IHS Towers, Africa’s largest independent telecommunications tower infrastructure company, grew its revenue by 8.2% in the first half of 2026, but higher diesel and power costs, along with expenses related to its proposed takeover by MTN Group, put pressure on its profits.
Revenue from continuing operations rose 8.2% to $844 million in the six months to June, compared with $780.3 million a year earlier. Revenue also grew 10.4% in the second quarter to $428.6 million, according to the company’s H1 financial report.
The results show how rising diesel costs are putting pressure on IHS’s profitability, making cost control increasingly important as the company prepares for its proposed takeover by MTN.
Operating income fell 38.4% year-on-year, while net income rose 10.3% in the first half compared with H1 2025. However, IHS swung to a $7.5 million net loss in the second quarter.
A major reason was the rising cost of powering its towers. Diesel prices in Nigeria increased sharply during the first half of the year, from an average of ₦1,361.57 ($0.999) per litre in January to ₦3,277.47 ($2.41) in May in some parts of the country.
That rise in diesel prices fed directly into IHS’s power costs. The company spent $205.4 million on power generation, primarily diesel, in the first half, up from $165.4 million a year earlier. IHS said the increase was partly driven by higher global energy prices and geopolitical tensions.
“We incur capital expenditure in relation to the maintenance of our towers and fiber equipment, which is non-discretionary in nature and required for us to optimally run our portfolio and to perform in line with our service level agreements with customers,” the company noted in its report.
Merger-related expenses also added to the pressure. IHS recorded $83.1 million in accelerated share-based payment and long-term employee incentive expenses during the first half, linked to the proposed MTN acquisition and the company’s asset sales.