Liberty Latin America(LILA) - 2024 Q4 - Annual Results

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]