IHS Holding Limited (IHS) 23 May 232023 Q1 Earnings call transcript

Good day, and welcome to the IHS Holdings Limited Earnings Results Call for the three-month period ending March 31, 2023. Please note that today's conference is being webcast and recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Colby Synesael. Please go ahead, sir.

Thank you, operator. for call everyone to also joining today. the Thanks Communications IHS. Colby Synesael, at of EVP I'm here today Sam me Howden, With are our and and CFO. Steve CEO; Darwish, our Chairman three-month unaudited This published section of on financial period Relations ended website. statements the morning, Investor March our for we our XXXX, XX, the and related issued a presentation. and earnings release

of the are the IHS IHS, York Exchange Stock of comprises New ticker which which symbol operations. Ltd, These Holding results the the entirety under consolidated on is group's the listed

results, like would the your draw today. the X-K the cautionary of to set forward-looking discuss in X, on statement attention we Before read statements and the filed up I beginning as to at along be which disclaimer with in well should regarding release full, our the Slide presentation earnings

from of to filed the such future those filings other materially Securities in including SEC. Exchange forward-looking discussed which information and control different risks, beyond unknown performance Factors implied may forward-looking the known nature, actual cause or of statements, any expressed uncertainties, XX-F that results industry achievements statements, or their results, factors performance by Risk the Commission and difficult discussed particular, predict our to achievements industry results, some which, results are involve or Form factors, contain and by In other to be which and may are section our or or other and important with with the be

Relations found our Reconciliation earnings of assessing nearest non-IFRS which the We'll in performance also metrics refer to business. be the website. available we on presentation, metrics important measures non-IFRS of our can Investor is IFRS the as section that of our view in to

and to over I'd Darwish, that, CEO. with to Sam turn our call Chairman like And the

from moderated, as We Thanks, Colby, step-up our growth expected. from by power and while primarily results to driven everyone, quarter another all a call. first sequential lease FX and resets new amendments, growth quarter earnings strong had with escalators, XXXX welcome,

inclusive million Results also $XX from benefit withholding $X of tax smallest one-time and included to one-time million in gross-up a key RLFCF. adjusted to a revenue additional $XX million EBITDA Nigeria, benefit our customer and

results FX a guidance, rates versus all in $X included Lastly, positive. QX tailwind previously million assumed

our our RLFCF, versus adjusted guidance revenue, XXXX and that issued guidance benefit CapEx we are including rates modest the withholding $XX for FX We in assumed recognize all in previously in reiterating $X and key guidance. tax that metrics, now rates million We QX EBITDA, upside from in upside our updated million the implied assumed March.

devaluation volatile Skipping discuss to and on remain risk the approach rates quarter. our that emerging FX and we prudent remain notable guidance. Overall, key given some XXXX. our increase markets want X. Slide to not for of in important I goals a exists, be track for our think our can of However, in Naira this it's we achieve we to year highlights

intends an resulted we subsequent that to quarter IHS, quarter to announce also We're in we last to Starting be President-elect Bola and as issues about the to Nigeria's address. cautiously President be to specific upstreaming end, completed QX. pleased Nigeria, success today More $XX began that May have optimistic the Sworn in study with on We continue Tinubu incremental expected XX. upstream next $XX wish Mr. and million to the Tinubu upstreamed million. an economic is in additional

drive will occupied where smallest we're was customer, positive incurring during rationalize XXX towers key we QX, revenue, a our and elected savings, Nigeria, help by were unexpected development. costs. but not recognizing on cost we This Lastly, to

country. tower us in In South the acquisition nearly the year operator Africa, ago, largest from made our independent towers a of MTN X,XXX immediately

country various last that the has post-deal level unprecedented an load of the dynamics stated in occurred and we including in As quarter shedding given close. market,

we'll and update We continue opportunities, to appropriate you power and if necessary. as evaluate our services

the requirement XXXX, became offering in registered and shares steps evaluate the improve April this available last shares, on C taking and stock including may company. the help May, C trade another B, registered XX to B including our value to of of enhance help Moving we XXXX and the Block further to After liquidity, without that million believe we available volumes, will equates releases on October become XX waiving initial believe and offering D. which continue the over requirement Block XXX D in the will we just Block million-plus year trading to options shares

building investors. At and publicly stated time, focus our with a the same we continue record on delivering fundamental against track objectives to

entered Lastly, health as percent debt the in specifically QX, look loan anticipation more potential of or local a as to in we RLFCF disclosed, and Naira during the devaluation. term our Naira currency of we previously into narrow-denominated a increase

