Helios Towers Share News (HTWS)

(Sharecast News) - Helios Towers delivered a solid first-half performance on Thursday, reporting growth in revenue, profit and free cash flow, and reaffirming its full-year guidance as its '2.2x by 2026' strategy neared completion.

Revenue rose 7% year-on-year to $418.3m in the six months ended 30 June, supported by continued tenancy growth across its tower portfolio.

Adjusted EBITDA increased 9% to $225.5m, with the EBITDA margin expanding by one percentage point to 54%.

Free cash flow rose by $39.7m to $29.9m, while recurring free cash flow grew 40% to $69.5m.

Chief executive Tom Greenwood said the results reflected the company's "robust and predictable business model" and its focus on customer experience.

"Accordingly, we reaffirm our guidance for the full year," he said.

Greenwood added that the group's upcoming capital markets day on 6 November would outline a new five-year strategy, "ambitious targets and new capital allocation policy, all of which will position us to maximise value for all our stakeholders".

Operating profit was up 1% to $133.1m, while profit after tax turned positive at $30.9m, compared with a pre-tax loss of $24.5m a year earlier.

The turnaround was driven by a $46m reduction in finance costs, helped by favourable foreign exchange movements, and a $29.7m swing in other gains and losses due to hyperinflation accounting.

The group ended the period with 14,515 sites and 30,617 tenancies, up 2% and 7% year-on-year respectively, lifting the tenancy ratio to 2.11x.

Return on invested capital rose by 0.7 percentage points to 13.6%, and net leverage was reduced to 3.8x, down from 4.2x a year earlier.

Helios Towers maintained its full-year guidance, including 2,000 to 2,500 tenancy additions, adjusted EBITDA of $460m to $470m, and free cash flow of $40m to $60m.

Capital expenditure was expected to be between $150m and $180m, with net leverage forecast at 3.5x.

The company also highlighted continued ESG progress, with an MSCI 'AAA' rating reaffirmed and its inclusion in the FTSE4Good Index for the third year running.

At 1021 BST, shares in Helios Towers were down 1.18% at 117.2p.

Reporting by Josh White for Sharecast.com.