Liberty Latin America (LILA) Q1 2025 earnings summary

Executive summary

• Achieved over 44,000 broadband and postpaid mobile net additions in Q1 2025, with fixed-mobile convergence penetration exceeding 30% in key markets and strong growth in Costa Rica and the Caribbean.

• Adjusted OIBDA increased 8–9% year-over-year to $407 million, with margin improvements and double-digit growth in C&W Caribbean and Panama.

• Operating income rose 38% year-over-year to $128 million, reflecting lower costs and depreciation.

• Net loss attributable to shareholders was $136 million, up from $1 million in Q1 2024, driven by higher non-operating expenses and derivative losses.

• Puerto Rico's slower-than-expected recovery led to the withdrawal of mid-term (2024–2026) guidance, despite strong performance elsewhere.

Financial highlights

• Q1 2025 revenue was $1.084 billion, down 1–2% year-over-year, with non-Puerto Rico operations growing and Puerto Rico declining.

• Adjusted OIBDA margin improved to 37.5%, up from 34% in Q1 2024; Adjusted OIBDA less P&E additions margin rose to 17%.

• Adjusted FCF before partner distributions was -$103 million, impacted by seasonal working capital.

• Property & equipment additions were $120 million, 11% of revenue, down from 12% last year.

• Net loss increased due to $62.9 million in derivative losses and $14.4 million in debt extinguishment costs.

Outlook and guidance

• Expecting meaningful growth in Adjusted OIBDA and Adjusted FCF before distributions in 2025, excluding Puerto Rico.

• Capital intensity anticipated to decline further, with continued focus on cost efficiencies.

• Guidance for Puerto Rico and group mid-term outlook withdrawn due to slower recovery; aggressive cost reduction and efficiency plans underway.

• Costa Rica JV with Tigo expected to close in H2 2025, with integration activities ongoing.