(Alliance News) - Helios Towers PLC on Thursday reported a significantly widened quarterly loss after the value of the call option on its listed bond was reduced to zero, though maintained its outlook for the year as a whole.
The company posted a pretax loss of USD57.5 million for the three months ended March 31, many times its USD8.7 million loss the year before. This resulted from a USD41.0 million loss on derivative financial instruments relating to put and call options on a listed bond compared to a USD15.7 million gain the year before.
"The call options give the group the right to redeem the bond instruments at a date prior to the maturity date of 8 March 2022, in certain circumstances and at a premium over the initial notional amount," explained Helios. The value of these dropped to zero as of March 31 from USD41.0 million on December 31 due to a change in credit spreads during the intervening three months.
Revenue increased 8.6% to USD101.8 million from USD93.7 million with an 8% increase in tenants to 14,677 an 4% increase in sites to 6,991.
Operating profit was 73% higher at USD12.1 million from USD7.0 million the year before. Adjusted earnings before interest, tax, depreciation, and amortisation rose 11% to USD54.0 million from USD48.8 million.
Adjusted Ebitda excludes tax expenses, finance costs, other gains and losses, interest receivable, and loss on disposal of property, among other non-operating items.
In terms of outlook, Helios said: "Based on our current assessment of Covid-19 impact, guidance for 2020 remains unchanged." It "will continue to monitor the current Covid-19 situation in its markets and will provide further updates on 2020 outlook at the half-year results."
Chief Executive Kash Pandya said: "The first quarter of 2020 saw our business deliver in line with expectations, with strong top-line growth and adjusted Ebitda performance. It demonstrates the power and leverage of our business model, the operational excellence driven by our people and the dependability of our long-term contracted revenue with our blue-chip customers. Following the outbreak of Covid-19, these attributes will serve the business well going forward. Our priority is the health and wellbeing of our people and those who are supported and connected by Helios Towers across sub-Saharan Africa. Never before has reliable connectivity been so vital, and at the heart of our sustainable business model is intrinsic infrastructure for a connected society."
Shares in Helios were down 4.3% at 123.40 pence in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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Helios Towers (HTWS)