Liberty Latin America (LILA) Q2 2025 earnings summary

Executive summary

• Announced the planned separation of Liberty Puerto Rico to unlock shareholder value and address its unsustainable capital structure, targeting completion in H1 2026.

• Strong profitability and Adjusted OIBDA growth in H1 2025, with $2.2 billion revenue and 8% rebased Adjusted OIBDA growth, driven by residential and mobile momentum in key markets.

• Net loss of $415 million in Q2 2025 and $560 million in H1 2025, mainly due to a $494 million impairment on Puerto Rico spectrum licenses and ongoing restructuring costs.

• Management focused on profitable growth, operational efficiency, and cost reduction, with significant margin expansion and cash conversion expected in H2.

• Strategic initiatives include liability management at Liberty Puerto Rico, new customer value propositions, and infrastructure investments such as the Manta subsea cable.

Financial highlights

• Q2 2025 revenue was $1,087 million, down 3% year-over-year; residential revenue grew 1% YoY rebased.

• Adjusted OIBDA rose 7% YoY to $415 million in Q2, with margin expanding to 38.2%; Adjusted OIBDA less P&E additions increased 26% to $265 million.

• H1 2025 Adjusted OIBDA was $822 million, up 8% YoY rebased; H1 operating loss was $205 million, mainly due to the Puerto Rico impairment.

• Adjusted FCF before partner distributions was negative $41 million in Q2; H1 Adjusted FCF was $(174) million.

• Property & equipment additions were $271 million in H1 2025, 12% of revenue.

Outlook and guidance

• Expect stronger B2B revenue and cash flow in H2, with new customer value propositions and product innovation supporting residential momentum.

• Anticipate improved free cash flow performance and continued margin expansion as cost-out initiatives progress.

• Project Manta and the Tigo Costa Rica acquisition/joint venture are expected to drive medium-term growth, with the Costa Rica transaction expected to close in Q1 2026.