IHS Towers reduces capex by 49.4%

IHS Holding Limited, a leading independent telecom tower operator, has reduced its capital expenditure in Nigeria by 49.4 per cent year-on-year in the fourth quarter of 2024, citing the near completion of Project Green and a broader focus on cash generation.

The company disclosed the cut in its financial report obtained on Saturday, noting that total capex for Q4 2024 stood at $82.6m, a 36.8 per cent decline from the same period in 2023. The decrease was primarily driven by lower spending in its Nigeria and Latin America segments.

In Nigeria, the capex reduction was linked to multiple factors, including a $17.1m decrease in investment for Project Green, which is now largely complete; a $5.1m cut in augmentation spending; a $3.2m reduction in maintenance costs; and an $8.0m decrease in other capital expenditures.

IHS Towers initiated Project Green in October 2022 to enhance operational efficiency and cut energy costs. The initiative has resulted in annualised adjusted levered free cash flow savings of $49m, slightly below its initial target of $51m.

IHS Towers Chairman and Chief Executive Officer, Sam Darwish, stated, “As we enter 2025, we remain focused on further enhancing our profitability and cash flow generation, as can be seen in our FY25 guidance, and are committed to further strengthening our balance sheet, supported by potential further select asset disposals, allowing us to deliver increasing returns for all our stakeholders.”

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