Liberty Latin America(LILA) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue reached $1,113 million, a 2% increase year-over-year, while YTD revenue was $3,283 million, a 1% decline[8] - Operating income improved significantly to $188 million from a loss of $380 million in Q3 2024, marking a 149% increase[8] - Adjusted OIBDA for Q3 2025 was $433 million, reflecting an 8% increase year-over-year, with a margin of 39%[8] - Adjusted Free Cash Flow (Adjusted FCF) for Q3 2025 was $16 million, down from $65 million in Q3 2024[8] - Net income attributable to shareholders was $3 million for Q3 2025, compared to a loss of $436 million in Q3 2024[21] - Operating income for the same period was $152.5 million, reflecting a significant 62% increase compared to $94.4 million in the prior year[39] - Adjusted OIBDA for Q3 2025 was $309.4 million, up 8% from $286.5 million in Q3 2024[39] - Operating income for the three months ended September 30, 2025, was $187.5 million, compared to a loss of $379.6 million in the same period of 2024[75] Revenue Growth - Liberty Caribbean reported a 3% revenue growth in Q3, driven by a 5% increase in fixed residential revenue and a 2% increase in residential mobile and B2B revenue[13] - C&W Panama achieved a 6% revenue growth in Q3, primarily due to a 14% increase in B2B revenue from large enterprise and government projects[13] - Liberty Networks experienced a 6% revenue growth in Q3, supported by expansion in wholesale and enterprise businesses, particularly in subsea capacity revenue[13] - Liberty Puerto Rico's revenue declined by 3% year-over-year, attributed to a 7% decrease in residential mobile and a 16% decline in B2B revenue[13] - Liberty Costa Rica's revenue grew by 6% on a reported basis, driven by higher residential mobile revenue from postpaid subscriber growth[14] - For the three months ended September 30, 2025, Liberty Latin America reported revenue of $661.8 million, a 4% increase from $636.5 million in the same period of 2024[39] Adjusted OIBDA - Adjusted OIBDA for Q3 2025 increased by 8% to $433.4 million compared to $403.1 million in Q3 2024, with a margin of 39.0%[16] - Liberty Caribbean's Adjusted OIBDA rose by 9% to $172.5 million, supported by improved operating costs from efficiency programs[17] - C&W Panama's Adjusted OIBDA increased by 5% to $71.8 million, driven by B2B project revenue and network efficiencies[22] - Liberty Puerto Rico's Adjusted OIBDA grew by 8% to $95.5 million, despite a rebased revenue decline, due to aggressive cost-out programs[22] - Liberty Costa Rica's Adjusted OIBDA increased by 11% to $56.4 million, with stable costs contributing to strong performance[22] - The proportionate adjusted OIBDA for Liberty Latin America was $258 million for Q3 2025[40] Debt and Financial Obligations - Total debt and finance lease obligations amounted to $8.36 billion as of September 30, 2025, with a gross leverage ratio of 4.9x[28] - The company has an unused borrowing capacity of $912.8 million, indicating available liquidity for future investments[28] - As of September 30, 2025, the total third-party debt was $4.9 billion, with a net carrying amount of $4.5 billion after accounting for cash and cash equivalents[40] - The Covenant Proportionate Net Leverage Ratio was reported at 3.7x, calculated based on the last two quarters of Covenant EBITDA[40] - Liberty Puerto Rico's total debt and finance lease obligations amounted to $2,944.3 million, an increase from $2,751.5 million as of June 30, 2025[43] - The average tenor of Liberty Puerto Rico's debt was approximately 3.0 years as of September 30, 2025, with a fully-swapped borrowing cost of 6.9%[44] Capital Expenditures - Capital expenditures for Q3 2025 totaled $122.2 million, representing 13.4% of revenue, down from 15.7% in Q3 2024[24] - The company’s capital expenditures for property and equipment additions were $149.3 million for the three months ended September 30, 2025, compared to $170.7 million for the same period in 2024[75] Subscriber Metrics - Liberty Caribbean's total subscriber base reached 4,812,600 as of September 30, 2025, with a total of 1,874,100 mobile subscribers[47] - Liberty Puerto Rico experienced a net loss of 11,700 RGUs in the quarter ended September 30, 2025, compared to the previous quarter[48] - The number of Revenue Generating Units (RGUs) includes video, internet, and telephony services, with specific counts reflecting unique premises and excluding mobile-only customers[64] - The company has a total of 1.2 million Fixed Customer Relationships with a postpaid product, representing a penetration rate of 30% of total Fixed Customer Relationships[55] Future Outlook - The company anticipates adverse impacts from Hurricane Melissa on Q4 2025 financial results, with expected proceeds from a weather derivative to aid recovery efforts[6] - The company anticipates continued demand for connectivity in the region and is focused on digital strategy and product innovation[35]