IHS - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the IHS Holding Limited Second Quarter 2024 Earnings Results Call for the 3-month period ended June 30, 2024. 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 Naya Bermudez. Please go ahead.

Naya Bermudez

Thank you, operator. for call everyone to also joining today. the Thanks of here at Naya Bermudez, Relations Manager Senior I'm IHS. Investor unaudited morning, me of With today published X-month CFO. This and can June SEC, section XX, be are Chairman for XXXX, our period we with ended our and Relations Sam found CEO; Howden, on our Steve Investor financial website. the statements which the Darwish, also our the

of ticker are IHS related a release, and the earnings operations. listed consolidated These the the Exchange results and Limited, We York also issued Group's comprises on Holding supplemental presentation of is symbol which Stock deck. the which entirety New under IHS the

beginning contain which performance may industry different should difficult unknown their Securities statements EBITDA that, factors, to nature, view regarding of important other like are industry full, Form earnings which, today. we non-IFRS by our draw our In set our forward-looking metrics particular, actual cause to metrics cautionary also your of any performance the presentation, other be with to along to be ALFCF our of Factors found from information by or liquidity reconciliation results, and the which in the and our measures, uncertainties as and on and factors, XX-F implied predict our the achievements the the some and future control, set business. be the attention well or statements section risks, the earnings in disclaimers filed to beyond the in the X, to SEC. We'll can with statements, Slide Chairman read or release involve I turn Before as X-K to in on call presentation are the Investor of including materially achievements other or discuss Risk Exchange like Commission may in available results, results assessing known statements, which our of those results would in discussed out to view the be forward-looking of performance such at results, including the we CEO. and the adjusted forward-looking out we and IFRS business website. And to filings nearest important expressed that over that and important Relations A I'd with our which Darwish, discussed refer assessing filed section or is of non-IFRS Sam our as

Sam Darwish

second call. while and everyone, meaningfully. performance quarter our results decreased Thanks, EBITDA solid XXXX We're adjusted Naya, earnings to ALFCF welcome, reporting revenue, on CapEx and

in began resets impacts relationship long-term we of and in and quarter, IHS XX,XXX adjusted but progress includes more will through in as The quarter. tenancies Rwanda our EBITDA first highest we the ForEx the shortly. We've returns, lease MTN devaluation will the goals ongoing the the with and of deliver with announced to reflects made started XXXX generate to in week, And commercial Nigeria. January reduction MTN in that most significant benefits We a Africa more Nigeria X our contracts XXXX, just our last step-up in rearview focus also X,XXX the that of remain from our quarter were review, amendments. adjusted MTN and and actions South on projects covering extended saw approximately of we're I and in Nigeria. all of in commercial also margin of in This contract revenue to cash XX,XXX narrow taking detail important believe of with due matters tower negative a we significant the the with of to milestone we mirror the more naira realize This in our and XXXX putting EBITDA main extension through strategic XXXX, which the XXXX. discuss our contracts tenancies contracts renewed the expire with X,XXX with MTN approximately will nearly the notably, renewal XXXX through now CapEx

countries Over have all month, next XX,XXX we last extended amendments tenancies renewed with across decade. in approximately lease addition the or MTN XX,XXX to the X into

of and renewals MTN average tenant with an value now efficiencies. creation more approximately we $XX.X the With now X than operational on of remaining can term billion focus have contracted We years. completed, revenues

increase EBITDA XXX the in revenue quarter as in me Let tenants, net contract the amendments towers, by highlights was saw by versus Organic adjusted Brazil. Group-wide, also we from built our XXX financial We and in. for XX% our XXXX XXXX added of QX we XXX including resets quarter. increased XX%. touch saw growth and lease X,XXX X% kick some on QX

adjusted driving higher remainder from the the margin remain the in the our devaluation of margins we trends QX For after of and strong the as emanating healthy year, XXXX January Nigeria. dip in underlying expect our continued EBITDA business the KPIs performance

average for U.S. naira dollar the the the ForEx quarter, the During to rate was X,XXX.

market ForEx and stabilizes, USD we gradually to continue more see favorable U.S. an to conditions Group. source availability the Nigeria the dollars upstream to As

Turning Slide to X.

