Liberty Latin America Ltd. (LILAK) Bundle
A Brief History of Liberty Latin America Ltd.
Liberty Latin America Ltd. (LILA) has undergone significant transformations and faced numerous challenges in the telecom sector over the years. As of 2024, the company is navigating a complex landscape shaped by acquisitions, regulatory changes, and external events such as natural disasters.
Financial Performance
For the three months ended September 30, 2024, Liberty Latin America reported a net loss of $429.1 million, compared to a net earnings of $47.9 million for the same period in 2023. The operating loss for this quarter was $379.6 million, a stark contrast to an operating income of $162.7 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income (Loss) | $(379.6) million | $162.7 million |
| Net Earnings (Loss) | $(429.1) million | $47.9 million |
| Net Earnings (Loss) per Share | $(2.22) | $0.29 |
Impact of Hurricane Beryl
In July 2024, Hurricane Beryl adversely affected operations particularly in Jamaica and the Caribbean, resulting in an estimated $5 million impact on revenue and $8 million on Adjusted OIBDA during the third quarter. The company also incurred approximately $7 million in capital expenditures to repair damaged infrastructure, leading to a reported loss of about 33,000 RGUs (Revenue Generating Units).
Acquisitions and Strategic Moves
On September 3, 2024, Liberty Latin America completed the acquisition of EchoStar's prepaid business in Puerto Rico and the US Virgin Islands, with a total cash consideration of $256 million. The first installment of $95 million was paid at closing, with subsequent payments scheduled over the next three years.
| Acquisition Details | Amount (in millions) |
|---|---|
| Total Purchase Price | $256 |
| First Installment Paid | $95 |
| Future Payments | $142.6 |
Debt Management
As of September 30, 2024, Liberty Latin America reported total debt of approximately $8.15 billion, with significant debt maturities approaching in the coming years. The company’s debt strategy focuses on maintaining manageable levels while providing attractive equity returns.
| Debt Maturity Schedule | Amount (in millions) |
|---|---|
| 2024 | $423.1 |
| 2025 | $240.7 |
| Total Debt | $8,151.2 |
Operational Metrics
Liberty Latin America serves approximately 3.99 million RGUs, with a breakdown of 1.82 million broadband internet subscribers, 1.23 million fixed-line telephony subscribers, and 0.93 million video subscribers. The company also serves nearly 8 million mobile subscribers across its operational regions.
| Subscribers Count | Count |
|---|---|
| Broadband Internet | 1,824,500 |
| Fixed-line Telephony | 1,232,700 |
| Video Subscribers | 928,900 |
| Mobile Subscribers | 7,989,300 |
As the company progresses through 2024, it continues to adapt to the evolving telecommunications landscape, focusing on growth through strategic acquisitions and operational efficiency.
A Who Owns Liberty Latin America Ltd. (LILAK)
Ownership Structure
As of 2024, Liberty Latin America Ltd. (LILAK) has a multifaceted ownership structure that includes both controlling and non-controlling interests. The company's equity is divided among various classes of shares:
| Share Class | Common Shares Outstanding (millions) | Ownership Percentage |
|---|---|---|
| Class A | 0.5 | 0.001% |
| Class B | — | 0.000% |
| Class C | 1.9 | 0.004% |
| Treasury Stock | 51.8 | — |
Major Shareholders
The significant shareholders of Liberty Latin America as of September 30, 2024, include both institutional and individual investors. The largest stakeholders are:
- Liberty Global plc
- Various institutional investors
- Non-controlling interests in subsidiaries
Financial Performance
Liberty Latin America's financial performance has been impacted by various factors, including operational challenges and market conditions. The following financial data provides insight into the company's recent performance:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue (in millions) | $1,089.2 | $1,125.8 | $3,306.6 | $3,347.5 |
| Net Earnings (Loss) (in millions) | $(429.1) | $47.9 | $(466.5) | $(4.1) |
| Adjusted OIBDA (in millions) | $403.1 | $428.4 | $1,166.4 | $1,269.7 |
Debt and Financial Obligations
As of September 30, 2024, Liberty Latin America reported significant debt levels:
| Debt Type | Outstanding Amount (in millions) | Maturity |
|---|---|---|
| Total Debt | $8,212 | 2027 and beyond |
| Current Portion of Debt | $550 | Due within one year |
| Weighted Average Interest Rate | 7.2% | N/A |
Non-Controlling Interests
Liberty Latin America has several subsidiaries with non-controlling interests. These include:
- C&W Caribbean
- Liberty Puerto Rico
- Liberty Costa Rica
The contribution from non-controlling interest owners significantly impacts the overall equity structure of the company.
