American-Nigerian mogul Sam Darwish’s IHS misses expectations with Q1 profit of $7.6 million

IHS Holding, the telecom infrastructure giant led by American-Nigerian mogul Sam Darwish, recently published its financial statement for the first quarter of 2023, revealing a substantial decline in profit despite a significant increase in revenue.

The company, which holds a prominent position in Africa, Europe, Latin America, and the Middle East, reported a 49.3-percent drop in profit, from $15.1 million to $7.66 million, while revenue surged by 35.1 percent, climbing from $446.13 million to $602.53 million.

The decrease in profit can be attributed to various factors outlined in the financial statement.

IHS Holding cited an increase in the cost of sales, including higher power generation costs such as diesel expenses, as well as elevated administrative expenses associated with recent acquisitions.

Additionally, the company faced an increase in net finance costs primarily due to realized and unrealized foreign exchange losses on financing and higher interest expenses.

IHS Holding Chairman and CEO Sam Darwish acknowledged the challenges faced by the company but remained optimistic about the group’s overall performance.

He highlighted the growth driven by new lease amendments, escalations, and foreign exchange resets while acknowledging a moderated growth from power, which was expected.

Darwish also noted certain one-time benefits contributing to the first-quarter results, including a $48 million boost to revenue and Adjusted EBITDA from a key customer in Nigeria.

IHS Holding, founded by Darwish in 2001, maintains its position as the largest telecom infrastructure group in Africa, Europe, Latin America, and the Middle East in terms of tower count.

Although Darwish owns a 3.5-percent stake in the company, his leadership has been instrumental in driving growth for IHS Holdings in recent years, and in the first quarter of 2023, the group’s total assets rose to $6.49 billion, while retained losses experienced a marginal decline to $3.3 billion.

Despite the decline in profit, IHS Holding remains confident in its ability to achieve its goals for 2023. With its extensive tower network and strategic acquisitions, the company continues to play a vital role in the global telecom infrastructure landscape.

Omokolade Ajayi
Omokolade Ajayi
Omokolade Ajayi is a financial reporter at Billionaires.Africa. Previously, he worked as a journalist at Nairametrics. Omokolade is a seasoned financial analyst and reporter with in-depth knowledge of and expertise in equity markets, and financial and economic analysis. He has a degree in economics and is a certificate holder of the CFA Institute’s Investment Foundation Program.

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