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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Helios Towers Plc | LSE:HTWS | London | Ordinary Share | GB00BJVQC708 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| -0.10 | -0.11% | 94.70 | 94.60 | 95.00 | 97.70 | 93.70 | 97.70 | 77,965 | 14:22:44 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Communications Services, Nec | 721M | -100.1M | -0.0955 | -9.84 | 985.23M |
From Apr 2019 to Apr 2024
TIDMHTWS
RNS Number : 5437D
Helios Towers PLC
29 October 2020
HELIOS TOWERS plc
Unaudited results for the 9 and 3 months ended 30 September 2020
Maintaining track record of consistent and profitable EBITDA growth
Strengthened balance sheet with reduced cost of capital to support inorganic growth strategy
London, 29 October 2020: Helios Towers plc ("Helios Towers", "the Group" or "the Company"), the independent telecommunications infrastructure company, today announces results for the 9 and 3 months to 30 September 2020.
Hot Features
Premium
9 months ended 3 months ended
------------------------ ------------------------
Q3 2020 Q3 2019 Change Q3 2020 Q2 2020 Change
----------------------- ------- ------- ------ ------- ------- ------
Sites 7,222 6,903 +5% 7,222 7,092 +2%
Tenancies 15,082 14,226 +6% 15,082 14,906 +1%
Tenancy ratio 2.09x 2.06x +0.03x 2.09x 2.10x -0.01x
Revenue (US$m) 307.9 288.0 +7% 103.6 102.2 +1%
Adjusted EBITDA (US$m) 166.5 151.5 +10% 57.4 55.1 +4%
Adjusted EBITDA margin 54% 53% +1ppt 55% 54% +1ppt
Financial highlights
-- Continuing to deliver on our growth strategy, with revenue for the 9 months to 30 September 2020 increasing by 7% year-on-year to US$307.9m (30 Sep 2019: US$288.0m), driven by continued growth in the number of sites and tenancies across the Group.
o Q3 2020 Group revenue increased by 1% quarter-on-quarter to US$103.6m (Q2 2020: US$102.2m).
-- Adjusted EBITDA for the 9 months to 30 September 2020 increased by 10% year-on-year to US$166.5m (30 Sep 2019: US$151.5m), driven by tenancy growth and continued improvements in operational efficiency. Adjusted EBITDA margin for the 9 month period of 54% reflects a 1ppt year-on-year increase (30 Sep 2019: 53%).
o Q3 2020 Adjusted EBITDA increased by 4% quarter-on-quarter to US$57.4m (Q2 2020: US$55.1m), with Q3 2020 Adjusted EBITDA margin at a record 55% (Q3 2019: 54%), up 1ppt, within our medium-term target range of 55-60%.
-- Enhanced shareholder value by improving the Group's capital structure with the successful upsize and pricing on 9 September 2020 of US$225m of aggregate principal of the existing 7.00% Senior Notes due 2025. The notes were issued at a price of 106.25 of principal and reflect a yield-to-maturity of 5.6%, lowering the Group's cost of debt. The proceeds will be utilised primarily for expansion opportunities in existing and new markets.
Operational highlights
-- Helios Towers continues to monitor the impact of COVID-19 on its operations. The telecommunications sector has been classified as an 'essential service' in our markets, allowing us to operate at our normal high levels of service. To date, there has been minimal impact on the Group's delivery of service and operational execution: impact has been limited to minor delays to customer rollouts earlier in the year.
-- Operational performance continues at very high levels, with power uptime of 99.99% recorded in Q3 2020 for a second consecutive quarter.
-- Increase in tenancies of 856 tenants year-on-year to 15,082 tenants (Q3 2019: 14,226 tenants). Q3 2020 tenancies increased by 176 quarter-on-quarter (Q2 2020: 14,906).
-- Increase of 319 sites year-on-year to 7,222 sites (Q3 2019: 6,903 sites). Increase of 130 sites quarter-on-quarter (Q2: 7,092).
-- Tenancy ratio increased year-on-year by 0.03x to 2.09x (Q3 2019: 2.06x). Q3 2020 tenancy ratio marginally decreased by 0.01x quarter-on-quarter to 2.09x (Q2 2020: 2.10x), reflecting strong site growth.
