Liberty Latin America(LILA) - 2025 Q2 - Quarterly Results

Executive Summary Q2 & H1 2025 Performance Overview Liberty Latin America achieved sustained growth in broadband and postpaid mobile subscribers in Q2 and H1 2025, adding over 100,000 subscribers in the first half. Despite rebased revenue decline due to high B2B comparables, adjusted OIBDA grew 7% and 8% year-over-year in Q2 and H1, respectively, driven by cost efficiencies - Sustained growth in broadband and postpaid mobile subscribers[2] - Liberty Caribbean, C&W Panama, and Liberty Costa Rica added approximately 45,000 organic broadband and postpaid subscribers in Q2, with over 100,000 cumulative additions in H1[3] - LLA achieved 7% and 8% rebased adjusted OIBDA growth in Q2 and H1, respectively[3] - LLA's rebased revenue year-over-year growth was impacted by higher B2B project revenue in the prior year, with B2B expected to be a growth catalyst in H2[3] Strategic Initiatives & Shareholder Value Liberty Latin America plans to spin off Liberty Puerto Rico to unlock shareholder value, ensuring a strong and sustainable capital structure for the remaining Cable & Wireless and Liberty Costa Rica businesses, which are expected to continue OIBDA growth and generate significant cash flow with lower leverage - Company plans to enhance shareholder value through the spin-off of Liberty Puerto Rico[2] - Post-spin, Cable & Wireless and Liberty Costa Rica are expected to benefit from strong investments in fixed and mobile infrastructure, delivering sustained adjusted OIBDA growth and significant cash flow, supporting an attractive capital return policy of dividends and/or share repurchases with lower leverage[3] Consolidated Financial & Operating Highlights Key Financial Metrics In Q2 2025, LLA's revenue decreased by 3%, with an operating loss of $333 million, primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset; adjusted OIBDA, however, increased 7% to $415 million. H1 revenue declined 2%, operating loss was $205 million, and adjusted OIBDA grew 8% to $822 million, while property and equipment additions decreased 16% in Q2 and 14% in H1 2025 Q2 & H1 Key Financial Data (USD in millions) | Metric (USD in millions) | Q2 2025 | Q2 2024 | YoY Increase / (Decline) | YoY Rebased Increase / (Decline) | H1 2025 | H1 2024 | YoY Increase / (Decline) | YoY Rebased Increase / (Decline) | | :----------------------- | :------ | :------ | :----------------------- | :------------------------------- | :------ | :------ | :----------------------- | :------------------------------- | | Revenue | 1,087 | 1,118 | (3%) | (3%) | 2,170 | 2,217 | (2%) | (3%) | | Operating income (loss) | (333) | 111 | (401%) | | (205) | 204 | (201%) | | | Adjusted OIBDA | 415 | 389 | 7% | 7% | 822 | 763 | 8% | 8% | | Property & equipment additions | 150 | 180 | (16%) | | 271 | 315 | (14%) | | - Operating loss in Q2 and H1 2025 primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset[22] Key Operating Metrics In Q2 2025, LLA experienced a net organic customer loss of 2,600, contrasting with a gain of 1,300 in Q1; fixed RGUs increased by 17,500, but mobile subscribers saw an organic loss of 84,900, mainly from prepaid users, despite 25,600 new postpaid additions 2025 Q2 & Q1 Operating Highlights | Operating Highlights | Q2 2025 | Q1 2025 | | :------------------- | :------ | :------ | | Total customers | 1,904,600 | 1,907,200 | | Organic customer additions (losses) | (2,600) | 1,300 | | Fixed RGUs | 3,979,400 | 3,961,900 | | Organic RGU additions | 17,500 | 19,100 | | Organic internet additions | 1,700 | 6,600 | | Mobile subscribers | 6,643,600 | 6,728,500 | | Organic mobile losses | (84,900) | (16,800) | | Organic postpaid additions | 25,600 | 36,400 | Segment Performance Analysis Revenue Highlights by Segment Consolidated revenue for Q2 and H1 2025 