Liberty Latin America Reports Q1 2025 Results

Over 40,000 organic broadband and postpaid mobile subscriber net adds in Q1 >30% Fixed-Mobile Convergence (“FMC”) penetration across key markets 38% Operating Income growth YoY; 8% rebased Adjusted OIBDA growth YoY Strong focus on cost and lowering capital intensity DENVER, Colorado–(BUSINESS WIRE)–Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q1”) ended March 31, 2025. CEO Balan Nair commented, “In a number of regions, we have started 2025 in strong health. Across C&W Caribbean, C&W Panama and Liberty Costa Rica, we added close to 60,000 organic broadband and postpaid mobile net subscriber additions, a greater than 50% increase compared to Q4. Driving FMC penetration higher is a key part of our strategy.” “This fed through into a strong financial performance, with rebased Adjusted OIBDA growth of 8% YoY driven by double-digit Adjusted OIBDA growth in both C&W Caribbean and C&W Panama.” “This performance reflects the benefits of investments in our networks and products in recent years through upgrades, coverage expansion and selective spectrum acquisitions. We are still investing where we see opportunities, including in the roll out of new subsea cable systems which will drive revenue in future years. More broadly across the Group, though, we continue to anticipate capital intensity declining, while remaining laser-focused on cost efficiencies, to support Adjusted FCF growth.” “In Puerto Rico, we are confident we have the right assets in place to rebuild momentum and scale in mobile and continue to see FMC as a key differentiator for us going forward. However, after a challenging migration through 2024, which negatively impacted our Adjusted OIBDA and Adjusted FCF, progress on mobile remains slower than we had anticipated through the early stages of 2025. Given the cadence of recovery in Puerto Rico, we feel it best to withdraw LLA’s mid-term (2024-2026) outlook at this stage.” “Outside of Puerto Rico, and as evidenced by our Q1 numbers, we are tracking well to our previous expectations for both Adjusted OIBDA and Adjusted FCF before distributions. Notwithstanding pacing in Puerto Rico, we still expect to meaningfully grow Group Adjusted OIBDA and Adjusted FCF before distributions in 2025.” Business Highlights C&W Caribbean: Record Adjusted OIBDA for the quarter Strong postpaid mobile adds, and prepaid price increases, primarily in Jamaica Adjusted OIBDA margin up over 600 basis points YoY to 48% on strong cost reduction C&W Panama: Strongest reported and rebased revenue growth across the group at 5% YoY Continued momentum in mobile YoY rebased Adjusted OIBDA growth of 15% Liberty Networks: solid rebased revenue growth of 3% YoY Revenue growth driven by both wholesale and enterprise Sub-sea cable system investments to provide additional mid-term revenues Liberty Puerto Rico: mobile turnaround slower than expected, fixed sequentially stable Postpaid mobile churn continues to fall post-migration, though remains elevated Focus on cost initiatives, falling capital intensity, as well as go-to-market Liberty Costa Rica: solid quarter with rebased revenue growth of 2% YoY Mobile revenue supported by continued prepaid-to-postpaid migration strategy Strong mobile offsetting competitive fixed market Financial and Operating Highlights Financial Highlights Q1 2025 Q1 2024 YoY Increase / (Decrease) YoY Rebased Increase / (Decrease)1 (USD in millions) Revenue $ 1,084 $ 1,099 (1 %) (2 %) Operating income $ 128 $ 93 38 % Adjusted OIBDA2 $ 407 $ 374 9 % 8 % Property & equipment additions $ 120 $ 135 (11 %) As a percentage of revenue 11 % 12 % Adjusted FCF before distributions to noncontrolling interest owners $ (103 ) $ (150 ) Distributions to noncontrolling interest owners (29 ) — Adjusted FCF3 $ (133 ) $ (150 ) Cash provided by operating activities $ 25 $ 23 Cash used by investing activities $ (95 ) $ (117 ) Cash provided (used) by financing activities $ 3 $ (226 ) Amounts may not recalculate due to rounding. Rebased growth rates are a non-GAAP measure. The indicated growth rates are rebased for the estimated impacts of FX and an acquisition. See Non-GAAP Reconciliations below. Consolidated Adjusted OIBDA is a non-GAAP measure. For the definition of Adjusted OIBDA and required reconciliations, see Non-GAAP Reconciliations