financial where rollout how which and signed Nigeria, across In a to African tenancies in with demand. Group contract the year Building companies continue IHS delivering all as data complex MTN mobile partners, of and XX,XXX challenging will MTN want we we markets sites a across and both foreign colleagues included provide are markets. engineering renewed to X for inclusion. I connectivity Towers agreement African team tower diesel-linked recent the renewals see, commend between MTN with also and shares X operating a Cote environment excellence companies Nigerian are new potential more remember, risk XX,XXX. do XX,XXX in we to a extension. The relationship The Nigeria, of renewed position, business As d'Ivoire Nigeria commercial Group set work and XX-plus operational nearly Zambia, all renewed over the and leverage includes out total across with meet demonstrates you XXXX, in expertise component IHS collaboratively our that 'XX deliver the expire line record to sophisticated tenancies, we count approximately currency increasingly covering across Together, digital the our their both agreement through that extended value great tenant growth shared that track long-term conditions our users in Africa, navigating commercial crucial and Cameroon, the and also other diesel. and to a 'XX, economic contract and split MTN South and solution our efforts the our agreement to get Rwanda, this in to Nigeria a in bringing our the can their helps Please Nigeria fluctuations February, between macroeconomic of which having of introduces stability. X-year a local X,XXX were have with together X,XXX X,XXX contracts due better cost connectivity secure Airtel of Nigeria sustainable tenant to find on and and end in and the approximate Africa. multiyear naira to

to and MTN relationship together the our mitigate of fluctuations a are conditions our global Nigeria is valued renewal The with infrastructure. element Africa, commitment testament against the a now power energy unwind mobile more price a power introduction services as connectivity protected and the in to our through of work and much managed impacts in to indexation the company. of macro broaden we critical With South

working to mobile We fast-growing data look continue to critical MTN connectivity believe services enable as vast opportunity the in forward communication with well address Nigeria increasing market. in to as in this and demand and

milestones, across of a great progress In making addition we number our to are initiatives. commercial

to look the X at some Slide turn highlights. of Let's to

we elements as resolving As the suppressed are versus our of of review to on by and it as our as positive existing framework relates commercial matters renewals improving to MTN. evidenced reflected unlocking AGM our contract shareholder with our value starting governance comprehensive outcome such our deliver 'XX the strategic by valuation,

focus to our profitability our increasing substantially generation. improve reducing on operating to cash In we and addition, flow continue CapEx

how of into artificial We are CapEx us efficiencies. realize we assessing introduce costs technology, structures, ways help intelligence including to especially can group-wide our working and more

Brazilian quarter, levels the but speed efficiencies, the well. integration and business we market also fiber tower reorganized our operations, increasing only business. as between cost benefits of During also provide not our to will This

higher We margins our are versus beginning results, to of improvements this implies overall efficiency see of the 'XX in 'XX. impact continuation 'XX a guidance QX our and

primarily be proceeds billion. IHS introducing also raised and/or to examine our as composition to right include markets considering debt a we previously reduce capital will this of for $XXX share going with forward. initiatives continue million portfolio the from these a will target policy. The to $X determine dividend indicated, Additionally, And raising while to allocated of buybacks

additional these are we parallel shareholder reminder, initial not a As increasing targets in rule in value. initiatives of our pursuit out do assessing

on Moving governance. to

I achievement amend governance anticipate approved are a shareholders to any marked issues remain the companies. engaged due course. AGM at The the With governance mentioned, we proposals articles with outstanding our voting were for in association on significant MTN, we of framework IHS, a held agreeable As and better of the mutually aligning results that in company's by resolution pleased U.S.-listed that just June. mature

top priority. our to remains Moving which a balance sheet,

debt extend interest liquidity. We currency. local into expense At $XXX end pursue continue available maturities, shift we to the to of remain actively comfortable quarter, and as of million more we had initiatives manage the

to of to our target like this end at expect We year, Xx to top then the an rate basis to first update end within the again initially remain and Bank Xx range. I'd further continue interest on May by the of range Nigeria's Since the now Nigeria in macro. in of XX.XX%, provide leverage to increased the July. points XXX quarter, of the Central policy albeit