decreased by 3% and 2% respectively, primarily due to reduced revenue across all segments except Liberty Costa Rica, with B2B revenue significantly impacted by high prior-year project revenue and current project approval delays 2025 Q2 & H1 Revenue by Segment (USD in millions) | Segment (USD in millions) | Q2 2025 | Q2 2024 | Reported % Change | Rebased % Change | H1 2025 | H1 2024 | Reported % Change | Rebased % Change | | :------------------------ | :------ | :------ | :---------------- | :--------------- | :------ | :------ | :---------------- | :--------------- | | Liberty Caribbean | 366.3 | 368.3 | (1) | — | 730.2 | 732.5 | — | — | | C&W Panama | 177.3 | 197.2 | (10) | (10) | 354.3 | 366.4 | (3) | (3) | | Liberty Networks | 114.6 | 119.1 | (4) | (3) | 225.0 | 227.6 | (1) | — | | Liberty Puerto Rico | 301.3 | 308.6 | (2) | (5) | 599.7 | 635.8 | (6) | (8) | | Liberty Costa Rica | 151.3 | 147.2 | 3 | 1 | 309.5 | 299.5 | 3 | 2 | | Corporate | 3.8 | 5.9 | (36) | (36) | 7.7 | 11.0 | (30) | (30) | | Eliminations | (27.9) | (28.3) | N.M. | N.M. | (56.2) | (55.4) | N.M. | N.M. | | Total | 1,086.7 | 1,118.0 | (3) | (3) | 2,170.2 | 2,217.4 | (2) | (3) | - Reported revenue for Q2 and H1 2025 decreased, primarily due to reduced revenue across all segments except Liberty Costa Rica[15] Liberty Caribbean Liberty Caribbean's rebased revenue remained flat year-over-year, with mobile residential revenue growing 6% due to higher prepaid ARPU and new postpaid subscribers, while fixed residential revenue declined 1% impacted by Hurricane Beryl and reduced non-subscription revenue, and B2B revenue decreased 3% due to high prior-year project revenue - Liberty Caribbean's rebased revenue remained flat year-over-year[15] - Mobile residential revenue increased 5% (reported) and 6% (rebased) year-over-year, driven by higher prepaid ARPU in Jamaica following price increases and 41,000 new organic postpaid subscribers over the past 12 months[15] - Fixed residential revenue decreased 2% (reported) and 1% (rebased) year-over-year, primarily due to lower volumes impacted by Hurricane Beryl in Q3 2024 and reduced non-subscription revenue, partially offset by ARPU growth[17] C&W Panama C&W Panama's rebased revenue decreased 10% year-over-year, with mobile residential revenue growing 6% due to new postpaid subscribers and equipment sales, despite national protests affecting prepaid business, while fixed residential revenue grew 2% driven by broadband RGU additions and churn management, and B2B revenue declined 30% due to exceptionally strong prior-year project revenue and current project approval delays - C&W Panama's rebased revenue decreased 10% year-over-year[17] - Mobile residential revenue increased 6% (reported and rebased) year-over-year, a combined effect of 26,000 new organic postpaid subscribers over the past 12 months, increased equipment sales, and the negative impact of national protests on the prepaid business[17] - B2B revenue decreased 30% (reported and rebased) year-over-year, primarily reflecting exceptionally strong project revenue in the prior year and reduced contributions from project approval delays this year[17] Liberty Networks Liberty Networks' rebased revenue decreased 3% year-over-year, primarily due to reduced wholesale revenue from accelerated recognition of non-cash IRU revenue in the prior year, partially offset by new leased capacity sales, while enterprise IT-as-a-service and connectivity revenue growth was offset by reduced project-related revenue - Liberty Networks' rebased revenue decreased 3% year-over-year, primarily due to reduced wholesale revenue from accelerated recognition of non-cash IRU revenue in the prior year, partially offset by new leased capacity sales[17] Liberty Puerto Rico Liberty Puerto Rico's rebased revenue decreased 5% year-over-year, with