Segment reporting

12 Months Ended

Dec. 31, 2023

5.Segment reporting

The Group’s Executive Committee, identified as the chief operating decision maker (“CODM”), reviews and evaluates the Group’s performance from a business perspective according to how the geographical locations are managed. Regional and operating company management are responsible for managing performance, underlying risks, and effectiveness of operations. Regions are broadly based on a scale and geographic basis because the Group’s risks and rates of return are affected predominantly by the fact that the Group operates in different geographical areas, namely Nigeria as the major market, Cameroon, Côte d’Ivoire, Rwanda, South Africa and Zambia, as our Sub Saharan Africa business (“SSA”), Kuwait and Egypt as our Middle East and North Africa business (“MENA”) and Brazil, Colombia and Peru as our Latin America business (“Latam”).

The Executive Committee reviews the Company’s internal reporting to assess performance and allocate resources. Management has determined the operating segments based on these reports.

The CODM has identified four reportable and operating segments:

●

Nigeria

●

SSA, which comprises operations in Cameroon, Côte d’Ivoire, Rwanda, South Africa and Zambia

●

Latam, which comprises operations in Brazil, Colombia and Peru

●

MENA, which comprises operations in Kuwait and Egypt. Although full operations in Egypt have not commenced, the business has incurred some startup costs.

All operating segments are engaged in the business of leasing tower space for communication equipment and capacity leasing and services on fixed broadband networks to Mobile Network Operators (MNOs) and other customers (internet service providers, security functions or private corporations) and provide managed services in limited situations, such as maintenance, operations and leasing services, for certain towers owned by third parties within their respective geographic areas. However, they are managed and grouped within the four operating segments, which are primarily distinguished by reference to the scale of operations, to the similarity of their future prospects and long-term financial performance (i.e. margins and geographic basis).

The CODM primarily uses a measure of segment Adjusted EBITDA (as defined in note 4(e)) to assess the performance of the business. The CODM also regularly receives information about the Group’s revenue, assets and liabilities. The Group has additional corporate costs which do not meet the quantitative thresholds to be separately reported and which are aggregated in ‘Other’ in the reconciliation of financial information presented below. These include costs associated with centralized Group functions including Group executive, legal, finance, tax and treasury services.

There are no revenue transactions which occur between operating segments. Intercompany finance income, finance costs and loans are not included in the amounts below.

The segment’s assets and liabilities are comprised of all assets and liabilities attributable to the segment, based on the operations of the segment and the physical location of the assets, including goodwill and other intangible assets and are measured in the same way as in the financial statements. Other assets and liabilities that are not attributable to Nigeria, SSA, Latam and MENA segments consist principally of amounts excluded from specific segments including costs incurred for and by Group functions not attributable directly to the operations of the reportable segments, share-based payment and any amounts due on debt held at Group level as the balances are not utilized in assessing each segment’s performance.

Summarized financial information for the year ended December 31, 2023 is as follows:

2023

Nigeria

SSA

Latam

MENA

Other

Total

$’000

Revenues from external customers

1,381,627

503,049

200,207

40,656

—

2,125,539

Segment Adjusted EBITDA (note 4(e))

855,317

257,072

145,754

22,121

(147,729)

1,132,535

Depreciation and amortization (note 7 and 8)

(435,586)

Net gain on disposal of property, plant and equipment (note 8)

3,806

Insurance claims (note 9)

321

Impairment of withholding tax receivables in Nigeria (note 8)

(47,992)

Business combination costs (note 8)

(2,432)

Impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent (note 7)

(87,696)

Other costs (a)

(19,017)

Share‑based payment expense (note 8)

(13,370)

Finance income (note 10)

25,209

Finance costs (note 11)

(2,436,511)

Other non-operating income (note 9)

Loss before income tax

(1,880,650)

Additions of property, plant and equipment and intangible assets:

- through business combinations

—

8,566

- In the normal course of business

320,027

96,905

247,580

18,034

Segment assets

1,441,240

1,406,675

2,216,873

186,586

Segment liabilities

866,996

815,769

766,687

111,751

(a)

Other costs for the year ended December 31, 2023 included one-off consulting fees related to corporate structures and operating systems of $10.6 million, one-off consulting services of $1.7 million, costs related to internal reorganization of $4.7 million and one-off professional fees related to financing of $0.3 million.

