Sequential financial and operational growth; Q2 reported revenue
2% higher
52,000 organic internet and postpaid mobile net adds in second
quarter
Buyback acceleration in Q2; $132 million stock and convertible
bond repurchases
Reconfirmed 2023 financial guidance
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 (“Q2”) and six
months (“YTD” or “H1 2023”) ended June 30, 2023.
CEO Balan Nair commented, “Following a solid start to the year,
we continued our momentum in the second quarter with sequential
financial and operational growth and are well positioned to achieve
our 2023 financial guidance.”
“Internet subscriber growth was led by C&W Caribbean and
Panama, each generating more than 50% higher net additions
year-over-year, as we continued to invest in Giga-Ready networks
and create differentiated converged propositions. Postpaid mobile
adds were driven by Costa Rica, where our business is the leading
operator by overall market share, as well as continued growth in
C&W Caribbean supported by the return of tourism in the region.
Across fixed and mobile services, selective strategic price
increases in several markets have landed well and will help
underpin performance in the second half.”
“The group reported $1.1 billion in revenue, $140 million of
operating income, and $445 million in Adjusted OIBDA in the second
quarter. Operating income grew by $492 million, while a decline in
reported Adjusted OIBDA was driven by the deconsolidation of VTR.
Adjusted OIBDA was 4% higher on a rebased basis, year-over-year, as
we continued to focus on efficiency and benefited from our
structural operating leverage.”
“Capital allocation remains a key focus for us. Following the
renewal of our buyback authorization earlier in the year, we
accelerated activity in the second quarter, repurchasing $57
million of our equity and $74 million of convertible notes, close
to three times our aggregate first quarter activity.”
“Looking ahead to the second half of the year, we remain
confident that we will achieve our 2023 financial guidance targets
supported by continued subscriber additions and organic financial
momentum, synergies from integration activities, particularly in
Panama, and our focus on operating cost and capex discipline.”
Q2 Business Highlights
- C&W Caribbean: continued organic subscriber additions and
financial growth
- 23,000 internet and mobile postpaid organic adds
- Reported and rebased Adj. OIBDA growth of 9% and 8%,
respectively
- C&W Panama: synergies from prior year Claro Panamá
acquisition drive strong growth
- Reported and rebased revenue growth of 28% and 4%,
respectively
- Reported and rebased Adj. OIBDA growth of 33% and 42%,
respectively
- Liberty Networks: solid performance
- Reported and rebased revenue growth of 2% and 5%,
respectively
- Rebranded as “Liberty Networks”, focus on investing in
infrastructure and enterprise solutions to meet our customers'
digital and connectivity needs
- Liberty Puerto Rico: sequential mobile service revenue stable;
Adj. OIBDA growth
- RGU adds drive fixed revenue growth YoY, postpaid mobile
subscribers stable
- Migration to new mobile platform progressing
- Liberty Costa Rica: postpaid operational momentum and strong
Adj. OIBDA growth
- Prepaid to postpaid migration efforts drive postpaid adds
- Adj. OIBDA up 41% and 10% on a reported and rebased basis,
respectively
FY 2023 LLA Financial Guidance - Reconfirmed
- Adjusted OIBDA mid-to-high single digit rebased growth
- P&E additions as a percentage of revenue at ~16%
- Adjusted FCF of ~$300 million, before distributions to
noncontrolling interests
Financial and Operating Highlights
Financial Highlights
Q2 2023
Q2 2022
YoY Growth / (Decline)
YoY Rebased
Growth1
H1 2023
H1 2022
YoY Growth / (Decline)
YoY Rebased
Growth1
(USD in millions)
Revenue
$
1,123
$
1,216
(8
%)
—
%
$
2,227
$
2,432
(8
%)
1
%
Revenue (excluding VTR)2
$
1,123
$
1,066
5
%
—
%
$
2,227
$
2,112
5
%
1
%
Operating income (loss)
$
140
$
(353
)
N.M.
$
253
$
(168
)
N.M.
Adjusted OIBDA3
$
445
$
461
(3
%)
4
%
$
852
$
897
(5
%)
4
%
Adjusted OIBDA3 (excluding VTR)2
$
445
$
423
5
%
4
%
$
852
$
813
5
%
4
%
Property & equipment additions
$
192
$
192
—
%
$
337
$
367
(8
%)
As a percentage of revenue
17
%
16
%
15
%
15
%
Adjusted FCF before distributions to
noncontrolling interest owners
$
72
$
75
$
22
$
19
Distributions to noncontrolling interest
owners
$
(41
)
$
(2
)
$
(41
)
$
(2
)
Adjusted FCF4
$
31
$
73
$
(19
)
$
17
Cash provided by operating activities
$
226
$
225
$
288
$
347
Cash used by investing activities
$
(159
)
$
(154
)
$
(291
)
$
(343
)
Cash provided (used) by financing
activities
$
(97
)
$
109
$
(133
)
$
31
N.M. – Not Meaningful.
Operating Highlights5
Q2 2023
Q1 2023
Total customers
1,917,000
1,937,100
Organic customer additions
(losses)
(8,900
)
23,900
Fixed RGUs
3,874,200
3,853,500
Organic RGU additions
34,900
56,300
Organic internet additions
18,700
29,400
Mobile subscribers
8,011,500
8,027,700
Organic mobile losses
(8,000
)
(16,000
)
Organic postpaid additions
32,800
35,200
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/(decrease)
Six months ended
Increase/(decrease)
June 30,
June 30,
2023
2022
%
Rebased %
2023
2022
%
Rebased %
in millions, except %
amounts
C&W Caribbean
$
356.3
$
355.6
—
—
$
710.1
$
710.4
—
—
C&W Panama
180.8
141.6
28
4
346.1
268.8
29
4
Liberty Networks
118.6
116.4
2
5
227.3
224.0
1
5
Liberty Puerto Rico
352.0
362.8
(3
)
(3
)
717.8
729.5
(2
)
(2
)
Liberty Costa Rica
135.2
108.0
25
(1
)
264.4
215.4
23
1
VTR
—
150.0
N.M.
N.M.
—
320.8
N.M.
N.M.
Corporate
5.6
5.5
2
2
12.0
11.1
8
8
Eliminations
(25.8
)
(23.7
)
N.M.
N.M.
(51.2
)
(47.6
)
N.M.
N.M.
Total
1,122.7
1,216.2
(8
)
—
$
2,226.5
$
2,432.4
(8
)
1
Less: VTR
—
150.0
—
320.8
Total excluding VTR2
$
1,122.7
$
1,066.2
5
—
$
2,226.5
$
2,111.6
5
1
N.M. – Not Meaningful.
- Reported revenue declined by 8% for each of the three and six
months ended June 30, 2023.
- Reported revenue declined in Q2 and H1 2023 as (1) the
additions of $35 million and $70 million, respectively, from the
acquisition of América Móvil's Panama operations (Claro Panamá) on
July 1, 2022, (2) net foreign exchange benefits of $25 million and
$39 million, respectively, and (3) organic growth in Liberty
Networks and C&W Panama, were more than offset by negative
year-over-year impacts of $150 million and $321 million,
respectively, related to VTR's deconsolidation following the
formation of the Chile JV in October 2022.
Q2 2023 Revenue Growth – Segment
Highlights
- C&W Caribbean: revenue was flat year-over-year on a
reported and rebased basis.
- Fixed residential revenue increased 1% on a reported and
rebased basis. This was driven by growth in our average number of
fixed subscribers, primarily in Jamaica where we added 41,000 RGUs
over the past twelve months, and higher ARPU from our broadband and
video services.