Strategic Updates
-- We continue to build upon our track record of executing M&A, with significant opportunities in existing and new markets. The Group is analysing opportunities representing circa 10,000 towers in total, and are conducting due diligence on a number of potential transactions, representing both in-market and new market opportunities.
-- On 12 August, Helios Towers signed an agreement with Free Senegal, the second largest mobile operator in Senegal, to acquire its 1,220 tower portfolio, as well as 400 build-to-suit sites committed over the next 5 years. The Group remains on track to close the Senegal transaction in Q1 2021, as previously indicated.
-- The Senegal transaction enables the Group to enter a new market, representing the first key milestone against our 2025 strategic ambitions to increase our operational presence to 8+ markets. The sites consolidated on Day-1 of the acquisition represent c.25% of the Group's total targeted site expansion to reach our 2025 strategic target of 12,000+ sites.
ESG
-- In line with our ESG Roadmap as discussed at the H1 results, we released our Sustainable Business Strategy Summary presentation on our website, which can be found at https://www.heliostowers.com/investors/results-reports-and-presentations .
-- On Thursday 19 November 2020, we will present to shareholders our integrated Sustainable Business Strategy (dial-in details to follow). The presentation will set out our long term targets and our contribution to the UN Sustainable Development Goals. Registration for the presentation can be found at: www.incommuk.com/clients/heliostowersSBS .
-- Helios Towers' Sustainable Business Strategy will help the company maximise the positive impact it is having for all its stakeholders, and deliver on its purpose of driving the growth of communications in Africa.
2020 Outlook and guidance
-- In Q3 2020 we have achieved another quarter of Adjusted EBITDA growth, and high uptime performance, against the backdrop of COVID-19.
-- Our tenancy pipeline remains robust, and whilst there were some short term COVID-19 delays to customer rollout earlier in the year, we still expect incremental tenancies for 2020 to be approximately 1,000, within the previously communicated range of 1,000 - 1,500.
-- Capex guidance has been revised to US$80m - 110m (vs US$110m - 140m previously guided), driven by proportionately lower growth capex.
-- We expect rollout for the next year to remain in line with medium-term guidance, reflecting the continued strong demand for mobile and data communication infrastructure within our markets and the healthy pipeline of existing orders across all our regions.
Kash Pandya, Chief Executive Officer, said:
"We are delighted to report another quarter of continued EBITDA growth, demonstrating the resilience of our business and our sustained focus on profitable expansion. In the context of the COVID-19 pandemic, our teams on the ground have adapted to conditions in each of our local markets, enhancing safety measures while continuing to operate at peak levels of operational efficiency through continued focus on our business excellence strategy.
With strong support from the public debt markets, in September we raised an additional US$225m through a tap of our 2025 bond, further reducing our overall cost of capital. This fundraising provides additional capacity for future transactions and positions us well to continue to pursue a balanced growth strategy that enhances value for all our stakeholders.
We are also pleased with the progress we have made to establish our ESG targets and we are excited to speak to stakeholders in November to share our Sustainable Business Strategy, and to present our long term targets and contribution to the UN Sustainable Development Goals".
For further information go to:
www.heliostowers.com
Investor Relations
Manjit Dhillon - Interim Chief Financial Officer
Chris Baker-Sams - Corporate Finance Manager
+44 (0)776 723 7010
Media relations
Edward Bridges / Stephanie Ellis
FTI Consulting LLP
+44 (0)20 3727 1000
Helios Towers' management will host a conference call for analysts and institutional investors at 09.30 BST on Thursday, 29 October 2020. Dial in details for the conference call are:
Europe & International +44 20 3936 2999 South Africa (local) 087 550 8441 USA (local) 1 646 664 1960 Passcode: 676558
About Helios Towers
-- Helios Towers is a leading independent telecommunications infrastructure company in Africa, having established one of the continent's most extensive tower portfolios with 7,222 towers across five countries. It builds, owns and operates telecom passive infrastructure, providing services to mobile network operators.
