IHS (IHS) Q4 2021 earnings summary

Executive summary

• FY21 revenue rose 12.6% YoY to $1.58bn and Adjusted EBITDA increased 13.1% to $926m; net loss narrowed to $26m from $323m.

• Operations ended 2021 with 31,043 towers, 46,414 tenants and 27,124 lease amendments; the October NYSE IPO added $357.7m net proceeds.

• Growth reflected organic leasing, acquisitions and entry into Brazilian fiber; the outlook centers on higher utilization, new sites, adjacent services and selective expansion.

Financial highlights

• Revenue was $1,579.7m, up $176.6m YoY; organic growth contributed $226.6m, acquisitions $34.0m, partly offset by $84.0m adverse FX translation.

• Operating profit increased to $388.4m from $331.9m; loss for the year narrowed to $26.1m from $322.7m.

• Adjusted EBITDA reached $926.4m vs. $819.0m; operating cash flow was $750.2m vs. $635.3m.

• Capex increased 75.6% YoY to $402.5m; power generation costs rose $51.0m, mainly on higher diesel costs and consumption in Nigeria.

• Revenue included $24.2m from customer contract-term agreements and service-credit remeasurement; 2020 included $31.6m from a customer agreement.

Outlook and guidance

• Strategy targets more colocation, lease amendments, contractual escalations and new sites; fiber, DAS and small cells are expected to support growth as markets prepare for 5G.

• Management planned continued revenue-growth capex in 2022, after supply-chain delays moderated 2021 investment; available liquidity was considered adequate for the next 12 months.

• South Africa tower acquisition was expected to close in Q1 or Q2 2022, subject to approvals; Egypt's license includes a 5,800-site coverage commitment over three years, subject to conditions.

• The signed SP5 deal covers 2,115 Brazilian towers for $315m, cash- and debt-free; closing was expected imminently, subject to customary conditions.