Group 1 - The article discusses the potential for revenue growth in Liberty Latin America Ltd. (NASDAQ: LILA) driven by WiFi optimization, network expansion, and growth in the video streaming market [1] - The author has extensive experience in the financial industry, having worked in equity research, investment funds, and investment banking, focusing on small and medium-cap companies [1] - The investment strategy emphasizes deep value investments, M&A deals, and dividend investing, targeting an internal rate of return of approximately 5%-7% [1] Group 2 - The author holds a beneficial long position in LILA shares, indicating confidence in the company's future performance [2] - The article is a personal opinion piece and does not constitute financial advice, highlighting the author's independent analysis [2] - There is a disclaimer regarding the nature of past performance not guaranteeing future results, emphasizing the speculative nature of investment [3]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $1.1 billion, a 2% decrease on a rebased basis compared to the previous year [22] - Adjusted OIBDA increased by 8% year over year to $407 million, with three of the five operating segments posting year-over-year rebased growth [23] - Adjusted OIBDA less P and E additions rose to $286 million, representing 26% of revenue compared to 22% in the previous year [23] Business Line Data and Key Metrics Changes - The Cable and Wireless Caribbean segment generated $364 million in revenue with flat rebased growth, driven by a 5% increase in mobile revenue [26] - Cable and Wireless Panama reported $177 million in revenue, reflecting a 5% rebased growth, with mobile revenue increasing by 16% [28] - Liberty Networks generated $110 million in revenue, with a 3% rebased growth, while adjusted OIBDA declined by 2% due to higher network maintenance expenses [28] Market Data and Key Metrics Changes - In Puerto Rico, Q1 revenue was $298 million, reflecting an 11% rebased decline year over year, primarily due to lower mobile and B2B revenues [30] - Liberty Costa Rica delivered Q1 revenue of $158 million, with a 2% rebased growth, while adjusted OIBDA declined by 1% [31] - The company added 44,000 broadband and postpaid mobile subscribers in total during the quarter, with significant growth in Costa Rica and the Caribbean [6][7] Company Strategy and Development Direction - The company is focusing on fixed-mobile convergence (FMC) strategies to drive subscriber growth and reduce churn, with FMC penetration exceeding 30% in successful markets [7] - A joint venture with TIGO in Costa Rica is expected to consolidate the fixed market and create growth opportunities [18] - The company aims to maintain a capital expenditure (CapEx) of 14% of sales in 2025 and 2026, with a focus on network upgrades and efficiency [44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Puerto Rico but expressed optimism about improving operational performance and EBITDA in the second half of 2025 [38][39] - The company has withdrawn its three-year guidance due to slower recovery in Puerto Rico but remains positive about growth in other segments [38] - Management emphasized the importance of cost management and operational efficiency to support future growth [39] Other Important Information - The company reported total debt of $8.2 billion with a net leverage of 4.6 times, and a weighted average borrowing cost of 6.5% [32] - The company has approximately $600 million in cash and $800 million available under its revolving credit line [33] - The stock buyback program has been inactive for the last three quarters, with $240 million available under authorization [36] Q&A Session Summary Question: Competitive environment in Puerto Rico - Management noted that T-Mobile is the most aggressive competitor in terms of handset subsidies, but overall competition remains rational [44][46] Question: CapEx guidance for Puerto Rico - Management confirmed that CapEx is expected to trend towards 14% of sales, with a focus on mobile network improvements [44][51] Question: Funding for Puerto Rico business - Management stated that Puerto Rico operates as a separate credit silo, and funding decisions will be based on capital allocation methodologies [60][61] Question: Macroeconomic outlook for Puerto Rico - Management expressed confidence in the competitive environment and the potential for growth, despite challenges faced in the past [66][70] Question: Service compensation and cash interest expenses - Management indicated that service compensation is expected to trend in line with Q1, and cash interest expenses are anticipated to be higher due to recent refinancing activities [84][88]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $1.1 billion, a 2% decrease on a rebased basis compared to the previous year [22] - Adjusted OIBDA increased by 8% year over year to $407 million, with a margin improvement of over 300 basis points [23] - Adjusted OIBDA less P and E additions rose to $286 million, representing 26% of revenue compared to 22% in the previous year [23][24] Business Line Data and Key Metrics Changes - C and W Caribbean reported $364 million in revenue with flat rebased growth, driven by a 5% increase in mobile revenue [25] - C and W Panama generated $177 million in revenue, reflecting a 5% rebased growth, with mobile revenue up 16% [26] - Liberty Networks achieved $110 million in revenue, with a 3% rebased growth, while adjusted OIBDA declined by 2% [27] Market Data and Key Metrics Changes - The company added 44,000 broadband and postpaid mobile subscribers in Q1 2025, with significant growth in Costa Rica and the Caribbean [6][7] - FMC penetration in successful markets exceeded 30%, contributing to lower churn rates and more predictable revenue [7] - In Puerto Rico, revenue declined by 11% year over year, primarily due to lower mobile and B2B revenues [29] Company Strategy and Development Direction - The company is focusing on fixed-mobile convergence (FMC) to drive subscriber growth and reduce churn [10][20] - A joint venture with TIGO in Costa Rica aims to consolidate the competitive fixed market [17] - Cost management initiatives are being implemented to improve margins and operational efficiency across all segments [7][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Puerto Rico but expressed optimism about future recovery and improvements in operational performance [36][92] - The company has withdrawn its three-year guidance due to the slower-than-expected recovery in Puerto Rico [36] - There is a strong focus on reducing costs and improving cash flow in the second half of 2025 [37] Other Important Information - The company has a total debt of $8.2 billion with a net leverage of 4.6 times, and a cash balance of approximately $600 million [31][32] - The refinancing activities have improved the maturity schedule, with about 50% of debt maturing in 2031 and beyond [32] Q&A Session Summary Question: Competitive environment in Puerto Rico - Management noted that T-Mobile is the most aggressive competitor in terms of handset subsidies, but overall competition remains rational [44][45] Question: CapEx guidance - The company confirmed that it expects to maintain a CapEx of 14% of sales in 2025 and 2026, distributed evenly across regions [42][43] Question: CapEx sustainability in Puerto Rico - Management indicated that CapEx in Puerto Rico is trending towards the mid to high 15% range, with ongoing investments in mobile network upgrades [50][51] Question: Funding for Puerto Rico business - The company treats each credit silo independently and will make funding decisions based on capital allocation methodologies [59] Question: Macroeconomic outlook in Puerto Rico - Management expressed confidence in the competitive environment and the potential for growth, emphasizing the need to resolve internal operational issues [66][70]

