Liberty Latin America Reports Revenue Decline and Significant Operating Loss in Q2 2025

Liberty Latin America Ltd. reported a decline in financial performance for the second quarter of 2025, with total revenue of $1,086.7 million, down from $1,118.0 million in the same period last year. For the first half of 2025, revenue also decreased to $2,170.2 million from $2,217.4 million in 2024. The company experienced a significant operating loss of $333.0 million for the quarter, compared to an operating income of $110.8 million in the prior year. The six-month operating loss was $204.9 million, a stark contrast to the $203.6 million operating income reported in 2024. The losses were attributed to a $494 million impairment charge related to spectrum license intangible assets in Liberty Puerto Rico, alongside increased operating costs.

In terms of operational metrics, Liberty Latin America served approximately 6.6 million mobile subscribers and reported 3.98 million revenue-generating units (RGUs) across its fixed services, which include broadband internet, fixed-line telephony, and video. The company’s customer base saw fluctuations, with a noted decline in average revenue per user (ARPU) in certain segments due to competitive pressures and pricing strategies. The company’s total assets decreased to $11.95 billion as of June 30, 2025, down from $12.8 billion at the end of 2024, reflecting a reduction in cash and cash equivalents and property and equipment.

Strategically, Liberty Latin America is pursuing growth through acquisitions and partnerships. The company announced a pending agreement with Millicom to combine operations in Costa Rica, expected to close in the first quarter of 2026. Additionally, the company is in the process of acquiring EchoStar's prepaid business and spectrum assets in Puerto Rico and the U.S. Virgin Islands, with a total cash consideration of $256 million to be paid in installments over four years. These strategic moves are aimed at enhancing market share and operational efficiency in the competitive telecommunications landscape.

The company’s financial outlook remains cautious, with management highlighting the potential impacts of ongoing economic conditions, including inflation and foreign currency fluctuations, on future performance. Liberty Latin America is also focused on improving its operational efficiency and managing costs to mitigate the effects of competitive pressures. The company’s liquidity position is supported by cash reserves of $514.4 million, although it remains dependent on the performance of its subsidiaries and the successful execution of its strategic initiatives to navigate the challenging market environment.