residential fixed revenue declining 1% as ARPU growth from a February 2025 price increase was offset by a shrinking subscriber base, including the impact of the ACP program ending, and residential mobile revenue decreasing 3% due to postpaid mobile subscriber losses from migration disruptions, while B2B revenue fell 18% due to a smaller subscriber base and lower mobile ARPU, though sequential revenue grew 1% driven by residential and roaming revenue - Liberty Puerto Rico's rebased revenue decreased 5% year-over-year[17] - Residential fixed revenue decreased 1% year-over-year on a rebased basis, primarily due to higher ARPU from price increases implemented in February 2025 being offset by a shrinking subscriber base, including the impact of the ACP program ending[17] - Residential mobile revenue decreased 3% year-over-year on a rebased basis, primarily due to postpaid mobile subscriber losses from migration disruptions[17] - Puerto Rico revenue increased 1% sequentially, driven by residential revenue growth, including increased roaming revenue, partially offset by lower FCC and B2B revenue[16] Liberty Costa Rica Liberty Costa Rica's rebased revenue increased 1% year-over-year, driven by mobile revenue growth from postpaid subscriber additions and increased mobile equipment sales, along with higher fixed non-subscription revenue, offsetting headwinds in residential fixed subscription ARPU - Liberty Costa Rica's rebased revenue increased 1% year-over-year, primarily driven by mobile revenue growth from postpaid subscriber additions and increased mobile equipment sales, along with higher fixed non-subscription revenue, offsetting headwinds in residential fixed subscription ARPU[18] Adjusted OIBDA Highlights by Segment Consolidated rebased adjusted OIBDA for Q2 and H1 2025 grew 7% and 8% year-over-year respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, alongside ongoing cost efficiency improvements 2025 Q2 & H1 Adjusted OIBDA by Segment (USD in millions) | Segment (USD in millions) | Q2 2025 | Q2 2024 | Reported % Change | Rebased % Change | H1 2025 | H1 2024 | Reported % Change | Rebased % Change | | :------------------------ | :------ | :------ | :---------------- | :--------------- | :------ | :------ | :---------------- | :--------------- | | Liberty Caribbean | 173.8 | 157.0 | 11 | 11 | 347.1 | 307.6 | 13 | 13 | | C&W Panama | 68.6 | 64.8 | 6 | 6 | 133.2 | 121.6 | 10 | 10 | | Liberty Networks | 60.8 | 63.1 | (4) | (3) | 118.7 | 122.3 | (3) | (3) | | Liberty Puerto Rico | 87.0 | 71.1 | 22 | 21 | 168.5 | 140.2 | 20 | 18 | | Liberty Costa Rica | 54.0 | 53.4 | 1 | — | 112.9 | 111.7 | 1 | (1) | | Corporate | (29.2) | (20.3) | (44) | (44) | (58.8) | (40.1) | (47) | (47) | | Total | 415.0 | 389.1 | 7 | 7 | 821.6 | 763.3 | 8 | 8 | | Adjusted OIBDA margin | 38.2 % | 34.8 % | | | 37.9 % | 34.4 % | | | - Reported adjusted OIBDA for Q2 and H1 2025 increased 7% and 8%, respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama[23] Liberty Caribbean Liberty Caribbean's rebased adjusted OIBDA grew 11% year-over-year, with its adjusted OIBDA margin improving 480 basis points to 47%, primarily due to lower equipment costs, a prior-year tax assessment, and ongoing cost efficiencies in network and commercial expenses - Liberty Caribbean's rebased adjusted OIBDA grew 11% year-over-year[21] - Adjusted OIBDA margin improved 480 basis points to 47% year-over-year, reflecting lower equipment costs, a prior-year tax assessment, and ongoing cost efficiencies in network and commercial expenses[21][24] C&W Panama C&W Panama's rebased adjusted OIBDA grew 6% year-over-year, with its margin expanding 580 basis points to 39%, primarily due to reduced low-margin project revenue and lower operating expenses - C&W Panama's rebased adjusted OIBDA grew 6%, with its margin expanding 