IHS Holding Limited (IHS) 12 Mar 242023 Q4 Earnings call transcript

Good day, and welcome to the IHS Holding Limited 4Q and Full Year Earnings Results Conference Call. 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.

operator. you, Thank everyone to the today. call Thanks for also joining Communications IHS. I'm Colby at of EVP Synesael, here today Sam me Howden, With are our and and CFO. Steve CEO; Darwish, our Chairman for annual This a filed SEC, related and presentation. Relations which found and XX, report section the be the full also earnings the on XXXX, morning, release with year our issued Form on we can of December ended website XX-F Investor our the New are comprises which on These group's consolidated is ticker the IHS results the the which Stock Ltd, Holding York symbol the of of operations. and under Exchange listed IHS entirety

our reconciliation EBITDA Before read the nature, be with in predict disclaimers view today results, website. Darwish, of known of like results, release the is set We'll call would be full, that, well cautionary the in we section Commission the X, forward-looking the forward-looking to metrics we the the refer as Exchange our today. at attention unknown To such the or control important Slide Chairman business. beginning along achievements And contain our factors of set are earnings forward-looking Securities earnings results achievements or in by we with statements, some are I'd important implied involve materially industry may those which filings may results from as to non-IFRS be cause CEO. like results, performance of Relations filed and in ALFCF different our which uncertainties as assessing discuss industry to regarding to including out non-IFRS in out the in the statement to the measures, and other which, presentation the section be also draw statements or IFRS filed to to should I risks our difficult XX-F and Risk beyond future that of our our or performance our including with found other discussed and on factors, other and their SEC. your Investor any actual which and business by or Sam adjusted to available and performance of important expressed in of that on discussed can nearest metrics turn the A Form XX-F view our statements liquidity Factors that assessing presentation, with over and which

quarter call. began our with in below welcome, Despite EBITDA our expectations. quarter a expectations. reporting everyone, was strong performance in currency Nigerian Colby, our while We're earnings June, devaluation Thanks, that to of key fourth across of or ahead results CapEx and and year-end meaningful metrics line meaningfully ALSCF and XXXX the adjusted revenue,

our secular strong including build-to-suit targeted lease the continued growth are seeing Our fiber results across sites or new in amendments, reflect business, and we trends tenants, rollout. new

X,XXX new XXX as in Organic reduction reporting growth, Brazil lease we XX%. growth built Group-wide, expectations and amendments X,XXX added growth XXXX X,XXX EBITDA revenue adjusted sites, we X% was in XX% we growth, For mostly an our and whole, ALFCF X% in having new a the colocations and surpassed towers, with XX% for country. CapEx. are

announced movement asset we Airtel that as From trends. have XXXX base secular unfavorable growth strong market. The suffered Nigeria levels XXXX a by these front devalue of a add This XXXX in government seen challenging rates, fundamental as removing much date, XX% result January extended movement. which December this contain further loaded me in actions tenancies movement. much with January continue continues XXXX, a prioritize to trends in years, came of a multiple XXXX since petrol that XXX% important growing to and to to from evidenced of a to to trying a positively against included to are exchange new and the viewed means we And it inflation, unifying over Naira X an at the strong X,XXX Naira January the unfavorable which organically of to 'XX. our of deal the offsetting movement trends point. and strong XX% unfavorable XXXX. of continue subsidies contract As [indiscernible] recently December backdrop. should XXXX, takes hit in Most These are next Airtel XX.X% These occurring sadly commitment total negative that to our expensive

by Naira devaluation. positively viewed supporting to generally other measures us, were are actions required these market observers and the While contain

Some hiked currency the required This Nigerian needed adding Committee points by to rate began Policy to occur and changes of in main the the over the recently are Monetary much market. basis as stabilize these has interest weeks. ForEx past XXX daily helped few policy QX the

in the market. ForEx QX in contracts our year 'XX in this XXXX expect strengthening observers aim us Some Market inflation monetary committee are of interest revenue our others, end stabilize a mechanisms further further helps this lower the Naira From throughout analysts, year. they by including ForEx the main pressure offset protection of and as the to increase results. and Sachs, XXXX the a to was Goldman even policy the results majority perspective, predicting evident policy among rate

impact the results that further expect January our in to began additional we However, XXXX. in devaluation

have ForEx for the While resets. revenue Naira whereas even when rate guidance some after assumes XXXX $XXX our Steve discusses impact average devaluation was XXXX to XXX a will an you average on rate X,XXX, that of the context, negative year-on-year adjusting he NGN for further impact discuss in and of the this million in give will guidance the