Nigeria in naira to continues remains ForEx inflation the optimistic XXXX. remain As We the on to X, as the focused stabilized price modestly market closing the ] country. at with August in stability CBN combat have appears on X,XXX cautiously [ and

we which of U.S. $XX Group during conditions half XXXX. of million after see continue we second our permitting, the We $XXX to in upstreamed supported more the expect quarter. the of dollar approximately availability to nearly to and second year-to-date, million Market through sourcing country, upstream which have

in sale is built during a completed of quarter second subsidiary and on our SBA Peru towers our we Brazil total year-to-date. We And earlier, fastest the of which XXXX. for noted committed as XX, towers we to remain of XXX on market our largest growing. Lastly, April LatAm, Brazil, to one the XXX Communications

drive to to strong I Steve. and significant turn the continue We operational that, ongoing with will see growth opportunities. And there call results over

Steve Howden

Sam, everyone. hello, Thanks, and

Slide Turning to XX.

our mentioned, we Sam show As QX here, performance.

was growth NGN tenants again naira positive last however, markets. The continuing across declined 'XX, by of while QX double-digit QX an NGN and from revenue versus this XXX QX towers both year amendments second dollar impacted adjusted QX basis, signs up year-over-year. and the in X,XXX Therefore, see, tenancy you percentages, devaluation of a to fundamental year. are of in on lease the 'XX, performance rate 'XX by X% quarter key in to the financial reported the in our EBITDA As of underlying average year-on-year approximately increased

However, kicked step resets FX as the profitability up a indicated the contract of in meaningful see as last we naira. devaluation impact quarter, in of now the following general our revenue

the basis by and by quarter reported XX.X% the in Specifically, declined of than on of revenue driven ALFCF year quarter the second increased strong we impact versus increase by X.X% year, devaluation organic revenue the fell the and adjusted XX% X% in QX, growth. last first decreased EBITDA and each EBITDA by from more of XX%, a largely saw adjusted offsetting case this

to year-over-year notable EBITDA adjusted a improvement increased XX.X%, and quarter-over-quarter. our However, margin

that's X.Xx target increase consistent with to XX% consolidated up the by across following significant and as in expected at versus the and the QX remain driven by finally, Xx Our within level expect decreased net we to flagged devaluation of our leverage of increased the the of guided. in leverage pullback to this QX, all we Nigeria remain CapEx end January. our investment ratio quarter, And in But CapEx X.Xx segments. year, Xx our

some and how have and XX, with the more structure to Slide I to MTN contract updated wanted our power Moving color provide on exposure. derisked we

terms for left the would in the you split the Nigeria. for new XXXX, contract financial a quarter comparison contracts it On see between after MTN and what adjusting actual with side, our looked second like have in renewed revenue by

these foreign those changes signed fluctuations. and in component the a believe we end, terms included quarter Given in more FX XXXX acts against XXXX provides price split and X, balanced what results. from diesel of the impact will and currencies diesel-linked reflect post August were being Despite in newly Nigeria local not agreements our the new effective second quarter third the introduced impact MTN quarter initial is structure hedge are results. The as April the between a the

and Africa the months to some fluctuations, And whereby level on business decline. elements annually. The of balanced and growth believe longer organic the change last XX.X% QX will every continue quarter FX on our on our of a applied where for shows component indexation within shared lease segments growth U.S. from introducing quarterly in risk together Our amendments, this model. And backup terms, see fees of new again side into our USD our model MTN Nigeria our segment contracts the operating local diesel more Slide EBITDA the revenue, the of The our from of second each these resets. On own IHS USD sites you use have important had component you how primarily yet and The a now organic price quarter, also MTN EBITDA our with benefit including turning hedged growth changes approximately split XX, diesel grew portfolio. our year, benefit power strong to footprint. a the new XXX%, reduced, Fiber, a now devaluation can reduced can the moving rather their and devalued risk. are benefit consolidated adjusted we of significantly no businesses FX country that in than of being is is which resets pass-through escalations, X CPI-linked is that use now risk It's against and return, exposure to have with CPI-linked power basis, see fees. large consolidated contributed the continued FX to or always power countries under the to escalations, have revenue organic new came escalations for local indexation power there our XXXX. a currency means XX.X%, its adjusted contract note now from power. versus CPI but unbundling from through South the significant delivered to margins quarter Nigeria colocation to We on turned passed annual across moved our will continue the Nigeria, MTN in predominantly growth new 'XX by either indexation. All driven business organic right to the of naira XX.X% resets, power quarter has and in materially across with

