Telecom tower company IHS Holding reported 16.4 percent increase in revenue to $467.7 million for three months ended June 30, 2022 versus 2021.
Revenue growth was driven primarily by escalations, lease amendments, power indexation and foreign exchange resets, as well as new sites and new colocations.
IHS said capital expenditures were $146.8 million in Q2 2022 compared to $76 million in Q2 2021 driven by the Sub-Saharan Africa segment, including $11.9 million hike in Cameroon due to a license renewal fee and $8.8 million rise from South Africa due to refurbishment associated with the recent MTN South Africa Acquisition.
The hike in Capex was also driven by the Latam and Nigeria segments, with Latam having an increase in fiber business capital expenditures of $15.4 million and an increase of $6.8 million of maintenance Capex due to the acquisition of I-Systems and Nigeria having an increase of $16.2 million and $14.3 million from new site capital expenditure and other capital expenditures, respectively, partially offset by decrease in fiber capital expenditures of $3.5 million.
“Demand continues to track expectations and based on first half results and expectations for the back half of the year, we are raising our 2022 guidance for revenue by +$10 million at the mid-point and reiterate our guidance for Adjusted EBITDA, RLFCF, and Capex,” Sam Darwish, IHS Towers Chairman and Chief Executive Officer, said.
IHS Towers owns 39,052 towers across 11 countries including the 5,691 towers in South Africa, making it the 3rd largest independent multinational tower company by tower count.
IHS Towers will be investing in Project Green in the second half of this year.