Nigeria, represented is to to macro we're operating balanced environment and a of QX revenue believe 'XX, in, cash in approach particularly in growth which the more take Given XX% continue generation. what we we

something and with utilize, commercial in it's maintain our this Excitingly, I'm X. personally on continued extensive some has the improve passionate an on of dedicated use also expect how that reduction in enhancements amounts using efficiencies over while the the CapEx decades. on a we along highlights. cost data innovation, discuss our including improving We to focus developing increased help we and to operations of key working reductions. team our very second cases efficiencies of to A XXXX, and significant includes due upgrade the usage us deepening XXXX our massive of spearheading. operating AI Starting also a for in started focus Slide progress. can and about that to have through towers productivity with want Skipping and I been half continue

billion revenue under had an with $XX As X.X contract years. tenant term average remaining of we of year-end of XXXX,

it's despite durability think as be. they important the in point inherent business I model to to the believe may perception our what highlight metrics these we

to a we economic highlighted constructively of key find network in on to with also in contract continue this We operating them results in in to on of ways alleviate in earlier signed progress mentioned, Nigeria for Cote MTN Airtel their years to the as the in by an role Airtel to d'Ivoire appropriate is we decade running into engage previously agreement turn In next under, the X,XXX next the majority for maintaining extended X. while with MTN a past Cameron front XX their most continue Nigeria, front-loaded recent this earnings commercial across the the X make that next pressure ourselves. contracts Also, some add as and signed commitment with the years. announcement as business an country have February, further our given includes we are month, Nigeria tenancies the taking new over over and they the

of proposed settlement in shareholder commitment corporate are excited dispute, a made to the Association We and amendments aware agreement January with here. be [indiscernible] constructive we governance text partnership. mutually strong The liquidity, to relation the about very to Articles will stock governance public a reflecting this available before engagement. In of Shifting next you the progress. AGM. more beneficial year, announced this progress which the the of to are potential On of, to shareholders of

on lockups shareholders. IPO the removed have We all

approximately improvement almost estimate our float This our is May which now We just volume, is higher shareholders to daily the average in the was of than what evident XXXX. also time are of Xx post-IPO shares by in shares, XXX,XXX now X% trading IPO, size. at XXX% almost in also XX% owned compared and it

update to continued we of on shares now provide quarter, X-year like buyback Green. a Project total past shares to the under I'd with program an million $XX buy the X quarters. During our bought worth of over

by our $XX project $XX target, spent $XXX million million guidance our of versus For and on savings ALFCF of of $XX million million to can XXXX, million. of -- as you versus see guidance remains a the guidance achieved we $XXX approximately Overall, results. CapEx

provide map on Project we we carbon quarter. be and road having is expect will which Green next impact our report, comprehensive more We our update publish a when to reduction annual sustainability the

on our Moving balance to sheet.

We ways various such. focus to also to with our do and and increase execute cash liquidity comfortable continue our continue on but to to position, continue feel evaluate generation

available including our undrawn As of our year-end, liquidity, remaining RCF the and $XXX loan. had of undrawn we million term of group group portion

in currency, in was June. by dollar announced evident we extended OpCo was proceeds initiatives local this we pursue had currency group impacted the maturity U.S. will local our at to Cote XXXX. into debt holding in the devaluation million RCF The and refinance equivalent more as to previously X.Xx, level. expense. continue and previously at our d'Ivoire. extend and year the million November, in We facility manage October local shift $XXX ended Leverage as company XXX we Also, actively This interest Naira obligations recent of maturities loan of commented, the to --

underlying return, Africa's the to adequate the And Naira to leverage undervalued headwinds in make the Xx his believe have Nigeria, will target following shareholder global position, in our and the given expect is further our markets. cover liquidity perceived remain in but continue I in believe like on further increase section. within to plays currency the we an to devaluation, XXXX, expect to our given equity which Despite strength of and business Xx additional Steve in statement. would finally, We

For but and and despite the underlying And Nigeria our it's very strong. in Nigeria put of XXXX, population in XXX total XXX into the a our To the the the ago, energetic and of towers and added thus, Brazil our more population million business that's That's one adaptability has of the higher cycles, EBITDA $XXX depend through transport in U.K., value a majority than When on population the people example, a with years or one poor massive through and in perspective, X young ForEx country and still the a markets. moved It that poor in phone almost adjusted headwinds. believe fiber age million is will I the with has why phone in also roads, growth than education. almost networks and lines, no also important had size an XX a million Today, of we mobile LATAM we France the growth long-term approximately the and millions moved usage America by X.X Colorado important Nigeria. year. people Today, mobile or to number land tighten especially trend key of largest irreversible growing alone. Nigeria loosen new have significantly -- growth in sky. with to more food passed year. towers XXX younger to million or developed we XXXX in prospects X.X% people. Germany, of growth has we aging a EBITDA their year. it usage business XX in also conditions as is had during in approximately homes X the infrastructure, their generated -- are of customers Hundreds of showing Latin base. compared year, to is X,XXX water is become Macro the COVID of the than for way sector. every The as value life. When in underestimated, The almost aspect as mobile Nigeria's million people

