forward-looking section are performance by of be and important or in or achievements different other actual from refer SEC.We'll and achievements Form filings Exchange performance our future view or expressed results, may or predict, to results their our like turn in to our nearest is on IFRS earnings to of I'd -- to over the Chairman available found call metrics section reconciliation Investor can CEO. to be non-IFRS the the metrics Darwish, and that, Relations presentation, of Sam A our which website.With our

Sam Darwish

Thanks, third results our to earnings welcome, Colby, quarter call. and everyone, XXXX

of We EBITDA adjusted performance expectations, recent line current notwithstanding and our solid with revenue quarter of KPIs or a are across in devaluation. our reporting ahead the

While CapEx was are should from results quarter call, QX the currency, of Naira. meaningfully know results first Nigerian below, full prior significant a as our everyone post in these the the devaluation earnings

of the XX% have of to XX.X% the well, quality mid-June QX that contributions across of Overall, XXX XXX Naira to to secular $XXX kick our resets a ] notable the resell versus Positively, robust and setup see by see the we we average As dollar business ForEx negative basis, revenue.The the that our full of in in CapEx driven the by end balanced XXX QX, macroeconomic of reflects more challenging Nigeria, revenue approach this guidance The quarter-over-quarter resetting remains what organic evidence driven structures. each solid expect of our our but QX demand sequential continues growth we particularly QX. began results. year.On environment that to contracts the to contractual towards by across reflects And from [ mechanism world, to a last perform light in and million for end in an our represented will in ForEx reported in we in devalued expect low begun more reduction contract our drove XX.X% in with reminder, segments XXX year reduction protection a a generation of at to in devaluation in XX% of range the taking now a revenue, in. revenue devaluation CapEx cash see in and as a be to increasingly the Naira the mid-June. growth we impact benefit are and our

contracted As which a contractual quarterly has reminder, USD of nearly resets of of sooner, or escalator in XX% of and revenue all our most revenue revenue to our hard is over January. occurred an started really annual which currency,

stopped these we guidance replaced leveraged these We maintaining on. or to between expectations, and better Given have change the had slight reflects definition cash we out range which are revenue, same adjusted metrics and in that levered recurring ALFCF it RLFCF, like outline free ALFCF XXXX point adjusted or CapEx.I'd free our our EBITDA for but later position. that the for maintain for flow also cash RLFCF X will we with reporting flow, liquidity Steve

portfolio cash to while generation recent that cash as double-digit productivity to We healthy Starting generation expect of a our devaluation in on discuss pursue ForEx guidance through the operational XXXX Slide even reductions heightened sharing to addition organic in to X. be our earlier, for reviewing and focus I of cost in we Nigeria, on initiatives key meaningful more significant remain forward in some our XXXX believe a these slowing markets. as with of our versus growth quarter. and delivering continue we look our enable began quarter.Stepping markets enhancements, years.In next we I what evident sustain believe be IHS the constantly will highlights We to core model. to our addition, high-growth are will CapEx capital mid-June allocation inherent want efficiencies help to assets, challenge. to to business access the mentioned We and focus

there governor appointment of more $X billion We reported These approximately in and clear but are, to much of still backlog. of the to the the represent positive is ForEx however, for development, the a do. efforts recently CBN September new more encouraged by government

through confidence remind we over operated gone the to including audience arrive but will We recently to And XXXX, upstreaming we've continue thereafter, over our opportunities our XXXX. like of devaluations, have most do not we will have from remainder XXXX.I would particular, we $XX have so business grow million XX in other each for to in in as this Nigeria, since again completed Nigeria time. in we continued upstream and assess that HX And they outside the time for that period, years. in

and revenue quarters mechanisms profitability Leading XX% are then [ to For growth our a from to quarter next we revenue example, few and in terms of a as to back was In approximately resilient Back XXX ] similar escalations after seeing contract indication an year saw first the our to over next dollar the escalation XXXX, on and we in Brazil, business Africa. the impact to Brazil resets how devaluation revenue in.Moving Naira $X South to But then the goal saw kicked kicked focused to target our now. and of our and business remain reset to as LatAm XXXX, we XXX ForEx achieve in and more the divided profitability remain as And XXX sizable delivering of XX%. beds build-to-suit then, during on Nigeria negative quarter, we built in. program. on year. for towers or XXX the built of we devaluation

