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

Executive Summary & Company Overview Overall Performance Summary (CEO Comments) Liberty Latin America achieved sustained growth in fixed-line and postpaid mobile subscribers in Q2 and H1 2025, benefiting from cost-cutting measures and strong adjusted OIBDA growth. The company plans to spin off Liberty Puerto Rico to unlock shareholder value, anticipating continued growth and cash flow from remaining operations - Sustained growth in fixed-line and postpaid mobile subscribers in Q2 and H1 2025, with over 100,000 new subscribers in H1[3] - LLA achieved 7% and 8% year-over-year rebased adjusted OIBDA growth in Q2 and H1 respectively, primarily driven by cost reductions[3] - Liberty Puerto Rico's business began to stabilize, achieving 21% year-over-year rebased adjusted OIBDA growth[3] - The company plans to spin off Liberty Puerto Rico to unlock shareholder value, potentially through a spin-off[3] Company Profile 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, alongside enterprise-grade connectivity, data center, and hosting solutions. The company also operates an extensive subsea and terrestrial fiber optic network connecting over 30 markets in the region - Liberty Latin America operates in over 20 countries across Latin America and the Caribbean, providing digital video, broadband internet, telephony, and mobile services[40] - The company serves residential and business customers, offering enterprise-grade connectivity, data center, hosting, and managed solutions[40] - Operates subsea and terrestrial fiber optic cable networks connecting over 30 markets in the region[40] Consolidated Financial & Operating Highlights Key Financial Metrics In Q2 and H1 2025, Liberty Latin America's revenue and operating income (loss) decreased year-over-year, but adjusted OIBDA saw significant growth, reflecting improved cost efficiency. Capital expenditures decreased, while adjusted free cash flow remained negative 2025 Q2 and H1 Key Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change | YoY Rebased Change | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change | YoY Rebased Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 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%) | | | Adjusted FCF | $(41) | $(18) | | | $(174) | $(168) | | | Operating Income (Loss) & Adjusted OIBDA The company recorded operating losses in Q2 and H1 2025, primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible assets. However, adjusted OIBDA grew by 7% and 8% during the same periods, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, along with ongoing cost efficiencies - Operating losses in Q2 and H1 2025 were $(333) million and $(205) million respectively, primarily due to a $494 million impairment of Liberty Puerto Rico's spectrum license intangible assets[22] - Adjusted OIBDA grew by 7% and 8% in Q2 and H1 2025 respectively, driven by growth in Liberty Caribbean, Liberty Puerto Rico, and C&W Panama, along with ongoing cost efficiencies[23] 2025 Q2 and H1 Adjusted OIBDA (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change | YoY Rebased Change | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change | YoY 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% | | | Net Loss Attributable to Shareholders Net loss attributable to shareholders significantly increased in Q2 and H1 2025, reaching $(423) million and $(560) million respectively, compared to $(43) million in the same periods last year - Net loss attributable to shareholders in Q2 and H1 2025 was $(423) million and $(560) million respectively, compared to $(43) million in the corresponding periods of 2024[25] Segment-Specific Business Highlights Liberty Caribbean Liberty Caribbean achieved record quarterly adjusted OIBDA performance, strong postpaid mobile