580 basis points to 39%, primarily due to reduced low-margin project revenue and lower operating expenses[26] Liberty Networks Liberty Networks' rebased adjusted OIBDA decreased 3% year-over-year, primarily due to reduced non-cash IRU revenue, partially offset by lower bad debt expense - Liberty Networks' rebased adjusted OIBDA decreased 3% year-over-year, primarily due to reduced non-cash IRU revenue, partially offset by lower bad debt expense[26] Liberty Puerto Rico Liberty Puerto Rico's rebased adjusted OIBDA grew 21% year-over-year despite rebased revenue decline, driven by lower bad debt expense, the phasing out of upfront costs related to the AT&T transition services agreement, and reduced employee and marketing costs, while sequentially, adjusted OIBDA grew 7% - Liberty Puerto Rico's rebased adjusted OIBDA grew 21% year-over-year, primarily due to lower bad debt expense, the phasing out of upfront costs related to the AT&T transition services agreement, and reduced employee and marketing costs[26] - Adjusted OIBDA increased 7% sequentially, driven by revenue growth and a reduction in full-time employees following workforce restructuring, along with lower professional services costs[26] Liberty Costa Rica Liberty Costa Rica's rebased adjusted OIBDA remained flat year-over-year, as revenue growth was offset by increased handset and bad debt expenses - Liberty Costa Rica's rebased adjusted OIBDA remained flat year-over-year, as revenue growth was offset by increased handset and bad debt expenses[26] Capital Expenditures & Cash Flow Property & Equipment Additions In Q2 2025, total property and equipment additions decreased 16% to $150.2 million, and 14% to $270.5 million for H1, with additions as a percentage of revenue falling from 16% to 14% in Q2 and 14% to 12% in H1, and new build and upgraded homes significantly declining in both periods Property & Equipment Additions (USD in millions) | Property & Equipment Additions (USD in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------------------- | :------ | :------ | :------ | :------ | | Customer Premises Equipment | 38.1 | 46.0 | 81.0 | 87.3 | | New Build & Upgrade | 20.9 | 43.7 | 39.9 | 67.7 | | Capacity | 23.8 | 26.1 | 44.0 | 49.6 | | Baseline | 58.8 | 52.1 | 91.7 | 90.0 | | Product & Enablers | 8.6 | 11.7 | 13.9 | 19.9 | | Total Property & equipment additions | 150.2 | 179.6 | 270.5 | 314.5 | | Property & equipment additions as % of revenue | 13.8 % | 16.1 % | 12.5 % | 14.2 % | New Build and Homes Upgraded | New Build and Homes Upgraded | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--------------------------- | :------ | :------ | :------ | :------ | | Liberty Caribbean | 14,100 | 41,400 | 36,300 | 63,800 | | C&W Panama | 17,200 | 13,100 | 39,500 | 30,400 | | Liberty Puerto Rico | 900 | 15,600 | 1,700 | 29,400 | | Liberty Costa Rica | 30,000 | 23,800 | 60,000 | 42,900 | | Total | 62,200 | 93,900 | 137,500 | 166,500 | Operating Income (Loss) less P&E Additions Operating income (loss) less property and equipment additions significantly declined to $(483) million in Q2 2025 and $(475) million in H1 2025, primarily due to the $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset - Operating income (loss) less property and equipment additions decreased to $(483) million in Q2 2025 and $(475) million in H1 2025, primarily due to the impairment of Liberty Puerto Rico's spectrum license intangible asset[29] Adjusted OIBDA less P&E Additions Adjusted OIBDA less property and equipment additions increased 26% to $264.8 million in Q2 2025 and 23% to $551.1 million in H1 2025, indicating improved operational efficiency relative to capital expenditures Adjusted OIBDA less P&E Additions (USD in millions) | Adjusted OIBDA less P&E Additions (USD in