Core Insights - IHS Holding reported quarterly earnings of $0.73 per share, significantly exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.46 per share a year ago, representing an earnings surprise of 812.50% [1] - The company posted revenues of $437.82 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.82%, although this is a decline from year-ago revenues of $509.78 million [2] - IHS Holding shares have increased by approximately 33.9% since the beginning of the year, contrasting with a decline of -3.5% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $415.52 million, and for the current fiscal year, it is $0.55 on revenues of $1.67 billion [7] - The estimate revisions trend for IHS Holding is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Communication - Infrastructure industry, to which IHS Holding belongs, is currently ranked in the top 5% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Revenue Dependence and Customer Relationships - For the year ended December 31, 2024, revenue from the top three MNO customers accounted for 99% of consolidated revenue, with MTN Nigeria and Airtel Nigeria contributing 46% and 11%, respectively [51]. - 58.3% of the company's revenue for the year ended December 31, 2024, was derived from Nigerian operations, highlighting the significant reliance on this market [65]. - The company is dependent on the financial strength of its customers, many of whom may operate with substantial leverage, impacting their capital spending and demand for tower space [52]. - The company has experienced disputes with customers regarding lease agreements, which could lead to terminations or modifications adversely affecting revenue [55]. - Consolidation among customers could lead to reduced demand for tower space and negatively impact revenue [119]. - MTN Group accounted for 61% and 60% of the company's revenue for the years ended December 31, 2024, and 2023, respectively [244]. Financial Risks and Foreign Exchange Exposure - For the years ended December 31, 2024, 2023, and 2022, 47%, 49%, and 52% of the company's revenue was linked to the U.S. dollar and euro, indicating significant foreign exchange exposure [68]. - The Naira depreciated by 69.1% against the U.S. dollar from June 14, 2023, to December 31, 2024, impacting the company's financial results and customer payment capabilities [73]. - The company holds approximately $2,447.9 million in U.S. dollar-denominated debt as of December 31, 2024, which exposes it to foreign exchange risks [76]. - Diesel costs, a significant expense for the company, are linked to U.S. dollars, and any depreciation of local currencies could increase operational costs [78]. - The company may face challenges in maintaining foreign exchange protection mechanisms in contracts, which could adversely affect financial performance [72]. - The existence of multiple foreign exchange markets may complicate the translation of financial results into U.S. dollars, affecting overall financial condition [81]. Operational Challenges and Cost Management - The company is focusing on operational efficiencies through cost reductions and a strategic review process aimed at aligning initiatives with long-term objectives and shareholder value creation [92]. - The company relies heavily on diesel for operations, particularly in markets with unreliable power grids, and any disruption in diesel supply could significantly impact service delivery and financial performance [101]. - The company may face increased operating costs due to diesel price volatility, which has been influenced by various geopolitical and economic factors [107]. - The company plans to adopt a balanced approach to revenue growth and cash generation, particularly in response to macroeconomic headwinds, including the depreciation of the Naira in June 2023 and January 2024 [92]. Regulatory and Compliance Risks - The company may face penalties for non-compliance with licensing and approval requirements, which could adversely affect its operations and financial condition [155]. - The Federal Competition and Consumer Protection Commission in Nigeria may classify the company as having a dominant market share, which could result in regulatory inquiries or actions, including fines or operational restrictions [218]. - The company is subject to ongoing tax audits in multiple jurisdictions, which could result in material liabilities and affect its financial condition [225]. - Changes in tax laws, including the introduction of a global minimum tax rate of 15% under the OECD's BEPS project, may adversely impact the company's tax obligations and overall financial position [230]. Technology and Cybersecurity Risks - The company relies on key information technology systems, which may be vulnerable to physical or digital damage, security breaches, or cyberattacks [182]. - Cybersecurity risks are evolving, with potential impacts on IT systems and confidential information due to increased frequency and sophistication of cyberattacks [184]. - The implementation of new technology upgrades, including artificial intelligence, involves risks that could disrupt operations and financial reporting [171]. Environmental, Social, and Governance (ESG) Considerations - The company is subject to increasing scrutiny regarding its sustainability and ESG initiatives, which may impact operational costs and reputation if not executed effectively [94]. - The company may incur substantial costs related to environmental compliance and remediation due to its operations involving hazardous materials, which could adversely affect its financial condition [194]. - Climate change poses inherent risks that could disrupt operations and increase costs, impacting the company's financial condition [209]. - The company anticipates facing increased regulations and stakeholder expectations related to climate change, which could adversely affect its business operations [210]. Internal Control and Financial Reporting - A material weakness in internal control over financial reporting was identified as of December 31, 2024, affecting the ability to produce accurate financial statements [175]. - The independent registered public accounting firm issued an adverse opinion regarding internal control over financial reporting due to the identified material weakness [178]. - The company may face delays and increased costs in remediating identified weaknesses in internal controls, impacting financial condition and operating results [176]. Market Competition and Growth Strategy - The company is expanding into new geographic markets, including Latin America and South Africa, which may present unique competitive and regulatory challenges [67]. - The competitive landscape in Brazil includes ATC, SBA, and Highline, which own more towers than the company [1]. - Increased competition may lead to higher costs for acquiring attractive tower portfolios and could limit acquisition opportunities [2]. - The company may need to adapt its business model to accommodate new technologies such as 5G, which could affect growth opportunities [125].