below. Adjusted Free Cash Flow (“Adjusted FCF”) is a non-GAAP measure. For the definition of Adjusted FCF and required reconciliations, see Non-GAAP Reconciliations below. Operating Highlights1 Q1 2025 Q4 2024 Total customers 1,938,500 1,936,500 Organic customer additions (losses) 2,000 (2,700 ) Fixed RGUs 4,007,900 3,987,600 Organic RGU additions 20,300 14,100 Organic internet additions 7,300 3,700 Mobile subscribers2 6,728,500 6,745,300 Organic mobile additions (losses)2 (16,800 ) 67,200 Organic postpaid additions2 36,400 24,400 See Glossary for the definition of RGUs and mobile subscribers. Organic figures exclude RGUs and mobile subscribers of acquired entities at the date of acquisition and other non-organic adjustments, but include the impact of changes in RGUs and mobile subscribers from the date of acquisition. All subscriber / RGU additions or losses refer to net organic changes, unless otherwise noted. Refer to the quarterly subscriber variance table for discussion about non-organic adjustments in Q1 2025 at Liberty Puerto Rico and Liberty Costa Rica. The Q4 2024 mobile subscriber balance and organic changes presented in this table have been adjusted for comparability purposes. Revenue Highlights The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis: Three months ended Increase/(decrease) March 31, 2025 2024 % Rebased % in millions, except % amounts C&W Caribbean $ 363.9 $ 364.2 — — C&W Panama 177.0 169.2 5 5 Liberty Networks 110.4 108.5 2 3 Liberty Puerto Rico 298.4 327.2 (9 ) (11 ) Liberty Costa Rica 158.2 152.3 4 2 Corporate 3.9 5.1 (24 ) (24 ) Eliminations (28.3 ) (27.1 ) N.M. N.M. Total $ 1,083.5 $ 1,099.4 (1 ) (2 ) N.M. – Not Meaningful. Reported revenue was 1% lower for the three months ended March 31, 2025, as compared to the corresponding prior-year period. Reported revenue declined in Q1 primarily driven by a reduction in Liberty Puerto Rico. This was partly offset by growth in C&W Panama and Liberty Costa Rica. Q1 2025 Revenue Growth – Segment Highlights C&W Caribbean: revenue was flat on a reported and rebased basis, year-over-year. Mobile residential revenue increased by 4% on a reported basis and 5% on a rebased basis. Performance was mainly driven by higher prepaid ARPU following price increases, primarily in Jamaica, and 42,000 net postpaid subscriber additions over the last twelve months. Fixed residential revenue was flat on a reported basis and rebased basis. B2B revenue was 3% lower on both a reported and rebased basis. Year-over-year rebased decline was mainly driven by a decrease in project revenue. C&W Panama: revenue was robust, growing by 5% on a reported and rebased basis, year-over-year. Mobile residential revenue grew by 16% on a reported and rebased basis driven by: (i) subscription growth following the addition of 70,000 postpaid subscribers over the last twelve months, including gains following the exit of a competitor, (ii) improved prepaid ARPU and (iii) higher equipment sales. Fixed residential revenue was down 1% on a reported basis and up 3% on a rebased basis driven by broadband RGU additions following expansion of our FTTH networks, products and commercial activities. B2B revenue fell by 6% on a reported and rebased basis primarily due to lower revenue from government-related projects. Liberty Networks: revenue grew by 2% and 3% year-over-year on a reported and rebased basis, respectively. The rebased increase was driven by wholesale revenue, with higher lease capacity and project revenue offsetting lower non-cash IRU revenue. Enterprise revenue continues to benefit from managed services and B2B connectivity. Liberty Puerto Rico: revenue was 9% and 11% lower on a reported and rebased basis, respectively, year-over-year. The rebased comparison includes the acquisition of EchoStar’s Puerto Rico and USVI prepaid mobile customer base on September 3, 2024, which contributed approximately $10 million of revenue in each of the current and corresponding prior-year quarters. Residential fixed revenue declined by 1% on both a reported and rebased basis, primarily due to a decline in the subscriber base, including the impact related to the end of the ACP program and lower ARPU from retention-related discounts more than offsetting price increases applied during the period. Residential mobile revenue was 10% and 16% lower compared