subscriber growth, and a 480 basis point increase in adjusted OIBDA margin to 47% through cost reductions - Liberty Caribbean achieved record quarterly adjusted OIBDA performance[9] - Strong postpaid mobile subscriber growth; selective price increases in fixed-line services[9] - Adjusted OIBDA margin increased by 480 basis points year-over-year to 47%, driven by strong cost reductions[9] C&W Panama C&W Panama demonstrated strong mobile business performance with continued growth in postpaid mobile and broadband subscribers. However, year-over-year growth was impacted by a high comparative base in B2B business from the prior year, with better B2B performance expected in the second half - C&W Panama's mobile business demonstrated strong performance[9] - Continued growth in postpaid mobile and broadband subscribers[9] - Year-over-year growth impacted by a high B2B business base, with better performance expected in the second half[9] Liberty Networks Liberty Networks' revenue and adjusted OIBDA grew sequentially but were negatively impacted year-over-year by accelerated non-cash IRU recognition. The company is investing in subsea cable systems to support future recurring revenue - Liberty Networks' revenue and adjusted OIBDA grew sequentially[9] - Year-over-year revenue and adjusted OIBDA were negatively impacted by accelerated non-cash IRU recognition[9] - Investing in subsea cable systems to support future recurring revenue[9] Liberty Puerto Rico Liberty Puerto Rico's mobile business stabilized, and fixed-line revenue remained flat sequentially. Postpaid mobile churn showed a positive trend, with CVP launch planned for July to support growth. The company is aggressively cutting operating costs and capital expenditures - Liberty Puerto Rico's mobile business stabilized, with fixed-line revenue flat sequentially[9] - Postpaid mobile churn showed a positive trend; CVP launch planned for July to support growth[9] - Aggressively cutting operating costs and capital expenditures[9] Liberty Costa Rica Liberty Costa Rica's strong mobile business performance offset competitive challenges in its fixed-line segment. Mobile revenue growth was driven by the ongoing migration of prepaid to postpaid subscribers, while the fixed-line subscriber base remained stable - Liberty Costa Rica's mobile business was strong, offsetting competitive challenges in fixed-line services[9] - Mobile revenue growth driven by the ongoing migration of prepaid to postpaid subscribers[9] - Fixed-line subscriber base remained stable[9] Detailed Financial Performance Revenue Performance In Q2 and H1 2025, consolidated revenue decreased by 3% and 2% year-over-year respectively, primarily due to reduced revenue across all segments except Liberty Costa Rica. Segment revenue performance varied, with C&W Panama and Liberty Puerto Rico experiencing significant B2B revenue declines due to high prior-year comparables and project delays 2025 Q2 and H1 Revenue by Segment (USD, millions) | Segment | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change (%) | YoY Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY Change (%) | YoY 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) | - Liberty Caribbean mobile residential revenue grew by 5% (6% rebased), driven by price increases in Jamaica and postpaid subscriber growth; fixed-line residential revenue decreased by 2% (1% rebased), impacted by Hurricane Beryl[15][17] - C&W Panama mobile residential revenue grew by 6%, benefiting from postpaid subscriber growth and equipment sales; B2B revenue decreased by 30% due to exceptionally strong project revenue in the prior year and project approval delays[17] - Liberty Puerto Rico residential fixed-line revenue decreased by 1% as subscriber reductions offset price increases; residential mobile revenue decreased by 3% rebased, impacted