Liberty Latin America(US:LILA)2025-11-05 22:04Financial Performance - Revenue for the three months ended September 30, 2025, was $1,112.5 million, an increase of $23.3 million (2.1%) from $1,089.2 million in 2024[201]. - Operating income for the three months ended September 30, 2025, was $187.5 million, a significant improvement of $567.1 million compared to an operating loss of $379.6 million in 2024[201]. - Adjusted OIBDA for the three months ended September 30, 2025, was $433.4 million, up from $403.1 million in 2024, reflecting an increase of $30.3 million (7.5%) year-over-year[205]. - For the nine months ended September 30, 2025, revenue was $3,282.7 million, a decrease of $23.9 million (0.7%) from $3,306.6 million in 2024[201]. - Operating loss for the nine months ended September 30, 2025, was $17.4 million, an improvement of $158.6 million compared to a loss of $176.0 million in 2024[201]. - Adjusted OIBDA for the nine months ended September 30, 2025, was $1,255.0 million, an increase of $88.6 million (7.6%) from $1,166.4 million in 2024[206]. Revenue Breakdown - Liberty Caribbean's total revenue for the three months ended September 30, 2025, was $368.8 million, an increase of $9.3 million or 2.6% compared to $359.5 million in 2024[212]. - For the nine months ended September 30, 2025, Liberty Caribbean's total revenue was $1,099.0 million, reflecting an increase of $7.0 million or 0.6% from $1,092.0 million in 2024[213]. - C&W Panama's total revenue for the three months ended September 30, 2025, was $199.1 million, an increase of $11.1 million or 5.9% compared to $188.0 million in 2024[216]. - Liberty Puerto Rico's revenue decreased by $10.0 million or 3.2% for the three months ended September 30, 2025, totaling $298.2 million compared to $308.2 million in 2024[212]. - Liberty Costa Rica's total revenue for the three months ended September 30, 2025, was $154.5 million, an increase of $9.0 million (6.2%) compared to $145.5 million in 2024[222]. Cost and Expenses - Programming and other direct costs of services for the three months ended September 30, 2025, were $247.6 million, an increase of $15.7 million (6.8%) from $231.9 million in 2024[201]. - Other operating costs and expenses for the three months ended September 30, 2025, decreased by $23.6 million (5.0%) to $446.5 million from $470.1 million in 2024[201]. - Impairment, restructuring, and other operating items, net, for the three months ended September 30, 2025, were $17.3 million, a decrease of $504.1 million compared to $521.4 million in 2024[201]. - Total other operating costs and expenses for the nine months ended September 30, 2025, decreased by $104.3 million to $1,377.4 million compared to the same period in 2024[242]. - Personnel and contract labor costs for the nine months ended September 30, 2025, decreased by $18.5 million to $423.0 million compared to the same period in 2024[242]. Market and Competition - The company faced significant competition across all markets, impacting its ability to maintain RGUs, ARPU, and B2B revenue[209]. - The average number of RGUs increased by 1.5 million (3-month) and 5.4 million (9-month), while ARPU decreased by $4.3 (3-month) and $14.1 (9-month) due to lower video service revenues[223]. Foreign Currency and Inflation - The company is subject to inflationary pressures and foreign currency exchange risks that could impact operating margins[199]. - Changes in foreign currency exchange rates may significantly affect the company's operating results, particularly in Liberty Costa Rica and certain entities within C&W[197]. - For the three months ended September 30, 2025, the company recognized foreign currency transaction losses of $8.8 million, compared to losses of $7.6 million in the same period of 2024[268]. Acquisitions and Investments - The acquisition of EchoStar's prepaid business and spectrum assets in Puerto Rico and USVI involved an aggregate cash consideration of $256 million, payable in four annual installments[194]. - The company entered into an agreement to acquire 8.5% of the equity of Liberty Costa Rica for approximately $84 million, with 62.5% due upon closing and the remaining 37.5% due in January 2027[193]. Natural Disasters Impact - Hurricane Melissa is expected to adversely impact revenue and RGUs, Adjusted OIBDA, and long-lived asset impairments for the remainder of 2025[188]. - The company anticipates receiving net third-party proceeds related to Hurricane Melissa during the fourth quarter of 2025[189]. Debt and Liquidity - The total outstanding principal amount of debt and finance lease obligations was $8,363 million as of September 30, 2025[289]. - Cash and cash equivalents totaled $596.7 million as of September 30, 2025, with $503.4 million held by borrowing groups[280]. - The net cash used by investing activities was $417.6 million for the nine months ended September 30, 2025, compared to $513.3 million in 2024, reflecting a decrease of $95.7 million[292].