IHS Towers reported profit and revenue growth for the first quarter of 2022 (ending March 31), stating confidence to aim toward the higher end of its 2022 earnings guidance.
Revenue surged 23.4% from $US361 million to US$446 million in Q1 2022. Adjusted EBITDA grew 13.9% from US$215 million to US$244 million. The company reported a US$16.9 million profit for the quarter, improving on the US$29 million loss in the same period last year.
In a statement, IHS Towers chairman and CEO Sam Darwish said on the back of a “stronger” quarter the company is now “tracking towards the higher end of our initial 2022 revenue and adjusted EBITDA guidance”, which will not include the contribution from its acquisition and leaseback agreement with MTN in South Africa.
In its full-year 2022 outlook, the company is aiming for year-on-year (YoY) organic revenue growth of 15% which will be up to US$1.89 billion, and adjusted EBITDA is targeted around $US1 billion.
The MTN deal is expected to “close imminently”, it was announced in November 2021 and will add around 5,700 towers, taking the total base to 39,000 across 11 countries. This IHS claimed, will make it the third-largest independent tower company globally.
Nigeria is the firm’s highest revenue driver with takings reaching $320 million up from US$261 million year-on-year, while adjusted EBITDA grew 12.8% to US$203 million.
Sub-Saharan Africa as a whole saw flat revenue growth of 3% to US$85 million, and adjusted EBIDTA grew at the same rate to $US47 million.