IHS Towers SSA Revenue Jumps 18.1% on Organic Growth Amid Global EBITDA Decline

IHS Towers reported robust performance from its Sub-Saharan Africa (SSA) segment in Q2 2025, with revenue reaching $127.8 million, a 18.1% increase compared to the same period in 2024. This growth was primarily driven by organic expansion, including new colocation agreements, lease amendments, and the deployment of new sites. Power indexation and foreign exchange resets also contributed to revenue stability, particularly in markets like Nigeria where the local currency has been volatile [1]. The SSA segment continues to be IHS Towers’ largest revenue contributor, reflecting the region’s increasing demand for mobile infrastructure as operators expand 4G and 5G networks [1].

Despite the strong revenue performance in SSA, the segment’s adjusted EBITDA declined by 4.3% to $73.1 million, with a margin of 57.2%. The primary drag was the devaluation of the Nigerian Naira, which had a negative impact of $40.6 million on adjusted EBITDA compared to Q2 2024. Rising power costs also pressured profitability, although IHS is investing in solar-powered towers to reduce dependence on diesel [1]. The company continues to face a complex financial landscape, with consolidated revenue for Q2 2025 standing at $433.3 million, a 0.5% decline year-over-year. Organic growth contributed 11.8% to this total, driven largely by SSA and the Middle East and North Africa (MENA) regions [1].

The decline in consolidated adjusted EBITDA to $219.2 million, down 7.8% from $237.7 million in Q2 2024, was attributed to currency devaluation and rising operational costs. Nigeria’s naira devaluation alone caused a $29.7 million negative impact on adjusted EBITDA, while other regions, including Latin America and MENA, also faced similar headwinds [1]. IHS Towers reported a loss of $1.0 billion for the period, driven largely by a $1.1 billion loss from embedded derivatives linked to convertible instruments [1]. Net debt rose to $3.9 billion, with a leverage ratio of 3.4x, remaining within the company’s target range of 3.0x to 4.0x [1].

On a positive note, Adjusted Levered Free Cash Flow (ALFCF) for Q1 2025 was $149.9 million, a 247.7% increase year-over-year, indicating improved cash flow management [1]. IHS is also optimizing its asset base, including the recent $274.5 million sale of its operations in Rwanda, following similar divestitures in Peru and Kuwait in 2024. These strategic moves aim to reduce debt and refocus the company on high-growth markets [1]. IHS operates 39,212 towers across eight markets, with 59,606 tenants and a colocation rate of 1.52x as of Q1 2025. A key strategic win was the renewal of its Master Lease Agreement with Airtel Zambia, covering 1,100 tenancies until 2035, which supports long-term revenue stability [1].

Looking ahead, IHS reiterated its full-year 2025 guidance, projecting revenue between $1.68 billion and $1.71 billion, with adjusted EBITDA expected to range between $960 million and $980 million. Organic revenue growth is forecast at 12%, with ALFCF of $350–$370 million and total capital expenditure of $260–$290 million. The strong performance in SSA underpins this optimism, though currency volatility, power costs, and geopolitical risks remain key challenges. The company’s focus on cash flow generation and portfolio optimization continues to support its long-term strategic direction [1].

Source: [1] IHS Towers posts $127.8m revenue from SSA in Q2 but global challenges persist (https://coinmarketcap.com/community/articles/689b674bee3ff123884a9849/)