RESULTS FOR THE THREE MONTHS ENDED 31 MARCH 2020

Guidance for 2020 remains unchanged

Business underpinned by long-term contracted revenues with blue-chip mobile network operators

London, 14 May 2020: Helios Towers plc (“Helios Towers”, “the Group” or “the Company”), the independent telecommunications infrastructure company, today announces results for the three months to 31 March 2020.

 

Q1 20

 Q1 19

Change

Q1 20

Q4 19

Change

Sites

6,991

6,716

+4%

6,991

6,974

0%

Tenancies

14,677

13,600

+8%

14,677

14,591

+1%

Tenancy ratio

2.10x

2.03x

+0.07x

2.10x

2.09x

+0.01x

Revenue (US$m)

101.8

93.7

+9%

101.8

99.8

+2%

Adjusted EBITDA (US$m)1

54.0

48.8

+11%

54.0 53.7 +1%

Adjusted EBITDA margin1

53% 52% +1ppt 53% 54% -1ppt

Operating profit / (loss) for the period (US$m)

12.1 7.0 +73% 12.1 -17.3 +170%

 

Financial highlights

  • Q1 2020 Group revenue increased by 9% year-on-year to US$101.8m (Q1 2019: US$93.7m) driven by the continued growth in the number of sites and tenancies across the Group.
    • Q1 2020 Group revenue increased by 2% quarter-on-quarter to US$101.8m (Q4 2019: US$99.8m).
  • Q1 2020 Adjusted EBITDA increased by 11% year-on-year to US$54.0m (Q1 2019: US$48.8m), reflecting both tenancy growth and continued improvements in operational efficiency, with Q1 2020 Adjusted EBITDA margin at 53% (Q1 2019: 52%), up 1ppt.
    • Q1 2020 Adjusted EBITDA increased slightly quarter-on-quarter to US$54.0m (Q4 2019: US$53.7m), with Q1 2020 Adjusted EBITDA margin at 53% (Q4 2019: 54%), down 1ppt.
  •  Q1 2020 operating profit increased by 73% year-on-year to US$12.1m (Q1 2019: US$7.0m).
    • Q1 2020 operating profit increased by 170% quarter-on-quarter to US$12.1m (Q4 2019: US$17.3m loss).

Operational highlights

  • Helios Towers continues to monitor the impact of COVID-19 on its operations and to date there has been no significant operational impact. Mobile infrastructure operators are classified as an 'essential service' in our markets and we continue to operate at our normal high levels of service.
  • Increase in tenants of 8% year-on-year to 14,677 tenants (Q1 2019: 13,600 tenants). Q1 2020 tenancy number increased by +86 quarter-on-quarter to 14,677 (Q4 2019 14,591).
  • Increase in sites of 4% year-on-year to 6,991 total sites (Q1 2019: 6,716 total sites). Q1 2020 number of sites increased by +17 quarter-on-quarter to 6,991 (Q4 2019 6,974).
  • Tenancy ratio increased year-on-year by +0.07x to 2.10x (Q1 2019: 2.03x). Q1 2020 tenancy ratio increased +0.01x quarter-on-quarter to 2.10x (Q4 2019: 2.09x).

1 Refer to full definitions in the Alternative Performance Measures section in this announcement.

2020 Outlook and guidance

  • Based on our current assessment of COVID-19 impact, guidance for 2020 remains unchanged.
  • Helios Towers will continue to monitor the current COVID-19 situation in its markets and will provide further updates on 2020 outlook at the half-year results.

KASH PANDYA, CHIEF EXECUTIVE OFFICER, SAID:

“The first quarter of 2020 saw our business deliver in line with expectations, with strong top-line growth and Adjusted EBITDA performance. It demonstrates the power and leverage of our business model, the operational excellence driven by our people and the dependability of our long-term contracted revenue with our blue-chip customers. Following the outbreak of COVID-19, these attributes will serve the business well going forward. Our priority is the health and wellbeing of our people and those who are supported and connected by Helios Towers across sub-Saharan Africa. Never before has reliable connectivity been so vital, and at the heart of our sustainable business model is intrinsic infrastructure for a connected society.”

SIR SAMUEL JONAH, CHAIR, SAID:

“Following its first full quarter as a listed company, Helios Towers continues to trade strongly. A key focus for the Board is business resilience – it is a fundamental part of the service we provide to our customers and central to our value proposition, from the systems and processes we have in place, to the training we provide to our employees and business partners. Ours is a business familiar with the challenges of local and regional health issues, and since the COVID-19 outbreak we have focussed on the health and wellbeing of our people. Regardless of location, our employees have made the necessary adjustments to adapt well to remote working, while adopting the health and safety practices required to provide continued excellent service to our mobile network operator clients, their customers, communities and economies across sub-Saharan Africa with the mobile connectivity they expect and need.”

Investor Relations

Manjit Dhillon

                                         

                  +44 (0)776 723 7010

 

Media Relations
Edward Bridges / Stephanie Ellis FTI Consulting LLP +44 (0)20 3727 1000

 

Read the full announcement here

Helios Towers management will host a conference call for analysts and institutional investors at 09.30 BST on Thursday, 14 May 2020.

Dial in details for the conference call are:
Europe & International +44 (0)20 3727 1000
South Africa (local) 087 550 8441
USA (local) 1 646 664 1960
Passcode 408271


About Helios Towers ("HT")

  • Helios Towers is a leading independent telecommunications 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.
  • Helios Towers 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 has established a presence in South Africa in 2019.
  • Helios Towers 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.

FOR FURTHER INFORMATION GO TO:

www.heliostowers.com

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