Helios Towers | Highlights

Key highlights (Q3 2021)

YTD 2021 revenue increased by 6% year-on-year to US$326.8m (YTD 2020: US$307.9m), driven by the acquisition of Free Senegal's tower portfolio in Q2 2021 and continued organic tenancy growth across the Group.
- Q3 2021 revenue increased by 5% quarter-on-quarter to US$114.4m (Q2 2021: US$108.8m).

YTD 2021 Adjusted EBITDA increased by 5% year-on-year to US$175.0m (YTD 2020: US$166.5m), driven by the addition of Free Senegal’s tower portfolio and continued organic tenancy growth across our markets, partially offset by increased SG&A investment to support our expansionary strategy. YTD 2021 Adjusted EBITDA margin of 54% is flat year-on-year.
- Q3 2021 Adjusted EBITDA increased by 4% quarter-on-quarter to US$60.8m (Q2 2021: US$58.4m), with Q3 2021 Adjusted EBITDA margin at 53% (Q2 2021: 54%).

YTD 2021 operating profit decreased by 7% year-on-year to US$42.0m (YTD 2020: US$45.4m) due to higher deal costs in the current year in relation to acquisitions, which is partially offset by continued Adjusted EBITDA growth.
- Q3 2021 operating profit increased by 54% quarter-on-quarter to US$15.1m (Q2 2021: US$9.8m), due to lower deal costs in the quarter.

YTD 2021 portfolio free cash flow decreased by 11% year-on-year to US$118.7m (YTD 2020: US$133.3m), driven by an increase in corporate income tax, non-discretionary capex and lease payments.
- Q3 2021 portfolio free cash flow increased by 22% quarter-on-quarter to US$44.9 million (Q2 2021: US$36.8m), driven by Adjusted EBITDA growth in addition to lower non-discretionary capex and lease payments.

YTD 2021 cash generated from operations decreased by 32% year-on-year to US$98.6m (YTD 2020: US$145.9m), due to higher deal costs and an escrow deposit in relation to the Oman transaction partially offset by Adjusted EBITDA growth.
- Q3 2021 cash generated from operations increased by 237% quarter-on-quarter to US$52.9m (Q2 2021: US$15.7m), due to improved working capital and no recurrence of the one-off escrow deposit payment in the current quarter compared to Q2 2021.
Net leverage of 3.4x increased by +0.5x year-on-year (Q3 2020: 2.9x) and +0.2x quarter-on-quarter (Q2 2021: 3.2x), remaining below the Group's medium-term target range of 3.5x-4.5x.
Business underpinned by long-term contracted revenues of US$3.7bn (Q3 2020: US$2.7bn), of which 99% is from multinational MNOs, with an average remaining life of 7.6 years (Q3 2020: 6.6 years).

Sites increased by 1,543 year-on-year to 8,765 sites (Q3 2020: 7,222 sites), reflecting 336 organic site additions and the acquisition of 1,207 sites from Free Senegal. Sites increased by 162 quarter-on-quarter (Q2 2021: 8,603).
Tenancies increased by 2,691 year-on-year to 17,773 tenants (Q3 2020: 15,082 tenants), reflecting 1,427 organic tenancy additions and 1,264 additional tenancies through the acquisition of Free Senegal’s passive infrastructure assets. Tenancies increased by 683 quarter-on-quarter (Q2 2021: 17,090).
Tenancy ratio decreased 0.06x year-on-year to 2.03x (Q3 2020: 2.09x), reflecting the dilutive impact of the acquired assets from Free Senegal (Senegal Q3 21 tenancy ratio: 1.06x). Excluding Senegal, the Group’s tenancy ratio expanded 0.09x year-on-year to 2.18x.
Helios Towers continues to monitor the impact of COVID-19 on its operations. The telecommunications sector has been classified as an ‘essential service’ in our markets, allowing us to operate at our normal high levels of service. To date, there has been minimal impact on the Group’s delivery of service and operational execution.