Reported revenue up 2% to $1.2 billion and flat on rebased basis; 3% rebased growth ex VTR
Over 400,000 organic broadband and postpaid mobile adds in last twelve months
Completed 50:50 Chilean Joint Venture on October 6
Repurchased over $150 million of shares through to the end of Q3
DENVER, Colorado–(BUSINESS WIRE)–Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q3”) and nine months (“YTD”) ended September 30, 2022.
CEO Balan Nair commented, “In the third quarter, we continued to drive top-line growth, excluding our Chilean operation, which we combined with Claro Chile through a 50:50 JV in early October. While we experienced some negative impacts from Hurricane Fiona, specifically in Puerto Rico where we anticipate a negative cash flow impact of $20 million this year, we don’t anticipate any material ongoing challenges and remain excited about fully integrating our fixed-line and resilient mobile operations in that market.”
“Our focus on broadband and mobile postpaid subscriber growth continued to drive our revenue performance. Broadband subscriber additions were led by double-digit percentage growth, sequential and year-over-year, in Puerto Rico. Mobile postpaid additions for the group were nearly double the prior year period as we continued to grow postpaid penetration across our markets.”
“Strategically, we continue to progress our integration activities across Puerto Rico, Panama, and Costa Rica and are set to deliver significant value for stakeholders as we combine operations and work towards realizing full run-rate synergies in excess of $150 million. In early October, we completed the previously announced JV with Claro in Chile and the new management team is now in place. While that team is early in their planning and integration processes, we expect them to drive significant synergies consistent with our plans and to drive operational growth.”
“Overall, we continued to make progress in the quarter and anticipate a seasonally strong end to the year. We are focused on driving operational performance across the group and integrating our acquisitions. Through these initiatives, we expect to deliver significant Adjusted FCF growth in the coming years.”
Business Highlights
-
C&W Caribbean: strong operating and financial performance
- Q3 subscriber additions drive reported and rebased revenue up 3%
- Reported and rebased Adj. OIBDA growth of 11% in Q3
-
C&W Panama: subscriber growth, Claro Panama acquired on July 1
- Revenue growth driven by broadband and B2B project wins
- Integration and synergy capture underway
-
C&W Networks & LatAm: first quarter as separate reporting segment
- Stable top-line performance
- Strong Adj. OIBDA less P&E additions as a percentage of revenue
-
Liberty Puerto Rico: strong fixed performance
- Broadband adds up 16% YoY and 51% sequentially
- Adj. OIBDA impacted by Hurricane Fiona and integration related expenses
-
Liberty Costa Rica: postpaid mobile subscriber additions driving revenue growth
- Integration progressing well; market leadership in mobile
- Reported and rebased revenue growth of 40% and 7%, respectively
- VTR: 50:50 JV with Claro Chile completed on October 6
LLA 2022 Financial Guidance – Update
- P&E additions as a percentage of revenue at ~18%
-
Adjusted FCF guidance of ~$200 million
- Previous guidance of ~$220 million reduced by ~$20 million to incorporate the impact of Hurricane Fiona
Financial and Operating Highlights
|
Financial Highlights |
|
Q3 2022 |
|
Q3 2021 |
|
YoY Growth / |
|
YoY Rebase Growth / |
|
YTD 2022 |
|
YTD 2021 |
|
YoY Growth / |
|
YoY Rebase Growth / |
||||||||||||
|
(USD in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenue |
|
$ |
1,222 |
|
|
$ |
1,196 |
|
|
2 |
% |
|
— |
% |
|
$ |
3,654 |
|
|
$ |
3,534 |
|
|
3 |
% |
|
1 |
% |
|
Revenue (excluding VTR)2 |
