HELIOS TOWERS, LTD Results for the Three and Nine Months Ended 30
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HELIOS TOWERS, LTD Results for the three and nine months ended 30 September 2019 London, 14 November 2019: Helios Towers, Ltd (“Helios Towers” or “the Company”), the independent telecoms tower infrastructure company, today announces results for the three months and nine months to 30 September 2019. Three months to 30 September 2019 2019 2018 Change Revenue (US$m) 97.3 88.1 11% Adjusted EBITDA (US$m)1 52.5 45.2 16% Adjusted EBITDA margin (%)1 54 51 +3ppt Operating profit/(loss) for the period (US$m) 0.1 (3.0) +3.1m Nine months to 30 September 2019 2019 2018 Change Revenue (US$m) 288.0 266.2 8% Adjusted EBITDA (US$m)1 151.5 131.1 16% Adjusted EBITDA margin (%)1 53 49 +4ppts Operating profit/(loss) for the period (US$m) 12.7 (5.1) +17.8m Financial highlights Q3 2019 is the 19th consecutive quarter of Adjusted EBITDA growth. Q3 2019 revenue increased by 11% year-on-year to US$97.3m (Q3 2018: US$88.1m). Q3 2019 Adjusted EBITDA up 16% year-on-year to US$52.5m (Q3 2018: US$45.2m) with Q3 2019 Adjusted EBITDA margin at 54% (Q3 2018: 51%), up 3ppt. Q3 2019 operating profit increased by US$3.1m to US$0.1m (Q3 2018: US$(3.0)m). Revenue for the 9 months to 30 September 2019 increased by 8% year-on-year to US$288.0m (30 Sep 2018: US$266.2m). Adjusted EBITDA for the 9 months to 30 September 2019 increased by 16% to US$151.5m (30 Sep 2018: US$131.1m) with Adjusted EBITDA margin at 53% (30 Sep 2018: 49%), up 4ppts. Operating profit for the 9 months to 30 September 2019 increased by US$17.8m to US$12.7m (30 Sep 2018: US$(5.1)m). Operational highlights Increase in tenants of 9% year-on-year to 14,226 tenants (Q3 2018: 13,063 tenancies). Increase in sites of 5% year-on-year to 6,903 total sites (Q3 2018: 6,560 total sites). Tenancy ratio increased by 0.07x to 2.06x (Q3 2018: 1.99x). On 18 October 2019 Helios Towers Plc was admitted to the premium segment of the Official List and trading on the Main Market of the London Stock Exchange (Ticker: HTWS.L). The following new appointments were made to the Plc Board - Sir Samuel Jonah (Chairman), Magnus Mandersson (Senior Independent Director) and Alison Baker (Independent Non-Executive Director). A full list of Non-executive Directors appointed at the time of the Group’s IPO and their biographies can be found after Note 21 of this announcement. 1 For “Adjusted Measures” refer to full definitions in the “certain defined terms and conventions” section at the end of this announcement. 1 Kash Pandya, Chief Executive Officer, said: “Helios Towers delivered another strong set of results for the third quarter and continued our trend of 19 consecutive quarters of Adjusted EBITDA growth. We continue to focus on driving top-line growth and Adjusted EBITDA performance, leveraging the exciting growth in our sub-Saharan markets, our long term client contracts and a sharp focus on operational excellence. The business is performing in-line with our expectations which gives us confidence in the outlook for the full year.” Sir Samuel Jonah, Chairman, said: “The management and the broader Helios Towers’ team have achieved a huge amount in the past quarter. The business has maintained its momentum through the recent IPO process and I would like to congratulate everyone at the Company. I would also like to take this opportunity publicly to welcome our new shareholders to the business. Helios Towers has built strong positions in high growth markets. We will continue to invest in the critical mobile and telecoms infrastructure that is so important to our corporate customers, their consumers and the economic development of the African countries in which we operate.” For further information go to: www.heliostowers.com Investor Relations Manjit Dhillon +44 (0)776 723 7010 Media relations Edward Bridges / Stephanie Ellis FTI Consulting LLP +44 (0)20 3727 1000 About Helios Towers (“HT”) Helios Towers is a leading independent telecommunications tower infrastructure company in Africa, having established one of the continent's most extensive tower portfolios with close to 7,000 towers across five countries. It builds, owns and operates telecom passive infrastructure, providing