Before diving into the investment thesis for this article, it may be useful for readers who're less familiar with Liberty to set the scene here. Investors who investTMT sector professional. Over 20 years of experience working in the sector in Europe and outside Europe. Decade of investing experience to keep in close touch with companies and themes that are relevant for my work. Education in Corporate Finance.Companies where I worked are among others: KPN, Chellomedia, Liberty Global, UPC Cablecom Switzerlan ...

Core Points - Liberty Latin America and Millicom's proposed transaction to combine operations in Costa Rica has been rejected by the country's telecommunications regulator, SUTEL [1][3] - Both companies believe the transaction would have enhanced technology investment, market competitiveness, and the expansion of next-generation networks in Costa Rica [2][3] - The decision was unexpected as both companies had maintained ongoing dialogue with SUTEL and believed they had addressed potential concerns [3] Company Overview - Liberty Latin America Ltd. operates in the telecommunications sector, focusing on mobile and wireless services [1][6] - Millicom International Cellular S.A. is also a key player in the telecommunications industry, with a focus on mobile services [1][6]

Financial Data and Key Metrics Changes - The company reported revenue of $1.1 billion in Q3 2025, marking a return to year-over-year growth driven by improved B2B trends [4][18] - Adjusted EBITDA reached $433 million, reflecting a year-over-year growth of 7% [5][18] - Adjusted EBITDA less P&E additions improved by 22% year-over-year, totaling $284 million [18][29] Business Line Data and Key Metrics Changes - The Cable & Wireless credit silo, which includes Liberty Caribbean, C&W Panama, and Liberty Networks, generated $662 million in revenue, reflecting a year-over-year rebase increase of 4% [24] - Liberty Caribbean reported $369 million in revenue with 3% growth year-over-year, while adjusted EBITDA was $173 million, representing 10% rebase growth [20][21] - C&W Panama delivered $199 million in revenue and $72 million in adjusted EBITDA, with year-over-year rebase growth of 6% and 4% respectively [22] - Liberty Networks generated $117 million in revenue and $65 million in adjusted EBITDA, with year-over-year rebase increases of 6% and 10% respectively [23] Market Data and Key Metrics Changes - Postpaid mobile additions exceeded 100,000 across the group, with Costa Rica being a significant contributor [4] - In Puerto Rico, mobile performance showed stability with lower postpaid losses compared to Q2 [16] - The broadband subscriber base in Liberty Caribbean remained flat, with gains in Jamaica offset by declines in Trinidad [6][7] Company Strategy and Development Direction - The company is focused on organic growth and cash flow generation, aiming to close the embedded discount in its stock price [6][29] - There is a strong emphasis on cost reduction and efficiency programs to support adjusted EBITDA and cash flow into 2026 [29] - The company is also pursuing strategic initiatives and optimizing capital allocation to enhance shareholder value [29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by Hurricane Melissa but expressed confidence in the resilience of employees and the recovery efforts [3][28] - The company anticipates adverse impacts on RGUs, revenue, and adjusted EBITDA in Q4 due to the hurricane [22] - Management remains optimistic about the commercial plans for both B2B and residential segments, particularly during the holiday season [29] Other Important Information - The company has a total debt of $8.4 billion and cash of $600 million as of September 30 [26] - A parametric insurance program is in place to mitigate losses from natural disasters, with an expected payout of $81 million from Hurricane Melissa [27][28] Q&A Session Summary Question: Timing and progress of cost-cutting initiatives - Management indicated that cost-cutting initiatives started 20 months ago and are expected to continue into 2026, with a focus on various operational costs [31][32] Question: Margin drivers for Liberty Networks - Management highlighted that margin expansion in Liberty Networks is driven by improved debt management and a shift towards monthly recurring revenue [32][34] Question: Additional margin expansion in Puerto Rico - Management expects continued margin expansion in Puerto Rico through cost management and revenue growth initiatives [35][36] Question: Competition in Puerto Rico's fixed business - Management noted increased competition primarily from traditional cable operators, with a focus on new product launches to enhance competitiveness [39][40] Question: Network rebuilding in Jamaica post-hurricane - Management is still assessing the extent of network damage in Jamaica, with ongoing recovery efforts supported by partners [42][43] Question: Partnership with Starlink - Management described the partnership with Starlink as beneficial for providing connectivity during outages, particularly for B2B customers [43][44]

LIBERTY LATIN AMERICA Q3 2025 INVESTOR CALL November 6, 2025 "SAFE HARBOR" FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS & DISCLAIMER This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, financial and operational performance, growth expectations; our digital strategy, product innovation and commercial plans and projects; expectations on ...