|
$ |
1,092 |
|
|
$ |
1,003 |
|
|
9 |
% |
|
3 |
% |
|
$ |
3,204 |
|
|
$ |
2,922 |
|
|
10 |
% |
|
3 |
% |
|
Adjusted OIBDA3 |
|
$ |
415 |
|
|
$ |
443 |
|
|
(6 |
%) |
|
(6 |
%) |
|
$ |
1,312 |
|
|
$ |
1,352 |
|
|
(3 |
%) |
|
(4 |
%) |
|
Adjusted OIBDA3 (excluding VTR)2 |
|
$ |
384 |
|
|
$ |
378 |
|
|
2 |
% |
|
(1 |
%) |
|
$ |
1,197 |
|
|
$ |
1,147 |
|
|
4 |
% |
|
1 |
% |
|
Operating income (loss) |
|
$ |
153 |
|
|
$ |
136 |
|
|
13 |
% |
|
|
|
$ |
(15 |
) |
|
$ |
485 |
|
|
N.M. |
|
|
|||
|
Property & equipment additions |
|
$ |
224 |
|
|
$ |
232 |
|
|
(3 |
%) |
|
|
|
$ |
591 |
|
|
$ |
599 |
|
|
(1 |
%) |
|
|
||
|
As a percentage of revenue |
|
|
18 |
% |
|
|
19 |
% |
|
|
|
|
|
|
16 |
% |
|
|
17 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Adjusted FCF4 |
|
$ |
(41 |
) |
|
$ |
56 |
|
|
|
|
|
|
$ |
(25 |
) |
|
$ |
149 |
|
|
|
|
|
||||
|
Cash provided by operating activities |
|
$ |
145 |
|
|
$ |
274 |
|
|
|
|
|
|
$ |
492 |
|
|
$ |
718 |
|
|
|
|
|
||||
|
Cash used by investing activities |
|
$ |
(402 |
) |
|
$ |
(734 |
) |
|
|
|
|
|
$ |
(745 |
) |
|
$ |
(1,075 |
) |
|
|
|
|
||||
|
Cash provided (used) by financing activities |
|
$ |
(9 |
) |
|
$ |
227 |
|
|
|
|
|
|
$ |
22 |
|
|
$ |
531 |
|
|
|
|
|
||||
|
N.M. – Not Meaningful. |
||||||||||||||||||||||||||||
|
Operating Highlights5 |
|
Q3 2022 |
|
Q3 2021 |
|
YoY Growth / |
||
|
Total customers |
|
3,238,200 |
|
|
3,246,700 |
|
— |
% |
|
Organic customer (losses) additions |
|
(12,500 |
) |
|
10,900 |
|
|
|
|
Fixed RGUs |
|
6,422,800 |
|
|
6,418,800 |
|
— |
% |
|
Organic RGU (losses) additions |
|
(25,600 |
) |
|
83,800 |
|
|
|
|
Organic internet additions |
|
6,900 |
|
|
24,200 |
|
|
|
|
Mobile subscribers* |
|
8,376,900 |
|
|
7,293,900 |
|
15 |
% |
|
Organic mobile additions |
|
169,000 |
|
|
74,400 |
|
|
|
|
Organic postpaid additions |
|
72,700 |
|
|
38,300 |
|
|
|
|
* |
Q3 2022 figures include mobile subscribers related to the Claro Panama Acquisition, which was completed on July 1, 2022, and are therefore not included in Q3 2021 subscriber data. |
Revenue Highlights
The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:
|
|
Three months ended |
|
Increase/ |
|
Nine months ended |
|
Increase/ |
||||||||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
% |
|
Rebased % |
|
|
2022 |
|
|
|
2021 |
|
|
% |
|
Rebased % |
||||
|
|
in millions, except % amounts |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
C&W Caribbean |
$ |
359.1 |
|
|
$ |
347.4 |
|
|
3 |
|
|
3 |
|
|
$ |
1,069.5 |
|
|
$ |
1,033.0 |
|
|
4 |
|
|
4 |
|
|
C&W Panama |
|
172.5 |
|
|
|
133.9 |
|
|
29 |
|
|
2 |
|
|
|
441.3 |
|
|
|
394.5 |
|
|
12 |
|
|
3 |
|
|
C&W Networks & LatAm |
|
102.8 |
|
|
|
106.5 |
|
|
(3 |
) |
|
(1 |
) |
|
|
326.8 |
|
|
|
320.0 |
|
|
2 |
|
|
4 |
|
|
Liberty Puerto Rico |
|
366.9 |
|
|
|
357.3 |
|
|
3 |
|
|
2 |
|
|
|
1,096.4 |
|
|
|
1,078.5 |
|
|
2 |
|
|
1 |
|
|
Liberty Costa Rica |
|
109.2 |
|
|
|
77.8 |
|
|
40 |
|
|
7 |
|
|
|
324.6 |
|
|
|
150.3 |
|
|
116 |
|
|
9 |
|
|
VTR |
|
129.8 |
|
|
|
193.1 |
|
|
(33 |
) |
|
(19 |
) |
|
|
450.6 |
|
|
|
612.7 |
|
|
(26 |
) |
|
(15 |
) |
|
Corporate |
|
5.4 |
|
|
|
5.4 |
|
|
— |
|
|
— |
|
|
|
16.5 |
|
|
|
16.2 |
|
|
2 |
|
|
2 |
|
|
Eliminations |
|
(23.7 |
) |
|
|
(25.1 |
) |
|
N.M. |
|
N.M. |
|
|
(71.3 |
) |
|
|
(71.0 |
) |
|
N.M. |
|
N.M. |
||||
|
Total |
$ |
1,222.0 |
|
|
$ |
1,196.3 |
|
|
2 |
|
|
— |
|
|
$ |
3,654.4 |
|
|
$ |
3,534.2 |
|
|
3 |
|
|
1 |
|
|
Less: VTR |
|
129.8 |
|
|
|
193.1 |
|
|
|
|
|
|
|
450.6 |
|
|
|
612.7 |
|
|
|
|
|
||||
|
Total excluding VTR2 |
$ |
1,092.2 |
|
|
$ |
1,003.2 |
|
|
9 |
|
|
3 |
|
|
$ |
3,203.8 |
|
|
$ |
2,921.5 |
|
|
10 |
|
|
3 |
|
|
N.M. – Not Meaningful. |
|||||||||||||||||||||||||||
-
Our reported revenue for the three and nine months ended September 30, 2022 increased by 2% and 3%, respectively.