-- Helios Towers owns and operates more sites than any other operator in each of Tanzania, Democratic Republic of Congo ("DRC"), and Congo Brazzaville. It is also a leading operator in Ghana with a strong urban presence and established a presence in South Africa in 2019.
-- Helios Towers pioneered the model in Africa of buying towers that were held by single operators and providing services utilising the tower infrastructure to the seller and other operators. This allows wireless operators to outsource non-core tower-related activities, enabling them to focus their capital and managerial resources on providing higher quality services more cost-effectively.
Financial and operational metrics
Key highlights
-- 130 new site additions were brought online in Q3 2020, reflecting a 2% increase quarter-on-quarter. Site growth was largely driven by Tanzania, representing 104 new sites. South Africa also saw strong growth, with 19 new site additions during the quarter, reflecting an 11% increase in total site count. Group site count of 7,222 reflects a 5% increase year-on-year (Q3 2019: 6,903).
-- Total tenancies in Q3 2020 increased by 1% quarter-on-quarter, reflecting an additional 176 tenancies. Tanzania and DRC were the two largest contributors to tenancy growth, with 105 and 43 tenancies added respectively. Group tenancies of 15,082 reflects a 6% increase year-on-year, driven by strong tenancy growth in DRC, Tanzania and South Africa.
-- Group revenue in Q3 2020 of US$103.6m grew by 1% quarter-on-quarter and 6% year-on-year. Revenue for the 9 months ended 30 September 2020 of US$307.9m grew by 7% year-on-year.
-- Contracted revenue was US$2.7bn as at 30 September 2020, with an average remaining contract life of 6.6 years.
-- Adjusted EBITDA in Q3 2020 of US$57.4m grew by 4% quarter-on-quarter and 9% year-on-year. Adjusted EBITDA for the 9 months ended 30 September 2020 of US$166.5m increased by 10% year-on-year, driven by tenancy growth and continued improvements in operational efficiency. Adjusted EBITDA margin for the quarter was a record 55%, and within the medium-term target range of 55% - 60%.
-- Portfolio free cash flow for the 9 months to 30 September 2020 of US$133.3m reflects a 7% increase year-on-year.
-- Net leverage as at 30 September 2020 was 2.9x, and remains below our target net leverage range of 3.5x - 4.5x. Additional gross debt of US$225m from the bond tap was offset by a higher cash balance due to the bond proceeds received, with no impact on net leverage. We expect to be within the lower end of the range after the closing of the Senegal transaction.
-- Q3 2020 capex of US$61.7m reflects a 27% decrease year-on-year. The decrease is attributable to lower acquisition and growth capex, as a result of COVID-19 delays to customer rollout earlier in the year, partially offset by higher maintenance capex.
Key metrics
For the 3 months ended 30 September
Group Tanzania DRC Congo Brazzaville Ghana South Africa
-------------- ------------ ------------ ------------------- ------------ --------------
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m US$m
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Revenue for the quarter $103.6 $97.3 $42.5 $40.5 $42.6 $39.2 $7.0 $7.0 $10.6 $10.0 $0.9 $0.6
Adjusted gross
margin(1) 70% 67% 71% 67% 68% 65% 69% 73% 72% 70% 77% 72%
Sites at beginning
of the quarter 7,092 6,882 3,668 3,650 1,867 1,817 415 381 970 933 172 101
Sites at quarter end 7,222 6,903 3,772 3,637 1,871 1,821 415 385 973 950 191 110
Tenancies at beginning
of the quarter 14,906 14,100 8,131 7,950 3,944 3,705 606 533 1,905 1,744 320 168
Tenancies at quarter
end 15,082 14,226 8,236 7,971 3,987 3,717 606 557 1,900 1,788 353 193
Tenancy ratio at
quarter
end 2.09x 2.06x 2.18x 2.19x 2.13x 2.04x 1.46x 1.45x 1.95x 1.88x 1.85x 1.75x
Adjusted EBITDA for
the quarter(2) $57.4 $52.5 $27.5 $24.7 $25.4 $22.3 $3.5 $4.0 $6.6 $5.9 $0.3 $(0.1)
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Adjusted EBITDA
Margin(2)
for the quarter 55% 54% 65% 61% 60% 57% 50% 57% 62% 59% 33% (12)%
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
(1) Adjusted gross margin means gross profit, adding back site depreciation, divided by revenue.