over year-over-year includes a FX quarter-over-quarter resets it's and naira revenue of adjusting $XX past As discussed, the XX%, quarter million top strong from in for of of revenue the $XXX drove actually quarterly growth in again the reported the In revenue business. a million the devaluation, reported but million devaluation that headwind net over 'XX, headwind growth headwind decrease after a a the organic $XXX the demonstrated impact the line XX% QX year. trends naira despite

of As Nigeria results in the USD-denominated January X,XXX up from adjusted last we've quarter quarterly, basis $XXX while portion power costs. On up a contracts XX%, we 'XX, maintenance EBITDA decrease XXXX, in reflect and flow. from FX free by last primarily decrease the review our million the operations offset the interest sales, of in quarter the devaluation. In our from of of generated the adjusted of costs, by revenue, XX% second points reflect margin a post resets EBITDA cash QX EBITDA a changes decrease our margin of XX, was a most an prior previously maintenance on therefore, with decrease partially the year adjusted decrease versus year-over-year devaluation decreased points repairs decrease generation naira quarter. along basis the offset to FX benefit year, In partially primarily XX.X% and in in now ALFCF tower we reset Slide XXX and noted, The EBITDA adjusted cash from 'XX net and levered in reset adjusted $XX late in our million, paid, and CapEx. lower driven of a cost second by of increase due

to conversion The rate of still second XXXX, driven level was XX% in was was CapEx by decreases quarter at driven by Our of Green decreases LatAm and decreased a in and healthy was And cash decrease maintenance primarily the across decrease refurbishment the with Brazil. decrease Project $XX million CapEx, site ALFCF primarily in XX.X%. to looking expenditure in capital segments, SSA CapEx year-on-year. site build in our MENA lower by new related the driven decrease we CapEx, although all CapEx. while driven decrease new retain primarily related The by of in a Nigeria,

these to stabilizing the have nearly X,XXX on a program FX increase June actions the Group July, positive in May, on March. reserves XX, environment Nigeria. a at we're of direct were basis U.S. XXXX. Since to dollars a $X.X U.S. a upstream There the raised ]. Most Xth approved of Nigeria FX These review of destination NPR in had more flow Nigeria of the hikes earlier the Bank the XX total to appear and as recently, the what remains billion at markets. end second rate during segment aim followed access impact in bringing million actions, from increased U.S. an as and rates we've still to to adjusted transparency obligations in basis the comments the and billion within for In do. I and naira dollar dollar the Bloomberg dollar locally as World the enhancing the market attractiveness country January On to to by in the improving XXX billion point government $XXX quarter. dollar the Nigeria's Sam's economy $XX.X is add money to the Slide want country, increasing interest February, Nigeria the we with NGN settle X another But result have $XX.X the to [ rate with focused investment seen August in XX.X%, and on to of of on in end FX in points, by Nigeria increase after seeing CBN able million $XX of in to foreign

more the of rest to year. to We continue throughout expect the upstream

in IHS driven on a XX% For resets $XXX and revenue headwind $XXX meaningful negative million year-over-year, basis, quarter million Nigeria, XXX% year-on-year was FX step-up primarily FX by quarter. that Nonetheless, second from organic which growth, last of escalations. reflecting decreased offsetting more the than reported a

added the Our last decrease colocation sales, in completed, XX.X%, We business of agreement up revenue segment basis unwinding it revenue increased X.X% tenants has and sites. QX amendments but prior the from a Africa as maintenance respectively, our this continue X.Xx, reduction Africa margin which EBITDA rate by additional net EBITDA year given be customers services adjusted pass-through was improved Lease of increase driven revenue cost a in by a year of of recognition Therefore, a X.XXx driver EBITDA year full managed Nigeria in Segment cost adjusted as a Sub-Saharan QX as growth, Towers up equipment opposed costs. In primarily now for original power impacted time quarter. in to XX.X% last adjusted recognize been. year. and segment whereby gross but from and and this XX.X%. gross segment, to we a in recognition. from by our points South increasing now $XXX to the versus power guidance tower revenues decrease in quarter, XXX was XX% to strong ago, repairs being this to previously X.X% decreased the 'XX increased segment to our X.X%, our last year-on-year the and million, XX% by flagged