encouraged to we basis Bank points months.Now South profile. raising to via term business the more existing the the have past local we debt local better of Africa, debt reduced also Central revenue currency the interest MTN align over are as The our and power level debentures improvement November, few the since seen We with of our consecutive Service with third early others. our by to evaluate on we our load last in profile while our time shedding quarter, we continue by in continue Brazilian issuance XX again loan focus TowerCo Managed in refinanced rates

if of have will you of under the subject We to XXX,XXX to subject are freely months the another over share tradable. our remain on that and on past positive stock Albeit, been over from trading shares has had lockup to tripled which as XX average. The update we have more XXX,XXX Rule per lockup all necessary.On appears than requirements. up on October to shareholder appropriate the day certain XXX freed liquidity, shares, therefore, million impact holders our a XXX agreement liquidity, and now XX, expiration

During program million part to million our repurchased third August to XXXX.Shifting also $X.X and up as spent buyback in our $XX shares we expired the sheet. nearly quarter, that balance share XXX,XXX of

undrawn reduction by balance This we $XXX available April is We from extended between loan October of over have million, undrawn level. reduced liquidity quarter million undrawn to term by because period our the last XXXX $XXX undrawn million various plus facilities $XXX of XXXX ] and portion from facilities the cash have the of $XXX XXXX. [ OpCo availability the to million but at

With range until debt and $XXX from ways please And net feel we the but recently million of still remains derisking ours, the considerations. have and to remember comfortably March maturities monitor to good of we to October about of X XXXX our capital XXXX. of market structure QX regarding to continue again position, target Additionally, done.Lastly, we have maturity meaningful our X.Xx, focus strengthen balance shareholder revolver we further Xx. within group we sheet position evaluate as XXXX. that our have are our our no leverage We successfully extended a

dialogue to with towards continue goals. are our making mutual in constructive Wendel engage We and progress

call time.With also matters turn the commercial better that, on over updates and engage appropriate governance Group to various to provide continue Steve. will additional We and to will with the MTN align at I

Steve Howden

Thanks, Sam, hello, and everyone.

X. to Turning Slide

our show to performance reference in expected, better Nigeria, considering QX devaluation of I'll today. points which line pleased than in the we're was mentioned, Sam various currency the significant As or backdrop at

here, quarter up third a XXXX, versus X% again the the increased third As be towers the and in quarter and full while of adjusted this in EBITDA see not 'XX than in are our reflected percentages.On guidance results basis, that tenants double-digit and by almost our declined would amendments X% prior lease reported you until with the consistent up expectation impact more quarter, QX. devaluation June of revenue

impact case adjusted QX, revenue declined of the is third see distorted noting continued of ALFCF-fell in we comparison in of last by the quarter as presence period-on-period noted driven into in by we quarter, adjusted devaluation than anticipated our more XX.X% results. forward XX.X%, pull by each 'XX one-off it's did some revenue QX offsetting worth some strong the the by and XXXX, on the revenue largely XX.X%, EBITDA organic the markets.However, EBITDA reported QX our a a by that and basis across and of activity Specifically, bit and

attention said to margin earlier the following of Again, similar and a fell adjusted by offset partially our which for an expenditure protections contractual as I kicked Sam by due I'll in.You also Our of by build in shortly. see XXXX, Nigeria in our what the seen EBITDA devaluation having quarters draw XX.X%. decreased earnings your about to back the in in SSA Nigeria increase total nearly quarter, all segments, the XX% capital lower CapEx largely discuss and LatAm,

Sam are price that of next highest we taken look mentioned, the CapEx sharp have the we for on year, the the and returns focusing believe and a into As year projects remainder strategic. most this on

Finally, is XXXX. Again, still guided.Turning within range of QX basis. last a our expected a our was X.Xx the we consolidated X to albeit our QX, at consolidated end net as with last leverage X.Xx year quarter essentially and Xx devaluation, flagged to on with versus we revenue flat increase had increase ratio this consistent the due to

slightly lease You into for a power driven of reported amendments. FX growth third turned primarily the strong due by Africa. decline South revenues resets, revenue consolidated revenue can see and was devaluation XX.X% in organic Organic quarter pass-through Power-related a the how to quarter. increased XX.X% CPI of in increased escalations growth