by fewer postpaid subscribers; B2B revenue decreased by 18%[17] - Liberty Costa Rica revenue grew by 3% (1% rebased), primarily driven by mobile revenue growth (postpaid subscribers and equipment sales) and increased fixed-line non-subscription revenue[18] Adjusted OIBDA Performance by Segment Adjusted OIBDA performance varied across segments, with Liberty Caribbean and Liberty Puerto Rico achieving significant growth, primarily due to improved cost efficiencies and reduced operating expenses. C&W Panama also grew, while growth in Liberty Networks and Liberty Costa Rica was offset by specific factors - Liberty Caribbean adjusted OIBDA grew by 11% year-over-year and rebased, with margin improving by 480 basis points to 47%, primarily due to lower equipment costs, tax assessment impacts, and network and commercial expense efficiencies[21][24] - C&W Panama adjusted OIBDA grew by 6% year-over-year and rebased, with margin expanding by 580 basis points to 39%, mainly due to reduced low-margin project revenue and lower operating expenses[26] - Liberty Networks adjusted OIBDA decreased by 4% year-over-year and 3% rebased, primarily impacted by reduced non-cash IRU revenue[26] - Liberty Puerto Rico adjusted OIBDA grew by 22% year-over-year and 21% rebased, benefiting from lower bad debt expense, the phasing out of AT&T transition service agreement costs, and reduced employee and marketing costs[26] - Liberty Costa Rica adjusted OIBDA grew by 1% year-over-year and was flat rebased, as revenue growth was offset by increased handset and bad debt expenses[26] Capital Expenditures In Q2 and H1 2025, the company's property and equipment additions decreased by 16% and 14% year-over-year respectively, with a corresponding decrease as a percentage of revenue. Investments across segments were adjusted in areas such as customer premises equipment, new build and upgrade, capacity, and baseline maintenance 2025 Q2 and H1 Property & Equipment Additions (USD, millions) | Category | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | 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 & Enablement | $8.6 | $11.7 | $13.9 | $19.9 | | Total Property & Equipment Additions | $150.2 | $179.6 | $270.5 | $314.5 | | As % of Revenue | 13.8% | 16.1% | 12.5% | 14.2% | - Property and equipment additions decreased by 16% and 14% year-over-year in Q2 and H1 2025 respectively[5] - Homes built and upgraded decreased in both Q2 and H1, totaling 62,200 and 137,500 respectively[28] Operating Performance Net of Capital Additions In Q2 and H1 2025, operating income (loss) and adjusted OIBDA net of property and equipment additions both decreased, primarily due to the impairment of Liberty Puerto Rico's spectrum license intangible assets. However, adjusted OIBDA less property and equipment additions still grew by 26% and 23% at the consolidated level - Operating income (loss) net of property and equipment additions in Q2 and H1 2025 was $(483) million and $(475) million respectively, primarily impacted by the impairment of Liberty Puerto Rico's spectrum license intangible assets[29] 2025 Q2 and H1 Adjusted OIBDA Less Property & Equipment Additions (USD, millions) | Segment | Q2 2025 (USD millions) | Q2 2024 (USD millions) | YoY Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | YoY 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 | $264.8 | $209.5 | 26 | $551.1 | $448.8 | 23 | Average Revenue Per User (ARPU) In Q2 2025, residential fixed-line ARPU and mobile ARPU both increased for Liberty Caribbean and Liberty Puerto Rico, while fixed-line ARPU decreased for C&W Panama and Liberty Costa Rica, and mobile ARPU remained stable or slightly increased 2025 Q2 Residential Fixed-Line ARPU (USD) | Segment | Q2 2025 (USD) | Q1 2025 (USD) | Sequential Change (%) | FX-Neutral Change (%) | | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $50.84 | $50.71 | — | 1 | | C&W Panama | $37.25 | $37.92 | (2) | (2) | | Liberty Puerto Rico | $78.63 | $77.02 | 2 | 2 | | Liberty Costa Rica | $39.07 | $40.96 | (5) | (4) | | Cable & Wireless Borrowing Group | $47.47 | $47.58 | — | — | 2025 Q2 Residential Mobile ARPU (USD) | Segment | Q2 2025 (USD) | Q1 2025 (USD) | Sequential Change (%) | FX-Neutral Change (%) | | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $15.62 | $15.19 | 3 | 3 | | C&W Panama | $12.15 | $12.13 | — | — | | Liberty Puerto Rico | $36.72 | $36.22 | 1 | 1 | | Liberty Costa Rica | $11.35 | $11.39 | — | — | | Cable & Wireless Borrowing Group | $13.87 | $13.66 | 2 | 2 | Debt, Leverage & Liquidity Consolidated Debt & Cash Equivalents As of June 30, 2025, Liberty Latin America's total consolidated debt and finance lease obligations amounted to $8,232.5 million, with cash and cash equivalents totaling $527.4 million June 30, 2025 Consolidated Debt, Finance Lease Obligations & Cash (USD, millions) | Category | Debt (USD millions) | Finance Lease Obligations (USD millions) | Debt & Finance Lease Obligations (USD millions) | Cash, Cash Equivalents & Restricted Cash (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Liberty Latin America | $2.0 | — | $2.0 | $50.5 | | C&W | $4,994.0 | — | $4,994.0 | $429.3 | | Liberty Puerto Rico | $2,747.4 | $4.1 | $2,751.5 | $35.1 | | Liberty Costa Rica | $485.0 | — | $485.0 | $12.5 | | Total | $8,228.4 | $4.1 | $8,232.5 | $527.4 | Consolidated Leverage & Liquidity Ratios As of June 30, 2025, the company's consolidated gross leverage ratio was 5.0x, and consolidated net leverage ratio was 4.7x. The weighted average debt tenor was 4.9 years, with a fully swapped borrowing cost of 6.5%. The company had $724.9 million in undrawn borrowing capacity June 30, 2025 Consolidated Leverage & Liquidity Information | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Consolidated Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (20.1)x | 16.1x | | Consolidated Net Debt & 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 Cost | 6.5% | 6.5% | | Undrawn Borrowing Capacity (USD millions) | $724.9 | $768.2 | Subscriber Information Operating Highlights (Overall) In Q2 2025, the company's total subscribers slightly decreased, but fixed-line RGU and postpaid mobile subscribers achieved organic growth, while organic internet subscriber growth slowed 2025 Q2 Operating Highlights | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Subscribers | 1,904,600 | 1,907,200 | | Organic Subscriber Additions (Losses) | (2,600) | 1,300 | | Fixed-Line 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 Subscriber Losses | (84,900) | (16,800) | | Organic Postpaid Additions | 25,600 | 36,400 | Consolidated Operating Data (Detailed) As of June 30, 2025, the company reported 1,904,600 total subscribers, 3,979,400 total fixed-line RGUs, and 6,643,600 total mobile subscribers. Liberty Caribbean and C&W Panama were key contributors to mobile subscribers, while Liberty Costa Rica showed strong mobile subscriber performance June 30, 2025 Consolidated Operating Data | Segment | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total RGUs | Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | 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, the company experienced net losses in total customer relationships and total mobile subscribers, primarily due to historical database cleanup adjustments in Liberty Puerto Rico and prepaid mobile subscriber churn in Liberty Caribbean. However, fixed-line RGUs and postpaid mobile subscribers still achieved organic growth 2025 Q2 Subscriber Variance (vs Q1) | Segment | Homes Passed | Customer Relationships | Video RGUs | Internet RGUs | Telephony RGUs | Total RGUs | Prepaid Mobile Subscribers | Postpaid Mobile Subscribers | 