U.S.-Nigerian telecom tycoon Sam Darwish’s IHS reports $435.4 million in Q2 2024 revenue

Feyisayo Ajayi -

Key Points

  • IHS Holding’s Q2 2024 revenue dropped 20.3% to $435.4 million, mainly due to a 63.5% devaluation of the Nigerian Naira.
  • The company posted a net loss of $124.31 million, with $169.7 million from unrealized FX losses due to Nigeria’s volatile FX market.
  • Despite challenges, CEO Sam Darwish remains optimistic, highlighting ongoing expansion and contract renewals as key to future growth.

IHS Holding, the telecom infrastructure giant led by U.S.-Nigerian businessman Sam Darwish, reported a significant decline in revenue for the second quarter of 2024.

The company’s revenue fell to $435.4 million, down 20.3 percent from $546.2 million in the same period last year. The drop in revenue was primarily due to the 63.5 percent devaluation of the Nigerian Naira, which severely impacted earnings.

As a result of the decline in its top-line figures, the company faced a net loss of $124.31 million for Q2 2024, with $169.7 million attributed to unrealized foreign exchange (FX) losses. This highlights the ongoing challenges stemming from Nigeria’s volatile FX market.

CEO optimistic despite setbacks

Adjusted EBITDA for the quarter was $250.8 million, reflecting an 11.9 percent decrease year-over-year, largely due to a $307.2 million FX headwind. However, the EBITDA margin improved slightly to 57.6 percent, suggesting some resilience in adapting to the FX fluctuations.

Despite these financial setbacks, Sam Darwish, chairman and CEO of IHS Holdings, expressed optimism about the company’s future prospects, noting that IHS is well-positioned to leverage emerging opportunities and provide long-term value to shareholders.

“We have begun to deliver on the goal of increasing operating profitability and substantially reducing our Capex to increase cash flow generation, which is reflected in our results and in our 2024 guidance,” Darwish said. “In terms of assets review, we continue to examine our portfolio of markets with a focus on raising proceeds, with a target of $500 million to $1 billion.”

Expansion and contract renewals strengthen position

Founded in 2001 by Darwish, IHS Holding remains a dominant player in the telecom infrastructure sector, ranking as the third-largest independent multinational tower company globally by tower count. The company has expanded its footprint by adding 385 tenants, making 1,566 lease amendments, and constructing 207 new towers, including 136 in Brazil.

IHS Holding has also renewed its contracts with MTN across several African markets, including Nigeria, South Africa, and Rwanda. These renewals further solidify IHS’s role as a key player in the region’s telecom infrastructure sector. Darwish, who holds a 4.17 percent stake in the company, continues to be a significant figure in the African telecom industry.