(2) Group Adjusted EBITDA for the quarter is stated including corporate costs of US$5.9m (Q3 2019: US$4.3m).
Total tenancies as at 30 September
Group Tanzania DRC Congo Brazzaville Ghana South Africa
----------------------- -------------- ------------ ------------ ------------------- ------------ --------------
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Standard colocation
tenants 7,083 6,676 4,025 3,905 2,017 1,824 173 159 709 707 159 81
Amendment colocation
tenants 777 647 439 429 99 72 18 13 218 131 3 2
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Total colocation
tenants 7,860 7,323 4,464 4,334 2,116 1,896 191 172 927 838 162 83
Total sites 7,222 6,903 3,772 3,637 1,871 1,821 415 385 973 950 191 110
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Total tenancies 15,082 14,226 8,236 7,971 3,987 3,717 606 557 1,900 1,788 353 193
----------------------- ------ ------ ----- ----- ----- ----- --------- -------- ----- ----- ------ ------
Portfolio free cash flow
Definition - Portfolio free cash flow is defined as Adjusted EBITDA less maintenance and corporate capital expenditure, payments of lease liabilities (including interest and principal repayments of lease liabilities) and tax paid.
Purpose - Portfolio free cash flow is used to evaluate the cash flow generated by the business operations after expenditure incurred on maintaining capital assets, including lease liabilities, and taxes. It is a measure of the unlevered cash generation of the Group's current tower estate.
9 months ended 3 months ended
30 September 30 September
---------------- ----------------
2020 2019 2020 2019
US$m US$m US$m US$m
---------------------------------------------- ------- ------- ------- -------
Adjusted EBITDA 166.5 151.5 57.4 52.5
Less:
Maintenance and corporate capital expenditure (12.8) (8.8) (5.4) (1.0)
Payments of lease liabilities1 (17.6) (16.0) (6.3) (5.8)
Tax paid(2) (2.8) (1.9) (1.5) (0.7)
---------------------------------------------- ------- ------- ------- -------
Portfolio free cash flow 133.3 124.8 44.2 45.0
------- ------- ------- -------
Cash conversion %3 80% 82% 77% 86%
------- ------- ------- -------
(1) Payment of lease liabilities includes interest and principal repayments of lease liabilities.
(2) Tax paid excludes Change of Control Taxes.
(3) Cash conversion % is calculated as portfolio free cash flow divided by Adjusted EBITDA.
Revenue
Revenue increased by 6% year-on-year to US$103.6m in the quarter ended 30 September 2020 from US$97.3m in the quarter ended 30 September 2019. The increase was largely driven by the growth in total tenancies from 14,226 as of 30 September 2019 to 15,082 as of 30 September 2020. For the nine months ended 30 September 2020, 87% of revenues were from Africa's Big-Five MNOs and 60% were denominated in either USD or XAF (which is pegged to the Euro).
Contracted revenue
The following table provides our total undiscounted contracted revenue by country as of 30 September 2020 for each market of the periods from 2020 to 2024, with local currency amounts converted at the applicable average rate for US dollars with the period ended 30 September 2020 held constant. Our contracted revenue calculation for each year presented assumes: (i) no escalation in fee rates, (ii) no increases in sites or tenancies other than our committed tenancies, (iii) our customers do not utilise any cancellation allowances set forth in their MLAs, (iv) our customers do not terminate MLAs early for any reason and (v) no automatic renewal.
Year ended 31 December
----------------------------
3 months
to
31 December
2020 2021 2022 2023 2024
US$m US$m US$m US$m US$m
------------------ ------------ ------ ------ ----- -----
Tanzania 41.2 164.3 161.4 154.5 134.5
DRC 40.7 162.6 162.6 162.6 161.2
Congo Brazzaville 6.6 26.4 25.6 24.8 24.0
South Africa 0.8 3.6 3.9 4.1 4.2
Ghana 8.5 33.8 32.2 31.3 30.7
------------------ ------------ ------ ------ ----- -----
97.8 390.7 385.7 377.3 354.6
------------------ ------------ ------ ------ ----- -----
The following table provides our total undiscounted contracted revenue by key customers as of 30 September 2020 over the life of the contracts with local currency amounts converted at the applicable average rate for US dollars with the period ended 30 September 2020 held constant. Our calculation uses the same assumptions as above.