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 Adjustment (Liberty Puerto Rico) | — | (31,300) | (7,100) | (29,900) | (9,000) | (46,000) | — | — | — | | Net Additions (Losses) | 25,400 | (33,900) | (3,900) | (28,200) | 3,600 | (28,500) | (110,500) | 25,600 | (84,900) | - Liberty Puerto Rico experienced a significant decrease in customer relationships and RGUs due to historical database cleanup adjustments[51] Borrowing Group Financials Cable & Wireless Borrowing Group The C&W Borrowing Group saw a slight revenue decrease in Q2 and H1 2025, but operating profit and adjusted OIBDA both achieved significant growth, with improved margins. As of June 30, 2025, the group's total third-party debt was $4.994 billion, net debt was $4.5 billion, and it had $584 million in undrawn borrowing capacity 2025 Q2 and H1 C&W Borrowing Group Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | Change (%) | Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $635.8 | $662.3 | (4) | (3) | $1,264.6 | $1,282.6 | (1) | (1) | | Operating Profit | $138.8 | $98.0 | 42 | | $262.3 | $178.4 | 47 | | | Adjusted OIBDA | $303.1 | $284.4 | 7 | 7 | $599.0 | $551.1 | 9 | 9 | | Adjusted OIBDA as % of Revenue | 47.7% | 42.9% | | | 47.4% | 43.0% | | | - As of June 30, 2025, the C&W Borrowing Group's total third-party debt was $4.994 billion, and net debt was $4.5 billion[44] - The C&W Borrowing Group's covenant proportionate net leverage ratio was 3.9x, fully swapped borrowing cost was 6.3%, and average debt tenor was approximately 6.0 years[44] - As of June 30, 2025, the C&W Borrowing Group had $584 million in undrawn borrowing capacity[44] Liberty Puerto Rico Borrowing Group The Liberty Puerto Rico Borrowing Group experienced a revenue decrease in Q2 and H1 2025, but adjusted OIBDA achieved significant growth with improved margins. However, operating loss substantially increased. As of June 30, 2025, the group's total debt and finance lease obligations were $2.7515 billion, net debt was $2.7021 billion, and it had $116 million in undrawn borrowing capacity 2025 Q2 and H1 Liberty Puerto Rico Borrowing Group Financial Data (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | Change (%) | Rebased Change (%) | H1 2025 (USD millions) | H1 2024 (USD millions) | 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 | | Adjusted OIBDA as % of Revenue | 28.9% | 23.0% | | | 28.1% | 22.1% | | | - As of June 30, 2025, the Liberty Puerto Rico Borrowing Group's total debt and finance lease obligations were $2.7515 billion, and net debt was $2.7021 billion[47] - LPR's covenant consolidated net leverage ratio was 7.9x, fully swapped borrowing cost was 6.2%, and average debt tenor was approximately 3.0 years[47] - As of June 30, 2025, LPR had $116 million in undrawn borrowing capacity[47] Liberty Costa Rica Borrowing Group The Liberty Costa Rica Borrowing Group achieved revenue growth in Q2 and H1 2025, but operating profit and adjusted OIBDA slightly decreased or remained flat. As of June 30, 2025, the group's total debt was CRC 24.52 billion (approximately $485 million), net debt was CRC 23.32 billion (approximately $461 million), and it had $25 million in undrawn borrowing capacity 2025 Q2 and H1 Liberty Costa Rica Borrowing Group Financial Data (CRC, billions) | Metric | Q2 2025 (CRC billions) | Q2 2024 (CRC billions) | Change (%) | H1 2025 (CRC billions) | H1 2024 (CRC billions) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 76.7 | 75.6 | 1 | 156.5 | 153.9 | 2 | | Operating Profit | 12.9 | 14.2 | (9) | 28.6 | 31.6 | (9) | | Adjusted OIBDA | 27.4 | 27.4 | — | 57.1 | 57.4 | (1) | | Adjusted OIBDA as % of Revenue | 35.7% | 36.2% | | 36.5% | 37.3% | | - As of June 30, 2025, the Liberty Costa Rica Borrowing Group's total debt was CRC 24.52 billion (approximately $485 million), and net debt was CRC 23.32 billion (approximately $461 million)[49] - LCR's covenant consolidated net leverage ratio was 2.1x, fully swapped borrowing cost was 10.7%, and average debt tenor was approximately 5.1 years[49] - As of June 30, 2025, LCR had $25 million in undrawn borrowing capacity[49] Legal & Non-GAAP Information Forward-Looking Statements and Disclaimer This press release contains forward-looking statements regarding the company's strategy, financial and operational performance, growth expectations, digital strategy, product innovation, subscriber growth, network recovery, Liberty Puerto Rico spin-off plans, balance sheet strength, and capital return policies. These statements involve risks and uncertainties that could cause actual results to differ materially from expectations, including natural disasters, competition, regulatory changes, economic factors, and M&A integration risks - Forward-looking statements cover company strategy, financial and operational performance, growth expectations, digital strategy, product innovation, and business plans[39] - Risks and uncertainties include natural disasters, political or social events, pandemics, competition, regulatory changes, economic factors, and M&A integration capabilities[39] - The company explicitly disclaims any obligation to update or revise any forward-looking statements[39] Glossary This section provides definitions for key financial and operational terms used in the report, including Adjusted OIBDA, ARPU, Customer Relationships, Fixed-Line RGUs, Mobile Subscribers, Leverage Ratios, and Property & Equipment Additions categories, ensuring consistent understanding of the report's content for investors - Defines key financial and operational terms such as Adjusted OIBDA, ARPU, Customer Relationships, Fixed-Line RGUs, Mobile Subscribers, and Leverage Ratios[53][55][58][62][64][63] - Explains the classification of property and equipment additions, including customer premises equipment, new build and upgrade, capacity, baseline, and product and enablement[69] - Provides additional general notes on SOHO customers, EBU calculations, and subscriber statistical methods[73][74][75] Non-GAAP Reconciliations This section provides reconciliations of non-GAAP financial measures used by the company, such as Adjusted OIBDA, Adjusted Free Cash Flow, Rebased Growth Rates, and Consolidated Leverage Ratios, to their most directly comparable GAAP measures, explaining why management believes these metrics are useful to investors - Provides reconciliations for non-GAAP metrics such as Adjusted OIBDA, Adjusted Free Cash Flow, Rebased Revenue and Adjusted OIBDA Growth Rates, and Consolidated Leverage Ratios[76] - Management believes these non-GAAP metrics are useful for evaluating operating performance, comparing industry performance, and allocating resources[77] Adjusted OIBDA Reconciliation Adjusted OIBDA is a primary metric used by company management to assess segment operating performance, derived by adjusting operating income (loss) for share-based compensation, depreciation and amortization, impairment, restructuring, and other operating items, aiming to provide a transparent view of operating performance unaffected by capital structure 2025 Q2 and H1 Operating Income (Loss) to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(333.0) | $110.8 | $(204.9) | $203.6 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $13.3 | $16.0 | $47.3 | $43.0 | | Depreciation & Amortization | $217.5 | $236.7 | $446.3 | $484.5 | | Impairment, Restructuring & Other Operating Items, Net | $517.2 | $25.6 | $532.9 | $32.2 | | Adjusted OIBDA | $415.0 | $389.1 | $821.6 | $763.3 | | Operating Income (Loss) Margin | (30.6)% | 9.9% | (9.4)% | 9.2% | | Adjusted OIBDA Margin | 38.2% | 34.8% | 37.9% | 34.4% | Adjusted Free Cash Flow Reconciliation Adjusted Free Cash Flow (Adjusted