- Mobile revenue was up 6% on a reported and rebased basis. The
increase was primarily due to a higher average number of postpaid
mobile subscribers, driven by our continued focus on fixed-mobile
convergence propositions. We have also continued to see an increase
in inbound roaming revenue as tourism has recovered in the
region.
- B2B revenue was 5% lower on both a reported and rebased basis.
The discontinuation of a non-core transit services agreement at the
beginning of 2023 at C&W Jamaica had a $10 million impact on
revenue as compared to the prior year quarter. This translates to a
280 basis point and 760 basis point impact on C&W Caribbean's
total revenue and B2B revenue growth rates, respectively and more
than offset underlying B2B growth in the period.
- C&W Panama: revenue grew by 28% and 4% 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 16% and 8% on a reported and
rebased basis, respectively. Rebased growth was driven by RGU
additions of 60,000 over the past twelve months, following
investments in our networks, products and commercial
activities.
- Mobile revenue increased by 44% on a reported basis and
declined 1% on a rebased basis. Subscription revenue was stable,
however a reduction in interconnection revenue drove the
year-over-year rebased decline.
- B2B revenue grew by 17% and 7% on a reported and rebased basis,
respectively. The year-over-year rebased performance was driven by
increased revenue from government related projects and data
services.
- Liberty Networks: revenue grew by 2% and 5% on a reported and
rebased basis, respectively. Growth on a rebased basis was driven
by higher wholesale network revenue associated with a significant
customer that is recognized on a cash basis, and growth in
enterprise-related connectivity and managed services.
- Liberty Puerto Rico: revenue was 3% lower on a reported and
rebased basis.
- Residential fixed revenue growth was driven by net subscriber
additions totaling 33,000 over the past twelve months. The prior
year period also included the negative impact of credits issued to
customers as a result of power outages.
- Residential mobile revenue was lower compared to the prior-year
period. This was driven by: (1) lower ARPU from mobile services,
due to a higher proportion of wearable devices, an increase in
discounted plans and the impact of higher contract asset
amortization following increases in handset sales and subsidy
levels over the past twelve months, (2) lower roaming revenue, (3)
reduced equipment sales in Q2 23 as subsidy levels were lowered,
and (4) a decline in the average number of prepaid mobile
subscribers.
- Sequentially, subscription revenue and ARPU were stable with
overall revenue lower primarily due to reduced handset sales
following a reduction in our handset subsidy levels.
- Liberty Costa Rica: revenue grew by 25% on a reported basis and
declined by 1% on a rebased basis. Reported performance benefited
from a $26 million positive foreign exchange impact year-over-year,
as the Costa Rican colon appreciated against the U.S. dollar. The
year-over-year rebased performance was driven by lower fixed ARPU
due to increased retention discounts and declines in higher ARPU
plans. Mobile performance was flat compared to the prior-year
period with continued commercial success migrating customers from
prepaid to postpaid plans.
Operating Income (Loss)
- Operating income (loss) was $140 million and ($353 million) for
the three months ended June 30, 2023 and 2022, respectively, and
$253 million and ($168 million) for the six months ended June 30,
2023 and 2022, respectively.
- The improvements from operating loss to operating income are
primarily due to the net impact of: (i) lower impairment,
restructuring and other operating items, net, mostly due to
goodwill impairments recorded during the second quarter of 2022,
(ii) higher depreciation and amortization and (iii) lower Adjusted
OIBDA.
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)
Six months ended
Increase (decrease)
June 30,
June 30,
2023
2022
%
Rebased %
2023
2022
%
Rebased %
in millions, except %
amounts
C&W Caribbean
$
146.3
$
134.5
9
8
$
286.5
$
264.4
8
8
C&W Panama
59.0
44.4
33
42
102.5
84.9
21
30
Liberty Networks
72.2
75.1
(4
)
(2
)
135.8
137.7
(1
)
1
Liberty Puerto Rico
141.3
146.1
(3
)
(3
)
275.7
286.7
(4
)
(4
)
Liberty Costa Rica
50.1
35.6
41
10
95.3
65.8
45
18
VTR
—
37.9
N.M.
N.M.
—
84.4
N.M.
N.M.
Corporate
(23.6
)
(12.8
)
(84
)
(81
)
(44.0
)
(26.6
)
(65
)
(62
)
Total
$
445.3
$
460.8
(3
)
4
$
851.8
$
897.3
(5
)
4
Less: VTR
—
37.9
—
84.4
Total excluding VTR2
$
445.3
$
422.9
5
4
$
851.8
$
812.9
5
4
Operating income (loss) margin
12.4
%
(29.0
)%
11.3
%
(6.9
)%
Adjusted OIBDA margin
39.7
%
37.9
%
38.3
%
36.9
%
Adjusted OIBDA margin excl. VTR2
39.7
%
39.7
%
38.3
%
38.5
%
N.M. – Not Meaningful.
- Our reported Adjusted OIBDA for the three and six months ended
June 30, 2023 declined by 3% and 5%, respectively, as compared to
the corresponding prior-year periods.
- Reported Adjusted OIBDA declined in Q2 and H1 2023 as organic
growth in C&W Panama, C&W Caribbean and Liberty Costa Rica
was more than offset by the deconsolidation of VTR.
Q2 2023 Adjusted OIBDA Growth – Segment
Highlights
- C&W Caribbean: Adjusted OIBDA increased by 9% and 8% on a
reported and rebased basis, respectively. Performance was driven by
lower direct costs, including declines in programming expenses. Our
Adjusted OIBDA margin improved by over 300 basis points
year-over-year to 41%.
- C&W Panama: Adjusted OIBDA increased on a reported and
rebased basis by 33% and 42%, respectively. Rebased growth was
driven by the aforementioned revenue performance and value capture
activities related to the Claro Panama acquisition.
- Liberty Networks: Adjusted OIBDA declined by 4% and 2% on a
reported and rebased basis, respectively. Our rebased performance
was driven by (i) higher staff costs, (ii) lower amounts of
capitalizable costs associated with licenses due to the term and
nature of service offerings, and (iii) higher software license
costs; offsetting the aforementioned revenue growth in the
quarter.
- Liberty Puerto Rico: Adjusted OIBDA declined by 3% on a
reported and rebased basis. The performance was driven by the net
impact of our aforementioned revenue decline, lower direct costs,
primarily due to reduced subsidies, and higher other operating
costs year-over-year, including higher integration costs.
- Liberty Costa Rica: Adjusted OIBDA grew by 41% and 10% on a
reported and rebased basis, respectively. Rebased performance was
driven by favorable foreign exchange movements on non-CRC
denominated costs and execution of our integration plan.
Net Earnings (Loss) Attributable to Shareholders
- Net earnings (loss) attributable to shareholders was $38
million and ($475 million) for the three months ended June 30, 2023
and 2022, respectively, and ($12 million) and ($394 million) for
the six months ended June 30, 2023 and 2022, 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, net.