is then of as phones across growing. XX reasons to markets We covering Sub-Saharan believe our a at the South and basic need almost life. Towers have we at growing. XX,XXX Africa of their Africa own these IHS ways is every and -- IHS for shareholders. current is its that It our and aspect connectivity domain. sits approximately heart such that is of valuation XXX underappreciated unlocking consider operate we leader million enabling for value of we for have towers who And their people

our advisers, the intended portfolio including alternatives This priorities. business of across best for allocation evaluate guidance to the our and exercise Board of to with our under Directors, the So work capital our commenced value investors. we strategic have generate JPMorgan for is

an appropriate, as that, turn call provide will with action. over on potential the update will Steve. I We to this including any And

Thanks, hello, and Sam, everyone.

to Turning Slide X.

On As we've were in 'XX the to FY show XXXX seen macro fourth posting a such against modestly, tenants a its respectively, to line devaluation increased than FX the XXXX. not early in declined shown clearly see towers year-over-year, in naira in it's metrics continue expected The and or Nigeria X% by by 'XX but lease resilience and On basis adjusted has business increased better X, to revenue up throughout Sam our part the and in results, in pleased impacted XXXX. both mentioned, while good we're amendments Slide 'XX, results significant the and quarter, reported X%, in Nigeria quarter headwinds as in in and backdrop EBITDA percentage. challenging of FY are double-digit by immune year. the

by XX%. in EBITDA QX, increased revenue X.X%, Specifically, adjusted by ALSCF but while X.X%, increased declined

grew all on our by and by a reported basis. EBITDA year, full the by revenue adjusted XX% For XX%, X%, ALFCF

ratio in the sites target Our and for devaluation, our our by resets, of offset LATAM, still colocation lower to the fourth the following increase full largely CapEx decreased discuss capital for Nigeria escalations level I'll shortly. primarily consolidated XXXX. CPI range. finally, X.X% Power-related revenue by driven to SSA new contributed an growth net Naira new partially albeit components our and reported for XX.X% year, And within in investment our segments, for growth X.Xx revenue of year Slide Xx and to new to shows consolidated XX% year by XX our which organic revenue, due quarter of XXXX. in fiber, was expenditure the all increased leverage FX lease the and Xx growth Organic of amendments. also X.X% the

our are primarily the FX the year of growth organic XXXX driven growth year growth, On for you segments can including right, XX% impact large was immaterial for each beyond the MTNSA a delivering the full SPX did XXXX, we most Africa of and by from and benefit the Nigeria acquisition. in the resets. given the Brazil in in stages Kuwait XX-month acquisitions recent GTS fifth will the and of and X.X%, FY see sixth of of Inorganic organic rates acquisitions XXXX. growth we South be Inorganic with the now anniversary meaningful

the devaluation into continued quarter. million fourth In power-related segment right XX, year growth revenue and the large XX% dollar our the shows as headwind consolidated FX the to you Slide revenue, fourth in our FX versus the growth a rates the quarter adjusted of revenue the trends FX 'XX reflects the Naira the EBITDA drove after Naira included decline, assumed revenue, by The the amendments. a secular generated our end FX of devalued well $XXX XX%, where of organic contributed resets resets at including of strong original growth a decline. grew the the versus year, to $XX the each quarter. strong full full rates XX% the adjusted Fiber headwind in of new in of that and were impact segments million EBITDA reported reported IHS driven and $XXX QX also from CPI including the from Turning decline quarter quarter quarter revenue, 'XX. reset sites quarter primarily X.X% turned see a last $XX consolidated organic new XX.X% for growth revenue in Naira escalations escalators guidance. the organic Yet On was Fourth new of quarter growth June when devaluation, resets. Nigeria business. lease our to a fourth that approximately a impact 'XX organic devaluation FX CPI prior organic FX and again million growth colocation side The our contribution and reflects margins from while assumptions as all our and X.X% can 'XX,

of again, and increase, XXXX, was XX%. X% equating million year the inorganic partially the delivered $XX also we acquisitions previously compared an million, Aggregate increased billion while full to revenue, reflecting by organic Nonrecurring $XX comparisons. items For the before almost revenue over $XX up year revenue distort $X.X X.X%, this year million discussed. made to