Financial Performance - Liberty Latin America Q1 2025 revenue was $407 million, with rebased growth of 2% [57] - Adjusted OIBDA for Q1 2025 was $17 million higher than Q1 2024, with rebased growth of 8% [57] - Adjusted OIBDA less P&E additions grew by 20% year-over-year [8] - Adjusted FCF improved by $46 million excluding distributions to partners [57] Segment Highlights - C&W Caribbean experienced over 35% fixed-mobile convergence (FMC) penetration [8] - C&W Panama achieved a record Q1 rebased revenue growth of 18% [20, 22] - Liberty Networks saw a 7% rebased revenue growth in wholesale (excluding IRUs) and 4% in enterprise [28] - Liberty Costa Rica's Q1 rebased revenue growth was 2% [38] - Liberty Puerto Rico's Q1 rebased revenue declined by 11% [49] Subscriber Growth - Liberty Latin America added 44,000 internet and postpaid subscribers [8] - C&W Panama experienced significant mobile postpaid additions due to a competitor's exit [21] Debt and Liquidity - Liberty Latin America has $8.2 billion in total debt [73] - Approximately 50% of the debt is due in 2031 or beyond [72, 73] - The company maintains a robust liquidity position with $0.6 billion in cash and $0.8 billion in RCF availability [73]

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides an overview of Liberty Latin America's Q1 2025 financial and operational performance, along with key management commentary and outlook [Q1 2025 Performance Highlights](index=1&type=section&id=Q1%202025%20Performance%20Highlights) Liberty Latin America achieved strong Q1 2025 operational momentum with over 40,000 organic broadband and postpaid mobile subscriber additions, alongside 38% operating income and 8% rebased Adjusted OIBDA growth, despite a 2% rebased revenue decline - Achieved over **40,000 organic net additions** for broadband and postpaid mobile subscribers in Q1[2](index=2&type=chunk) - Fixed-Mobile Convergence (FMC) penetration exceeded **30%** across key markets, a core strategic focus[2](index=2&type=chunk)[3](index=3&type=chunk) Financial Metric | Financial Metric | Q1 2025 | YoY Change (Reported) | YoY Change (Rebased) | | :--- | :--- | :--- | :--- | | Revenue | $1,084 M | -1% | -2% | | Operating Income | $128 M | +38% | N/A | | Adjusted OIBDA | $407 M | +9% | +8% | | Adjusted FCF | $(133) M | Improvement from $(150)M | N/A | [CEO Commentary and Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Outlook) The CEO noted strong performance in C&W Caribbean, C&W Panama, and Liberty Costa Rica, but slower mobile recovery in Puerto Rico led to the withdrawal of the mid-term outlook, though 2025 growth in Adjusted OIBDA and FCF is still expected - Strong performance in C&W Caribbean and C&W Panama drove an **8% rebased Adjusted OIBDA growth** YoY[3](index=3&type=chunk) - The recovery of the mobile business in Puerto Rico is progressing slower than anticipated, impacting overall performance[3](index=3&type=chunk) - Due to the uncertainty in Puerto Rico, the company is withdrawing its mid-term (2024-2026) financial outlook[3](index=3&type=chunk) - Despite challenges, the company still expects to achieve meaningful growth in Group Adjusted OIBDA and Adjusted FCF (before distributions) in 2025[3](index=3&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) This section analyzes Liberty Latin America's Q1 2025 financial results, focusing on revenue trends, profitability metrics like operating income and Adjusted OIBDA, and the reported net loss [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Total revenue for Q1 2025 was $1,083.5 million, a 1% reported and 2% rebased decrease YoY, primarily due to an 11% rebased drop in Liberty Puerto Rico, partially offset by growth in C&W Panama and Liberty Costa Rica Revenue by Segment | Segment | Q1 2025 Revenue ($M) | YoY Reported Change | YoY Rebased Change | | :--- | :--- | :--- | :--- | | C&W Caribbean | $363.9 | 0% | 0% | | C&W Panama | $177.0 | +5% | +5% | | Liberty Networks | $110.4 | +2% | +3% | | Liberty Puerto Rico | $298.4 | -9% | -11% | | Liberty Costa Rica | $158.2 | +4% | +2% | | **Total** | **$1,083.5** | **-1%** | **-2%** | - **C&W Panama:** Revenue grew **5%** (reported and rebased), driven by a **16% increase** in mobile residential revenue from postpaid subscriber growth and higher prepaid ARPU[17](index=17&type=chunk) - **Liberty Puerto Rico:** Revenue declined **11%** (rebased), largely due to a **16% rebased drop** in residential mobile revenue caused by postpaid subscriber and ARPU reduction following network migration disruption[17](index=17&type=chunk) - **C&W Caribbean:** Revenue was flat. Mobile residential revenue grew **5%** (rebased) from price increases and postpaid additions, but this was offset by a **3% decline** in B2B revenue[14](index=14&type=chunk)[15](index=15&type=chunk)[17](index=17&type=chunk) [Profitability Analysis (Operating Income & Adjusted OIBDA)](index=5&type=section&id=Profitability%20Analysis) Operating income surged 38% YoY to $128 million, while consolidated Adjusted OIBDA increased 9% reported and 8% rebased to $406.6 million, with margin improving to 37.5%, driven by strong cost management across segments Adjusted OIBDA by Segment | Segment | Q1 2025 Adj. OIBDA ($M) | YoY Reported Change | YoY Rebased Change | | :--- | :--- | :--- | :--- | | C&W Caribbean | $173.3 | +15% | +16% | | C&W Panama | $64.6 | +14% | +15% | | Liberty Networks | $57.9 | -2% | -2% | | Liberty Puerto Rico | $81.5 | +18% | +16% | | Liberty Costa Rica | $58.9 | +1% | -1% | | **Total** | **$406.6** | **+9%** | **+8%** | - Operating income increased to **$128 million** in Q1 2025 from **$93 million** in Q1 2024, primarily due to the increase in Adjusted OIBDA[21](index=21&type=chunk) - **C&W Caribbean:** Adjusted OIBDA margin improved by over **600 basis points to 48%**, driven by significant cost reductions in facilities, staffing, and network expenses[20](index=20&type=chunk) - **Liberty Puerto Rico:** Adjusted OIBDA grew **16%** (rebased) despite lower revenue, supported by the phasing out of integration costs, lower equipment and interconnect costs, and the termination of a TSA with AT&T[24](index=24&type=chunk) [Net Loss](index=6&type=section&id=Net%20Loss) The company reported a net loss attributable to shareholders of $136 million for Q1 2025, a significant increase from the $1 million net loss reported in Q1 2024 Net Loss Attributable to Shareholders | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to shareholders | $(136) M | $(1) M | [Operational Performance Analysis](index=3&type=section&id=Operational%20Performance%20Analysis) This section details Liberty Latin America's Q1 2025 operational performance, including subscriber and RGU metrics, and ARPU trends across its various segments [Subscriber and RGU Metrics](index=3&type=section&id=Subscriber%20and%20RGU%20Metrics) In Q1 2025, LLA achieved 2,000 organic customer additions and 20,300 fixed RGUs, while mobile saw a net organic loss of 16,800 subscribers, as postpaid gains were offset by prepaid losses, with significant non-organic adjustments also noted Organic Subscriber and RGU Changes | Metric (Organic Change) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Customer Additions | 2,000 | (2,700) | | Fixed RGU Additions | 20,300 | 14,100 | | Internet Additions | 7,300 | 3,700 | | Mobile Additions | (16,800) | 67,200 | | Postpaid Additions | 36,400 | 24,400 | - C&W Caribbean added **14,600 postpaid subscribers** but lost **35,300 prepaid subscribers** organically[31](index=31&type=chunk) - Liberty Costa Rica showed strong mobile performance, with **30,300 organic postpaid additions**[31](index=31&type=chunk) - Significant non-organic adjustments were made, including the removal of **125,000 Corporate Responsible Users (CRUs)** in Puerto Rico and a **1.184 million prepaid subscriber adjustment** in Costa Rica to align with regulatory definitions[31](index=31&type=chunk)[32](index=32&type=chunk) [ARPU Trends](index=10&type=section&id=ARPU%20Trends) Sequentially, ARPU per customer relationship showed mixed results, with C&W Caribbean up 2% and Liberty Costa Rica down 2% (FX-Neutral), while mobile ARPU was largely stable or slightly down, except for Liberty Puerto Rico's 3% increase ARPU per Customer Relationship | ARPU per Customer Relationship | Q1 2025 | QoQ FX-Neutral Change | | :--- | :--- | :--- | | C&W Caribbean | $50.71 | +2% | | C&W Panama | $37.92 | -1% | | Liberty Puerto Rico | $72.85 | +1% | | Liberty Costa Rica | $40.96 | -2% | Mobile ARPU | Mobile ARPU | Q1 2025 | QoQ FX-Neutral Change | | :--- | :--- | :--- | | C&W Caribbean | $15.19 | 0% | | C&W Panama | $12.13 | -2% | | Liberty Puerto Rico | $36.22 | +3% | | Liberty Costa Rica | $11.39 | -2% | [Capital Structure and Investments](index=7&type=section&id=Capital%20Structure%20and%20Investments) This section examines Liberty Latin America's capital structure and investment activities in Q1 2025, including capital expenditures, debt levels, and liquidity position [Capital Expenditures (P&E Additions)](index=7&type=section&id=Capital%20Expenditures%20(P%26E%20Additions)) Property and equipment (P&E) additions totaled $120.3 million in Q1 2025, down 11% YoY and representing 11.1% of revenue, reflecting a focus on lowering capital intensity, with over 75,000 homes added or upgraded Property and Equipment Additions | P&E Additions | Q1 2025 ($M) | Q1 2024 ($M) | | :--- | :--- | :--- | | Total P&E Additions | $120.3 | $134.9 | | As % of Revenue | 11.1% | 12.3% | - P&E additions were highest in C&W Caribbean (**$37.5M**) and lowest in C&W Panama (**$14.7M**)[26](index=26&type=chunk) - The company passed/upgraded **75,300 homes** in Q1 2025, an increase from **72,600** in Q1 2024, with significant activity in Liberty Costa Rica (**30,000**) and C&W Panama (**22,300**)[26](index=26&type=chunk) [Debt and Liquidity](index=8&type=section&id=Debt%20and%20Liquidity) As of March 31, 2025, LLA had total debt and finance lease obligations of $8.25 billion, with a consolidated net leverage ratio of 4.6x, maintaining a weighted average debt tenor of 5.1 years and $768.2 million in unused borrowing capacity Debt and Liquidity Metrics | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Debt & Finance Lease Obligations | $8,249.5 M | $8,143.4 M | | Consolidated Net Leverage Ratio | 4.6x | 4.5x | | Weighted Average Debt Tenor | 5.1 years | 4.1 years | | Unused Borrowing Capacity | $768.2 M | $796.3 M | - The C&W borrowing group holds the largest portion of the debt at **$5.0 billion**[27](index=27&type=chunk)[28](index=28&type=chunk) [Borrowing Group Performance](index=13&type=section&id=Borrowing%20Group%20Performance) This section provides a detailed analysis of the Q1 2025 financial performance for Liberty Latin America's key borrowing groups: Cable & Wireless, Liberty Puerto Rico, and Liberty Costa Rica [Cable & Wireless (C&W) Borrowing Group](index=13&type=section&id=Cable%20%26%20Wireless%20(C%26W)%20Borrowing%20Group) The C&W Borrowing Group reported strong Q1 results with revenue growing 2% rebased to $628.8 million and Adjusted OIBDA surging 12% rebased to $295.9 million, achieving a 47.1% margin and a Covenant Proportionate Net Leverage Ratio of 3.8x C&W Borrowing Group Financials | C&W Borrowing Group | Q1 2025 ($M) | Rebased YoY Change | | :--- | :--- | :--- | | Revenue | $628.8 | +2% | | Operating Income | $123.5 | +54% (Reported) | | Adjusted OIBDA | $295.9 | +12% | - The group's Covenant Proportionate Net Leverage Ratio was **3.8x** as of March 31, 2025[42](index=42&type=chunk) [Liberty Puerto Rico (LPR) Borrowing Group](index=15&type=section&id=Liberty%20Puerto%20Rico%20(LPR)%20Borrowing%20Group) The LPR Borrowing Group faced an 11% rebased revenue decline to $298.4 million, but achieved a 16% rebased Adjusted OIBDA growth to $81.5 million due to cost management, resulting in a positive operating income and a high Covenant Consolidated Net Leverage Ratio of 8.0x LPR Borrowing Group Financials | LPR Borrowing Group | Q1 2025 ($M) | Rebased YoY Change | | :--- | :--- | :--- | | Revenue | $298.4 | -11% | | Operating Income (Loss) | $3.8 | N.M. | | Adjusted OIBDA | $81.5 | +16% | - The group's Covenant Consolidated Net Leverage Ratio was **8.0x** as of March 31, 2025[45](index=45&type=chunk) [Liberty Costa Rica Borrowing Group](index=17&type=section&id=Liberty%20Costa%20Rica%20Borrowing%20Group) The Liberty Costa Rica Borrowing Group reported a 2% increase in revenue to CRC 79.8 billion. However, operating income declined 10% and Adjusted OIBDA fell 1% to CRC 29.7 billion, while maintaining a low Covenant Consolidated Net Leverage Ratio of 1.9x LCR Borrowing Group Financials | LCR Borrowing Group (CRC Billions) | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Revenue | 79.8 | +2% | | Operating Income | 15.7 | -10% | | Adjusted OIBDA | 29.7 | -1% | - The group's Covenant Consolidated Net Leverage Ratio was **1.9x** as of March 31, 2025[46](index=46&type=chunk) [Supplementary Information](index=11&type=section&id=Supplementary%20Information) This section provides additional data, including consolidated subscriber metrics and detailed reconciliations of non-GAAP financial measures to U.S. GAAP equivalents, along with definitions of key operational and financial terms [Consolidated Subscriber Data](index=18&type=section&id=Consolidated%20Subscriber%20Data) As of March 31, 2025, Liberty Latin America reported 1.94 million fixed-line customer relationships and 6.73 million mobile subscribers, with a network passing 4.77 million homes, highlighting the C&W segment as the largest contributor Consolidated Subscriber Metrics | Metric | Total as of March 31, 2025 | | :--- | :--- | | Homes Passed | 4,770,500 | | Fixed-line Customer Relationships | 1,938,500 | | Total RGUs | 4,007,900 | | Total Mobile Subscribers | 6,728,500 | | - Prepaid | 4,355,900 | | - Postpaid | 2,372,600 | [Non-GAAP Reconciliations and Definitions](index=19&type=section&id=Non-GAAP%20Reconciliations%20and%20Definitions) The report includes a detailed glossary defining key operational and financial terms such as RGU, ARPU, Adjusted OIBDA, and various leverage ratios, along with comprehensive reconciliations of non-GAAP measures to their nearest U.S. GAAP equivalents - Provides definitions for key metrics including Adjusted OIBDA, ARPU, Customer Relationships, RGU, and Leverage[48](index=48&type=chunk)[50](index=50&type=chunk)[53](index=53&type=chunk)[63](index=63&type=chunk) - Includes detailed reconciliation tables for operating income to Adjusted OIBDA, net cash from operating activities to Adjusted FCF, and reported figures to rebased figures for revenue and Adjusted OIBDA[72](index=72&type=chunk)[75](index=75&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) - Presents reconciliations for consolidated leverage ratios and for the specific financial results of the C&W, Liberty Puerto Rico, and Liberty Costa Rica borrowing groups[89](index=89&type=chunk)[92](index=92&type=chunk)

