CONSOLIDATED HIGHLIGHTS – SECOND QUARTER 2023
- Revenue of $546.2 million increased 16.8% (or 29.7%
organically)
- Adjusted EBITDA of $303.7 million (55.6% Adjusted EBITDA
Margin) increased 27.0%
- Loss for the period was $1,248.3 million
- Cash from operations was $264.1 million
- Recurring Levered Free Cash Flow (“RLFCF”) was $91.1
million
- Total Capex was $207.0 million
- Revising 2023 guidance for revenue to $2,080-2,110 million,
Adjusted EBITDA to $1,130-1,150 million, and RLFCF to $385-405
million. The $110 million revision in revenue guidance includes a
$141 million foreign exchange (“FX”) headwind of which $142 million
is from the Nigerian Naira (“NGN”) net of FX resets, implying an
increase of $31 million had the average FX rates previously assumed
in our guidance remained unchanged. Total capital expenditure
(“Capex”) guidance of $610-650 million and our net leverage ratio
target of 3.0x-4.0x are unchanged.
- The Company’s board of directors has authorized a stock
repurchase program for up to $50 million of the Company’s ordinary
shares effective as of August 15, 2023 through August 15, 2025
Sam Darwish, IHS Towers Chairman and Chief Executive Officer,
stated, “We remain well positioned to take advantage of the strong
secular growth trends across our markets, which we expect to
continue for years to come. And we are encouraged by the recent
policy changes implemented in Nigeria that are intended to put the
country on a better economic path. In the near-term, however, these
changes will cause some anticipated friction including the
significant devaluation of the Nigerian Naira that occurred in
mid-June. Subsequently, we are revising our 2023 guidance for
revenue, Adjusted EBITDA and RLFCF while maintaining our capex
guidance and our target leverage ratio. Our expectation for revenue
would have otherwise increased by $31 million had the average FX
rates previously assumed in our guidance remained unchanged,
reflecting the strength we continue to see in our fundamental
business.
For the quarter, the change in FX rates had a $21 million
negative impact vs. rates previously assumed in guidance, including
a $25 million negative impact from the Nigerian Naira devaluation.
Excluding the FX impact, results were ahead of our expectations,
driven largely by our Nigeria segment including a pull forward in
revenue a quarter earlier than we had anticipated. We will see the
full impact of the Nigerian Naira devaluation in our third quarter
results, and the impact of our FX resets over third quarter and
fourth quarter of 2023, of which 93% of resets are quarterly and 4%
monthly.”
RESULTS FOR THE SECOND QUARTER 2023
The table below sets forth select unaudited financial results
for the quarters ended June 30, 2023 and June 30, 2022:
Three months ended
June 30,
June 30,
Y on Y
2023
2022
Growth
$’000
$’000
%
Revenue
546,204
467,683
16.8
Adjusted EBITDA(1)
303,710
239,176
*
27.0
Loss for the period
(1,248,283
)
(178,574
)
*
(599.0
)
Cash from operations
264,132
216,800
21.8
RLFCF(1)
91,080
87,537
4.0
(1)
Adjusted EBITDA and RLFCF are non-IFRS
financial measures. See “Use of Non-IFRS Financial Measures” for
additional information, definitions and a reconciliation to the
most comparable IFRS measures.
*
Re-presented to reflect the remeasurement
period adjustments, as required by IFRS 3, in respect of updates to
the accounting for the GTS SP5 Acquisition in March 2022 and MTN SA
Acquisition in May 2022.
Impact of Nigerian Naira devaluation in mid-June 2023
In mid-June 2023, the Central Bank of Nigeria implemented steps
to unify the Nigerian foreign exchange market by replacing the old
regime of multiple exchange rate segments into a single Import and
Export (“I&E”) window within which foreign exchange
transactions would be determined by market forces. The Group uses
the USD/NGN rate published by Bloomberg, which is approximately
aligned to the I&E window rate, for Group reporting
purposes.
The NGN fell 59.4% between the period immediately prior to the
announcement and the month end rate as at June 30, 2023 and
continues to experience some volatility. Due to the NGN
devaluation, Revenue and Segment Adjusted EBITDA were negatively
impacted by $31.5 million and $21.4 million, respectively, within
June 2023 when compared to the constant currency amounts had the
NGN rate not devalued.
Due to the timing of the devaluation, the average USD/NGN rate
used to consolidate the Group results was NGN508.04 for the second
quarter of 2023 and NGN 599.34 for June 2023 as opposed to the
closing rate of NGN 752.67. If the devaluation occurred at the
beginning of the quarter, the impact on reported Revenue and
Segment Adjusted EBITDA would have been more significant.
The devaluation of the NGN also resulted in a significant impact
on finance costs, specifically related to unrealized foreign
exchange losses, for the second quarter of 2023 of $1,154.5 million
in our Nigeria segment. This is due to the USD denominated historic
shareholder loans from Group entities to Nigeria and the USD
denominated third party debt (such as the 2026, 2027 and 2028
Notes). As the functional currency of the Nigeria businesses is
NGN, these USD balances have been revalued in NGN resulting in the
significant unrealized loss on foreign exchange.
Finally, the Adjusted EBITDA used to calculate the leverage
ratio for the second quarter is based on the last 12 months and,
therefore, does not fully incorporate the impact from the
devaluation.
Results for the three months ended June 30, 2023 versus
2022
During the second quarter of 2023, revenue was $546.2 million
compared to $467.7 million for the second quarter of 2022, an
increase of $78.5 million, or 16.8%. Organic growth was $139.0
million, or 29.7% driven primarily by escalations, power
indexation, foreign exchange resets and Lease Amendments. Aggregate
inorganic revenue growth was $18.4 million, or 3.9%, for the second
quarter of 2023, driven by the MTN SA Acquisition and the fifth
stage of the Kuwait Acquisition. The increase was partially offset
by the non‑core impact of negative movements in foreign exchange
rates of $78.9 million, or 16.9% of which $74.5 million was
primarily due to the devaluation of the NGN.
Adjusted EBITDA was $303.7 million for the second quarter of
2023 compared to $239.2 million for the second quarter of 2022.
Adjusted EBITDA margin for the second quarter of 2023 was 55.6%
(second quarter of 2022: 51.1%). The increase in Adjusted EBITDA
primarily reflects the increase in revenue discussed above,
partially offset by an increase in cost of sales resulting from an
increase in maintenance and repair costs alongside an increase in
administrative expenses within Adjusted EBITDA, resulting from
higher employee costs related to the acquisitions listed above and
increases in computer and maintenance cost.