Financial Performance - Revenue for the three months ended September 30, 2025, was $1,112.5 million, an increase of $23.3 million (2.1%) from $1,089.2 million in 2024[201]. - Operating income for the three months ended September 30, 2025, was $187.5 million, a significant improvement of $567.1 million compared to an operating loss of $379.6 million in 2024[201]. - Adjusted OIBDA for the three months ended September 30, 2025, was $433.4 million, up from $403.1 million in 2024, reflecting an increase of $30.3 million (7.5%) year-over-year[205]. - For the nine months ended September 30, 2025, revenue was $3,282.7 million, a decrease of $23.9 million (0.7%) from $3,306.6 million in 2024[201]. - Operating loss for the nine months ended September 30, 2025, was $17.4 million, an improvement of $158.6 million compared to a loss of $176.0 million in 2024[201]. - Adjusted OIBDA for the nine months ended September 30, 2025, was $1,255.0 million, an increase of $88.6 million (7.6%) from $1,166.4 million in 2024[206]. Revenue Breakdown - Liberty Caribbean's total revenue for the three months ended September 30, 2025, was $368.8 million, an increase of $9.3 million or 2.6% compared to $359.5 million in 2024[212]. - For the nine months ended September 30, 2025, Liberty Caribbean's total revenue was $1,099.0 million, reflecting an increase of $7.0 million or 0.6% from $1,092.0 million in 2024[213]. - C&W Panama's total revenue for the three months ended September 30, 2025, was $199.1 million, an increase of $11.1 million or 5.9% compared to $188.0 million in 2024[216]. - Liberty Puerto Rico's revenue decreased by $10.0 million or 3.2% for the three months ended September 30, 2025, totaling $298.2 million compared to $308.2 million in 2024[212]. - Liberty Costa Rica's total revenue for the three months ended September 30, 2025, was $154.5 million, an increase of $9.0 million (6.2%) compared to $145.5 million in 2024[222]. Cost and Expenses - Programming and other direct costs of services for the three months ended September 30, 2025, were $247.6 million, an increase of $15.7 million (6.8%) from $231.9 million in 2024[201]. - Other operating costs and expenses for the three months ended September 30, 2025, decreased by $23.6 million (5.0%) to $446.5 million from $470.1 million in 2024[201]. - Impairment, restructuring, and other operating items, net, for the three months ended September 30, 2025, were $17.3 million, a decrease of $504.1 million compared to $521.4 million in 2024[201]. - Total other operating costs and expenses for the nine months ended September 30, 2025, decreased by $104.3 million to $1,377.4 million compared to the same period in 2024[242]. - Personnel and contract labor costs for the nine months ended September 30, 2025, decreased by $18.5 million to $423.0 million compared to the same period in 2024[242]. Market and Competition - The company faced significant competition across all markets, impacting its ability to maintain RGUs, ARPU, and B2B revenue[209]. - The average number of RGUs increased by 1.5 million (3-month) and 5.4 million (9-month), while ARPU decreased by $4.3 (3-month) and $14.1 (9-month) due to lower video service revenues[223]. Foreign Currency and Inflation - The company is subject to inflationary pressures and foreign currency exchange risks that could impact operating margins[199]. - Changes in foreign currency exchange rates may significantly affect the company's operating results, particularly in Liberty Costa Rica and certain entities within C&W[197]. - For the three months ended September 30, 2025, the company recognized foreign currency transaction losses of $8.8 million, compared to losses of $7.6 million in the same period of 2024[268]. Acquisitions and Investments - The acquisition of EchoStar's prepaid business and spectrum assets in Puerto Rico and USVI involved an aggregate cash consideration of $256 million, payable in four annual installments[194]. - The company entered into an agreement to acquire 8.5% of the equity of Liberty Costa Rica for approximately $84 million, with 62.5% due upon closing and the remaining 37.5% due in January 2027[193]. Natural Disasters Impact - Hurricane Melissa is expected to adversely impact revenue and RGUs, Adjusted OIBDA, and long-lived asset impairments for the remainder of 2025[188]. - The company anticipates receiving net third-party proceeds related to Hurricane Melissa during the fourth quarter of 2025[189]. Debt and Liquidity - The total outstanding principal amount of debt and finance lease obligations was $8,363 million as of September 30, 2025[289]. - Cash and cash equivalents totaled $596.7 million as of September 30, 2025, with $503.4 million held by borrowing groups[280]. - The net cash used by investing activities was $417.6 million for the nine months ended September 30, 2025, compared to $513.3 million in 2024, reflecting a decrease of $95.7 million[292].