- Reported revenue growth in Q3 was driven by (1) the addition of $72 million, primarily from the acquisitions of América Móvil’s Panama operations on July 1, 2022 and Telefónica’s Costa Rica operations on August 9, 2021, (2) organic growth in Liberty Costa Rica and C&W Caribbean, (3) organic declines at VTR and (4) a net foreign exchange (“FX”) impact of $(32) million. The FX impact was driven by an average year-over-year 20% depreciation of the Chilean peso in Q3.
- Reported revenue growth YTD was driven by (1) the addition of $224 million, primarily from the acquisitions of Telefónica’s Costa Rica operations and América Móvil’s Panama operations, (2) organic growth in C&W Caribbean, Liberty Costa Rica, C&W Networks and C&W Panama, (3) organic declines at VTR and (4) a net FX impact of $(95) million. The FX impact was driven by an average year-over-year 17% depreciation of the Chilean peso YTD.
Q3 2022 Revenue Growth – Segment Highlights
-
C&W Caribbean: revenue grew by 3% on both a reported and rebased basis.
- Fixed residential revenue was 3% and 2% higher on a reported and rebased basis, respectively. Year-over-year rebased performance continued to be driven by growth in our internet subscriber base, which was 22,000 higher over the past twelve months driven by Jamaica.
- Mobile revenue was up 6% and 5% on a reported and rebased basis, respectively, as compared to the prior-year period. Rebased growth was primarily driven by a higher average number of mobile subscribers, resulting from sales initiatives, including converged offerings. Inbound roaming also grew year-over-year, as a recovery in tourism led to increased traffic.
- B2B revenue was 3% higher on a reported and rebased basis, as compared to the prior-year period. Performance was driven by internet services-related growth as well as mobile subscriber growth.
-
C&W Panama: revenue grew by 29% and 2% on a reported and rebased basis, respectively. Reported performance benefited from the inclusion of América Móvil’s Panama operations in the quarter.
- Fixed residential revenue was up 18% and 9% on a reported and rebased basis, respectively. Rebased growth was driven by 63,000 subscriber additions over the past twelve months, resulting from investments in our networks, products and commercial activities.
- Mobile revenue increased by 45% on a reported basis and declined by 2% on a rebased basis. Revenue decreased on a rebased basis as postpaid service revenue growth was more than offset by prepaid revenue decline year-over-year.
- B2B revenue grew by 17% and 4% on a reported and rebased basis, respectively. The year-over-year rebased growth was driven by the successful award of certain infrastructure projects, and growth in fixed and mobile recurring revenue.
- C&W Networks & LatAm: revenue decreased by 3% and 1% on a reported and rebased basis, respectively. Performance on a rebased basis was driven by higher B2B service-related connectivity revenue and growth in managed services, offset by lower pricing and reduced lease capacity revenue.
- Liberty Puerto Rico: revenue grew by 3% and 2% on a reported and rebased basis, respectively. Reported performance benefited from the inclusion of our fixed operations in the USVI in the quarter. On a rebased basis, residential fixed revenue was flat as subscriber growth was offset by the negative impact of customer credits following Hurricane Fiona during Q3 2022. Consumer mobile revenue declined as compared to the prior-year period, as higher roaming and equipment sales were more than offset by a reduction in the average number of mobile subscribers and lower ARPU.