Loss for the period was $1,248.3 million for the second quarter
of 2023 compared to a loss of $178.6 million for the second quarter
of 2022. The increase in loss for the period reflects the
significant impact of an increase in net finance costs,
specifically related to the unrealized foreign exchange losses on
financing the Group’s operations. This is driven by the significant
devaluation of the NGN as a result of the USD denominated historic
shareholder loans from Group entities to Nigeria and the USD
denominated third party debt (such as the 2026, 2027 and 2028
Notes). As the functional currency of the Nigeria businesses is
NGN, these USD balances have been revalued in NGN resulting in the
significant unrealized loss on foreign exchange.
Cash from operations and RLFCF for the second quarter of 2023
were $264.1 million and $91.1 million, respectively, compared to
$216.8 million and $87.5 million, respectively, for the second
quarter of 2022. The increase in cash from operations primarily
reflects the aggregate impact of the increase in revenue and
decrease in administrative expenses discussed above, partially
offset by an increase in cost of sales also discussed above. The
increase in RLFCF is due to the increase in cash from operations,
decrease in income taxes paid and decrease in business combination
costs, partially offset by the increase in net interest paid, lease
and rent payment made, maintenance capital expenditure and
withholding tax.
Segment results
Revenue and Segment Adjusted
EBITDA:
Revenue and Segment Adjusted EBITDA, our key profitability
measures used to assess the performance of our reportable segments,
were as follows:
Revenue
Segment Adjusted
EBITDA
Three months ended
Three months ended
June 30,
June 30,
June 30,
June 30,
2023
2022
Change
2023
2022
Change
$'000
$'000
%
$'000
$'000
%
Nigeria
364,592
321,125
13.5
238,448
183,698
29.8
SSA
123,393
94,902
30.0
62,933
52,990
*
18.8
Latam
48,344
42,780
13.0
35,330
30,904
14.3
MENA
9,875
8,876
11.3
5,384
4,170
29.1
Other
—
—
—
(38,385
)
(32,586
)
(17.8
)
Total
546,204
467,683
16.8
303,710
239,176
*
27.0
* Re-presented to reflect the remeasurement period adjustments,
as required by IFRS 3, in respect of updates to the accounting for
the MTN SA Acquisition in May 2022.
Nigeria
Revenue for our Nigeria segment increased by $43.5 million, or
13.5%, to $364.6 million for the second quarter of 2023, compared
to $321.1 million for the second quarter of 2022. Revenue increased
organically by $117.9 million, or 36.7%, driven primarily by an
increase in escalations and power indexation as well as foreign
exchange resets and Lease Amendments. The increase in revenue was
partially offset by the non-core impact of negative movements in
the Naira to U.S. dollar foreign exchange rate of $74.5 million, or
23.2%. Year-on-year, within our Nigeria segment, Tenants increased
by 113, including 584 from New Sites and 560 from Colocation,
partially offset by 1,031 Churned (which includes, from the first
quarter of 2023, 727 towers occupied by our smallest Key Customer
on which we were not recognizing revenue), while Lease Amendments
increased by 2,911.
Segment Adjusted EBITDA for our Nigeria segment was $238.4
million for the second quarter of 2023 compared to $183.7 million
for the second quarter of 2022, an increase of $54.8 million, or
29.8%. The increase in Segment Adjusted EBITDA primarily reflects
the increase in revenue discussed above and decrease in cost of
sale of $13.3 million resulting from lower overall consumption and
lower pricing of diesel, and increase in electricity cost of $1.6
million as a result of Project Green, partially offset by an
increase in administrative expenses of $2.2 million, of which $3.1
million is due to an increase in computer maintenance and software,
offset by a decrease in professional fees of $1.0 million.
SSA
Revenue for our SSA segment increased by $28.5 million, or
30.0%, to $123.4 million for the second quarter of 2023, compared
to $94.9 million for the second quarter of 2022. Revenue increased
organically by $14.4 million, or 15.2%, driven primarily by
escalations, New Sites and Colocation and foreign exchange resets.
Revenue for our SSA segment also grew inorganically in the period
by $18.1 million, or 19.1%, due to the impact of the MTN SA
Acquisition. The increase in revenue was partially offset by the
non-core impact of negative movements in foreign exchange rates of
$4.1 million, or 4.3%. Year-on-year, within our SSA segment,
Tenants increased by 543, including 233 from New Sites and, 467
from Colocation, partially offset by 157 Churned, while Lease
Amendments increased by 584.
Segment Adjusted EBITDA for our SSA segment was $62.9 million
for the second quarter of 2023 compared to $53.0 million for the
second quarter of 2022, an increase of $9.9 million, or 18.8%. The
increase in Segment Adjusted EBITDA primarily reflects the increase
in revenue discussed above, partially offset by an increase in cost
of sales resulting from higher power generation, maintenance and
security costs of $7.3 million, $5.3 million and $2.7 million,
respectively, due to the increase in asset base and an increase in
administrative expenses of $1.2 million, of which $1.4 million are
staff costs.
Latam
Revenue for our Latam segment increased by $5.6 million, or
13.0%, to $48.3 million for the second quarter of 2023, compared to
$42.8 million for the second quarter of 2022. Revenue increased
organically by $5.9 million, or 13.8%, driven primarily by an
increase in growth from fiber and escalations. The increase in
revenue was partially offset by the non-core impact of negative
movements in foreign exchange rates of $0.3 million, or 0.8%.
Year-on-year, within our Latam segment, Tenants increased by 311,
including 341 from New Sites and 126 from Colocation, partially
offset by 156 Churned, while Lease Amendments increased by 69.
Segment Adjusted EBITDA for our Latam segment was $35.3 million
for the second quarter of 2023 compared to $30.9 million for the
second quarter of 2022, an increase of $4.4 million, or 14.3%. The
increase in Segment Adjusted EBITDA primarily reflects the increase
in revenue discussed above and decrease in cost of sales of $1.2
million, of which $4.4 million was land rent cost, partially offset
by increase in maintenance costs of $1.2 million, other costs of
$1.1 million and electricity costs of $0.8 million, partially
offset by an increase in administrative expenses of $2.3 million,
of which $2.0 million is staff costs.
