Subscriber Growth and Performance - 186,000 organic broadband and postpaid mobile subscriber net adds in 2023[1] - Over 80% of fixed networks upgraded to enable speeds in excess of 1 Gbps, adding 81,000 broadband subscribers[2] - Postpaid mobile base grew by 105,000 subscribers, primarily in Liberty Costa Rica and C&W Caribbean[2] - C&W Caribbean: ~100,000 internet and mobile postpaid organic adds in 2023; FY reported and rebased Adj. OIBDA growth of 12%[5] - Liberty Costa Rica: 87,000 total postpaid net adds in 2023; FY Adj. OIBDA up 51% and 23% on a reported and rebased basis, respectively[5] - Total C&W Caribbean mobile subscribers increased by 45,000, with Jamaica contributing 33,200 and Barbados 1,900[23] - Liberty Costa Rica mobile subscribers grew by 73,400, driven by 44,900 prepaid and 28,500 postpaid additions[23] - Total C&W Caribbean fixed-line RGUs reached 1,739,000, with mobile subscribers totaling 1,970,000, including 1,663,000 prepaid and 307,000 postpaid subscribers[45] - C&W Panama reported 620,500 fixed-line RGUs and 1,856,400 mobile subscribers, with 1,511,200 prepaid and 345,200 postpaid subscribers[45] - Liberty Puerto Rico recorded 1,053,000 fixed-line RGUs and 979,300 mobile subscribers, including 115,200 prepaid and 864,100 postpaid subscribers[45] - Liberty Costa Rica's fixed-line RGUs stood at 520,900, with mobile subscribers reaching 3,171,700, including 2,267,100 prepaid and 904,600 postpaid subscribers[45] - Total mobile subscribers across all regions reached 7,977,400, including 5,556,500 prepaid and 2,420,900 postpaid subscribers[45] - Postpaid mobile subscribers in Liberty Puerto Rico include 201,800 CRUs (Corporate Responsible Users)[46] - Homes passed in Liberty Costa Rica include 54,000 homes on a third-party network with long-term access[46] Financial Performance and Metrics - Operating income of $518 million; Adj. OIBDA rebased growth of 6% to $1.7 billion[1] - Cash provided by operating activities of $897 million; reported Adj. FCF before distributions to noncontrolling interests of $273 million[1] - Anticipated mid to high single digit Adjusted OIBDA rebased CAGR and aggregate Adjusted FCF of more than $1 billion over the next three years[2] - Adjusted OIBDA for Q4 2023 increased by 7% to $431.9 million, driven by growth in C&W Caribbean, Liberty Costa Rica, and C&W Panama, offset by declines in Liberty Networks and Liberty Puerto Rico[11][16] - C&W Caribbean's Adjusted OIBDA grew by 16% to $160.0 million in Q4 2023, with a margin improvement of over 600 basis points to 44%[11][16] - C&W Panama's Adjusted OIBDA increased by 17% to $66.7 million in Q4 2023, driven by revenue growth and lower bad debt expenses[11][16] - Liberty Costa Rica's Adjusted OIBDA surged by 60% to $57.9 million in Q4 2023, supported by revenue growth and favorable foreign exchange movements[11][17] - Liberty Networks' Adjusted OIBDA declined by 23% to $61.5 million in Q4 2023 due to revenue declines[11][17] - Liberty Puerto Rico's Adjusted OIBDA decreased by 12% to $103.9 million in Q4 2023, impacted by revenue declines and higher operating costs[11][17] - Adjusted OIBDA for Q4 2023 was $431.9 million, up 7.3% from $402.6 million in Q4 2022[68] - Full-year 2023 Adjusted OIBDA reached $1,701.6 million, slightly down 0.5% from $1,709.9 million in 2022[68] - Adjusted OIBDA margin improved to 37.1% in Q4 2023 from 34.7% in Q4 2022[68] - Adjusted Free Cash Flow (Adjusted FCF) for Q4 2023 was $183.7 million, down 12.4% from $209.7 million in Q4 2022[71] - Full-year 2023 Adjusted FCF increased 4.9% to $197.8 million from $188.5 million in 2022[71] - Capital expenditures for 2023 totaled $585.0 million, down 11.4% from $660.1 million in 2022[71] - Adjusted OIBDA for the year ended December 31, 2022 was $1,709.9 million, with rebased Adjusted OIBDA at $1,612.2 million after adjustments[84] - Annualized Adjusted OIBDA for the last two quarters of 2023 was $1,720.6 million, with a consolidated leverage ratio of 4.8x[88] - Operating income for the three months ended September 30, 2023 was $162.7 million, contributing to an annualized operating income of $596.2 million[88][90] - Adjusted OIBDA for C&W borrowing group increased to $288.2 million in Q4 2023, up from $275.0 million in Q4 2022, with a full-year increase to $1,086.3 million from $1,000.0 million[93] - Proportionate Adjusted OIBDA for C&W borrowing group rose to $239.2 million in Q4 2023, compared to $231.7 million in Q4 2022, with a full-year increase to $916.7 million from $852.4 million[93] - Liberty Puerto Rico's Adjusted OIBDA decreased to $103.9 million in Q4 2023 from $117.6 million in Q4 2022, with a full-year decrease