adjusted and fourth And from year. in XXX QX adjusted 'XX, points up XX.X%, the approximately adjusted million EBITDA EBITDA EBITDA Regarding by adjusted versus basis 'XX. EBITDA of margin margins $XXX quarter X% prior was increased

the the For adjusted basis was impacted margin XX.X%, was and the by power from and XX increase we've X.X% changes whilst adjusted EBITDA impacts. but adjusted versus The in already year EBITDA adjusted EBITDA positively primarily in impacted revenue XXXX. increase $X.X EBITDA billion, year-on-year reflects a the costs, year, by discussed, full prior was year, full FX-related negatively up margin cost reducing base points

partially generated lease highlighted Green, QX As to our year's versus alternative or payments XX.X% increased ALFCF QX primarily to the through interest reduction cash diesel. XX% Slide Project offset On prior previously cash in made CapEx, net by sources maintenance In a ALFCF. million, reduce flow on due continue a review in to in rate levered adjusted free 'XX, quarter. withholding and of of increase versus increase XX.X% to conversion rent we paid. tax, our the and we ALFCF power $XXX 'XX, XX, we dependency prioritize first

Onetime from up we year, million, For conversion versus year comparison. and impacted 'XX, the 'XX. increase ALFCF rate a in each FY full XX.X% ALFCF XX.X% in $XXX XX.X%, of items that generated FY was our

we've a already ALFCF year-on-year due well growth in to underlying in maintenance reduction as increase discussed primarily as the CapEx. business is However,

in to of to that FY allocation part total CapEx. come for which and the LATAM full more to 'XX was related lower to FY our to like In capital million, Turning was Nigeria a site by year at was returns one to growth In related of new started than reasons builds. was we of decreased decreased year-on-year. when in CapEx guidance, shortly. looks the guidance CapEx XX.X% FY related QX million CapEx but $XXX decrease X.X% our the SSA our the The back XX% XXXX to 'XX, year. million and 'XX our year pull we lower In $XXX year-on-year to to offset CapEx of refurbishment, CapEx focus in 'XX, in capital this higher $XXX driving XX $XXX a CapEx markets capital which due full year, certain of on CapEx latter return million site CapEx spend million primarily new Nigeria, total Slide and was 'XX returns and continue of $XXX in allocation. versus X.X% on invested prior delivered the we

the XXXX Africa things, completed ROIC Our in from contribution acquisitions year the cash reflects, amongst growth full MTN first XXXX. GTS SPX flow, and South improved other in

also years portion by initiatives. are largely in augmentation first leading allocation, million sites, in when other was Naira have or fiber numerous CapEx, capital a Green, site significant towards in discretionary of and maintenance Project devaluation.Interms million transactions $XXX our new new see CapEx the $XXX was repurchase The we new and August CapEx, of lease allocated impact course, our nondiscretionary rollout, spent we or that in 'XX of for a and The followed discretionary share million Brazil, CapEx spend on program was on and you year not related but sites, excluded $XX to that amendments can builder we the of FY that new deployed authorized excluding capital cost-saving XXXX. M&A of where colocation sites

on unify Slide and macro the in was May, to Turning contact XX, petrol last remains complex. in at however, to with vendors swift the on additional meaningfully and position then not showing through exchange banking raised reserves our continue remain have Nigeria to XX.XX% XXXX $XX.X $XX.X actions The business. in have the see results by had the Naira, by which Nigerian environment, Meanwhile, oil to billion a subsidy. FX And FX walk you but in January from we're close decreased best XXX our Nigeria will our action the the by is government, interest in and while pressures. the We taken multiple to steps to our segment rates new we decreased President our XXXX IHS. these the price review to it first obviously and saw When still in taken new regulators, encouraged curb the of key both today, impact end Gasoil negative the guidance. in XXXX. recently, billion basis More customers, of local Nigerian ICE move Committee Policy designed Monetary and points inflationary recently. rates sworn partners

Gasoil QX it down ICE of in was per tonne at Looking that's $XXX $XXX in per 'XX, QX tonne of from and 'XX.