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
USD in millions
Customer Premises Equipment
$
44.6
$
58.5
$
91.5
$
141.3
New Build & Upgrade
34.6
38.9
62.6
69.0
Capacity
26.2
29.3
45.6
53.9
Baseline
69.3
50.3
108.7
75.3
Product & Enablers
17.7
14.7
28.7
27.6
Property & equipment additions
192.4
191.7
337.1
367.1
Assets acquired under capital-related
vendor financing arrangements
(36.0
)
(35.6
)
(71.9
)
(67.5
)
Changes in current liabilities related to
capital expenditures and other
2.6
(1.2
)
7.9
19.5
Capital expenditures, net
$
159.0
$
154.9
$
273.1
$
319.1
Property & equipment additions as % of
revenue
17.1
%
15.8
%
15.1
%
15.1
%
Property & Equipment Additions:
C&W Caribbean
$
72.2
$
48.9
$
118.2
$
92.9
C&W Panama
25.9
26.4
45.5
41.4
Liberty Networks
13.1
12.7
23.9
20.3
Liberty Puerto Rico
54.0
46.5
101.7
91.0
Liberty Costa Rica
17.6
15.3
30.3
25.2
VTR
—
35.0
—
79.7
Corporate
9.6
6.9
17.5
16.6
Property & equipment additions
$
192.4
$
191.7
$
337.1
$
367.1
Property & Equipment Additions as a
Percentage of Revenue by Reportable Segment:
C&W Caribbean
20.3
%
13.8
%
16.6
%
13.1
%
C&W Panama
14.3
%
18.6
%
13.1
%
15.4
%
Liberty Networks
11.0
%
10.9
%
10.5
%
9.1
%
Liberty Puerto Rico
15.3
%
12.8
%
14.2
%
12.5
%
Liberty Costa Rica
13.0
%
14.2
%
11.5
%
11.7
%
VTR
N/A
23.3
%
N/A
24.8
%
New Build and Homes Upgraded by Reportable
Segment1:
C&W Caribbean
39,200
36,900
83,400
68,200
C&W Panama
25,600
46,000
52,800
90,300
Liberty Puerto Rico
15,600
7,100
24,500
14,500
Liberty Costa Rica
13,400
11,000
23,000
24,700
VTR
—
51,600
—
116,600
Total
93,800
152,600
183,700
314,300
- Table excludes Liberty Networks 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 June 30, 2023:
Debt
Finance lease
obligations
Debt and
finance lease
obligations
Cash, cash equivalents and
restricted cash related to debt
in millions
Liberty Latin America1
$
303.8
$
—
$
303.8
$
109.9
C&W2
4,640.3
—
4,640.3
474.6
Liberty Puerto Rico3
2,633.4
5.5
2,638.9
21.5
Liberty Costa Rica
456.4
2.5
458.9
34.9
Total
$
8,033.9
$
8.0
$
8,041.9
$
640.9
Consolidated Leverage and Liquidity
Information:
June 30, 2023
March 31, 2023
Consolidated debt and finance lease
obligations to operating income ratio
15.8x
17.8x
Consolidated net debt and finance lease
obligations to operating income ratio
14.5x
16.3x
Consolidated gross leverage ratio4
4.7x
4.9x
Consolidated net leverage ratio4
4.3x
4.5x
Weighted average debt tenor5
4.8 years
5.0 years
Fully-swapped borrowing costs
5.9%
5.9%
Unused borrowing capacity (in
millions)6
$956.9
$957.3
- 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.
- Represents the C&W borrowing group, including the C&W
Caribbean, Liberty Networks and C&W Panama reportable
segments.
- Cash amount includes restricted cash that serves as collateral
against certain lines of credit associated with the funding
received from the FCC to continue to expand and improve our fixed
network in Puerto Rico.
- Consolidated leverage ratios are non-GAAP measures. For
additional information, including definitions of our consolidated
leverage ratios and required reconciliations, see Non-GAAP
Reconciliations below.
- For purposes of calculating our weighted average tenor, total
debt excludes vendor financing and finance lease obligations.
- At June 30, 2023, 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 June 30,
2023 compliance reporting requirements.
Quarterly Subscriber Variance
Fixed and Mobile Subscriber
Variance Table — June 30, 2023 vs March 31, 2023
Homes Passed
Two-way Homes
Passed
Fixed-line Customer
Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Prepaid
Postpaid
Total Mobile
Subscribers
C&W Caribbean:
Jamaica
3,700
3,800
4,300
(900
)
5,800
5,800
10,700
(400
)
8,300
7,900
The Bahamas
—
100
(200
)
1,100
1,800
400
3,300
(300
)
(100
)
(400
)
Trinidad and Tobago
—
—
(2,600
)
(800
)
(2,400
)
(800
)
(4,000
)
—
—
—
Barbados
—
—
—
200
200
(400
)
—
(4,200
)
2,200
(2,000
)
Other
(100
)
(100
)
1,700
(200
)
1,100
(1,400
)
(500
)
(8,800
)
5,800
(3,000
)
Total C&W Caribbean
3,600
3,800
3,200
(600
)
6,500
3,600
9,500
(13,700
)
16,200
2,500
C&W Panama
10,100
10,100
5,800
2,400
7,700
6,400
16,500
(24,200
)
1,500
(22,700
)
Total C&W
13,700
13,900
9,000
1,800
14,200
10,000
26,000
(37,900
)
17,700
(20,200
)
Liberty Puerto Rico
900
900
(16,300
)
(1,300
)
5,800
2,300
6,800
(15,600
)
(3,400
)
(19,000
)
Liberty Costa Rica
11,600
11,500
(1,600
)
(3,200
)
(1,300
)
6,600
2,100
12,700
18,500
31,200
Total Organic Change
26,200
26,300
(8,900
)
(2,700
)
18,700
18,900
34,900
(40,800
)
32,800
(8,000
)
Q2 2023 Adjustments:
C&W Caribbean - Jamaica
—
—
—
—
—
—
—
(8,200
)
—
(8,200
)
C&W Caribbean - Other
7,800
7,800
—
—
—
—
—
—
—
—
Liberty Costa Rica
—
—
(11,200
)
(10,900
)
(2,100
)
(1,200
)
(14,200
)
—
—
—
Total Q2 2023 Adjustments:
7,800
7,800
(11,200
)
(10,900
)
(2,100
)
(1,200
)
(14,200
)
(8,200
)
—
(8,200
)
Net Adds (Losses)
34,000
34,100
(20,100
)
(13,600
)
16,600
17,700
20,700
(49,000
)
32,800
(16,200
)
ARPU per Customer Relationship
The following table provides ARPU per customer relationship for
the indicated periods:
Three months ended
FX-Neutral1
June 30, 2023
March 31, 2023
% Change
% Change
Reportable Segment:
C&W Caribbean
$
48.99
$
48.55
1
%
1
%
C&W Panama
$
37.64
$
37.74
—
%
—
%
Liberty Puerto Rico
$
76.40
$
73.95
3
%
3
%
Liberty Costa Rica2
$
47.09
$
45.64
3
%
(1
%)
Cable & Wireless Borrowing
Group
$
46.32
$
46.04
1
%
1
%
Mobile ARPU
The following table provides ARPU per mobile subscriber for the
indicated periods:
Three months ended
FX-Neutral1
June 30, 2023
March 31, 2023
% Change
% Change
Reportable Segment:
C&W Caribbean
$
14.02
$
13.91
1
%
1
%
C&W Panama
$
11.07
$
10.68
4
%
4
%
Liberty Puerto Rico
$
39.10
$
38.90
1
%
1
%
Liberty Costa Rica3
$
6.62
$
6.42
3
%
(1
%)
Cable & Wireless Borrowing
Group
$
12.53
$
12.25
2
%
2
%
- The FX-Neutral change represents the percentage change on
sequential basis adjusted for FX impacts and is calculated by
adjusting the current-period figures to reflect translation at the
foreign currency rates used to translate the sequential prior
quarter amounts.
- The ARPU per customer relationship amounts in Costa Rican
colones for the three months ended June 30, 2023 and March 31, 2023
were CRC 25,451 and CRC 25,677, respectively.
- The mobile ARPU amount in Costa Rican colones for the three
months ended June 30, 2023 and March 31, 2023 were CRC 3,579 and
CRC 3,609, respectively.
