Liberty Latin A 2025 Q2 Earnings Widening Losses Despite Revenue Stabilization

Liberty Latin A (LILA) reported its fiscal 2025 Q2 earnings on August 7, 2025. The company missed expectations with a significant widening of losses, despite reporting slightly lower revenue. The company provided no guidance adjustments, and results were in line with its ongoing focus on cost discipline and operational efficiency.

Revenue
Total revenue for Q2 2025 declined slightly by 2.8% to $1.09 billion, compared to $1.12 billion in Q2 2024. Cable & Wireless (C&W) remained the largest contributor, generating $543.60 million in revenue. Liberty Caribbean followed closely with $366.30 million, while C&W Panama added $177.30 million. Liberty Puerto Rico and Liberty Costa Rica reported $301.30 million and $151.30 million, respectively. Liberty Networks contributed $114.60 million, and corporate revenue stood at $3.80 million. Intersegment eliminations reduced the total by $27.90 million, resulting in consolidated revenue of $1.09 billion.

Earnings/Net Income
Liberty Latin A’s net loss widened substantially in Q2 2025 to $415.10 million, or $2.12 per share, a 1024.9% increase from the $36.90 million, or $0.22 per share, loss in the prior year period. This marked a significant deterioration in earnings performance, highlighting ongoing operational challenges. The steep rise in per-share loss underscores the company’s deepening financial pressures.

Price Action
Shares of Liberty Latin America surged across multiple time frames, with a 7.55% gain in the latest trading day, 11.06% for the week, and a strong 24.29% increase month-to-date.

Post Earnings Price Action Review
The strategy of purchasing LILA shares following a revenue increase in a quarterly report and holding for 30 days yielded moderate returns but underperformed the market. With a CAGR of 1.90%—significantly trailing the benchmark by 45.96%—the strategy exhibited minimal risk, as reflected in its 0.00% maximum drawdown and a Sharpe ratio of 0.04. While conservative in nature, it offered limited upside, making it more appropriate for risk-averse investors.

CEO Commentary
CEO Balan Nair highlighted positive subscriber growth in broadband and postpaid mobile segments across key markets, with over 100,000 net additions in H1. Cost-cutting initiatives contributed to a 7% and 8% YoY growth in rebased Adjusted OIBDA in Q2 and H1, respectively. Nair noted strong performance from Liberty Caribbean and Liberty Puerto Rico, where the latter achieved 21% YoY rebased Adjusted OIBDA growth and sequential improvement from Q1. While B2B revenue faced challenges in H1, the CEO expressed confidence in stronger momentum for the remainder of the year. He outlined plans to spin off Liberty Puerto Rico to unlock shareholder value and improve cash flow for LLA’s core operations.

Guidance
The company expects stronger B2B revenue in H2 and anticipates continued Adjusted OIBDA growth for its core operations, supported by infrastructure investments and cost efficiencies. Liberty Puerto Rico is expected to fund any additional capital needs independently. Post-separation, LLA aims to maintain a less leveraged balance sheet to support a sustainable capital return policy through dividends and stock repurchases.

Additional News
Within three weeks of the earnings release, Liberty Latin A announced plans to separate Liberty Puerto Rico into an independent entity to unlock shareholder value and streamline operations. The CEO emphasized that the spinoff would allow LLA to focus on its core markets while improving the overall capital structure. Additionally, the company confirmed it would maintain an active capital return policy post-separation, including recurring dividends and potential share repurchases. No recent C-level changes were reported.