low we and end target Xx maintaining Overall, of maturities of strong due to includes importance continue Xx disciplined until to deployment, approach the a at our take no net X.Xx QX sheet. to capital the recognizing leverage of a 'XX. meaningful balance This

we While to with balance we generally are are. where we happy our optimize continue sheet,

see evolution under continued we later will fifth at IHS. year our which X The demonstrating expect publish will sustainability be report doing sustainability XXXX of to that our first-year and the quarter, our on you this our reporting Quickly, Slide GRI be so. reporting report XXXX framework sustainability

to the And with Steve. will call over that, turn I

Thanks, QX and I'll then, today. year our ago particularly be everyone. Having the of than discussed results full XXXX QX and less concise Sam. months reported elements Hello, two

X. Slide to Turning

performance. As QX Sam with our mentioned, we're pleased

in RLS the excluding will smallest key have once double-digit by increased versus the in You 'XX QX EBITDA for our one-time from Nigeria. after XXXX in that in growth And percentages delivered and we all quarter, KPIs main XXXX. adjusted QX received cash payment even customer see double-digit revenue, our again QX

ultimately, EBITDA of we million payment the adjusted $XX it had and As Sam RLFCF and mentioned, $XX resulted already QX. this in on million in QX revenue and call of flagged

by inorganic and activity on XX% adjusted in both in growth in Specifically, in markets. case each EBITDA, driven growth and QX, our reported in delivered growth revenue, organic basis across we XX% RLFCF XX% a

adjusted for on adjusted give Our the these We point comparison. talk gain slides performance to revenue to and XX.X% I'll 'XX. an margin rates the on one-time EBITDA as improved XX-basis about true QX later

As quarter, you largely grew increased there. CapEx in refurbishment to fiber XX% investment in ongoing LatAm Africa network private the see, and relating decreases to Green, Project in in deployment by due CapEx part other in I-Systems investment also South in in in by and CapEx Nigeria offset

of leverage net but QX, at X.X consolidated a the year increase slight QX our Finally, our an two 'XX. end following was last versus decrease from ratio times acquisitions,

consolidated $XX Organic XX% revenue consolidated first revenue primarily was for quarter. growth Slide basis. growth our the to of the driven shows on of XX XX.X% components reported a Turning revenue our colocation, revenue the and deployment by billion sites, with CPI amendments resets, growth by new escalations, one-time to adding power-related as lease fiber and FX new usual. revenue other in and

revenue accounted The you last energy contract in of level now the the power-related and the million. segment resets down that note environment, quarter. include our also South $X.X we price for high in in again while revenue I power reflects the Power see protections albeit Africa to of within level escalations from would we QX, continues reflect FX received was it pass-through

the delivering of each with fifth right, to that payment. the including rates SA growth Nigeria growth in the stage XX% of acquisition one-time passing QX you and GTS Brazil, continue see are segments will acquisition. South organic in MTN we of of can On QX the the the and acquisition, the Kuwait the Inorganic Inorganic African transactions. drop anniversaries SPX SPX for X.X%, as growth, our growth organic the reflecting quarter was

FX Finally, in XX.X% quarter. delivered a negative impact the

we strong our and So, basis. On in EBITDA and on excluding when revenue QX EBITDA, a growth an XX% adjusted delivered margins see in can for of Slide revenue, you adjusted on XX% quarter, even consolidated 'XX. totality, the reported the XX, basis one-time organic

I increase first slide, on prior As XX% a revenue. generated in in IHS discussed reported the quarter, the

even EBITDA increased basis was and growth XX%, strong adjusted Nigeria higher 'XX, $XXX at businesses versus of million and particular. of Organic XX% margin from in continued points QX trends revenue year. In EBITDA was prior top-line again, QX XX.X%, XX by up adjusted the demonstrating the led the LatAm 'XX growth

sales, The year-over-year in with the including increases margin revenue, revenue partially one-time already related to first costs increase larger EBITDA and the that increase for well primarily in and maintenance in costs changes as year-on-year on to from cost repair acquisitions. resulting due mainly business a costs, the offset employee of reflect in expenses adjusted the higher we've diesel as cost quarter increased discussed, administrative

$XX Without driven million XX%. a XX% decrease cost partially diesel to $XX increase Nigeria. EBITDA by in million increase, the primarily each by $XX still in adjusted sales due million one-time X.X% a by offset consumption diesel Power increased of cost a price grew benefit, in generation