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our strategies, priorities and
objectives, performance, guidance and growth expectations for 2023;
our digital strategy, product innovation and commercial plans and
projects; subscriber growth; expectations on demand for
connectivity in the region; our anticipated integration plans,
synergies, opportunities and integration costs in Puerto Rico
following the AT&T Acquisition, in Costa Rica following the
acquisition of Telefónica's Costa Rica business and in Panama
following the acquisition of América Móvil’s Panama operations; the
strength of our balance sheet and tenor of our debt; our share
repurchase program; and other information and statements that are
not historical fact. These forward-looking statements involve
certain risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by these
statements. These risks and uncertainties include events that are
outside of our control, such as hurricanes and other natural
disasters, political or social events, and pandemics, such as
COVID-19, the uncertainties surrounding such events, the ability
and cost to restore networks in the markets impacted by hurricanes
or generally to respond to any such events; the continued use by
subscribers and potential subscribers of our services and their
willingness to upgrade to our more advanced offerings; our ability
to meet challenges from competition, to manage rapid technological
change or to maintain or increase rates to our subscribers or to
pass through increased costs to our subscribers; the effects of
changes in laws or regulation; general economic factors; our
ability to successfully acquire and integrate new businesses and
realize anticipated efficiencies from acquired businesses; the
availability of attractive programming for our video services and
the costs associated with such programming; our ability to achieve
forecasted financial and operating targets; the outcome of any
pending or threatened litigation; the ability of our operating
companies to access cash of their respective subsidiaries; the
impact of our operating companies' future financial performance, or
market conditions generally, on the availability, terms and
deployment of capital; fluctuations in currency exchange and
interest rates; the ability of suppliers and vendors to timely
deliver quality products, equipment, software, services and access;
our ability to adequately forecast and plan future network
requirements including the costs and benefits associated with
network expansions; and other factors detailed from time to time in
our filings with the Securities and Exchange Commission, including
our most recently filed Form 10-K and Form 10-Q. These
forward-looking statements speak only as of the date of this press
release. We expressly disclaim any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
About Liberty Latin America
Liberty Latin America is a leading communications company
operating in over 20 countries across Latin America and the
Caribbean under the consumer brands BTC, Flow, Liberty and Más
Móvil, and through ClaroVTR, our joint venture in Chile. The
communications and entertainment services that we offer to our
residential and business customers in the region include digital
video, broadband internet, telephony and mobile services. Our
business products and services include enterprise-grade
connectivity, data center, hosting and managed solutions, as well
as information technology solutions with customers ranging from
small and medium enterprises to international companies and
governmental agencies. In addition, Liberty Latin America operates
a subsea and terrestrial fiber optic cable network that connects
approximately 40 markets in the region.
Liberty Latin America has three separate classes of common
shares, which are traded on the NASDAQ Global Select Market under
the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC
link under the symbol “LILAB” (Class B).
For more information, please visit www.lla.com.
- Rebased growth rates are a non-GAAP measure. The indicated
growth rates are rebased for the estimated impacts of (i) an
acquisition, (ii) a disposition, (iii) the acquisition by our
Liberty Costa Rica segment of the B2B Costa Rican operations within
our Liberty Networks segment and (iv) FX. See Non-GAAP
Reconciliations below.
- We provide rebased revenue and Adjusted OIBDA growth rates,
each a non-GAAP measure, for Liberty Latin America excluding VTR in
light of the October 2022 deconsolidation of VTR that occurred in
connection with the closing of our joint venture in Chile with
América Móvil. See the tables below for the required non-GAAP
reconciliations.
- Consolidated Adjusted OIBDA is a non-GAAP measure. For the
definition of Adjusted OIBDA and required reconciliations, see
Non-GAAP Reconciliations below.
- Adjusted Free Cash Flow (“Adjusted FCF”) is a non-GAAP measure.
For the definition of Adjusted FCF and required reconciliations,
see Non-GAAP Reconciliations below.
- See Glossary for the definition of RGUs and mobile subscribers.
Organic figures exclude RGUs and mobile subscribers of acquired
entities at the date of acquisition and other non-organic
adjustments, but include the impact of changes in RGUs and mobile
subscribers from the date of acquisition. All subscriber / RGU
additions or losses refer to net organic changes, unless otherwise
noted.
Additional Information | Cable & Wireless Borrowing
Group
The following tables reflect preliminary unaudited selected
financial results, on a consolidated C&W basis, for the periods
indicated, in accordance with U.S. GAAP.
Three months ended
June 30,
Change
Rebased change1
2023
2022
in millions, except %
amounts
Revenue
$
634.5
$
594.1
7
%
2
%
Operating income (loss)
$
54.2
$
(462.4
)
(112
%)
Adjusted OIBDA
$
277.7
$
254.0
9
%
11
%
Property & equipment additions
$
111.1
$
87.9
26
%
Operating income (loss) as a percentage of
revenue
8.5
%
(77.8
)%
Adjusted OIBDA as a percentage of
revenue
43.8
%
42.8
%
Proportionate Adjusted OIBDA
$
234.8
$
219.0
Six months ended
June 30,
Change
Rebased change1
2023
2022
in millions, except %
amounts
Revenue
$
1,241.7
$
1,164.2
7
%
2
%
Operating income (loss)
$
114.8
$
(388.8
)
(130
%)
Adjusted OIBDA
$
524.7
$
487.0
8
%
10
%
Property & equipment additions
$
187.6
$
154.6
21
%
Operating income (loss) as a percentage of
revenue
9.2
%
(33.4
)%
Adjusted OIBDA as a percentage of
revenue
42.3
%
41.8
%
Proportionate Adjusted OIBDA
$
446.8
$
419.2
1. Indicated growth rates are rebased for the estimated impacts
of an acquisition, FX and the acquisition by the Liberty Costa Rica
borrowing group of the B2B Costa Rican operations within our
C&W borrowing group.
The following table details the U.S. dollar equivalent of the
nominal amount outstanding of C&W's third-party debt and cash
and cash equivalents:
June 30,
March 31,
Facility Amount
2023
2023
in millions
Credit Facilities:
Revolving Credit Facility due 2023 (LIBOR1
+ 3.25%)
$
50.0
$
—
$
—
Revolving Credit Facility due 2027 (LIBOR1
+ 3.25%)
$
580.0
—
—
Term Loan Facility B-5 due 2028 (LIBOR1 +
2.25%)
$
1,510.0
1,510.0
1,510.0
Term Loan Facility B-6 due 2029 (LIBOR1 +
3.00%)
$
590.0
590.0
590.0
Total Senior Secured Credit Facilities
2,100.0
2,100.0
4.25% CWP Term Loan due 2028
$
435.0
435.0
435.0
Regional and other debt2
129.6
62.1
Total Credit Facilities
2,664.6
2,597.1
Notes:
5.75% USD Senior Secured Notes due
2027
$
495.0
495.0
495.0
6.875% USD Senior Notes due 2027
$
1,220.0
1,220.0
1,220.0
Total Notes
1,715.0
1,715.0
Vendor financing
260.7
221.0
Total third-party debt
4,640.3
4,533.1
Less: premiums, discounts and deferred
financing costs, net
(29.0
)
(30.5
)
Total carrying amount of third-party
debt
4,611.3
4,502.6
Less: cash and cash equivalents
(474.6
)
(493.8
)
Net carrying amount of third-party
debt
$
4,136.7
$
4,008.8
- During May 2023, the terms of the agreements underlying the
C&W Credit Facilities were amended, which resulted in (i) the
replacement of LIBOR-based benchmark rates with Adjusted Term SOFR
for the C&W Term Loan B-5 Facility, the C&W Term Loan B-6
Facility and the C&W Revolving Credit Facility for interest
periods commencing after June 30, 2023, (ii) the modification of
the provisions for determining an alternative rate of interest upon
the occurrence of certain events relating to the availability of
interest rate benchmarks and (iii) certain conforming changes.
- At June 30, 2023, this amount includes $69 million of
amortizing loans which are due in three annual installments
beginning in May 2024.