FOR IMMEDIATE RELEASE IHS HOLDING LIMITED REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS FULL YEAR 2024 FINANCIAL RESULTS AHEAD OF GUIDANCE SIGNIFICANT PROGRESS MADE DELIVERING STRATEGIC REVIEW London, United Kingdom, March 18, 2025. IHS Holding Limited (NYSE: IHS) ("IHS Towers" or the "Company"), one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, today reported financial results for the fourth quarter and full y ...

Core Insights - IHS Holding possesses several strong competitive advantages that safeguard its financial performance while the stock is trading at a discount [1] Group 1: Company Analysis - The company is viewed as an attractive investment opportunity due to its competitive advantages [1] - The stock is currently undervalued, presenting a potential buying opportunity for investors [1] Group 2: Investment Philosophy - The investment approach emphasizes a focus on emerging markets and seeks low-risk, high-uncertainty bets [1] - The investor's philosophy is influenced by notable economists and emphasizes an owner-mindset while largely ignoring macroeconomic noise [1]

Industry Perspective - The deal signifies a major consolidation within the telecom industry, with companies adjusting their portfolios and strategies to meet evolving market conditions and technological advancements [1] - The transaction aligns with IHS Holdings' strategy to explore opportunities that enhance shareholder value [1] Company Actions - IHS Holding has completed the sale of its tower operations in Kuwait to Zain Group for an enterprise value of $230 million [2] - The proceeds from the sale will primarily be utilized to reduce the company's debt, leading to a healthier financial position and improved balance sheet in the upcoming quarters [1][2] Company Portfolio - IHS Holdings operates a portfolio of over 39,000 towers across nine markets, including Brazil, Cameroon, Colombia, Cote d'Ivoire, Egypt, Nigeria, Rwanda, South Africa, and Zambia [2] - Zain now holds a 70% stake in IHS Kuwait Limited, which includes approximately 1,675 sites and an additional 700 managed sites [10] Market Performance - Shares of IHS Towers have decreased by 27.5% over the past year, contrasting with the industry's growth of 10.1% [11] - IHS Towers currently holds a Zacks Rank of 3 (Hold) [12]

Group 1 - IHS Holding has entered into a definitive agreement to sell its tower operations in Kuwait to Zain Group for an enterprise value of $230 million, which includes approximately 1,675 sites and an additional 700 managed sites [1] - Zain Group, founded in 1983, serves 47.2 million active customers across the Middle East and Africa and is well-equipped to integrate the new towers into its network [2] - The acquisition is expected to close in the first half of 2025, subject to customary closing conditions and regulatory approvals, with Zain Group acquiring a 70% stake in IHS Kuwait Limited [3] Group 2 - The deal represents significant consolidation within the telecom industry, as companies adapt to changing market conditions and technological advancements, and is part of IHS Holdings' strategy to drive shareholder value [4] - Proceeds from the transaction will primarily be used to reduce IHS's debt, contributing to a healthier financial position and improved balance sheet in upcoming quarters [4] - IHS shares have declined by 29% over the past year, contrasting with the industry's growth of 14.8% [5]

IHS TOWERS 3Q24 EARNINGS RESULTS NOVEMBER 12, 2024 DISCLAIMER 2 Forward-Looking Information This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange ...

Financial Data and Key Metrics Changes - The unaudited financial statements for the three-month period ended September 30, 2024, were published, indicating the consolidated results of IHS Holding Limited [3]. Business Line Data and Key Metrics Changes - No specific details regarding changes in business line data and key metrics were provided in the available content. Market Data and Key Metrics Changes - No specific details regarding changes in market data and key metrics were provided in the available content. Company Strategy and Development Direction and Industry Competition - No specific details regarding company strategy, development direction, or industry competition were provided in the available content. Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the available content. Other Important Information - A disclaimer regarding forward-looking statements was highlighted, indicating that the information discussed may involve known and unknown risks and uncertainties [4]. Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content.