XXXX. of portion in pricing locked As our previously through highlighted, for we diesel of needs September significant a have

Slide And on to We review On million of 'XX, of through our to generated reduce Project in flow. Green, $XXX we alternative cash XX, we sources prioritize recurring QX our continue dependency RLFCF XX% first including last due power level in free versus particular, the million one-time discussed $XX impact which and a net increased to had on a combination in increase factors, already, payment of the a year QX adjusted positive EBITDA RLFCF. revenue Nigeria, diesel.

mostly in These lease paid payments tax. withholding net South by African part interest offset due factors in and made acquisition increases were to

quarter higher Our still in energy quarter, nonrecurring interest in versus the grew rate and RLFCF excluding the the conversion And RLFCF prior environment despite period. cash our the XX%. was this XX.X%, revenue higher rate

CapEx CapEx 'XX, $XXX million million the on the spent connection in again XX.X% during increased in Systems, increased we South primarily with the and portfolio QX which connection Turning to The also acquired increases increased Africa was of to primarily $XX in quarter. CapEx. Project increase of in CapEx In for Nigeria year-on-year. due with in XXXX, Green, LatAm in refurbishment

through and although Slide to be available we the billion billion Nigerian of in at end decreased the late difficult discussed to dollars country business, the having first in of remain XXXX. challenging, with XX. U.S. FX as And our $XX.X source, at I'll the review $XX.X end from turning reserves segment March walk to Nigeria macro continue March remains on to

year oil Gas start QX decreased Russia-Ukraine indicator most conflict versus of quarter-on-quarter, the relevant And the in while price the price reflecting the has is XXXX, pay. the since the Oil elevated and of remains pricing ICE of it we a diesel ago, of

tonne last Oil, XXXX, per still QX QX above $XXX Gas from per tonne $XXX Looking per tonne was in at it in of but down ICE in XXXX. QX year $XXX

'XX. It a Moving to by XXXX XX.X% XXXX in March March XX% with QX while in this projected versus inflation X.X% expanded increased growth of full-year X.X%, growth. GDP of real

Importantly, is on May XX, to expected Bola President-elect Tinubu be inaugurated.

As Mr. regarding their gained have which previously, with recently cautiously addressing facing country, made Tinubu the our results in given close optimistic in healthy two and we published the we're economic of the contact said remain issues customers, by statements we key businesses. top-line

and our vendors, Nigerian local the to continue All our We also basis believe we on a an our said, again XX% each to strong once revenue first banking long-term continued in business challenges. regulators, our key to organic closely one-time XX% of business reflecting continue position and work To for increased macroeconomic IHS. $XXX year-on-year this remains with basis, case, point, delivered various on the success to revenue tracking enjoy best partners million positioned ‘XX well metrics. nearer-term QX well results discussed. the in quarter the on also reported and and

negative was amendments, was driven deployment. or power-related of FX million $XX.X fiber, The usual site impact by and group colocations, resets, new growth new revenue Top-line the XX%. escalations, lease FX

planned QX 'XX, total versus account count not X.X% previously largely X.X% discussed, revenue. decommissioning by Tenant which our and Tenant decreased decreased Our the does each reflecting impact by

Our times, equipment our growth up as with these amendments customers a X.XX from consequently XG X.XX be times XX% improved increasing additional upgrades. Lease to driver strong QX in by quarter-on-quarter to to our particularly sites, 'XX. of added rate colocation continue

QX XX%. increase to 'XX basis segment-adjusted Nigeria segment XX a year adjusted million, was ago. EBITDA $XXX margin EBITDA from a was in up and XX% points

me briefly other of summarize segments. the now our results Let

South revenue As tenants by towers now South which revenue reflects Sub-Saharan segment and was 'XX. And business increased our acquisition. inclusion XX%, African organic XX%, grew grew XX%, X.X% headwind. increased the of African of by a FX of Revenue our inorganic driven substantially and the QX versus

EBITDA XX%, increased the to offset Segment-adjusted by in of security generation increased primarily decreased last in increases XX.X% costs, margin and driven partially QX by expenses. year. from by and power costs, XX.X% EBITDA maintenance Segment-adjusted revenue, administrative

opportunity utility. in ongoing our particularly discussed, the there. we monitor the environment power services continue to Africa, continue national load previously to South by We the sharing And as evaluate managed macro

In tenants SPX X.X% more of our X%, reflecting grew closure the and and LatAm segment, respectively, acquisition QX the Towers last by in year. GTS modestly

closure largely 'XX, the increased in of QX revenue the However, of the by the segment-adjusted timing fiber as and over EBITDA as well due deal XX% to year each business. I-Systems last