MENA
Revenue for our MENA segment increased by $1.0 million, or
11.3%, to $9.9 million for the second quarter of 2023, compared to
$8.9 million for the second quarter of 2022. Revenue increased
organically by $0.7 million, or 8.4% driven primarily by New Sites
and escalations, and grew inorganically in the period by $0.3
million, or 2.9%. Year-on-year, within our MENA segment, Tenants
increased by 99, including 59 from New Sites, and 43 from the
closing of the fifth stage of the Kuwait Acquisition.
Segment Adjusted EBITDA for our MENA segment was $5.4 million
for the second quarter of 2023 compared to $4.2 million for the
second quarter of 2022, an increase of $1.2 million, or 29.1%. The
increase in Segment Adjusted EBITDA primarily reflects the increase
in revenue discussed above and decrease in administrative expenses
of $0.4 million, of which $0.3 million is professional fees,
partially offset by an increase in cost of sales of $0.2
million.
INVESTING ACTIVITIES
During the second quarter of 2023, capital expenditure (“Total
Capex”) was $207.0 million compared to $146.8 million for the
second quarter of 2022. The increase is primarily driven by
increases in capital expenditure for our Nigeria and Latam segments
of $52.0 million and $16.0 million, respectively, partially offset
by a decrease in capital expenditure of $8.3 million from our SSA
segment. The increase in Nigeria was primarily driven by increases
of $29.7 million related to Project Green, $23.2 million related to
maintenance capital expenditure and $13.5 million from fiber
business capital expenditure, partially offset by a decrease of
$17.1 million in New Site capital expenditure. The increase in
Latam is primarily driven by increases of $9.1 million related to
New Site capital expenditure, $4.0 million from fiber business
capital expenditure and $2.4 million in corporate capital
expenditure. The decrease in SSA is primarily driven by a decrease
of $6.5 million related to corporate capital expenditure, $2.1
million related to refurbishment capital expenditure and $1.8
million related to other capital expenditure, partially offset by
an increase of $1.3 million related to New Site capital
expenditure. Our spending for Project Green was $41.4 million
during the second quarter of 2023 and total spend to June 30, 2023
was $178.8 million.
FINANCING ACTIVITIES AND LIQUIDITY
Below is a summary of key facilities we have entered into,
repaid or amended during the second quarter of 2023. Approximate
U.S. dollar equivalent values for non-USD denominated facilities
stated below are translated from the currency of the debt at the
relevant exchange rates on June 30, 2023.
Nigeria (2023) Term Loan
Further increase in the total commitments in May 2023, by NGN
11.5 billion (approximately $15.3 million) pursuant to the facility
increase clause contained within the loan agreement up to its total
NGN 165.0 billion capacity (approximately $219.2 million).
Further drawdowns took place in April 2023 and June 2023 for NGN
15.0 billion (approximately $19.9 million) and NGN 11.5 billion
(approximately $15.3 million) respectively.
Nigeria (2023) Revolving Credit Facility
In June 2023, NGN 20.0 billion (approximately $26.6 million),
was drawn under the Nigeria 2023 RCF.
FINANCING ACTIVITIES AND LIQUIDITY AFTER REPORTING PERIOD
Below is a summary of key facilities we have entered into,
repaid or amended after the second quarter of 2023.
IHS Holding (2020) Revolving Credit Facility
In July 2023, the available commitments were increased to $300.0
million pursuant to the facility increase clause contained within
the loan agreement.
Nigeria (2023) Revolving Credit Facility
In August 2023, NGN 20.0 billion (approximately $26.6 million)
was voluntarily prepaid under the Nigeria 2023 RCF.
IHS South Africa Short-Term Facility
IHS Towers South Africa Proprietary Limited (“IHS SA”) entered
into a ZAR 350.0 million (approximately $18.7 million) facility
agreement in July 2023 (the “IHS SA STL Facility”). The IHS SA STL
Facility is governed by South African law and funds borrowed under
the facility will be applied towards general corporate purposes.
The IHS SA STL Facility has an interest rate of 1.00% plus 2 Month
JIBAR. The IHS SA STL Facility will terminate in September
2023.
In August 2023, ZAR 100.0 million (approximately $5.3 million),
was drawn down under the IHS SA STL Facility.
SHARE BUYBACK PROGRAM
In August 2023, the Company’s board of directors (the “Board”)
authorized a stock repurchase program for up to $50 million of the
Company’s ordinary shares, effective as of August 15, 2023 through
August 15, 2025, subject to market conditions, contractual
restrictions, regulatory requirements and other factors.
Repurchases under the program may be made in the open market
from time to time, in privately negotiated transactions, through
accelerated repurchase agreements or otherwise, with the amount and
timing of repurchases depending on and subject to market
conditions, alternative uses of capital, corporate needs,
applicable regulatory requirements and other factors, at
management’s discretion. Open market repurchases will be structured
to occur within the pricing and volume requirements of Rule 10b-18.
The Company may also, from time to time, enter into Rule 10b5-1
plans to facilitate repurchases of its shares under this
authorization.
This stock repurchase program does not obligate the Company to
repurchase any set dollar amount or number of ordinary shares and
may be extended, modified, suspended or terminated at any time
without prior notice at the Company’s discretion.
Full Year 2023 Outlook Guidance
The following full year 2023 guidance is based on a number of
assumptions that management believes to be reasonable and reflects
the Company’s expectations as of August 15, 2023. Actual results
may differ materially from these estimates as a result of various
factors, and the Company refers you to the cautionary language
regarding “forward-looking” statements included in this press
release when considering this information. The Company’s outlook
reflects 1) $110 million reduction in guidance includes a $141
million foreign exchange headwind of which $142 million is from the
Nigerian Naira net of foreign exchange resets, implying an increase
of approximately $31 million had the average FX rates previously
assumed in our guidance remained unchanged, 2) $48.1 million of
non-recurring revenue as adjusted for withholding tax in first
quarter of 2023 from our smallest Key Customer in Nigeria for
services previously provided but for which revenue had not been
recognized, and 3) approximately $25.0 million of power pass
through revenue in South Africa. Guidance does not include revenue
from the Egypt operations.