FCF) is a non-GAAP metric measuring the company's ability to repay debt and fund new investment opportunities, derived by adjusting cash flow from operating activities, deducting capital expenditures and finance lease principal payments, and including specific cash receipts and payments 2025 Q2 and H1 Net Cash Flow from Operating Activities to Adjusted FCF Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | $141.2 | $156.9 | $165.8 | $180.2 | | Cash Payments for Direct Acquisition & Disposal Costs | $3.6 | $2.5 | $4.0 | $3.3 | | Intercompany Financing Fees | $46.2 | $48.6 | $80.8 | $80.8 | | Capital Expenditures, Net | $(139.3) | $(140.5) | $(236.0) | $(250.2) | | Principal Payments for Vendor & Intercompany Financing | $(86.5) | $(74.3) | $(145.8) | $(152.0) | | Principal Payments for Finance Leases | $(0.3) | $(0.3) | $(0.5) | $(0.5) | | Net Repayments of Handset Receivables Securitization | $(6.2) | — | $(13.0) | $(18.4) | | 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) | Rebase Information Rebased growth rates are non-GAAP metrics used to adjust historical revenue and adjusted OIBDA to reflect the impact of acquisitions, dispositions, or transferred businesses, and are adjusted at current year average foreign exchange rates to provide an assessment of growth on a comparable basis - Rebased growth rates adjust historical revenue and adjusted OIBDA to include or exclude the impact of acquisitions, dispositions, or transferred businesses, and are adjusted at current year average foreign exchange rates[83] - Key rebase adjustments include Liberty Puerto Rico's acquisition of EchoStar spectrum and prepaid subscribers, and the closure of C&W Panama's DTH business[86] 2024 Q2 and H1 Rebased Revenue Reconciliation (USD, millions) | Segment | Q2 2024 Reported Revenue (USD millions) | Q2 2024 Rebased Revenue (USD millions) | Q2 2025 Reported Change (%) | Q2 2025 Rebased Change (%) | H1 2024 Reported Revenue (USD millions) | H1 2024 Rebased Revenue (USD millions) | H1 2025 Reported Change (%) | H1 2025 Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $368.3 | $366.5 | (1) | — | $732.5 | $729.3 | — | — | | C&W Panama | $197.2 | $196.2 | (10) | (10) | $366.4 | $364.3 | (3) | (3) | | Liberty Networks | $119.1 | $117.6 | (4) | (3) | $227.6 | $224.8 | (1) | — | | Liberty Puerto Rico | $308.6 | $318.0 | (2) | (5) | $635.8 | $654.7 | (6) | (8) | | Liberty Costa Rica | $147.2 | $149.3 | 3 | 1 | $299.5 | $304.3 | 3 | 2 | | Corporate | $5.9 | $5.9 | (36) | (36) | $11.0 | $11.0 | (30) | (30) | | Eliminations | $(28.3) | $(28.2) | N.M. | N.M. | $(55.4) | $(55.3) | N.M. | N.M. | | Total | $1,118.0 | $1,125.3 | (3) | (3) | $2,217.4 | $2,233.1 | (2) | (3) | 2024 Q2 and H1 Rebased Adjusted OIBDA Reconciliation (USD, millions) | Segment | Q2 2024 Reported OIBDA (USD millions) | Q2 2024 Rebased OIBDA (USD millions) | Q2 2025 Reported Change (%) | Q2 2025 Rebased Change (%) | H1 2024 Reported OIBDA (USD millions) | H1 2024 Rebased OIBDA (USD millions) | H1 2025 Reported Change (%) | H1 2025 Rebased Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Liberty Caribbean | $157.0 | $156.0 | 11 | 11 | $307.6 | $306.0 | 13 | 13 | | C&W Panama | $64.8 | $64.6 | 6 | 6 | $121.6 | $120.7 | 10 | 10 | | Liberty Networks | $63.1 | $62.9 | (4) | (3) | $122.3 | $121.9 | (3) | (3) | | Liberty Puerto Rico | $71.1 | $72.2 | 22 | 21 | $140.2 | $142.4 | 20 | 18 | | Liberty Costa Rica | $53.4 | $54.1 | 1 | — | $111.7 | $113.5 | 1 | (1) | | Corporate | $(20.3) | $(20.3) | (44) | (44) | $(40.1) | $(40.1) | (47) | (47) | | Total | $389.1 | $389.5 | 7 | 7 | $763.3 | $764.4 | 8 | 8 | Consolidated Leverage Ratios Reconciliation Consolidated leverage and net leverage ratios are non-GAAP metrics used to measure the company's overall debt level, comparing total debt (less cash) to annualized adjusted OIBDA for the