Naira Devaluation Triggers $1.61B Loss for IHS Holding in 2024, Despite Q4 Profit Surge

IHS Holding Ltd., a leading telecommunications infrastructure company, reported a complex financial picture for 2024, revealing a $1.61 billion full-year pre-tax loss, primarily attributed to the dramatic devaluation of the Nigerian Naira, even as the company showcased robust organic growth. The company’s fourth-quarter performance offered a stark contrast, with a pre-tax profit of $236.35 million, signaling a potential turnaround.

The company’s annual revenue declined by 19.48% year-over-year, totaling $1.71 billion, compared to $2.13 billion in 2023. However, underlying this reported decline was a significant 48.1% increase in organic revenue, driven by a 6.5% constant currency growth. This organic growth was fueled by increased revenue from colocation, lease amendments, and new site deployments, demonstrating the company’s strong operational performance.

The primary factor impacting the reported revenue and driving the substantial $1.61 billion full-year loss was the 57% devaluation of the Nigerian Naira. This currency fluctuation resulted in $1.610 billion in unrealized foreign exchange losses, significantly overshadowing the company’s operational gains.

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Despite the currency-related losses, Nigeria remained a critical market for IHS Holding. In the fourth quarter of 2024, Nigeria contributed 59% ($258.87 million) to the group’s total quarterly revenue and 63% ($154.87 million) of the group’s quarterly EBITDA. However, even within Nigeria, revenue declined by 19% year-over-year due to the Naira’s devaluation.

“We are reporting a strong performance in the fourth quarter, with our key metrics revenue, Adjusted EBITDA, and ALFCF all ahead of our guidance,” stated San Darwish, Chairman and CEO of IHS Towers. “We believe our positive momentum reflects both the continued strong secular trends we are seeing across our business, a more stable macroeconomic environment, as well as the significant commercial and financial progress we have made during 2024 as part of our ongoing strategic review.”

The company’s fourth-quarter results showed a significant improvement, with a pre-tax profit of $236.35 million, a stark contrast to the $438.41 million pre-tax loss recorded in the same period last year. This quarterly profitability, coupled with the strong organic growth, suggests that IHS Holding’s underlying business remains healthy.

Furthermore, the company reported a 96.70% increase in cash and cash equivalents, reaching $577.956 million, indicating improved financial stability. The company also managed to reduce its finance costs by 12.88% year-over-year, despite a substantial increase in administrative expenses.