The Company’s outlook is based on the following assumptions:
- Organic revenue Y/Y growth of approximately 32% (29% when
excluding the $48.1 million non-recurring cash receipt)
- Average foreign currency exchange rates to 1.00 U.S. Dollar for
January 1, 2023 through December 31, 2023 for key currencies: (a)
624.0 Nigerian Naira; (b) 5.09 Brazilian Real (c) 0.91 Euros (d)
18.60 South African Rand
- Project Green capex $90.0-100.0 million
- Build-to-suit of circa 1,200 sites of which ~150 sites in
Nigeria and ~750 sites in Brazil (triple what we built in Brazil in
2022)
- Net leverage ratio target of 3.0x-4.0x
Metric
Current Range
Revenue
$2,080M - $2,110M
Adjusted EBITDA (1)
$1,130M - $1,150M
Recurring Levered Free Cash Flow (1)
$385M - $405M
Total Capex
$610M - $650M
(1) Adjusted EBITDA and RLFCF are non-IFRS
financial measures. See “Use of Non-IFRS Financial Measures” for
additional information and a reconciliation to the most comparable
IFRS measures. We are unable to provide a reconciliation of
Adjusted EBITDA and RLFCF to (loss)/profit and cash from
operations, respectively, for the periods presented above without
an unreasonable effort, due to the uncertainty regarding, and the
potential variability, of these costs and expenses that may be
incurred in the future, including, in the case of Adjusted EBITDA,
share-based payment expense, finance costs, and insurance claims,
and in the case of RLFCF net movement in working capital, other
non-operating expenses, and impairment of inventory, each of which
adjustments may have a significant impact on these non-IFRS
measures.
Conference Call
IHS Towers will host a conference call on August 15, 2023 at
8:30am ET to review its financial and operating results.
Supplemental materials will be available on the Company’s website,
www.ihstowers.com. The conference call can be accessed by calling
+1 646 307 1963 (U.S./Canada) or +44 20 3481 4247
(UK/International). The call passcode is 9214668.
A simultaneous webcast and replay will be available in the
Investor Relations section of the Company’s website,
www.ihstowers.com, on the Earnings Materials page.
Upcoming Conferences and Events
IHS Towers management is expected to participate in the upcoming
conferences outlined below:
- Goldman Sachs EMEA Credit & Leverage Finance Conference
(London) – September 5, 2023
- Goldman Sachs Communacopia Conference (San Francisco) –
September 6, 2023
- J.P. Morgan Emerging Markets Credit Conference (London) –
September 19 2023
- Goldman Sachs Global Sustainability Forum (New York City) –
September 27, 2023
- RBC Global Comms and Infra Conference (Chicago) – September 28,
2023
About IHS Towers
IHS Towers is one of the largest independent owners, operators
and developers of shared communications infrastructure in the world
by tower count and is one of the largest independent multinational
towerco solely focused on emerging markets. The Company has nearly
40,000 towers across its 11 markets, including Brazil, Cameroon,
Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Peru, Rwanda,
South Africa and Zambia. For more information, please email:
communications@ihstowers.com or visit:
www.ihstowers.com
Cautionary statement regarding forward-looking
Information
This press release 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 Act”). All statements other
than statements of historical facts contained in this press release
may be forward-looking statements. In some cases, you can identify
forward-looking statements by terms such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“targets,” “projects,” “contemplates," “believes,” “estimates,”
“forecast,” “predicts,” “potential” or “continue” or the negative
of these terms or other similar expressions. Forward-looking
statements contained in this press release include, but are not
limited to statements regarding our future results of operations
and financial position, including our anticipated results for the
fiscal year 2023, industry and business trends, business strategy,
plans, market growth, our objectives for future operations and our
participation in upcoming presentations and events.
We have based these forward-looking statements largely on our
current expectations and projections about future events and
financial trends that we believe may affect our business, financial
condition and results of operations. Forward-looking statements
involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to:
- non-performance under or termination, non-renewal or material
modification of our customer agreements;
- volatility in terms of timing for settlement of invoices or our
inability to collect amounts due under invoices;
- a reduction in the creditworthiness and financial strength of
our customers;
- the business, legal and political risks in the countries in
which we operate;
- general macroeconomic conditions in the countries in which we
operate;
- changes to existing or new tax laws, rates or fees;
- foreign exchange risks and/or ability to access U.S. Dollars in
our markets;
- regional or global health pandemics and geopolitical conflicts
and wars, including the current conflict between Russia and
Ukraine;
- our inability to successfully execute our business strategy and
operating plans, including our ability to increase the number of
Colocations and Lease Amendments on our Towers and construct New
Sites or develop business related to adjacent telecommunications
verticals (including, for example, relating to our fiber businesses
in Latin America and elsewhere) or deliver on our sustainability or
environmental, social and governance (ESG) strategy and initiatives
under anticipated costs, timelines, and complexity, such as our
Carbon Reduction Roadmap (Project Green), including plans to reduce
diesel consumption, integrate solar panel and battery storage
solutions on tower sites and connect more sites to the electricity
grid;
- reliance on third-party contractors or suppliers, including
failure, underperformance or inability to provide products or
services to us (in a timely manner or at all) due to sanctions
regulations, supply chain issues or for other reasons;
- our estimates and assumptions and estimated operating results
may differ materially from actual results;
- increases in operating expenses, including increased costs for
diesel;
- failure to renew or extend our ground leases, or protect our
rights to access and operate our Towers or other telecommunications
infrastructure assets;
- loss of customers;
- risks related to our indebtedness;
- changes to the network deployment plans of mobile operators in
the countries in which we operate;
- a reduction in demand for our services;
- the introduction of new technology reducing the need for tower
infrastructure and/or adjacent telecommunication verticals;
- an increase in competition in the telecommunications tower
infrastructure industry and/or adjacent telecommunication
verticals;
- our failure to integrate recent or future acquisitions;
- the identification by management of material weaknesses in our
internal control over financial reporting, which could affect our
ability to produce accurate financial statements on a timely basis
or cause us to fail to meet our future reporting obligations;
- increased costs, harm to reputation, or other adverse impacts
related to increased intention to and evolving expectations for
environmental, social and governance initiatives;
- reliance on our senior management team and/or key
employees;
- failure to obtain required approvals and licenses for some of
our sites or businesses or comply with applicable regulations;
- inability to raise financing to fund future growth
opportunities or operating expense reduction strategies;
- environmental liability;
- inadequate insurance coverage, property loss and unforeseen
business interruption;
- compliance with or violations (or alleged violations) of laws,
regulations and sanctions, including but not limited to those
relating to telecommunications regulatory systems, tax, labor,
employment (including new minimum wage regulations), unions, health
and safety, antitrust and competition, environmental protection,
consumer protection, data privacy and protection, import/export,
foreign exchange or currency, and of anti-bribery, anti-corruption
and/or money laundering laws, sanctions and regulations;
- fluctuations in global prices for diesel or other
materials;
- disruptions in our supply of diesel or other materials;
- legal and arbitration proceedings;
- reliance on shareholder support (including to invest in growth
opportunities) and related party transaction risks;
- risks related to the markets in which we operate, including but
not limited to local community opposition to some of our sites or
infrastructure, and the risks from our investments into emerging
and other less developed markets;
- injury, illness or death of employees, contractors or third
parties arising from health and safety incidents;
- loss or damage of assets due to security issues or civil
commotion;
- loss or damage resulting from attacks on any information
technology system or software;
- loss or damage of assets due to extreme weather events whether
or not due to climate change;
- failure to meet the requirements of accurate and timely
financial reporting and/or meet the standards of internal control
over financial reporting that support a clean certification under
the Sarbanes Oxley Act;
- risks related to our status as a foreign private issuer;
and
- the important factors discussed in the section titled “Risk
Factors” in our Annual Report on Form 20-F for the fiscal year
ended December 31, 2022.