millions) | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :-------------------------------------------------- | :------ | :------ | :------- | :------ | :------ | :------- | | Liberty Caribbean | 125.8 | 101.9 | 23 | 261.6 | 208.2 | 26 | | C&W Panama | 48.0 | 33.4 | 44 | 97.9 | 73.6 | 33 | | Liberty Networks | 40.7 | 48.5 | (16) | 80.2 | 95.9 | (16) | | Liberty Puerto Rico | 49.5 | 22.2 | 123 | 102.4 | 50.3 | 104 | | Liberty Costa Rica | 36.7 | 32.5 | 13 | 80.4 | 79.7 | 1 | | Liberty Latin America (Consolidated) | 264.8 | 209.5 | 26 | 551.1 | 448.8 | 23 | Adjusted Free Cash Flow Adjusted Free Cash Flow (FCF) remained negative in Q2 and H1 2025, with net outflows of $(41.3) million and $(173.8) million respectively, showing a slight increase in outflows compared to prior periods Adjusted Free Cash Flow (USD in millions) | Metric (USD in millions) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------- | :------ | :------ | :------ | :------ | | Net cash provided by operating activities | 141.2 | 156.9 | 165.8 | 180.2 | | Capital expenditures, net | (139.3) | (140.5) | (236.0) | (250.2) | | Adjusted FCF before distributions to noncontrolling interest owners | (41.3) | (7.1) | (144.7) | (156.8) | | Distributions to noncontrolling interest owners | — | (10.7) | (29.1) | (10.7) | | Adjusted FCF | (41.3) | (17.8) | (173.8) | (167.5) | Debt, Leverage & Liquidity Consolidated Debt and Cash Position As of June 30, 2025, Liberty Latin America reported total debt and finance lease obligations of $8.2325 billion, with cash and cash equivalents totaling $527.4 million June 30, 2025 Debt and Cash Position (USD in millions) | Metric (USD in millions) | June 30, 2025 | | :----------------------- | :------------ | | Debt | 8,228.4 | | Finance lease obligations | 4.1 | | Total Debt and finance lease obligations | 8,232.5 | | Cash, cash equivalents and restricted cash related to debt | 527.4 | Consolidated Leverage Ratios As of June 30, 2025, the consolidated gross leverage ratio slightly increased to 5.0x, and the net leverage ratio rose to 4.7x, while unused borrowing capacity decreased from $768.2 million to $724.9 million Consolidated Leverage and Liquidity Information | Consolidated Leverage and Liquidity Information | June 30, 2025 | March 31, 2025 | | :---------------------------------------------- | :------------ | :------------- | | Consolidated debt and finance lease obligations to operating income (loss) ratio | (20.1)x | 16.1x | | Consolidated net debt and finance lease obligations to operating income (loss) ratio | (18.8)x | 15.0x | | Consolidated gross leverage ratio | 5.0x | 4.9x | | Consolidated net leverage ratio | 4.7x | 4.6x | | Weighted average debt tenor | 4.9 years | 5.1 years | | Fully-swapped borrowing costs | 6.5% | 6.5% | | Unused borrowing capacity (in millions) | $724.9 | $768.2 | Average Revenue Per User (ARPU) In Q2 2025, residential fixed ARPU showed mixed performance across segments, with Liberty Puerto Rico seeing a 2% FX-neutral increase, while C&W Panama and Liberty Costa Rica experienced declines; residential mobile ARPU generally increased or remained stable, with Liberty Caribbean showing a 3% FX-neutral growth Residential Fixed ARPU per Customer Relationship | Residential Fixed ARPU per Customer Relationship | June 30, 2025 | March 31, 2025 | FX-Neutral % Change | | :----------------------------------------------- | :------------ | :------------- | :------------------ | | Liberty Caribbean | $50.84 | $50.71 | 1% | | C&W Panama | $37.25 | $37.92 | (2%) | | Liberty Puerto Rico | $78.63 | $77.02 | 2% | | Liberty Costa Rica | $39.07 | $40.96 | (4%) | | Cable & Wireless Borrowing Group | $47.47 | $47.58 | —% | Residential Mobile ARPU | Residential Mobile ARPU | June 30, 2025 | March 31, 2025 | FX-Neutral % Change | | :---------------------- | :------------ | :------------- | :------------------ | | Liberty Caribbean | $15.62 | $15.19 | 3% | | C&W Panama | $12.15 | $12.13 | —% | | Liberty Puerto Rico | $36.72 | $36.22 | 1% | | Liberty Costa Rica | $11.35 | $11.39 | —% | | Cable & Wireless Borrowing Group | $13.87 | $13.66 | 2% | Subscriber Information Total Subscribers by Segment As of June 30, 2025, Liberty Latin America reported 1,904,600 total customer relationships, 3,979,400 fixed RGUs, and 6,643,600 total mobile subscribers, with Liberty Costa Rica having the most mobile subscribers (2,130,000) and Liberty Caribbean the most fixed RGUs (1,693,300) June 30, 2025 Operating Data | Operating Data — June 30, 2025 | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total Fixed RGUs | Prepaid Mobile | Postpaid Mobile | Total Mobile Subscribers | | :----------------------------- | :----------- | :--------------------- | :--------- | :------------ | :------------- | :--------------- | :------------- | :-------------- | :----------------------- | | Liberty Caribbean | 1,765,300 | 810,200 | 323,400 | 756,200 | 613,700 | 1,693,300 | 1,493,600 | 376,400 | 1,870,000 | | C&W Panama | 979,600 | 270,700 | 172,400 | 264,500 | 251,100 | 688,000 | 1,507,400 | 433,900 | 1,941,300 | | Liberty Puerto Rico | 1,193,000 | 530,700 | 218,800 | 504,700 | 283,300 | 1,006,800 | 180,600 | 521,700 | 702,300 | | Liberty Costa Rica | 858,000 | 293,000 | 203,600 | 281,900 | 105,800 | 591,300 | 1,063,800 | 1,066,200 | 2,130,000 | | Total | 4,795,900 | 1,904,600 | 918,200 | 1,807,300 | 1,253,900 | 3,979,400 | 4,245,400 | 2,398,200 | 6,643,600 | Quarterly Subscriber Variance In Q2 2025, LLA's total organic customer relationships decreased by 2,600, and mobile subscribers by 84,900; fixed RGUs increased by 17,500, primarily from C&W Panama and Liberty Costa Rica, while mobile losses were mainly due to prepaid reductions in Liberty Caribbean and C&W Panama, partially offset by postpaid gains in Liberty Costa Rica June 30, 2025 vs March 31, 2025 Fixed and Mobile Subscriber Variance | Fixed and Mobile Subscriber Variance Table — June 30, 2025 vs March 31, 2025 | Homes Passed | Fixed-line Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total Fixed RGUs | Prepaid Mobile | Postpaid Mobile | Total Mobile Subscribers | | :------------------------------------------------------------------------- | :----------- | :-------------------------------- | :--------- | :------------ | :------------- | :--------------- | :------------- | :-------------- | :----------------------- | | Liberty Caribbean | 1,500 | (1,300) | (4,400) | 700 | 100 | (3,600) | (85,700) | 12,000 | (73,700) | | C&W Panama | 13,200 | 6,500 | 8,100 | 6,700 | 6,100 | 20,900 | (21,400) | 6,600 | (14,800) | | Liberty Puerto Rico | 600 | (8,100) | (2,600) | (6,600) | 2,300 | (6,900) | (5,500) | (9,900) | (15,400) | | Liberty Costa Rica | 10,100 | 300 | 2,100 | 900 | 4,100 | 7,100 | 2,100 | 16,900 | 19,000 | | Total Organic Change | 25,400 | (2,600) | 3,200 | 1,700 | 12,600 | 17,500 | (110,500) | 25,600 | (84,900) | - Q2 2025 adjustments include historical database clean-up, with no impact on consolidated financial statements[51] Borrowing Group Specific Information Cable & Wireless Borrowing Group The C&W Borrowing Group's rebased revenue decreased 3% in Q2 and 1% in H1 2025; adjusted OIBDA, however, grew 7% rebased in Q2 and 9% in H1, with its margin improving to 47.7% in Q2, while total third-party debt was $4.994 billion and the covenant net leverage ratio was 3.9x as of June 30, 2025 C&W Borrowing Group Financials (USD in millions) | C&W Borrowing Group Financials (USD in millions) | Q2 2025 | Q2 2024 | Reported Change | Rebased Change | H1 2025 | H1 2024 | Reported Change | Rebased Change | | :----------------------------------------------- | :------ | :------ | :-------------- | :------------- | :------ | :------ | :-------------- | :------------- | | Revenue | 635.8 | 662.3 | (4%) | (3%) | 1,264.6 | 1,282.6 | (1%) | (1%) | | Operating income | 138.8 | 98.0 | 42% | | 262.3 | 178.4 | 47% | | | Adjusted OIBDA | 303.1 | 284.4 | 7% | 7% | 599.0 | 551.1 | 9% | 9% | | Property & equipment additions | 88.7 | 101.1 | (12%) | | 159.3 | 173.8 | (8%) | | | Adjusted OIBDA as a percentage of revenue | 47.7 % | 42.9 % | | | 47.4 % | 43.0 % | | | - As of June 30, 2025, C&W's total third-party net debt and proportionate net debt were $4.5 billion and $4.2 billion, respectively, with fully-swapped borrowing costs of 6.3% and a weighted average debt tenor of approximately 6.0 years[44] - C&W's covenant proportionate net leverage ratio was 3.9x[44] Liberty Puerto Rico Borrowing Group The Liberty Puerto Rico Borrowing Group's rebased revenue decreased 5% in Q2 and 8% in H1 2025, with operating loss significantly increasing due to a $494 million impairment; however, adjusted OIBDA grew 21% rebased in Q2 and 18% in H1, with its margin improving to 28.9% in Q2, while total debt and finance lease obligations were $2.7515 billion and the covenant consolidated net leverage ratio was 7.9x as of June 30, 2025 LPR Borrowing Group Financials (USD in millions) | LPR Borrowing Group Financials (USD in millions) | Q2 2025 | Q2 2024 | Reported Change | Rebased Change | H1 2025 | H1 2024 | Reported Change | Rebased Change | | :----------------------------------------------- | :------ | :------ | :-------------- | :------------- | :------ | :------ | :-------------- | :------------- | | Revenue | 301.3 | 308.6 | (2)% | (5)% | 599.7 | 635.8 | (6)% | (8)% | | Operating loss | (474.8) | (19.1) | N.M. | | (471.0) | (28.5) | N.M. | | | Adjusted OIBDA | 87.0 | 71.1 | 22 % | 21 % | 168.5 | 140.2 | 20 % | 18 % | | Property & equipment additions | 37.5 | 48.9 | (23)% | | 66.1 | 89.9 | (26)% | | | Adjusted OIBDA as a percentage of revenue | 28.9 % | 23.0 % | | | 28.1 % | 22.1 % | | | - Operating loss primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible asset[22] - LPR's covenant consolidated net leverage ratio was 7.9x[47] Liberty Costa Rica Borrowing Group The Liberty Costa Rica Borrowing Group's revenue increased 1% in Q2 and 2% in H1 (in Costa Rican Colón), while operating income declined 9% in both periods; adjusted OIBDA remained flat in Q2 and decreased 1% in H1, while total debt was 245.2 billion Costa Rican Colón and the covenant consolidated net leverage ratio was 2.1x as of June 30, 2025 LCR Borrowing Group Financials (CRC in billions) | LCR Borrowing Group Financials (CRC in billions) | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :----------------------------------------------- | :------ | :------ | :----- | :------ | :------ | :----- | | Revenue | 76.7 | 75.6 | 1% | 156.5 | 153.9 | 2% | | Operating income | 12.9 | 14.2 | (9%) | 28.6 | 31.6 | (9%) | | Adjusted OIBDA | 27.4 | 27.4 | —% | 57.1 | 57.4 | (1%) | | Property & equipment additions | 8.8 | 10.7 | (18%) | 16.5 | 16.4 | 1% | | Adjusted OIBDA as a percentage of revenue | 35.7 % | 36.2 % | | 36.5 % | 37.3 % | | - As of June 30, 2025, fully-swapped borrowing costs were 10.7% and the weighted average debt tenor was approximately 5.1 years[49] - LCR's covenant consolidated net leverage ratio was 2.1x[49] Company Information & Disclaimers Forward-Looking Statements This section outlines forward-looking statements in the press release, including expectations for strategic, financial, and operational performance, subscriber growth, and the Liberty Puerto Rico spin-off plan, detailing inherent risks and uncertainties such as natural disasters, competition, regulatory changes, and economic factors that could cause actual results to differ materially - This press release contains forward-looking statements regarding the company's strategy, financial and