you than due and see Inorganic XX, can growth. less organic our our can adjusted EBITDA $X growth segments see 'XX. margins QX EBITDA for consolidated the with revenue, sixth the each of Kuwait QX rates Slide delivering acquisition.On stages primarily of you to Nigeria side, organic right-hand was growth our quarter the and the fifth for million, XX% On adjusted for of

generation top impact As up but primarily results are XX.X%, and for Nigeria be XXXX. of $XXX of million, of and and will portion diesel therefore, now expenses.Power discussed million again distorted absence the the a an reflected the expected, versus quarter down revenue EBITDA reflects yet was make rates the adjusted $XX of decreased guidance.While includes cost decrease, in I've $X for million Furthermore, in 'XX, one-off and NGN of last despite driven are wouldn't The a in due third and for decrease of a XX.X% from EBITDA continued led diesel drove million when price to the full reported Project resets $XX by million costs, consumption was we've revenue using decrease including versus the in that XXX of previously QX, in It over dollar-denominated tailwind administrative $XXX FX the trends albeit the with quarter and devaluation to $XX.X discussed, Green. did a $X of in of on million FX a revenue in demonstrated EBITDA assumptions an our XX% offset prior headwind year-over-year July and by as in XX% quarter's Nigeria Xst $X last reported Nigeria. strong In primarily million alongside business, growth particular. by line is in $XX the fully one-off including the we reflect the as adjusted the quarter FX contracts assumed in quarterly a comparison quarter, bit a our of in have the of noted from quarter, decreased QX in third the In the electricity sales almost adjusted XX% these reported some already quarter QX the the prior and resets devaluation kick quarterly decrease million a Nigeria due results. of rates by and changes X% from these margin items third our organic all result our the cost in the Nigeria quarter increase the 'XX, year. adjusted revenue third [ in increase decrease growth average mid-devaluation U.S. margin of calculated to rate revenue ] EBITDA in

net flow replaces of continue reduce to As we we our previously cash ALFCF, Sam alternative power prioritize first or levered Green, the sources free out, adjusted highlighted through on our which, as Project review dependency XX, ALFCF diesel.On RLFCF to of the primary Slide metric. is includes other transaction only of movements The cash reversal costs RLFCF other loss QX differences in operations, discussed an of when each position the reflects liquidity million, excludes also from generated a receivables reconciling ALFCF cost or on that of and of combination This lease and QX we in from costs, income. cash from debt business pointed interest the partially trade inventory. decrease in XX% XXXX offset payments combination and already of including increases factors, in EBITDA and paid, net tax the income better 'XX, the and adjusted bad period.In impairment ALFCF decreased made. withholding taxes and we've CapEx due all allowance paid decreases to maintenance revenue versus $XX by

However, in driven driven of expenditure offset decreased decrease as related million by capital the had. year-on-year. capital segment. in This SSA capital $XXX the our decrease and of and primarily LatAm CapEx Site 'XX, Nigeria segment to million revenue driven nearly Green increase million New QX third respectively, in related rate to SSA increased the prior expenditure, is decreases conversion was the capital quarter.Turning to segments and in lower was increase a some of of capital XX% primarily quarter decrease for by growth increases partially primarily CapEx. expenditure expenditure is Project million, Sites CapEx. by $XX a while $XX an capital The related expenditure, our includes decreases for LatAm one-off $XX reminder, driven in million New Nigeria by we ALFCF primarily the New versus and of maintenance Sites year's XX.X% cash $XX to expenditure by rate The ALFCF XXXX. In the to other

we forecasted.On I'll Nigeria the $XXX XX, this the The earnings the the have through first million original of walk we of since Green as our and was review XXXX, total our complex remains discussed we CapEx environment million Project spend a million, $X.X spent project segment on calls $XXX million for on total $XX quarter began spending year-to-date versus business. during Slide third was the prior while Our year. macro Nigeria

We with more showing contact in devaluation. recently customers, Nigeria be close initial it the from impacts are to We actions albeit have new is businesses, also line swift key done. government, in our work published that the taken of the still which top although healthy the X by needs again remain results by clear encouraged their

some continue into need regulators, been already continue at ICE the step to country to backlog the banking to continue and cautiously participants Market also with having to potential have believe the partners $XX.X published at difficult with they vendors billion our point and the of of price best and will be closely regarding work continue that IHS.While to end We in the Meanwhile, billion recently local various liquidity clear FX system at to transactions, government remain oil we end underway. from dollars to U.S. XXXX. increased both reserves $XX.X the June stories decreased source in our of and of actions inject position FX September the XXXX optimistic, CBN to have Gasoil recently. to