Group 1 - IHS Holding reported a quarterly loss of $0.61 per share, significantly worse than the Zacks Consensus Estimate of $0.11, marking an earnings surprise of -654.55% [1] - The company posted revenues of $420.28 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 1.88%, but down from $467.02 million year-over-year [2] - IHS Holding shares have declined approximately 39.8% year-to-date, contrasting with the S&P 500's gain of 25.8% [3] Group 2 - The earnings outlook for IHS Holding is mixed, with the current consensus EPS estimate for the upcoming quarter at $0.11 on revenues of $413.74 million, and for the current fiscal year at -$4.82 on revenues of $1.68 billion [7] - The Communication - Infrastructure industry, to which IHS Holding belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Revenue Performance - The company reported a significant increase in contracted revenue, with a total of $1.5 billion expected from key customers over the next five years[10]. - Revenue for the three months ended September 30, 2024, was $420,282,000, a decrease of 10.0% from $467,023,000 in the same period of 2023[38]. - Revenue for the nine months ended September 30, 2024, was $1,273,403,000, down 21.2% from $1,615,755,000 in the same period of 2023[38]. - The company has secured new agreements with MTN Nigeria, which are projected to enhance financial performance by approximately $15 million annually[2]. - Revenue from Customer A represented 62% of total revenue for the three months ended September 30, 2024, while Customer B accounted for 14%, indicating a slight decrease from 63% and 14% respectively in the same period of 2023[89]. Operating Expenses and Income - Operating expenses rose by 10% year-over-year, primarily due to increased diesel costs and maintenance expenses[5]. - Operating income for the three months ended September 30, 2024, was $125,787,000, compared to $13,627,000 in the same period of 2023[38]. - Total cost of sales for the three months ended September 30, 2024, was $201,745,000, down from $358,883,000 in the same period of 2023, with significant reductions in power generation costs and depreciation[91]. - Administrative expenses for the three months ended September 30, 2024, totaled $93,835,000, compared to $347,558,000 for the same period in 2023, reflecting a decrease in staff costs and impairment of withholding tax receivables[95]. Financial Position - Total assets as of September 30, 2024, were $4,571,232,000, down from $5,364,710,000 as of December 31, 2023[42]. - Total liabilities as of September 30, 2024, were $4,837,196,000, compared to $5,017,356,000 as of December 31, 2023[42]. - Cash and cash equivalents as of September 30, 2024, increased to $397,499,000 from $293,823,000 as of December 31, 2023[42]. - Total equity as of September 30, 2024, was $206,477,000, a decrease from $464,345,000 as of September 30, 2023, reflecting a decline of approximately 56%[44]. Losses and Impairments - Loss for the period for the three months ended September 30, 2024, was $205,703,000, a decrease from $268,804,000 in the same period of 2023[38]. - The company reported a loss for the period of $1,878,540,000 for the nine months ended September 30, 2024, compared to a loss of $1,523,021,000 for the same period in 2023, indicating an increase in losses of approximately 23%[44]. - The impairment of property, plant, and equipment, and intangible assets excluding goodwill for the nine months ended September 30, 2024, was $87,894,000[131]. Strategic Initiatives - A strategic review is underway to enhance productivity and reduce costs, with an estimated savings target of $50 million annually[2]. - Future acquisitions are being considered to expand market presence, particularly in emerging markets[2]. - The company plans to invest $200 million in new technology and infrastructure development over the next two years[10]. - The company is focused on expanding its operations in emerging markets, including recent investments in the Middle East and Latin America[154]. Sustainability and Efficiency - The company aims to reduce diesel consumption by 30% as part of its sustainability initiatives, integrating solar solutions into its operations[3]. - The demand for Colocation and Lease Amendments is driven by MNOs' needs for greater network coverage and density due to capacity constraints and subscriber demand for wireless services[177]. - Maintenance capital expenditure is necessary for optimal operation of the tower portfolio, including repairs and replacements of equipment, which may decrease with improved grid availability[197]. Debt and Financing - The Group's total borrowings as of September 30, 2024, were $3.53 billion, with a fair value of $3.50 billion, indicating a slight increase from $3.22 billion in December 2023[74]. - The company drew down €56.1 million (approximately $62.6 million) and XOF 7,109.0 million (approximately $12.1 million) under the CIV (2023) Term Loan in February 2024, primarily for prepaying existing borrowings[119]. - In March 2024, the company entered into a $270.0 million loan agreement with Standard Chartered Bank, which is scheduled to terminate in March 2026[122]. Currency and Foreign Exchange - The impact of currency fluctuations, particularly the devaluation of the Nigerian Naira, is expected to affect financial results, with potential losses estimated at $10 million[3]. - The Group's assessment of foreign exchange rates includes the USD/NGN rate published by Bloomberg for transactions in Nigerian subsidiaries[67]. - The company monitors foreign exchange rates for translating financial results, which can impact reported revenue due to fluctuations in local currencies[191].