Part I [FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) This section provides a comprehensive overview of the company's financial performance, position, and cash flows, including detailed financial statements, notes, and management's discussion and analysis [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) This quarter, the company's total revenue was $1.0835 billion, a slight year-over-year decrease; despite operating profit increasing from $92.8 million to $128.1 million, net loss significantly expanded from $0.5 million to $126.7 million due to substantial derivative instrument losses, while operating cash flow remained stable at $24.6 million, and company assets and liabilities slightly contracted compared to the end of 2024 [Consolidated Financial Statements Summary](index=8&type=section&id=Consolidated%20Financial%20Statements) Consolidated Statements of Operations (For the Three Months Ended March 31, 2025) | Item | 2025 Q1 (million USD) | 2024 Q1 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | **1,083.5** | **1,099.4** | **-1.4%** | | Operating Profit | 128.1 | 92.8 | +38.0% | | Net (Loss) Gain on Derivative Instruments | (62.9) | 46.4 | - | | (Loss) Income Before Income Taxes | (117.6) | 4.6 | - | | **Net Loss** | **(126.7)** | **(0.5)** | **-** | | **Net Loss Attributable to Shareholders** | **(136.4)** | **(0.5)** | **-** | | **Diluted Loss Per Share** | **(0.69)** | **0.00** | **-** | Consolidated Balance Sheets | Item | March 31, 2025 (million USD) | December 31, 2024 (million USD) | | :--- | :--- | :--- | | **Total Assets** | **12,597.5** | **12,800.0** | | Total Current Assets | 2,059.8 | 2,131.5 | | **Total Liabilities** | **11,071.8** | **11,174.0** | | Total Current Liabilities | 1,913.3 | 2,043.9 | | **Total Equity** | **1,525.7** | **1,626.0** | Consolidated Statements of Cash Flows (For the Three Months Ended March 31, 2025) | Item | 2025 Q1 (million USD) | 2024 Q1 (million USD) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 24.6 | 23.3 | | Net Cash Used in Investing Activities | (95.0) | (116.9) | | Net Cash Provided by (Used in) Financing Activities | 3.4 | (225.7) | | **Net Decrease in Cash, Cash Equivalents, and Restricted Cash** | **(78.8)** | **(320.1)** | [Note 4: Acquisitions](index=18&type=section&id=Note%204%20Acquisitions) The company has two significant transactions: an agreement with Millicom for a planned merger of Costa Rican operations in H2 2025, and the acquisition of EchoStar's prepaid business and spectrum assets in Puerto Rico and the U.S. Virgin Islands completed in September 2024 - The company has two significant transactions: an agreement with Millicom for a planned merger of Costa Rican operations in H2 2025, and the acquisition of EchoStar's prepaid business and spectrum assets in Puerto Rico and the U.S. Virgin Islands completed in September 2024[56](index=56&type=chunk)[58](index=58&type=chunk) [Note 10: Debt and Finance Lease Obligations](index=25&type=section&id=Note%2010%20Debt%20and%20Finance%20Lease%20Obligations) The company's total principal debt was $8.2452 billion as of March 31, 2025, with a weighted average interest rate of 7.36%, and it engaged in significant financing activities during Q1 2025, including new term loans and notes issuance and repayments Debt Summary (As of March 31, 2025) | Item | Amount (million USD) | | :--- | :--- | | **Total Principal Debt** | **8,245.2** | | Undrawn Borrowing Capacity | 768.2 | | Weighted Average Interest Rate | 7.36% | - In Q1 2025, the company undertook multiple financing activities, including C&W issuing **$1.5224 billion** in B-7 term loans and **$755 million** in 2033 Senior Notes, while repaying **$1.51 billion** in B-5 term loans and **$735 million** in 2027 Senior Notes[94](index=94&type=chunk)[99](index=99&type=chunk) [Note 16: Segment Reporting](index=30&type=section&id=Note%2016%20Segment%20Reporting) Consolidated revenue slightly decreased by 1.4% year-over-year, primarily due to a significant decline in Liberty Puerto Rico, while consolidated Adjusted OIBDA increased by 10.7% driven by strong performance in C&W Caribbean and Panama Revenue by Segment (For the Three Months Ended March 31) | Segment | 2025 Q1 (million USD) | 2024 Q1 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | C&W Caribbean | 363.9 | 364.2 | -0.1% | | C&W Panama | 177.0 | 169.2 | +4.6% | | Liberty Networks | 110.4 | 108.5 | +1.8% | | Liberty Puerto Rico | 298.4 | 327.2 | -8.8% | | Liberty Costa Rica | 158.2 | 152.3 | +3.9% | | **Consolidated Total Revenue** | **1,083.5** | **1,099.4** | **-1.4%** | Adjusted OIBDA by Segment (For the Three Months Ended March 31) | Segment | 2025 Q1 (million USD) | 2024 Q1 (million USD) | YoY Change | | :--- | :--- | :--- | :--- | | C&W Caribbean | 173.3 | 150.6 | +15.1% | | C&W Panama | 64.6 | 56.8 | +13.7% | | Liberty Networks | 57.9 | 59.2 | -2.2% | | Liberty Puerto Rico | 81.5 | 69.1 | +18.0% | | Liberty Costa Rica | 58.9 | 58.3 | +1.0% | | **Total Segment Adjusted OIBDA** | **436.2** | **394.0** | **+10.7%** | [Management's Discussion and Analysis (MD&A)](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analysis indicates a 1.4% year-over-year revenue decrease, but a strong 10.7% Adjusted OIBDA growth to $406.6 million, primarily due to cost control measures, with Liberty Puerto Rico's revenue decline offset by OIBDA growth from cost reductions, while C&W Caribbean and Panama segments performed steadily, and the company's total debt is $8.25 billion with a 7.4% weighted average interest rate, reduced to 6.5% after derivatives, maintaining sufficient liquidity for the next 12 months but facing refinancing risks [Results of Operations Analysis](index=42&type=section&id=Results%20of%20Operations) Operating profit increased by $35.3 million in Q1 2025, driven by organic operating cost reductions of $60.2 million, which offset a $25.4 million organic revenue decline, with C&W Caribbean improving OIBDA margin through cost savings and Liberty Puerto Rico's OIBDA margin increasing despite revenue decline due to lower integration and operating costs, while net loss was primarily due to non-operating derivative losses - In Q1 2025, the company's operating profit increased by **$35.3 million** year-over-year, primarily due to an organic decrease in operating costs of **$60.2 million**, which effectively offset an organic decrease in revenue of **$25.4 million**[167](index=167&type=chunk) Consolidated Adjusted OIBDA | Item | 2025 Q1 (million USD) | 2024 Q1 (million USD) | | :--- | :--- | :--- | | Operating Profit | 128.1 | 92.8 | | Add: Share-based Compensation Expense | 34.0 | 27.0 | | Add: Depreciation and Amortization | 228.8 | 247.8 | | Add: Impairment, Restructuring, and Other Items | 15.7 | 6.6 | | **Consolidated Adjusted OIBDA** | **406.6** | **374.2** | - C&W Caribbean segment: Revenue was flat year-over-year, but Adjusted OIBDA margin significantly improved from **41.4% to 47.6%**, primarily due to cost savings measures, especially reductions in personnel and network-related costs[172](index=172&type=chunk)[178](index=178&type=chunk)[203](index=203&type=chunk) - Liberty Puerto Rico segment: Revenue decreased by **8.8%** year-over-year, an organic decline of **$38.3 million**, mainly due to customer churn and ARPU decline from mobile network migration issues; however, Adjusted OIBDA margin improved from **21.1% to 27.3%**, primarily due to higher integration costs in the prior year period and current period reductions in personnel and network costs[172](index=172&type=chunk)[184](index=184&type=chunk)[210](index=210&type=chunk) - Net loss was primarily driven by non-operating items, specifically unrealized losses of **$51.1 million** and realized losses of **$8.2 million** on derivative instruments, a stark contrast to gains in the prior year period[221](index=221&type=chunk) [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held $575.5 million in cash and equivalents, with $514.4 million held by borrowing groups potentially subject to restrictions, total debt of $8.25 billion with $539 million current, a 7.4% weighted average interest rate reduced to 6.5% after derivatives, and Q1 2025 capital expenditures of $120.3 million (11.1% of revenue), with financing activities providing $3.4 million net cash - As of March 31, 2025, the company held **$575.5 million** in cash and cash equivalents, of which **$514.4 million** was held by various