full year to real December to bringing average the it this to December jumped bringing the the XX.X% Moving 'XX past quarter, X.X% expanded to X.X%. rate Inflation year full rate XX.X%. in by growth CPI growth, XX.X% XXXX XXXX, in versus GDP

on Organic FX due the escalations. quarter basis, by Nigeria impact For XX.X% the XX% organically. IHS, in million devaluation the to resets was devaluation. or million increased revenue negative QX decreased FX 'XX reflecting growth year-on-year that $XXX $XXX of The driven primarily a in reported XX% and was

which continue no to reflect in XXXX the and Our respectively, tower that with decommissioning impact versus revenue. and X.X%, count 'XX, QX planned tenant occurred X.X% decreased QX on

equipment to consequently primarily in diesel EBITDA particularly basis upgrades. rate in In QX 'XX was and our reflecting was X% from $XXX segment reduction continue from to points year-on-year savings. improved X.XXx, up XXX margin EBITDA up XX.X%, strong a adjusted amendments million, coming to while from ago, mostly X.X%, by on increased segment, versus by which which X.X%, respectively, resets. revenue FX Sub-Saharan X.X%, X.X% EBITDA primarily XXXX revenue and driven generation by reflects XX.X% costs, and to and QX a and adjusted decrease offset fees QX a additional 'XX, as organic a diesel increased Nigeria result sales, our costs. lease be segment to cost in of year EBITDA tenants of increase Towers growth, cost primarily revenue. in a sales, customers adjusted XG by an from increase in driver permit of grew sites, XX.X% our adjusted the as X.XXx increasing margin Segment colocation power added decreased decreased escalations of by in XX%, XX.X% partially higher of Our 'XX, African Segment QX

to did ongoing We previous monitor versus environment which by South in continue macro shedding load power the particularly Africa, national quarter. the the the moderate utility,

MENA, conditions QX We that to driven also Revenue Slide XX%, segment, XX, escalations. X.X% respectively, highlight a driven tenants continue to primarily by increase XX%, service sales. revenue by In KPIs. X.X% and adjusted revenue I'll LATAM evaluate EBITDA marginally and grew X.X%, versus managed was segment decrease and our organic XX%, which briefly offerings. of increased grew grew by growth a an and XX.X%. new power and respectively, our XX%, Towers XXXX. of largest in On adjusted 'XX. new Segment Segment rates In to our escalations growth QX the result 'XX The sites. in came mainly revenue QX EBITDA of and those revenue Brazil, by In EBITDA primarily of positive interest FX towers, as cost with margin increase basis largely adjusted increased by sites towers versus growth, increased second nearly flat. XXX down tenants organic XX%, our as to adjusted leading fiber rates by point a stayed by relatively segment market including inflation X% macro and by margin, and increased were a while and strengthened, XX.X% X.X%, EBITDA X,XXX

tower our XX, driven LATAM primarily XXXX, up December count was XX,XXX from ongoing and some of new Nigeria. end in sites the of As X.X% in by

now slightly the the X.XXx, almost lease on continue collectively, As significant our of in top and our exceeding year, versus seeing. than last year, to more during increased rate year-on-year. growth, XG X,XXX co-location we be a built historic of tenants of given increasing activity by grew particularly a amendments Nigerian factor we X,XXX. chart amendments X% are XG the and guidance Total our right, the towers Lease approximately up with you segment, in can see XX%

million. XX. Of $X.XX profile Moving XX we the on debt bond and That swap dollar currency has and XXXX, other been million structure. expense, to items. at $X.X add manage loan includes represent the Limited extend December billion billion Slide our liabilities. rate billion interest and IFRS drawn bullet our into various down financings external Holding at term debt, possible had approximately related to IHS undertaken $XXX our We debt XX, to initiatives We've $XXX capital X-year sheet level. balance maturities, from of local look of where lease indebtedness obligations and $X.X At flexibility

availability extended all to million maturity held balance the In Most March a from of RCF signed by undrawn. group capacity reduced commitments which essentially 'XX October to the December of we've undrawn refinance to bilateral million As $XXX d'Ivoire equivalent XXXX. of $XXX credit. have as exposure million $XX down credit these the to this reduce obligations, $XXX letters a previously million the released $XXX collateral of the cash in result points against of maturity XXX basis Nigeria. XXXX, market available mentioned, another March undrawn by this in earlier pushing to This letters $XXX million the and Cote recently, interest in we continues that November, We've $XXX expense this equivalent approximately loan will our and approximately October, and loan by a million loan is of USD the of these term extend extended we period matures reduced into XXXX. available the term month undrawn under million in with commitments April

average our to to flexibility. As FX versus actions Consequently, an will in of second XXX upstreamed in are consolidated financial derisks since expect at XXXX, end held at Naira XX% determined in the consolidated or the taken where decreased rate at we of And in equivalents to moreover, net pleased dollar which from is business. at was availability sheet it the And had caution X.Xx, the and 'XX, the and million moving quarter, net you in positively, our year-on-year. despite we've million increase increased Naira be was cash we sustained. $XXX approximately a we completed rate a initiatives, an USD 'XX.More can million further to held, these do XX. approximately increase but leverage a fourth we XXXX an shortages government balance leverage Cash light our if have in of of to and million from of December continued increase imagine, cash terms at we $XX alone quarters. USD of Naira $XXX coming approximately $XXX devaluation, Nigeria total the Nigeria in all ratio Nigeria January half such X.Xx In remains over elements, up the the XXXX, do turnover daily of seen billion, these $X.X of be debt approximately that