to the prior-year period on a reported and rebased basis, respectively. This was largely driven by a reduction in postpaid mobile subscribers and ARPU, year-over-year, impacted by disruption related to the migration of customers to our mobile network. Prepaid revenue was stable over the period. B2B revenue declined by 22% on both a reported and rebased basis. The decline was driven by lower service revenues resulting from (i) a lower subscriber base impacted by migration challenges, (ii) lower mobile ARPU and (iii) cancellation of the FCC’s Emergency Connectivity Fund (ECF) during the second quarter of 2024, which led to a reduction of 61,000 mobile postpaid subscribers over the past year. Sequentially, revenue declined by 6% on a reported basis driven by (i) lower equipment sales, (ii) lower FCC revenue, (iii) lower roaming revenue and (iv) underlying pressure on postpaid revenue. We continue to focus efforts on further reducing postpaid churn and will look for better momentum on subscriber additions as we refresh our customer value propositions in Puerto Rico, including leveraging FMC as a point of differentiation. Liberty Costa Rica: revenue grew by 4% on a reported basis and 2% on a rebased basis, year-over-year. The year-over-year rebased growth was driven by higher mobile revenue, primarily due to postpaid subscriber growth and higher mobile equipment sales, as well as an increase in B2B project-related revenue, which more than offset continued ARPU headwinds on residential fixed. Operating Income Operating income was $128 million and $93 million for the three months ended March 31, 2025 and 2024, respectively. Operating income increased during the three months ended March 31, 2025, as compared to the corresponding period in 2024, primarily due to an increase in Adjusted OIBDA. Adjusted OIBDA Highlights The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis: Three months ended Increase (decrease) March 31, 2025 2024 % Rebased % in millions, except % amounts C&W Caribbean $ 173.3 $ 150.6 15 16 C&W Panama 64.6 56.8 14 15 Liberty Networks 57.9 59.2 (2 ) (2 ) Liberty Puerto Rico 81.5 69.1 18 16 Liberty Costa Rica 58.9 58.3 1 (1 ) Corporate (29.6 ) (19.8 ) (49 ) (49 ) Total $ 406.6 $ 374.2 9 8 Operating income margin 11.8 % 8.4 % Adjusted OIBDA margin 37.5 % 34.0 % Reported and rebased Adjusted OIBDA for the three months ended March 31, 2025 increased by 9% and 8%, respectively, as compared to the corresponding prior-year period. Reported Adjusted OIBDA increased in Q1 driven by growth across C&W Caribbean, Liberty Puerto Rico and C&W Panama. Strong focus on cost management, notably in C&W Caribbean. Q1 2025 Adjusted OIBDA Growth – Segment Highlights C&W Caribbean: Adjusted OIBDA increased by 15% and 16% on a reported and rebased basis, respectively, year-over-year. Our Adjusted OIBDA margin improved by over 600 basis points year-over-year to 48% in the first quarter. C&W Caribbean continues to demonstrate strong progress on cost, with reductions coming from facility-related costs, lower staffing, network and commercial expenses. C&W Panama: Adjusted OIBDA increased by 14% on a reported basis and 15% on a rebased basis, year-over-year, driven by strong revenue growth and operational leverage. Liberty Networks: Adjusted OIBDA decreased by 2% on both a reported and a rebased basis, year-over-year, with higher network and interconnect expenses in the quarter offset by revenue growth in wholesale and enterprise. Liberty Puerto Rico: Adjusted OIBDA increased by 18% and 16% on a reported and rebased basis, respectively, year-over-year. The positive performance came despite the aforementioned revenue decline and was supported by (i) the phasing out of prior period integration costs, (ii) lower equipment costs, (iii) lower FTEs in the period, (iv) lower interconnect costs and (v) the termination of our transition services agreement with AT&T following migration. Compared to Q4 2024, Adjusted OIBDA this quarter was up 2% on a reported basis with the sequential decline in revenue of $18 million compensated by (i) a significant decline in bad debt expense related to charges taken in Q4 2024 due to mobile equipment installment programs and (ii) lower equipment costs given lower handset sales. Liberty Costa Rica: Adjusted OIBDA grew by 1% on a reported basis and