IHS Holdings Reports Profit and Growth

IHS Holding Limited (IHS) has announced robust financial results for both the fourth quarter and the full year of 2023, surpassing or meeting expectations in key metrics such as revenue, adjusted EBITDA, and adjusted levered free cash flow (ALFCF).

Despite the significant devaluation of the Nigerian naira, which has negatively affected the company’s performance, these achievements are noteworthy.

The company has emphasized its commitment to organic growth, particularly in Brazil, along with its initiatives to enhance operational efficiency and reduce capital expenditures. Furthermore, IHS Towers is exploring strategic options to enhance shareholder value.

Key Highlights

– IHS Towers achieved an 8% increase in revenue, a 10% increase in adjusted EBITDA, and a 19% increase in ALFCF in 2023.

– The company added 1,041 colocations and 4,929 lease amendments, with significant growth in Brazil.

– A contract extension and the addition of 3,950 new tenancies with Airtel in Nigeria were announced.

– The devaluation of the Nigerian naira, by 246% since January 2023, presents financial challenges.

– IHS Towers is focused on cash generation, reducing capital expenditures, and leveraging AI technology.

– Strategic alternatives are being evaluated to unlock shareholder value.

The Nigerian market, heavily reliant on mobile phones, is viewed as having strong growth potential. Revenue in Nigeria declined by 10% year-over-year to $321 million in Q4 2023, primarily due to naira devaluation. However, the Latin America segment saw a 24% revenue increase, with substantial infrastructure investments in the region.

Company Outlook

– IHS Towers expects revenue for 2024 to be between $1.7 billion and $1.73 billion, with adjusted EBITDA between $935 million and $955 million.

– Focus on enhancing returns and reducing reliance on diesel power is central to the company’s strategy.

– The company remains committed to supporting key customers like MTN Nigeria during economic challenges.

Bearish Highlights

– The ongoing devaluation of the Nigerian naira continues to impact the company’s financial performance.

– Revenue in Nigeria declined by 10% year-over-year in Q4 2023.

– The Sub-Saharan Africa segment also experienced a 6.3% revenue decrease.

Bullish Highlights

– Strong growth prospects are seen in the Latin America business, with significant investments in Brazil.

– Improved returns on invested capital were reported by IHS Towers.

– The company is optimistic about its business strength and growth potential in Nigeria and Latin America.


– IHS noted the potential impact of a further 10% devaluation in the naira, which could result in a $40-45 million revenue impact and a $20-25 million adjusted EBITDA impact.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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