Xx ratio. Xx net remain are our leverage metrics within target to However, to debt our expected

accounted a in of in $XXX $XXX to of to to a revenue few our adjusted compared ALFCF, to adjusted million moving expected in of is as pass-through on historically, more and result amount introducing a of but XXXX and power or we've of in an revenue. methodology Naira in adjusting the this A revenue million I'll South after in entirely of disclosures, size Slide revenue impact Sam impact business in million recognize Now cost. EBITDA This, than guidance net is the transaction FX $XXX we of the range rates change the expected power reduction as revenue an excluding revenue and closes to pass-through will result and while #X, $XXX of assumes end in rather recognized EBITDA at speak the guidance includes we expected $X.XX we're given an however, towers, signed million. million Africa, our for the #X, ALFCF will SBA, And accounting financials that CapEx small range points agreement as to have billion, on and South lastly, have XXXX. total I'd the about resets. the in no the million. change the mentioned, of XXXX the to power $XXX power revenue XX headwind to in range as QX the year-on-year our approximate business to year-on-year devaluation of range be XX, to gross that like you for how likely which may million that to seen costs going $XXX of guidance moment, $X.X FX here. million equal Peru $XXX forward be our have billion includes an in make power $XXX gross immaterial Africa, reduction sell

approximately including as to while build is remaining cash a approximately the goal our XXX significantly include come includes double-digit CapEx year-on-year Green growth, the down You'll upholding still on portion generation that see million. towers, approximately to XXXX. we Brazil. also does This maintain expected turning Slide we of Then revenue which year, on Project for expect focus page the increase for XX% XX. small organic in XXX in $XX to Then

QX XXXX guidance of the X,XXX then year left, finally, average financials. used devaluation in financial for you of includes the And which based theoretical we and the in based in full we're the our estimated average year, on the XX% whereas QX see by of And The have Naira on X,XXX right-hand provide bottom our in would XX, rate XXXX through to split. the impact Slide year, X,XXX shows side, of February annual Naira actual on dollar, in breakout revenue QX XXXX. On of reporting on in provide revenue can contract for on the guidance. slide FX currency assuming we the on the assumptions the

XXXX. guidance our X,XXX full average X,XXX getting year, While by to XXXX the with the for naira the already assumes rate an dollar Naira annual to December

and the XXXX assumed approximate devaluation provide using a middle to million Here, $XX in rate revenue $XX impact of we've be the adjusted XX-month to a to run the our $XX impact impact million shown of XX% would million expectations. respectively, the page, $XX what including beyond we've The of and in EBITDA, figures what the sense the million guidance.

formal brings and could the occur please occur devaluation the when today. vast page to the of most an thank presentation. at the impact devaluation to of devaluation lag And quarterly. assuming in between actually resets kick right-hand the the open our questions. us the the that see the your reminder, was now excludes However, on quarter. to our FX impact $XX line maximum our middle quarter, you could the in beginning of of side, million are the resets would of approximate a we start the for end This illustration And time as incremental you'll And for the This the next quarter. majority that now the operator, represents as occurs,

[Operator Instructions].

Elias the Our Michael from first Cowen. of TD comes from question line

A a off, And perhaps makes of follow-up specifically, time color these intended alternatives? curious, parts the I And of valuation intention that, mean saw in sense to just alternatives? right we I I To start or the if you for consider these the not is relating the great. a on would business the alternatives, can give for scope after would the the of to if Naira. of may. the us question to that exploring it the have be sale few, but what devaluation I'm And business? by second, these these strategic any explore that what be alternatives alternatives now were entire the you

quarter. where numbers believe is quarter undervalued. We after you've been solid the is direct seen, Naira a numbers, is not as business, Sam. reporting of is. This reflection the and It's business The solid reporting it's

have of feel Of evaluation be. our again, credit valuation is devaluation we because value The believe within But an the have translation should our largely to that comes given strategic remit. the not necessary the IHS it will situation We where shareholders. and markets Naira impact. is manageable it course, when

a duty and unlock unturned our So no stone to the in good running matter. well basically to to solid try it duty in and our is leave business addition It is value shareholders. for

of I would commented our we communicate into doing unfortunately, Now details, together appropriate. we're and when JPMorgan work in that details. able to as with won't the included, and be advisers, We've at moment, go terms that

Great.