The forward-looking statements in this press release are based
upon information available to us as of the date of this press
release, and while we believe such information forms a reasonable
basis for such statements, such information may be limited or
incomplete, and our statements should not be read to indicate that
we have conducted an exhaustive inquiry into, or review of, all
potentially available relevant information. These statements are
inherently uncertain and investors are cautioned not to unduly rely
upon these statements. You should read this press release and the
documents that we reference in this press release with the
understanding that our actual future results, performance and
achievements may be materially different from what we expect. We
qualify all of our forward-looking statements by these cautionary
statements. Additionally, we may provide information herein that is
not necessarily “material” under the federal securities laws for
SEC reporting purposes, but that is informed by various ESG
standards and frameworks (including standards for the measurement
of underlying data), and the interests of various stakeholders.
Much of this information is subject to assumptions, estimates or
third-party information that is still evolving and subject to
change. For example, our disclosures based on any standards may
change due to revisions in framework requirements, availability of
information, changes in our business or applicable government
policies, or other factors, some of which may be beyond our
control. These forward-looking statements speak only as of the date
of this press release. Except as required by applicable law, we do
not assume, and expressly disclaim, any obligation to publicly
update or revise any forward-looking statements contained in this
press release, whether as a result of any new information, future
events or otherwise.
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF
LOSS AND OTHER COMPREHENSIVE INCOME/(LOSS) (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2023 AND 2022
Three months period
Six months period
ended
ended
June 30,
June 30,
June 30,
June 30,
2023
2022*
2023
2022*
$’000
$’000
$’000
$’000
Revenue
546,204
467,683
1,148,732
913,815
Cost of sales
(278,093
)
(270,611
)
(584,781
)
(521,200
)
Administrative expenses
(100,721
)
(102,852
)
(198,003
)
(193,414
)
(Net loss allowance)/net reversal of loss
allowance on trade receivables
(954
)
(668
)
(4,514
)
1,800
Other income
161
2,967
336
4,137
Operating profit
166,597
96,519
361,770
205,138
Finance income
8,373
3,895
13,160
45,667
Finance costs
(1,366,012
)
(261,886
)
(1,542,979
)
(380,902
)
Loss before income tax
(1,191,042
)
(161,472
)
(1,168,049
)
(130,097
)
Income tax expense
(57,241
)
(17,102
)
(72,459
)
(33,358
)
Loss for the period
(1,248,283
)
(178,574
)
(1,240,508
)
(163,455
)
Loss attributable to:
Owners of the Company
(1,244,729
)
(176,757
)
(1,234,148
)
(160,239
)
Non‑controlling interests
(3,554
)
(1,817
)
(6,360
)
(3,216
)
Loss for the period
(1,248,283
)
(178,574
)
(1,240,508
)
(163,455
)
Loss per share—basic $
(3.73
)
(0.53
)
(3.71
)
(0.49
)
Loss per share—diluted $
(3.73
)
(0.53
)
(3.71
)
(0.49
)
Other comprehensive
income/(loss):
Items that may be reclassified to profit
or loss
Fair value loss through other
comprehensive income
7
—
7
—
Exchange differences on translation of
foreign operations
580,767
(123,006
)
624,959
9,653
Other comprehensive income/(loss) for
the period, net of taxes
580,774
(123,006
)
624,966
9,653
Total comprehensive loss for the
period
(667,509
)
(301,580
)
(615,542
)
(153,802
)
Total comprehensive loss attributable
to:
Owners of the Company
(674,361
)
(275,714
)
(624,790
)
(161,054
)
Non‑controlling interests
6,852
(25,866
)
9,248
7,252
Total comprehensive loss for the
period
(667,509
)
(301,580
)
(615,542
)
(153,802
)
* Re-presented to reflect the
remeasurement period adjustments, as required by IFRS 3, in respect
of updates to the accounting for the GTS SP5 Acquisition in March
2022 and the MTN SA Acquisition in May 2022.
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF
FINANCIAL POSITION (UNAUDITED)
AT JUNE 30, 2023 AND DECEMBER 31,
2022
June 30,
December 31,
2023
2022*
$’000
$’000
ASSETS
Non‑current assets
Property, plant and equipment
1,868,456
2,075,441
Right of use assets
902,589
965,019
Goodwill
664,450
763,388
Other intangible assets
973,056
1,049,103
Fair value through other comprehensive
income financial assets
11
10
Deferred income tax assets
59,250
78,369
Derivative financial instrument assets
7,232
6,121
Trade and other receivables
131,119
130,347
4,606,163
5,067,798
Current assets
Inventories
32,625
74,216
Income tax receivable
2,187
1,174
Trade and other receivables
610,319
663,467
Cash and cash equivalents
433,048
514,078
1,078,179
1,252,935
Total assets
5,684,342
6,320,733
LIABILITIES
Current liabilities
Trade and other payables
520,612
669,149
Provisions for other liabilities and
charges
295
483
Derivative financial instrument
liabilities
50,051
1,393
Income tax payable
59,443
70,008
Borrowings
437,337
438,114
Lease liabilities
88,321
87,240
1,156,059
1,266,387
Non‑current liabilities
Trade and other payables
2,320
1,459
Borrowings
3,028,771
2,906,288
Lease liabilities
504,118
518,318
Provisions for other liabilities and
charges
87,739
84,533
Deferred income tax liabilities
154,588
183,518
3,777,536
3,694,116
Total liabilities
4,933,595
4,960,503
EQUITY
Stated capital
5,401,385
5,311,953
Accumulated losses
(4,550,933
)
(3,317,652
)
Other reserves
(336,153
)
(861,271
)
Equity attributable to owners of the
Company
514,299
1,133,030
Non‑controlling interest
236,448
227,200
Total equity
750,747
1,360,230
Total liabilities and equity
5,684,342
6,320,733
* Re-presented to reflect the
remeasurement period adjustments, as required by IFRS 3, in respect
of updates to the accounting for the MTN SA Acquisition in May
2022.
