Liberty Latin America Reports Mixed Q4 and FY 2024 Results

Liberty Latin America reported a slight decline in both quarterly and annual revenues. For Q4 2024, total revenue was $1.150 billion, down 1% from $1.164 billion in Q4 2023. For FY 2024, revenue decreased by 1% to $4.457 billion from $4.511 billion in FY 2023. The decline was largely attributed to reduced revenue in Liberty Puerto Rico, which was partially offset by organic growth in Liberty Costa Rica, C&W Caribbean, and C&W Panama.

Operating income for Q4 2024 was $128 million, showing a 13% increase from $113 million in Q4 2023. However, for the full year, the company reported an operating loss of $48 million compared to a profit of $518 million in FY 2023. This significant downturn in annual operating income was primarily due to an impairment of goodwill related to Liberty Puerto Rico and a decrease in Adjusted OIBDA.

The company's Adjusted OIBDA for Q4 2024 was $427 million, a slight decrease of 1% year-over-year. For the full year, Adjusted OIBDA fell by 6% to $1.594 billion compared to $1.702 billion in FY 2023.

CEO Balan Nair emphasized the company's commitment to growth through substantial investments in networks and products. The company successfully increased broadband and postpaid mobile subscribers, with particular success in the C&W Caribbean, Panama, and Costa Rica regions. However, challenges in Puerto Rico remain a concern as the company completes its migration from AT&T's platforms.

Nair stated, “In Puerto Rico, we had a challenging year as we completed our migration from AT&T's platforms and we now aim to pivot to a growth trajectory for this business.” He also highlighted that by the end of 2024, 97% of fixed networks were capable of delivering speeds of at least 1Gbps, up from approximately 80% at the end of 2023.

Liberty Latin America reported property and equipment additions of $240 million for Q4, a 16% increase from $207 million in Q4 2023. The company has focused on upgrading its infrastructure, with plans to build new subsea systems and enhance existing routes.

The company also strengthened its capital structure by successfully refinancing $3.3 billion of debt since October 2024, extending the weighted average maturity profile of the C&W credit silo to 6.5 years. This refinancing activity demonstrates Liberty Latin America's ability to access capital markets efficiently and positions the business for future growth.

As Liberty Latin America looks to 2025, the company remains confident in its ability to achieve its three-year guidance targets for Adjusted OIBDA and Adjusted Free Cash Flow (FCF). Although the company reduced its annual expectations for property and equipment additions to revenue to 14% from 16%, this adjustment is intended to support improved cash flow generation.

Nair concluded, “We are positioned for a positive year and continue to see a path to achieving our previously announced three-year guidance targets for Adjusted OIBDA and Adjusted FCF.”

Liberty Latin America's Q4 and FY 2024 results reflect both growth in certain markets and significant challenges in Puerto Rico. The company's strategic investments and operational efficiencies have led to subscriber growth in several regions, but the transition in Puerto Rico remains a critical focus for future growth. As the company navigates these challenges, its strong capital structure and commitment to network improvements position it well for the future.