Liberty Latin America's Q2 2025 Earnings Call: Unpacking Key Contradictions in Puerto Rico Management, EBITDA Targets, and Spectrum Valuation

Management changes in Puerto Rico, Puerto Rico EBITDA target, spectrum impairment reasoning, Panama B2B revenue and margin improvements, Puerto Rico spectrum valuation and impairment are the key contradictions discussed in Liberty Latin America's latest 2025Q2 earnings call.



Revenue and Subscriber Growth:
- Liberty Latin America (LILA) reported $2.2 billion in revenue for the first half of 2025, with residential revenue up 2% in Liberty Caribbean and Costa Rica and 8% in C&W Panama year-over-year on a rebased basis.
- This growth was driven by an increase in high-speed broadband and postpaid mobile subscribers, particularly in regions like Costa Rica, Panama, and Jamaica.

Adjusted OIBDA and Capital Efficiency:
- The company posted adjusted OIBDA of $822 million, reflecting a rebased year-over-year growth rate of 8%, with a margin of 25% of revenue in the first half.
- This improvement was attributed to focused efforts on lowering capital intensity, which resulted in a 23% expansion in adjusted OIBDA less P&E additions.

B2B Challenges and Prospects:
- The B2B segment faced year-over-year revenue headwinds, particularly in Panama, in Q2, but is expected to improve in the second half across several geographies.
- The challenges were due to a strong comparison from the previous year and some projects delayed by bureaucracy, while improvements are anticipated due to increased government investment in digitization and cloud computing.

Puerto Rico Operational Improvements:
- Mobile performance in Puerto Rico showed signs of improvement with postpaid losses lower compared to Q1, and mobile ARPU increased sequentially.
- The strategic enhancements, including the integration of low-band 600 megahertz spectrum, and the management team's focus on operational improvements are driving this progress.