Liberty Latin America (LLA) held its third quarter 2024 earnings call, shedding light on the company's strategic moves, financial performance, and future outlook. The call, led by CEO Balan Nair, provided insights into the company's operational highlights, financial metrics, and strategic investments, offering a comprehensive view of Liberty Latin America's current state and future prospects.
Operational Highlights and Financial Performance
The third quarter of 2024 saw Liberty Latin America adding over 50,000 high-speed broadband and postpaid mobile subscribers year-to-date, despite facing challenges in certain regions, such as Cable & Wireless Caribbean, where Hurricane Beryl impacted operations. The company reported adjusted OIBDA of $1.2 billion year-to-date, with rebased growth in C&W Caribbean, C&W Panama, and Liberty Costa Rica. Notably, Liberty Latin America successfully refinanced $1 billion of its Cable & Wireless credit silo senior notes, reflecting the strength of its financial position.
Strategic Investments and Future Outlook
LLA announced an investment in a large and growing market in Peru, where the company has built significant fiber footprint and sees potential to create value. Additionally, the addition of Sparkle to its new pan-regional subsea system will enhance the system's value and position LLA as a key player in the region's digital infrastructure development. These strategic moves demonstrate LLA's commitment to capitalizing on emerging opportunities and positioning itself for future growth.
Challenges and Opportunities
The call also highlighted challenges, such as the slow recovery in Puerto Rico, where the company is working to regain commercial momentum and improve operational efficiency. Despite these challenges, LLA remains optimistic about the future, with plans to invest in 2025 to drive adjusted OIBDA expansion. The company is also focusing on leveraging its FMC capabilities and achieving targeted cost savings to support its long-term growth strategy.
Capital Allocation and Future Plans
In response to questions about capital allocation, CEO Balan Nair reiterated LLA's intent to operate Puerto Rico on a cash basis and avoid external support. He also provided updates on the company's strategic investments in Peru, where LLA has allocated around $100 million over the past 3 years. The company is also exploring converged bundles and upgrading to 5G and 4G networks in its key markets, which could expand its addressable market and impact subs and revenues positively.
Conclusion
Liberty Latin America's third quarter earnings call provided a comprehensive overview of the company's operational highlights, financial performance, and future outlook. Despite facing challenges, particularly in Puerto Rico, the company remains optimistic about its prospects, with a focus on cost cutting, strategic investments, and operational efficiency. With a strong financial position and strategic investments in key markets, Liberty Latin America is well-positioned to capitalize on emerging opportunities and drive future growth.