the Overall, strong in petrol versus removal with this endure and devaluation or continuing Gasoil, count the year-on-year reflecting ton to and to discussed this each items we've other the to XX.X% QX Revenue 'XX, organic decreased an basis in success revenue. a largely QX by Looking of the resets, quarter, $XXX the once long-term quarter point, the growth tenant but metrics. delivered jumped again count earlier factor subsidy, positioned lease discussed. organic X.X% now and year, believe impact in continue real the the impact key in quarter XX.X% business XX.X% basis, in for but to Inflation and GDP remains reported of million third $XXX of tower rate decommissioning increased over of well growth case by negative $XXX full September of the at FX ICE $XXX Nigeria on devaluation.Our however, primarily it all on increased decreased 'XX, to from our X.X%. September challenges.To up well projected planned X%, therein. the 'XX, growth. Organic on a not was year X.X% It was with driven the in XXXX due amendments total tracking the escalations expanded FX per by which XX% macroeconomic our quarter, XX% the lower ton results 'XX.Moving reflecting per third we of versus a million by large business each was and this does

rate improved the particularly colocation XX.X% driver administrative was headwind.Segment sales. consequently 'XX. primarily to upgrades.QX by of our revenue, adjusted Sites, Revenue these Lease adjusted cost sites, from revenue XX.X% quarter amendments tenants in XX% by Our of EBITDA driven and growth and a of in African in colocations increased to a increasing which a sales versus be adjusted up while impacting partially by quarter devaluation offset revenue, additional and Naira to 'XX. million, by by the as offset an from of escalations, Nigeria was increased decreased third partially and our cost FX adjusted X.XXx towers to nearly segment, New in and $XXX year expenses. with XX%, In increases Segment increased XX.X% the X.X%, case, by by X.XXx, EBITDA by driven in quarter-on-quarter EBITDA QX. XX.X% increased third resets, Sub-Saharan from added margin equipment segment grew largely driven XX%, our overall X.X%, primarily decrease X.X% down organic was the respectively, X.X% ago, strong customers by continued in each margin of a to decrease basis segment points XG XX EBITDA 'XX FX

was evaluate towers macro continue recently, offerings.In moderated the as power utility, services and South monitor We and tenants respectively, steady appears managed in previously as load towers, to X,XXX whereas grew which our ongoing shedding the XX%, second respectively, power In to macro and by discussed, X.X%, Africa, national were continue EBITDA largest to LatAm FX rates came and 'XX. all environment QX interest down. our adjusted by segment, by the particularly have X.X% and and versus market we'll held cases positive our XX% conditions revenue largely in Brazil, segment rates increased

adjusted revenue driven go back 'XX In a XXX with While Q-on-Q, increased increase up primarily EBITDA from and of again saw in did EBITDA increase.In an basis inflation October. by it XX.X% fiber our escalations. by QX down ] Segment we LatAm grew the quarter EBITDA in ISystems XX% organic take quarter grew organic overall, XX.X% XX.X%, and in in by decrease 'XX Slide segment, deployment the our margin segment MENA the [ point including the adjusted revenue growth. I'll XX%, XX% a and adjusted with briefly in sales.On XX%, respectively, highlight to X.X% revenue and and of by grew EBITDA and segment XX.X%, revenue KPIs. segment, tenants Segment the a towers adjusted cost by of grew QX XX, reflecting increased margin

and As up count period Sites Sub-Saharan LatAm X.X% the September was ongoing driven segment. our of from in by primarily African last XX,XXX, same XX, year, New tower

through can up with in the X,XXX right, sites. you the tenants of top X.XXx, approximately over X.X% grew we the target rate on the the and quarter continue during year of achieve Total build in the see XXX slightly new to colocation third see the built to full last year. we XXXX, build quarters of XXXX ramp-up As as of towers collectively, versus chart

bullet drew Limited Of $XXX from lease the that lease million our our increased almost and and XG X-year XX in billion to Holding year-on-year.On structure Slide we indebtedness at given we that [ continue related and At other the in historic capital approximately We liabilities. Nigerian XG of XX% increasing significant us, increased out a the activity September financings look our are amendments seeing. billion we ] items. IHS debt XX, had bond we particularly These segment, by amendments point down XXXX now the level. are XXXX, debt, represents XX, $X.XX for factor and of billion $X.XX $X.XX million IFRS external loan term $XXX at