most recent two quarters, providing a leverage assessment consistent with debt covenant calculations - Consolidated leverage and net leverage ratios are defined as the ratio of total debt (less cash) to annualized adjusted OIBDA for the most recent two quarters[98] - These ratios help investors assess the company's overall leverage and remain consistent with debt covenant calculations[98] June 30, 2025 and March 31, 2025 Consolidated Leverage Ratios Reconciliation (USD, millions) | Metric | June 30, 2025 (USD millions) | March 31, 2025 (USD millions) | | :--- | :--- | :--- | | Total Debt & Finance Lease Obligations | $8,159.9 | $8,173.0 | | Adjusted Total Debt & Finance Lease Obligations | $8,232.5 | $8,249.5 | | Net Debt & Finance Lease Obligations | $7,705.1 | $7,661.0 | | Annualized Adjusted OIBDA for Most Recent Two Quarters | $1,643.2 | $1,667.8 | | Consolidated Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (20.1)x | 16.1x | | Consolidated Net Debt & Finance Lease Obligations to Operating Income (Loss) Ratio | (18.8)x | 15.0x | | Consolidated Leverage Ratio | 5.0x | 4.9x | | Consolidated Net Leverage Ratio | 4.7x | 4.6x | Borrowing Group Reconciliations This section provides reconciliations of non-GAAP financial measures, such as Adjusted OIBDA and Proportionate Adjusted OIBDA, for the C&W, Liberty Puerto Rico, and Liberty Costa Rica Borrowing Groups, to help investors better understand the independent financial performance of each group - Borrowing Group Adjusted OIBDA is defined as operating income (loss) adjusted for share-based compensation, depreciation and amortization, related party fees and distributions, impairment, restructuring, and other operating items[102] - Proportionate Adjusted OIBDA is Adjusted OIBDA less the noncontrolling interest share[102] 2025 Q2 and H1 C&W Borrowing Group Operating Profit to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | $138.8 | $98.0 | $262.3 | $178.4 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $4.4 | $6.5 | $12.6 | $14.4 | | Depreciation & Amortization | $119.0 | $143.0 | $252.1 | $296.5 | | Related Party Fees & Distributions | $29.1 | $26.8 | $53.9 | $48.0 | | Impairment, Restructuring & Other Operating Items, Net | $11.8 | $10.1 | $18.1 | $13.8 | | Adjusted OIBDA | $303.1 | $284.4 | $599.0 | $551.1 | | Less: Noncontrolling Interest Share of Adjusted OIBDA | $51.3 | $48.3 | $100.5 | $91.8 | | Proportionate Adjusted OIBDA | $251.8 | $236.1 | $498.5 | $459.3 | 2025 Q2 and H1 Liberty Puerto Rico Borrowing Group Operating Income (Loss) to Adjusted OIBDA Reconciliation (USD, millions) | Metric | Q2 2025 (USD millions) | Q2 2024 (USD millions) | H1 2025 (USD millions) | H1 2024 (USD millions) | | :--- | :--- | :--- | :--- | :--- | | Operating Income (Loss) | $(474.8) | $(19.1) | $(471.0) | $(28.5) | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | $1.0 | $1.9 | $2.6 | $4.4 | | Depreciation & Amortization | $62.6 | $62.0 | $122.8 | $124.8 | | Related Party Fees & Distributions | $13.4 | $13.4 | $25.6 | $26.0 | | Impairment, Restructuring & Other Operating Items, Net | $484.8 | $12.9 | $488.5 | $13.5 | | Adjusted OIBDA | $87.0 | $71.1 | $168.5 | $140.2 | 2025 Q2 and H1 Liberty Costa Rica Borrowing Group Operating Profit to Adjusted OIBDA Reconciliation (CRC, billions) | Metric | Q2 2025 (CRC billions) | Q2 2024 (CRC billions) | H1 2025 (CRC billions) | H1 2024 (CRC billions) | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | 12.9 | 14.2 | 28.6 | 31.6 | | Share-Based Compensation & Other Employee Incentive Plan Related Expenses | 0.4 | 0.4 | 0.6 | 0.4 | | Depreciation & Amortization | 13.6 | 12.3 | 26.9 | 24.5 | | Related Party Fees & Distributions | 0.6 | 0.4 | 0.9 | 0.7 | | Impairment, Restructuring & Other Operating Items, Net | (0.1) | 0.1 | 0.1 | 0.2 | | Adjusted OIBDA | 27.4 | 27.4 | 57.1 | 57.4 |