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2023 AND 2022
Attributable to owners of the
Company
Non‑
Stated
Accumulated
Other
controlling
Total
capital
losses
reserves
Total
interest
equity
$’000
$’000
$’000
$’000
$’000
$’000
Balance at January 1, 2022
5,223,484
(2,860,205
)
(842,911
)
1,520,368
223,188
1,743,556
Options converted to shares
86,470
—
(86,470
)
—
—
—
Share‑based payment expense
—
—
6,064
6,064
—
6,064
Other reclassifications related to
share-based payment
—
1,560
(2,835
)
(1,275
)
—
(1,275
)
Total transactions with owners of the
company
86,470
1,560
(83,241
)
4,789
—
4,789
Loss for the period*
—
(160,239
)
—
(160,239
)
(3,216
)
(163,455
)
Other comprehensive (loss)/income*
—
—
(815
)
(815
)
10,468
9,653
Total comprehensive
(loss)/income*
—
(160,239
)
(815
)
(161,054
)
7,252
(153,802
)
Balance at June 30, 2022*
5,309,954
(3,018,884
)
(926,967
)
1,364,103
230,440
1,594,543
Balance at January 1, 2023
5,311,953
(3,317,652
)
(861,271
)
1,133,030
227,200
1,360,230
Share‑based payment expense
—
—
6,618
6,618
—
6,618
Options converted to shares
89,432
—
(89,432
)
—
—
—
Other reclassifications related to
share-based payment
—
867
(1,426
)
(559
)
—
(559
)
Total transactions with owners of the
company
89,432
867
(84,240
)
6,059
—
6,059
Loss for the period
—
(1,234,148
)
—
(1,234,148
)
(6,360
)
(1,240,508
)
Other comprehensive income
—
—
609,358
609,358
15,608
624,966
Total comprehensive
(loss)/profit
—
(1,234,148
)
609,358
(624,790
)
9,248
(615,542
)
Balance at June 30, 2023
5,401,385
(4,550,933
)
(336,153
)
514,299
236,448
750,747
* Re-presented to reflect the
remeasurement period adjustments, as required by IFRS 3, in respect
of updates to the accounting for the GTS SP5 Acquisition in March
2022 and the MTN SA Acquisition in May 2022
IHS HOLDING LIMITED
CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE
30, 2023 AND 2022
Three months ended
Six months ended
June 30,
June 30,
June 30,
June 30,
2023
2022
2023
2022
$’000
$’000
$’000
$’000
Cash flows from operating
activities
Cash from operations
264,132
216,800
516,154
383,407
Income taxes paid
(19,514
)
(23,903
)
(33,957
)
(40,002
)
Payment for rent
(658
)
(1,587
)
(2,943
)
(4,130
)
(Payment)/refund for tower and tower
equipment decommissioning
(317
)
4
(321
)
142
Net cash generated from operating
activities
243,643
191,314
478,933
339,417
Cash flow from investing
activities
Purchase of property, plant and
equipment
(163,185
)
(96,980
)
(268,602
)
(162,856
)
Payment in advance for property, plant and
equipment
(34,346
)
(37,074
)
(70,148
)
(87,913
)
Purchase of software and licenses
(8,924
)
(12,716
)
(16,176
)
(13,004
)
Consideration paid on business
combinations, net of cash acquired
—
(409,545
)
—
(726,924
)
Proceeds from disposal of property, plant
and equipment
399
761
960
854
Insurance claims received
134
464
278
1,614
Interest income received
5,079
3,888
11,577
7,016
Deposit of short term deposits
(65,055
)
(166,465
)
(128,765
)
(288,065
)
Refund of short term deposits
3,994
100,121
20,723
151,582
Net cash used in investing
activities
(261,904
)
(617,546
)
(450,153
)
(1,117,696
)
Cash flows from financing
activities
Transactions with non-controlling
interest
Bank loans received
290,083
661,114
658,179
715,793
Bank loans repaid
(153,505
)
(33,360
)
(417,850
)
(70,027
)
Fees on loans and derivative
instruments
(2,163
)
(6,417
)
(8,671
)
(9,277
)
Interest paid
(76,442
)
(50,571
)
(144,945
)
(104,669
)
Payment for the principal of lease
liabilities
(24,523
)
(14,402
)
(44,745
)
(29,751
)
Interest paid for lease liabilities
(13,174
)
(9,525
)
(25,294
)
(16,220
)
Initial margin received on non‑deliverable
forwards/non-deliverable swaps
52
633
52
6,477
Profits received/(losses) settled on
non‑deliverable forwards
420
(284
)
420
(3,025
)
Net cash used in financing
activities
20,748
547,188
17,146
489,301
Net increase/(decrease) in cash and cash
equivalents
2,487
120,956
45,926
(288,978
)
Cash and cash equivalents at beginning of
period
515,589
508,609
514,078
916,488
Effect of movements in exchange rates on
cash
(85,028
)
(62,267
)
(126,956
)
(60,212
)
Cash and cash equivalents at end of
period
433,048
567,298
433,048
567,298
Use of Non-IFRS financial measures
Certain parts of this press release contain non-IFRS financial
measures, including Adjusted EBITDA, Adjusted EBITDA Margin and
Recurring Levered Free Cash Flow (“RLFCF”). The non-IFRS financial
information is presented for supplemental informational purposes
only and should not be considered a substitute for financial
information presented in accordance with IFRS, and may be different
from similarly titled non-IFRS measures used by other
companies.
We define Adjusted EBITDA as profit/(loss) for the period,
before income tax expense/(benefit), finance costs and income,
depreciation and amortization, impairment of withholding tax
receivables, business combination transaction costs, impairment of
property, plant and equipment and related prepaid land rent on the
decommissioning of sites, net (profit)/loss on sale of assets,
share-based payment (credit)/expense, insurance claims, listing
costs and certain other items that management believes are not
indicative of the core performance of our business. The most
directly comparable IFRS measure to Adjusted EBITDA is our
profit/(loss) for the period.
