Liberty Latin America (LILA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $1,118 million, flat year-over-year but up 2% sequentially, driven by strong performances in Panama, Costa Rica, and the Caribbean, while Puerto Rico faced post-migration challenges expected to improve in H2.

• Over 100,000 net broadband and postpaid mobile subscribers were added in Q2, more than double the prior year and 28% higher than Q1, led by Panama and Costa Rica.

• Announced agreement to combine Costa Rica operations with Tigo/Millicom, with LLA holding an 86% stake, aiming to accelerate fiber expansion and 5G rollout; expected to close H2 2025.

• Over $300 million deployed in share repurchases and convertible note redemptions YTD 2024, including 12 million shares repurchased and $140 million in convertible notes redeemed.

• Strategic M&A actions in Costa Rica and Puerto Rico, including the acquisition of DISH's Boost subscribers and spectrum, are set to drive future growth.

Financial highlights

• Q2 2024 revenue: $1,118 million (flat year-over-year); H1 2024 revenue: $2,217 million (flat year-over-year).

• Q2 2024 Adjusted OIBDA: $389 million, down 12% year-over-year; H1 2024 Adjusted OIBDA: $763 million, down 9%.

• Q2 2024 operating income: $111 million, down 18% year-over-year; H1 2024 operating income: $204 million, down 16%.

• Net loss attributable to shareholders was ($43 million) for both Q2 and H1 2024, compared to net income of $35 million in Q2 2023.

• Adjusted FCF for H1 2024 was ($168 million), compared to ($19 million) in H1 2023.

Outlook and guidance

• Expect significant financial inflection in H2 2024 as Puerto Rico recovers from migration impacts, with Adjusted OIBDA targeted to exceed $45 million per month by year-end.

• Hurricane Beryl is expected to negatively impact revenue and Adjusted OIBDA by $10–$20 million in H2 2024, primarily in Q3, with $44 million in insurance proceeds expected.

• Costa Rica and Puerto Rico transactions are expected to be catalysts for future growth, with Costa Rica JV closing in H2 2025 and DISH spectrum acquisition in 2024.

• Confident in achieving medium-term targets, maintaining positive momentum across most markets.