Helios Towers shares were up 3.8% to 114.3p in late afternoon trading on Thursday, after the telecommunications company reported a 23% year-on-year revenue growth to $127.5 million compared to $103.6 million for Q1 2022.
The firm reported a 4% increase in revenue from $122.3 million quarter-on-quarter.
The Africa-focused group announced a 20% EBITDA rise to $66.7 million against $55.8 million the previous year, which the company attributed to three acquisitions closed over the last 12 months and organic tenancy growth in established markets.
Helios Towers mentioned that its EBITDA gains were partially offset by corporate SG&A investments which supported the firm’s transformational expansion from five markets to ten.
The company announced a 2% uptick in EBITDA against Q4 2021 from $65.6 million.
However, Helios Towers mentioned an operating profit decrease of $2.7 million to $14.4 million year-on-year, driven by higher depreciation from acquired assets.
The group confirmed a portfolio free cash flow increase of 34% to $49.9 million year-on-year, which Helios attributed to its rise in EBITDA, lower maintenance and corporate capital additions and lower tax payments.
Helios commented that its lower tax payments were partially offset by higher lease payments as a result of the company’s higher site count.
The company reported a 76% increase in cash generated from operations to $52.7 million year-on-year, driven by the gains in EBITDA and working capital movements.
The telecom infrastructure firm highlighted that its business was underpinned by long-term contracted revenues of $4.2 billion against $2.8 billion in Q1 2021, of which 99% was sourced from multinational MMOs, with an average remaining life of 7.4 years compared to 6.6 years the previous year.
Helios Towers reconfirmed its guidance for 2022, with projections of 1,200 to 1,700 organic tenancy additions, 60% of which are set to be new sites, a lease rate per tenant increase between 3-5% to $26,400 since last year, and an adjusted EBITDA margin between 51-53%.
“We have seen strong growth this quarter with revenue up 23% year-on-year, driven by continued organic demand in our established markets in addition to the contributions from our three new markets of Senegal, Madagascar and Malawi,” said Helios Towers CEO Tom Greenwood.
“Our recent platform expansion is progressing well, as we become the most diversified towerco in the region with the doubling of our sites and markets.”
“We have many exciting years ahead as we move to a new phase of our journey and launch our 5 year sustainable business strategy – focused on driving growth, impact, margins and returns.”