declined by 1% on a rebased basis, year-over-year. The rebased performance reflects higher handset costs and bad debt expense. Net Loss Attributable to Shareholders Net loss attributable to shareholders was $136 million and $1 million for the three months ended March 31, 2025 and 2024, respectively. Property & Equipment Additions and Capital Expenditures The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures, net. Three months ended March 31, 2025 2024 USD in millions Customer Premises Equipment $ 42.9 $ 41.3 New Build & Upgrade 19.0 24.0 Capacity 20.2 23.5 Baseline 32.9 37.9 Product & Enablers 5.3 8.2 Property & equipment additions 120.3 134.9 Assets acquired under capital-related vendor financing arrangements (37.6 ) (34.0 ) Changes in current liabilities related to capital expenditures and other 14.0 8.8 Capital expenditures, net $ 96.7 $ 109.7 Property & equipment additions as % of revenue 11.1 % 12.3 % Property & Equipment Additions: C&W Caribbean $ 37.5 $ 44.3 C&W Panama 14.7 16.6 Liberty Networks 18.4 11.8 Liberty Puerto Rico 28.6 41.0 Liberty Costa Rica 15.2 11.1 Corporate 5.9 10.1 Property & equipment additions $ 120.3 $ 134.9 Property & Equipment Additions as a Percentage of Revenue by Reportable Segment: C&W Caribbean 10.3 % 12.2 % C&W Panama 8.3 % 9.8 % Liberty Networks 16.7 % 10.9 % Liberty Puerto Rico 9.6 % 12.5 % Liberty Costa Rica 9.6 % 7.3 % New Build and Homes Upgraded by Reportable Segment1 : C&W Caribbean 22,200 22,400 C&W Panama 22,300 17,300 Liberty Puerto Rico 800 13,800 Liberty Costa Rica 30,000 19,100 Total 75,300 72,600 Table excludes Liberty Networks as that segment only provides B2B-related services. Summary of Debt, Finance Lease Obligations and Cash & Cash Equivalents The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at March 31, 2025: Debt Finance lease obligations Debt and finance lease obligations Cash, cash equivalents and restricted cash related to debt in millions Liberty Latin America1 $ 2.2 $ — $ 2.2 $ 61.1 C&W2 5,001.9 — 5,001.9 482.6 Liberty Puerto Rico3 2,756.1 4.3 2,760.4 37.7 Liberty Costa Rica 485.0 — 485.0 7.1 Total $ 8,245.2 $ 4.3 $ 8,249.5 $ 588.5 Consolidated Leverage and Liquidity Information: March 31, 2025 December 31, 2024 Consolidated debt and finance lease obligations to operating income (loss) ratio 16.1x (16.2)x Consolidated net debt and finance lease obligations to operating income (loss) ratio 15.0x (14.8)x Consolidated gross leverage ratio4 4.9x 4.9x Consolidated net leverage ratio4 4.6x 4.5x Weighted average debt tenor5 5.1 years 4.1 years Fully-swapped borrowing costs 6.5% 6.2% Unused borrowing capacity (in millions)6 $768.2 $796.3 Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups. Represents the C&W borrowing group, including the C&W Caribbean, Liberty Networks and C&W Panama reportable segments. Cash amount includes restricted cash that serves as collateral against certain letters of credit associated with the funding received from the FCC to continue to expand and improve our fixed network in Puerto Rico. Consolidated leverage ratios are non-GAAP measures. For additional information, including definitions of our consolidated leverage ratios and required reconciliations, see Non-GAAP Reconciliations below. For purposes of calculating our weighted average tenor, total debt excludes vendor financing, debt related to the Tower Transactions, other debt and finance lease obligations. At March 31, 2025, the full amount of unused borrowing capacity under our subsidiaries’ revolving credit facilities was available to be borrowed, both before and after completion of the March 31, 2025 compliance reporting requirements. Quarterly Subscriber Variance Fixed and Mobile Subscriber Variance Table — March 31, 2025 vs December 31, 2024 Homes Passed Fixed-line Customer Relationships Video RGUs Internet RGUs Telephony RGUs Total RGUs Prepaid Postpaid Total Mobile Subscribers C&W Caribbean: Jamaica 800 2,800 (2,000 ) 3,800 3,600 5,400 (31,200 ) 7,600 (23,600 ) The Bahamas — (400 ) 200 400 (500 ) 100 2,200 1,200 3,400 Trinidad and Tobago — (1,400 ) (1,500 ) (1,300 ) (800 ) (3,600 ) — — — Barbados — 100 (100 ) 300 (400 ) (200 ) (2,400 ) 1,500 (900 ) Other 1,600 (300 ) (700 ) 1,300 (500 ) 100 (3,900 ) 4,300 400 Total C&W Caribbean 2,400 800 (4,100 ) 4,500 1,400 1,800 (35,300 ) 14,600 (20,700 ) C&W Panama 7,100 