Helios Tower has announced that its revenue increased by 4 percent year-on-year to USD 212.4 million in the first six months to 30 June compared with USD 204.0 million in the same period in 2020. This was driven by continued organic tenancy growth throughout the group and the addition of 1,264 tenancies via the acquisition of Free Senegal’s passive infrastructure assets, which closed in Q2. Revenue in the second quarter rose by 5 percent to USD 108.8 million compared to USD 103.6 million in Q1 2021.
Adjusted EBITDA increased by 5 percent year-on-year to USD 114.2 million in H1 from USD 109.1 million in 2020 amid tenancy growth and continued improvements in operational efficiency. The H1 2021 adjusted EBITDA margin edged up to 54 percent from 53 percent in 2020.
In Q2, adjusted EBITDA expanded by 5 percent to USD 58.4 million from USD 55.8 million in Q1 including a contribution of USD 2.3 million from Senegal. The Q2 adjusted EBITDA margin was stable at 54 percent.
Operating profit decreased by USD 2.4 million from USD 29.3 million in H1 2020 to USD 26.9 million in H1 2021. This was caused by an increase in deal costs, depreciation and loss on disposal of property, plant and equipment, partially offset by higher adjusted EBITDA and lower amortisation and project costs.
Cash generated from operations fell by USD 42.6 million from USD 88.3 million in H1 2020 to USD 45.7 million in H1 2021, primarily driven by working capital movements including escrow deposit payments in relation to acquisitions.
Helios Towers said it continues to monitor the impact of Covid-19 on its operations. It expects tenancy guidance for the established five markets to remain unchanged, targeting 1,000 to 1,500 tenancies, supported by a robust tenancy pipeline. It expects capex for the group to remain unchanged, targeting USD 110-140 million in its established five markets, of which USD 20-25 million is non-discretionary capex for FY 2021.
Helios predicts USD 215 million of capital expenditure in the sixth market, Senegal, reflecting acquisition capex of approximately USD 190 million and USD 25 million of growth, upgrade and non-discretionary capex. The company also expects a USD 108 million consideration for the acquisition of Airtel Africa’s passive infrastructure companies in Madagascar and Malawi, expected to close in or around Q4 and a USD 575 million consideration for the acquisition of Omantel’s tower portfolio, expected to close in H2 2021.