Percentage
Total of Total
Committed Committed
(US$m) Revenues Revenues
----------------------- ---------- ----------
Africa's Big-Five MNOs 2,164.4 80%
Other 530.7 20%
----------------------- ---------- ----------
2,695.1 100%
----------------------- ---------- ----------
Gross debt, net debt, net leverage and adjusted cash & cash equivalents
30 September 31 December
2020 2019
US$m US$m
----------------------------------- ------------ -----------
External debt(1) 999.8 684.3
Lease liabilities 128.6 125.6
----------------------------------- ------------ -----------
Gross debt 1,128.4 809.9
Cash and cash equivalents 466.2 221.1
Less: restricted cash(2) - (37.7)
----------------------------------- ------------ -----------
Adjusted cash and cash equivalents 466.2 183.4
----------------------------------- ------------ -----------
Net debt 662.2 626.5
----------------------------------- ------------ -----------
LQA annualised Adjusted EBITDA(3) 229.6 214.8
----------------------------------- ------------ -----------
Net leverage (4) 2.9 2.9
----------------------------------- ------------ -----------
1. External debt is presented in line with the balance sheet at amortised cost. External debt is the total loans owed to commercial banks and institutional investors.
2. The bank balances as at 31 December 2019 included restricted cash of US$37.7m, drawn-down from the escrow funded by the Group's pre-IPO shareholders relating to Change of Control Taxes. This was paid to the relevant tax authority in Q1 2020.
3. LQA annualised Adjusted EBITDA calculated as per the Senior Notes definition as the most recent quarter Adjusted EBITDA multiplied by 4. This is not a forecast of future results.
4. Net leverage is calculated as net debt divided by LQA annualised Adjusted EBITDA.
Capital expenditure
The following table shows capital expenditure additions by category during the 9 months ended 30 September:
2020 2019
------------ ------------
% of % of
Total Total
US$m Capex US$m Capex
------------ ---- ------ ---- ------
Acquisition 10.7 17.3% 21.6 25.7%
Growth 28.4 46.0% 41.2 49.0%
Upgrade 9.8 15.9% 12.5 14.9%
Maintenance 12.2 19.8% 8.2 9.7%
Corporate 0.6 1.0% 0.6 0.7%
------------ ---- ------ ---- ------
61.7 100.0% 84.1 100.0%
------------ ---- ------ ---- ------
Impact of COVID-19
The Group's business and operations are inherently resilient against the implications of the COVID-19 pandemic and associated lockdowns, due to operating in the telecoms sector, which sees continued strong demand, and through having long-term revenue contracts with large blue-chip MNOs. On a near-term basis, however, the Group has experienced some delays to expansionary rollout plans from MNOs, as well as some administrative delays to planned construction as a result of COVID-19 earlier in the year. The table below provides a summary of the impact across key areas of the Group's operations:
Commentary Impact Assessment
------------ ----------------------------------------------------------------- -------------------------------------------------------------
Workforce
& * Office staff are working from home across all markets * Minimal disruption to-date
Operations
* Field operations are in dispersed locations and * Business continuity maintained
outdoor environments with personnel classified as
essential workers
* Return to work protocols are being discussed with
employee wellbeing at the core
------------ ----------------------------------------------------------------- -------------------------------------------------------------
Existing
Revenue / * US$2.7b contracted revenues with 6.6 years' average * Minimal impact to long-term revenue expected
Liquidity contract duration across five countries and 80% with
Africa's Big-Five MNOs
* Sufficient liquidity
* Following bond refinancing and tap, the cash balance
is US$466.2m with undrawn debt facilities of up to
US$270m at Group and ZAR 351m at Helios Towers South
Africa
------------ ----------------------------------------------------------------- -------------------------------------------------------------
Customer
roll-out * Implications for rate of roll out if equipment supply * Mobile services are critical and in high demand
chains are disrupted
* Long-term customer growth strategies remain unchanged
* Some short-term delays to customer roll-out timelines
resulting in a portion of tenancy growth being
delayed by 1 - 2 quarters earlier in the year * Robust pipeline
------------ ----------------------------------------------------------------- -------------------------------------------------------------
Supply
Chain * Minimal supply chain delays have been experienced to * Sufficient inventory to support our growth through
date 2020
* Forward purchased FY 20 materials in late Q1 / early * High quality operational performance ensured
Q2
* Forward purchasing of capex
* Additional fuel purchases to ensure adequate supplies
------------ ----------------------------------------------------------------- -------------------------------------------------------------
Situation
management * Regular monitoring and communications with Board, * Minimal disruption expected
executive management and employees
* Cloud-based systems and group-wide video-conferencing
for smooth remote-working transition
Alternative Performance Measures
The Group has presented a number of Alternative Performance Measures ("APMs"), which are used in addition to IFRS statutory performance measures.
