Q3 2025 IHS Holding Ltd Earnings Call

Speaker #1: Good day and welcome to the IHS Holdings Limited . Third quarter 2025 earnings results call for the three month period ended September 30th , 2025 .

Speaker #1: Please note that today's conference is being webcast and recorded. If you would like to ask a question, please press star and then one on your keypad at any time.

Speaker #1: At this time , I'd like to turn the conference over to Please Robert Berg . go ahead , .

Speaker #2: Thank you .

Speaker #2: Operator . Thanks to everyone for call today . joining the I'm sir

Speaker #2: Sam Darwish , our chairman and CEO . And Steve Howden , our CFO . This morning we our filed unaudited condensed consolidated interim financial for the three statements month and nine month periods ended September 30th , 2025 with the which SEC , can now found on be Relations section of our website Investor , and issued a related earnings release presentation and supplemental deck .

Speaker #2: the consolidated of IHS results Holding Limited , which listed on the is Stock and Exchange under These are the symbol IHS , and which ticker entirety of the group's operations .

Speaker #2: Before we discuss the results, I would like to draw your attention to the disclaimer set out at the beginning of the presentation on slide two, which should be in full along with the cautionary statement regarding forward-looking statements set out in our earnings release and 6-K filed as well.

Speaker #2: . In particular , the information to be contain forward statements discussed may . By their looking nature , forward looking statements involve known and unknown risks , uncertainties and important other difficult to predict and that may be beyond our factors that are including those risks .

Speaker #2: Factors section of 20 F with the our form Commission and Securities filings with SEC . As a result , actual the performance or filed achievements , or industry results may the be materially from any future results , performance or achievements , or industry results expressed implied by these forward looking statements .

Speaker #2: or as Als-csf important in assessing the our liquidity of consolidated net leverage ratio that we view important managing the capital resources of our business .

Speaker #2: We'll also refer to non IFRS measures , including adjusted different EBITDA , that as important in assessing the performance of our we view .

Speaker #2: in reconciliation of non IFRS metrics to the nearest IFRS can be metrics earnings our presentation , which is available on the Investor Relations section of our as website .

Speaker #2: And with that , I'd like to turn the call over to Sam Darwish . Our chairman and . Thanks . Rob .

Speaker #3: Good morning

Speaker #3: , everyone , and CEO welcome to our third quarter 2025 earnings results call . I'm pleased to report that we've delivered another quarter of strong results ahead of expectations with strong across all our key , revenue metrics , adjusted EBITDA and FCF .

For looking ahead, our priorities remain clear. First, maintain our focus on reducing debt while driving continued organic growth across the business.

Second remain disciplined in how we allocate capital. And as we near the lower end of our leverage Target, consider introducing dividends, and or share BuyBacks.

Third, we accelerate efficiency gains by integrating more technology and AI into our operation.

For actively identify and pursue the most attractive. Organic growth opportunities in response to strong customer demand prioritizing opportunities with the highest returns.

And finally further disposal activity remains under consideration and we are continuing to assess additional value creative disposal opportunities.

We remain excited by the substantial opportunities for organic growth across our markets, especially Brazil and Nigeria.

To take advantage of the ongoing rollout of 5G within our footprint.

In Nigeria carrier, tariff hikes and strengthening, naira are underpinning. Our growth story with robust demand, across, our footprint were set for sustained, growth and strong returns.

As we move forward, we'll stay disciplined building. The business, boosting free cash flow and strengthening the balance sheet.

All with a clear focus on, delivering shareholder value while we continue to grow.

With this in mind we expect to share a comprehensive update on our Capital, allocation priorities at the full year 2025 results.

So we look forward to sharing that with you soon.

And with that, I'll hand it over to Steve.

Thanks, Simon. Hello everyone. Let's take a look at slide 8 where we share our 3Q, 25 performance.

We're really pleased our third quarter results which again came in ahead of expectations with positive operating and financial progress supported by the continued favorable macroeconomic environment in Nigeria.

As we look at the results, please note the year-over-year comparisons are impacted by some items.

