Summary of Liberty Latin America's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Revenue: $1.1 billion, up 1% reported and flat on a rebased basis.

Adjusted OIBDA: $436 million, reflecting 3% year-over-year rebased growth.

Adjusted Free Cash Flow (FCF): Increased to $83 million in Q2, up $124 million from Q2 2025.

Total Debt: $8.5 billion, with cash of $700 million and consolidated net leverage of 4.6x.

Adjusted OIBDA Margin: Improved to 40%, a 130 basis points year-over-year increase.

2Strategic Updates and Business Highlights

Subscriber Growth: Added 45,000 mobile postpaid and broadband subscribers in Q2, with strong contributions from all segments.

AI-Driven Initiatives: Announced a $250 million NPV deal with Amdocs for cost-optimizing IT services, expected to enhance operational efficiency and drive future cost reductions.

Shareholder Returns: Completed a $500 million preferred stock distribution and continued share repurchases, reflecting confidence in business prospects.

Market Innovations: Launched the "Unbeatable Network" campaign in Jamaica and other Caribbean markets to enhance service quality and customer retention.

3Forward Guidance and Outlook

Q3 and Q4 Expectations: Anticipate continued recovery in Jamaica and positive momentum in subscriber growth and revenue, particularly in the second half of 2026.

Operational Focus: Emphasis on free cash flow generation and capital allocation, with plans to leverage AI and cost optimization strategies to enhance profitability.

4Bad News, Challenges, or Points of Concern

Hurricane Impact: Hurricane Melissa negatively affected Liberty Caribbean's results, leading to a $6 million decline in revenue and adjusted OIBDA.

Competitive Pressures: Ongoing competition in Puerto Rico and Costa Rica, with concerns over market dynamics and pricing pressures.

Regulatory Environment: Potential challenges in the prepaid market in Panama and the need for supportive regulatory conditions in various markets.

5Notable Q&A Insights

Starlink Partnership: Management views the partnership with Starlink as a beneficial add-on to existing services, enhancing customer experience rather than a competitive threat.

Puerto Rico Performance: Improvements in postpaid subscriber trends attributed to operational enhancements and network investments, with a focus on maintaining momentum against competitors.

Portfolio Optimization: Management is open to asset disposals and acquisitions that align with strategic goals, emphasizing rational market participation and potential for future growth in the networks business. Overall, Liberty Latin America demonstrated solid operational performance in Q2 2026, with positive subscriber growth and improved financial metrics, while also navigating challenges from external factors such as hurricanes and competitive pressures. The company remains focused on strategic initiatives aimed at enhancing shareholder value and operational efficiency.