Last checked at 
(Alliance News) - Helios Towers PLC on Thursday said growth in revenue and earnings in the first quarter has provided confidence in its outlook for 2022.
In the first quarter of the year, the Africa-focused mobile phone tower developer posted revenue of USD127.5 million, a 23% increase year-on-year from USD103.6 million.
The rise was driven by acquisitions in Senegal, Madagascar and Malwai, as well as strong organic tenancy growth across the company. When acquisitions are excluded, revenue rose 10% from the previous year.
Adjusted earnings before interest, tax, depreciation and amortisation rose 20% to USD66.7 million from USD55.8 million, as the margin dipped to 52% from 54%.
This was primarily due to the increase in revenue, which was partially offset by corporate selling, general & administrative investments to fund the expansion into new markets.
Shares in Helios were up 3.9% to 114.43 pence each in London on Thursday morning.
Operating profit dropped 16% to USD14.4 million from USD17.1 million, due to higher depreciation from acquired assets, Helios said.
For the whole year, Helios reiterated guidance of 1,200 to 1,700 tenancy additions, of which 60% will be new sites. Lease rate per tenant is expected to increase between 3% and 5% from USD26,400 per tenant in 2021.
Adjusted Ebitda margin is expected slightly lower than the previous year, in a range of 51% to 53%, compared to 54%, due to the impact of new acquisitions and general expenses.
"Our recent platform expansion is progressing well, as we become the most diversified towerco in the region with the doubling of our sites and markets. We have many exciting years ahead as we move to a new phase of our journey and launch our 5 year sustainable business strategy - focused on driving growth, impact, margins and returns," said Chief Executive Officer Tom Greenwood.
By Elizabeth Winter; elizabethwinter@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