reduced loan undrawn million currently maturity the under period quarter. we availability $XXX no commitments, under has mentioned, October, to million outstanding increased $XXX $XXX under available Nigeria. term either and group this extended we undrawn April the as And in the million RCF by to XXXX.Capacity from this from RCF in XXXX. now down balance the March to the Sam are to extended group However, of the or amounts of local XXXX in $XXX in currency November, RCF have October million There the facility we this

strong billion debt X.Xx Xx, from held leverage Naira of terms of in approximately the quarter, that cash And debentures our consolidated in of the in moving cash was Additionally, our our balance of the maturity all used proceeds BRL end our Consequently, Brazil, for demonstrating Nigeria of we that at of target sheet. issued debentures in XX. June purposes. to during XXXX. of X.X semiannually repay was from QX end which and X.Xx, and range X amortized to 'XX, low of held the is The our and million, the these issuance elements, for as billion, cash was August still the reduce approximately XXX was consolidated million rate debt essentially the the at well refinancing the until $XXX maturity XX% September existing of debt.Cash were at extended at approximately [ This full outstanding as principal further at net interest leverage Brazilian approximately where corporate total and up flat million debt million is $XXX equivalents the net BRL versus ratio business. general the currency net local $X.X prior ], $XXX in

into light leverage what tick to to up we similar Nigeria would note first the in devaluation, last XX. of half XXXX.Moving expect said do Slide I However, to of quarter, more the slightly we that the

are adjusted revenue, our We and EBITDA guidance for maintaining CapEx.

However, we with FCF are replacing guidance our ALFCF.

absolute retained from Although quarter our XXX to NGN the we we $X $X Naira for XXX NGN reduced guidance the the previous ]. fourth have expectations [ have for to to terms, in

EBITDA. range As the for be the expect a of result, low now adjusted to end at we

making ALFCF be the the more to CapEx, also that expect range We the low into is but we RLFCF. spend, end decisions for same previously of to our XXXX.Our this of at we a range continue and curtail are proactive will reflection is had for guidance

However, $X in otherwise includes offsets the the see adjusted in calculation, benefit terms in approximate to it an headwind of difference which FX we EBITDA. million expect

As [ that we the full step-up revenue of resets such power difficult recognized which again anticipate we a a pass-through delayed, could in high in in 'XX that million revenue see reminder, the to would ALFCF. $XX our benefit began we ] devaluation include also to to South FX mid-June.Guidance in expect QX in approximately to of Nigerian see as continues adjusted do timing moves predict EBITDA that Africa, or we have this I $XX million do QX. not to want caution is through and of be although impact

your annual for downside presentation. and This the last the of been quarter. last versus the our has used for shows $XX And open XX to the quarter.And XX, bottom, our on formal that build time towers on year XXXX whereas breakout the million contract to split. the our questions. since This includes side versus previous 'XX, guidance reporting updated The Nigeria ] right Slide to approximately We we you rate the QX FX operator, line can top, [ see additional the on now on based in we in expect an now you for rates end by today. currency towers. average now for assumed year, For revenue please X,XXX of thank brings provide revenue assumptions us guidance.And equates

Operator

Your question from [Operator of line the Instructions] first TD comes Greg Williams from Cowen.

Gregory Williams

] to what much wondering move X,XXX reality. for it the a beyond.And second And and the this is towers of migration are like short impact in American And around how can just for and hoping go really coast think practical to would the you XXX Zambia d'Ivoire sounds just an is becoming But in Tower. as threat you with and impacts from just risk deval, back contracts here. and Rwanda MTN question a ramps your million update with out time the past? was further MTN [ My be and Great. you're exposure, go questions in 'XX think frame? a quarter. noted the how they it's the then, could and at and over it $XX It it's preparing the on in about sunsets further how the is the Naira if I migration the

