IHS Towers shares surge 8%, with the company posting a second-quarter profit — a sharp turnaround from last year’s loss — as Nigerian currency stabilization and client tariff increases boosted its bottom line.
The African continent’s largest independent mobile infrastructure provider reported net income of $32.3 million. This marks a significant turnaround from the $124.3 million loss recorded in the same period of 2024, signalling that the company’s strategic pivot is gaining traction.
The New York-listed shares rose 8% to $7.33, a stark recovery from the $2 level where the stock hovered for most of 2024.
The profit swing was primarily fueled by a decrease in net finance costs and the relative stability of Nigeria’s naira.
The performance was also sustained by the full effect of tariff increases for its major clients in Nigeria, its largest market.
“Our confidence is underpinned by the positive backdrop within our largest market, Nigeria, bolstered by the ongoing stability of the naira as well as the carrier tariff rate increases that our Nigerian customers announced earlier this year,” Chairman and CEO Sam Darwish said in a statement. “We remain excited by the significant growth prospects across our footprint, which are supported by the ongoing rollout of 5G across our markets.”
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Despite the return to profitability, quarterly revenue slipped 0.5% year-on-year to $433.3 million. The company attributed this to a one-time reduction of $14.5 million related to a change in its power services agreement with MTN Group Ltd. in South Africa.
The company’s turnaround plan, initiated in late 2024, is showing clear results. A successful 50% tariff hike for key customers like MTN and Airtel Nigeria has been pivotal.
With profitability now sustained, IHS is focusing on “debt reduction and pinpoint execution,” according to its company results.
The company has also streamlined its portfolio, divesting from operations in Peru, Kuwait, and Rwanda to increase shareholder value.
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