Firstly, the Kuwait disposal in December 2024 means there's no meaningful contribution this year.

For context Kuwait, added 13 million of Revenue and adjusted ebitda in the third quarter of last year.

To be clear. We expect this to have only a limited Financial impact over the coming years.

And then, thirdly, there are the ongoing impacts of the near-term site turn linked to the renewed and extended contracts with MTN Nigeria in August of last year.

In terms of the results year-over-year towers and tenants both decreased approximately 4% reflecting the impact of the Kuwait. Disposal

while tenant count, also reflects the 9 mobile Tenney chair and we just addressed

Excluding the impact of these 2 items. We added 1,652 net new tenants year on year.

Lease amendments increased by more than 2,800 driven by continued incremental demand for ancillary services.

On a reported basis, in the third quarter, revenue was 8.3% up, despite a 3% inorganic revenue headwind from the Kuwait disposal.

Organic growth was approximately 7% driven by almost 9% constant currency growth and favorable movements in FX as the naira continue to appreciate against the dollar.

As a reminder, the naira average FX rate was 1,601 naira to the dollar in the third quarter of 2024.

and was 1,523 naira to the dollar in the third quarter of 2025

following the end of the quarter, the nairas continued to appreciate ranging between approximately 1,430 and 1,470 naira to the dollar.

As previously mentioned at justatee, but dark came in ahead of our expectations, increasing more than 6% year on year, despite no longer owning our co8 assets, which contributed, 83 quarter of last year.

Adjusted ebit, dump margin was down, 100% year-over-year for reflecting a now. Normalized cost level in our subsara, and African segment and higher power generation costs. Albeit the margin was up 20 basis points versus last quarter.

Meanwhile, alcf increased by more than 80% versus third quarter. 2024 with the comparison, again, distorted by a very different interest rate profile, quarter to quarter in 2025 versus 2024, which emanates from the November 2024, boundary financing.

As a reminder, following that refinancing our bond, interest payments are now primarily due in the second and fourth quarters of the year.

Whereas in 2024, they were more evenly spread.

Our level of capex investment increased by approximately 16% in the quarter, largely driven by our end Nigeria segments, reflecting the phasing of maintenance capex and augmentation capex for collocation and lease amendments.

Down 0.6 times versus the third quarter of last year.

And as Sam mentioned, we're well within our target range of 3 to 4 times and expect to be at the low end of the range by the end of 2025.

The 3.3 times does not yet reflect the sale of our Rwanda business, that closed this past October and therefore excludes the initial payment of 175 million that we received post quarter end.

Slide 9 shows the components of our 3Q 2025 revenue on a Consolidated basis where you can see how the business delivered organic growth of almost 7% with more than 8% growth, on a reported basis, despite the impact of the Kuwait. Disposal

From a constant currency perspective Revenue grew approximately 9% driven. Primarily by CPI escalations, new collocations, new lease amendments and new sites.

Continued positive signs of the fundamental underlying tendency growth continuing across AI markets.

Our revenue from Power indexation declined, due to Falling diesel prices During the period. The associated fall in diesel costs. Largely offsets this impact resulting in minimum effects on our adjusted. Eva de and cash flow.

And that was more than offset by the FX tailwind, mostly from Nigeria.

the right side of the page shows, the organic growth rates of each of our segments for the quarter within Nigeria segment, having grown 5%, despite the near-term churn from MTN Nigeria after last year's, renewal

And latam growing more than 11%, which is mostly Brazil.

A Sam mentioned we recently signed a new site agreement with Tim that aims to build up to 3,000 sites over 5 years in Brazil, with an initial minimum deployment of 500 sites over 2 years across multiple regions of the country.

And exciting development, which will help underpin our growth in the latam segment, over the coming years.

On slide 10, you can see our Consolidated Revenue adjusted ebitda and adjusted ebit da margins for 3 to 25 as we've already discussed and specifically in 3 key 25, our adjusted ebit da was 261 million and our adjusted debit done margin was 57.5% continuing the trend of higher margins. We've seen in recent quarters,

On slide 11. We show our adjusted level free cash flow.

in the third quarter, 25, we generated alfc of 158 million and 81% increase year-over-year, reflecting actions taken to improve free cash flow generation and the lower interest payment in the quarter as previously said,

Cash conversion rate was 60.4%.