- At June 30, 2023, our third-party total and proportionate net
debt was $4.1 billion and $3.9 billion, respectively, our
Fully-swapped Borrowing Cost was 5.3%, and the average tenor of our
debt obligations (excluding vendor financing) was approximately 4.6
years.
- Our portion of Adjusted OIBDA, after deducting the
noncontrolling interests' share, (“Proportionate Adjusted OIBDA”)
was $235 million for Q2 2023.
- C&W's Covenant Proportionate Net Leverage Ratio was 4.1x,
which is calculated by annualizing the last two quarters of
Covenant EBITDA in accordance with C&W's Credit Agreement.
- At June 30, 2023, we had maximum undrawn commitments of $724
million, including $94 million under our regional facilities. At
June 30, 2023, the full amount of unused borrowing capacity under
our credit facilities (including regional facilities) was available
to be borrowed, both before and after completion of the June 30,
2023 compliance reporting requirements.
Liberty Puerto Rico (LPR) Borrowing Group
The following tables reflect preliminary unaudited selected
financial results, on a consolidated Liberty Puerto Rico basis, for
the periods indicated, in accordance with U.S. GAAP:
Three months ended
June 30,
Change
2023
2022
in millions, except %
amounts
Revenue
$
352.0
$
362.8
(3
)%
Operating income
$
66.0
$
70.3
(6
)%
Adjusted OIBDA
$
141.3
$
146.1
(3
)%
Property & equipment additions
$
54.0
$
46.5
16
%
Operating income as a percentage of
revenue
18.8
%
19.4
%
Adjusted OIBDA as a percentage of
revenue
40.1
%
40.3
%
Six months ended
June 30,
Change
2023
2022
in millions, except %
amounts
Revenue
$
717.8
$
729.5
(2
)%
Operating income
$
127.6
$
136.0
(6
)%
Adjusted OIBDA
$
275.7
$
286.7
(4
)%
Property & equipment additions
$
101.7
$
91.0
12
%
Operating income as a percentage of
revenue
17.8
%
18.6
%
Adjusted OIBDA as a percentage of
revenue
38.4
%
39.3
%
The following table details the nominal amount outstanding of
Liberty Puerto Rico's third-party debt, finance lease obligations
and cash and cash equivalents:
June 30,
March 31,
Facility amount
2023
2023
in millions
Credit Facilities:
Revolving Credit Facility due 2027 (LIBOR1
+ 3.50%)
$
172.5
$
—
$
—
Term Loan Facility due 2028 (LIBOR1 +
3.75%)
$
620.0
620.0
620.0
Total Senior Secured Credit Facilities
620.0
620.0
Notes:
6.75% Senior Secured Notes due 2027
$
1,161.0
1,161.0
1,161.0
5.125% Senior Secured Notes due 2029
$
820.0
820.0
820.0
Total Notes
1,981.0
1,981.0
Vendor financing
32.4
32.4
Finance lease obligations
5.5
5.6
Total debt and finance lease
obligations
2,638.9
2,639.0
Less: premiums and deferred financing
costs, net
(25.0
)
(26.5
)
Total carrying amount of debt
2,613.9
2,612.5
Less: cash, cash equivalents and
restricted cash related to debt2
(21.5
)
(61.0
)
Net carrying amount of debt
$
2,592.4
$
2,551.5
- During May 2023, the terms of the agreements underlying the LPR
Credit Facilities were amended, which resulted in (i) the
replacement of LIBOR-based benchmark rates with Adjusted Term SOFR
for the 2028 LPR Term Loan and the LPR Revolving Credit Facility
for interest periods commencing after June 30, 2023, (ii) the
modification of the provisions for determining an alternative rate
of interest upon the occurrence of certain events relating to the
availability of interest rate benchmarks and (iii) certain
conforming changes.
- Cash amount at June 30, 2023 includes restricted cash that
serves as collateral against certain lines of credit associated
with the funding received from the FCC to continue to expand and
improve our fixed network in Puerto Rico.
- At June 30, 2023, our Fully-swapped Borrowing Cost was 6.1% and
the average tenor of our debt (excluding vendor financing) was
approximately 5.1 years.
- LPR's Covenant Consolidated Net Leverage Ratio was 4.8x, which
is calculated by annualizing the last two quarters of Covenant
EBITDA in accordance with LPR’s Group Credit Agreement.
- At June 30, 2023, we had maximum undrawn commitments of $173
million. At June 30, 2023, the full amount of unused borrowing
capacity under our revolving credit facility was available to be
borrowed, both before and after completion of the June 30, 2023
compliance reporting requirements.
Liberty Costa Rica Borrowing Group
The following tables reflect preliminary unaudited selected
financial results, on a consolidated Liberty Costa Rica basis, for
the periods indicated, in accordance with U.S. GAAP:
Three months ended
June 30,
Change
Rebased change1
2023
2022
CRC in billions, except %
amounts
Revenue
73.0
72.9
—
%
(1
%)
Operating income
13.0
10.0
30
%
Adjusted OIBDA
27.1
24.1
12
%
10
%
Property & equipment additions
9.5
10.2
(7
%)
Operating income as a percentage of
revenue
17.8
%
13.7
%
Adjusted OIBDA as a percentage of
revenue
37.1
%
33.1
%
Six months ended
June 30,
Change
Rebased change1
2023
2022
CRC in billions, except %
amounts
Revenue
145.7
142.1
3
%
1
%
Operating income
21.4
18.2
18
%
Adjusted OIBDA
52.5
43.5
21
%
18
%
Property & equipment additions
16.6
16.6
—
%
Operating income as a percentage of
revenue
14.7
%
12.8
%
Adjusted OIBDA as a percentage of
revenue
36.0
%
30.6
%
1. Indicated growth rates are rebased for the acquisition by the
Liberty Costa Rica borrowing group of the B2B Costa Rican
operations within our C&W borrowing group.
The following table details the borrowing currency and Costa
Rican colón equivalent of the nominal amount outstanding of Liberty
Costa Rica's third-party debt, finance lease obligations and cash
and cash equivalents:
June 30,
March 31,
2023
2023
Borrowing currency in
millions
CRC equivalent in
billions
10.875% Term Loan A Facility due 20311
$
50.0
27.3
27.1
10.875% Term Loan B Facility due 20311
$
400.0
218.6
216.7
Revolving Credit Facility due 2028 (SOFR2
+ 4.25%)
$
60.0
—
—
Total credit facilities
245.9
243.8
Other
3.6
3.5
Finance lease obligations
1.4
1.6
Total debt and finance lease
obligations
250.9
248.9
Less: deferred financing costs
(8.4
)
(8.3
)
Total carrying amount of debt
242.5
240.6
Less: cash and cash equivalents
(19.1
)
(17.9
)
Net carrying amount of debt
223.4
222.7
Exchange rate (CRC to $)
546.4
541.9
- From July 15, 2028 and thereafter, the interest rate is subject
to increase by 0.125% per annum for each of the two Sustainability
Performance Targets (as defined in the credit agreement) not
achieved by Liberty Costa Rica by no later than December 31,
2027.
- Reference rate based on the secured overnight financing rate
administered by the Federal Reserve Bank of New York.
- At June 30, 2023, our Fully-swapped Borrowing Cost was 10.9%
and the average tenor of our debt was approximately 7.5 years.
- LCR's Covenant Consolidated Net Leverage Ratio was 2.2x, which
is calculated by annualizing the last two quarters of Covenant
EBITDA in accordance with LCR’s Credit Agreement.
- At June 30, 2023, we had maximum undrawn commitments of $60
million. At June 30, 2023, the full amount of unused borrowing
capacity under our revolving credit facility was available to be
borrowed, both before and after completion of the June 30, 2023
compliance reporting requirements.