Financial Performance - Q3 2025 revenue reached $1,113 million, a 2% increase year-over-year, while YTD revenue was $3,283 million, a 1% decline[8] - Operating income improved significantly to $188 million from a loss of $380 million in Q3 2024, marking a 149% increase[8] - Adjusted OIBDA for Q3 2025 was $433 million, reflecting an 8% increase year-over-year, with a margin of 39%[8] - Adjusted Free Cash Flow (Adjusted FCF) for Q3 2025 was $16 million, down from $65 million in Q3 2024[8] - Net income attributable to shareholders was $3 million for Q3 2025, compared to a loss of $436 million in Q3 2024[21] - Operating income for the same period was $152.5 million, reflecting a significant 62% increase compared to $94.4 million in the prior year[39] - Adjusted OIBDA for Q3 2025 was $309.4 million, up 8% from $286.5 million in Q3 2024[39] - Operating income for the three months ended September 30, 2025, was $187.5 million, compared to a loss of $379.6 million in the same period of 2024[75] Revenue Growth - Liberty Caribbean reported a 3% revenue growth in Q3, driven by a 5% increase in fixed residential revenue and a 2% increase in residential mobile and B2B revenue[13] - C&W Panama achieved a 6% revenue growth in Q3, primarily due to a 14% increase in B2B revenue from large enterprise and government projects[13] - Liberty Networks experienced a 6% revenue growth in Q3, supported by expansion in wholesale and enterprise businesses, particularly in subsea capacity revenue[13] - Liberty Puerto Rico's revenue declined by 3% year-over-year, attributed to a 7% decrease in residential mobile and a 16% decline in B2B revenue[13] - Liberty Costa Rica's revenue grew by 6% on a reported basis, driven by higher residential mobile revenue from postpaid subscriber growth[14] - For the three months ended September 30, 2025, Liberty Latin America reported revenue of $661.8 million, a 4% increase from $636.5 million in the same period of 2024[39] Adjusted OIBDA - Adjusted OIBDA for Q3 2025 increased by 8% to $433.4 million compared to $403.1 million in Q3 2024, with a margin of 39.0%[16] - Liberty Caribbean's Adjusted OIBDA rose by 9% to $172.5 million, supported by improved operating costs from efficiency programs[17] - C&W Panama's Adjusted OIBDA increased by 5% to $71.8 million, driven by B2B project revenue and network efficiencies[22] - Liberty Puerto Rico's Adjusted OIBDA grew by 8% to $95.5 million, despite a rebased revenue decline, due to aggressive cost-out programs[22] - Liberty Costa Rica's Adjusted OIBDA increased by 11% to $56.4 million, with stable costs contributing to strong performance[22] - The proportionate adjusted OIBDA for Liberty Latin America was $258 million for Q3 2025[40] Debt and Financial Obligations - Total debt and finance lease obligations amounted to $8.36 billion as of September 30, 2025, with a gross leverage ratio of 4.9x[28] - The company has an unused borrowing capacity of $912.8 million, indicating available liquidity for future investments[28] - As of September 30, 2025, the total third-party debt was $4.9 billion, with a net carrying amount of $4.5 billion after accounting for cash and cash equivalents[40] - The Covenant Proportionate Net Leverage Ratio was reported at 3.7x, calculated based on the last two quarters of Covenant EBITDA[40] - Liberty Puerto Rico's total debt and finance lease obligations amounted to $2,944.3 million, an increase from $2,751.5 million as of June 30, 2025[43] - The average tenor of Liberty Puerto Rico's debt was approximately 3.0 years as of September 30, 2025, with a fully-swapped borrowing cost of 6.9%[44] Capital Expenditures - Capital expenditures for Q3 2025 totaled $122.2 million, representing 13.4% of revenue, down from 15.7% in Q3 2024[24] - The company’s capital expenditures for property and equipment additions were $149.3 million for the three months ended September 30, 2025, compared to $170.7 million for the same period in 2024[75] Subscriber Metrics - Liberty Caribbean's total subscriber base reached 4,812,600 as of September 30, 2025, with a total of 1,874,100 mobile subscribers[47] - Liberty Puerto Rico experienced a net loss of 11,700 RGUs in the quarter ended September 30, 2025, compared to the previous quarter[48] - The number of Revenue Generating Units (RGUs) includes video, internet, and telephony services, with specific counts reflecting unique premises and excluding mobile-only customers[64] - The company has a total of 1.2 million Fixed Customer Relationships with a postpaid product, representing a penetration rate of 30% of total Fixed Customer Relationships[55] Future Outlook - The company anticipates adverse impacts from Hurricane Melissa on Q4 2025 financial results, with expected proceeds from a weather derivative to aid recovery efforts[6] - The company anticipates continued demand for connectivity in the region and is focused on digital strategy and product innovation[35]

