How did IHS outperform forecasts in Q4 2024?

IHS Holding Limited (IHS) outperformed forecasts in Q4 2024 despite a decline of 2.34% in its stock price, as evidenced by several key financial metrics that exceeded expectations. Here are the standout points:

1. **Organic Growth and Revenue Dynamics**: IHS saw a robust organic growth of 49% year-on-year, despite a 10% decline due to foreign exchange (FX) headwinds. This organic growth was driven by strategic contract renewals, increases in revenue from colocation, lease amendments, and new sites.
2. **Adjusted EBITDA and Margin**: The company reported an increased Adjusted EBITDA of $246 million, up 3.3% year-on-year, with a margin of 58.5%. This indicates strong operational efficiency and cash-generating capacity.
3. **Cash Flow and CapEx**: IHS Holding Limited maintained a healthy Adjusted Levered Free Cash Flow (ALFCF) of $87.1 million, up 1.6% year-on-year. Although Total Capex was $66.5 million, the company revised its full-year guidance downward to $270-$300 million, reflecting prudent capital expenditure management.
4. **Contract Renewals and Market Position**: The renewal and extension of tower contracts with MTN Nigeria through 2032 have bolstered long-term revenue visibility. IHS's focus on emerging markets and its significant tower count in key regions position it well for continued growth.

In conclusion, IHS's outperformance in Q4 2024 can be attributed to its strategic growth initiatives, operational efficiency, and resilience in the face of FX challenges. These factors collectively contribute to the company's robust financial performance and positive market outlook.