to $485.5 million from $530.8 million[94] - Liberty Costa Rica's Adjusted OIBDA increased to CRC 30.8 billion in Q4 2023 from CRC 22.1 billion in Q4 2022, with a full-year increase to CRC 110.2 billion from CRC 87.2 billion[94] Debt and Financial Obligations - Total debt and finance lease obligations stood at $8,247.7 million as of December 31, 2023, with cash and cash equivalents of $996.6 million[20] - Consolidated gross leverage ratio increased to 4.8x in Q4 2023, up from 4.6x in Q3 2023[20] - Unused borrowing capacity was $869.0 million as of December 31, 2023, slightly down from $887.0 million in Q3 2023[20] - Cash amount includes restricted cash used as collateral for lines of credit to expand and improve the fixed network in Puerto Rico[22] - C&W's total third-party debt as of December 31, 2023, was $4.1 billion, with a Fully-swapped Borrowing Cost of 5.5% and an average debt tenor of 4.1 years[37] - Liberty Puerto Rico's total debt and finance lease obligations as of December 31, 2023, were $2.7 billion, with a Fully-swapped Borrowing Cost of 6.2% and an average debt tenor of 4.6 years[39][40] - Liberty Costa Rica's total debt and finance lease obligations as of December 31, 2023, were CRC 235.7 billion, with a Fully-swapped Borrowing Cost of 10.9% and an average debt tenor of 7.0 years[42][43] - Liberty Costa Rica's Covenant Consolidated Net Leverage Ratio was 1.9x, with maximum undrawn commitments of $60 million as of December 31, 2023[44] - Total debt and finance lease obligations as of December 31, 2023 were $8,179.9 million, with net debt at $7,251.1 million[88] Revenue and ARPU Metrics - C&W Caribbean ARPU per customer relationship increased by 1% to $49.66 in Q4 2023[24] - Liberty Costa Rica mobile ARPU rose by 3% to $6.74 in Q4 2023[25] - C&W Borrowing Group revenue for Q4 2023 was $660.6 million, a 1% decline year-over-year[34] - Full-year 2023 revenue for C&W Borrowing Group grew by 4% to $2,543.2 million[34] - Liberty Puerto Rico's revenue for Q4 2023 decreased by 5% to $353.5 million, with Adjusted OIBDA declining by 12% to $103.9 million[38] - Liberty Costa Rica's revenue for Q4 2023 increased by 11% to CRC 79.2 billion, with Adjusted OIBDA growing by 39% to CRC 30.8 billion[41] - C&W Caribbean segment reported revenue of $367.3 million, with rebased revenue at $366.6 million after foreign currency adjustments[81][87] - Liberty Costa Rica segment showed a 28% increase in reported revenue to $116.7 million, with rebased revenue at $135.4 million[81] - C&W borrowing group's rebased revenue for Q4 2022 was $670.0 million, with a reported percentage change of -1% and a rebased percentage change of -1%[95] - Liberty Costa Rica's rebased revenue for Q4 2022 was CRC 72.0 billion, with a reported percentage change of 11% and a rebased percentage change of 10%[101] - ARPU (Average Revenue Per Unit) is calculated based on subscription revenue, excluding interconnect, mobile handset sales, and late fees[49] Capital Expenditures and Investments - Property & equipment additions in Q4 2023 totaled $206.6 million, a decrease from $225.2 million in Q4 2022, with C&W Caribbean accounting for $61.3 million[19] - Property & equipment additions for C&W Borrowing Group decreased by 7% to $106.1 million in Q4 2023[34] - Repurchased $300 million in equity and convertible notes during the year[1] Integration and Operational Updates - Puerto Rico integration >80% complete; >800,000 mobile subscribers migrated[1] - Claro Panamá acquisition contributed $64.3 million to rebased revenue adjustments for 2022[79] - VTR deconsolidation resulted in a $450.6 million reduction in rebased revenue for 2022[79] - Liberty Costa Rica segment's B2B acquisition in January 2023 had minimal impact on financial results[80] - Revenue for the three months ended December 31, 2022 was $1,159.2 million, with rebased revenue at $1,178.6 million after adjustments[81] - Adjusted OIBDA for the three months ended December 31, 2022 was $402.6 million, increasing to $408.4 million after rebase adjustments[83] - C&W Caribbean's residential fixed revenue was $128.2 million, with a 2% reported percentage change[87] - Liberty Networks segment reported a 23% decrease in Adjusted OIBDA to $79.7 million for the three months ended December 31, 2022[83] - C&W borrowing group's rebased Adjusted OIBDA for Q4 2022 was $274.2 million, with a reported percentage change of 5% and a rebased percentage change of 5%[97] - Liberty Costa Rica's rebased Adjusted OIBDA for Q4 2022 was CRC 22.6 billion, with a reported percentage change of 39% and a rebased percentage change of 36%[100]
Liberty Latin America(LILAK) - 2023 Q4 - Annual Results