Just as a follow-up question.

seen how you upstream would cash Naira, describe that the to the have need With ability the in we in and volatility XXXX?

it's Michael, Steve.

was sourcing volatility a in no is XXXX. get year it. $XX challenging, down U.S. we million word XXXX early to dollars in right, terms and of So good describe out did you're therefore although upstreaming,

the date. I January, think and XXXX February March in we liquidity have from that more seen to a perspective, market,

positive. a the certainly say Nigerian cetera, devaluation, et would number is currency but rate the off of that Bank of Central So the moves by also back the that's policy, I monitary government, around increases. interest

probably We've to positive. a But in that's have we the time. period we continue -- caution XX to want this let's the or stores for in full months them call obviously, that So it see seen that of of last terms reforms. -- X

at again of outlook, a we're liquidity We have see. upstreamed. we'll see certainly be terms in this So where sitting we to then liquidity, positive dollar let's and but point want more

from question comes next Our from Choe Yong of JPMorgan. line the

should how the to business the we Latin you're to go expect seeing given of Where America And ask a business. end term, percentage year? of about growth there, big could revenue I that this of by longer wanted maybe the get? to that

Rich, it's Steve.

question. good So

to been is and thing LATAM that as at terms obviously, segment XX% growing know, has year-on-year. a overall of one think mix in sort contribution I the XX% of between

was Revenue for $X the year continues So grow to over nicely. it million. full

component of a like, So devaluation, And will developing it opposite overall smaller. an in and if is little given really mix. a direction, that Nigeria is in that Nigeria the percentage our get you fact significant of increasing becomes IHS that the by growing of it's bit becoming the

is for term. want grow element makeup of LATAM on key a that's right now. business our growing short organically set value a So to we it the obviously, it's continue okay. have target But more organically a The to and we focus with

Great. between pace. more on It and both the tower growth. And I at little pretty a growth seems color guess growing the are like a bit the mix healthy fiber

help pace. [indiscernible] Yes,

fiber know So too the we XX, the business split at discussions, towers, on is than a our fiber still business. financials from as the from but probably the perspective in in don't in you on prior less strongly. last much just XX% detail that, overall the a actually an bit growing But buried year grew disclosure out it, little there

question comes of Wells from Fargo. Our from Eric the next Luebchow line

market? any case know eventually could you think now, it's your in to on base moved on MTN I touch in sites. update how the Great. I courts tied agreement sites many up your wanted X,XXX to of to that the kind and move right get competitor but

we about remain is and been This consistent. our public we've Sam. here, view Look,

conversation because mentioned. XX another which I X, towers towers, move left no are months to of we've Nigeria, think where on that expiry, is Today, occurred a March on regovation, actually before in mean, I so the very had very, just X, with you maybe tall battle. we very, has some X,XXX XX not of like country a largely covering significant the the and or February do in work October. all things or of power, it's able an million exist that be equipment order users in uphill infrastructure, to most permit,

more I ongoing. for Discussions always ours. tall that is again, partnership order are a been very a than partner we've We So for MTN remains decades. very, mean, of us. in But X

Okay. that. EBITDA -Your appreciate XX% just year this uptick I a versus follow-up. year. margin, one nice And kind guide last of implies

So costs, lower transforming XX% could you anything you few the over through between of next walk years? seeing EBITDA and margins. How see path cost you're in terms us to of the longer-term that areas efficiencies Green then get kind Project diesel to

EBTDA the yes, so things cost right, margin. you're implies So a this the on guide side, few

where driving of in different variety taking, than finished that of some is higher the driving couple that's a action we've What's percentage of a that, So and points cost been a that's lot XXXX. we areas. that around

down operate in can been it macro we sensible cost globally, other well in less business but relooking therefore peace in be and a bits can cost part our as markets As is the driving diesel in our the we you like which then Green, intelligent at markets Nigeria. consumption within in of particular, we've has ways where more efficient, where And know the Project key where overall is structure for is been reaction where to Nigeria, and macro in mainly cost. more Nigeria,

for of us there's from around generation. now a So cash XXXX strategy as focus a lot right

in the years base. of lower the even to drive margins evident and couple lower for XXXX looking prior that also CapEx efficiency You see CapEx spend, that where in our of or we're cost embedded it's of guide, CapEx versus significantly terms in side

is is critical this artificial and like the we're Eric, whatever artificial to also And the ground. of why intelligence moment of kind proliferation intelligence at on doing

been operating feed logistics, complex maintenance, the of given this operate. of has delivery, in we've infrastructure, years, of where nature we terms lot diesel a which For challenges

we data, because us ourselves through have that And next part we the how over Now that in months. this that find seeing massive of decades, available what middle operate level of now more of are tool of like available to Suddenly, you're And the have lot guys here what created. compute, the few of going of using compute we the to we suddenly, redefining elevated kind and us is this you're now and with of all to because see availability. data that. massive we've of the big a LLM accumulated this over