LatAm second marginally interest I-Systems were macro rates increasing growth and from lines increase the XX%, new X,XXX FX was by and driven overall, CPI rates sites our escalators, held our XX% inflation colocation conditions QX market decelerated, stable largely steady acquisition. towers, increased GDP revenue organic by an decreased. segment, Brazil, as with In strengthened, In revenue inorganic 'XX from new

of by EBITDA Segment-adjusted XX% revenue, revenue EBITDA grew XX% X% the In quarter grew expenses, by the revenue staff administrative reflecting with XX.X% by MENA, offset XX% and increased margin but QX 'XX, tenants X,XXX a in in increase debt segment-adjusted and including bad costs organic each grew growth. allowance. and including increased in by

On increase expense. in segment-adjusted to XX.X%, Segment-adjusted XX, EBITDA of EBITDA margin KPIs. the of I'll revenue, and by highlight but briefly increased Slide sales with grew quarter by administrative offset cost our reflecting X% in a the

XX, period last Nigeria, new the sites by XX.X% driven albeit by and of end and of Towers since SSA, acquisition XX,XXX, As of largely XXX XXXX. tension same March towers from the in down year the our up ongoing LatAm, net

at see Sam our by mentioned, we last sales key on XXX in built you during grew quarter co-location XX% Tenants a XXXX. also rationalized occupied can flat were customer generating right, slightly 'XX. as collectively, X.XX not towers year, from Tower in we first rate we the in the up QX Nigeria, of but XXX But versus As with top where times, the revenue. towers chart

factor lease for customers point our XG in particularly there. continue significant We that by are amendments Nigerian the a ongoing our us, out given segment upgrades to

And the XG seeing. are initial, we albeit small activity

commitments year-on-year, increased While lease they our included by are almost calculation. in XX% not allocation

Slide we get on why We items. times that continue are look long overall our mature more above or and capital rate. or over at towers portfolio reason X greater at we of to structure no XX, portfolio On can't term to see related our the and our

bond $X.XX billion debt million down level. XXXX, bullet and from we XX $X.XX At our IFRS of XX, three-year approximately and indebtedness billion lease other at financings we debt, the the term the that Limited $XXX March XXXX liabilities. $XXX Of in million had of IHS includes loan represent external drew $X.XX billion Holding

Additionally, loan as XX up on QX five-year XXXX, and up an in our to Naira Naira discussed call, we three-year January billion entered billion of term to RCF. earnings into XXX

Nigerian in Naira with the billion connection In XXX repaid amortization. facilities. this, currency And is we Nigerian significant see table, as XXXX two of removing you our RCS local The undrawn.

which very and As to Nigeria we pleased derisked further sheet in financing have previously remain financial refinancings, completed stated, across tough globe. we're the that of our conditions balance recent light the particularly increased the the flexibility,

at were Cash March XX. basically and equivalents flat cash million $XXX at

Moreover, U.S. Green using cash cash dollars where at business, Project of upstreaming. and January, was in structured of the Naira that December held, part support remaining year, upstreamed which end cash in majority we've million held transaction last group $XX terms as as across In that at $XX 'XX. through in of XX% the held at is upstreamed million have the the The of our total and approximately we 'XX the we Nigeria from was Nigeria been began we cash as of highlighted, January to and previously excess

X target strong from the X times, ratio sheet. and leverage consolidated further end debt at elements, upstreamed 'XX, these range our our And demonstrating low $XX to approximately Consequently, leverage as 'XX. was our consolidated $XX X.X at Sam and balance we down X-X, our an billion times, net the million was of moving QX slightly in from QX of have all times of additional net noted, $X.X end net December

$XXX reiterating range in XX, billion, to CapEx that range Slide the of guidance range million. of to billion revenue range XXXX EBITDA adjusted $XXX in $X.XX of includes billion in the to $XXX RLFCF and million million total $X.XX $XXX $X.XX to we're in of million to billion the On $X.X the