Segment Adjusted EBITDA (defined as profit/(loss) for the
period, before income tax expense/(benefit), finance costs and
income, depreciation and amortization, impairment of withholding
tax receivables, business combination transaction costs, impairment
of property, plant and equipment and related prepaid land rent on
the decommissioning of sites, net (profit)/loss on sale of assets,
share-based payment (credit)/expense, insurance claims, costs
relating to this offering and certain other items that management
believes are not indicative of the core performance of its
business)) to assess the performance of the business.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by
revenue for the applicable period, expressed as a percentage.
We believe that Adjusted EBITDA is an indicator of the operating
performance of our core business. We believe Adjusted EBITDA and
Adjusted EBITDA Margin, as defined above, are useful to investors
and are used by our management for measuring profitability and
allocating resources, because they exclude the impact of certain
items which have less bearing on our core operating performance. We
believe that utilizing Adjusted EBITDA and Adjusted EBITDA Margin
allows for a more meaningful comparison of operating fundamentals
between companies within our industry by eliminating the impact of
capital structure and taxation differences between the
companies.
Adjusted EBITDA measures are frequently used by securities
analysts, investors and other interested parties in their
evaluation of companies comparable to us, many of which present an
Adjusted EBITDA-related performance measure when reporting their
results.
Adjusted EBITDA and Adjusted EBITDA Margin are used by different
companies for differing purposes and are often calculated in ways
that reflect the circumstances of those companies. You should
exercise caution in comparing Adjusted EBITDA and Adjusted EBITDA
Margin as reported by us to Adjusted EBITDA and Adjusted EBITDA
Margin as reported by other companies. Adjusted EBITDA and Adjusted
EBITDA Margin are unaudited and have not been prepared in
accordance with IFRS.
Adjusted EBITDA and Adjusted EBITDA Margin are not measures of
performance under IFRS and you should not consider Adjusted EBITDA
or Adjusted EBITDA Margin as an alternative to profit/(loss) for
the period or other financial measures determined in accordance
with IFRS.
Adjusted EBITDA and Adjusted EBITDA Margin have limitations as
analytical tools, and you should not consider them in isolation.
Some of these limitations are:
- they do not reflect interest expense, or the cash requirements
necessary to service interest or principal payments, on our
indebtedness;
- although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized will often need to be
replaced in the future and Adjusted EBITDA and Adjusted EBITDA
Margin do not reflect any cash requirements that would be required
for such replacements;
- some of the items we eliminate in calculating Adjusted EBITDA
and Adjusted EBITDA Margin reflect cash payments that have less
bearing on our core operating performance, but that impact our
operating results for the applicable period; and
- the fact that other companies in our industry may calculate
Adjusted EBITDA and Adjusted EBITDA Margin differently than we do,
which limits their usefulness as comparative measures.
Accordingly, prospective investors should not place undue
reliance on Adjusted EBITDA or Adjusted EBITDA Margin.
We believe that it is important to measure the free cash flows
we have generated from operations, after accounting for the cash
cost of funding and recurring capital expenditure required to
generate those cash flows. In this respect, we monitor RLFCF which
we define as cash from operations, before certain items of income
or expenditure that management believes are not indicative of the
core performance of our business (to the extent that these items of
income and expenditure are included within cash flow from operating
activities), and after taking into account loss allowances on trade
receivables, impairment of inventory, net working capital
movements, net interest paid or received, withholding tax, income
taxes paid, lease payments made, maintenance capital expenditure,
and routine corporate capital expenditure.
We believe RLFCF is useful to investors because it is also used
by our management for measuring our operating performance,
profitability and allocating resources. While Adjusted EBITDA
provides management with a basis for assessing its current
operating performance, in order to assess the long-term,
sustainable operating performance of our business through an
understanding of the funds generated from operations, we also take
into account our capital structure and the taxation environment
(including withholding tax implications), as well as the impact of
non- discretionary maintenance capital expenditure and routine
corporate capital expenditure, to derive RLFCF. RLFCF provides
management with a metric through which to measure how the
underlying cash generation of the business by further adjusting for
expenditure that are non-discretionary in nature (such as interest
paid and income taxes paid), as well as certain non-cash items that
impact profit/(loss) in any particular period.
RLFCF measure is frequently used by securities analysts,
investors and other interested parties in their evaluation of
companies comparable to us, many of which present an RLFCF-related
performance measure when reporting their results. Such measures are
used in the telecommunications infrastructure sector as they are
seen to be important in assessing the long-term, sustainable
operating performance of a business. We present RLFCF to provide
investors with a meaningful measure for comparing our cash
generation performance to those of other companies, particularly
those in our industry.
RLFCF, however, is used by different companies for differing
purposes and is often calculated in ways that reflect the
circumstances of those companies. You should exercise caution in
comparing RLFCF as reported by us to RLFCF or similar measures as
reported by other companies. RLFCF is unaudited and has not been
prepared in accordance with IFRS.
RLFCF is not intended to replace profit/(loss) for the period or
any other measures of performance under IFRS, and you should not
consider RLFCF as an alternative to cash from operations for the
period or other financial measures as determined in accordance with
IFRS. RLFCF has limitations as an analytical tool, and you should
not consider it in isolation. Some of these limitations are:
- not all cash changes are reflected, for example, changes in
working capital are not included and discretionary capital
expenditure are not included;
- some of the items that we eliminate in calculating RLFCF
reflect cash payments that have less bearing on our core operating
performance, but that impact our operating results for the
applicable period;
- the fact that certain cash charges, such as lease payments
made, can include payments for multiple future years that are not
reflective of operating results for the applicable period, which
may result in lower lease payments for subsequent periods;
- the fact that other companies in our industry may have
different capital structures and applicable tax regimes, which
limits its usefulness as a comparative measure; and
- the fact that other companies in our industry may calculate
RLFCF differently than we do, which limits their usefulness as
comparative measures.
Accordingly, you should not place undue reliance on RLFCF.
