Liberty Latin America Reports $48.3 Million Operating Loss and $627.3 Million Net Loss for 2024

Liberty Latin America Ltd. (LLA) reported an operating loss of $48.3 million for the year ended December 31, 2024, compared to an operating income of $517.7 million in 2023. Revenue decreased by $54.2 million organically, to $4,456.9 million, while increasing by $29.1 million non-organically. The company's consolidated Adjusted OIBDA, a non-GAAP measure, was $1,593.7 million in 2024, down from $1,701.6 million in 2023. This decrease reflects organic changes in revenue and operating costs, as well as the impact of foreign exchange (FX) fluctuations and acquisitions.

Significant changes compared to the previous fiscal year include a $157.2 million decrease in Liberty Puerto Rico's revenue, primarily due to a decline in mobile subscribers and lower ARPU. Conversely, Liberty Costa Rica saw a $65.2 million increase in revenue, driven by growth in mobile and B2B services. LLA completed several strategic developments during the year, including the acquisition of EchoStar's prepaid business and spectrum assets in Puerto Rico and the U.S. Virgin Islands for $256 million (with $95 million paid in 2024), and the monetization of approximately 1,300 mobile tower sites, generating $253 million in proceeds during 2023. The company also announced an agreement to combine its Costa Rican operations with Millicom.

LLA's operational developments show a total of 8,054,300 mobile subscribers and 3,987,600 RGUs across its segments as of December 31, 2024. The company passed or upgraded approximately 800,000 homes during 2024 through its Network Extension programs. LLA employed approximately 10,000 full-time employees as of December 31, 2024, with a 16.3% total employee attrition rate. Hurricane Beryl negatively impacted revenue and Adjusted OIBDA in Jamaica and other Caribbean operations, resulting in an estimated loss of 33,000 RGUs. However, the hurricane also triggered a $44 million payment under the company's Weather Derivatives.

LLA's financial statements reveal a net loss of $627.3 million for 2024, compared to a net loss of $86.8 million in 2023. The company's substantial leverage, totaling $8,143 million in debt and finance lease obligations at the end of 2024, is a key risk factor. The company identified material weaknesses in its internal control over financial reporting as of December 31, 2024, resulting in an adverse opinion from its independent auditor, KPMG LLP. LLA's outlook includes plans to remediate these weaknesses and continue its growth strategy through organic growth and selective acquisitions, while managing its debt levels to maintain attractive equity returns.