Liberty Latin America Reports Q4 and FY 2024 Results with Strong Adjusted OIBDA Growth

Liberty Latin America reported Q4 and FY 2024 results, with CEO Balan Nair highlighting significant investments in networks and products driving broadband and postpaid mobile subscriber growth. The company has a focus on cost efficiencies and strong Adjusted OIBDA growth in C&W Caribbean, Panama, and Costa Rica. Despite a challenging year in Puerto Rico, Liberty Latin America is committed to delivering leading services across its markets and investing in fixed, mobile, and subsea networks. The company has strengthened its capital structure and is positioned for a positive 2025 with a path to achieving its previously announced guidance targets for Adjusted OIBDA and Adjusted FCF.

Liberty Latin America (LILAK) recently reported its Q4 and FY 2024 results, showcasing a mixed performance with significant achievements in network infrastructure, subscriber growth, and financial strengthening (1). The company added approximately 100,000 organic fixed and mobile subscribers in 2024, upgrading its network to 97% Gigabit-ready coverage (1).

C&W Caribbean, Panama, and Costa Rica emerged as standout performers, with robust revenue and Adjusted OIBDA growth. C&W Caribbean achieved a remarkable 200 basis point improvement in Adjusted OIBDA margin to 43%, while C&W Panama capitalized on a competitor's exit to add over 100,000 mobile subscribers (1). Costa Rica's impressive performance, with 110,000 postpaid additions and double-digit growth in both revenue and Adjusted OIBDA, highlights successful market penetration strategies (1).

However, Puerto Rico operations faced challenges, with subscriber losses and ARPU decline due to the migration from AT&T's platforms (1). Sequential improvements in Q4 2024 suggest the beginning of stabilization, indicating potential for recovery in the near future.

To further strengthen its financial foundation, Liberty Latin America successfully refinanced $3.3 billion of C&W credit silo debt, extending the weighted average maturity to 6.5 years (1). This strategic move significantly reduces financial risk and provides enhanced operational flexibility.

Despite facing challenges in Puerto Rico, Liberty Latin America remains committed to its previously announced three-year guidance targets for Adjusted OIBDA and Adjusted FCF (1). To support this commitment, the company is reducing annual expectations for P&E additions to revenue from 16% to 14%, signaling a shift from heavy infrastructure investment to operational optimization (1).

Liberty Latin America's network modernization strategy has yielded tangible results, with 97% of fixed networks now Gigabit-capable (1). This positions the company advantageously in the high-speed broadband market, ensuring long-term growth potential.

In conclusion, Liberty Latin America's Q4 and FY 2024 results demonstrate a company in transition, with distinct regional performance variations that merit careful analysis. The successful refinancing of $3.3 billion in the C&W credit silo, extending the weighted average maturity to 6.5 years, significantly strengthens the company's financial foundation and provides enhanced operational flexibility. The standout performers, such as C&W Caribbean, Panama, and Costa Rica, demonstrate robust operational execution, while Puerto Rico faces challenges that require careful attention. Liberty Latin America's commitment to its previously announced guidance targets and its strategic shift towards operational optimization position the company for a positive 2025.

References:
1. https://www.stocktitan.net/news/LILAK/liberty-latin-america-reports-q4-and-fy-2024-6wdah0jxqwbz.html