Sam Darwish

This business the probably is they into still moved it which a I'll look, second, talk let the about X to material not maybe Sam. is successfully these we'll materiality going questionable, mean Many even X business. dissect in categories. by about questions. very is me if try to to like the start forward. or Maybe, talking currencies, I

around tenants represents have X% of maybe in XX,XXX X%, MTN the of the across And X,XXX ] Nigeria XXXX of We towers, And our Nigeria, average contracts group group. X% with beyond and tenants of [ revenue. beyond barely center of many sites XX,XXX out total the years with the the majority other coming XXXX. over our renewals in X are up in these

important for And can over feel which growth than more are towers through good than these all per have States, that markets, we this of without X to XG, towers SIM with remain to coverage, past the the in service, they think like in quality for XX% make even the coverage. situation up capacity, the years, increasing before that given issues villages because, more point believe Nigeria for So be calls requirements subscriber like phone Greg our our tower note rate, our relationships.Now density that market demand I also, we expanding twice It's than impact more deal been organic we about for it's thousands we has mature example, across the part. of in markets built United even that cell of is various the the underserved. for we Nigeria an commercial important cards

one we So that flow towers not continue to growth resources from swap firmly capital to and believe will and operator to another. in to

remember, I far. other outside So largest competitor, that's of of renewals in our to in I closest in many in that in look, the mean by particular, terms mean, materiality.Now -- of have we Nigeria, are we terms Nigeria, our need that, towers. highlight I markets, XX,XXX other

our lack that's our may prospects, and Our size. or thereof of about ], negotiations but of It feel accurate. Nigeria, engage more even actually of credible a given the to X,XXX, lack closest time we competitor markets our in alternative. many Outside case be alternatives [ other take good has half

in it that's practical or do is me third on different matter, by terms this addressing Maybe So matter.Now perspective. think from pragmatic. a start or that let of relocation transition the that we

the lowest churn operator And a for very good we to from business one rare ]. tower Moving globally another have, customer of [ one reasons. as sector, is

to engaged United public better to public towers another move the legal declarations and from to AT&T threats the perspective, with one with only X.X-year look with that, towers this they States TowerCos period. out operator you X%. very So the XXX, at XXXX, look are this filings, during of of maybe X.X-year let's the a and and action after familiar into and XXXX many you over under put period. the at XX,XXX SEC situation guys period, their And a if XXX move dispute

the optimizing ranging levels systems permits, almost into States and is at need costs, have the to the its years.Now were served build very limited all of and this towers these it the logistical will local environment. a and security, the Nigeria being Unlike built after systems that materials, United are imported millions causing itself to all company. they [ [ run, complex by have need complex the ] network process is Nigeria course, towers significant of be relocating relatively using that to be a with to and a all advanced contrast causing and the and ]. XXX connectivity after States, of the in of complicated these barely [ there -- [ grid in environmental customers you States there power the Greg Now this, build framework are permitting do have concerns XX% ] build, United towers. and also, Nigeria, and way.Then the Then the unlike the Unlike they covers States, the to this producing to of is to towers of manufacturing even need by to United United and period of delays, AT&T then X.X tower, towers ] and headed, transporting look additional causing XXX, unnecessary power infrastructure, regulatory of building in the moved multiple don't the

United build are again, have.So a co-locate we can't nearest towers, Now the of a tower remember, just that with This XX,XXX provider existing likely you moving tower. are Greg, on the in next locations X,XXX. the the has to means Nigeria nutshell, largest tower portfolio towers in you that need substantial I I new if And -- as what why competitor you simply said. about we ended relocation [ X,XXX respectful. up to year this XXX is the but project are this on suggests being AT&T States, saying. we again, we while is in X.X-year Look, in Nigeria. suggested be have about a sites resource moving are, a mean XXX, almost relocating period in comfortable over that where I you ]

to of have be client relationships. mindful We our

to in to way support important engage, and continue our it's We customers possible. every

We understand We and think we to service-driven way. we'll company. this are that continue that, believe a

Operator

comes line Your Philip JP Morgan. the next question from Cusick of from

Philip Cusick

seems give any improved X maybe And Can discussions you then relationship? you with say like second, of the understand it just in over annual everything pickup covered Can for what quarters? you January the on revenue us could that Nigeria while Wendel. reset? are you you an a of quarterly of resets happen the the contract contracts. update a next little I on couple takes some expected those MTN the it And that And the on quantify versus more side. mentioned

Steve Howden

first part. I'll take the

resetting majority, but And of quarter. at some XX% different the average are the quarter contracts some some the you quarterly, so take rightly in over and vast beginning are spot the as of points, rate of an a FX the ] them Nigeria in and [ of reset preceding with contracts vast, the reset thinking of

