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LONDON – IHS Holding Limited (NYSE: IHS), a leading global provider of shared communications infrastructure, reported its fourth quarter financial results, revealing a challenging period characterized by the impacts of currency devaluation and a significant loss. In pre-market trading, IHS Holding’s share price fell 2.80%.
The company’s adjusted earnings per share (EPS) for the quarter was -$1.36, below the analyst consensus of $0.00. Revenue for the quarter was $509.8 million, beating the consensus estimate of $477.77 million but representing a decline of 3.1% from the same quarter last year.
The company’s performance was significantly impacted by the devaluation of the Nigerian Naira, which resulted in foreign exchange headwinds of $271.8 million. However, organically, revenues grew 48.4% compared to the previous year. Despite currency challenges, IHS Holding’s adjusted EBITDA increased marginally 0.6% to $274.2 million, reflecting an adjusted EBITDA margin of 53.8%.
The loss for the period amounted to $456.8 million, compounded by the ongoing devaluation of the Nigerian Naira and its impact on financing costs, particularly unrealized currency losses. Cash from operations of the company was $162.1 million, with adjusted leveraged free cash flow (ALFCF) of $118.2 million, indicating a 22% year-over-year (YoY) improvement ).
Looking ahead, IHS Holding presented its guidance for 2024, forecasting revenues of between $1.7 billion and $1.73 billion, lower than the analyst consensus of $1.98 billion. The company’s guidance assumes an average Nigerian Naira rate of NGN1,610, up from NGN638 in 2023, and projects a $535 million negative impact on year-over-year revenue after adjusting for the impact of exchange rate resets.
Sam Darwish, President and CEO of IHS Towers, commented on the results, highlighting the business’s strong secular trends and the company’s focus on innovation and operational efficiency. He also acknowledged the significant currency difficulties in Nigeria and the undervaluation of the company’s capital given Africa’s global market perception.
IHS Holding Limited plans to continue to focus on growth and cash generation, with a significant reduction in capital expenditure and a continued drive towards increasing productivity and reducing costs. The company’s strategic review, led by the Board of Directors and advisors including JP Morgan, will explore alternatives to unlock shareholder value across its portfolio and capital allocation priorities.
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