Liberty Global Plc Lilac Class A ((LILA)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Liberty Global Plc Lilac Class A highlighted a generally positive sentiment, marked by strong subscriber growth and financial performance across several regions. The company emphasized strategic network investments and successful refinancing efforts as key drivers of its recent success. However, challenges persist, particularly in Puerto Rico, where revenue declines and operational issues remain significant hurdles. Despite these challenges, the company expressed confidence in its potential for recovery and growth by 2025.
Subscriber Growth in Fixed and Mobile
In 2024, Liberty Latin America reported a significant addition of nearly 100,000 subscribers, demonstrating robust performance in both broadband and postpaid services. Excluding Puerto Rico, the company achieved over 260,000 adds, marking a 9% increase in its subscriber base.
Strong Financial Performance in Certain Segments
The company recorded an adjusted OIBDA of $1.6 billion, driven by impressive year-over-year rebased growth in the C&W Caribbean and Costa Rica segments, alongside double-digit growth in C&W Panama.
Network Investments and Readiness
Liberty Latin America made significant strides in its network investments, passing or upgrading approximately 400,000 homes to fiber-to-the-home. This effort has resulted in 97% of the company’s fixed footprint being gigabit-ready.
Refinancing and Capital Structure Improvements
The successful refinancing of $3.3 billion of C&W debt, with over 75% of the debt maturing in 2032 and beyond, has strengthened Liberty Latin America’s financial stability and aligned with its long-term capital structure strategy.
Costa Rica Mobile and Broadband Expansion
In Costa Rica, the company achieved a 31% year-over-year increase in postpaid subscribers, adding 114,000 new customers. Additionally, the expansion of the fiber-to-the-home network has reached 45% of the region.
Puerto Rico Performance Decline
Liberty Puerto Rico reported a 13% rebased revenue decline year-over-year, primarily due to a reduction in subscribers and challenges associated with customer migration.
Impact of Hurricane Beryl
In Jamaica, Hurricane Beryl adversely affected broadband additions, resulting in a loss of 16,000 broadband customers in Q3 and a further 11,000 in Q4.
Bad Debt and Billing Issues in Puerto Rico
Puerto Rico experienced a $10 million increase in bad debt in Q4, attributed to receivables from migrated customers and billing corrections following the migration process.
Wholesale Revenue Challenges
Liberty Networks faced a 2% rebased revenue decline, with wholesale revenue figures impacted by non-cash IRU declines.
Forward-Looking Guidance
Liberty Latin America provided detailed guidance for the fiscal year 2024, highlighting expectations for continued subscriber growth and financial performance improvements. The company plans to reduce capital intensity to 14% over the next few years and aims for adjusted OIBDA and free cash flow growth by 2025, despite ongoing challenges in Puerto Rico.
In conclusion, the earnings call for Liberty Global Plc Lilac Class A reflects a generally optimistic outlook, supported by strong subscriber growth and strategic financial maneuvers. While challenges remain, particularly in Puerto Rico, the company’s investments in network infrastructure and refinancing efforts position it well for future growth. Investors and stakeholders can remain cautiously optimistic about the company’s prospects in the coming years.
