Financial Performance - 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]. - 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, indicating a decline of $25.9 million[164]. - The net loss for the three months ended March 31, 2024, was $0.5 million, a significant improvement compared to a net loss of $68.1 million in 2023[220]. - The company reported a decline in Adjusted OIBDA primarily due to organic changes in revenue and operating costs[165]. Subscriber Metrics - 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]. - The average number of RGUs for residential fixed services increased, contributing to a $1.6 million rise in subscription revenue for C&W Caribbean[172]. - The average number of RGUs in C&W Caribbean increased, contributing to a $1.6 million rise in residential fixed subscription revenue[172]. - The average number of RGUs decreased by $1.4 million, contributing to a decline in residential fixed subscription revenue[178]. Revenue Changes by Segment - C&W Caribbean's revenue increased by $10.4 million to $364.2 million in Q1 2024, driven by a $2.0 million rise 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, with B2B revenue increasing by $5.8 million, offset by a $3.2 million decline in residential mobile service revenue[173]. - Liberty Puerto Rico's 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]. - Liberty Networks reported revenue of $108.5 million, a slight decrease of $0.2 million, with enterprise revenue increasing by $4.7 million but wholesale revenue declining by $4.9 million[175]. Cost and Expense Analysis - 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 rose to $247.8 million for the three months ended March 31, 2024, from $234.6 million in the same period of 2023, an increase of $13.2 million[161]. - Personnel and contract labor costs rose to $47.3 million in Q1 2024, up from $41.2 million in Q1 2023, marking a $6.1 million increase[201]. - Service-related costs surged significantly from $15.9 million in Q1 2023 to $38.4 million in Q1 2024, an increase of $22.5 million[201]. 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]. - Cash and cash equivalents totaled $668.5 million as of March 31, 2024, with $577.9 million held by borrowing groups[223]. - 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, an increase 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]. Market and Operational Challenges - The company faces inflationary pressures and foreign currency exchange risks that could impact operating margins if cost increases cannot be passed on to subscribers[159]. - The company is subject to various risks, including changes in consumer preferences, competitive pressures, and regulatory challenges that could affect future performance[151]. - Competition in all markets continues to adversely impact the ability to increase or maintain RGUs and ARPU[168]. - The company faced challenges from tightening credit markets and potential adverse impacts on cash flows and liquidity due to increased competition and economic conditions[235].
Liberty Latin America(LILAK) - 2024 Q1 - Quarterly Report