Nigeria year. QX, updated some we recognize rates, markets rates be given FX while As volatile, in that Sam modest devaluation and expect including can we in emerging mentioned, this upside notable in the still FX the

important to Africa, to that of Guidance could I difficult and we've QX million EBITDA predict to prudent our $XX We it's impact our want of timing include be such no 'XX. approximately do power would relative again in not is caution or what to this although revenue remain in think which we RLFCF. adjusted of moves delayed million operation assumed, increase guidance. continues have on South $X.X recognized also and we pass-through in

again with to align Guidance also Egypt, strategic market also locked costs. of for pricing believe September although financial the continues a that needs diesel in have to point our opportunities want and visibility continue in revenue to which, XXXX, in turn, any significant to could objectives. our through that greater our not Nigeria out include I provide we portion from we we evaluate in

expect For to towers, the build more the XXXX. amount slightly to is continue approximately built year, we X,XXX we than in which

drop will new our we the breakdown currency based Green, whereas This as revenue that of on includes site of of builds nice to a top, Slide we a loaded on XXXX. Brazil provided back QX in shift as On you builds tower Nigeria more revenue in split. tripling be pull Project on but also includes see on we back-end the the by XX, 'XX, contract reporting bottom, for in can focus

used annual last for equates The quarter. versus upside We right rates to side for $XX presentation. thank of brings formal has in FX guidance end shows the today. XXXX million our last updated since now assumptions been assumed This that your year quarter. This and the the we average slightly time to rates you

questions. for line the open now please operator, And

Phil Please first ahead. [Operator go Instructions] with line JPMorgan. question the Your comes of Cusick from

couple A you. things. of Thank

into government. deeper little a a Nigeria. There's dig just new Let's

down aggressively this. like pretty expected. us cash mentioned on a couple ready little thinking. sounds a pared It You've getting give you more devaluation your your But just times a of for bit

it's Steve. Phil,

we mentioned champion to there tackling in elected Tinubu the are Tinubu So still comments undervalued. inauguration the had continues of the that in May. been last devaluation a during not that the too Mr. ones February, March. it be continues and And XXth of of around XXXX. before since course Mr. fact our around to case. rate continuing could that be much of has changed is believe coming We've that the the got FX obviously Hence, potentially currency the to policies on spoke the which sort the we've

as continues get that a over that and and may eradicated. The hot well, time, in fuel be to subsidy completely down, topic If Nigeria. out, when phased ramped

So, the there if isn't through too much to see next perspective, week in more, pledges those to that we I to some see new our in, made were start campaign the we're so can from government and come of think, say then waiting fruition. the or come

everything the just pace is anything Have build change like a their carriers or running that or pace?

We're QX, year start focused how be in figuring country. last No. of continuing forward of Nigeria the the we've by initially significantly. incrementally on won't XG as best on I well. to out sites bit it bit Indeed, with that and will seen MTN in certainly being of thousands a to rolled little needs pretty a Nigeria thousands continue likes before, we've Not the population, QX focused to that at infrastructure see out little the like mean, won't, in as rollout. in but push said exactly their moment. They're thousands, add and to to that, the which And to get

in next the I part them we So, onset this which technology. carriers to cycle, behave technology is would continuing the the changes. year the no of are would of to, early as expect significant say

M&A potential partnerships? maybe it Sam, talk about look low Okay. does the in deals end of about do? of to differently things Thank the of is would would you make your other can, Does or either then, global leverage What kind tower or carrier you And that target at And at range. terms point running your want sales if landscape. like this think you how what you. structure any I

Philip. Thanks,

maybe of start position, terms In I'll there. our

XX intentionally have months. we -- XX months, side the would prudent on are been to over we think the XX I say, past I

We have sure. we rising like kind with our realized rates, coming this and be on sector seen the for pressure of interest will

part like So, thought still at shied about as expensive did of to it as are mean very at us. much going was strategic how we moment. we or how it's away various a cheap we to South can. strategic largely how kind be look get us, We That's done. it's -- M&A we we for can still Africa, opportunity. important is the and I which the

Now fast did of there a valuations, the sector between that, did. valuations private as think not like I dislocation been the kind public said down public the has and private it trend private having expectations expectation, valuations as

still So softening begin of are that there. assets like of who to as of honest, this to But out be location to it the kind some Phil, kind was we'll beginning somehow need their see like sellers there. put sell to

are their in out think there data, months they're high going point, some few taking East They're at There or and transactions Middle ago. seen not the start moment. XX at we've a the few to will at to that ago I XX happening have months in processes multiples But are be processes time. a the out

that answers question. So, your I hope

the at the need buying taking price? end, How stock? for do the about low of the advantage your leverage share liquidity with you think would think In about versus meantime, you

of cost I remains Steve in wonderful pushing somehow debt team think subdued. make even Look, of because Last we balance to in maturities, a debt I ready different local like is is with has think we are more currencies, the job like like, our kind year of is our come of And kind of sure and we into year, kind me. position. further, wanted bringing good slightly like kind done this tight for the very sheet overall a

think and sitting at the leverage, are low out try the enables do its which we to funnel. I probably more. don't But guess, of word yes, at us So moment, I is

are we Where [indiscernible] inflation? going interest central seen. with presser Europe How the and think does to to be rate geopolitical China. I the control yet

phase requires a we in think are I still a product. that

it be good Now It if present that. be do Matias. it's enough, to It's commercial. as can it as it. strategic. that We cheap is to itself has simple has

