Financial Data and Key Metrics Changes - The company reported a strong performance in 2024, with revenue showing 48% organic growth and adjusted EBITDA reaching 304 million, exceeding guidance, driven by operational performance and ongoing CapEx optimization [12][19] - The consolidated net leverage ratio decreased to 3.7 times at the end of 2024, down from 3.9 times at the end of Q3 2024 [13][32] Business Line Data and Key Metrics Changes - Revenue from Nigeria grew approximately 62% on an organic basis, significantly benefiting from FX resets and power indexation, despite a reported revenue decline of 19% year-on-year due to FX headwinds [42][30] - The Sub-Saharan Africa segment saw revenue remain broadly flat, while adjusted EBITDA increased by 29.6% year-on-year, driven by lower costs [44] - In the LatAm segment, towers and tenants grew by 7.9% and 7.2% respectively, but revenue decreased by 18% due to negative FX movements [45] Market Data and Key Metrics Changes - The Nigerian market showed signs of stabilization, with the naira strengthening and the Central Bank of Nigeria increasing interest rates, which positively impacted the FX market [40][41] - The company benefited from a 50% increase in tariffs for mobile network carriers in Nigeria, the first adjustment in 12 years, which is expected to support infrastructure investment [18] Company Strategy and Development Direction - The company is focused on increasing profitability and reducing CapEx to enhance cash flow generation, with a target of raising 1 billion through asset disposals [15][25] - Significant commercial progress was made, with 72% of group revenue renewed or extended, improving financial visibility [16][17] - The company plans to utilize excess cash flow primarily for debt reduction, with potential considerations for share buybacks or dividends in the future [25][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Nigerian market, citing improved macroeconomic conditions and bullish carrier CapEx plans [73][92] - The company anticipates continued organic revenue growth and further improvements in adjusted EBITDA margin and ALFCF generation in 2025 [20][59] - Management highlighted the importance of maintaining a strong balance sheet and expects leverage to remain within the target range of 3 to 4 times in 2025 [59][60] Other Important Information - The company completed the disposal of its 70% stake in IHS Kuwait for an enterprise value of 230 million, which is part of its strategic review to optimize the portfolio [23][24] - The company has made significant enhancements to its governance framework, aligning it more closely with mature US-listed companies [22] Q&A Session Summary Question: Update on Airtel new tenancies in Nigeria - The Airtel contract is progressing well, with significant work completed in the second half of 2024, primarily focused on colocation and 5G lease amendments [67][72] Question: Potential for stock buybacks and dividends - The company is evaluating options for capital allocation, with a focus on asset disposals first, followed by potential share buybacks or dividends [68][70] Question: Progress on portfolio optimization - The company is targeting 500 million to $1 billion in asset disposals, with the Kuwait disposal being a significant step [81][82] Question: Other markets with positive macro indicators - Positive momentum is observed in Francophone Africa and Brazil, with carriers looking to increase CapEx for 5G rollouts [87][90] Question: Constant currency performance metrics by region - The company has not provided forward-looking guidance for constant currency metrics but aims to simplify disclosures for future periods [96][98] Question: CapEx breakdown - Approximately one-third of the anticipated CapEx for 2025 is maintenance-related, with the remainder focused on growth initiatives [101][102] Question: Possible churn in the business - No significant churn is anticipated, with positive leasing trends across major markets [105][106]
IHS (IHS) - 2024 Q4 - Earnings Call Transcript