Naira again quantified, months were rate.We last on a devalued on, of and ones up the the you spot results last another look reset of the of we've know given I up what look account the quarter of our guidance see ones we obviously haven't million, of a in taking take through see you far you're year, range that QX is, on but we've flow-through seen and you that $X,XXX when of the step year, of when sort through So October, that mathematically those the Xst will the full quarter million you results the posted is posted at EBITDA, step full the reset much into quarter X can so so we'll $X,XXX reset And X July. we average use at then we the being far. is. on the example EBITDA months give million. at $XXX -- X the that an even If just bottom into range, the if to at the what looking And pretty

So the first we've that's ] this going quarter. be in $X million to [ just posted

next expect So an see in guidance idea to the straight our of that gives sort mathematically we'd quarter. of from you that step-up just

Sam Darwish

sticklers, to shareholders. note regarding to value talk we ideas also standards idea help that et very our et Look, we Phil, To could second particular, comes it equally on are standards on shareholders, On and question, value cetera. keen important to governance we cetera, the communicate. governance, our we're important, that the the exploration, improve also to always engage, keen in to to are the when of any It's of and creation, continue talk. pre-IPO

and avoid point a want very our list why health It's eye standards, high way, because such accountable to United this in us. companies decided, Commission. United the is Exchange a companies not of under buy global or we company States be the of by lot Securities to don't to high So the a States of the a good watchful they

where problem business. focused strengthening and the including running that, in the of Now time. but the will we steadfast that remain the duties focused fell minority clients. public in finding peers, We physical again see we to But we Board it's an equities, our believe bellwether itself. [ having growing have primarily focus our and towards is our above.So resilient protect acknowledge, environment And and We all our something of the with high keep the Directors we a and keep for I the said the raise ] of investors it. already and It's and made also intend business a also and markets, various dialogue to do as and including keep also talking safeguard pre-IPO it's of that intend is demand -- are believe said including reason business everyone, have of industry resilient job to and solutions most up are -- We interest to interest But rising on to of we alert business business our our important alert also having hopefully, our there. the towards. that, shareholders, over keep our shareholders, running rates our strong. very benefit the business to and

Operator

[Operator Sachs. Instructions] Goldman Feldman line And your Brett next question comes from from the of

Brett Feldman

questions. of couple A

like more discussing being deploy you capital. where portfolio sounded context were within of it you you And a made on it focused the about comments So review. the would

I that into of is has capacity lot you looks other, prioritize sheet? you the sure selling Would a some How review you maybe it's the program, curious have that projects could your capital ahead what for whether big strengthening context further which I'm or still monetize, fund sell markets assets additional entirely it I go capital? capital Sub-Saharan less could a whether portfolio? projects. whether excess be balance go from that and assets because of on you capital broader it? are one either was.And sale portfolio or towards it's held pieces markets, spending and had in something then mostly were So just Or But there way answer, assets. and that regardless more of you the the the on saw the African would generating wasn't would or perhaps or the under buyback capital could unique

Sam Darwish

as always we at again, sure a the I focus that think our the Brett, moment, we've remain sheet, resilient balance part basically as making been. Look, the the important is, business, main

and that, said of store exporting we that we showing company is flow is. there. terms we that finalize always [ is. is in having mindset addition, place situation along generation And keep balance of the and extremely reviews strengthening the this how our cash believe a get world to to try constantly there moving ourselves every Now again, option out maintaining in the unturned, to no want ] mean said better in where share we've our leave share course, of I into sheet. And undervalued lines are basically of

options go get I hope of like we will are the of to details achieve. terms all the in all honest.And So open. kind announced. But into ] table, extra to up cash and that be on show Again, decided are things and of can't unless we kind options like [ --

Remember, a we company We are reviewing. constantly core. are at growth

table. we'll potential at look always buybacks, review But other option, So the including potential things and growth opportunities. are on every other

Steve Howden

we bucket years, we're remember spend the guidance question, into mind, add is projects, that think couple of excess CapEx variety of have And on $XXX per growth-oriented, year a that million in whilst at in getting just Brett, spent one last Keep I'll not just towers, point just we'll in -- this XXXX which of I'll for of year. Project add. fiber, in just we time, Green. each about that the

of have different and Project growth publicly. again, XXXX, know, Sam trying value towers a purely a much generation trade-off maximum the XXXX, the flavor the to said, cash and generate fiber, we're thinking right And as of a about will the in some because for heavy as we spend such business announced cash with preservation was within and making really spend Likewise, and in shareholders. decisions those be of Green, we've that and year. XXXX things lighter next we're program versus will that

