Helios Towers (HTWS) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 tenancy additions (+1,649 YTD), driving double-digit EBITDA growth and ROIC expansion, with tightened full-year guidance across key metrics.

• Adjusted EBITDA grew 19% year-on-year to $206.2m, with revenue up 11% and portfolio free cash flow up 14%.

• Net leverage reduced to 4.2x from 4.8x year-on-year, supported by $850m bond refinancing and credit rating upgrades.

• Operating profit rose 91% year-on-year to $132.3m, driven by EBITDA growth and lower depreciation from updated tower asset policy.

• Sustainable business strategy recognized with top ESG ratings and record power uptime.

Financial highlights

• H1 2024 revenue: $390m (+11% YoY); Adjusted EBITDA: $206m (+19% YoY); EBITDA margin: 53% (+3ppt YoY).

• Operating profit: $132m (+91% YoY); portfolio free cash flow: $142m (+14% YoY); cash generated from operations: $176m (+19% YoY).

• Free cash flow improved to -$9.8m from -$37.2m year-on-year; neutral free cash flow expected for FY24.

• EBITDA margin increased by three percentage points to 53%.

• ROIC increased by 2 percentage points, reaching 12.9%.

Outlook and guidance

• FY24 guidance tightened: tenancy additions 1,900–2,100, Adjusted EBITDA $410m–$420m, portfolio free cash flow $280m–$290m, CapEx $155m–$190m.

• Net leverage targeted below 4x by year-end; neutral free cash flow expected, excluding potential Oman acquisition.

• Strong pipeline of tenancies and continued confidence in achieving year-end targets.