IHS Towers’ profits take a hit despite African gains
August 13th 2025
IHS Towers just dropped its Q2 2025 earnings, and there’s one clear winner in its global portfolio, sub-Saharan Africa (SSA). The region’s numbers popped, fuelled by organic growth and a hunger for mobile connectivity. But while SSA’s performance is glowing, the bigger picture is a bit messier thanks to currency swings and rising costs.
The SSA segment pulled in $127.8 million this quarter, up 18.1% from last year. Most of that came from new colocation deals, extra gear on existing sites, and fresh tower builds. Some smart tweaks, like power indexation and forex resets, also helped cushion the blow from shaky currencies in markets like Nigeria.
SSA is still IHS’s biggest market, with more than 16,000 towers in Nigeria alone. The region’s 644 million people are increasingly online as mobile operators race to roll out 4G and 5G. But profits took a knock, adjusted EBITDA for SSA slid 4.3% to $73.1 million, hit hard by the naira’s volatility and climbing power costs.
Company-wide, things weren’t as rosy. Total revenue dipped 0.5% year-on-year to $433.3 million, while adjusted EBITDA dropped nearly 8% to $219.2 million. The main culprit? Currency devaluation across several markets, with Nigeria alone wiping nearly 30% off adjusted EBITDA. Losses stayed heavy at $1 billion, thanks to a chunky $1.1 billion hit from convertible debt derivatives.
Still, IHS is making moves. It renewed a long-term lease deal with Airtel Zambia, sold its Rwanda operations for $274.5 million, and is doubling down on high-growth markets. Solar-powered towers are slowly replacing diesel, but the savings aren’t yet big enough to offset energy costs.
The outlook? IHS is sticking to its 2025 targets, up to $1.71 billion in revenue and as much as $980 million in adjusted EBITDA. SSA’s growth is doing the heavy lifting, but currency swings, power bills, and geopolitical risks will keep the company on its toes.
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