Liberty Latin America (LILA) Q4 2024 earnings summary

Executive summary

• Achieved nearly 100,000 fixed and mobile subscriber net adds in 2024, with strong growth in C&W Caribbean, Panama, and Costa Rica; Puerto Rico faced operational challenges but is set for recovery in 2025.

• Upgraded or passed approximately 400,000 homes with FTTH, making 97% of the network gigabit-ready by year-end 2024.

• Successfully refinanced $3.3 billion of C&W debt, extending maturities to 2032 and beyond and improving liquidity.

• Focused on operational progress, subscriber momentum, and efficiency gains, with strategic emphasis on Adjusted OIBDA growth and capital allocation optimization for 2025.

• Puerto Rico rebuild advanced, with management prioritizing operational improvements and margin restoration in 2025.

Financial highlights

• FY 2024 revenue was $4,457 million, down 1% rebased year-over-year; Q4 revenue was $1,150 million, up 6% sequentially but down 1% year-over-year.

• FY 2024 Adjusted OIBDA reached $1.6 billion, down 6% year-over-year; Q4 Adjusted OIBDA was $427 million, up 6% sequentially but down 1% year-over-year.

• Full-year P&E additions totaled $725 million (16% of revenue), with a target to reduce to 14% in coming years.

• Adjusted FCF for FY 2024 was $116 million after $61 million in partner distributions, down from $198 million in FY 2023.

• Net leverage decreased to 4.5x, with 70% of debt due 2029 or later; total debt was $8.2 billion, cash $0.7 billion.

Outlook and guidance

• Focused on driving Adjusted OIBDA and FCF growth in 2025, with margin expansion and lower capital intensity.

• Reaffirmed three-year guidance: targeting ~$1 billion in FCF and mid- to high-single digit Adjusted EBITDA growth.

• CapEx to be reduced to 14% of revenue in 2025 and 2026, reflecting completed network upgrades.

• Puerto Rico recovery is a top priority, with operational improvements and margin restoration targeted.

• Targeting further improvement in leverage ratios and completion of the LCR transaction.