On to capex. And in the quarter capex of 77 million increased 16% year on year, primarily reflecting the phasing of Maintenance, capex and augmentation capex in Nigeria.

And as Sam said, we will update you on our next phase of capital allocation strategy at the full year 2025 results.

On the segment review on slide 12. And I'll start with Nigeria Revenue in the Nigerian segment was 268 million in the quarter. During the quarter, we added over 220 new collocations and Lis amendments continue to be an important driver of growth as we integrated over 1,750 new lease amendments since the end of June with our customers continuing to add additional equipment to our sites.

It's helped lead to organic growth of 5% year on year, despite an approximate 8 million reduction in revenue from the approximately 510 vacated tenants and 980 vacated lease. Amendments related to the ongoing 1,050 MTN Nigeria site churn

On a reported basis Revenue increased approximately 11% year on year, driven by a combination of healthy Mino activity and FX Tailwind.

In the third quarter, with 25 segments, adjusted EBITDA in Nigeria was $170 million, a 7% increase from a year ago, primarily reflecting the increase in revenue. I've just mentioned.

Segment adjusted debit done, margin was down 230 basis points to 63.3%, primarily reflecting an increase in cost of sales and admin expenses. Reflecting an adjustment associated with the updated agreement with 9 mobile,

As well as increases in the cost of diesel and electricity.

With costs also enhanced by the appreciation of the naira.

From a macroeconomic perspective, in Nigeria Trends, remain encouraging.

Inflation ease for the sixth consecutive month to 18%. Its lowest level in more than 3 years.

Nigeria's FX market was a tailwind for our business through the quarter, with an average NAS dollar rate of $1,523.

Although current levels are lower.

Overall, the country continues to make macroeconomic progress and investor confidence appears to be returning.

In our subs in the African segment, revenue increased 13%, while adjusted EBITDA decreased just over 1% year on year.

This Revenue growth was driven by new tenants, and collocations and partially offset by lower revenues, from FX resets.

The year-over-year decline in adjusted EBIT reflects an increase in costs, primarily driven by increases in regulatory fees. This is due to a regulatory fee accrual released in the third quarter of 2024.

Compared to a more normalized cost level in the third quarter of this year.

In our latam segment thousand, tenants grew by 6% and 8.9% respectively versus third quarter 24. As we added over 300 collocations and 280, new sites during the year which helped lead to 11% organic growth year-on-year.

Basis, revenue increased by over 13% year on year, driven by continued 10% growth in lease amendment activity as well.

In Brazil, our second largest market with 8,586 Towers macroeconomic conditions were favorable in the third quarter as the Brazilian Ray. I appreciated against the US dollar and the Brazilian Central Bank held rate steady with the Benchmark, cilic rate at 15%

Moving to Latin profitability and segment, adjusted EBITDA increased by almost 22%, while segment adjusted EBITDA margin increased by 560 basis points versus the third quarter of 2024, which mostly reflects a reduction in expenses from various cost-saving initiatives.

A slide 14, a capital structure and related items. That's September, 3025. We had approximately 3.9 billion of external debt and IRS 16 lease liabilities, and that's broadly stable with the last quarter.

Of the $3.9 billion, approximately $2.2 billion represents bond financing.

And our weighted average cost of debt remained 8.3% following the 100 basis. Point reduction. We saw last quarter stemming from the high interest debt that we paid down in Nigeria and Brazil.

Following the end of the quarter we closed the Rwanda transaction and therefore our 3Q balance sheet and Consolidated net leverage. Do not yet reflect the 175 million of initial proceeds that we have received

Caption cash equivalents were $651 million as of September 30th, to $951 million, of which $100 million is the undrawn group RCF.

In terms of where that cash is held approximately 18% was held in naira at our Nigeria business. So we have continued to Upstream since the quarter end.