Subscriber Table
Consolidated Operating Data —
June 30, 2023
Homes Passed
Two-way Homes Passed
Fixed-line Customer
Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Prepaid
Postpaid
Total Mobile
Subscribers
C&W Caribbean:
Jamaica
696,200
696,200
341,600
130,400
321,400
315,800
767,600
1,114,100
91,300
1,205,400
The Bahamas
120,900
120,900
34,600
7,400
26,500
34,200
68,100
144,100
23,800
167,900
Trinidad and Tobago
340,900
340,900
150,200
100,700
135,800
94,600
331,100
—
—
—
Barbados
140,400
140,400
84,600
38,400
76,600
69,700
184,700
81,700
44,800
126,500
Other
350,500
330,600
216,700
73,800
191,200
113,700
378,700
322,000
114,000
436,000
Total C&W Caribbean
1,648,900
1,629,000
827,700
350,700
751,500
628,000
1,730,200
1,661,900
273,900
1,935,800
C&W Panama
848,600
848,700
257,300
161,900
220,700
210,600
593,200
1,609,600
360,600
1,970,200
Total C&W
2,497,500
2,477,700
1,085,000
512,600
972,200
838,600
2,323,400
3,271,500
634,500
3,906,000
Liberty Puerto Rico 1,2
1,176,100
1,176,100
551,900
241,400
537,300
262,400
1,041,100
151,000
901,300
1,052,300
Liberty Costa Rica 3
733,600
727,700
280,100
184,900
260,700
64,100
509,700
2,204,100
849,100
3,053,200
Total
4,407,200
4,381,500
1,917,000
938,900
1,770,200
1,165,100
3,874,200
5,626,600
2,384,900
8,011,500
- Prepaid mobile subscribers include 31,500 mobile reseller
subscribers.
- Postpaid mobile subscribers include 209,300 CRUs.
- Our homes passed in Liberty Costa Rica include 54,000 homes on
a third-party network that provides us long-term access.
Glossary
Adjusted OIBDA Margin – Calculated by dividing Adjusted
OIBDA by total revenue for the applicable period.
ARPU – Average revenue per unit refers to the average
monthly subscription revenue (subscription revenue excludes
interconnect, mobile handset sales and late fees) per average
customer relationship or mobile subscriber, as applicable. ARPU per
average customer relationship is calculated by dividing the average
monthly subscription revenue from residential fixed and SOHO fixed
services by the average of the opening and closing balances for
customer relationships for the indicated period. ARPU per average
mobile subscriber is calculated by dividing the average monthly
mobile service revenue by the average of the opening and closing
balances for mobile subscribers for the indicated period. Unless
otherwise indicated, ARPU per customer relationship or mobile
subscriber is not adjusted for currency impacts. ARPU per average
RGU is calculated by dividing the average monthly subscription
revenue from the applicable residential fixed service by the
average of the opening and closing balances of the applicable RGUs
for the indicated period. Unless otherwise noted, ARPU in this
release is considered to be ARPU per average customer relationship
or mobile subscriber, as applicable. Customer relationships, mobile
subscribers and RGUs of entities acquired during the period are
normalized.
Consolidated Debt and Finance Lease Obligations to Operating
Income Ratio – Defined as total principal amount of debt
outstanding (including liabilities related to vendor financing and
finance lease obligations) to annualized operating income from the
most recent two consecutive fiscal quarters.
Consolidated Net Debt and Finance Lease Obligations to
Operating Income Ratio – Defined as total principal amount of
debt outstanding (including liabilities related to vendor financing
and finance lease obligations) less cash, cash equivalents and
restricted cash related to debt to annualized operating income from
the most recent two consecutive fiscal quarters.
CRU – Corporate responsible user.
Customer Relationships – The number of customers who
receive at least one of our video, internet or telephony services
that we count as RGUs, without regard to which or to how many
services they subscribe. To the extent that RGU counts include
equivalent billing unit (“EBU”) adjustments, we reflect
corresponding adjustments to our customer relationship counts. For
further information regarding our EBU calculation, see Additional
General Notes below. Customer relationships generally are counted
on a unique premises basis. Accordingly, if an individual receives
our services in two premises (e.g., a primary home and a vacation
home), that individual generally will count as two customer
relationships. We exclude mobile-only customers from customer
relationships.
Fully-swapped Borrowing Cost – Represents the weighted
average interest rate on our debt (excluding finance leases and
including vendor financing obligations), including the effects of
derivative instruments, original issue premiums or discounts, which
includes a discount on the convertible notes issued by Liberty
Latin America associated with a conversion option feature, and
commitment fees, but excluding the impact of financing costs.
Homes Passed – Homes, residential multiple dwelling units
or commercial units that can be connected to our networks without
materially extending the distribution plant. Certain of our homes
passed counts are based on census data that can change based on
either revisions to the data or from new census results.
Internet (Broadband) RGU – A home, residential multiple
dwelling unit or commercial unit that receives internet services
over our network.
Leverage – Our gross and net leverage ratios, each a
non-GAAP measure, are defined as total debt (total principal amount
of debt outstanding, including liabilities related to vendor
financing and finance lease obligations, net of projected
derivative principal-related cash payments (receipts)) and net debt
to annualized Adjusted OIBDA of the latest two quarters. Net debt
is defined as total debt (including the convertible notes and
liabilities related to vendor financing and finance lease
obligations) less cash, cash equivalents and restricted cash
related to debt. For purposes of these calculations, debt is
measured using swapped foreign currency rates, consistent with the
covenant calculation requirements of our subsidiary debt
agreements.
Mobile Subscribers – Our mobile subscriber count
represents the number of active subscriber identification module
(“SIM”) cards in service rather than services provided. For
example, if a mobile subscriber has both a data and voice plan on a
smartphone this would equate to one mobile subscriber.
Alternatively, a subscriber who has a voice and data plan for a
mobile handset and a data plan for a laptop (via a dongle) would be
counted as two mobile subscribers. Customers who do not pay a
recurring monthly fee are excluded from our mobile telephony
subscriber counts after periods of inactivity ranging from 30 to 90
days, based on industry standards within the respective country. In
a number of countries, our mobile subscribers receive mobile
services pursuant to prepaid contracts. Our Liberty Puerto Rico
segment prepaid subscriber count includes mobile reseller
subscribers, which represent organizations that purchase minutes
and data at wholesale prices and subsequently resell it under the
purchaser's brand name. These reseller subscribers result in a
significantly lower ARPU than the remaining subscribers included in
our prepaid balance. Additionally, our Liberty Puerto Rico segment
postpaid subscriber count includes CRUs, which represent an
individual receiving mobile services through an organization that
has entered into a contract for mobile services with us and where
the organization is responsible for the payment of the CRU’s mobile
services.
NPS – Net promoter score.
Property and Equipment Addition Categories
- Customer Premises Equipment: Includes capitalizable equipment
and labor, materials and other costs directly associated with the
installation of such CPE;
- New Build & Upgrade: Includes capitalizable costs of
network equipment, materials, labor and other costs directly
associated with entering a new service area and upgrading our
existing network;
- Capacity: Includes capitalizable costs for network capacity
required for growth and services expansions from both existing and
new customers. This category covers Core and Access parts of the
network and includes, for example, fiber node splits,
upstream/downstream spectrum upgrades and optical equipment
additions in our international backbone connections;
- Baseline: Includes capitalizable costs of equipment, materials,
labor and other costs directly associated with maintaining and
supporting the business. Relates to areas such as network
improvement, property and facilities, technical sites, information
technology systems and fleet; and
- Product & Enablers: Discretionary capitalizable costs that
include investments (i) required to support, maintain, launch or
innovate in new customer products, and (ii) in infrastructure,
which drive operational efficiency over the long term.
