Recently, I wrote about Nigeria’s top telecommunication infrastructure company—IHS Holdings, following a downgrade in its credit ratings by Moody’s.
The 21-year-old company's core business is to provide shared telecommunication infrastructure services (like masts and towers), primarily to mobile network operators (MNOs) like MTN and Airtel.
Key takeaways:
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Despite a solid cashflow position, IHS isn’t profitable as it is yet to declare annual net profits.
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However, due to the economic downturn and tech winter, investor expectations are changing towards profits or, at least, losing less money.
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IHS’ losses are due to external factors like higher global interest rates and exchange rate volatility. When these external conditions improve, they should translate into net profits for the company.
By taking the burden of costly tower infrastructures off the MNOs, IHS has undoubtedly contributed to the growth of the telecom industry. IHS enables MNOs to focus on expanding their coverage and delivering voice and
