Operator: Your next question comes from the line of Phil Cusick from JPMorgan. Your line is open.
Phil Cusick: Hi guys, thank you. Can you quantify the expected revenue pickup in Nigeria for the contracted resets over the next couple of quarters? I understand that it takes a little while on some of the contracts and what of those happen quarterly versus an annual, maybe a January 1st reset? And then second, you mentioned the improved discussions with Wendel. Can you give us any more update on that relationship? And it seems like you just covered everything you could say on the MTN side. Thanks.
Sam Darwish: I’ll say the first part. So, as you write clearly, some of the contracts in Nigeria are reset at different points and the vast, vast majority, over 93% of the contracts are reset quarterly. But some of them reset with a spot FX rate at the beginning of the quarter and some take an average of the preceding quarter. So, the ones that we’ve seen reset in Q3 were the ones that reset at a spot on 1 July. And then we’ll see another step up when those that take the average of the last quarter will reset again on the 1st of October, taking into account a full quarter of devalued Naira rate. We haven’t quantified it, but obviously being the last quarter of the year, given we’ve posted nine months results through so far and you know what our guidance is, you can pretty much see what the step up is.
If I give you an example on the flow through into EBITDA, when you look at the results we’ve posted so far through the nine months and look at the full year, the range is 1130 to 1150. Even if we use the bottom of that range, you’re looking at EBITDA just mathematically at $259 million. So that’s about $232 million we’ve just posted in this quarter. So that gives you an idea just mathematically straight from our guidance of the sort of step up that we’ll expect to see next quarter.
Steve Howden: On the second question regarding our shareholders, in particular the pre-IPO shareholders, look, we continue to talk. It’s very important to engage, to communicate, to note also that we are sticklers [Ph] when it comes to the standards of our governance. And we are always keen on ideas to improve the standards of governance and equally important, we’re also keen on any idea that could help value creation, value restoration, etcetera. So this is a good part of why we decided, by the way, to list our company in the United States under the watchful eye of the United States Securities and Exchange Commission. It’s a very high bar lots of companies or global companies avoid because they don’t want to be held accountable to such high standards, not us.
Now having said that, our board of directors also that is made of industry bellwether, that also fiduciary duties to protect and safeguard the interests of our minority investors and our various clients. It’s something we are steadfast about. So again, but I do acknowledge and it’s important to keep talking and in the dialogue and finding solutions with our pre-IPO shareholders and hopefully the reasons will raise over time. But having said that also Phil, and in an environment where the rising and already high interest rates are a problem for everyone, including public equities, including our peers, including our markets, we have to remain focused on our business and the running of the business itself. We believe we have a very resilient business.
We believe it’s strong. We intend to keep strengthening the business and keep growing it. But resilient businesses also demand alert stewards, alert and focused to it. And we see our job as primarily running the business to the benefit of all shareholders. And we intend to keep most of our focus there.
Phil Cusick: Okay, thank you.
Steve Howden: Thanks, Phil.
Operator: [Operator Instructions] And your next question comes from the line of Brett Feldman from Goldman Sachs. Your line is open.
Brett Feldman: Thanks. A couple of questions. So you made the comments about a portfolio review and it sounded like you were discussing it within the context of being more focused on where you would deploy capital. So it’s a big capital projects, but I’m curious whether the portfolio review is broader and maybe looks into whether there are assets you could sell or monetize, whether it’s markets or just unique pieces of the portfolio. I saw you had some assets held for sale in your Sub-Saharan African markets. And I wasn’t entirely sure what the context on that was. And then regardless of the answer, one way or the other, you would have more excess capital either because you were spending less on capital projects or perhaps generating capital from selling assets.
How would you go ahead and prioritize that additional capital? Would it mostly go towards further strengthening the balance sheet or could that be something that could fund the buyback program, which still has a lot of capacity under it? Thank you.
Sam Darwish: Thanks, Brett. Look, Brett, I think the important part is, again, our main focus at the moment, the business, the balance sheet, making sure basically that we remain as resilient as we’ve always been. Now, having said that, again, we’ve always said we are extremely mindful of where the share situation is. And this company constantly reviews every option that is out there. I mean, there is no stone that we want to leave unturned basically to try and get ourselves into a better place in terms of exposing to the world, showing how undervalued we believe our share is. And in addition, of course, maintaining and keep moving along the lines of strengthening cash flow generation in our balance sheet. So I can’t go into details unless things get decided and announced, but all options are on the table, to be honest.
And in terms of the extra cash that we hope to show up and achieve, again, all options are open. We are constantly reviewing. Remember, we are a growth company at core, so we always review and look at potential growth opportunities. But every other option, including potential buybacks, other things, are all on the table.