The Group believes that these APMs, which are not considered to be a substitute for or superior to IFRS measures, provide stakeholders with additional helpful information on the performance of the business. These APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board. Some of these measures are also used for the purposes of setting remuneration targets.
Adjusted EBITDA and Adjusted EBITDA margin
Definition - Management defines Adjusted EBITDA as loss before tax for the period, adjusted for finance costs, gains or loss on financial instruments, interest receivable, loss on disposal of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long-term incentive plan charges, and other adjusting items. Adjusting items are material items that are considered one-off by management by virtue of their size and/or incidence. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue.
Purpose - The Group believes that Adjusted EBITDA and Adjusted EBITDA margin facilitates comparisons of operating performance from period to period and company to company by eliminating potential differences caused by variations in capital structures (affecting interest and finance charges), tax positions (such as the impact of changes in effective tax rates or net operating losses) and the age and booked depreciation on assets. The Group excludes certain items from Adjusted EBITDA, such as loss on disposal of property, plant and equipment and other adjusting items because it believes they are not indicative of its underlying trading performance.
Portfolio free cash flow
Definition - Portfolio free cash flow is defined as Adjusted EBITDA less maintenance and corporate capital expenditure, payments of lease liabilities (including interest and principal repayments of lease liabilities) and tax paid.
Purpose - Portfolio free cash flow is used to evaluate the cash flow generated by the business operations after expenditure incurred on maintaining capital assets, including lease liabilities, and taxes. It is a measure of the unlevered cash generation of the Group's current tower estate
Gross debt, net debt, net leverage and adjusted cash & cash equivalents
Definition - Gross debt is calculated as non-current loans, current loans, and long-term and short-term lease liabilities. Net debt is calculated as gross debt less adjusted cash and cash equivalents. Adjusted cash and cash equivalents comprises cash and cash equivalents with nil exclusions (31 December 2019 US$37.7m) of restricted cash for the potential payment of Change of Control Tax related to our initial public offering in 2019 funded by a capital contribution from our pre-IPO shareholders immediately prior to the initial public offering.
Purpose - Net debt is a measure of the Group's net indebtedness that provides an indicator of overall balance sheet strength. It is also a single measure that can be used to assess both the Group's cash position and its indebtedness. The use of the term 'net debt' does not necessarily mean that the cash included in the net debt calculation is available to settle the liabilities included in this measure.
Certain defined terms and conventions
We have prepared the trading update using a number of conventions, which you should consider when reading information contained herein as follows:
All references to "we", "us", "our", "HT Group", our "Group" and the "Group" are references to Helios Towers plc and its subsidiaries taken as a whole.
"Adjusted EBITDA" Management de nes Adjusted EBITDA as loss before tax for the period, adjusted nance costs, gains or loss on financial instruments, interest receivable, loss on disposal of property, plant and equipment, amortisation of intangible assets, depreciation and impairment of property, plant and equipment, depreciation of right-of-use assets, deal costs for aborted acquisitions, deal costs not capitalised, share-based payments and long-term incentive plan charges, and other adjusting items. Adjusting items are material items that are considered one-off by management by virtue of their size and/or incidence.