Proportionate Net Leverage Ratio (C&W) – Calculated
in accordance with C&W's Credit Agreement, taking into account
the ratio of outstanding indebtedness (subject to certain
exclusions) less cash and cash equivalents to EBITDA (subject to
certain adjustments) for the last two quarters annualized, with
both indebtedness and EBITDA reduced proportionately to remove any
noncontrolling interests' share of the C&W group.
Revenue Generating Unit (RGU) – RGU is separately a video
RGU, internet RGU or telephony RGU. A home, residential multiple
dwelling unit, or commercial unit may contain one or more RGUs. For
example, if a residential customer in Puerto Rico subscribed to our
video service, fixed-line telephony service and broadband internet
service, the customer would constitute three RGUs. RGUs are
generally counted on a unique premises basis such that a given
premises does not count as more than one RGU for any given service.
On the other hand, if an individual receives one of our services in
two premises (e.g., a primary home and a vacation home), that
individual will count as two RGUs for that service. Each bundled
video, internet or telephony service is counted as a separate RGU
regardless of the nature of any bundling discount or promotion.
Non-paying subscribers are counted as RGUs during their free
promotional service period. Some of these subscribers may choose to
disconnect after their free service period. Services offered
without charge on a long-term basis (e.g., VIP subscribers or free
service to employees) generally are not counted as RGUs. We do not
include subscriptions to mobile services in our externally reported
RGU counts. In this regard, our RGU counts exclude our separately
reported postpaid and prepaid mobile subscribers.
SOHO – Small office/home office customers.
Telephony RGU – A home, residential multiple dwelling
unit or commercial unit that receives voice services over our
network. Telephony RGUs exclude mobile subscribers.
Two-way Homes Passed – Homes passed by those sections of
our networks that are technologically capable of providing two-way
services, including video, internet and telephony services.
U.S. GAAP – Generally accepted accounting principles in
the United States.
Video RGU – A home, residential multiple dwelling unit or
commercial unit that receives our video service over our network
primarily via a digital video signal while subscribing to any
recurring monthly service that requires the use of
encryption-enabling technology. Video RGUs that are not counted on
an EBU basis are generally counted on a unique premises basis. For
example, a subscriber with one or more set-top boxes that receives
our video service in one premises is generally counted as just one
RGU.
Additional General Notes
Most of our operations provide telephony, broadband internet,
mobile data, video or other B2B services. Certain of our B2B
service revenue is derived from SOHO customers that pay a premium
price to receive enhanced service levels along with video, internet
or telephony services that are the same or similar to the mass
marketed products offered to our residential subscribers. All mass
marketed products provided to SOHO customers, whether or not
accompanied by enhanced service levels and/or premium prices, are
included in the respective RGU and customer counts of our
operations, with only those services provided at premium prices
considered to be “SOHO RGUs” or “SOHO customers.” To the extent our
existing customers upgrade from a residential product offering to a
SOHO product offering, the number of SOHO RGUs and SOHO customers
will increase, but there is no impact to our total RGU or customer
counts. With the exception of our B2B SOHO customers, we generally
do not count customers of B2B services as customers or RGUs for
external reporting purposes.
Certain of our residential and commercial RGUs are counted on an
EBU basis, including residential multiple dwelling units and
commercial establishments, such as bars, hotels, and hospitals, in
Puerto Rico. Our EBUs are generally calculated by dividing the bulk
price charged to accounts in an area by the most prevalent price
charged to non-bulk residential customers in that market for the
comparable tier of service. As such, we may experience variances in
our EBU counts solely as a result of changes in rates.
While we take appropriate steps to ensure that subscriber and
homes passed statistics are presented on a consistent and accurate
basis at any given balance sheet date, the variability from country
to country in (i) the nature and pricing of products and services,
(ii) the distribution platform, (iii) billing systems, (iv) bad
debt collection experience and (v) other factors add complexity to
the subscriber and homes passed counting process. We periodically
review our subscriber and homes passed counting policies and
underlying systems to improve the accuracy and consistency of the
data reported on a prospective basis. Accordingly, we may from time
to time make appropriate adjustments to our subscriber and homes
passed statistics based on those reviews.
Non-GAAP Reconciliations
We include certain financial measures in this press release that
are considered non-GAAP measures, including (i) Adjusted OIBDA and
Adjusted OIBDA Margin, each on a consolidated basis, (ii) Adjusted
Free Cash Flow, (iii) rebased revenue and rebased Adjusted OIBDA
growth rates, and (iv) consolidated leverage ratios. The following
sections set forth reconciliations of the nearest GAAP measure to
our non-GAAP measures, as well as information on how and why
management of the Company believes such information is useful to an
investor.
Adjusted OIBDA
On a consolidated basis, Adjusted OIBDA, a non-GAAP measure, is
the primary measure used by our chief operating decision maker to
evaluate segment operating performance. Adjusted OIBDA is also a
key factor that is used by our internal decision makers to
determine how to allocate resources to segments. As we use the
term, Adjusted OIBDA is defined as operating income or loss before
share-based compensation, depreciation and amortization, provisions
and provision releases related to significant litigation and
impairment, restructuring and other operating items. Other
operating items include (i) gains and losses on the disposition of
long-lived assets, (ii) third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions,
including legal, advisory and due diligence fees, as applicable,
and (iii) other acquisition-related items, such as gains and losses
on the settlement of contingent consideration. Our internal
decision makers believe Adjusted OIBDA is a meaningful measure
because it represents a transparent view of our recurring operating
performance that is unaffected by our capital structure and allows
management to (i) readily view operating trends, (ii) perform
analytical comparisons and benchmarking between segments and (iii)
identify strategies to improve operating performance in the
different countries in which we operate. We believe our Adjusted
OIBDA measure is useful to investors because it is one of the bases
for comparing our performance with the performance of other
companies in the same or similar industries, although our measure
may not be directly comparable to similar measures used by other
public companies. Adjusted OIBDA should be viewed as a measure of
operating performance that is a supplement to, and not a substitute
for, operating income or loss, net earnings or loss and other U.S.
GAAP measures of income. A reconciliation of our operating income
or loss to total Adjusted OIBDA is presented in the following
table:
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
in millions
Operating income (loss)
$
139.5
$
(352.9
)
$
252.5
$
(168.3
)
Share-based compensation expense
24.5
31.8
53.7
61.8
Depreciation and amortization
240.5
213.3
475.1
427.4
Impairment, restructuring and other
operating items, net
40.8
568.6
70.5
576.4
Adjusted OIBDA
$
445.3
$
460.8
$
851.8
$
897.3
Operating income (loss) margin1
12.4
%
(29.0
)%
11.3
%
(6.9
)%
Adjusted OIBDA margin2
39.7
%
37.9
%
38.3
%
36.9
%
- Calculated by dividing operating income (loss) by total revenue
for the applicable period.
- Calculated by dividing Adjusted OIBDA by total revenue for the
applicable period.
Adjusted Free Cash Flow Definition and Reconciliation
We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP
measure, as net cash provided by our operating activities, plus (i)
cash payments for third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions, (ii)
expenses financed by an intermediary, (iii) insurance recoveries
related to damaged and destroyed property and equipment and (iv)
certain net interest payments or receipts incurred or received,
including associated derivative instrument payments and receipts,
in advance of a significant acquisition, less (a) capital
expenditures, net, (b) principal payments on amounts financed by
vendors and intermediaries, (c) principal payments on finance
leases, and (d) distributions to noncontrolling interest owners. We
believe that our presentation of Adjusted FCF provides useful
information to our investors because this measure can be used to
gauge our ability to service debt and fund new investment
opportunities. Adjusted FCF should not be understood to represent
our ability to fund discretionary amounts, as we have various
mandatory and contractual obligations, including debt repayments,
which are not deducted to arrive at this amount. Investors should
view Adjusted FCF as a supplement to, and not a substitute for,
U.S. GAAP measures of liquidity included in our consolidated
statements of cash flows.