Your comes the Greg from TD with Please go next Williams question ahead. Cowen. of line

Thanks, question. my taking Great. for

are with Just admittedly look know to one, just beat. your even these help the guidance. even your two one reiterated And or million adjusted just if you months in us underlying of quarter $XX and benefits, are at trending you you one-time I and last it, -- I print. performance from

Just wondering if mechanics there's the a a conservative here. that, Is devaluation. ask with And with how of to much I catch Can uncertainty suppose Thanks. quickly help quarterly it? CPI of again there's how and it on resets. that of to will? is up And if are devaluation. factoring and monthly, you tomorrow FX maybe devaluation you the just second, me then your

about Thank helped said we're -- our terms portray exactly some QX, yes, in thinking to some of cetera. capital you, is in we've you you Greg, try which FX, had how what outlined so the around what I in by positive it, mean, et it is we performance guidance positivity

only we So, you spoken tailwind future particularly at taking just we're Nigeria we've potential a QX, around again, as currency are there. about. cautious position have devaluation, we said, But

within right where certainly into to the it, of guide, was little pleased upper we're ranges, layer are bit we et cetera. the view So, at not end, a now our change caution those but

now. for that's the as the So, around is exactly thinking fact guidance maintaining and

XX on second course. guide presentation, Nigeria the devaluation referring of chart just of our your presentation, if in when we're around the of is happens, frequency I'll And question here, our and website to people and to up you which as earnings the gives pie specifically a resets. on the then And Slide

fact contracts FX a perspective, on resetting quarterly in XX% basis. the are majority those from a resetting vast of So,

So, they if to quarter example, commencing. reset first in being the from calendar tomorrow your of next July happened devaluation a the was would start

not taking FX we're spots average of the rates, they're all Now on etc.

reset come the through see following next quarter. So, you quarter, that the

So the FX that takes things. care side of of

fact, passed or the pretty often being have anniversary on annually, calendar And of was all them. of then of much CPI CPI, a MLA a when are from And the the in the signed. escalations majority year beginning particular of in perspective, those January

CPI that they annual, Slide resets, FX So, the of bit most quarterly. year across are that XX, resets them those are scattered whereas a the

comes Goldman from line with Sachs. go next Feldman Brett Please Your question of ahead.

for I devaluation. I'll stick guess Thanks taking probably initially with question. the the potential

alluded based debt your a of to, it'd helpful sort lot Nigerian balances. pulled sounds you've be like down of but obviously It You to cash.

be would or particularly may don't bills, devaluation Is follow-up need the on more Green. a currencies? tied Project would for I think us any district their about bills Would devaluation else to that I that a need take contemplating question conversation have them Tenants, be games particularly you there a So, a have there from where significant And standpoint? then and with a quarter because harmful. that it to mechanic's be to pay you anything that charges your the there? we think there can significant and make challenging are to be remind hard Anything around we

one. start I'll that sure, Yeah, taking

effectively on Nigeria, see not devaluation, although our anything of potential case terms third-party unrealized else to devaluation, of of cases in So, is that's the which deaths, thinking through in FX in dollar losses we be zero. do

shareholder which is to those in So, loans, loans won't historically the our country, clear that. into see how we that we've pushed denominated But internal money dollars. is shareholder

a through affect any will losses coming pass that you through. come but so, the if there the see devaluation that it that is you unrealized will statement, bottom can And KPIs won't through of see there, FX income

discussions. customer terms of In

XX% similar the in last and very and MTN XX%, well. sitting about customer SSA healthy, lot to think to margin mean, MTN SSA I firstly, in in around keep things continue discussions XX% about continue grow XX% of to really to quarter they're the their a I there's posted at results businesses be mind our the Nigeria key customers significantly, they as revenue growth

costs be these taking that diesel have continue those for of devaluations themselves, point also cases, very in profitable energy can would types cost, some that out withstand to those So I such the just those through. the that they we businesses been customers. of pass

talking So, about when FX, energy them about also to prices. talk we're customers we to

totality win, a conversations, win, it's et some cetera. we So, they some of

particular So, in case in of that's we're expecting any customers as been market. the not well historically issue those terms the key with And have devaluations occurred. when

just us Got Or days, which it. progress still terms like you're seem you but color it's give can obviously, too you that And it Green, you initiative. total anticipated? on extent the against just to of then benefits Project good Any the had to early is making yielding it's soon? and early in

Yes, it's a little too soon.

