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Wall Street JournalLiberty Latin America Ltd. Quarterly Report for the Period Ended March 31, 2024
Liberty Latin America Ltd. Quarterly Report for the Period Ended March 31, 2024
Liberty Latin America Ltd. has reported a strong financial performance for the quarter ending March 31, 2024. The company’s condensed consolidated balance sheets, statements of operations, comprehensive earnings, equity, and cash flows all show significant growth compared to the same period in 2023. Management’s discussion and analysis of the financial condition and results of operations are detailed in Item 2, while legal proceedings and unregistered sales of equity securities are covered in Items 1 and 2, respectively. The company’s financial outlook remains positive, with ongoing efforts to expand operations and improve financial performance.
Overview of Liberty Latin America’s Financial Performance
Liberty Latin America is a telecommunications company that provides fixed, mobile, and subsea network services in over 20 countries across Latin America and the Caribbean.
In the first quarter of 2024, Liberty Latin America reported:
- Revenue of $1.1 billion, a slight decrease from $1.1 billion in the first quarter of 2023
- Operating income of $92.8 million, down from $106.6 million in the first quarter of 2023
- Adjusted OIBDA (a profitability measure) of $374.2 million, down from $400.1 million in the first quarter of 2023
The company saw mixed results across its different regional operations but was impacted overall by unfavorable foreign currency exchange rates.
Revenue Trends
- C&W Caribbean revenue increased by 3% organically to $364 million due to higher mobile and B2B revenue
- C&W Panama revenue increased by 2% organically to $169 million due to growth in B2B revenue
- Liberty Puerto Rico revenue decreased 10% organically to $327 million due to lower mobile revenue
- Liberty Costa Rica revenue increased 18% organically to $152 million due to higher mobile and fixed revenue
Profitability Trends
- C&W Caribbean Adjusted OIBDA margin improved from 39.6% to 41.4%
- C&W Panama Adjusted OIBDA margin improved from 26.3% to 33.6%
- Liberty Puerto Rico Adjusted OIBDA margin declined from 35.2% to 21.1%
- Liberty Costa Rica Adjusted OIBDA margin increased from 35.0% to 38.3%
Strengths
- Continued strong broadband subscriber growth across markets
- Ongoing expansion of fixed and mobile networks
- Revenue growth in key B2B markets
Weaknesses
- Pressure on video subscriber numbers
- Declines in mobile revenue and profitability in Puerto Rico market
- Negative impacts from foreign currency exchange rate fluctuations
Outlook
Liberty Latin America is focused on integrating and improving operations in Puerto Rico following the acquisition of AT&T’s wireless operations in the region. The company aims to drive broadband and B2B revenue growth and margin expansion through network upgrades and new services.
However, competitive pressures, technology shifts, and macroeconomic volatility present uncertainties going forward. Effective integration and disciplined cost management will be key.
Financial Data
| Revenue by Segment | Q1 2024 | Q1 2023 |
|---|---|---|
| C&W Caribbean | $364 million | $354 million |
| C&W Panama | $169 million | $165 million |
| Liberty Networks | $109 million | $109 million |
| Liberty Puerto Rico | $327 million | $364 million |
| Liberty Costa Rica | $152 million | $129 million |
| Adjusted OIBDA by Segment | Q1 2024 | Q1 2023 |
|---|---|---|
| C&W Caribbean | $151 million | $140 million |
| C&W Panama | $57 million | $44 million |
| Liberty Networks | $59 million | $64 million |
| Liberty Puerto Rico | $69 million | $128 million |
| Liberty Costa Rica | $58 million | $45 million |