Helios Towers has a strong platform for profitable growth, with leading positions in high-growth markets. We’re supported by our extensive asset base, a pioneering excellence and innovation programme, deep and long-term client relationships, high barriers to entry and a favourable regulatory environment.
- Market-leading positions in three out of five African markets.
- Early market entry allowing for ownership of attractive sites in prime urban areas.
- Skills in reliable power management and tower planning/deployment.
Leveraging a favourable African macro environment
- HT customers are mainly the large MNOs and other telecoms providers, who in turn provide wireless voice and data services to end-consumers and businesses.
- Africa has clear and compelling population and GDP drivers that are propelling its mobile markets forward and, in turn, demand for HT services.
- In our markets the UN forecasts population growth of 37 million over the next five years.
- The combination of Africa’s physical vastness, its lack of fixed line infrastructure, and fast developing economies means that mobile infrastructure is already critical to its societies and economies, with demand expected to continue to grow.
Population growth(1) (millions) (2018 - 2024E)
Strong GDP growth(2) (%) (2018 - 2024E CAGR)
(1) Source: United Nations, World Population Prospects 2019, June 2019
(2) Source: IMF World Economics Outlook database, October 2019
With unique strengths and positioning to deliver on long term growth opportunities
- HT is uniquely positioned as the market leader and sole independent player in Tanzania, DRC and Congo B, with a growing portfolio in Ghana (predominantly high traffic urban areas) and newly established operations in South Africa.
- Combined with the youthful and increasingly urban nature of the populations, and the mobile-dominated internet access and digital economies of these markets, independent forecasts(4) estimate 55 million more mobile subscriptions between 2018 and 2024.
- MNOs in these markets are expected to require around 19,000 additional standard Points of Service (PoS), each of which represents a potential new tenancy for Helios Towers.
- At the end of 2019, HT’s unique asset base consisted of 6,974 sites and 14,591 tenancies – equating to a Group tenancy ratio of 2.09x.
Mobile penetration(3) (%) (2019)
Mobile subscription growth(4) (%) (2018–2024E CAGR)
(3) Source: GSMA Intelligence database, January 2020. Unique mobile subscribers 2019
(4) Source: Hardiman report, August 2019
Through multiple activities, building a platform for profitable and sustainable growth
- Acquire tower portfolios, yielding large long-term contracted revenues.
- Custom build new tower assets for MNOs (build-to-suit).
- Promote tower sharing through multiple MNOs on tower sites (colocation), and multiple technologies on tower sites (amendment tenancies); delivering cost benefits to customers and reducing environmental impact.
- Operate the tower and associated passive infrastructure, providing a full suite of tower-related space, power and operational services. These include:
- Site preparation and construction;
- Site management and maintenance;
- Power management;
- Security and other services.
- Additionally, HT is developing ancillary products and services in fibre backhaul, localised small cell and in-building solutions and data centre services; for potential rollout across the Group.
Adj. EBITDA growth (US$m)
Embedding business excellence in the platform
- Continually improving operational leverage and performance.
- High customer service levels.
- Supply chain optimisation driving efficiencies across the business (“One team, one business”).
- Realised capex savings through reduction in strategic suppliers.
uptime of our towers across all of 2019
in operating companies are local employees
of employees received Lean Six Sigma training by the end of 2019
Using a robust business model, delivering financial strength and sustainable differentiation
- Contracts are protected against power prices and general inflation.
- Contracts are long term, with c.$2.9 billion contracted future revenue with 7.2 years of average remaining life.
- High quality contracts in hard currencies with “Big-5” African MNOs, delivering committed revenues for many years ahead.
- Sustainable lease rates and stable and visible cash flows with diversified customer base.
- Balance sheet strength to continue to support investments.
- Funding and financing options provide flexibility to support long-term growth initiatives.
% Adj. EBITDA in USD/EUR pegged