Liberty Latin America(US:LILA)2024-05-07 21:00Revenue and Subscribers - As of March 31, 2024, the company served 3,978,100 RGUs, including 1,823,200 broadband internet subscribers, 1,219,200 fixed-line telephony subscribers, and 935,700 video subscribers, along with 7,907,400 mobile subscribers[155]. - For the three months ended March 31, 2024, total revenue was $1,099.4 million, a decrease of $2.1 million compared to $1,101.5 million in the same period of 2023[161]. - C&W Caribbean's revenue increased by $10.4 million to $364.2 million in Q1 2024, driven by a $2.0 million increase in residential fixed subscription revenue and a $5.5 million increase in residential mobile service revenue[171]. - C&W Panama's revenue rose by $3.9 million to $169.2 million, primarily due to a $5.8 million increase in B2B revenue, despite a $3.2 million decrease in residential mobile service revenue[173]. - Liberty Puerto Rico's total revenue decreased by $36.3 million to $327.2 million, primarily due to a decline in residential fixed services[171]. - Liberty Costa Rica's total revenue increased by $23.1 million, or 18%, from $129.2 million in Q1 2023 to $152.3 million in Q1 2024[178]. Operating Income and Adjusted OIBDA - Operating income for the three months ended March 31, 2024, was $92.8 million, down from $106.6 million in the same period of 2023, reflecting a decrease of $13.8 million[161]. - Consolidated Adjusted OIBDA for the three months ended March 31, 2024, was $374.2 million, compared to $400.1 million in the same period of 2023[164]. - Adjusted OIBDA for the three months ended March 31, 2024, was $374.2 million, compared to $400.1 million for the same period in 2023, reflecting a decrease of $25.9 million[165]. - Adjusted OIBDA margin for C&W Caribbean improved to 41.4% in Q1 2024 from 39.6% in Q1 2023, while C&W Panama's margin increased to 33.6% from 26.3%[166]. Costs and Expenses - Programming and other direct costs of services amounted to $240.2 million for the three months ended March 31, 2024, down from $246.5 million in the same period of 2023[161]. - Other operating costs and expenses increased to $512.0 million for the three months ended March 31, 2024, compared to $484.1 million in the same period of 2023, reflecting an increase of $27.9 million[161]. - Depreciation and amortization expenses were $247.8 million for the three months ended March 31, 2024, compared to $234.6 million in the same period of 2023, an increase of $13.2 million[161]. - Personnel and contract labor costs rose by $9.6 million, from $147.1 million in Q1 2023 to $156.7 million in Q1 2024, reflecting an organic increase of $7.8 million[194]. - Service-related costs surged by $21.1 million, increasing from $51.6 million in Q1 2023 to $72.7 million in Q1 2024, with an organic increase of $20.4 million[194]. Foreign Exchange and Inflation - The company is subject to inflationary pressures and foreign currency exchange risks, which may impact operating margins if cost increases cannot be passed on to subscribers[159]. - The impact of foreign exchange (FX) on total revenue was a decrease of $15.8 million, with specific segments experiencing varying FX impacts[171]. - Foreign currency transaction gains for the three months ended March 31, 2024, totaled $23.3 million, down from $49.2 million in 2023[213]. Debt and Cash Flow - The outstanding principal amount of the company's debt was $8,116 million as of March 31, 2024, with a weighted average interest rate of 7.1%[232][234]. - Net cash provided by operating activities decreased to $23.3 million in Q1 2024 from $62.4 million in Q1 2023, a decline of $39.1 million[236]. - Net cash used by financing activities increased significantly to $225.7 million in Q1 2024 from $35.4 million in Q1 2023, a change of $190.3 million[240]. - The company expects to maintain significant levels of interest expense due to its strategy of keeping debt at levels that provide attractive equity returns[221]. Net Loss and Gains - For the three months ended March 31, 2024, the company reported a net loss of $0.5 million, a significant improvement compared to a net loss of $68.1 million in the same period of 2023[220]. - The company recognized realized and unrealized gains on derivative instruments of $46.4 million for the three months ended March 31, 2024, compared to losses of $59.1 million in 2023[211]. - Impairment charges decreased significantly from $21.2 million in Q1 2023 to $1.9 million in Q1 2024[207]. Capital Expenditures - Capital expenditures, net, were reported at $109.7 million for Q1 2024, down from $114.1 million in Q1 2023, representing 12.3% of revenue compared to 13.1% in the prior year[239]. - Property and equipment additions decreased to $134.9 million in Q1 2024 from $144.7 million in Q1 2023, indicating reduced capital investment[239].