Industry Overview - The Zacks Wireless National industry is experiencing healthy demand trends due to accelerated 5G rollout and increased fiber densification, which aids in bridging the digital divide with seamless connectivity [1] - The industry primarily includes firms providing a wide range of communication services, including wireless, wireline, broadband, and cloud-based services to both retail consumers and businesses [3] Future Trends - The 5G ecosystem is gaining traction as companies deploy advanced 4G LTE technologies and expand fiber optic networks to support both 4G and 5G standards, enhancing coverage and speed for customers [4] - Industry participants are shifting towards a software-centric network model to improve operational efficiencies and meet increasing business demands [6] Competitive Landscape - Increased infrastructure spending has led to short-term margin erosion due to aggressive promotional expenses and low-priced service plans aimed at customer retention [5] - The industry faces challenges from over-the-top service providers and price-sensitive competition, which is expected to intensify [5] Performance Metrics - The Zacks Wireless National industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector over the past year, with a growth of 22.4% compared to 15.9% for the S&P 500 and 21.4% for the sector [9] - The industry is currently trading at a trailing 12-month EV/EBITDA of 9.5X, significantly lower than the S&P 500's 17.77X and the sector's 17.81X [12] Key Companies - Array Digital Infrastructure, Inc. is benefiting from solid user engagement in its fixed wireless business and has delivered an earnings surprise of 40% on average over the trailing four quarters, carrying a Zacks Rank 2 (Buy) [15] - Liberty Latin America Ltd. is positioned to leverage its end-to-end communications platform and upgraded infrastructure, carrying a Zacks Rank 3 (Hold) [18] - Cambium Networks Corporation is well-positioned with a broad portfolio of fixed wireless broadband solutions and has a long-term earnings growth expectation of 20%, also carrying a Zacks Rank 3 [20]

Financial Data and Key Metrics Changes - Q2 2025 revenue was $1.1 billion, a 3% decrease on a rebased basis, primarily due to the phasing of project-related B2B revenues [34] - Adjusted OIBDA increased by 7% to $415 million, building on an 8% growth in Q1 [34] - Adjusted OIBDA less P&E additions rose by 26% to $265 million, representing 24% of revenue compared to 19% last year [36] Business Line Data and Key Metrics Changes - Liberty Caribbean reported $366 million in revenue with flat rebased growth year over year, driven by a 6% increase in residential mobile revenue [38] - Cable and Wireless Panama generated $177 million in revenue, with a 10% rebased revenue decline, but adjusted OIBDA grew by 6% year over year [39] - Liberty Networks delivered $150 million in revenue, reflecting a 3% rebased decline, primarily due to a decrease in non-cash IRU revenue [41] Market Data and Key Metrics Changes - Residential revenue in Puerto Rico declined by 5% year over year, with mobile residential revenue down 3% [42] - In Costa Rica, mobile residential revenue grew by 5% year over year, supported by higher postpaid volumes [45] - B2B revenue in Panama declined by 30%, reflecting a strong prior year comparison driven by government project wins [39] Company Strategy and Development Direction - The company plans to separate Liberty Puerto Rico from Liberty Latin America to unlock shareholder value and improve capital structure [6][50] - Focus on lowering capital intensity led to a 23% expansion in adjusted OIBDA less P&E additions year over year [9] - The company is pursuing consolidation opportunities and enhancing its fixed-mobile convergence strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating stronger cash flow generation and improved revenue performance [54] - The company is focused on operational efficiencies and cost reduction initiatives to enhance margins [33] - Management highlighted the importance of government investments in digitization and cloud computing as growth opportunities [32] Other Important Information - The company reported a negative adjusted free cash flow of $41 million in Q2, attributed to working capital swings [36] - Management changes in Puerto Rico focus on operations, network improvements, and commercial strategies to enhance performance [84] Q&A Session Summary Question: Can you provide more details on the B2B headwinds in Panama? - The B2B headwinds were primarily due to a strong comparison with Q2 2024 and delays in recognizing government project revenues [58][60] Question: What assets will be utilized in the Puerto Rico spin-off? - The company is not commenting on specific assets but acknowledges strong assets that provide financial flexibility [68] Question: Can you elaborate on the impairment in Puerto Rico? - The impairment relates to spectrum acquired from AT&T, which had a higher carrying value than newly acquired spectrum [78][79] Question: What changes were made to the management team in Puerto Rico? - Changes focused on operations, network technology, and commercial strategies to improve performance and customer engagement [84]

