Financial Data and Key Metrics Changes - Revenue increased by 4% quarter-over-quarter and adjusted EBITDA increased by 35% from Q1 2024, despite a reported year-over-year revenue decline of 20% due to Naira devaluation [7][18] - Adjusted EBITDA margin improved to 57.6%, up 550 basis points year-over-year and 1,330 basis points from the previous quarter [24] - CapEx decreased by 73% year-over-year, reflecting a strategic focus on cash generation and high-return projects [18][25] Business Line Data and Key Metrics Changes - In Nigeria, revenue decreased by 26% year-over-year on a reported basis, but organic growth was 105% driven by FX resets and escalations [27] - Sub-Saharan Africa segment saw a revenue decrease of 12.3%, but adjusted EBITDA increased by 21.5% due to lower maintenance costs [28] - LatAm segment experienced a revenue decrease of 3.9%, with organic growth of 1.5% despite negative FX movements [29] Market Data and Key Metrics Changes - The average ForEx rate for the U.S. dollar to the Naira was NGN1,392 during the quarter, with the Naira closing at NGN1,597 on August 9, 2024 [8][15] - Data usage in Nigeria reportedly increased by over 50% year-on-year, indicating strong demand for mobile connectivity [51] Company Strategy and Development Direction - The company is focused on unlocking shareholder value through governance improvements and strategic contract renewals, particularly with MTN [12][14] - A target of raising 1 billion is set for debt reduction and potential shareholder returns [13][40] - The introduction of power indexation in contracts is expected to stabilize margins and reduce operational risks [20][48] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the stabilization of the Nigerian ForEx market and the potential for increased dollar availability [15] - The company anticipates strong performance in KPIs for the remainder of the year, driven by healthy underlying trends [8] Other Important Information - The company completed the sale of its Peru subsidiary to SBA Communications on April 30, 2024, and remains committed to growth in Brazil [16] - The balance sheet remains a priority, with 746 million of available liquidity reported at the end of the quarter [14][31] Q&A Session Summary Question: Overall new lease activity in Nigeria and broader Africa - Management noted strong fundamental growth characteristics, with significant colocation and lease amendment activity driven by the African portfolio [35] Question: Asset sale discussions - Discussions are ongoing regarding asset sales, with a target of raising 500 million to 300 million to $370 million, with a slight step-up expected in the second half of the year [61]
IHS (IHS) - 2024 Q2 - Earnings Call Transcript