X,XXX towers, the drawn XX, $X.X of and approximately the we level. the from XXXX, $X and have that debt liabilities. conditions, structure X.X% headwinds our billion X,XXX organic bullet as million while EBITDA positive which changing, items. margin IFRS maintenance inflation EBITDA, billion mechanics X.X% revenue the segment sales growth Slide EBITDA result been this organic and time and primarily decrease X.X%, year, grew at South XX.X% grew driven both FX the represent costs. In largest by with derisking XX.X%, capital from to by increase Segment of growth notwithstanding movements loan increased and X.X%, a XX, towers the a LatAm the to as revenue in points benefited to sites decrease recognition market the leading the adjusted in and towers adjusted by billion, to by we devalued lower costs. and and in adjusted XXX at interest discussed our XX.X%. Onto segment, mostly at IHS Brazil, $X.X the the respectively, against a by 'XX by has of reflects basis revenue QX revenue with pass-through tenants a again therefore, generation X.X%, of addition negative EBITDA Segment escalations. by of decrease FX MENA, and EBITDA driven XX.X%, down. and and macro EBITDA adjusted as result including related external versus Limited $XXX mostly increased a further last adjusted X.X% cost bond a increased adjusted In down segment Of XX.X% X%, increased new margin as had revenue includes XX in decreased MTN in other which revenue respectively, last were real this term power that unwind model. In quarter. tenants In year, look increased financing indebtedness dollar agreement came Africa quarter, business the our Brazilian last as decreased and we from lease June X-year versus point reduction approximately basis QX XX.X% our rates second Oi Segment the and And we and Holding margin, also

$XX manage towerco expense, strength an structure. possible our and approximately of debentures million We've and Brazil and for and initiatives capital flexibility to plenty $XX review. the includes more As dollar into to the fiberco continuing of where come that improve cash interest million, initiatives sheet component to after add the mentioned, second currency XX. and to of terms Sam of balance and strategic to balance is maturities, equivalents held, of year. Cash respectively, $XXX and our various June approximately XX% as sheet extend important we This And our continued in half and the business. million in to cash as obligations was over is mentioned. already local rate swap held million were where flexibility We the in signed undertaken during quarter, $XX increased we naira, that able Nigerian upstream

anticipate consolidated billion, of we 'XX, the the versus can elements it remains X.Xx While March Consequently, end end to at had from ratio debt caution moving increased X.Xx, again 'XX. these of do in if $X.X upstream net all QX the to be up approximately consolidated and our be we of net determined XXXX, leverage dollar we availability was sustained. a

remain to year our net prior which at of expect to disposals leverage this the the future realization ratio any Xx to drop. target to we leverage time expect We within leverage Xx

million. MTN negatively to approximately will for as XXXX renewed million year MTN our last with anticipate results a impact by agreement We XX. updated $XX with $XX guidance week result contracts and that Slide our extended XXXX our to Nigeria. the of fiscal Moving We

X, were Although in August they effective signed the XXXX, XXXX. April are contracts

revenue expect with more to And diesel $XX price headwind from we approximately operating colocations on amendments. and basis, leverage. our an of and annualized And benefit benefit so from is EBITDA, impact reduced will million. Despite expect we continue exposure, the we'll the business

a not services our reminder, MTN in previously. And finally, this of already in As in as But it unwind again, South our the has guidance power impact quarter. managed been factored Slide completed we does XX. Africa the on agreement with

our revenue left, assumptions provide split. the you of the FX thank of now of can to are you bottom line right, the we please currency We the now average for in breakout for on slide QX, for used quarter. This end time reporting guidance unchanged from the operator, by your see formal questions. and contract last whereas based annual on us the And brings rate shows the open today. presentation. XXXX On our The revenue

Operator

the Your Goldman line first from question of Schneider Jim from comes Sachs.

Jim Schneider

you lease sense and a in to African new how -- that broader you is this there -- macro more Just some of overall this I in Nigeria the as a -- positive point view profile. to Do mean, kind you activity And any what activity year, at would feel accelerate? both wanted time you characterize at step like mentioned point? your or get of Any activity. would expect you leasing to up

