IHS Holding Ltd. Q1 FY2024 earnings call

• Strategic Review: Ongoing to maximize asset value, focusing on increasing operating profitability, reviewing market portfolio for disposals to raise $500M - $1B over 12 months, and capital allocation to reduce debt and consider share buybacks/dividends.
• Governance: Settled with Wendel, Board recommends shareholder approval of changes at upcoming AGM to align governance with mature US-listed companies.
• Commercial Updates: Renewed master lease with MTN Zambia for 10 years, extended MLA with MTN South Africa by 2 years, constructive discussions with MTN Nigeria.
• Balance Sheet: Actively pursuing initiatives to extend maturities, manage interest expense, shift debt to local currency; signed $270M term loan, liquidity at $693M at quarter end.
• Nigeria Macro: CBN cleared FX backlog, interest rate hike, naira strengthened, FX reserves increased.
• Segment Highlights: Nigeria organic growth ~46%, Sub-Saharan Africa revenue up 7.5%, Latam impacted by Oi's restructuring, MENA strong growth.

The Nigeria segment grew approximately 46% including a large benefit from FX resets. In the Sub-Saharan African segment, towers and tenants increased by 1.4% and 2.9% respectively versus Q1 2023, revenue increased by 7.5% with organic revenue growing 15% driven primarily by escalations and FX resets. The Latam segment saw towers and tenants grow by 11% and 6.4% respectively versus Q1 2023, with revenue increasing by 4.7% but impacted by the Brazilian telecom operator Oi's restructuring plan. The MENA segment had towers and tenants grow by 8.7% and 9.1% respectively, while revenue increased by 12% including a 6% organic revenue growth driven primarily by new sites and escalations.

• Maintaining 2024 guidance including FX assumptions.
• Expect Q2 2024 financial results to notably improve due to FX resets.
• Absorbed $12M impact from Oi's restructuring into guidance.
• CapEx decreased 65% in Q1 2024, focusing on cash generation and strategic projects.

• Currency fluctuations impacting financial performance.
• Impact of carrier CapEx decisions on business operations.
• Uncertainties in macroeconomic conditions affecting market valuation.

Q: Richard Sheppard asked about 4G/5G transition in Nigeria and oil churn.

A: Sam Darwish said carriers in Nigeria are focused on weathering devaluation and may slow 5G rollout; Steve Howden added $12M Oi impact continues but moderates next year.

Q: Michael Rollins inquired about churn and strategic review.

A: Sam Darwish stated no new churn trends; Sam Darwish also mentioned strategic review ongoing, believing IHS is undervalued by public markets.

Q: Jonathan Atkin asked about capital allocation and EBITDA margins.

A: Steve Howden talked about capital allocation changes focusing on Brazil, and EBITDA margin step-up in Q2 due to contract resets.

Q: David Lopez asked about leverage and MTN CapEx.

A: Sam Darwish said MTN CapEx pullback is baked into guidance, leverage range 3 - 4x, working on shareholder returns.

Q: Stella Cridge asked about Sub-Saharan contracts and costs.

A: Sam Darwish said Zambia renewal is normal, Rwanda contract progressing, unallocated costs reduced and expected to stay lower.