Market Capitalization and Stock Performance
The market capitalization of Liberty Latin America as of late 2024 is approximately $2.1 billion, reflecting a challenging stock performance:
| Metric | Value |
|---|---|
| Market Capitalization (in billions) | $2.1 |
| Stock Price (as of September 30, 2024) | $10.70 |
| 52-Week Range | $9.50 - $15.00 |
Conclusion
The ownership landscape of Liberty Latin America Ltd. is characterized by a blend of controlling and non-controlling interests, substantial debt levels, and ongoing operational challenges that influence its financial performance and market valuation.
Liberty Latin America Ltd. (LILAK) Mission Statement
Company Overview
Liberty Latin America Ltd. (LILAK) operates as a telecommunications and entertainment company in Latin America and the Caribbean. Its mission statement emphasizes a commitment to providing superior connectivity and entertainment services to enhance the lives of its customers.
Mission Statement
The mission of Liberty Latin America Ltd. is to connect and engage customers through innovative telecommunications and entertainment solutions, fostering a more connected future in the communities it serves.
Key Financial Metrics
As of September 30, 2024, Liberty Latin America reported the following key financial metrics:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $1,089.2 |
| Net Earnings (Loss) | $(429.1) |
| Adjusted OIBDA | $403.1 |
| Total Assets | $8,013.9 |
| Total Equity | $2,428.7 |
Revenue Breakdown
The revenue for Liberty Latin America is categorized as follows for the three months ended September 30, 2024:
| Segment | Revenue (in millions) |
|---|---|
| C&W Caribbean | $359.5 |
| C&W Panama | $188.0 |
| Liberty Networks | $109.9 |
| Liberty Puerto Rico | $308.2 |
| Liberty Costa Rica | $145.5 |
| Corporate | $4.5 |
| Total Revenue | $1,089.2 |
Operational Highlights
As of September 30, 2024, Liberty Latin America served a significant customer base:
| Service | Subscribers |
|---|---|
| Broadband Internet Subscribers | 1,824,500 |
| Fixed-line Telephony Subscribers | 1,232,700 |
| Video Subscribers | 928,900 |
| Mobile Subscribers | 7,989,300 |
Market Challenges and Opportunities
Liberty Latin America faces challenges such as market competition and regulatory environments in various countries. However, opportunities exist in expanding broadband access and enhancing service offerings to meet the growing demand for digital connectivity.
Recent Developments
In August 2024, Liberty Latin America announced a joint operation agreement with Millicom in Costa Rica, expected to close in the second half of 2025, aiming to enhance service delivery and operational efficiency.
Conclusion
Liberty Latin America Ltd. remains focused on its mission to enhance connectivity and entertainment services, driving growth and innovation across its operational regions.
How Liberty Latin America Ltd. (LILAK) Works
Company Overview
Liberty Latin America Ltd. (LILAK) operates as a telecommunications company across various markets in Latin America and the Caribbean. It provides broadband, video, and telephony services to residential and business customers.