Financial Highlights - H1 2025 Adjusted OIBDA reached $08 billion, reflecting an 8% rebased growth YoY[8] - H1 2025 Adjusted OIBDA less P&E Additions was $06 billion[8] - H1 2025 revenue totaled $22 billion[8] - Q2 2025 Adjusted OIBDA increased by 7% rebased growth rate[69] - Q2 2025 P&E additions accounted for 14% of revenue, a 16% YoY decrease[69] Subscriber Growth - H1 2025 saw a net addition of over 100,000 subscribers, excluding LPR, with Costa Rica, Panama, and Jamaica as main contributors[8] - H1 2025 witnessed 70,000 net additions in Internet and Postpaid subscribers[8] Segment Performance - C&W credit silo revenue increased by 6% YoY[72] - Liberty Networks wholesale revenue (excluding IRUs) increased by 8% rebased[33] - Liberty Puerto Rico's Adjusted OIBDA increased by 21%[77] - Liberty Costa Rica's mobile revenue increased by 5% rebased YoY[85] Strategic Initiatives - The company intends to separate LPR from LLA and focus on liability management in Puerto Rico[8] - LLA is focused on capital allocation and shareholder value, including potential spin-off of Puerto Rico and recurring dividends or share repurchases[91]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section provides comprehensive financial data, including statements, notes, and management's discussion of performance and condition [Item 1. FINANCIAL STATEMENTS](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents unaudited condensed consolidated financial statements, with notes on accounting policies and a significant impairment charge [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Total Assets | $11,952.9 | $12,800.0 | | Goodwill | $2,983.5 | $2,981.0 | | Intangible assets not subject to amortization | $1,319.1 | $1,813.3 | | Total Liabilities | $10,830.9 | $11,174.0 | | Total Equity | $1,122.0 | $1,626.0 | - Intangible assets not subject to amortization decreased significantly, primarily due to a **$494 million impairment loss** on spectrum license intangible assets at Liberty Puerto Rico during Q2 2025[21](index=21&type=chunk)[58](index=58&type=chunk) [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, expenses, and net income or loss, reflecting operational performance Consolidated Statements of Operations Highlights (in millions, except per share amounts) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $1,086.7 | $1,118.0 | $2,170.2 | $2,217.4 | | Operating income (loss) | $(333.0) | $110.8 | $(204.9) | $203.6 | | Net loss attributable to Liberty Latin America shareholders | $(423.3) | $(42.7) | $(559.7) | $(43.2) | | Basic and diluted net loss per share | $(2.12) | $(0.22) | $(2.82) | $(0.22) | - Impairment, restructuring and other operating items, net, **increased significantly from $25.6 million in Q2 2024 to $517.2 million in Q2 2025**, primarily due to a **$494 million impairment loss** on spectrum license intangible assets at Liberty Puerto Rico[26](index=26&type=chunk)[58](index=58&type=chunk)[257](index=257&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) This section presents the total comprehensive loss, including net loss and other comprehensive income or loss Consolidated Statements of Comprehensive Loss Highlights (in millions) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(415.1) | $(36.9) | $(541.8) | $(37.4) | | Other comprehensive earnings (loss) | $4.3 | $(11.5) | $19.1 | $(1.6) | | Comprehensive loss | $(410.8) | $(48.4) | $(522.7) | $(39.0) | - Other comprehensive earnings (loss) **improved from a loss of $(11.5) million in Q2 2024 to earnings of $4.3 million in Q2 2025**, and **from a loss of $(1.6) million in H1 2024 to earnings of $19.1 million in H1 2025**, primarily due to foreign currency translation adjustments[29](index=29&type=chunk) [Condensed Consolidated Statements of Equity](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section outlines changes in shareholders' equity, including net income, share repurchases, and other comprehensive income Liberty Latin America Shareholders' Equity Highlights (in millions) | Metric | June 30, 2025 | January 1, 2025 | | :-------------------------------- | :------------ | :-------------- | | Total Liberty Latin America shareholders | $608.4 | $1,121.0 | | Accumulated deficit | $(4,158.4) | $(3,598.7) | | Additional paid-in capital | $5,345.6 | $5,315.6 | | Noncontrolling interests | $513.6 | $505.0 | - Total Liberty Latin America shareholders' equity **decreased by $512.6 million** from January 1, 2025, to June 30, 2025, primarily driven by the **net loss of $(559.7) million** during the period[35](index=35&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details cash flows from operating, investing, and financing activities, indicating liquidity and solvency Consolidated Statements of Cash Flows Highlights (Six months ended June 30, in millions) | Cash Flow Activity | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net cash provided by operating activities | $165.8 | $180.2 | | Net cash used by investing activities | $(246.9) | $(282.4) | | Net cash used by financing activities | $(32.2) | $(280.5) | | Net decrease in cash, cash equivalents and restricted cash | $(139.5) | $(385.3) | | Cash, cash equivalents and restricted cash at end of period | $530.8 | $614.5 | - Net cash used by financing activities **decreased significantly by $248.3 million**, **from $(280.5) million in H1 2024 to $(32.2) million in H1 2025**, primarily due