HELIOS TOWERS PLC *FY 2022 results in line with expectations
*Record site and tenancy growth delivered
*Adjusted EBITDA growth of 24-29% targeted in FY 2023
1. Alternative Performance Measures are described in our defined terms and conventions.
2. Calculated as per the Senior Notes definition of net debt divided by annualised Adjusted EBITDA.
"In my first year as CEO, I am delighted with the team's performance and the progress we have made. We have delivered a number of successes despite challenging global macro volatility: stellar operational delivery for our customers, record tenancy additions, smooth acquisition integration and strong financial performance. We also continued to build the foundations for future growth: investing in our people, focusing on customer service excellence, evolving our strategy, and delivering for our communities, the environment around us and our investors.
All nine of our markets feature substantial mobile growth over the coming years, driven by low mobile penetration today, huge population growth and the demand for higher-quality and ubiquitous mobile coverage. We have built an exciting platform to drive sustainable value creation and organic growth across all our markets in 2023 and beyond, capturing the compelling growth opportunity across the region."Financial highlights
*FY 2022 revenue increased by 25% year-on-year to
-Q4 2022 revenue increased by 6% quarter-on-quarter to
*FY 2022 Adjusted EBITDA increased by 18% year-on-year to
-The decrease in Adjusted EBITDA margin reflects the combined impact of acquired assets with low initial tenancy ratios and higher power costs across the Group, most notably in DRC, that resulted in both higher revenues and power operating expenses.
-Q4 2022 Adjusted EBITDA increased by 7% quarter-on-quarter to
*FY 2022 operating profit increased by 36% year-on-year to a record
-Loss before tax increased to
*FY 2022 portfolio free cash flow increased by 20% year-on-year to
-Q4 2022 portfolio free cash flow increased by 26% quarter-on-quarter to
*FY 2022 cash generated from operations decreased by 1% year-on-year to
-Working capital outflow in the year of
*Net leverage of 5.1x increased by +1.5x year-on-year (FY 2021: 3.6x) and +1.0x quarter-on-quarter (Q3 2022: 4.1x), primarily driven by the acquisitions in
*Contracted revenues increased by 20% year-on-year to
Operational highlights
*Sites increased by 3,993 year-on-year to 13,553 sites (FY 2021: 9,560 sites), reflecting a record 751 organic site additions and the acquisition of 3,242 sites during the year.
-Sites increased by 2,681 quarter-on-quarter (Q3 2022: 10,872), reflecting 162 organic site additions and 2,519 acquired sites in
*Tenancies increased by a record 5,716 year-on-year to 24,492 tenants (FY 2021: 18,776 tenants), reflecting 1,601 organic tenancy additions and 4,115 acquired tenancies through the year.
-Tenancies increased by 3,579 quarter-on-quarter (Q3 2022: 20,913), reflecting 562 organic tenancy additions and 3,017 acquired tenancies in
*Tenancy ratio decreased 0.15x year-on-year to 1.81x (FY 2021: 1.96x), reflecting the acquisitions in
-In-line with Helios Towers' business model, the Company expects to lease-up these acquired portfolios, driving margin expansion and returns.
Environmental, Social and Governance (ESG)
*Helios Towers is committed to sustainable business and its purpose of driving the growth of mobile communications in
*The Company has been positively recognised for its Sustainable Business Strategy and commitment to transparency;
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-B score from CDP (increasing from B- in 2021), reflecting the Company's commitment and progress on climate action.
-87% score for WDI disclosure, including a special mention for 'workforce action' at the Workforce Transparency Awards.
-Inclusion in the FTSE4Good Index, which measures the performance of companies demonstrating strong ESG practices.
*Effective from the 2023 long term incentive plan (LTIP) awards, the Company has introduced an impact scorecard that will account for 20% of the LTIP awards and is designed to measure progress against certain ESG targets included in the Company's Sustainable Business Strategy.
2023 outlook and guidance
*In-line with medium-term guidance provided at the Company's Capital Markets Day in
*FY 2023 Adjusted EBITDA of
*FY 2023 portfolio free cash flow of
*FY 2023 capital expenditure in the range of
-Of which,
For further information go to: www.heliostowers.com
Investor Relations
+44 (0)752 310 1475
Media relations
+44 (0)20 3727 1000
Helios Towers' management will host a conference call for analysts and institutional investors at 09.30 GMT on Thursday,
Registration Link - Helios Towers FY 2022 Results Conference Call
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Password: HELIOS
If you intend to participate in Q&A during the call or are unable to use the webcast, please dial in using the details below:
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Read the full announcement hereAbout Helios Towers
Helios Towers is a leading independent telecommunications infrastructure company, having established one of the most extensive tower portfolios across
Helios Towers owns and operates over 13,500 telecommunication tower sites in
Helios Towers pioneered the model in
The Group has presented a number of Alternative Performance Measures ("APMs"), which are used in addition to IFRS statutory performance measures. The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business. These APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board. Loss before tax, gross profit, non-current and current loans and long-term and short-term lease liabilities are the equivalent statutory measures (see 'Certain defined terms and conventions'). For more information on the Group's Alternative Performance Measures, please see the Alternative Performance Measures section of this release.
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(C) 2023 M2 COMMUNICATIONS, source