Steve Howden

here. mean Yes, Steve it's Jim, is there. be the growth certainly, I quarter demonstrating the fundamental characteristics continue to

terms XXX in about quarter. sites, growth have now did in of newbuild we think of we right we if buckets the So different the

around of that and look XG of we've the in kind CapEx, there actually in and a where a of one continued we've lot the slow particular in bit. well. And particularly had the there, a carriers chunk little We in with Rwanda colocation in of pulled you is invest actually, when in quarter. where deal the and a colocation Now we've that as at in back in new good Nigeria continue being reached a quarter some the the scattered South Africa X quarter markets. But see lease decided of African out Africa. which of is LatAm, amendments, growth to of we are chunk in was steady was there A X,XXX-plus lease the out Nigeria, coming actually where portfolio rollout close lot driven XXX those as to of the of the amendments

their they rationalize and to where markets. our at too So sort global in how steady knowing of look I ahead growth good. kind can, trying is we'll spend impacting don't yes, in But macro everybody looking that of carriers in the continue are of industry. key think given ourselves CapEx to the a still see the terms of plans signs still get we

Jim Schneider

you of if deals any can maybe are asset to on there just buyers? want Xth that follow-up, later with a as you to maybe of are maybe Xth where potential sort sale the innings, Are discussions the some your in major And analogy? baseball stages a you characterize use towards

Steve Howden

We won't on a drawn baseball drawn We get understand last line it in want we in gave topic. analogy, much. back I were We've particular to reiterated May today. but a ]. time don't billion No, I'm [ May. $XXX too looking look, million too into generally quarter to $X that proceeds. I of said comments that to raise into Well, Brit get ourselves XX-month we that your

And track. happening, on now. when discussions we'll concrete that we'll but something of all just there update And people for leave it There discuss. to so are is there's

Operator

question line from of the Atkin The next Markets. Capital Jon from RBC is

Jonathan Atkin

has think but of judge be Xth lot Cricket that. inning Xth to early, let might the as of innings, actually qualify so I a I'll you

So X I just was interested, things.

to what's talked about out the On LatAm a then in and a also what continue what just about initiatives so terms of increased which continue be ruling talk to flexibility assess outcomes, in that? that there's amendments I shareholder little more But strategic about not towards we a to would potential review, question. value, allocation, lot and and parallel. behind noticed drive you dividends Can buybacks, of forth. that that significantly you decision? And further of bit share increasing talk capital might you driving

Steve Howden

jump view, on flavor back lease then on come in a amendments. and and the comment first I'll then bit I'll Sam I'll So as LatAm to let the of well, strategic

wanted for we review, broad provide We're to strategic can create we value-creating we also looking on So very, we're opportunities. whole to in focused terms of at variety value what potential thinking the we some the quarter look, to that set don't consistently are of how characterized of very shareholders. way about guidance is the targets, when it those And last we want out rule whilst as opportunities. a

is of if that work, our say renewal, important. we not of value on sits also internal be like what very with is might in the that disposals of like, sort like MTN progress creation. things progress the all governance, It in minds things Now would type, any also you but squarely terms

of characterized think targeting said, after some disposals value with So we're And strands far, we'll methods will other so there's creation. to that. pay debt lots that, The we've return to shareholder initially. we thinking different look what about we've our and around direct down

know same. of want add LatAm. that specific that don't to the I go So on before if Sam, all anything I you remains back to

Sam Darwish

I really unlock. We look, value really more Jon, that market than think the intrinsic very shareholder it's -- we believe is focused much remain there awarding is our on value us. important

more the float free is than Our moment at XX%.

years. renewals We anymore no for have X at least major coming

billion more have cap revenue, yet billion. contracted than of remains under $X market our We $XX.X

done. as market they we we've unturn for wait we happen. to what awarded. We'll stone of the until So Xth now, to much things than is will finish, realizes say value will like But and been there then will announce until this it's no the inning kind leave more we company

Steve Howden

And then, question. lease your Jon, amendment on

So too a wasn't there lease amendments. much of LatAm on step-up

you're lease they quarter albeit They was rollout XXX from Africa, that QX. versus in in was there were amendments segment, XG when last QX South SSA were about see within step-up we ago, year quarter quarter, did looking now the this XXX and So at comparative which a that Africa. South are where of some sort in XX in the

Jonathan Atkin

What's year-on-year driving step-up LatAm? the in

Steve Howden

I yet. we to doesn't customers to It's taking XXX, XX But overplay kind across up simply the have from the compare the which space stepping portfolio. more of That's sizeably that towers. that on again, wouldn't XX,XXX that that just