borrowing groups and may be subject to tax, legal, or other restrictions[233](index=233&type=chunk)[234](index=234&type=chunk) - The company's total debt is **$8.25 billion**, with **$539 million** classified as current liabilities due within one year; the weighted average interest rate is **7.4%**, which is reduced to **6.5%** after derivative hedges[244](index=244&type=chunk)[245](index=245&type=chunk) - In Q1 2025, the company's capital expenditures were **$120.3 million**, representing **11.1%** of revenue, lower than **$134.9 million** (12.3% of revenue) in the prior year period[250](index=250&type=chunk) - Financing activities provided **$3.4 million** in net cash during the quarter, primarily from **$62 million** in net debt borrowings, partially offset by **$24 million** in financing costs and **$29 million** in non-controlling interest distributions, compared to a net outflow of **$225.7 million** in the prior year period[251](index=251&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency exchange and interest rate risks, with 95% of total debt fixed or capped rate as of March 31, 2025, managed through derivatives, and sensitivity analysis showing a 100 basis point interest rate change would impact C&W and Puerto Rico derivative fair values by approximately $115 million and $16 million respectively - The company hedges interest rate risk through interest rate derivative contracts, with **95%** of its total debt being fixed-rate or capped-rate as of March 31, 2025[258](index=258&type=chunk) - Sensitivity analysis indicates that a hypothetical 100 basis point instantaneous change in relevant benchmark interest rates would result in an approximate **$115 million** change in the fair value of C&W's interest rate derivative contracts and approximately **$16 million** for Liberty Puerto Rico's contracts[260](index=260&type=chunk)[261](index=261&type=chunk) Projected Net Cash Flows from Derivatives (Million USD) | Period | Interest Rate Related Net (Receipts) | Other Net Payments | Total | | :--- | :--- | :--- | :--- | | Remaining 2025 | (30.9) | 11.6 | (19.3) | | 2026 | (65.8) | 1.1 | (64.7) | | 2027 | (44.0) | — | (44.0) | | 2028 | (20.1) | — | (20.1) | | 2029 | (1.7) | — | (1.7) | | Thereafter | (3.9) | — | (3.9) | | **Total** | **(166.4)** | **12.7** | **(153.7)** | [Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's material weaknesses in internal control over financial reporting, disclosed in its 2024 annual report, remain unremediated as of March 31, 2025, leading management to conclude that disclosure controls and procedures are ineffective, with ongoing remediation efforts including manual controls, new payroll technology, third-party IT experts, and employee training - Management confirms that the material weaknesses in internal control over financial reporting, as disclosed in the 2024 10-K report, have not been fully remediated[266](index=266&type=chunk) - Due to the unremediated material weaknesses, company executives concluded that disclosure controls and procedures remained ineffective as of March 31, 2025[266](index=266&type=chunk) - The company is implementing remediation measures, including increasing manual controls, introducing payroll technology solutions, engaging third-party experts to address IT control issues, and training employees on risk and control concepts[267](index=267&type=chunk)[270](index=270&type=chunk) Part II [OTHER INFORMATION](index=67&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) This section provides additional information not covered in the financial statements, including details on equity securities sales and the use of proceeds [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any Class A or Class C common shares in Q1 2025, with $242 million remaining authorized under the share repurchase program as of March 31, 2025 - The company did not repurchase any Class A or Class C common shares during the three months ended March 31, 2025[274](index=274&type=chunk) - As of March 31, 2025, **$242 million** remained authorized for repurchase under the share repurchase program[274](index=274&type=chunk)

Financial Data and Key Metrics Changes - The company reported adjusted OIBDA of $1.6 billion for the year, with strong year-over-year rebased growth in C&W Caribbean and Costa Rica, and double-digit rebase growth in C&W Panama [10] - Q4 revenue improved by $61 million to $1.15 billion compared to Q3, with each operating segment delivering increases [51] - Year-over-year Q4 revenue was 2% lower on a rebased basis, primarily due to declines in Liberty Puerto Rico and Liberty Networks [52] Business Line Data and Key Metrics Changes - C&W Caribbean reported $371 million in Q4 revenue, reflecting 2% year-over-year rebased growth, driven by residential mobile growth of 7% [53] - C&W Panama generated $209 million in revenue, representing 1% year-over-year rebased growth, with mobile residential revenue up by 20% [55] - Liberty Puerto Rico's Q4 revenue was $317 million, reflecting a 13% rebased decline year-over-year, primarily due to lower ARPU and subscriber losses [58] Market Data and Key Metrics Changes - The company added nearly 100,000 subscribers in total throughout the year, with broadband and postpaid performance particularly robust, adding over 260,000 subscribers in 2024 excluding Puerto Rico [9] - In Costa Rica, the company added 114,000 postpaid subscribers in the year, marking a 31% year-over-year increase [21] - The company reported that 97% of its fixed footprint is now gigabit-ready, exceeding previous targets [11] Company Strategy and Development Direction - The company is focused on rebuilding its operations in Puerto Rico, emphasizing customer care and churn reduction as key strategies [36] - The company plans to drive adjusted OIBDA and free cash flow growth across the company while reducing leverage levels [75] - The company is also targeting significant growth in its B2B business, particularly in the hospitality sector [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that 2024 was a challenging year, particularly in Puerto Rico, but expressed optimism about future growth prospects and operational improvements [36][75] - Management highlighted the importance of improving customer experience and operational efficiency to drive future growth [72] - The company is committed to maintaining a long-dated capital structure and has successfully refinanced $3.3 billion of C&W debt [11] Other Important Information - The company has made significant strides in network upgrades, with 400,000 homes passed or upgraded to fiber-to-the-home in 2024 [10] - The company is finalizing contract terms for the construction of a subsea cable system project in collaboration with Sparkle [25] - The company reported a robust Q4 adjusted free cash flow of $196 million, bringing the full year total to $116 million [64] Q&A Session Summary Question: Concerns about bad debt in Puerto Rico and its impact on churn - Management explained that the increase in bad debt was primarily due to catch-up related to equipment installment plans and that they are working to improve collection processes [82][84] Question: Update on EBITDA target for Puerto Rico - Management confirmed that the target is to return to a full handle on EBITDA, although they did not provide specific guidance for the first quarter [90][91] Question: CapEx guidance and rationale for reduction - Management clarified that the goal is to reduce CapEx to 14% of revenue, primarily due to completed upgrades and lower costs for customer premises equipment [98][102] Question: Impact of billing adjustments on B2B revenue - Management indicated that most credits related to billing errors are tapering off and do not expect significant adjustments in the first quarter [104] Question: M&A interest in the region - Management stated that there are no current plans to sell the Puerto Rico business and expressed no interest in acquiring Telefonica's assets due to their financial issues [110][112] Question: Benefits of FTTH and cost of connecting customers - Management discussed that while the cost to connect customers via FTTH is higher initially, the long-term benefits include improved pricing power and network reliability [118][124] Question: Integration of EchoStar distribution network - Management acknowledged potential interoperability issues but expressed confidence in resolving them as they integrate the network [130]

