What drove IHS's earnings surprise in 2024?

IHS Holding (NYSE: IHS) reported a net income surprise of $0.72 million for the quarter ending December 31, 2024. The company's earnings surprise can be attributed to several key factors:

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|IHS|IHS.N|IHS Holding|2024 Q1|-1.55725E9|169|
|IHS|IHS.N|IHS Holding|2024 Q2|-1.24314E8|169|
|IHS|IHS.N|IHS Holding|2024 Q3|-2.05703E8|169|
|IHS|IHS.N|IHS Holding|2024 Q4|2.43066E8|169|

1. **Revenue Growth**: IHS Holding saw a 4% increase in revenue from the previous quarter and a 49% year-over-year organic growth, despite a 10% decline due to foreign exchange challenges. The company's revenue growth was driven by forex resets, increased revenue from colocation, lease amendments, and new sites.
2. **Cost Control**: The company's adjusted EBITDA increased by 3% year-on-year to $246 million, with an adjusted EBITDA margin of 58.5%. This reflects effective cost control measures despite the challenges posed by foreign exchange fluctuations.
3. **Contract Renewals**: Strategic contract renewals, such as the renewal and extension of all tower contracts with MTN Nigeria through 2032, have provided long-term revenue streams and improved financial visibility.

In summary, IHS Holding's earnings surprise in 2024 can be attributed to a combination of revenue growth, cost control, and strategic contract renewals. These factors collectively contributed to the company's strong financial performance, surpassing market expectations.