Helios Towers Reports Strong Financial Performance for FY 2023
Helios Towers plc, an independent telecommunications infrastructure company, has released its financial results for the year ending December 31, 2023 (FY 2023).
Financial Highlights:
- Revenue Growth: FY 2023 revenue surged by 29% year-on-year to US$721.0m, primarily due to organic tenancy growth and strategic acquisitions in Malawi and Oman.
- Adjusted EBITDA: Increased by 31% year-on-year to US$369.9m, driven by tenancy growth, representing the company’s fastest organic growth since IPO. Excluding acquisitions, Adjusted EBITDA rose by 17%.
- Profit Margins: Adjusted EBITDA margin expanded to 51%, with a 1ppt increase year-on-year. Adjusted EBITDA margin, excluding higher fuel prices, expanded by 3ppt.
- Operating Profit: Jumped by 82% year-on-year to US$146.1m, reflecting Adjusted EBITDA growth.
- Cash Flow: Portfolio free cash flow increased by 33% year-on-year to US$268.2m, surpassing updated guidance. Cash generated from operations rose by 65% to US$318.5m.
- Net Leverage: Decreased to 4.4x, down 0.7x year-on-year, indicating improved financial strength.
I am extremely pleased with the operational and financial performance of the business. In our first year with all recent acquisitions integrated, we exceeded expectations in customer delivery and across our KPIs. This included record organic tenancy growth that supported return on invested capital (ROIC) expansion.
Tom Greenwood, Chief Executive Officer, Helios Towers plc
Looking forward, we have conviction in a faster pace of tenancy ratio expansion than our prior medium-term guidance. As such, we have adjusted our strategic target of ‘22,000 towers by 2026’, which included meaningful inorganic site growth, to ‘2.2x tenancy ratio by 2026’, prioritising organic growth and returns expansion. Consequently, we expect FY 2024 to be our inflection year for free cash flow, and continue to grow thereafter.
We have built a compelling and unique platform in some of the world’s fastest growing mobile markets and through our focus on customer service excellence, are well placed to capture the structural growth and deliver sustainable value for our stakeholders.