"Adjusted EBITDA margin" means Adjusted EBITDA divided by revenue.
"Company" means Helios Towers plc.
"Corporate capital expenditure" is primarily for furniture, fixtures and equipment.
"Ghana" means the Republic of Ghana.
"Gross debt" as our total borrowings (non-current loans and current loans) excluding unamortised loan issue costs.
"Adjusted gross margin" means gross profit, adding site depreciation, divided by revenue.
"Growth capex" relates to: (i) construction of build-to-suit sites (ii) installation of colocation tenants and (ii) and investments in power management solutions.
"Group" means Helios Towers, Ltd and its subsidiaries prior to 18 October 2019, and Helios Towers plc and its subsidiaries on or after 18 October 2019.
"Helios Towers plc" means the ultimate parent of the Group, post IPO.
"Maintenance capital expenditures" as capital expenditures for periodic refurbishments and replacement of parts and equipment to keep existing sites in service.
"Net debt" means gross debt less cash and cash equivalents (excluding restricted cash).
"Telecommunications operator" means a company licensed by the government to provide voice and data communications services in the countries in which we operate.
"Tenancy" means a space leased for installation of a base transmission site and associated antennae.
"Tenancy ratio" means the total number of tenancies divided by the total number of our towers as of a given date and represents the average number of tenants per site within a portfolio.
"Tenant" means an MNO that leases vertical space on the tower and portions of the land underneath on which it installs its equipment.
"Total sites" means total towers, IBS sites, edge data centres or sites with customer equipment installed on third-party infrastructure that are owned and/or managed by the Company with each reported site having at least one active customer tenancy as of a given date.
Tenant categories
-- "Anchor tenant" means the primary customer occupying a site.
-- "Colocation tenant" each additional tenant on a site in addition to the anchor tenant and are classified as either a standard or amendment colocation tenant.
o "Standard colocation tenant" is defined as a customer occupying site space under a standard tenancy lease rate and configuration with defined limits in terms of the vertical space occupied, the wind load and power consumption.
o "Amendment colocation tenant" is a tenant that adds or modifies equipment, taking up additional space, wind load capacity and/or power consumption under an existing lease agreement. The Group calculates amendment colocation tenants on a weighted basis as compared to the market average lease rate for a standard tenancy lease in the month the amendment is added.
-- "Total tenancies" means total anchor, standard and amendment colocation tenants as of a given date.
"Tower sites" means ground-based towers and rooftop towers and installations constructed and owned by us on real property (including a rooftop) that is generally owned or leased by us.
"Upgrade capex" comprises structural, refurbishment and consolidation activities carried out on selected sites.
"US dollars" or "$" refers to the lawful currency of the United States of America.
Disclaimer:
This document does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Helios Towers plc (the "Company") or any other member of the Helios Towers group (the "Group"), nor should it be construed as legal, tax, financial, investment or accounting advice. This document contains forward-looking statements which are subject to known and unknown risks and uncertainties because they relate to future events, many of which are beyond the Group's control. These forward-looking statements include, without limitation, statements in relation to the Company's financial outlook and future performance. No assurance can be given that future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Group, including, without limitation, risks and uncertainties arising from the impact of the COVID-19 pandemic. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. The Company undertakes no obligation to update or revise any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances. Nothing in this document is or should be relied upon as a warranty, promise or representation, express or implied, as to the future performance of the Company or the Group or their business.
This document also contains non-GAAP financial information which the Directors believe is valuable in understanding the performance of the Group. However, non-GAAP information is not uniformly defined by all companies and therefore it may not be comparable with similarly titled measures disclosed by other companies, including those in the Group's industry. Although these measures are important in the assessment and management of the Group's business, they should not be viewed in isolation or as replacements for, but rather as complementary to, the comparable GAAP measures.
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END
QRTKKFBNKBDBDKB
(END) Dow Jones Newswires
October 29, 2020 03:00 ET (07:00 GMT)
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