U.S.-Nigerian telecom tycoon Sam Darwish-led IHS reports lower 2024 revenue at $1.7 billion

Key Points

• IHS Towers’ 2024 revenue fell 19.5% to $1.71 billion, hit by Nigerian naira devaluation despite strong organic growth.
• The company sold its Kuwait unit for $230 million and raised $1.2 billion in senior notes to refinance debt.
• IHS forecasts up to $1.71 billion in 2025 revenue, plans 500 new sites, and focuses on profitability amid market challenges.

IHS Towers, the telecom infrastructure giant led by U.S.-Nigerian telecom tycoon Sam Darwish, reported a sharp drop in revenue for 2024, with earnings falling to $1.71 billion. The decline—driven largely by the devaluation of the Nigerian naira—underscores the financial challenges facing the company despite strong operational growth.

Currency challenges, cost cuts, and profitability

According to its annual report, IHS saw a 19.5 percent drop in revenue from $2.13 billion in 2023. While organic revenue surged 48.1 percent—boosted by colocation growth, lease amendments, and new site deployments—the currency devaluation in Nigeria significantly impacted earnings. The company ended the year with a net loss of $1.64 billion, of which $1.61 billion stemmed from unrealized foreign exchange losses.

Still, there were signs of improvement. Lower financing costs, gains from the $83.9 million sale of its Kuwait unit, and a $72.9 million reduction in impairment charges helped ease losses compared to the nearly $2 billion net loss reported in 2023. However, a goodwill impairment charge of $87.9 million in IHS Latam weighed on the results, and cash from operations dropped 14.07 percent to $775.9 million.

Strategic moves to navigate market volatility

To manage macroeconomic pressures, IHS renewed key lease agreements with MTN and Airtel Nigeria—securing 72 percent of its group revenue. The company also introduced power indexation in Nigeria to mitigate energy costs and unbundled MTN’s power contract in South Africa.

“We’ve made significant progress in de-risking our business, strengthening our balance sheet, and securing long-term customer contracts,” said Sam Darwish, chairman and CEO of IHS Towers. “With strong structural growth trends, continued 5G deployment, and a more stable macroeconomic environment, we remain confident in our ability to generate sustained growth and deliver increasing returns for stakeholders.”

IHS also sold its 70 percent stake in IHS Kuwait for $230 million as part of its asset optimization strategy and raised $1.2 billion in senior notes to refinance debt due in 2026 and 2027. Despite Nigeria’s FX volatility, the company upstreamed $271 million in 2024.

Expanding its market position

Founded by Darwish in 2001, IHS Towers has grown into the world’s third-largest independent telecom tower company. Darwish, who holds a 4.17 percent stake, remains a key player in Africa’s telecom industry. In 2024, the company added 385 tenants, amended 1,566 leases, and built 207 new towers, including 136 in Brazil.

Looking ahead, IHS forecasts 2025 revenue between $1.68 billion and $1.71 billion, with 12 percent organic growth. The company plans to deploy 500 new sites—400 in Brazil—while keeping capital expenditures between $260 million and $290 million. With a focus on profitability, cash flow optimization, and strategic asset sales, IHS is positioning itself for long-term growth despite ongoing market challenges.