to higher debt borrowings and lower share repurchases[41](index=41&type=chunk)[294](index=294&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, significant transactions, and other disclosures - Liberty Latin America is an **international provider of fixed, mobile, and subsea telecommunications services** across over 20 countries in Latin America and the Caribbean, Puerto Rico, USVI, and Costa Rica[45](index=45&type=chunk)[46](index=46&type=chunk)[49](index=49&type=chunk) - A **$494 million impairment loss** was recorded on spectrum license intangible assets at Liberty Puerto Rico during the second quarter of 2025, driven by challenges related to customer migration and network operationalization[57](index=57&type=chunk)[58](index=58&type=chunk) - The company entered into an agreement with Millicom to **combine Costa Rica operations**, expected to be completed during Q1 2026, and also agreed to **acquire an additional 8.5% equity** in Liberty Costa Rica for **approximately $83 million**[60](index=60&type=chunk)[61](index=61&type=chunk) Total Debt Before Premiums, Discounts and Deferred Financing Costs (in millions) | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $8,228.4 | | December 31, 2024 | $8,138.8 | - Income tax benefit **increased significantly to $155.7 million (Q2 2025) and $146.6 million (H1 2025) from $35.9 million (Q2 2024) and $30.8 million (H1 2024)**, primarily due to beneficial effects of permanent differences and jurisdictional rate differences, partially offset by increased valuation allowances and global minimum tax effects[115](index=115&type=chunk)[116](index=116&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) Revenue by Reportable Segment (Six months ended June 30, in millions) | Segment | 2025 | 2024 | | :------------------ | :----- | :----- | | Liberty Caribbean | $730.2 | $732.5 | | C&W Panama | $354.3 | $366.4 | | Liberty Networks | $225.0 | $227.6 | | Liberty Puerto Rico | $599.7 | $635.8 | | Liberty Costa Rica | $309.5 | $299.5 | | **Consolidated Revenue** | **$2,170.2** | **$2,217.4** | Adjusted OIBDA by Reportable Segment (Six months ended June 30, in millions) | Segment | 2025 | 2024 | | :------------------ | :----- | :----- | | Liberty Caribbean | $347.1 | $307.6 | | C&W Panama | $133.2 | $121.6 | | Liberty Networks | $118.7 | $122.3 | | Liberty Puerto Rico | $168.5 | $140.2 | | Liberty Costa Rica | $112.9 | $111.7 | | **Total Reportable Segment Adjusted OIBDA** | **$880.4** | **$803.4** | [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=37&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes financial condition and operating results, highlighting impacts from acquisitions, currency, and impairment [Overview](index=47&type=section&id=Overview) This section provides a high-level summary of the company's operational footprint, subscriber base, and strategic initiatives - As of June 30, 2025, the company served **3,979,400 RGUs** (1,807,300 broadband internet, 1,253,900 fixed-line telephony, 918,200 video) and **6,643,600 mobile subscribers** across its fixed networks passing **4,795,900 homes**[183](index=183&type=chunk) - The company is **combining its Costa Rica operations with Millicom**, with Liberty Latin America and its minority partner holding **approximately 86% interest**, expected to close in Q1 2026. Additionally, an agreement was made to **acquire an additional 8.5% equity** in Liberty Costa Rica for **$83 million** by January 30, 2026[185](index=185&type=chunk)[186](index=186&type=chunk) - **New and increased U.S. government tariffs** on imported goods may impact the price of mobile handsets in Liberty Puerto Rico, contributing to global economic uncertainty[184](index=184&type=chunk) [Material Changes in Results of Operations](index=47&type=section&id=Material%20Changes%20in%20Results%20of%20Operations) This section analyzes significant changes in revenue, operating expenses, and profitability, including impairment impacts Operating Income (Loss) Changes (Six months ended June 30, in millions) | Metric | 2025 | 2024 | Increase (decrease) | Organic Change | | :------------------------------------ | :----- | :----- | :------------------ | :------------- | | Revenue | $2,170.2 | $2,217.4 | $(47.2) | $(64.8) | | Operating costs and expenses (excl. D&A) | $1,395.9 | $1,497.1 | $(101.2) | $(120.8) | | Depreciation and amortization | $446.3 | $484.5 | $(38.2) | $(38.1) | | Impairment, restructuring, other operating items | $532.9 | $32.2 | $500.7 | $500.7 | | **Operating Income (Loss)** | **$(204.9)** | **$203.6** | **$(408.5)** | **$(408.6)** | Consolidated Adjusted OIBDA (in millions) | Period | 2025 | 2024 | | :------------------- | :----- | :----- | | Three months ended June 30 | $415.0 | $389.1 | | Six months ended June 30 | $821.6 | $763.3 | Adjusted OIBDA Margin by Segment (Six months ended June 30, in %) | Segment | 2025 | 2024 | | :------------------ | :--- | :--- | | Liberty Caribbean | 47.5 | 42.0 | | C&W Panama | 37.6 | 33.2 | | Liberty Networks | 52.8 | 53.7 | | Liberty Puerto Rico | 28.1 | 22.1 | | Liberty Costa Rica | 36.5 | 37.3 | - Depreciation and amortization expense **decreased by $38 million (8%)** for the six months ended June 