Financial Performance - Liberty Latin America's FY 2024 Adjusted OIBDA was $16 billion[8], impacted by Liberty Puerto Rico (LPR) challenges[58] - FY 2024 rebased revenue decreased by 2% YoY to $4457 billion[61] - FY 2024 rebased Adjusted OIBDA decreased by 7% YoY to $1594 billion[65] - FY 2024 P&E additions were $725 million, representing 16% of revenue[78] Segment Results - C&W Caribbean's FY rebased revenue growth was +2%[13] - C&W Panama's FY 2024 rebased revenue growth was +3%[21] - Liberty Costa Rica's FY 2024 rebased revenue growth was +6%[28] - Liberty Networks' FY 2024 rebased revenue growth was (2)%[32] - Liberty Puerto Rico's FY 2024 rebased revenue growth was (12)%[39] Infrastructure and Debt - 97% of Liberty Latin America's network footprint is Gigabit-ready[8] - C&W completed $33 billion refinancing, extending maturities[8] - Over 75% of C&W silo debt now matures in 2032 and beyond[8]

Part I: Business and Risk Factors [Business Overview](index=10&type=section&id=Item%201.%20Business) Liberty Latin America is a leading telecommunications provider in Latin America and the Caribbean, offering residential and B2B services and focusing on strategic transactions and network expansion [General Development of Business](index=10&type=section&id=General%20Development%20of%20Business) The company actively expanded its footprint through network upgrades and strategic acquisitions, including EchoStar's assets and a pending joint venture with Millicom in Costa Rica - Acquired EchoStar's prepaid business and spectrum assets in Puerto Rico and USVI in September 2024 for **$256 million** in cash, payable in four annual installments[28](index=28&type=chunk) - Announced an agreement in August 2024 to combine Costa Rican operations with Millicom, with Liberty Latin America holding an approximate **86% interest**, with the transaction expected to close in the second half of 2025[28](index=28&type=chunk) - Monetized approximately **1,300 mobile tower sites** in November 2023 through an agreement with Phoenix Tower International, with plans to build an additional **500 sites** over the next four years[28](index=28&type=chunk) - Completed the formation of a **50:50 joint venture** in Chile with América Móvil in October 2022, though its interest was reduced to less than **10%** in 2024[29](index=29&type=chunk) [Operating Data](index=15&type=section&id=Operating%20Data) As of December 31, 2024, the company served 8.05 million mobile subscribers and 1.94 million fixed-line customer relationships, with its fixed network passing 4.74 million homes Total Subscribers and RGUs by Segment (as of Dec 31, 2024) | Segment | Homes Passed | Customer Relationships | Total Fixed RGUs | Total Mobile Subscribers | | :--- | :--- | :--- | :--- | :--- | | C&W Caribbean | 1,756,500 | 810,700 | 1,695,100 | 1,964,400 | | C&W Panama | 959,300 | 262,200 | 659,600 | 1,957,700 | | Liberty Puerto Rico | 1,191,800 | 574,100 | 1,061,600 | 861,900 | | Liberty Costa Rica | 828,100 | 289,500 | 571,300 | 3,270,300 | | **Total** | **4,735,700** | **1,936,500** | **3,987,600** | **8,054,300** | - Network composition varies by market, with FTTH being predominant in Barbados (**100%**) and The Bahamas (**89%**), while HFC is the primary technology in Trinidad and Tobago (**99%**) and Puerto Rico (**83%**)[56](index=56&type=chunk) [Products and Services](index=18&type=section&id=Products%20and%20Services) The company offers a comprehensive suite of residential and business services, including mobile, broadband, video, and telephony, with Liberty Networks operating an extensive regional fiber network - Offers converged fixed-mobile services across most of its operating footprint, which is a key strategic focus to enhance customer value and retention[64](index=64&type=chunk)[65](index=65&type=chunk) - Network extension programs upgraded or passed approximately **800,000 homes** in 2024, expanding the availability of high-speed broadband[68](index=68&type=chunk) - Liberty Networks operates a subsea and terrestrial fiber network of approximately **50,000 km** with an activated capacity of over **30 Tbps**, connecting over **30 markets** in the region[82](index=82&type=chunk) [Technology](index=22&type=section&id=Technology) The company utilizes a mix of HFC and FTTH networks, with over 95% capable of 1 Gbps speeds, and has deployed 5G services in key markets - Over **95%** of the company's fixed network is capable of delivering speeds of **1 Gbps** or higher, utilizing a combination of FTTH and DOCSIS 3.1 technologies[87](index=87&type=chunk) - 5G services are currently provided in Puerto Rico, Panama, Costa Rica, and the Cayman Islands, with the 5G capable network in Puerto Rico and USVI serving approximately **95%** of the population[90](index=90&type=chunk)[92](index=92&type=chunk) - The subsea network cables terminating in the U.S. carry over **35 Tbps**, representing only about **25%** of their potential capacity, indicating significant growth opportunities[88](index=88&type=chunk) [Regulatory Matters](index=25&type=section&id=Regulatory%20Matters) The company navigates complex regulatory environments across its markets, dealing with license renewals, rate regulation, and universal service obligations, while also securing funding for network expansion - In C&W Caribbean, the company is the incumbent provider in many markets and is subject to significant oversight, with license renewals pending in The Bahamas and Antigua[100](index=100&type=chunk) - In Puerto Rico, LCPR was awarded approximately **$72 million** from the UPR Fund to provide high-speed broadband to over **914,000 locations**, and also receives funding for mobile network expansion and participates in the BEAD program[133](index=133&type=chunk)[149](index=149&type=chunk) - In Costa Rica, Liberty Telecomunicaciones participated in the 5G spectrum auction in January 2025, securing spectrum blocks for approximately **$16.3 million** and committing to deploy over **1,552 base stations**[162](index=162&type=chunk) [Competition](index=34&type=section&id=Competition) The company faces intense competition across all service categories from mobile, broadband, and video providers, employing strategies like high-speed connectivity and bundled services - Key mobile competitors include Digicel in the Caribbean, Millicom (Tigo) in Panama and Costa Rica, and T-Mobile/Claro in Puerto Rico[168](index=168&type=chunk) - Broadband competition comes from other cable, DSL, and FTTH providers, with the company differentiating by offering download speeds up to **1 Gbps** in many markets[167](index=167&type=chunk)[168](index=168&type=chunk) - Video services face competition from traditional DTH providers and significant pressure from OTT services like Netflix and Disney+, as well as content piracy[171](index=171&type=chunk)[172](index=172&type=chunk) [Human Capital Resources](index=37&type=section&id=Human%20Capital%20Resources) As of December 31, 2024, the company employed approximately 10,000 full-time employees, with a focus on talent management and corporate social responsibility Employee Snapshot (as of Dec 31, 2024) | Metric | Value | | :--- | :--- | | Total Full-Time