Operator

Citi. of the from Rollins next Your line comes from Michael question

Michael Rollins

could. if I questions, Two

taking is was step have of mentioned look are the The any curious a perspective? geographic the us well months for the if we're as that is secondly, churn differences rates if can common articulate just background key And back, remind could referenced you last as the I with of the what kind business. churn just first like in regions? you to you few just MTN evolved, where and those of company the Wendel, for to low then the where ground in and situation. if you and over those differences have And appreciate curious you changed any have there just trying

Steve Howden

on so first Mike, the one churn.

small, you revenue something we factor don't ] principally, that include quite know, been As course in selling our you that while. for of not because [ and a it's growth, discussing we've others with

the was [ is in obviously it XX quarter ]. gone, Given,

it's So across was sometimes [ quarters, next a prior In XX. to XXX, base of it's XXX XX,XXX X. sometimes tenants, sometimes our ], churn

customers define customers we of our revenue tier of small comes the the materials over So And call those do the then the period out we to what of who base. blend see, churn customers. also that you look on the nonkey are, and maybe a And rates tends XX%, be churn time, north at represent key churn We actually, that albeit who XX% when even of of our majority sort in they're tenants customers. sub-X%. of of nonkey the X%, disclosure top

Sam Darwish

we on change the has the And to given MTN to about governance about them Mike. On a a particular in the this the took client. actually a which IPO pre-IPO substantial and I've This shareholders influence of We shareholders. is Wendel few of between [ situation. spoken post the a one efforts complexity again, second and And question, that in minutes ] us perceive our have shareholders, that particular, more client them been ago. is large requirements, and balance our side, spoken

So requirements are their a as complex will It's demand, we and appropriate. report, X an Mike, clear. their discussion,

Michael Rollins

if is and a past trying to want bring or just of value. this value. referenced to continue goals there have set take you X best more. to If used gold simplify course there progress determine Is into one I forward X, higher best the do been the the shareholder up for you with that that able the or different could to improve create call, X, improved company follow can on principles things Is you've In to that the that as to shareholders. company anything shareholder results actions level that you this on

Steve Howden

how on on of get very a able around I'll matters forthcoming capital this this the of and and call around look shareholder CapEx side bit previously to MTN maybe organic at we've mean, Mike, deployment. I we with also that. on more and quarter the the going to resolving And been we're now We're that. expect side. cognizant

of forward come we'll constantly to looking And within we're are where thinking, how those that, about one's ways as a through adding markets and to over world everybody and look happy as of with company pushing and is improve you're upon in to you're forward. And are the today, thinking see we that business within recognition they moments thinking when things we're become we're that progressing, starting situation those that is continue the we communicate as initial globe company, terms on a Sam board, said of. as no those as ago, couple few of constantly so that initiatives of [indiscernible]. then to elements more within we'll can macroeconomic a just the a also continue and valued couple ] the as of so time the see a we starting [ our in to facing.And some And

Sam Darwish

so have dealing we forget, with. issues Mike, mean, I don't we're

macro We not have is the which situation, global conducive.

we're of which [ to our Nigeria, trying for ]. in concentration kind diversify like sold out a have We

some addressed. to relatively elevated also be needs have concentration, which client We

of to I'm daily trading period. addition in past all -- -- said volumes a have which as to over happy tripled earlier, have our improved, has this, has We trading daily almost situation, the we I that tripled, have say

the to our multiple on do capital. to shareholders. again, We the small mindful lockups And allocate in of be with. But all removed there with we all it. buyback of we each a terms we a in recently But we that issues now different announced exercised have moving advise of deal how way.In a potential of just are we trading, right need part are trying example, we need direction. So it deal to for

other the on in back not we this basically challenging and Rome initiatives and why are with of come ] situation. levels some address the these especially [ need the is careful, on we But to was there thoughtful again, share we a So to various different do other -- day, different navigating may of see price And shareholder things and be challenges. undervalued. built global

Operator

Quarter Holding The management That brings the today any via address, us end e-mail contact you of IHS the Investor the investorrelations@ihstowers.com. XXXX Earnings Limited your wish Call. Third good thank for Should and day. team, participation Relations questions, to a you Results have you team please the

IHS Holding Limited (IHS) 14 Nov 232023 Q3 Earnings call transcript