Liberty Latin America(LILA) - 2023 Q4 - Annual Results

Subscriber Growth - Liberty Latin America added 186,000 organic broadband and postpaid mobile subscribers in 2023[1] - Liberty Costa Rica and C&W Caribbean saw strong subscriber growth, with 105,000 postpaid mobile subscribers added, primarily in these regions[2] - Liberty Puerto Rico achieved 23,000 broadband net adds over the last twelve months, with over 800,000 mobile subscribers migrated to the LPR platform[5] - The total organic change in subscriber relationships was an increase of 39,200, with significant contributions from Liberty Costa Rica[23] - Total mobile subscribers reached 7,977,400, with prepaid mobile subscribers including 10,300 mobile reseller subscribers[45] Financial Performance - Adjusted OIBDA rebased growth for FY 2023 was 6%, totaling $1.7 billion[1] - Cash provided by operating activities reached$897 million, with Adjusted FCF before distributions to noncontrolling interests at $273 million, a 43$4.51 billion, impacted by the deconsolidation of VTR and organic declines in Liberty Puerto Rico[11] - Revenue for Q4 2023 was $660.6 million, a decrease of 1$669.3 million in Q4 2022[34] - Operating income for Q4 2023 was $64.7 million, down 16$77.1 million in Q4 2022[34] - Adjusted OIBDA for Q4 2023 increased by 5% to $288.2 million, compared to$275.0 million in Q4 2022[34] - For the year ended December 31, 2023, revenue was $2,543.2 million, representing a 4$2,448.6 million in 2022[34] Revenue Growth and Declines - C&W Panama reported a 16% revenue growth and a 21% increase in Adjusted OIBDA for FY 2023[5] - B2B revenue decreased by 6% on both reported and rebased basis, with a 10 million negative impact from the discontinuation of a non-core transit services agreement at C&W Jamaica[5] - Liberty Costa Rica experienced a significant revenue growth of 28% on a reported basis, aided by an 18 million positive foreign exchange impact[5] - Liberty Puerto Rico's revenue for Q4 2023 was $353.5 million, a decrease of 5$372.2 million in Q4 2022[38] - Liberty Costa Rica's revenue for Q4 2023 was CRC 79.2 billion, an increase of 11% from CRC 71.1 billion in Q4 2022[41] Capital Expenditures and Investments - Capital expenditures for the year ended December 31, 2023, totaled $585 million, down from$660.1 million in 2022[19] - The company is focused on expanding its network capacity and enhancing service offerings to drive operational efficiency[61] - New strategies include ongoing investments in infrastructure to support product innovation and market expansion[61] Debt and Financial Ratios - Total consolidated debt and finance lease obligations amounted to $8,242.2 million as of December 31, 2023, with cash and cash equivalents at$996.6 million[20] - The consolidated debt to operating income ratio increased to 15.0x from 13.4x in the previous quarter, while the net debt to operating income ratio rose to 13.2x from 12.4x[20] - The company has an unused borrowing capacity of $869.0 million as of December 31, 2023, down from$887.0 million in the previous quarter[20] - The consolidated leverage ratio as of December 31, 2023, was 4.8x, while the consolidated net leverage ratio was 4.2x[88] Adjusted OIBDA and Operating Income - Adjusted OIBDA for the three months ended December 31, 2023, increased by 7% compared to the prior year, driven by organic growth in C&W Caribbean, Liberty Costa Rica, and C&W Panama[16] - Adjusted OIBDA for Q4 2023 was $431.9 million, up from$402.6 million in Q4 2022, representing a margin increase to 37.1% from 34.7%[68] - Operating income for the year ended December 31, 2023, was $517.7 million, compared to$86.5 million in 2022, with an operating income margin of 11.5%[68] Forward-Looking Statements - The company anticipates a mid to high single-digit Adjusted OIBDA rebased CAGR and over $1 billion in aggregate Adjusted FCF before distributions to noncontrolling interests over the next three years[2] - Forward-looking statements indicate expectations for subscriber growth and integration plans following the AT&T acquisition, with potential risks including competition and regulatory changes[28]