Jonathan Atkin

organic because Sam's question to on recovery LatAm, that Oi And tenant color that of going around the the recovery how more kind region to as And kind to as your there. But there then aspirations have affected be noted Oi was of judicial you're multiyear peers just of well. But less the know mix given will any have impact. proceedings your one that exposed LatAm, judicial then I growth I some the might ask by a and answer, proceedings? in

Steve Howden

kind you that's mean, of I LatAm rates year. out backed around, Oi FX growth for from because Yes. unpack at and items, this growth, X% of year about them if you were but we our versus we when this sorts look those last time

So LatAm. actually, more for like rate organic XX%, growth XX% the is

the numbers. of taken recovery And of And judicial our Oi they out we've have, decent how to So growth continue it progresses. that in tied say, that plan we'll absence the we that's effectively you revenue. see see as that double-digit to and

there's then upside. So to extent will the that from that, that realizations be

Jonathan Atkin

pieces margins on And contracted to what backlog? contracted Sam around or And backlog. lot associated script pricing. would path, and a kind lastly, I kind guardrails of of repeated then to the the energy any in with a medium you generation FX around backlog? of bracket of EBITDA associated put think moving you about as the terms there's we margin in longer-term And But incremental and that brackets know revenue with put margins that how

Steve Howden

take of that way revenue that site is contracted the on that's today. $XX.X works sort billion I'll that. the mean, I business Yes. of The

effectively full margin. that XX% we're your year to quarter, about as or XX% to gets you the this So margin guiding

quarter-on-quarter of year, So said piece, higher I XX% we we people consistently this exiting the and through are be than the quarters. sort But think what through we into can -- are break which around year through the 'XX. expect And margins we've of you the continue that when 'XX mid- our to that, pretty triangulate is in now down high-XXs. to starting course guidance it we to progression margins see into seeing last the few

in years of trending in So for said meeting couple that's terms right time. X we're but XX% targeting margins. ], direction. And targeting, certainly We're [ with a we the so this and of long, something away, a a long EBITDA we're

Sam Darwish

largest now fact also with before. we that did our that a believe, not we have with we we in power indexation MTN, have which Jon, believe, And Nigeria Jon, -- client also the that

on our stable Africa that in going our fact the way to going make future. Power-as-a-Service addition has more In margins to business moved into is from South forward the

Operator

question the next from Richard Choe from is JPMorgan. Your of line

Richard Choe

the questions, transition growing at and you other rate potential Nigeria expected? markets that the a it of talk overall. macro specifically in X power could the usage? you initiatives business? then Is company and about major specific. had of seeing are more data level managed And as of indexation on costs have kind of are and maybe on cost your What there one I And one to then kind bit little out you I the less for services, come that company, more guess

Steve Howden

to take want want take the data the I'll side you cover do cost Sam, just to but macro one? if the usage Sure. of you things first, one.

The transitioning as we've those obviously, areas business you're which Richard, OpCos, right. to look at doing the we've locally So been been models. initial within are,

as happening and realization of quarter but quarter bit, that go see as next along this kind you'll that's been so into And well. of we the little a elements in then

our cost group, at we also more that As central cost different it element relates operate the look profitability is if an at to further of and you to can strategic looking like, continuing we're which is including kind ways review, of initiatives, structures, efficiently. that around

Some be more business that shift can efficient, of overall element, such cost. that's away of is ways more accurate ultimately because looking use from but more the it this some of in we to technology, of introduce We're to reduce trying model trying new just intelligence power and working. artificial at

of just of So that the period continue any want will that's don't time. yet, numbers strategic that for on put an a happening. but is quite I review and element to of kind ongoing

Sam Darwish

market Richard. the massive we're growth, the of terms side, seeing African In on growth

usage. these seeing. are believe of than example, the we're kind year-on-year recently I increase for XX% in terms reported mean, Nigeria, in So more MTN I of data numbers

more again, growth So modest, runway that remains there. remains data but large. LatAm is

Richard Choe

Great.

growth So the or some it will And been data point, headwinds has carriers volatility, there's in economic keep pretty like seems investing have strong. despite the at to in networks. their some

Sam Darwish

one-way our in what in no phones. but able global smartphone putting we is new choice. macro, of traffic. adoption, is in to demand new terms whether which some users in meet terms to cyclical, They CapEx have mean, demand meet cycle, on they just macro in adoption, a than they we're and moment, population, is It's into their point the pressure terms have just to, I later. of at sooner pressure local to At the entries be adopting opinion, believe the the seeing of have of that time, fintech

