Subscriber Metrics - As of September 30, 2023, the company served 3,898,000 RGUs, including 1,785,500 broadband internet subscribers, 1,178,800 fixed-line telephony subscribers, and 933,700 video subscribers[186]. - The company reported a total of 8,033,000 mobile subscribers as of September 30, 2023[186]. Acquisitions and Joint Ventures - The company completed the acquisition of América Móvil's operations in Panama in July 2022, impacting the financial results for the nine-month comparison[189]. - The formation of the Chile JV in October 2022 resulted in the disposal of the Chile JV Entities, affecting the comparability of operating results[187]. Financial Performance - Revenue for the three months ended September 30, 2023, was $1,125.8 million, a decrease of $95.0 million (approximately 7.8%) from $1,220.8 million in the same period of 2022[195]. - Operating income for the nine months ended September 30, 2023, was $404.7 million, a significant increase of $425.1 million compared to a loss of $20.4 million in the same period of 2022[198]. - Consolidated Adjusted OIBDA for the three months ended September 30, 2023, was $428.4 million, up from $413.8 million in the same period of 2022, reflecting an increase of $14.6 million (approximately 3.5%)[198]. - The company experienced organic revenue changes contributing to the overall performance, with a noted decrease of $450.6 million (approximately 12.3%) in revenue for the nine months ended September 30, 2023, compared to the previous year[195]. Operating Costs and Expenses - Operating costs and expenses for the three months ended September 30, 2023, totaled $963.1 million, a decrease of $106.0 million (approximately 9.9%) from $1,069.1 million in the same period of 2022[195]. - Programming and other direct costs of services for the nine months ended September 30, 2023, were $740.2 million, down $163.1 million (approximately 18.1%) from $903.3 million in the same period of 2022[198]. - The company reported a decrease in other operating costs and expenses for the three months ended September 30, 2023, totaling $462.4 million, down $66.3 million (approximately 12.5%) from $528.7 million in the same period of 2022[195]. Adjusted OIBDA - Adjusted OIBDA for the three months ended September 30, 2023, was $428.4 million, compared to $413.8 million for the same period in 2022, reflecting an increase of 3.4%[200]. - For the nine months ended September 30, 2023, Adjusted OIBDA was $1,269.7 million, a decrease from $1,307.3 million in 2022, representing a decline of 2.9%[200]. - The Adjusted OIBDA Margin for C&W Caribbean improved to 41.7% in Q3 2023 from 37.0% in Q3 2022, while Liberty Puerto Rico's margin decreased to 33.1% from 35.6%[201]. Revenue Changes by Segment - C&W Panama reported a revenue increase of 10.4% to $190.4 million in Q3 2023, compared to $172.5 million in Q3 2022[207]. - Liberty Costa Rica's revenue increased by 23.3% to $134.6 million in Q3 2023, up from $109.2 million in Q3 2022[207]. - C&W Caribbean's total revenue for the three months ended September 30, 2023, was $360.5 million, a slight increase of $1.4 million compared to $359.1 million in 2022[209]. Cost Management - The company aims to improve operating performance through strategic resource allocation based on Adjusted OIBDA metrics, which are crucial for internal decision-making[196]. - The organic decrease in programming and copyright costs is attributed to lower average subscribers and renegotiated content agreements[235]. - Total other operating costs and expenses for the three months ended September 30, 2023, decreased to $462.4 million from $528.7 million in 2022, a reduction of $66.3 million or approximately 12.5%[244]. Cash Flow and Debt - The total cash and cash equivalents as of September 30, 2023, amounted to $571.6 million, with $452.9 million held by borrowing groups[284]. - The outstanding principal amount of the company's debt, including finance lease obligations, was $7,988 million as of September 30, 2023[293]. - Net cash provided by operating activities for the nine months ended September 30, 2023, was $506.5 million, an increase of $14.7 million compared to $491.8 million in 2022[296]. Competition and Market Challenges - The company experienced significant competition across all markets, adversely impacting the ability to maintain RGUs and ARPU[203]. - The company is subject to inflationary pressures and foreign currency exchange risks, which could affect operating margins if costs cannot be passed on to subscribers[193]. Share-Based Compensation - Share-based compensation expense for the three months ended September 30, 2023, was $24.1 million, an increase from $20.8 million in the same period of 2022[198]. - Share-based compensation expense increased by $1.2 million (100%) to $2.4 million for the three months ended September 30, 2023, compared to $1.2 million in 2022[255].
Liberty Latin America(LILAK) - 2023 Q3 - Quarterly Report