services to mobile network operators. HT owns and operates more sites than any other operator in each of Tanzania, Democratic Republic of Congo (“DRC”), and Congo Brazzaville. It is also a leading operator in Ghana with a strong urban presence and established a presence in South Africa in 2019. HT pioneered the model in Africa of buying towers that were held by single operators and providing services utilising the tower infrastructure to the seller and other operators. This allows wireless operators to outsource non-core tower- related activities, enabling them to focus their capital and managerial resources on providing higher quality services more cost-effectively. 2 Financial and Operating Review The analysis of the Group’s financial results and performance has largely been performed on a quarterly basis as the Group reports its results quarterly. A quarterly analysis is considered more appropriate and meaningful. Other sections of this interim report present a nine months view of the Group’s financial position. Condensed consolidated statement of profit or loss For the 9 and 3 months ended 30 September 9 months ended 30 September 3 months ended 30 September 2019 2018 2019 2018 US$’000 US$’000 US$’000 US$’000 Revenue 288,026 266,212 97,345 88,084 Cost of sales (196,863) (194,744) (64,148) (63,853) Gross profit 91,163 71,468 33,197 24,231 Administrative expenses (67,410) (71,727) (27,465) (22,407) Loss on disposal of property, plant and equipment (11,043) (4,803) (5,676) (4,798) Operating profit/(loss) 12,710 (5,062) 56 (2,974) Interest receivable 1,311 777 598 314 Other gains and (losses) 48,260 (29,257) 23,984 (5,160) Finance costs (84,768) (83,513) (28,417) (27,997) Loss before tax (22,487) (117,055) (3,779) (35,817) Tax expenses (6,660) (2,832) (2,876) (718) Loss after tax (29,147) (119,887) (6,655) (36,535) Key metrics For the 3 months ended 30 September Group Tanzania DRC Congo Brazzaville Ghana South Africa 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m Revenue for the quarter $97.3 $88.1 $40.5 $37.3 $39.2 $35.0 $7.0 $6.2 $10.0 $9.6 $0.6 – Gross margin1 67% 65% 67% 69% 65% 59% 73% 67% 70% 70% 72% – Sites at beginning of the quarter 6,882 6,533 3,650 3,508 1,817 1,771 381 384 933 870 101 – Sites at quarter end 6,903 6,560 3,637 3,519 1,821 1,775 385 378 950 888 110 – Tenancies at beginning of the quarter 14,100 12,996 7,950 7,475 3,705 3,347 533 532 1,744 1,642 168 – Tenancies at quarter end 14,226 13,063 7,971 7,498 3,717 3,374 557 526 1,788 1,665 193 – Tenancy ratio at quarter end 2.06x 1.99x 2.19x 2.13x 2.04x 1.90x 1.45x 1.39x 1.88x 1.88x 1.75x – Adjusted EBITDA for the quarter2 $52.5 $45.2 $24.7 $22.8 $22.3 $17.5 $4.0 $3.2 $5.9 $5.8 $(0.1) – Adjusted EBITDA Margin for the quarter 54% 51% 61% 61% 57% 50% 57% 52% 59% 60% (12)% – 1 Gross margin means gross profit, adding back site and warehouse depreciation, divided by revenue. 2 Group Adjusted EBITDA for the quarter is stated including corporate costs of US$4.3 million (2018: US$4.1 million). Tenancies have increased by 126 during the quarter which is mainly driven by growth in Congo Brazzaville, Ghana and South Africa. Year-on-year tenancy growth of 1,163 is principally due growth in sites of 343 and growth in total colocations of 820. Consequently, tenancy ratio has increased by 0.07x year-on-year, from 1.99x to 2.06 as at 30 September 2019. 3 Total tenancies as at 30 September Group Tanzania DRC Congo Brazzaville Ghana South Africa 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Standard colocations 6,676 5,972 3,905 3,594 1,824 1,573 159 143 707 662 81 – Amendment colocations 647 531 429 385 72 26 13 5 131 115 2 – Total colocations 7,323 6,503 4,334 3,979 1,896 1,599 172 148 838 777 83 – Total sites 6,903 6,560 3,637 3,519 1,821 1,775 385 378 950 888 110 – Total tenancies 14,226 13,063 7,971 7,498 3,717 3,374 557 526 1,788 1,665 193 – Revenue Revenue increased by 11% to US$97.3 million in the quarter ended 30 September 2019 from US$88.1 million in the quarter ended 30 September 2018. The increase was largely driven by the growth in total tenancies from 13,063 as of 30 September 2018 to 14,226 as of 30 September 2019. Revenues for the nine month period ended 30 September 2019 were $288.0 million.