Operator

Barclays. of And line your from next Maurice Patrick question from is the

Maurice Patrick

please. couple, a got I've

new it operator also upbeat bit mean, for coverage. really I when message The the in on here and as as first follow question for referring traffic, need were I sort one, think now And a a very on call as densification but well was future. Helios to were partly densification the Richard's around they they week, of a traffic last growth. from the talking I on and

Nigeria the with between second bit from outlook tailwind resets, in quite moving lot but want year give cost asking is of trajectory. more to more you question a seem rather do revenues yet, and investors mix, to the increased doubt so have coming on more you're XXXX if understand of I'm Airtel. I and for a the the differences just CPI the tailwind parts be Nigerian happy tenancies You that's guess keen to EBITDA are to quite EBITDA, around cautious. LatAm I than geographic from companies? And you'll next

X,XXX You'll the presumably lost tenancies. have headwind a from

you next you up can't EBITDA if or if even year. say you moving not some us just through go could So think in Nigeria walk parts, will

Steve Howden

Let's talk first. about that last one

some you unpack driver and one the XXXX but to XXXX biggest mean, rest to too IHS we're I 'XX going of right, Maurice, is would element to parts. it's another point like early you're have obviously, But moving So QX so the and I be the devaluation. you guidance, looks started for in metrics macroeconomically of far was for the for speaking,

start of ] through more QX. obviously, as was say, devaluation, then [ in run dip, earnings So significant of let' in is which obviously, revenue rebounded that in year. the now even naira But the drop dip back there a then post to you get you the a and rate quarter QX end

looks having certainly, hard of curve XXXX, good So would this time, of But be our let's point at it form move doesn't what but hope kind forward we'll step a any forward see. like. into include change, we about as you think in

one probably look area at. that's So to

You're absolutely by business, right being by do in way. is Nigeria, driven continuing MTN Airtel. organic growth to the

next colocation, seriously. into Brazil and lease seeing starts back build this end of roll year the come We're around to out through XG plenty around around year more as of So new sites, more that traction will as towards well. amendments in

as but thought, I had now slower bit it's gather LatAm, while I it's take-up pace. there, been to XG a it's it think starting the originally relates to than people think some

I into next through that to think year. So we're come see going

you're -- resets, contractual right, usual. and flow then terms as in through all will So those of

So those are some a it's putting Obviously, us for yet. of numbers it the early moving that. parts bit on without

Maurice Patrick

point? densification the On

Steve Howden

their points I it's can you do in I'm point. I densification a it. and different cycle, not across markets bit mean, apples-to-apples with little complete Yes, draw So different technology a sure think to right?

early than little that XG of penetrated of see but sort to on see still We're Nigeria, flow cusp now. are I early we're Nigeria. more as would starting it a a days. in to Africa. advanced mentioned, largely but markets bit and just South LatAm, say We're I XG. to of now, Our bit it And it's starting days, in starting

given markets, are we the as the in well. that So technology I and and to think colocations last thousands question of more where we've lease of thousands it's few over a amendments years, of the add cycle recognizing continued

split metrics how do. them. We out, mind, to differently merge they we keep them in Helios X Just report those

keep that mind. in just So

Maurice Patrick

Helpful.

may. one small if I question, Just very

Just $XXX CapEx the the [ you guidance, to $XXX million ]. million on reiterated

below running up I that in significant XH of step CapEx? think the a the based kind driving think XH, [ got don't BTS. rate. you've in run first so well ], huge What's at million half, the you're on I $XXX

Steve Howden

delivering to fair we step as as goes. retain looking -- little a step-up pipeline, at at in trim fiber we'll again We've through QX. well. look guidance And go and we're metric It's goes we'll a But maybe will been that guidance CapEx slightly. the it that see right that's point. how We've number that got or our as BTS whether in

certainly the trending bottom of range, at that are yes. We end

Operator

earnings team wish and Limited you Should participation IHS you quarter you investorrelations@ihstowers.com. Holding brings day. that The for of good thank second please results call. the And your XXXX the the any a team, contact to today questions, Relations us via have address, Investor management end e-mail the

IHS Holding Limited (IHS) 13 Aug 242024 Q2 Earnings call transcript