Revenue and Operating Income - Revenue for the three months ended June 30, 2024, was $1,118.0 million, a decrease of $2.2 million compared to $1,120.2 million in 2023, with an organic decrease of $10.1 million [148]. - Revenue for the six months ended June 30, 2024, was $2,217.4 million, a decrease of $4.3 million compared to $2,221.7 million in 2023, with an organic decrease of $28.0 million [149]. - Operating income for the three months ended June 30, 2024, was $110.8 million, down $24.6 million from $135.4 million in 2023 [148]. - Operating income for the six months ended June 30, 2024, was $203.6 million, down $38.4 million from $242.0 million in 2023 [149]. Adjusted OIBDA - Consolidated Adjusted OIBDA for Q2 2024 is $389.1 million, down from $441.2 million in Q2 2023, representing a decrease of 11.7% [153]. - Consolidated Adjusted OIBDA for the six months ended June 30, 2024, was $763.3 million, down $78.0 million or 9.3% from $841.3 million in 2023 [156]. - The Adjusted OIBDA margin for C&W Caribbean was 42.6% for the three months ended June 30, 2024, compared to 41.1% in 2023 [157]. - The Adjusted OIBDA margin for Liberty Puerto Rico decreased to 23.0% for the three months ended June 30, 2024, from 39.3% in 2023 [157]. Subscriber Metrics - As of June 30, 2024, the company served 3,997,400 RGUs, including 1,832,100 broadband internet subscribers, 1,229,500 fixed-line telephony subscribers, and 935,800 video subscribers, along with 7,912,300 mobile subscribers [140]. - The average number of RGUs for residential fixed subscription revenue increased by 1.3 for the three months ended June 30, 2024, while ARPU decreased by $2.0 [178]. - The average number of RGUs for C&W Panama increased by 2.7% for the three months and 5% for the six months ended June 30, 2024 [171]. Revenue by Segment - Liberty Puerto Rico's revenue decreased by $40.9 million or 11.7% to $308.6 million for the three months ended June 30, 2024, down from $349.5 million in 2023 [161]. - C&W Caribbean's total revenue for the three months ended June 30, 2024, was $368.3 million, an increase of $12.0 million or 3.4% compared to $356.3 million in 2023 [162]. - C&W Panama reported a revenue of $197.2 million for the three months ended June 30, 2024, reflecting an increase of $16.4 million or 9.1% from $180.8 million in 2023 [161]. - Liberty Costa Rica's total revenue increased by $12.0 million, or 9%, for the three months ended June 30, 2024, with significant growth in non-subscription revenue [181]. Costs and Expenses - Total other operating costs and expenses for Q2 2024 amounted to $499.6 million, an increase of 6.5% from $468.9 million in Q2 2023 [208]. - Total programming and other direct costs of services for the three months ended June 30, 2024, increased to $245.3 million, up from $234.6 million in 2023, representing a 4.6% increase [189]. - Personnel and contract labor costs for Q2 2024 were $143.3 million, up from $140.2 million in Q2 2023, indicating a 2.2% increase [208]. - The increase in service-related costs was primarily due to higher outsourcing and software upgrade expenses [223]. Impact of Hurricane Beryl - The company expects Hurricane Beryl to negatively impact revenue and Adjusted OIBDA by between $10 million and $20 million for the remainder of 2024 [141]. - The company anticipates incurring property and equipment additions of approximately $10 million to $20 million due to damage from Hurricane Beryl [141]. Cash Flow and Debt - For the six months ended June 30, 2024, net cash provided by operating activities was $180.2 million, a decrease of $107.8 million compared to $288.0 million in 2023 [265]. - The outstanding principal amount of debt and finance lease obligations was $8,136 million as of June 30, 2024, with $500 million classified as current [261]. - The liquidity of borrowing groups is primarily used for capital expenditures, debt service, and income tax payments, with no assurance of external funding availability [258]. - The company expects to maintain significant levels of interest expense in the foreseeable future due to its strategy of keeping debt at levels that provide attractive equity returns [252]. Competition and Market Conditions - The company faces significant competition in all markets, adversely impacting its ability to increase or maintain RGUs, ARPU, and B2B revenue [158]. - The company is subject to inflationary pressures and foreign currency exchange risks that may impact operating margins [146]. Other Financial Metrics - Net earnings for the three months ended June 30, 2024, were a loss of $36.9 million, compared to a profit of $16.1 million in 2023, reflecting a decline of $53 million [251]. - The company recognized an income tax benefit of $36 million for the three months ended June 30, 2024, compared to an expense of $30 million in 2023, marking a $66 million improvement [247]. - Foreign currency transaction losses amounted to $46.4 million for the three months ended June 30, 2024, compared to losses of $6.7 million in 2023, indicating a significant increase in losses [244].
Liberty Latin America(LILAK) - 2024 Q2 - Quarterly Report