On August 6, 2024, Liberty Latin America Ltd (LILA, Financial) released its 8-K filing detailing its financial and operating results for the second quarter (Q2) and first half (H1) of 2024. Liberty Latin America Ltd is a telecommunications company providing video, broadband internet, fixed-line telephony, and mobile services to residential and business customers. The company's reportable segments include C&W Caribbean, Liberty Networks, C&W Panama, VTR, Liberty Puerto Rico, and Liberty Costa Rica, with the majority of revenue generated from the C&W Caribbean and Liberty Puerto Rico segments.
Performance Overview
Liberty Latin America Ltd (LILA, Financial) reported Q2 2024 revenue of $1,118 million, slightly below the analyst estimate of $1,133.29 million. The company also reported a net loss attributable to shareholders of $43 million for Q2 2024, compared to net earnings of $35 million in Q2 2023. The reported earnings per share (EPS) for the quarter were not provided, but the annual estimate stands at $0.81.
Key Financial Metrics
Liberty Latin America Ltd (LILA, Financial) highlighted several key financial metrics in its earnings report:
| Metric | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Revenue | $1,118 million | $1,120 million | -1% |
| Operating Income | $111 million | $135 million | -18% |
| Adjusted OIBDA | $389 million | $441 million | -12% |
| Property & Equipment Additions | $180 million | $192 million | -7% |
Segment Performance
Liberty Latin America Ltd (LILA, Financial) experienced varied performance across its segments:
- C&W Caribbean: Reported and rebased revenue growth of 3% and 4%, respectively, driven by growth across all product areas.
- C&W Panama: Strong subscriber growth with 51,000 postpaid mobile subscriber additions, leading to revenue and Adjusted OIBDA growth of 9% and 10%, respectively.
- Liberty Networks: Resilient performance with a 17% increase in enterprise revenue.
- Liberty Puerto Rico: Faced challenges post-migration, resulting in a 12% decline in revenue and a 48% decline in Adjusted OIBDA.
- Liberty Costa Rica: Continued mobile momentum with a 9% increase in revenue and a 7% increase in Adjusted OIBDA.
Challenges and Future Outlook
Liberty Latin America Ltd (LILA, Financial) faced significant challenges in Puerto Rico due to post-migration impacts, which are expected to stabilize and improve in the second half of 2024. Additionally, Hurricane Beryl impacted operations in Jamaica and other smaller markets within C&W Caribbean, leading to an estimated negative impact of $10 million to $20 million on revenue and Adjusted OIBDA for the remainder of 2024.
"We continued to drive operational and financial growth across most of our businesses in the second quarter with notably strong performances in Panama, Costa Rica, and the Caribbean. In Puerto Rico, whilst we experienced additional challenges following completion of the mobile subscriber migration, we remain confident of improved performance in the second half." - CEO Balan Nair
Financial Achievements
Despite the challenges, Liberty Latin America Ltd (LILA, Financial) achieved several financial milestones:
- Repurchased $83 million worth of stock year-to-date, representing 12 million shares.
- Entered into an agreement to combine operations with Tigo in Costa Rica, expected to close in the second half of 2025.
- Launched 5G services in Costa Rica, gaining traction in the market.
Conclusion
Liberty Latin America Ltd (LILA, Financial) demonstrated resilience and strategic growth in several key markets despite facing operational challenges in Puerto Rico and the impact of Hurricane Beryl. The company's focus on broadband and postpaid mobile additions, coupled with strategic acquisitions and partnerships, positions it for improved performance in the second half of 2024.
Explore the complete 8-K earnings release (here) from Liberty Latin America Ltd for further details.