Financial Performance
As of September 30, 2024, Liberty Latin America reported the following financial highlights:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Revenue | $1,095.7 | $1,137.2 | (3.4) |
| Net Loss | $(429.1) | $47.9 | (994.3) |
| Adjusted OIBDA | $465.3 | $436.9 | 6.5 |
| Basic and Diluted EPS | $(2.22) | $0.29 | (865.5) |
Operational Segments
Liberty Latin America operates through multiple segments, including:
- Liberty Puerto Rico
- Liberty Costa Rica
- C&W Caribbean
- C&W Panama
- Liberty Networks
Revenue Breakdown
The revenue breakdown for the nine months ended September 30, 2024, is as follows:
| Segment | Residential Revenue (in millions) | B2B Revenue (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| Liberty Puerto Rico | $759.7 | $162.7 | $922.4 |
| Liberty Costa Rica | $445.0 | $49.4 | $494.4 |
| C&W Caribbean | $704.5 | $387.5 | $1,092.0 |
| C&W Panama | $338.5 | $215.9 | $554.4 |
| Liberty Networks | $337.5 | $181.6 | $519.1 |
Subscriber Metrics
As of September 30, 2024, Liberty Latin America reported:
- 3,986,100 RGUs, consisting of:
- 1,824,500 broadband internet subscribers
- 1,232,700 fixed-line telephony subscribers
- 928,900 video subscribers
- 7,989,300 mobile subscribers
Debt and Liquidity
As of September 30, 2024, Liberty Latin America's total debt stood at:
| Debt Type | Amount (in millions) |
|---|---|
| Total Debt | $8,212 |
| Current Portion | $550 |
| Long-term Debt | $7,604 |
Recent Developments
In August 2024, Liberty Latin America announced a transaction to combine operations in Costa Rica with Millicom, which is expected to close in the second half of 2025. This partnership aims to enhance operational efficiencies and market competitiveness.
Impact from Natural Disasters
The company faced challenges due to Hurricane Beryl in July 2024, with an estimated negative impact on revenue of approximately $5 million and an Adjusted OIBDA impact of about $8 million during Q3 2024. The estimated total impact from the hurricane for the year is projected to be between $10 million and $20 million.
Market Position
Liberty Latin America remains a significant player in the telecommunications market within its operating regions, continuously adapting to competitive pressures and changing consumer demands.
How Liberty Latin America Ltd. (LILAK) Makes Money
Revenue Generation Overview
Liberty Latin America Ltd. (LILAK) generates revenue through multiple streams, primarily from residential and business-to-business (B2B) services. As of September 30, 2024, the company reported total revenue of $3.31 billion, a decrease of 1.2% from $3.35 billion in the same period in 2023.
Residential Revenue
Residential revenue includes fixed and mobile services. In the third quarter of 2024, residential revenue totaled $759.7 million, down from $864.1 million in 2023, marking a 12% decline.
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Residential Fixed Revenue | 374.1 | 378.0 | -1 |
| Residential Mobile Revenue | 385.6 | 486.1 | -21 |
| Total Residential Revenue | 759.7 | 864.1 | -12 |
Business-to-Business (B2B) Revenue
B2B revenue contributes significantly to LILAK's income, generating $162.7 million in Q3 2024, down 4% from $168.7 million in Q3 2023. This revenue includes services provided to enterprises and wholesale clients.
Other Revenue Streams
Other revenue, which encompasses various additional services, accounted for $21.6 million in Q3 2024, a decrease from $31.4 million in Q3 2023.
Adjusted OIBDA
For the nine months ended September 30, 2024, Liberty Latin America reported an Adjusted OIBDA of $1.17 billion, down from $1.27 billion in the prior year. Adjusted OIBDA is a key performance metric that reflects the operational profitability of the company.
Operating Income and Loss
Liberty Latin America reported an operating loss of $176 million for the nine months ending September 30, 2024, compared to an operating income of $404.7 million in the same period in 2023.
Impact of External Factors
The company's revenue has been affected by external factors such as natural disasters. For instance, Hurricane Beryl in July 2024 negatively impacted revenue by approximately $5 million during Q3 2024.
Subscriber Metrics
As of September 30, 2024, LILAK reported serving 3.99 million RGUs, which includes 1.82 million broadband internet subscribers, 1.23 million fixed-line telephony subscribers, and 928,900 video subscribers. The mobile subscriber count stood at approximately 7.99 million.
Financial Summary
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | 1,089.2 | 1,125.8 | -3.2 |
| Adjusted OIBDA | 403.1 | 428.4 | -5.9 |
| Net Loss | (429.1) | 47.9 | -993.9 |
| Operating Income (Loss) | (379.6) | 162.7 | -333.7 |
Conclusion of Financial Performance
Liberty Latin America Ltd.'s financial performance in 2024 reflects challenges in both the residential and B2B segments, compounded by external impacts such as natural disasters. The company continues to adapt its business model in response to these challenges while seeking to enhance revenue streams through operational efficiencies and strategic initiatives.
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Resources:
- Liberty Latin America Ltd. (LILAK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Liberty Latin America Ltd. (LILAK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Liberty Latin America Ltd. (LILAK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.