IHS Towers Expands Market Leadership with Renewed Airtel, MTN Contracts

IHS Towers has reinforced its position as a leading telecom infrastructure provider in Africa, securing long-term contract renewals with MTN and Airtel Nigeria. The company’s 2024 earnings report highlights strategic moves, including lease extensions, financial restructuring, and operational cost-cutting, aimed at countering currency volatility and sustaining growth.

Revenue Performance and Growth Strategies

IHS recorded $437.8 million in Q4 revenue, reflecting a 4.2% quarterly increase, driven by colocation growth, lease amendments, and new site acquisitions. However, year-on-year revenue declined by 14.1%, primarily due to currency fluctuations, though organic revenue surged 39.3%, underscoring strong operational expansion.

At the close of 2024, IHS managed 39,229 towers and 59,343 tenants, with renewed MTN contracts and an extended Airtel Nigeria agreement, securing 72% of total revenue under long-term deals.

Navigating Currency Challenges and Financial Adjustments

Despite a 48.1% rise in organic revenue, IHS faced a significant hit from the Nigerian naira’s 57% devaluation, which erased $1.4 billion in revenue value, bringing total reported revenue down 19.5% to $1.7 billion. This led to a $1.6 billion net loss, partly attributed to unrealized foreign exchange losses.

To mitigate currency risks, IHS raised $1.2 billion via dual-tranche senior notes, using the funds to extend debt maturities and convert more liabilities into local currency. The company also reduced capital expenditure by 56.3%, shifting focus to profitability over expansion.

Power Management and Risk Reduction

IHS Towers has restructured its power management strategy, introducing power indexation in MTN Nigeria contracts and unbundling power services in South Africa. These measures aim to stabilize earnings and reduce exposure to energy price fluctuations.

Commenting on the financial outlook, Sam Darwish, Chairman and CEO of IHS Towers, stated:

“We’re reporting a strong performance in the fourth quarter, with key metrics—revenue, Adjusted EBITDA, and ALFCF—exceeding guidance. We believe our market-leading position enables us to support the growing demand for critical communications infrastructure.”

Outlook for 2025

Looking ahead, IHS projects 12% organic revenue growth in 2025, driven by 5G expansion and increased carrier tariffs in Nigeria. The company also completed the sale of its 70% stake in IHS Kuwait Limited for $230 million, strengthening its financial position.

Nigeria remains both a key market and a major risk for IHS. Despite forex restrictions, the company successfully extracted $271 million from the country, showcasing financial resilience and adaptability in a challenging economic environment.