Consequently, our Consolidated, net debt was less than 3.3 billion at the end of September.

Our Consolidated. Net leverage ratio was 3.3 times down 0.1 time since the end of June and down, 0.6 times year on year.

We expect leverage to be at the low end of our Target, 3 to 4 times, net leverage ratio by the end of the year, with our position now, supplemented by the cash proceeds that we received from the Rwanda disposal post quarter end.

On to slide 15 and a SAM mentioned at the beginning, given the strong performance across our business, in the third quarter. And I continued positive view on the remainder of the Year where again, raising our full year 2025 guidance.

We now expect Revenue in the range of 1.72 to 1.75 billion dollars and that's a 20 million uplift from our previous guidance.

Uplift.

Uh, we expect Alf CF in the range of $400 million to $420 million, and that's a $10 million uplift as well.

While total capex remains unchanged in the range of 240 to 270 million including an assumption of 600 new sites.

A Consolidated, net leverage ratio, Target of 3 to 4 times, still remains unchanged as of now.

A guidance continues to show solid revenue growth in 2025 versus 2024, especially when excluding the impact of our disposals, as well as very strong growth in adjusted and ALFC.

Our year to date. Performance has been ahead of expectations driven by a strong operating and financial performance.

And new guidance factors in strong constant currency growth assumptions and now reflects a more favorable FX environment.

The new guidance implies an organic Revenue growth rate of 10% of the midpoint.

The stronger FX assumptions are outline shortly provide translation, Tailwind that support our reported numbers. However, this benefit is partly offset by a lower contribution from FX resets, which is reflected within organic Revenue.

We are also now, assuming a lower benefit from Power, indexation driven by lower diesel prices. Although, as a reminder, given our power prices will also fall, these movements will have limited impact on our adjusted ebit da and alsf.

a guidance is inclusive of the contribution from the company's Rwanda operations, up until the completion of its disposal on October the 9th 2025

Moving to FX the bottom of the slide shows, the average annual FX rate assumptions used in our 2025 guidance.

For the full year. We're now assuming a rate of 1,535 naira to the US dollar compared to our previous, Assumption of 1,595 naira to the dollar.

And that includes an assumption of 1,500, naira flats for the fourth quarter.

We are also Now using stronger FX assumptions to varying degrees for other FX rates on this slide helping to support our expected 2025 overall financial performance.

This now brings us to the end of our formal presentation. We thank you for your time today, and operator, please now open the line for questions.

Thank you, as a reminder to those on the phones. Please press star 1 to raise your hand.

Our first question for today comes from Richard, Cho of JP Morgan.

Your line is now open. Please go ahead.

Hi. Um, I want

Hey Richard. Um, so a few points on that. So firstly what we're seeing from the likes of MTN Nigeria from Airtel, Nigeria, um, is really strong, uh, Financial results as you might expect having passed through the 50% carrier increase or Carrier a tariff increase. So, um, MTN Nigeria, reported a couple of weeks ago. They're 63% up on Revenue, um, i-bidder, even more than that and they're at a 53% margin now uh, Airtel Nigeria, not too far behind 56%, Revenue growth and a 57% margin. So uh, by those carriers, really strong really healthy. Um, in terms of a capex, they both, um, spend a reasonable amount, uh, over the past few quarters and particularly around densification coverage and quality of service.

We're we're pleased with Where We Are.

And not trying to look too far ahead, but it seems like the opportunity in Brazil is pretty significant. Um, but I guess also kind of keeping in mind wanting to um be mindful of the capital allocation.

How much should we expect? Kind of the firm's willingness to invest in Latin America um, as a growth driver over the next few years.

Yeah, uh, definitely right to call that out, and send a note that we've obviously um, um, put a little bit of Spotlight on, um, throughout the pullback on Capital allocation over the last couple of years. Um Brazil particularly on the tower side was 1 area that we really wanted to continue uh growing um that thesis very much continues. Um, people will have seen the announcement around, uh, our new rollout with Tim, um, uh, that's 500 sites in the next couple of years, but up to 3,000 sites in totality. So I think that really underpins, um, you know, growth forecasts that we've always had with that market. Um, we hope to add some more around that as well. And, you know, Brazil will continue to be, you know, an Avenue for growth capex for us, particularly on the tower side. Um, uh, so, you know, we're we're we're really positive about that market.

