Core Insights - IHS Brazil, part of IHS Towers, has signed a New Site agreement with TIM S.A. to enhance their partnership in Brazil [1] - The agreement aims to establish up to 3,000 sites, with an initial commitment to deploy a minimum of 500 sites [1] Company Overview - IHS Towers is recognized as one of the largest independent owners, operators, and developers of shared communications infrastructure globally, based on tower count [1] - The partnership with TIM S.A. signifies a strategic move to expand IHS Towers' footprint in the Brazilian telecommunications market [1]

Financial Performance - Service Revenue increased by 5.4% YoY in 6M25[9] - EBITDA grew by 6.5% YoY in 6M25, reaching a 49.5% margin, a 0.8 percentage point increase YoY[9] - Operating Cash Flow (OpCF) reached R$ 2.7 Billion, showing double-digit expansion[9] - Net Income expansion 14.3%[43] Mobile Business - Mobile Service Revenue grew by 5.9% YoY in 6M25[10] - Postpaid Net Adds (Ex-M2M) increased by 726k in 6M25[15] - Postpaid ARPU reached R$ 32.7/Mo in 2025, the highest in the industry[10] - Postpaid revenues have experienced rapid annual growth for 14 consecutive quarters[13] Infrastructure and Technology - Capex on Revenues was 17.1%, a decrease of 1.3 percentage points YoY[9] - 30% of traffic is now on 5G network[9] - 5G cost per GB is 30% of 4G[34] Sustainability - The company is recognized as the most sustainable Brazilian company in the B3 Sustainability Index (ISE)[9, 45] - 100% of the energy consumed comes from renewable sources[44]

Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions due to geopolitical conflicts [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Future Trends - Network convergence is driving significant investments from telecom and cloud service providers to meet the growing demand for coverage, speed, and quality in mobile broadband and home internet solutions [4] - Continuous network upgrades and optimization are essential to maintain performance standards, as telecom services are considered necessities with weak correlation to macroeconomic factors [4] Challenges - The industry is currently facing high production costs due to a shortage of chips and increased raw material prices influenced by geopolitical conflicts, which have negatively impacted profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Growth Strategies - Companies in the industry are focusing on subscriber growth, churn management, and enhancing customer loyalty through unlimited plans and improved network connectivity [6] - Strategic acquisitions and geographical expansion are key strategies for increasing market presence and revenue [6] Industry Performance - The Zacks Wireless Non-US industry has a Zacks Industry Rank of 44, placing it in the top 18% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - However, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a gain of only 3.3% [9] Valuation Metrics - The industry has a trailing 12-month Price/Book (P/B) ratio of 1.06X, significantly lower than the S&P 500's 7.82X and the sector's 9.09X [12] Notable Companies - TIM S.A. is a leading communication service provider in Brazil, focusing on aggressive 5G rollout and aiming for a long-term earnings growth expectation of 16.1% [15] - Ceragon Networks Ltd. specializes in wireless backhaul and fronthaul solutions, providing efficient network rollout and optimization services [16] - PLDT Inc. is the leading telecommunications provider in the Philippines, expanding its fiber network and aiming for a long-term earnings growth expectation of 7.5% [19]