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IHS Holding, a leading telecom infrastructure firm led by American-Nigerian telecom tycoon Sam Darwish, quickly returned to a loss position at the end of the first half of 2022, posting a shocking loss of $162.4 million amid rising operating costs driven by soaring energy prices.
IHS Holding, which is one of the world’s largest independent owners, operators, and developers of shared communications infrastructure by tower count, posted a loss of $162.4 million in the first half of 2022, compared to a profit of $76.6 million in the same period of 2021, according to figures contained in the group’s recently published financial statement.
The $162.4-million loss is the result of direct cost and operating expense pressures such as higher power generation and finance costs and increased administrative expenses, which eroded the company’s double-digit revenue increases during the period.
This financial performance follows a profit of $16.9 million in the first quarter of 2022, when revenue increased from $361.7 million to $446.1 million. In response, Darwish, IHS Towers chairman and CEO, said the group had a solid quarter despite what remains a volatile macroeconomic environment around the world.
He explained that the company saw organic revenue growth in all its markets despite higher diesel costs, while its cash flow benefited from a favorable withholding tax and the timing of maintenance capital expenditures.
The group’s revenue in the first quarter of 2022 was $467.7 million, with $321.1 million coming from its Nigerian operations and $94.9 million coming from its Sub-Saharan African operations.
Despite the multimillion loss, the group’s total assets rose from $4.1 billion to $5.06 billion, while accumulated losses increased from $2.86 billion to $3.02 billion.