- Liberty Costa Rica: revenue grew by 40% and 7% on a reported and rebased basis, respectively. Reported performance benefited from the inclusion of Telefónica’s Costa Rica operations in the quarter. Rebased growth was driven by strong subscriber additions across both our mobile and fixed businesses over the past twelve months as well as higher inbound roaming and handset sales.
- VTR: revenue was 33% and 19% lower on a reported and rebased basis, respectively. The year-over-year revenue decline was primarily driven by residential fixed revenue performance. Over the past twelve months, intense competitive pressures have led to a reduction in ARPU and subscriber numbers. In addition, strategic initiatives implemented during the first quarter of 2022 have led to lower ARPU levels across our internet subscriber base.
Operating Income (Loss)
-
Operating income (loss) was $153 million and $136 million for the three months ended September 30, 2022 and 2021, respectively, and ($15 million) and $485 million for the nine months ended September 30, 2022 and 2021, respectively.
- The increase during the three-month comparison is due to lower expenses associated with depreciation and amortization, stock-based compensation and impairment, restructuring and other operating items, net, which were partially offset by a decline in Adjusted OIBDA. We experienced a decrease in depreciation and amortization expense as we ceased recording depreciation expense for the Chile JV Entities during the third quarter of 2021 when we began accounting for them as held for sale. The decline for the nine-month comparison is primarily due to goodwill impairments incurred during the second quarter of 2022, and a decline in Adjusted OIBDA, which were partially offset by a decrease in depreciation and amortization expense.
Adjusted OIBDA Highlights
The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:
|
|
Three months ended |
|
Increase (decrease) |
|
Nine months ended |
|
Increase (decrease) |
||||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||||||||||
|
|
2022 |
|
|
2021 |
|
|
% |
|
Rebased % |
|
2022 |
|
|
2021 |
|
|
% |
|
Rebased % |
||||
|
|
in millions, except % amounts |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
C&W Caribbean |
$ 132.7 |
|
|
$ 119.6 |
|
|
11 |
|
|
11 |
|
|
$ 397.1 |
|
|
$ 357.9 |
|
|
11 |
|
|
12 |
|
|
C&W Panama |
46.7 |
|
|
47.9 |
|
|
(3 |
) |
|
(5 |
) |
|
131.6 |
|
|
137.5 |
|
|
(4 |
) |
|
(5 |
) |
|
C&W Networks & LatAm |
58.9 |
|
|
62.0 |
|
|
(5 |
) |
|
(4 |
) |
|
196.6 |
|
|
193.1 |
|
|
2 |
|
|
3 |
|
|
Liberty Puerto Rico |
131.5 |
|
|
139.3 |
|
|
(6 |
) |
|
(6 |
) |
|
418.2 |
|
|
445.6 |
|
|
(6 |
) |
|
(6 |
) |
|
Liberty Costa Rica |
32.8 |
|
|
24.0 |
|
|
37 |
|
|
(1 |
) |
|
98.6 |
|
|
50.8 |
|
|
94 |
|
|
8 |
|
|
VTR |
31.2 |
|
|
65.1 |
|
|
(52 |
) |
|
(42 |
) |
|
115.6 |
|
|
204.3 |
|
|
(43 |
) |
|
(34 |
) |
|
Corporate |
(18.8 |
) |
|
(14.7 |
) |
|
(28 |
) |
|
(28 |
) |
|
(45.4 |
) |
|
(37.7 |
) |
|
(20 |
) |
|
(20 |
) |
|
Total |
$ 415.0 |
|
|
$ 443.2 |
|
|
(6 |
) |
|
(6 |
) |
|
$ 1,312.3 |
|
|
$ 1,351.5 |
|
|
(3 |
) |
|
(4 |
) |
|
Less: VTR |
31.2 |
|
|
65.1 |
|
|
|
|
|
|
115.6 |
|
|
204.3 |
|
|
|
|
|
||||
|
Total excluding VTR2 |
$ 383.8 |
|
|
$ 378.1 |
|
|
2 |
|
|
(1 |
) |
|
$ 1,196.7 |
|
|
$ 1,147.2 |
|
|
4 |
|
|
1 |
|
| Operating income (loss) margin |
12.5 |
% |
|
11.4 |
% |
|
|
|
|
|
|
|
(0.4 |
)% |
|
13.7 |
% |
||||||
| Adjusted OIBDA margin |
34.0 |
% |
|
37.0 |
% |
|
|
|
|
|
|
|
35.9 |
% |
|
38.2 |
% |
||||||
| Adjusted OIBDA margin excl. VTR2 |
35.1 |
% |
|
37.7 |
% |
|
|
|
|
|
|
|
37.4 |
% |
|
39.3 |
% |
||||||
-
Our reported Adjusted OIBDA for the three and nine months ended September 30, 2022 was 6% and 3% lower, respectively, as compared to the corresponding prior-year periods.