30, 2025, primarily due to customer relationship assets becoming fully amortized and certain assets becoming fully depreciated in C&W Panama and Liberty Caribbean[256](index=256&type=chunk) - Interest expense **increased by $12 million** for the six months ended June 30, 2025, primarily due to increases in average debt balances, weighted-average interest rates, and the accretion of the net present value discount associated with the LPR Acquisition deferred payment obligation[260](index=260&type=chunk) Realized and Unrealized Gains (Losses) on Derivative Instruments, Net (in millions) | Period | 2025 | 2024 | | :------------------- | :----- | :----- | | Three months ended June 30 | $(24.7) | $23.9 | | Six months ended June 30 | $(87.6) | $70.3 | - Net loss **increased significantly to $(541.8) million** for the six months ended June 30, 2025, **from $(37.4) million** in the prior year, largely due to the impairment charge and derivative losses[274](index=274&type=chunk) [Material Changes in Financial Condition](index=73&type=section&id=Material%20Changes%20in%20Financial%20Condition) This section discusses significant changes in the company's assets, liabilities, and equity, including liquidity and debt management Cash and Cash Equivalents (in millions) | Date | Amount | | :---------------- | :------- | | June 30, 2025 | $514.4 | | December 31, 2024 | $654.3 | - The company's **liquidity is primarily held by its three borrowing groups** (C&W, Liberty Puerto Rico, and Liberty Costa Rica), with access potentially limited by tax, legal, noncontrolling interests, and foreign currency restrictions[275](index=275&type=chunk)[277](index=277&type=chunk) - Outstanding principal amount of debt and finance lease obligations aggregated **$8,233 million** at June 30, 2025, with **$557 million classified as current** and **$7,666 million due in 2027 or thereafter**[286](index=286&type=chunk) - The weighted average interest rate on indebtedness was **6.5%** at June 30, 2025, including the effects of derivative instruments, original issue premiums or discounts, and commitment fees[287](index=287&type=chunk) Cash Flow Summary (Six months ended June 30, in millions) | Cash Flow Activity | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :------- | | Net cash provided by operating activities | $165.8 | $180.2 | $(14.4) | | Net cash used by investing activities | $(246.9) | $(282.4) | $35.5 | | Net cash used by financing activities | $(32.2) | $(280.5) | $248.3 | | **Net decrease in cash** | **$(139.5)** | **$(385.3)** | **$245.8** | Capital Expenditures, Net (Six months ended June 30, in millions) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Property and equipment additions | $270.5 | $314.5 | | Assets acquired under capital-related vendor financing arrangements | $(55.4) | $(72.1) | | Changes in current liabilities related to capital expenditures and other | $20.9 | $7.8 | | **Capital expenditures, net** | **$236.0** | **$250.2** | [Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=71&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details market risk exposure, including foreign currency and interest rates, and risk management strategies [Foreign Currency Rates](index=78&type=section&id=Foreign%20Currency%20Rates) This section outlines the company's exposure to foreign currency fluctuations and its approach to managing associated risks Foreign Currency Exchange Rates (per one U.S. dollar) | Currency | June 30, 2025 (Spot) | December 31, 2024 (Spot) | H1 2025 (Average) | H1 2024 (Average) | | :------- | :------------------- | :----------------------- | :---------------- | :---------------- | | CRC | 505.48 | 510.49 | 505.75 | 514.00 | | JMD | 160.17 | 155.33 | 157.35 | 154.88 | - The company **manages exchange rate risk** by actively managing the denominations of its cash balances in consideration of forecasted liquidity requirements[299](index=299&type=chunk) [Interest Rate Risks](index=78&type=section&id=Interest%20Rate%20Risks) This section describes the company's exposure to interest rate fluctuations and its use of derivative instruments for hedging - The company **uses interest rate derivative contracts** (swaps, caps, floors) to protect against increases in the interest rates on its variable-rate debt[301](index=301&type=chunk) - At June 30, 2025, **95% of the company's total debt had a fixed or capped interest rate**, including the impact of interest rate derivative contracts[301](index=301&type=chunk) [Sensitivity Information](index=79&type=section&id=Sensitivity%20Information) This section provides quantitative analysis of the potential impact of market rate changes on derivative instrument fair values - An instantaneous **100 basis point increase (decrease)** in the relevant base rate would change the aggregate fair value of C&W interest rate derivative contracts by **approximately $111 million**[303](index=303&type=chunk) - An instantaneous **100 basis point increase (decrease)** in the relevant base rate would change the aggregate fair value of Liberty Puerto Rico interest rate derivative contracts by **approximately $14 million**[304](index=304&type=chunk) - An instantaneous **10% increase (decrease)** in the value of the Costa Rica Colon relative to the U.S. dollar would change the aggregate fair value of Liberty Costa Rica foreign currency forward contracts by **approximately $16 million**[305](index=305&type=chunk) [Projected Cash Flows Associated with Derivative Instruments](index=79&type=section&id=Projected%20Cash%20Flows%20Associated%20with%20Derivative%20Instruments) This section presents anticipated net cash payments or receipts related to the company's derivative instruments Projected Derivative Cash Payments (Receipts), Net (in millions, as of June 30, 2025) | Category | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | | :-------------------------- | :---------------- | :--- | :--- | :--- | :--- | :--- | :--------- | :------ | | Interest-related | $(19.8) | $(36.6) | $(57.2) | $(43.3) | $(1.7) | $(1.7) | $(2.2) | $(162.5) | | Other (foreign currency) | — | $7.6 | $2.4 | — | — | — | — | $10.0 | | **Total** | **$(19.8)** | **$(29.0)** | **$(54.8)** | **$(43.3)** | **$(1.7)** | **$(1.7)** | **$(2.2)** | **$(152.5)** | [Item 4. CONTROLS AND PROCEDURES](index=73&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) This section addresses disclosure controls and internal control over financial reporting, noting un-remediated material weaknesses [Evaluation of Disclosure Controls and Procedures](index=80&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and procedures as of the reporting date - The company's disclosure controls and procedures were concluded to be **ineffective as of June 30, 2025**, due to **un-remediated material weaknesses** in internal control over financial reporting[311](index=311&type=chunk) [Management's Remediation Plans](index=80&type=section&id=Management%27S%20Remediation%20Plans) This section outlines management's ongoing efforts to strengthen internal control over financial reporting and address identified weaknesses - Management, with oversight from the Audit Committee, is continuing to **implement remediation plans** to strengthen internal control over financial reporting and address identified material weaknesses[312](index=312&type=chunk) [Changes in Internal Control over Financial Reporting](index=80&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section describes specific actions taken to improve internal control over financial reporting during the reporting period - Designed and implemented additional manual procedures and controls - Hired a new Vice President of Controls and Compliance - Held workshops and trainings to reinforce control concepts and responsibilities[314](index=314&type=chunk) [PART II - OTHER INFORMATION](index=81&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides disclosures on legal proceedings, equity security sales, other information, and a list of filed exhibits [Item 1. LEGAL PROCEEDINGS](index=81&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This section notes the company's involvement in ordinary course litigation and refers to financial statement notes for contingent liabilities - The company has **contingent liabilities** related to matters arising in the ordinary course of business, including legal proceedings, tax issues, and disputes over interconnection, programming, and copyright fees[124](index=124&type=chunk)[316](index=316&type=chunk) - A claim was received in Q1 2025 regarding **possible overpayments** under a transitional services agreement, for which a possible loss or range of loss cannot yet be estimated[124](index=124&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=81&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's Share Repurchase Programs, noting no repurchases in Q2 2025 and $242 million remaining authorized - The company's Directors approve **Share Repurchase Programs** authorizing repurchases of Class A and/or Class C common shares through various means[111](index=111&type=chunk)[317](index=317&type=chunk) - **No repurchases** of Class A or C common shares occurred during the three months ended June 30, 2025[318](index=318&type=chunk) - As of June 30, 2025, **$242 million remained authorized** for share repurchases under the Share Repurchase Programs[318](index=318&type=chunk) [Item 5. OTHER INFORMATION](index=81&type=section&id=Item%205.%20OTHER%20INFORMATION) This section confirms no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - **None of the company's directors or officers adopted or terminated** a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended June 30, 2025[319](index=319&type=chunk) [Item 6. EXHIBITS](index=81&type=section&id=Item%206.%20EXHIBITS) This section lists all exhibits filed with the Quarterly Report on Form 10-Q, including certifications and XBRL taxonomy documents - Certification of President and Chief Executive Officer (Exhibit 31.1) - Certification of Senior Vice President and Chief Financial Officer (Principal Financial Officer) (Exhibit 31.2) - Section 1350 Certifications (Exhibit 32) - XBRL Inline Taxonomy Extension Schema, Calculation, Definition, Label, and Presentation Linkbase Documents (Exhibits 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE) - Cover Page Interactive Data File (Exhibit 104)[320](index=320&type=chunk)