IHS (IHS) Q4 2020 earnings summary

Executive summary

• Revenue rose to $1,403,149k in 2020 from $1,231,056k; operating profit was $331,945k versus a $157,104k operating loss, while net loss narrowed to $322,682k from $423,492k.

• Telecom tower colocation and related services expanded into Brazil and Kuwait through acquisitions; the year-end portfolio included four operating segments: Nigeria, SSA, Latam and MENA.

Financial highlights

• Revenue was $1,403,149k; cost of sales $838,423k; administrative expenses $236,112k; and trade receivables loss allowance $13,081k.

• Finance costs rose to $633,766k from $288,915k, including $363,953k of unrealized financing FX losses; finance income was $148,968k, including $110,655k fair-value gains on embedded bond options.

• Net loss was $322,682k; total comprehensive loss narrowed to $228,271k from $418,455k, reflecting $94,411k of other comprehensive income.

• Cash generated from operations was $656,699k; operating cash flow was $635,256k, and cash and cash equivalents ended the year at $585,416k versus $898,802k.

Outlook and guidance

• Long-term customer contracts represented $9.2bn of contracted revenue; management expected to continue investing in revenue-growth capex during 2021.

• COVID-19 had not materially affected operations, collections or liquidity through the reporting period; its longer-term economic and operating effects remained uncertain.

• Management considered liquidity and resources adequate for at least 12 months after issuance and expected compliance with existing debt covenant levels.