- Reported Adjusted OIBDA performance in Q3 and YTD resulted from the net impact of organic declines in VTR and Puerto Rico, and FX headwinds in Chile, which were partly offset by $18 million and $61 million, respectively, contributed by acquisitions and organic growth at C&W Caribbean. Our Q3 reported results were also impacted negatively by $12 million related to Hurricane Fiona and $5 million of incremental integration costs.
Q3 2022 Adjusted OIBDA Growth – Segment Highlights
- C&W Caribbean: Adjusted OIBDA increased by 11% on both a reported and rebased basis. Performance was driven by the aforementioned rebased revenue growth and our focus on cost control. Our Adjusted OIBDA margin improved by ~250 basis points year-over-year to 37%.
- C&W Panama: Adjusted OIBDA decreased on a reported and rebased basis by 3% and 5%, respectively. The rebased decline was driven by higher equipment costs related to additional B2B projects, higher bad debt provisions as challenging economic conditions impacted customers in lower socio-economic groups and integration costs.
- C&W Networks & LatAm: Adjusted OIBDA decreased on a reported and rebased basis by 5% and 4%, respectively. Our rebased performance was driven by higher direct costs associated with equipment sales across B2B services.
- Liberty Puerto Rico: Adjusted OIBDA declined by 6% on a reported and rebased basis. The decline in the quarter was driven by (i) $12 million in revenue credits and costs associated with Hurricane Fiona (aforementioned revenue credits and increased network-related expenses), (ii) increased equipment costs due to a higher volume of handset sales, (iii) additional TSA-related charges, (iv) higher personnel costs as we establish an operating structure in advance of fully transitioning services from AT&T, and (v) increased integration costs as compared to the prior-year period. We anticipate a further ~$5 million of Hurricane Fiona related negative impacts to Adjusted OIBDA in Q4 2022.
- Liberty Costa Rica: Adjusted OIBDA grew by 37% on a reported basis and declined by 1% on a rebased basis. Reported growth benefited from the inclusion of Telefónica’s Costa Rica operations in the quarter. Rebased performance was driven by the aforementioned rebased revenue growth, offset by $2 million of additional integration costs and higher other operating costs including a $2 million non-functional currency impact.
- VTR: Adjusted OIBDA was lower on a reported and rebased basis by 52% and 42%, respectively. The rebased decline was driven by the aforementioned decrease in revenue.
Net Earnings (Loss) Attributable to Shareholders
- Net earnings (loss) attributable to shareholders was $84 million and $76 million for the three months ended September 30, 2022 and 2021, respectively, and ($310 million) and $174 million for the nine months ended September 30, 2022 and 2021, respectively.
Property & Equipment Additions and Capital Expenditures
The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures.