Employees | ~10,000 | | Women in Workforce | 41% | | Women in Management | 39% | | Unionized Workforce | ~33% | | 2024 Employee Attrition | 16.3% | | 2024 eNPS | +24 | [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from intense competition, rapid technological change, substantial leverage, diverse regulatory environments, and identified material weaknesses in internal controls - The company operates in highly competitive markets against DTH, FTTH, and OTT providers, which could adversely affect growth and pricing[199](index=199&type=chunk)[201](index=201&type=chunk) - Substantial leverage of **$8.1 billion** as of December 31, 2024, could limit the ability to obtain additional financing and service debt obligations[257](index=257&type=chunk) - Operations are subject to adverse regulation, including potential requirements to grant third-party access to network infrastructure, and risks related to license renewals[234](index=234&type=chunk) - Identified material weaknesses in internal control over financial reporting could result in material misstatements in financial statements if not remediated[315](index=315&type=chunk) [Cybersecurity](index=60&type=section&id=Item%201C.%20Cybersecurity) The company maintains a cybersecurity program aligned with NIST standards, overseen by the Audit Committee, and has not experienced material cybersecurity incidents to date - The Audit Committee oversees the cybersecurity program and receives quarterly reports from internal and external sources[320](index=320&type=chunk) - The cybersecurity program aligns with the NIST framework (Identify, Protect, Detect, Respond, Recover) and is managed by the Global Information Security Office (GISO)[321](index=321&type=chunk) - To the company's knowledge, no cybersecurity threats have materially affected the company as of the filing date[330](index=330&type=chunk) Part II: Market, Financials, and Controls [Market for Common Equity and Related Matters](index=63&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Liberty Latin America's Class A and C common shares trade on Nasdaq, with no current dividend plans but an active share repurchase program - The company has no present intention of paying cash dividends on its shares[342](index=342&type=chunk) - As of December 31, 2024, **$242 million** remained authorized for share repurchases under the company's programs[346](index=346&type=chunk) - The stock performance of both Class A and Class C shares has significantly underperformed the Nasdaq Composite and MSCI Emerging Markets indices from December 2019 to December 2024[349](index=349&type=chunk) [Management's Discussion and Analysis (MD&A)](index=65&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, the company reported a slight revenue decrease, a significant operating loss due to impairment, and reduced Adjusted OIBDA, with liquidity primarily held within borrowing groups [Results of Operations (2024 vs. 2023)](index=67&type=section&id=Results%20of%20Operations) For 2024, revenue decreased by 1.2% to $4.46 billion, resulting in an operating loss of $48.3 million and a widened net loss, primarily due to a $538.4 million impairment charge Consolidated Operating Results (in millions) | Metric | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $4,456.9 | $4,511.1 | (1.2)% | | Operating Income (Loss) | $(48.3) | $517.7 | (109.3)% | | Adjusted OIBDA | $1,593.7 | $1,701.6 | (6.3)% | | Net Loss Attributable to Shareholders | $(657.0) | $(73.6) | (792.7)% | - A goodwill impairment charge of **$516 million** at the Liberty Puerto Rico reporting unit was the primary driver of the significant operating loss in 2024[427](index=427&type=chunk)[694](index=694&type=chunk) - Revenue performance varied by segment: C&W Caribbean and C&W Panama saw modest growth, while Liberty Puerto Rico experienced a significant decline of **11.1%** (**$157.2 million**) due to challenges in its mobile business[379](index=379&type=chunk) - Hurricane Beryl in July 2024 negatively impacted revenue and Adjusted OIBDA by approximately **$11 million** and **$14 million**, respectively, but triggered a **$44 million** gain from weather derivatives[353](index=353&type=chunk)[356](index=356&type=chunk) [Liquidity and Capital Resources](index=85&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2024, the company had $654.3 million in cash, $8.1 billion in total debt, and $796.3 million in unused borrowing capacity, with cash flow from operations at $756.3 million Key Liquidity and Capitalization Figures (as of Dec 31, 2024) | Metric | Amount (in millions) | | :--- | :--- | | Cash and Cash Equivalents | $654.3 | | Total Debt & Finance Leases | $8,143.0 | | Unused Borrowing Capacity | $796.3 | | 2024 Net Cash from Operations | $756.3 | | 2024 Property & Equipment Additions | $725.3 | - The company's ability to access cash is limited as a significant portion is held by its borrowing groups, subject to covenants and other restrictions[443](index=443&type=chunk) - Net cash used in financing activities was **$386.4 million**, driven by **$257 million** in net debt repayments and **$83 million** in share repurchases[462](index=462&type=chunk) [Critical Accounting Policies, Judgments and Estimates](index=90&type=section&id=Critical%20Accounting%20Policies%2C%20Judgments%20and%20Estimates) The company's critical accounting policies involve significant judgment and estimates, particularly for impairment testing of assets and fair value measurements in acquisition accounting - Key critical accounting policies are: Impairment of property and equipment and intangible assets (including goodwill), and Fair value measurements in acquisition accounting[470](index=470&type=chunk) - Impairment testing for goodwill involves a discounted cash flow analysis based on long-range business plans, which is subject to inherent uncertainties in estimates of subscriber growth, margins, and capital expenditures[474](index=474&type=chunk) [Market Risk Disclosures](index=91&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates and interest rates, managing the latter through derivatives to fix or cap 96% of its debt - Primary foreign currency exposures are to the Costa Rican colón (CRC) and Jamaican dollar (JMD), which represented **14%** and **9.3%** of 2024 revenue, respectively[482](index=482&type=chunk) - As of December 31, 2024, **96%** of the company's total debt was at a fixed or capped interest rate, including the impact of derivative contracts[486](index=486&type=chunk) - A hypothetical **50 basis point (0.50%)** increase in variable interest rates would increase annual interest expense by **$16 million** on unhedged debt[488](index=488&type=chunk) [Financial Statements and Supplementary Data](index=94&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The audited consolidated financial statements for 2024 show total assets of $12.8 billion and a net loss of $627.3 million, with the auditor issuing an adverse opinion on internal control effectiveness Consolidated Financial Highlights (in millions) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Balance Sheet** | | | | Total Assets | $12,800.0 | $13,594.6 | | Total Liabilities | $11,174.0 | $11,284.9 | | Total Equity | $1,626.0 | $2,309.7 | | **Statement of Operations (FY)** | | | | Revenue | $4,456.9 | $4,511.1 | | Operating Income (Loss) | $(48.3) | $517.7 | | Net Loss | $(627.3) | $(86.8) | | Basic and Diluted EPS | $(3.31) | $(0.35) | - KPMG LLP issued an adverse opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[520](index=520&type=chunk)[531](index=531&type=chunk) [Note 10: Debt and Finance Lease Obligations](index=132&type=section&id=Note%2010%3A%20Debt%20and%20Finance%20Lease%20Obligations) As of December 31, 2024, total debt was $8.14 billion, primarily within three borrowing groups, with significant