LILA — Liberty Latin America Ltd.

Summary of Liberty Latin America's Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: Q4 revenue was $1.2 billion, reflecting a 1% year-over-year rebased growth. Full-year revenue slightly declined to $4.4 billion on a rebased basis.
• Adjusted OIBDA: Q4 adjusted OIBDA was $451 million, with full-year adjusted OIBDA at $1.7 billion, representing 9% growth on a rebased basis.
• Adjusted OIBDA Margin: Improved by approximately 300 basis points in 2025, reaching 24% after P&E additions.
• Free Cash Flow: Q4 adjusted free cash flow was robust at $278 million, leading to a full-year total of $150 million, a 29% year-over-year increase.
• P&E Additions: Totaled $640 million in 2025, down from $725 million in 2024, with P&E as a percentage of revenue at 14%.

2. Strategic Updates and Business Highlights

• Subscriber Growth: Added over 225,000 mobile postpaid subscribers in 2025, with significant contributions from Costa Rica and Puerto Rico.
• Hurricane Recovery: Despite challenges from Hurricane Melissa, the mobile network in Jamaica recovered quickly, with over 75% of fixed broadband customers restored.
• B2B Performance: Strong growth in B2B, particularly in C&W Panama, with a notable contract win from the Ministry of Education of Panama.
• 5G Deployment: Continued focus on 5G rollout across multiple regions, enhancing competitive positioning.
• Partnerships: Collaboration with AWS to enhance cloud services and AI capabilities, aiming for improved operational efficiencies.

3. Forward Guidance and Outlook

• 2026 Focus: Plans to rebuild in Jamaica and continue driving fixed mobile convergence (FMC) initiatives. Expectation to return to near pre-hurricane profitability levels by the end of 2026.
• Revenue Growth: Anticipated modest single-digit growth in mobile and flattish to slight growth in fixed services, with B2B expected to improve as new cloud services are introduced.
• Shareholder Returns: Management is committed to rewarding shareholders and plans to announce initiatives in 2026.

4. Bad News, Challenges, or Points of Concern

• Hurricane Impact: Hurricane Melissa adversely affected Q4 results, particularly in Jamaica, leading to revenue declines and operational challenges.
• Puerto Rico Performance: Continued competitive pressures resulted in a 6% revenue decline for the year, with B2B revenue down 16%.
• Customer Migration Issues: Transition challenges from the DISH acquisition impacted customer retention and revenue stability in Puerto Rico.
• Market Competition: Ongoing competitive pressures in fixed services and B2B segments, particularly in Puerto Rico and Costa Rica.

5. Notable Q&A Insights

• AI and Cost Improvements: Management acknowledged the potential for AI to enhance operational efficiencies but refrained from quantifying expected improvements.
• FMC Opportunities: Emphasized the potential for fixed mobile convergence to drive higher ARPU and reduce churn, particularly in Puerto Rico.
• Revenue Growth Projections: While avoiding specific guidance, management indicated a positive trajectory for mobile growth and a cautious outlook for fixed services due to legacy product declines.
• Shareholder Returns: Management hinted at potential announcements regarding shareholder returns later in 2026, contingent on cash flow performance.

Overall, Liberty Latin America demonstrated resilience in its operations despite facing significant challenges, particularly from natural disasters and competitive pressures. The company is focused on strategic growth initiatives and improving financial performance as it moves into 2026.