|
|
Three months ended |
|
Nine months ended |
||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
USD in millions |
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Customer Premises Equipment |
$ |
64.1 |
|
|
$ |
84.1 |
|
|
$ |
205.4 |
|
|
$ |
235.2 |
|
|
New Build & Upgrade |
|
42.8 |
|
|
|
53.1 |
|
|
|
111.8 |
|
|
|
111.7 |
|
|
Capacity |
|
32.0 |
|
|
|
41.4 |
|
|
|
85.9 |
|
|
|
95.1 |
|
|
Baseline |
|
63.9 |
|
|
|
32.8 |
|
|
|
139.2 |
|
|
|
104.4 |
|
|
Product & Enablers |
|
21.2 |
|
|
|
20.5 |
|
|
|
48.8 |
|
|
|
52.6 |
|
|
Property & equipment additions |
|
224.0 |
|
|
|
231.9 |
|
|
|
591.1 |
|
|
|
599.0 |
|
|
Assets acquired under capital-related vendor financing arrangements |
|
(46.7 |
) |
|
|
(26.7 |
) |
|
|
(114.2 |
) |
|
|
(65.0 |
) |
|
Changes in current liabilities related to capital expenditures |
|
0.5 |
|
|
|
5.3 |
|
|
|
20.8 |
|
|
|
10.7 |
|
|
Capital expenditures |
$ |
177.8 |
|
|
$ |
210.5 |
|
|
$ |
497.7 |
|
|
$ |
544.7 |
|
| Property & equipment additions as % of revenue |
18.3 |
% |
|
|
19.4 |
% |
|
|
16.2 |
% |
|
|
16.9 |
% |
|
|
Property & Equipment Additions: |
|
|
|
|
|||||||||||
|
C&W Caribbean |
$ |
58.5 |
|
$ |
56.7 |
|
$ |
151.4 |
|
$ |
155.5 |
|
|||
|
C&W Panama |
|
30.2 |
|
|
33.7 |
|
|
71.6 |
|
|
64.5 |
|
|||
|
C&W Networks & LatAm |
|
11.7 |
|
|
11.4 |
|
|
32.0 |
|
|
35.4 |
|
|||
|
Liberty Puerto Rico |
|
63.8 |
|
|
54.2 |
|
|
154.8 |
|
|
139.1 |
|
|||
|
Liberty Costa Rica |
|
20.5 |
|
|
11.0 |
|
|
45.7 |
|
|
25.6 |
|
|||
|
VTR |
|
27.6 |
|
|
55.5 |
|
|
107.3 |
|
|
158.0 |
|
|||
|
Corporate |
|
11.7 |
|
|
9.4 |
|
|
28.3 |
|
|
20.9 |
|
|||
|
Property & equipment additions |
$ |
224.0 |
|
$ |
231.9 |
|
$ |
591.1 |
|
$ |
599.0 |
|
|||
|
Property & Equipment Additions as a Percentage of Revenue by Reportable Segment: |
|
|
|
||||||||||||
|
C&W Caribbean |
16.3 |
% |
|
16.3 |
% |
|
14.2 |
% |
|
15.1 |
% |
||||
|
C&W Panama |
17.5 |
% |
|
25.2 |
% |
|
16.2 |
% |
|
16.3 |
% |
||||
|
C&W Networks & LatAm |
11.4 |
% |
|
10.7 |
% |
|
9.8 |
% |
|
11.1 |
% |
||||
|
Liberty Puerto Rico |
17.4 |
% |
|
15.2 |
% |
|
14.1 |
% |
|
12.9 |
% |
||||
|
Liberty Costa Rica |
18.8 |
% |
|
14.1 |
% |
|
14.1 |
% |
|
17.0 |
% |
||||
|
VTR |
21.3 |
% |
|
28.7 |
% |
|
23.8 |
% |
|
25.8 |
% |
||||
|
New Build and Homes Upgraded by Reportable Segment1: |
|
|
|
|
|||||||||||
|
C&W Caribbean |
1,800 |
|
40,300 |
|
|
84,700 |
|
|
103,000 |
|
|||||
|
C&W Panama |
39,000 |
|
44,600 |
|
|
129,300 |
|
|
104,800 |
|
|||||
|
Liberty Puerto Rico |
10,400 |
|
4,400 |
|
|
24,900 |
|
|
13,100 |
|
|||||
|
Liberty Costa Rica |
14,600 |
|
16,900 |
|
|
39,300 |
|
|
33,200 |
|
|||||
|
VTR |
20,800 |
|
125,400 |
|
|
137,400 |
|
|
336,700 |
|
|||||
|
Total |
86,600 |
|
231,600 |
|
|
415,600 |
|
|
590,800 |
|
|||||
- Table excludes C&W Networks & LatAm as that segment only provides B2B-related services.