But later would track. get year. So, much in on it's that we'll look to say very I the to

We really QX, cetera, little outdoor that to QX, and panels, CapEx et batteries, are get site, a those solutions, solar to to frame be the connected in starting get to bit connectivity, that in and where on site all all and on is get certainly time QX phase spent coming to grid working. and QX,

and certainly, early, little So, track. we're bit a we're pleased We're on we're everyone internally to we'll with seeing but what course.

[Operator Instructions].

comes question with ahead. next Your Please Rollins of from go the Citi. line Michael

morning. A and Thanks, of good follow-ups. couple

XX. at looking Slide just So

way net bridge. basis? this relationship it between components to relationship these net that a the on about the two positive, investors CTI is neutral, and the together resets, of larger a little Is And resets. net the than right right the combination to FX the FX of of about three be escalations thinking is If headwind items, negative? should that in a think add revenue go-forward you How those the the all the there's

shareholder And updates secondly, the of team are back a and allocation the Board there would some then of performance to on creating and you translate into points the earlier, strategies value? the capital that operating management outlined ideas taking or any Thanks. new just how like some step on the just

Sure. the happy well. to as start jump Tenant first in one. I'll can take I'm

you're way on of it, like timing right quarterly absolutely yes, plus one, I escalations end growth These the thinking the FX binary versus blocks in that's talk the this snapshots bridge, So, about course, first impact about growth. our CPI FX bar. is, people the very of the building are at the in nuances. of how resets of to to There

you resin the in particular FX of look this at when so, And X.X%. case at quarter,

of In negative billing happening of the of FX give against but there this XX.X%. around Nigeria, X.X%, what's consolidated the you when majority the million at to on the quarter. I is rate Naira our is out preceding the some example, XXX it quarter. average escalated based CPI had some books was it average spot of based one we Naira was dollar XXX. which on we Yes, of average And and is because

balance So, come in QX. through that that you'll true-up, see

what So a sometimes That's overall. not net positive how these CPI net be you currency a about Mike right thinking historically. seen you should within absolutely versus when timing we've that's but are think bit but it's the is of why about it. performance. blocks, hugely growth to combine it way I FX It's little say it, there's certainly positive, positive underlying And resets and

Board's along assessing allocation it's the continue this, with mandate clearly, Capital management. point,

at So, we business, forms keep or capital all looking buybacks activity, allocation. other between the investing like of the options in different things inorganic

through that this continue agenda want So the you look that to topic of, in? jump do year. course to continues and we'll suspect, be hot at to us, Sam, a I for of

Yes. We Michael, performance share note listed stand, not But global listed things very is a there XX in at the the ago. disconnect. it's in or price months last terms to definitely, barely again, important of beginning of we downturn where economic that a side. forget, Look,

course, most like to again, after can is, our margin reverse eye what do, tackle time. we expanding The can keep important how us showing do, problems, there at how can be grow, the quarter after growing, quarter, we in of what part time, public at and keep would quarter point kind quarter. markets the for Now our in they this can of some same

control ourselves we have get organically down or the cetera, bring to is us need cetera. to double-digit, things we keep energy help created that basically among strategy there diversify et to or maintained growing we our to et The need other in costs

to So, doing the keep quarter quarter. after most these things important is

investors get a best is is now after the to This monthly there way. mean us of on And force of kind float. quarterly to is even the out able of board our of on this time over just basically front ourselves the weekly be of course, a sometimes to on in time. get reiterating time basis, will the part size This that way. on we That's strategy like of of the coal kind brute be the the way right like message second why I kind basis. increase is have there a basis, communications.

