.
IHS Towers, one of Africa’s largest independent telecommunications infrastructure companies, increased revenue in the first half of 2026, but higher operating costs and expenses linked to its proposed merger with MTN Group continued to weigh on profitability.
The tower company’s latest performance underscores the mixed picture facing infrastructure providers: demand for telecommunications sites remains resilient, but rising energy costs and transaction-related expenses are putting pressure on the bottom line.
Revenue Growth Remains Resilient
IHS Towers recorded an 8.2% year-on-year increase in revenue in the first half of 2026, supported by continued demand from mobile network operators and growth in its tower portfolio.
The company continues to benefit from the long-term expansion of mobile connectivity across its markets, as operators invest in additional capacity to accommodate rising data consumption.
Its business model relies largely on leasing tower infrastructure to telecommunications operators, allowing multiple customers to share individual sites and reducing the need for each operator to build separate infrastructure.
Rising Diesel Costs Add Pressure
Despite the revenue improvement, higher energy expenses created additional pressure on IHS Towers’ profitability.
Diesel remains an important component of operating costs in markets where electricity supply is unreliable and tower sites require alternative power sources to maintain network availability.
The company’s exposure to diesel prices is particularly relevant in Nigeria and other African markets, where operators depend on generators and other backup power solutions for telecommunications infrastructure.
IHS has been working to reduce this exposure through investments in more efficient power systems, including hybrid and solar solutions, while contractual power-indexation mechanisms in some markets also help offset movements in energy costs.
Merger Expenses Further Weigh on Earnings
The company’s bottom line was also affected by expenses associated with its proposed combination with MTN.
MTN has agreed to acquire the shares in IHS Towers that it does not already own, a transaction valued at approximately $2.2 billion.
The proposed deal would give MTN full ownership of IHS and significantly expand its control over tower infrastructure across its African operations.
While the transaction could provide strategic benefits to both companies, the associated professional, advisory and other transaction costs have added to IHS Towers’ expenses during the period.
MTN Deal Moves Closer to Completion
The proposed acquisition has advanced significantly in recent months.
IHS shareholders approved MTN’s takeover proposal at a meeting held on August 4, 2026, removing a major condition required for the transaction to proceed.
MTN is seeking to acquire the approximately 75% of IHS Towers that it does not already own.
The transaction would reunite MTN with infrastructure it previously transferred to tower companies as the telecommunications industry increasingly adopted the asset-light model of outsourcing tower ownership and management.
Nigeria Remains a Major Market
Nigeria continues to be an important market for IHS Towers, with the company’s performance closely linked to developments in the country’s telecommunications industry.
The company operates thousands of towers across its African markets and serves major mobile network operators, including MTN.
Nigeria’s large mobile subscriber base and growing demand for data services provide long-term opportunities for tower infrastructure providers, although foreign exchange volatility, energy costs and operating expenses remain significant challenges.
Infrastructure Demand Supports Long-Term Outlook
Despite near-term pressure on profitability, the underlying demand for telecommunications infrastructure remains strong.
Mobile operators across Africa are expanding network capacity as smartphone adoption and data consumption increase. The growth of digital services, cloud computing and emerging technologies such as artificial intelligence is also creating greater demand for reliable connectivity infrastructure.
For tower companies, this provides opportunities to increase the number of tenants using existing sites while expanding into new locations and related infrastructure services.
Balancing Growth With Costs
IHS Towers’ latest results highlight the challenge of growing revenue while controlling the costs associated with operating thousands of telecommunications sites.
Energy prices, maintenance requirements, financing costs and transaction expenses can significantly affect profitability even when demand for tower services remains strong.
The company’s ability to improve energy efficiency, increase tower utilisation and manage costs will therefore remain critical as it navigates the next phase of its business.
With MTN’s proposed takeover moving closer to completion, IHS Towers is also approaching a potentially significant change in ownership structure.
For MTN, full control of the tower business could strengthen its position in critical telecommunications infrastructure at a time when connectivity, data and digital services are becoming increasingly important to Africa’s economic growth.