operational performance, growth expectations, digital strategy, product innovation, business plans, subscriber growth, regional connectivity needs, Puerto Rico business recovery, and the planned spin-off of Liberty Puerto Rico[39] - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including natural disasters, political or social events, pandemics, competition, technological changes, legal and regulatory changes, economic factors, ability to integrate acquisitions, regulatory approvals, programming content availability, ability to achieve financial targets, litigation outcomes, ability to access operating company cash, capital availability, currency and interest rate fluctuations, supplier capabilities, and network planning requirements[39] About Liberty Latin America Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean, offering digital video, broadband internet, telephony, and mobile services, also managing an undersea and terrestrial fiber optic cable network connecting over 30 markets in the region, and has three classes of common shares traded on Nasdaq and OTC Link - Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean, with brands including BTC, Flow, Liberty, and Más Móvil[40] - The company provides digital video, broadband internet, telephony, and mobile services to residential and business customers, as well as enterprise-grade connectivity, data center, hosting, and managed solutions IT services[40] - Liberty Latin America operates an undersea and terrestrial fiber optic cable network connecting over 30 markets in the region[40] - The company has three classes of common shares traded on the Nasdaq Global Select Market (LILA and LILAK) and OTC Link (LILAB)[41] Non-GAAP Reconciliations & Glossary Non-GAAP Financial Measures This section defines and reconciles various non-GAAP financial measures used by Liberty Latin America, including Adjusted OIBDA, Adjusted OIBDA Margin, Adjusted Free Cash Flow, Rebased Growth Rates, and Consolidated Leverage Ratios, emphasizing their use by management to assess operational performance, allocate resources, and compare with industry peers as supplementary to GAAP metrics - This press release includes non-GAAP measures such as Adjusted OIBDA, Adjusted OIBDA Margin, Adjusted Free Cash Flow, Rebased Revenue and Adjusted OIBDA Growth Rates, and Consolidated Leverage Ratios[76] - Adjusted OIBDA is the primary measure used by the company's chief operating decision maker to assess segment operating performance and a key factor in internal decision-making for resource allocation[77] - Adjusted Free Cash Flow can be used to measure the company's ability to service debt and fund new investment opportunities[81] - Rebased growth rates are non-GAAP measures used to adjust historical revenue and Adjusted OIBDA to reflect the impact of acquisitions, dispositions, or transfers of operations, allowing for growth rate assessment on a comparable basis[83] Glossary of Terms This section defines key financial and operational terms used in the report, such as Adjusted OIBDA, ARPU, Customer Relationships, Homes Passed, RGU, Mobile Subscribers, and various Property and Equipment Additions categories, clarifying their calculation and application - Adjusted OIBDA: Operating income (loss) before share-based compensation expense, depreciation and amortization, provisions for significant litigation, impairment, restructuring, and other operating items[53] - ARPU: Average Revenue Per User, referring to average monthly subscription revenue per customer relationship or mobile subscriber[55] - RGU (Revenue Generating Unit): Refers to a video RGU, internet RGU, or telephony RGU, where a residential or commercial unit may contain one or more RGUs[68] - Mobile Subscribers: Refers to the number of active SIM cards, not the number of services provided[64]