Summary of Debt, Finance Lease Obligations and Cash and Cash Equivalents
The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at September 30, 2022:
|
|
Debt |
|
Finance lease |
|
Debt and |
|
Cash and cash |
|
|
in millions |
||||||
|
|
|
|
|
|
|
|
|
|
Liberty Latin America1 |
$ 403.8 |
|
$ 0.7 |
|
$ 404.5 |
|
$ 185.9 |
|
C&W2 |
4,511.1 |
|
— |
|
4,511.1 |
|
458.3 |
|
Liberty Puerto Rico |
2,601.0 |
|
6.1 |
|
2,607.1 |
|
118.2 |
|
Liberty Costa Rica |
428.0 |
|
3.0 |
|
431.0 |
|
6.8 |
|
Total |
$ 7,943.9 |
|
$ 9.8 |
|
$ 7,953.7 |
|
$ 769.2 |
|
|
|
|
|
|
|
|
|
|
VTR3 |
$ 1,421.4 |
|
$ — |
|
$ 1,421.4 |
|
$ 63.0 |
|
|
|
|
|
|
|
|
|
|
Consolidated Leverage and Liquidity Information: |
|
September 30, |
|
June 30, |
|||
|
|
|
|
|
|
|
|
|
|
Consolidated debt and finance lease obligations to operating loss ratio |
|
(23.1)x |
|
(27.6)x |
|||
|
Consolidated net debt and finance lease obligations to operating loss ratio |
|
(21.1)x |
|
(24.3)x |
|||
|
Consolidated gross leverage ratio4 |
|
5.3x |
|
5.1x |
|||
|
Consolidated gross leverage ratio, excluding VTR4 |
|
4.9x |
|
4.9x |
|||
|
Consolidated net leverage ratio4 |
|
4.8x |
|
4.5x |
|||
|
Consolidated net leverage ratio, excluding VTR4 |
|
4.5x |
|
4.2x |
|||
|
Average debt tenor5 |
|
5.2 years |
|
5.4 years |
|||
|
Fully-swapped borrowing costs |
|
5.9% |
|
5.7% |
|||
|
Fully-swapped borrowing costs, excluding VTR |
|
5.6% |
|
5.6% |
|||
|
Unused borrowing capacity (in millions)6 |
|
$971.7 |
|
$971.0 |
|||
|
1. |
Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups. |
|
2. |
Represents the C&W borrowing group, including the C&W Caribbean, C&W Networks & LatAm and C&W Panama reporting segments. |
|
3. |
Represents the debt and finance lease obligations and cash and cash equivalents of the VTR borrowing group, which are classified as held for sale on our September 30, 2022 condensed consolidated balance sheet. In addition, the consolidated leverage and liquidity information includes the impact of the VTR borrowing group. |
|
4. |
Consolidated leverage ratios are non-GAAP measures. We provide consolidated leverage ratios that exclude VTR in light of the deconsolidation of VTR that occurred in connection with the closing of the Chile JV in October 2022. For additional information, including definitions of our consolidated leverage ratios, required reconciliations, see Non-GAAP Reconciliations below. |
|
5. |
For purposes of calculating our average tenor, total debt excludes vendor financing, finance lease obligations and the VTR debt. |
|
6. |
At September 30, 2022, the full amount of unused borrowing capacity under our subsidiaries’ revolving credit facilities was available to be borrowed, both before and after completion of the September 30, 2022 compliance reporting requirements. Amounts exclude VTR’s unused borrowing capacity of $247 million and $249 million, respectively. |
Quarterly Subscriber Variance
|
|
Fixed and Mobile Subscriber Variance Table — September 30, 2022 vs June 30, 2022 |
|||||||||||||||||||||||||||||
|
|
Homes |
|
Two-way
Homes |
|
Fixed-line |
|
Video |
|
Internet |
|
Telephony |
|
Total |
|
|
Prepaid |
|
Postpaid |
|
Total Mobile |
||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||
|
C&W Caribbean: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Jamaica |
12,700 |
|
|
12,700 |
|
|
2,500 |
|
|
(2,000 |
) |
|
3,900 |
|
|
3,800 |
|
|
5,700 |
|
|
|
34,400 |
|
|
10,100 |
|
|
44,500 |
|
|
The Bahamas |
— |
|
|
— |
|
|
5,200 |
|
|
— |
|
|
100 |
|
|
(800 |
) |
|
(700 |
) |
|
|
200 |
|
|
(400 |
) |
|
(200 |
) |
|
Trinidad and Tobago |
2,000 |
|
|
2,000 |
|
|
(1,600 |
) |
|
(500 |
) |
|
(500 |
) |
|
1,600 |
|
|
