The following is a summary of the IHS Holding Limited (IHS) Q3 2024 Earnings Call Transcript:

Financial Performance:

• IHS reported robust revenue performance despite significant ForEx headwinds, particularly from the Naira devaluation, amounting to a $265 million headwind year-on-year.

• Adjusted EBITDA increased by 3% year-over-year to $246 million, with a margin of 58.5%, demonstrating continued financial discipline and resilience of the financial model.

• ALFCF for Q3 2024 grew slightly due to strong EBITDA performance and strategic CapEx optimization.

• Revised the full-year 2024 CapEx guidance downwards, reflecting ongoing efforts towards capital discipline and improved cash generation.

Business Progress:

• IHS has extended all their tower contracts with MTN in Nigeria through 2032, significantly improving financial stability with projected contracted revenues of $12.3 billion, increasing the average tenant term to 8.1 years.

• Continuing strategic asset reviews and cost optimization initiatives across the group, including new operational techniques like the integration of AI.

• Initiatives underway to potentially raise $500 million to $1 billion mainly to reduce debt and potentially supporting share buybacks or introducing a dividend policy.

Opportunities:

• Highlighted arrangements like the MTN Nigeria deal that enhance locked-in revenue streams and financial predictability over longer terms.

• Focus on strategic asset reviews with the aim of unlocking shareholder value against suppressed valuations, including potential disposals aimed at enhancing financial health and optimizing the portfolio.

Risks:

• Reported risks involve the ongoing economic vulnerabilities in their operating regions, particularly the significant ForEx volatility with the Naira in Nigeria affecting financial outcomes.

• Leveraging challenges, with net leverage ratio standing at the higher end of the 3 to 4 times target range, reflecting underlying economic pressures and necessitating careful financial maneuvering.

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