Great. Thank you. Hi Richard. This is Sam. If I may add, we've never, we've never froze. The the growth in Brazil and at the moment despite Global headwinds Brazil's economy remains solid in GDP is up 2.3%. The real is stronger today at 5.3 to the dollar and the Telecom sector is growing 6 to 7% year on year, with margins nearing 50%. I mean, it's an amazing performance. Uh, even stronger than what we have here in the United States. In terms of growth and margins with again currency, strengthening against the dollar and as the carriers densify 5G networks and and grow their coverage, our infrastructure sites, sit at the center of that growth, they're benefiting from both volume expansion higher tenancy efficiency. Again, this is evidenced by what we just announced the 3,000 power built with Tim over the next few years and potentially other rollout projects that could be announced in the future. So we are very excited about Brazil. I mean, we have

been and we remain excited about this, is it?

Seems like a great Market.

Thank you.

Thank you. Our next question comes from Michael Rallis of City the lines now open, please go ahead.

Thanks and good morning. Um, I wanted to follow up on your comments about maybe updating Capital allocation and possible returns to shareholders with the year end results. Can you give us an update on how you're thinking about dividends versus BuyBacks versus financial leverage?

And, uh, within that context, um, I I don't believe you shared a number, but where does leverage sit pro-forma for the completed transactions that were done early in the fourth quarter, but not included in the, you know, end of 32 leverage ratios, there may have you know, 1 other follow-up. Thanks.

Hey Mike. Um so I'll take that all together. Um the the last point on pro-forma Leverage is about 0.1 down. Uh so 0.1 reduction on Leverage um and as we've you know, been saying for a quarter or 2 now, we expect our leverage to be 3 3, 3 times to 3.1 Times by the end of the year. Um, so we're very much on track uh, to deliver that. Um, that obviously goes into the wider Capital, allocation question, which, you know, we said earlier on the call, we will update fully at the year end, uh, results in terms of what we intend to do, just to put a little bit more color around that. Um, so we're really thinking in 3 buckets. Um, you know, we've just started on the previous question to talk about, um, some growth capex. Um, so we're looking at that as to whether, um, we think there's some really attractive, uh, return opportunities across our markets. Um, I would expect us to

USD Term Loan, uh, due 2027 as well, so that that's kind of in our thinking around debt. Um, but we feel pretty good about the balance sheet, um, where it's going to be by the end of the year. Uh, and then continuing to deliver, um organically if you like after that,

Um and all of that leaves, kind of plenty of opportunity. Let's say, um, to to think through some some direct shareholder returns and whether that's, you know, dividends or share BuyBacks, I don't want to go into that at this stage, we'll cover that, you know, the year end results. Um, but certainly there's there's ample room for that given the cash generation of the business.

And then probably just the final Point, um, to be clear. Um, we are not assessing, uh, outbound acquisition opportunities at this point in time. Um, so we won't be uh, buying anything.

That's very helpful and just you know, 1 more if I could um you know, for investors that are trying to compare your financial prospects with other Tower companies around the world. Can you give us an update on just how to think about the annual Financial algorithm? You know, in terms of the underlying organic Topline that you would expect your business to deliver on average in any given year and how that can translate into ibida and Alf CF per share growth. Thanks

Um, yeah, so in in each of our quarters, um, we try to provide uh, something that we think is helpful to folks, from a Topline perspective, which is our growth bridge and we share on there. It's page 9 in this quarters, um, uh, investor pres. Um, and that gives us a headline growth. It gives you what we call organic growth. Uh, and it gives you a constant currency growth as well.

and the reason we,

Cut differently. They can

Operator. Apparently, we lost sound.

Hey, Mike, can you hear me? Sorry, I think we lost some sound there. I can.

Sorry. Where did we, where did we lose you? Sorry, I was, I was on a monologue about our growth bridge, where did I lose you?