remains Michael, valuation proper an flow the an remains realizing Remember inhibitor. of The the float like size kind inhibitor to potential. of

opportunities. the done? Can evaluate Can we else offering? and table the do Rema options of strategic said time of that? will Now strategic we Can the this? then do can its company I those be mean, do. this? having we it forward. do evaluate things mean we right buyback we secondary what I thing say we Can if this, that worth we and do are that? curiosity, It's and to Board Can put we some all feel can we at appropriate

to minority exits as Do interest also capital have into increase a acquisitions while you maybe manage trying at that any recycle you valuation the way attract certain have the capital to which in. to capital to at comes four

are on but Look, And the we options -- the lease the -- no all evaluate on it it table but at things, same are to options time. the continue is table, we no these happen look and it move At those will plan appropriate. have but of the with is when time, time the things, options. definitely at as any at to we

you. Thank

ahead. line RBC. Your of go Lee with next from question comes the Bora Please

for Good morning. on Jon Atkin. Bora It's Lee

you terms you if and digestion that how side. might there? What for be you're seeing my of and and build-out Can when deployment just America. opportunities in remind still touching that activity from questions they're two oil us I'm meaningful secondly, curious inflect? time? think fiber you going in are period viewing through carrier Nigeria how the then grow And So, could over that on post Latin

Bora, so still Hi, rural activity terms Nigeria, in so around. of is

not is do volumes activity, we're huge rural and but of certainly can continuing what engaged in needed. are what to we We

in So, if on And well Green, depend just as we've the project Nigeria will as overall IHS. really smaller huge picture outsized mentioned is for like, beneficial as think capital diverting, desires for a we're our times, few a Project that the into part own you we which I XXXX. in of country say would carry as as well

what that's We're really infrastructure Nigeria. connect master the driving of sure extending So to we Fiber the fiber where services on customers for effectively that. entity, we are our our to the call continues piece is in already towers. that out last roll the own the opportunity kind continuing towers, which

represents X.X% I across fiber our to entire So idea, like of just you give revenue. that the group mean, But does continue. something an

So is I-Systems Nigeria and business that our combined. Brazilian

opportunity long there still IHS would part from stemming it So, a we within say fiber an do feel of short, remains like small back and for part I over reasonably our the right the of is medium, business. numbers term. strategically,

We fiber on key successful to connectivity XG. on but the backhaul, think particularly is do even XG,

starting our the that XX of that. would free And XX, little and in part up over of certainly so in being say a over then up carve-up terms I say So bit. carrier the LatAm, you're activity, months OE to term. would distracted -- carriers is the of I thinking with starting last to right free longer the absolutely

towers course through you in it's see side. XXXX. think tell but I We've you ramping the reasonably I build accelerated modest built with quarter can the our on can QX. already in of a off started up new of number activity X,

of we to through so, see And ramp the year. expect course the that continue to

Cridge from Barclays. comes Your the go final Stella question with of ahead. line Please

any they just last since is to of do for might of question had you could valuation, providing earlier, any decisions like some And take QX just to I call, the IHS said really And updates also wanted that what was commented call. And actual last terms I upstream Africa, I if FX so wants be helpful. mobile which at et the address I role a the have sense more ask But would in in Nigeria? IHS That'd solutions? energy and of there's you terms in the hear follow-up rate to operators what I'm crisis. that to about the the cetera. be ask role great on of If South in there? you know Thanks. wondered you had about how know this look of

I'll one. first take Steve the the can second, take

me the with Let start one. second

don't I moment or past XXX that site, of of Power no with cause disagrees world the most moment? the who XX power where our In XX years, country basically, Solutions purchase one for the the even Nigeria so a fact XX% million is connection, a done can or people, whole is one at we've experienced in that. experience the think good have in in the that at more run the the with experience

Now, New Stock the Exchange. at stock, the in the on moment we are York York listed New

our an have equity tell we and to We are core. story at

technical And we the at basically we to partners, country. our do actually form. whatever Our in sadly become mainly use expertise, Africa it because in we be we used of of to that help, going use clients, clients. partners. help we is ordeal our to whether however, consult, to whether is service, in the South happening it's our Whether decision overcome to kind this We the like the is whether our it want critical it provide want partners services,

answer. on pretty one, second just then short, And the sharp

at million. [ph] rates rate disclosed $X We year. end the haven't the Historically, disclosed our each of of we

So, far. it we so done haven't

Okay.

Okay. on upstreamed of pick funds And QX, to expect I'll other Nigeria terms well? from in countries both. was QX as there some

Yes, they were.

well. haven't there upstreams details, We as actually from disclosed other yes, but the were countries

you of good you That address please team the brings us to The your First Should Quarter the for day. Limited a participation Results IHS have Relations Earnings And Team, thank email Investor Holding any contact XXXX the investorrelations@ihstowers.com. Management Call. today. end you the wish via questions,

disconnect. now may You