In This Article:
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Revenue Growth: Up 11% year-on-year.
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EBITDA Growth: Increased by 19% year-on-year.
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Portfolio Free Cash Flow Growth: Up 14% year-on-year.
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Return on Invested Capital (ROIC): Increased by 2 percentage points.
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Leverage Reduction: Decreased by 0.2 times in the quarter and 0.6 times year-on-year.
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Tenancy Additions: 1,600 additions in H1 2024.
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Tenancy Ratio: Expanded by 0.14 times to over two tenants per tower.
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EBITDA Margin: Increased by 3 percentage points to 53%.
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Free Cash Flow: Improved to an outflow of $10 million compared to a negative $40 million outflow in the same period last year.
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CapEx: Total of $80 million in H1 2024, with $38 million in growth CapEx.
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Debt Refinancing: Raised an $850 million five-year bond at a 7.5% coupon.
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Net Leverage: Decreased to 4.2 times, a reduction of 0.6 times year-on-year.
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Adjusted EBITDA Guidance: $410 million to $420 million for the full year.
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Portfolio Free Cash Flow Guidance: $280 million to $290 million for the full year.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Helios Towers PLC (HTWSF) reported a record number of over 1,600 tenancy additions in H1 2024, contributing to a tenancy ratio expansion to over two tenants per tower.
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Revenue increased by 11%, with EBITDA and portfolio free cash flow up by 19% and 14% respectively, demonstrating strong financial performance.
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The company successfully reduced leverage by 0.2 times in the quarter and 0.6 times year-on-year, with debt secured at fixed rates for the next five years.
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Helios Towers PLC (HTWSF) received credit rating upgrades from Moody's, S&P, and Fitch, reflecting improved creditworthiness.
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The company is on track to achieve its full-year guidance, with tightened guidance for tenancies and EBITDA, indicating confidence in continued growth.
Negative Points
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Despite strong H1 performance, the guidance for H2 suggests a significant slowdown in tenancy additions, raising concerns about growth momentum.
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There is cautious optimism regarding the full-year outlook, with no significant upward revision in the higher end of EBITDA guidance.
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The company faces challenges in maintaining consistent site additions, with a focus on colocation rather than new site builds.
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FX impacts and tax payments were higher than expected, affecting financial results and cash flow.
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The investment environment remains uncertain, with no immediate plans for large M&A expansion despite potential opportunities if bond yields decrease.