Uh, I'm either.

On a bit. Okay, so so yeah, Power obviously doesn't pass through to ebit Da. So we just highlight that and the differences around that in in Revenue. Um, so that gives people a lot of different ways that they can look at our, our Revenue, um, and then, in terms of how that flows down into ebit da, um, really the, the only, I would say nuances between the revenue growth and ebit D growth from a mechanism point of view. Um, is the power item I just mentioned and, which doesn't affect you, but D, because it's 1 for 1, it's a pass through, um, and then obviously FX if it affects Revenue to some extent, it will affect ebit da, which is smaller to a smaller extent, um, but otherwise people should just track at either margins. Um, as a as a good way to uh to to flow through to ibida um, and then V. And then moving on to alfc F probably the only other uh area of difference other than just tracking through is our interest rate profile which we've spoken about quite a bit this year. Um it's low interest in q1 and Q3 and higher interesting Q2

Thank you for, um, because of the way our bond interest is phased. Um, but other than that, um, you know, nothing, nothing. Um, out of the ordinary.

Thanks very much.

Thank you. Our next question comes from Gustavo, Campos of Jeffreys.

Your line is now open. Please go ahead.

Effect on the capital structure performer.

On your net leverage. Um, did did that? Yes, I get this. Yeah, yeah. So the consideration is coming in over a period. So we've received 175 million in October, uh and the balance, uh, 100, um, is due to come in over the next couple of years. So in the Pro for impact, I gave you. I'm talking about today's pro for impact using 175 dollars of precedes. The balance will come in later and will be additive and that that's the difference between your 0.2 and my 0.1.

um,

Okay, understood. Yeah. Uh, thanks for that clarification. And uh, when are you expecting the the the additional 100 million?

Um, so it's up to 2 and 3 years away. There's 2 tranches, and you'll see it written in all of our disclosure, the last quarter and this quarter. Um, so, 70% of it comes in the next 2 years. The balance comes, uh, in 3 years; it could come sooner. Um, those are up to date.

And understood understood. Thank you very much for that. I also also wanted to, to clarify here, on your guidance review. Uh, is it correct to is my understanding correct that the guidance was only because of, uh, FX but basically, uh, or was there some other other factors to be incorporated here, uh, are you just assuming stronger look with

Effects for the end of the year.

Yeah, I mean, it's obviously year to date performance through Q3 but then yes, for the balance of the Year, effectively, it's FX.

Um oh okay. Okay, thank you. And uh uh also I just wanted to clarify on your debt reduction strategy, you mentioned that you are focused on the front end bonds and maybe your dollar Term Loan. Are you planning to uh, call the 26 and and the 27th Bond? I we understand that that you know, for example, the 27s are already callable uh that in the 28th are already callable from December 2025, right? Uh,

So should we be thinking about this uh, callable date? Or should we think about, you know, maybe some Redemption closer to maturity? Um, any

Any visibility on your, uh, three front-end bonds would be very helpful here and how we should think about your capital allocation strategy. Thank you. Yeah, so, you're right, some are callable now, some are not callable yet. Um, that mix of timing obviously goes into our thinking in terms of what we end up doing, so I don't want to comment on things we haven't done at this point in time, especially on the bond side of things.

Um, but you're, you're right in your thinking around the different time periods and the different, uh, instruments that we are focused on. So um you will hear from us on that as soon as it's as soon as it's ready.

Okay. Yes. Uh uh thank you very much. Uh I was uh final clarification for my site. Uh could you please give us some some quick review again on? Why did your site in Nigeria dropped by 500 uh Towers quarter of a quarter? I understand that there was like uh yeah, I think you mentioned on the call the MTN site churn and you also mentioned the 9 mobile. I'm I'm just trying to understand how much of an impact to those 2 factors had and uh and should we expect that? Maybe a, uh, more materialization of this impacts in the in the future or or that's it. If that's like the 1 off,

