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LONDON - IHS Holding Limited (NYSE:IHS) reported third quarter earnings that significantly exceeded analyst expectations on Wednesday, with strong performance across all key metrics prompting management to raise full-year guidance.
The tower infrastructure company’s shares were up 6.54% in pre-market trading after the results.
The company reported adjusted earnings per share of $0.44, beating analyst estimates of $0.11 by $0.33. Revenue came in at $455.1 million, surpassing the consensus estimate of $424.52 million and representing an 8.3% increase YoY despite a 3.0% headwind from the disposal of Kuwait operations in December 2024.
Organic revenue growth of 6.6% was driven by increased revenue from colocation, lease amendments, new sites, fiber and escalators. Adjusted EBITDA rose 6.3% YoY to $261.5 million, resulting in an Adjusted EBITDA margin of 57.5%.
"We delivered another strong quarter with solid revenue growth, profitability and free cash flow generation, building on the momentum we saw in the first half of the year," said Sam Darwish, IHS Towers Chairman and CEO. "These positive results reflect disciplined execution, continued commercial progress and the strength of our operations across our key markets."
The company’s Adjusted Levered Free Cash Flow increased 81.2% to $157.8 million, driven by improved free cash flow generation and supplemented by a re-phasing of interest payments following a November 2024 bond refinancing.
IHS Holding raised its full-year 2025 guidance, now expecting revenue between $1.72 billion and $1.75 billion, up from the previous range of $1.7 billion to $1.73 billion. Adjusted EBITDA guidance was also increased to between $995 million and $1.015 billion.
The company’s consolidated net leverage ratio improved to 3.3x, down 0.6x YoY, within its target range of 3.0x-4.0x. In October, IHS signed a new site agreement with TIM S.A. in Brazil to build up to 3,000 sites and completed the disposal of its Rwanda operations for an enterprise value of $274.5 million.
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