Reconciliation from profit for the period to Adjusted
EBITDA
The following is a reconciliation of Adjusted EBITDA to the most
directly comparable IFRS measure, which is profit for the three and
six months ended June 30, 2023 and 2022:
Three months ended
Six months ended
June 30,
June 30,
June 30,
June 30,
2023
2022*
2023
2022*
$'000
$'000
$'000
$'000
Loss
(1,248,283
)
(178,574
)
(1,240,508
)
(163,455
)
Adjustments:
Income tax expense
57,241
17,102
72,459
33,358
Finance costs(a)
1,366,012
261,886
1,542,979
380,902
Finance income(a)
(8,373
)
(3,895
)
(13,160
)
(45,667
)
Depreciation and amortization
116,494
114,859
235,450
222,699
Impairment of withholding tax
receivables(b)
13,349
12,932
24,604
27,717
Business combination transaction costs
27
5,679
1,486
14,039
Net (reversal impairment)/impairment of
property, plant and equipment and prepaid land rent (c)
935
(3,514
)
5,081
(1,331
)
Net loss/(gain) on disposal of property,
plant and equipment
168
13,617
(566
)
13,784
Share-based payment expense(d)
3,628
2,051
6,917
5,625
Insurance claims(e)
(133
)
(466
)
(278
)
(1,616
)
Other costs(f)
2,673
—
4,848
514
Other income(g)
(28
)
(2,501
)
(58
)
(2,521
)
Adjusted EBITDA
303,710
239,176
639,254
484,048
Divided by total revenue
546,204
467,683
1,148,732
913,815
Adjusted EBITDA Margin
55.6
%
51.1
%
55.6
%
53.0
%
*
Re-presented to reflect the remeasurement
period adjustments, as required by IFRS 3, in respect of updates to
the accounting for the GTS SP5 Acquisition in March 2022 and the
MTN SA Acquisition in May 2022
(a)
Finance costs consist of interest expense
and loan facility fees on borrowings, the unwinding of the discount
on our decommissioning liability and lease liability, realized and
unrealized net foreign exchange losses arising from financing
arrangements and net realized and unrealized losses from valuations
of financial instruments. Finance income consists of interest
income from bank deposits, realized and unrealized net foreign
exchange gains arising from financing arrangements and net realized
and unrealized gains from valuations of financial instruments.
(b)
Revenue withholding tax primarily
represents amounts withheld by customers in Nigeria and paid to the
local tax authority. The amounts withheld may be recoverable
through an offset against future corporate income tax liabilities
in the relevant operating company. Revenue withholding tax
receivables are reviewed for recoverability at each reporting
period end and impaired if not forecast to be recoverable.
(c)
Represents non-cash charges related to the
impairment of property, plant and equipment and related prepaid
land rent on the decommissioning of sites.
(d)
Represents credits and expense related to
share-based compensation, which vary from period to period
depending on timing of awards and changes to valuation inputs
assumptions.
(e)
Represents insurance claims included as
non-operating income.
(f)
Other costs for the three months ended
June 30, 2023 included one off consulting fees related to corporate
structures and operating systems of $1.2 million and non-recurring
consulting services of $1.0 million. Other costs for the three
months and six months ended June 30, 2022 included professional
costs related to SOX implementation. Other costs for the six months
ended June 30, 2023 included one off consulting fees related to
corporate structures and operating systems of $2.8 million,
non-recurring consulting services of $1.0 million, aborted business
combination transaction costs of $0.6 million and non-recurring
professional fees related to financing of $0.2 million.
(g)
Other income for the three and six months
ended June 30, 2022 related to a tax indemnity receipt from a
seller relating to a prior acquisition.
Reconciliation from cash from operations to RLFCF
The following is a reconciliation of RLFCF to the most directly
comparable IFRS measure, which is cash from operations for the
three and six months June 30, 2023 and 2022:
Three months ended
Six months ended
June 30,
June 30,
June 30,
June 30,
2023
2022
2023
2022
$'000
$'000
$'000
$'000
Cash from operations
264,132
216,800
516,154
383,407
Net movement in working capital
40,284
22,158
126,467
91,109
(Net loss allowance)/net reversal of loss
allowance on trade receivables
(954
)
(668
)
(4,514
)
1,800
Impairment of inventory
—
—
—
(138
)
Income taxes paid
(19,514
)
(23,903
)
(33,957
)
(40,002
)
Withholding tax(a)
(33,497
)
(27,837
)
(66,929
)
(55,981
)
Lease and rent payments made
(38,355
)
(25,514
)
(72,982
)
(50,101
)
Net interest paid(b)
(71,363
)
(46,683
)
(133,368
)
(97,653
)
Business combination transaction costs
27
5,679
1,486
14,039
Other costs(c)
2,673
—
4,848
514
Other income(d)
(28
)
(2,501
)
(58
)
(2,521
)
Maintenance capital expenditure(e)
(51,261
)
(29,195
)
(95,019
)
(68,787
)
Corporate capital expenditure(f)
(1,064
)
(799
)
(1,554
)
(1,087
)
RLFCF
91,080
87,537
240,574
174,599
Non-controlling interest
(1,494
)
(750
)
(4,562
)
(3,769
)
RLFCF excluding non-controlling
interest
89,586
86,787
236,012
170,830
(a)
Withholding tax primarily represents amounts withheld by
customers and amounts paid on bond interest in Nigeria which is
paid to the local tax authority. The amounts withheld by customers
may be recoverable through an offset against future corporate
income tax liabilities in the relevant operating company.
(b)
Represents the aggregate value of interest paid and interest
income received.
(c)
Other costs for the three months ended June 30, 2023 included
one off consulting fees related to corporate structures and
operating systems of $1.2 million and non-recurring consulting
services of $1.0 million. Other costs for the three months and six
months ended June 30, 2022 included professional costs related to
SOX implementation. Other costs for the six months ended June 30,
2023 included one off consulting fees related to corporate
structures and operating systems of $2.8 million, non-recurring
consulting services of $1.0 million, aborted business combination
transaction costs of $0.6 million and non-recurring professional
fees related to financing of $0.2 million.
(d)
Other income for the three and six months ended June 30, 2022
related to a tax indemnity receipt from a seller relating to a
prior acquisition.
(e)
We incur capital expenditure in relation to the maintenance of
our towers and fiber equipment, which is non- discretionary in
nature and required in order for us to optimally run our portfolio
and to perform in line with our service level agreements with
customers. Maintenance capital expenditure includes the periodic
repair, refurbishment and replacement of tower, fiber equipment and
power equipment at existing sites to keep such assets in
service.
(f)
Corporate capital expenditure, which are non-discretionary in
nature, consist primarily of routine spending on information
technology infrastructure.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230815267917/en/
Investors: investorrelations@ihstowers.com Media: Giles Bethule/
Akash Lodh FGS Global Giles.Bethule@fgsglobal.com /
Akash.Lodh@fgsglobal.com +44 207 251 38 01
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