Summarized financial information for the year ended December 31, 2022 is as follows:

2022

Nigeria

SSA

Latam

MENA

Other

Total

$’000

Revenues from external customers

1,352,402

412,824

160,008

36,065

—

1,961,299

Segment Adjusted EBITDA (note 4(e))*

802,822

230,066

114,434

16,021

(132,412)

1,030,931

Depreciation and amortization (note 7 and 8)*

(468,904)

Net loss on disposal of property, plant and equipment (note 8)

(3,382)

Insurance claims (note 9)

2,092

Impairment of withholding tax receivables in Nigeria (note 8)

(52,334)

Impairment of Goodwill (note 8)

(121,596)

Business combination costs (note 8)

(20,851)

Impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent (note 7)

(38,157)

Other costs (a)

(4,873)

Share‑based payment expense (note 8)

(13,265)

Finance income (note 10)

15,825

Finance costs (note 11)*

(872,049)

Other non-operating income

2,584

Loss before income tax*

(543,979)

Additions of property, plant and equipment and intangible assets:

- through business combinations*

—

719,219

386,460

3,650

- In the normal course of business

400,430

101,154

135,069

23,532

Segment assets*

2,270,656

1,639,254

1,931,317

178,471

Segment liabilities*

935,387

912,875

555,885

109,087

*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.

(a)	Other costs for the year ended December 31, 2022 included $2.3 million costs related to internal reorganization.

Summarized financial information for the year ended December 31, 2021 is as follows:

2021

Nigeria

SSA

Latam

MENA

Other

Total

$’000

Revenues from external customers

1,146,732

343,945

59,706

29,347

—

1,579,730

Segment Adjusted EBITDA (note 4(e))

783,544

190,654

42,688

13,085

(103,575)

926,396

Depreciation and amortization (note 7 and 8)

(382,882)

Net gain on disposal of property, plant and equipment (note 8)

2,499

Insurance claims (note 9)

6,861

Impairment of withholding tax receivables in Nigeria (note 8)

(61,810)

Business combination costs (note 8)

(15,779)

Impairment of property, plant and equipment, intangible assets excluding goodwill and related prepaid land rent (note 7)

(51,113)

Reversal of provision for decommissioning costs

2,671

Listing costs

(22,153)

Other costs (a)

(15,752)

Share‑based payment expense (note 8)

(11,780)

Finance income (note 10)

25,522

Finance costs (note 11)

(422,034)

Other non-operating income

11,213

Loss before income tax

(8,141)

Additions of property, plant and equipment and intangible assets:

- through business combinations

—

468,535

—

- In the normal course of business

318,971

56,291

103,338

20,725

Segment assets

2,038,376

1,024,347

1,453,729

173,888

Segment liabilities

745,944

494,236

393,090

100,947

(a)	Other costs for the year ended December 31, 2021 included one-off professional costs related to financing of $15.1 million and aborted transaction costs of $0.7 million.

Geographical information:

The following countries in which the Group operates contribute material (10% or more) revenue based on mobile network operations and/or have material non-current assets in are as follows:


	2023	2022		2021
	$’000	$'000		$'000
Revenue
Nigeria	1,381,627	1,352,402		1,146,732
Rest of world	743,912	608,897		432,998
	2,125,539	1,961,299		1,579,730
Non‑current assets*
Nigeria	898,264	1,597,989		1,572,774
Brazil	1,875,098	1,648,863		1,274,378
South Africa	493,651	652,492	**	—
Rest of world	912,459	953,607		1,013,385
	4,179,472	4,852,951		3,860,537

*Non-current assets exclude financial instruments, non-current trade and other receivables and deferred tax assets.

**Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.

Revenue from two tier one customers represent approximately 10% or more of the Group’s total revenue:


	2023		2022		2021
	$’000		$'000		$'000

Customer A	60	%	62	%	66	%
Customer B	17	%	17	%	14	%