IHS reports $236m Q4 profit despite annual loss

IHS Holding Ltd. (IHS) has announced a pre-tax profit of $236.35 million for the fourth quarter of 2024, marking a sharp recovery from the $438.41 million pre-tax loss recorded during the same period in 2023. Despite this quarterly turnaround, the telecommunications infrastructure company reported a full-year pre-tax loss of $1.61 billion, translating to a loss per share of $4.90.

Revenue for Q4 2024 totaled $437.82 million, a 14.1% decline from $509.78 million in Q4 2023, reflecting ongoing challenges in the company’s top-line performance. For the full year, 2024 revenue stood at $1.71 billion, down 19.48% year-over-year from $2.13 billion in 2023.

Financial Performance Overview
IHS’s cost of sales decreased by 24.74% year-over-year to $890.53 million, while adjusted EBITDA fell by 18.02% to $928.4 million. Administrative expenses rose 5.40% to $429.82 million while operating income dropped 9.71% to $479.15 million.

Despite the overall loss, the company’s cash and cash equivalents surged 96.7% year-over-year to $577.96 million. However, total assets declined 20.28% to $4.28 billion, and total equity fell by a significant 185.16%, leaving the company with a negative equity position of -$295.81 million.

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CEO’s Commentary
Sam Darwish, Chairman and CEO of IHS Towers, attributed the strong Q4 performance to the company’s strategic initiatives and improving macroeconomic conditions.

“We are reporting a strong performance in the fourth quarter, with our key metrics—revenue, adjusted EBITDA, and ALFCF—all ahead of our guidance, while total capital expenditure was below expectations, and we saw a drop in our consolidated net leverage ratio,” Darwish stated.

He added that positive momentum reflects favorable market trends and the company’s commercial and financial progress during 2024.