Uh, yeah, so we said, um, earlier in the call that the MTN, um, turn impact that $8 million in the quarter versus this time last year. So that gives you an idea of where we're up to with them. Um, as and when we, uh, uh, churn tenants, we will assess. Whether we think that, um, you know, the sites, um, have a good opportunity for other. Uh, Co are the collocations or other tenants to go on them. Um, so you will see an element of us. Um,

A rationalizing towers, if we think that that's not the case. Um, and that's really all you're seeing there. So as we go through the MTN churn and a bit of, uh, and the 9mobile churn, um, we will, uh, tidy up the tower base as well. That's obviously so that we save the cost and running, uh, capex of monitoring, uh, operating those towers. If we haven't got a ton on.

Any size are they moving from as part of kind of like, long-term consolidation for them. So this just happened as we renewed uh uh the mlas by another 8. 9 years. If I remember uh correctly 1, more thing. I do want to add about Nigeria is that Nigeria is also firing on a lot of cylinders at the moment, as a country, the current Nigerian Administration has done in in, in our opinion, a great job in stabilizing and improving the economic Outlook of the country as as increased reserves and the currency while reducing red tape for businesses among other fundamental actions. So we are also upbeat about Nigeria at the moment.

I understood some that and thank you. Thank you very much for for the, the recap here. Uh, so we you, uh, we should basically, uh, be done here with like reduction of of, of strikes uh, in in this quarter, uh like this. This was like kind of like the last quarter where we saw some, some reduction in insights that is that correct?

Yes, yes. Yes. It's part of the number that was agreed with them last year.

Okay, yeah, thank you very much. Go ahead.

Thank you.

Our next question comes from Stella krige of B plays.

Your line is now open. Please go ahead.

Hi there morning, all and many. Thanks for all the updates so far and there's just a couple of follow-ups so um if you you receive the Rwanda precedes, the cash balance would be uh quite High.

I just want to go forward. What do you reckon would be the kind of cushion that you would like to maintain in terms of how much headroom you've got to actually reduce gross debt with the cash? That would be great. I just want to get a sense in terms of, you know, capital structure. You know, bonds recently have made up, you know, quite a chunk of the overall capital structure, but over two-thirds, you know, is that kind of the right level for you, or would you like to kind of have a bit more of a balanced approach between bonds and other instruments? Just great to get some color on that. Thank you.

I thought, um, so on the cash balance, that we really look at the group cash. Balance as being the key, um, uh, sort of, let me say cash buffer that we're always monitoring, uh, and there we we like to see all the 150 to 200 million dollars. Um, at any 1 time at the group level. Um, we're actually materially higher than that, at the moment, um, um, but that's kind of how we monitor it. And otherwise within the businesses themselves, the op co uh, we run them based on, you know, their own working capital and capex requirements. So it's mainly the 1.

Group that we focus on. Um so that's kind of how we think about things. Um and your second question on bonds. Um, to be honest we like to have term loans and bonds at any 1 time.

Um there are periods in time as we go through Cycles where the bond markets are open and doing well, there are periods when they're not open and not doing so well. Um so we like to keep a balance of both of those types of instruments uh within our capital structure. Um so we have you know a a I think a good track record in history with you know our bond holder Community um and we also have a really strong um pool of banking relationships as well. Um so we like to have both in terms of the absolute mix um to be honest. That that isn't something that we that we necessarily think too much about. Um, it's more around. What's the denomination of the of the debt? Um, and I guess closer to the bond part of the question is, how much is fixed or floating? Um and as we've said before um we want to get uh the currency denomination back close to our Revenue um which is more like 61.62% hard currency at this point in time. So we want to get that 85% dollar denominated debt back close to 61%

Um, and then fixed floating. Um, you know, we're just over two-thirds, uh, fixed at the moment. Um, and fixed is obviously, um, more preferable, um, providing the rates are good.

Comment. Thanks.

Thank you. That brings us to the end of the IHS holding limited third quarter, 2025 earnings results. Call should you have any more questions? Please contact the investor relations team via the email address investor relations at IHS towers.com

Better management team at. Thank you for your participation today, and I wish you a good day. You may now disconnect your lines.