2,000 2,600 2,400 2,500 7,500 (6,000 ) 4,400 (1,600 ) Total C&W 9,500 2,800 (1,500 ) 6,900 3,900 9,300 (41,300 ) 19,000 (22,300 ) Liberty Puerto Rico 600 (4,000 ) (2,400 ) (3,200 ) 3,700 (1,900 ) (6,300 ) (12,900 ) (19,200 ) Liberty Costa Rica 19,800 3,200 4,100 3,600 5,200 12,900 (5,600 ) 30,300 24,700 Total Organic Change 29,900 2,000 200 7,300 12,800 20,300 (53,200 ) 36,400 (16,800 ) Q1 2025 Adjustments: C&W Caribbean – Jamaica 4,900 — — — — — — — — Liberty Puerto Rico1 — — — — — — — (125,000 ) (125,000 ) Liberty Costa Rica2 — — — — — — (1,184,000 ) — (1,184,000 ) Total Q1 2025 Adjustments: 4,900 — — — — — (1,184,000 ) (125,000 ) (1,309,000 ) Net additions (losses) 34,800 2,000 200 7,300 12,800 20,300 (1,237,200 ) (88,600 ) (1,325,800 ) Represents the removal of Corporate Responsible Users (CRUs) from our postpaid subscriber base resulting in consistent presentation and ARPU calculations across our operations. CRUs represent an individual receiving mobile services through an organization that has entered into a contract for mobile services with us and where the organization is responsible for the payment of the CRU’s mobile services. Represents an adjustment to our prepaid subscriber base primarily resulting from the closer alignment of our subscriber recognition policies with the definitions of the local regulator. ARPU per Customer Relationship The following table provides ARPU per customer relationship for the indicated periods: Three months ended March 31, 2025 December 31, 2024 % Change FX-Neutral1 % Change Reportable Segment: C&W Caribbean $ 50.71 $ 49.74 2 % 2 % C&W Panama $ 37.92 $ 38.45 (1 %) (1 %) Liberty Puerto Rico $ 72.85 $ 72.16 1 % 1 % Liberty Costa Rica2 $ 40.96 $ 41.41 (1 %) (2 %) Cable & Wireless Borrowing Group $ 47.58 $ 46.96 1 % 1 % Mobile ARPU The following table provides ARPU per mobile subscriber for the indicated periods: Three months ended March 31, 2025 December 31, 2024 % Change FX-Neutral1 % Change Reportable Segment: C&W Caribbean $ 15.19 $ 15.21 — % — % C&W Panama $ 12.13 $ 12.40 (2 %) (2 %) Liberty Puerto Rico3,4 $ 36.22 $ 35.32 3 % 3 % Liberty Costa Rica5, 6 $ 11.39 $ 11.52 (1 %) (2 %) Cable & Wireless Borrowing Group $ 13.66 $ 13.81 (1 %) (1 %) The FX-Neutral change represents the percentage change on a sequential basis adjusted for FX impacts and is calculated by adjusting the current-period figures to reflect translation at the foreign currency rates used to translate the prior quarter amounts. The ARPU per customer relationship amounts in Costa Rican colones for the three months ended March 31, 2025 and December 31, 2024 were CRC 20,684 and CRC 21,157, respectively. For consistency across our operations, the 2024 period has been updated to remove CRUs (as defined in glossary) and the corresponding B2B revenue from the calculation of ARPU. The sequential increase in ARPU is impacted by approximately $5 million in credits recorded as a reduction to revenue during the three months ended December 31, 2024. The mobile ARPU amount in Costa Rican colones for the three months ended March 31, 2025 and December 31, 2024 were CRC 5,750 and CRC 5,885, respectively. The 2024 period has been updated for an adjustment to our prepaid subscriber base resulting from the alignment of our subscriber recognition policies with the definitions of the local regulator. Forward-Looking Statements and Disclaimer This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, financial and operational performance, growth expectations; our digital strategy, product innovation and commercial plans and projects; subscriber growth; expectations on demand for connectivity in the region; the recovery by our Puerto Rico operations; the strength of our balance sheet and tenor of our debt; capital intensity expectations; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the ability to obtain regulatory approvals and satisfy the other conditions to closing with respect to the transaction with Millicom in Costa Rica; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies’ future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. Contacts Investor Relations Soomit Datta ir@lla.com Corporate Communications Michael Coakley llacommunications@lla.com Read full story here Der Beitrag Liberty Latin America Reports Q1 2025 Results erschien zuerst auf subcablenews.com .