Our next from comes Cridge Barclays. from Stella of the line question

about have coming significant I other all A the was MTN, Many one. which I ask could thanks you for of with up. contracts the updates. the if status wondering

amount just the mean to comments changes So open would That the the got we recently status they there? year. terms end on kind on any of or would tours you see if I then referenced from be be small and of Zambia, saying M&A the was you've leases. Rwanda to I Ivory the also looking at of were side... what Cost, great. you question, existing during related a IHS I wondered from June, in the there of update And update I note at this changes

are seen I rodeo. supported would mean negative And stand on in do. to movement almost ways is continue that's XXX% like this and I X them. everyone dusted currency we've mean, our is us to We to for toll by Cameron. and kind guys -- is announce mostly We've can moment, taking going only any fronts XX Nigeria our partners this first our happened the our are up point we We in like that MTN that a from comment to months is mean, on numbers before I just that's to we're what honest, discussions. is of And of say. Look, and been I negative pressure. help time. be ongoing pressure. currency, local they're cleared of this and MTN's at we in not what that basically things elevate are we've which them. given job why do duty d'Ivoire roughly definitely earlier, that's thing engaged particular, the don't I at moment, multiple companies. these and decades mean on this generating revenue to stood we've as we them I seen I the and and before. the feel time, at find stage alluded that client from under At announcement that say in recent most Cote announced basically has are the

colocation. also just in period, a in ones as put can Airtel smaller a to getting covering done upcoming CIB of X,XXX announcement behind I questions more in X,XXX was relation other a the appreciate we updates in which MTN. your kind an mean, And the that then tenancies follow-up. obviously, January quick Sam, just of indicate which positive what is of terms are over to Nigeria, the reiterate of I some out hopefully, on well. But And us X-year

other there's a key focus material way of within and we're as the in lot but case So continue we also progressing on forward IHS obviously, and well, well. whilst, a sure moving correctly as MTN, making that's with customers

debt. the the debt of if And moment, in terms million This it HoldCo the the the XXXX? this That's in versus in comment loans, this liquidity cash mean, on $XX I can great. terms benefit side. cash Ivory refinancing the is stock you actually at just Could included intercompany how instance. of the on the collateral, much maybe What OpCos? of in for also I of [indiscernible] of balance is at release something finally, cash structure the then balance Coast end at settlement was add

Sure.

few the balance. million the was not on Stella So in now, days December only ago that included to is collateral cash a approximate the cash $XXX bilateral XX

so about leverage additional interest. So and we those And will [indiscernible] that bring cash obligation it's said, up saving -- It's is specific that its interest additional cash, liquidity. reduce on as positive. that by

of that. reason So the was that doing

-- down Côte about many well d'Ivoire, and U.S. have spoken that I and Can the top. in levels. local spoken of utilize markets we the with back so into certainly you was some at with rotate before dollar to in currency as try I low currency the country our about that particular markets others obligation at the have obligations know On dollar we and

million So which $XXX been that shifted was equivalent, just one example of that has CIB. down into

Again, in refinanced So was before has upstreaming been and year-end and not just done then yet, d'Ivoire. of in raised we're numbers. what up end process the extinguish in we a the we've in we've was the done the capital being obligations. some it's completed, There existing completed tiny is that upstreaming Côte HoldCo money in where d'Ivoire start will -- debt of the that to the that the the was Côte process store drawdown been hasn't of year, that but signed is cash upstreaming the but

that example, market able rates to not local cheaper to get So in we slightly then dollar U.S. were that's interest And another the business. obligations. versus the upside comparative, if extremely in

the making So also again, managing maturities currency, rate we sure as sheet, but balance expense and of interest managing care take well.

[Indiscernible].

last moved Sorry, that. in hasn't quarter. It we materially the emphasize

of So sitting million and the [indiscernible] group offshore. $XXX balance a cash on profitable there's

and Relations team the Call. team Thank email us XQ you Year the IHS any address please to end brings Investor for The and a Should thank contact today the the Full wish questions, Results participation day. via management Holding good Conference you you. Earnings have That your of Limited you investorrelations@ihstowers.com.