Helios Towers revenue grows 25% on slate of African acquisitions

Helios Towers shares rose 1% to 136.5p in early morning trading on Thursday after the telecommunications firm reported an 25% revenue growth to $265.4 million from $212.4 million in HY1 2022.

Helios Towers said its revenue increase was driven by acquisitions in Senegal, Madagascar and Malawi, along with strong organic tenancy growth, CPI and climbing power prices.

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The UK-based group announced a 19% adjusted EBITDA climb to $136.1 million against $114.2 million as a result of revenue growth and higher fuel costs in the DRC across Q2.

Meanwhile, Helios Towers noted a 48% operating profit surge to $39.8 million compared to $26.9 million on the back of increased revenue, offset by a rise in administrative expenses linked to the firm’s expansion.

However, pre-tax loss increased to $122.2 million compared to $83.8 million, on the back of year-on-year growth in non-cash expenses from fair value movements of the embedded derivatives in the company’s bond and foreign exchange movements on Euro and US dollar denominated intercompany borrowings.

The group confirmed a 38% net debt rise to $1 billion from $786 million the year before.

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“We have delivered strong organic tenancy growth in the first half of the year, which combined with the successful integration of acquired assets in Senegal, Madagascar and Malawi has resulted in impressive year-on-year financial performance,” said Helios Towers CEO Tom Greenwood.

“Despite broader global macroeconomic uncertainty, our uniquely positioned platform, highly visible base of quality earnings and unparalleled structural growth continues to drive sustainable value creation for all of our stakeholders.”

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