refinancing activities occurring subsequent to year-end Debt Principal by Borrowing Group (Dec 31, 2024) | Borrowing Group | Principal Amount (in millions) | | :--- | :--- | | C&W Credit Facilities & Notes | $4,425.2 | | LPR Credit Facilities & Notes | $2,651.0 | | LCR Credit Facilities | $450.0 | | Other | $612.6 | | **Total** | **$8,138.8** | - Subsequent to year-end, C&W executed significant refinancing, including a new **$1.5 billion** term loan due 2032 and **$755 million** in senior notes due 2033, to repay and extend maturities of existing debt[751](index=751&type=chunk) [Note 8: Long-lived Assets](index=128&type=section&id=Note%208%3A%20Long-lived%20Assets) The company recorded $538.4 million in impairment charges in 2024, primarily a $515.7 million goodwill impairment at Liberty Puerto Rico due to declining mobile performance - Recorded a **$515.7 million** goodwill impairment at the Liberty Puerto Rico reporting unit in 2024 due to declining mobile performance[693](index=693&type=chunk)[694](index=694&type=chunk) Long-Lived Asset Balances (Dec 31, 2024, in millions) | Asset Category | Carrying Value | | :--- | :--- | | Goodwill | $2,981.0 | | Property and Equipment, Net | $4,062.4 | | Intangible Assets (not subject to amortization) | $1,813.3 | | Intangible Assets (subject to amortization), Net | $414.3 | [Note 14: Income Taxes](index=147&type=section&id=Note%2014%3A%20Income%20Taxes) The company reported an income tax benefit in 2024, influenced by international rates and significant tax loss carryforwards of $8.1 billion, largely offset by a valuation allowance - The company has tax loss carryforwards of **$8.1 billion**, with the largest amounts in the U.K. (**$5.96 billion**), Barbados (**$517 million**), and Puerto Rico (**$499 million**)[784](index=784&type=chunk) - A valuation allowance of **$2.1 billion** is recorded against deferred tax assets, indicating uncertainty about their future realization[782](index=782&type=chunk) - Bermuda enacted a **15%** corporate income tax effective for fiscal years starting on or after January 1, 2025, but the company does not expect to incur material tax liabilities there due to its holding company status[314](index=314&type=chunk)[782](index=782&type=chunk) [Controls and Procedures](index=94&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were ineffective as of December 31, 2024, due to material weaknesses in internal control over financial reporting, with a remediation plan underway - Management concluded that disclosure controls and procedures were not effective as of December 31, 2024[503](index=503&type=chunk) - Four primary material weaknesses were identified: (1) insufficient skilled resources, (2) ineffective risk assessment, (3) ineffective information and communication, and (4) ineffective General Information Technology Controls (GITCs)[508](index=508&type=chunk) - The independent auditor, KPMG LLP, issued an adverse report on the operating effectiveness of the company's internal control over financial reporting[510](index=510&type=chunk) - A remediation plan is in progress, focusing on hiring, engaging third-party experts, implementing a central ERP system, and enhancing risk assessment and IT controls[511](index=511&type=chunk)

Subscriber Growth - Liberty Latin America added approximately 100,000 organic fixed and mobile subscribers in 2024[1] - C&W Panama achieved over 100,000 mobile subscriber additions in 2024, with a double-digit Adjusted OIBDA growth of 18%[5] - Liberty Costa Rica saw over 110,000 postpaid additions in 2024, a 31% increase year-over-year, with double-digit revenue and Adjusted OIBDA growth[5] - Total mobile subscribers increased by 65,000, with net additions of 52,000 prepaid and 13,000 postpaid subscribers[22] - The total number of customer relationships across all services is 4,735,700, with 1,936,500 being video RGUs, 921,900 internet RGUs, and 1,828,200 telephony RGUs[1] Financial Performance - Revenue for Q4 2024 was $1,150 million, a decrease of 1% year-over-year, while FY 2024 revenue was $4,457 million, also down by 1%[4] - Adjusted OIBDA for Q4 2024 was $427 million, a decrease of 1% year-over-year, with FY 2024 Adjusted OIBDA at $1,594 million, down 6%[4] - Liberty Puerto Rico's revenue declined by 10% year-over-year in Q4 2024, primarily due to challenges in mobile operations[8] - Adjusted Free Cash Flow for the year ended December 31, 2024, was $1,145.4 million, reflecting a 5% increase from $1,086.3 million in 2023[33] - Net loss attributable to shareholders was $178 million for Q4 2024 and $657 million for the full year, compared to $103 million and $74 million for the same periods in 2023[14] Adjusted OIBDA and Margins - Adjusted OIBDA for C&W Caribbean increased by 5% and 6% on a reported and rebased basis, respectively, with an Adjusted OIBDA margin improvement of over 150 basis points year-over-year to 45% in Q4 2024[12] - C&W Panama's Adjusted OIBDA rose by 19% on both a reported and rebased basis, driven by product mix and synergies from the Claro Panama acquisition[14] - Liberty Puerto Rico's Adjusted OIBDA declined by 23% and 24% on a reported and rebased basis, primarily due to revenue decline, despite lower operating costs from the termination of the TSA with AT&T[14] - Total reported Adjusted OIBDA decreased by 1% and 6% for Q4 and the full year 2024, respectively, as organic reductions in Liberty Puerto Rico were partly offset by growth in C&W Panama, C&W Caribbean, and Liberty Costa Rica[13] - Adjusted OIBDA for Q4 2024 was $307.8 million, a 7% increase from $288.2 million in Q4 2023[33] Capital Expenditures and Debt - Capital expenditures for the year ended December 31, 2024, were $540.4 million, down from $585.0 million in 2023[16] - The total debt and finance lease obligations as of December 31, 2024, were $8,080.2 million, with a net debt of $7,476.1 million[84] - C&W's total third-party net debt was $4.4 billion, with a Fully-swapped Borrowing Cost of 5.7% and an average debt tenor of approximately 4.3 years[35] - C&W entered into a $1.5 billion term loan due January 31, 2032, and issued $755 million of senior notes due January 15, 2033, to refinance existing debt[35] - Unused borrowing capacity increased to $796.3 million as of December 31, 2024, compared to $710.1 million in the previous quarter[18] Operational Efficiency - The company successfully refinanced $3.3 billion of C&W credit silo debt, extending the weighted average maturity profile to 6.5 years[2] - By the end of 2024, 97% of fixed networks were capable of delivering speeds of at least 1Gbps, up from approximately 80% at the end of 2023[2] - The operating income margin improved to 11.1% in Q4 2024 from 9.7% in Q4 2023, indicating enhanced operational efficiency[66] - The company has made significant investments in new customer products and infrastructure to drive operational efficiency and support market expansion[4] - The company anticipates continued demand for connectivity in the region and plans to enhance its digital strategy and product innovation[28] Regional Performance - C&W Caribbean reported a 6% year-over-year growth in Adjusted OIBDA, with a margin increase of nearly 200 basis points to 43%[5] - Liberty Costa Rica reported Q4 2024 revenue of CRC 85.8 billion, an increase of 9% year-over-year, with Adjusted OIBDA rising 11% to CRC 34.2 billion[40] - Liberty Costa Rica's operating income for the year ended December 31, 2024, was $64.3 million, a 16% increase from the previous year[40] - Liberty Puerto Rico's operating income for the year ended December 31, 2024, was a loss of $522.8 million, compared to a profit of $175.2 million in 2023[37] - Liberty Puerto Rico's total third-party debt as of December 31, 2024, was $2.775 billion, with a Covenant Consolidated Net Leverage Ratio of 7.4x[39]