600 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
Barbados |
— |
|
|
— |
|
|
100 |
|
|
300 |
|
|
500 |
|
|
(200 |
) |
|
600 |
|
|
|
(200 |
) |
|
1,100 |
|
|
900 |
|
|
Other |
100 |
|
|
100 |
|
|
(300 |
) |
|
(800 |
) |
|
2,100 |
|
|
(600 |
) |
|
700 |
|
|
|
(2,700 |
) |
|
7,200 |
|
|
4,500 |
|
|
Total C&W Caribbean |
14,800 |
|
|
14,800 |
|
|
5,900 |
|
|
(3,000 |
) |
|
6,100 |
|
|
3,800 |
|
|
6,900 |
|
|
|
31,700 |
|
|
18,000 |
|
|
49,700 |
|
|
C&W Panama |
18,800 |
|
|
18,800 |
|
|
3,500 |
|
|
2,700 |
|
|
6,500 |
|
|
4,800 |
|
|
14,000 |
|
|
|
38,200 |
|
|
4,500 |
|
|
42,700 |
|
|
Total C&W |
33,600 |
|
|
33,600 |
|
|
9,400 |
|
|
(300 |
) |
|
12,600 |
|
|
8,600 |
|
|
20,900 |
|
|
|
69,900 |
|
|
22,500 |
|
|
92,400 |
|
|
Liberty Puerto Rico1 |
3,000 |
|
|
3,000 |
|
|
9,100 |
|
|
200 |
|
|
10,600 |
|
|
2,700 |
|
|
13,500 |
|
|
|
5,100 |
|
|
8,800 |
|
|
13,900 |
|
|
Liberty Costa Rica |
10,600 |
|
|
10,600 |
|
|
(300 |
) |
|
900 |
|
|
3,900 |
|
|
4,800 |
|
|
9,600 |
|
|
|
21,500 |
|
|
30,600 |
|
|
52,100 |
|
|
VTR |
20,800 |
|
|
21,000 |
|
|
(30,700 |
) |
|
(30,000 |
) |
|
(20,200 |
) |
|
(19,400 |
) |
|
(69,600 |
) |
|
|
(200 |
) |
|
10,800 |
|
|
10,600 |
|
|
Total Organic Change |
68,000 |
|
|
68,200 |
|
|
(12,500 |
) |
|
(29,200 |
) |
|
6,900 |
|
|
(3,300 |
) |
|
(25,600 |
) |
|
|
96,300 |
|
|
72,700 |
|
|
169,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Q3 2022 Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
C&W Caribbean – Jamaica2 |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(10,600 |
) |
|
— |
|
|
(10,600 |
) |
|
C&W Caribbean – Other3,4 |
(21,000 |
) |
|
(21,000 |
) |
|
(1,100 |
) |
|
— |
|
|
(1,800 |
) |
|
— |
|
|
(1,800 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
C&W Panama5 |
— |
|
|
— |
|
|
38,000 |
|
|
35,100 |
|
|
2,600 |
|
|
300 |
|
|
38,000 |
|
|
|
594,500 |
|
|
108,700 |
|
|
703,200 |
|
|
Liberty Puerto Rico6 |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
23,000 |
|
|
— |
|
|
23,000 |
|
|
Total Q3 2022 Adjustments |
(21,000 |
) |
|
(21,000 |
) |
|
36,900 |
|
|
35,100 |
|
|
800 |
|
|
300 |
|
|
36,200 |
|
|
|
606,900 |
|
|
108,700 |
|
|
715,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Adds |
47,000 |
|
|
47,200 |
|
|
24,400 |
|
|
5,900 |
|
|
7,700 |
|
|
(3,000 |
) |
|
10,600 |
|
|
|
703,200 |
|
|
181,400 |
|
|
884,600 |
|
|
1. |
Included in Liberty Puerto Rico’s mobile prepaid organic gain is an increase of 1,500 mobile reseller subscribers. |
|
2. |
During the second quarter of 2022, we began to shut down our 2G network in Jamaica. This non-organic adjustment represents the associated decline in mobile subscribers during the third quarter of 2022. We expect further non-organic adjustments related to the shutdown, until its completion in late 2023. |
|
3. |
The homes passed non-organic adjustment for C&W Caribbean – Other relates to the net effect of (i) the identification of overbuild of copper homes in certain markets, and (ii) the identification of additional homes passed during the process of upgrading certain parts of the network. |
|
4. |
The customer and RGU adjustments for C&W Caribbean – Other relate to the reconciliation of operating data following a system migration. |
|
5. |
C&W Panama’s non-organic adjustment relates to the Claro Panama Acquisition that closed on July 1, 2022. |
|
6. |
During the third quarter of 2022, and following the shutdown of our 3G network, we completed a reconciliation of reseller subscribers, which resulted in a non-organic increase to prepaid mobile subscribers at Liberty Puerto Rico. |
Contacts
Investor Relations
Kunal Patel [email protected]
Corporate Communications
Kim Larson [email protected]
