In This Article:
-
Revenue Growth: 10% year-on-year increase.
-
EBITDA Growth: 14% year-on-year increase.
-
Free Cash Flow: $19 million positive, a $100 million improvement from the previous year.
-
Tenancy Additions: Record organic additions of 2,481 tenancies, a 9% increase.
-
Tenancy Ratio: Increased to 2.05, with a target of 2.2 by 2026.
-
Return on Invested Capital (ROIC): Increased by 1% to 13%.
-
Net Leverage: Decreased to 3.98x.
-
Contracted Revenue: $5.1 billion with an average remaining life of 6.9 years.
-
CapEx: Total of $169 million, with $93 million in growth CapEx.
-
Credit Rating: Upgraded to BB- by S&P.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Helios Towers PLC (HTWSF) reported record tenancy additions and strong organic growth in both top-line and bottom-line metrics for 2024.
-
The company achieved a significant milestone by generating $19 million in surplus free cash flow for the first time, marking a $100 million improvement over the previous year.
-
Helios Towers PLC (HTWSF) has maintained a 10-year track record of uninterrupted EBITDA growth at a compounded annual growth rate of 26% since 2015.
-
The company has a strong balance sheet with fixed interest costs, allowing for amplified growth in bottom-line free cash flow as operational cash flow increases.
-
Helios Towers PLC (HTWSF) is well-positioned to benefit from structural growth in Africa and the Middle East, with mobile subscribers growing at 5% per year and data consumption expected to quadruple in the next five years.
Negative Points
-
The company faces geopolitical risks, particularly in the Democratic Republic of Congo (DRC), where civil disturbances are a part of working life.
-
There is a potential threat from satellite technology, which could alter network topography and impact the traditional mobile infrastructure model.
-
Some markets, such as Senegal and Madagascar, are not experiencing tenancy growth in line with other regions, which could affect overall returns on investment.
-
Helios Towers PLC (HTWSF) has a high level of financial leverage, although it is decreasing, with a target to reduce it to 3.5 by the end of 2025.
-
The company is not currently prioritizing mergers and acquisitions, which could limit growth opportunities in new markets.
Q & A Highlights
Q: How do you feel about the consensus estimates for adjusted EBITDA in 2025, and what are the consequences of the ongoing strife between Rwanda and DRC for Helios Towers? A: Tom Greenwood, CEO, expressed confidence in the business's performance and alignment with market consensus for 2025. He noted that Helios Towers has operated in DRC for 15 years, managing civil disturbances effectively by focusing on safety and maintaining critical mobile services. Manjit Dhillon, CFO, added that the increased tenancy guidance reflects confidence in the year's outlook.