The following table provides the reconciliation of our net cash
provided by operating activities to Adjusted FCF for the indicated
period:
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
in millions
Net cash provided by operating
activities
$
225.6
$
224.8
$
288.0
$
347.1
Cash payments for direct acquisition and
disposition costs
2.1
1.4
3.5
3.1
Expenses financed by an intermediary1
52.6
47.7
93.9
79.4
Capital expenditures, net
(159.0
)
(154.9
)
(273.1
)
(319.1
)
Principal payments on amounts financed by
vendors and intermediaries
(49.2
)
(46.4
)
(89.4
)
(93.7
)
Pre-acquisition interest payments,
net2
—
2.4
—
2.4
Principal payments on finance leases
(0.3
)
—
(0.5
)
(0.2
)
Adjusted FCF before distributions to
noncontrolling interest owners
71.8
75.0
22.4
19.0
Distributions to noncontrolling interest
owners
(40.8
)
(1.9
)
(41.2
)
(1.9
)
Adjusted FCF
$
31.0
$
73.1
$
(18.8
)
$
17.1
- For purposes of our condensed consolidated statements of cash
flows, expenses, including value-added taxes, financed by an
intermediary are treated as operating cash outflows and financing
cash inflows when the expenses are incurred. When we pay the
financing intermediary, we record financing cash outflows in our
condensed consolidated statements of cash flows. For purposes of
our Adjusted FCF definition, we add back the operating cash
outflows when these financed expenses are incurred and deduct the
financing cash outflows when we pay the financing
intermediary.
- The amounts for the 2022 periods relate to the portion of
interest paid that relates to the pre-acquisition debt for the
Claro Panama Acquisition.
Rebase Information
Rebase growth rates are a non-GAAP measure. For purposes of
calculating rebased growth rates on a comparable basis for all
businesses that we owned during the current year, we have adjusted
our historical revenue and Adjusted OIBDA to include or exclude the
pre-acquisition amounts of acquired, disposed or transferred
business, as applicable, to the same extent they are included or
excluded from the current year. The businesses that were acquired,
disposed or transferred impacting the comparative periods are as
follows:
- Claro Panama, which was acquired on July 1, 2022;
- VTR, which was deconsolidated as of October 6, 2022; and
- the January 2023 acquisition by our Liberty Costa Rica segment
of the B2B Costa Rican operations within our Liberty Networks
segment.
In addition, we reflect the translation of our rebased amounts
for the prior-year periods at the applicable average foreign
currency exchange rates that were used to translate our results for
the corresponding current-year periods.
We have reflected the revenue and Adjusted OIBDA of acquired
entities in our prior-year rebased amounts based on what we believe
to be the most reliable information that is currently available to
us (generally pre-acquisition financial statements), as adjusted
for the estimated effects of (a) any significant differences
between U.S. GAAP and local generally accepted accounting
principles, (b) any significant effects of acquisition accounting
adjustments, (c) any significant differences between our accounting
policies and those of the acquired entities and (d) other items we
deem appropriate. We do not adjust pre-acquisition periods to
eliminate nonrecurring items or to give retroactive effect to any
changes in estimates that might be implemented during
post-acquisition periods. As we did not own or operate the acquired
entities during the pre-acquisition periods, no assurance can be
given that we have identified all adjustments necessary to present
their revenue and Adjusted OIBDA on a basis that is comparable to
the corresponding post-acquisition amounts that are included in our
historical results or that the pre-acquisition financial statements
we have relied upon do not contain undetected errors. In addition,
the rebased growth percentages are not necessarily indicative of
the revenue and Adjusted OIBDA that would have occurred if these
transactions had occurred on the dates assumed for purposes of
calculating our rebased amounts or the revenue and Adjusted OIBDA
that will occur in the future. The rebased growth percentages have
been presented as a basis for assessing growth rates on a
comparable basis and should be viewed as measures of operating
performance that are a supplement to, and not a substitute for,
U.S. GAAP reported growth rates.
The following tables provide the aforementioned adjustments made
to the revenue and Adjusted OIBDA amounts for the periods
indicated, to derive our rebased growth rates. Due to rounding,
certain rebased growth rate percentages may not recalculate.
In the tables set forth below:
- reported percentage changes are calculated as current period
measure, as applicable, less prior-period measure divided by
prior-period measure; and
- rebased percentage changes are calculated as current period
measure, as applicable, less rebased prior-period measure divided
by rebased prior-period measure.
The following tables set forth the reconciliation from reported
revenue to rebased revenue and related change calculations.
Three months ended June 30,
2022
C&W Caribbean
C&W Panama
Liberty Networks
Liberty Puerto Rico
Liberty Costa Rica
VTR
Corporate
Intersegment
eliminations
Total
In millions
Revenue – Reported
$
355.6
$
141.6
$
116.4
$
362.8
$
108.0
$
150.0
$
5.5
$
(23.7
)
$
1,216.2
Rebase adjustments:
Acquisition
—
33.1
—
—
—
—
—
—
33.1
Disposition
—
—
—
—
—
(150.0
)
—
—
(150.0
)
Foreign currency
0.8
—
(2.1
)
—
26.9
—
—
(0.2
)
25.4
Other1
—
—
(1.6
)
—
1.6
—
—
—
—
Revenue – Rebased
$
356.4
$
174.7
$
112.7
$
362.8
$
136.5
$
—
$
5.5
$
(23.9
)
$
1,124.7
Reported percentage change
—
%
28
%
2
%
(3
)%
25
%
N.M.
2
%
N.M.
(8
)%
Rebased percentage change
—
%
4
%
5
%
(3
)%
(1
)%
N.M.
2
%
N.M.
—
%
N.M. – Not Meaningful.
Six months ended June 30,
2022
C&W Caribbean
C&W Panama
Liberty Networks
Liberty Puerto Rico
Liberty Costa Rica
VTR
Corporate
Intersegment
eliminations
Total
In millions
Revenue – Reported
$
710.4
$
268.8
$
224.0
$
729.5
$
215.4
$
320.8
$
11.1
$
(47.6
)
$
2,432.4
Rebase adjustments:
Acquisitions
—
64.3
—
—
—
—
—
—
64.3
Disposition
—
—
—
—
—
(320.8
)
—
—
(320.8
)
Foreign currency
2.1
—
(5.3
)
—
42.6
—
—
—
39.4
Other1
—
—
(3.2
)
—
3.2
—
—
—
—
Revenue – Rebased
$
712.5
$
333.1
$
215.5
$
729.5
$
261.2
$
—
$
11.1
$
(47.6
)
$
2,215.3
Reported percentage change
—
%
29
%
1
%
(2
)%
23
%
N.M.
8
%
N.M.
(8
)%
Rebased percentage change
—
%
4
%
5
%
(2
)%
1
%
N.M.
8
%
N.M.
1
%
N.M. – Not Meaningful.
- On January 1, 2023, the B2B Costa Rican operation within our
Liberty Networks segment was acquired by our Liberty Costa Rica
segment. This acquisition did not have a significant impact on the
financial results of our Liberty Networks or Liberty Costa Rica
segments.
The following tables set forth the reconciliation from reported
Adjusted OIBDA to rebased Adjusted OIBDA and related change
calculations.
Three months ended June 30,
2022
C&W Caribbean
C&W Panama
Liberty Networks
Liberty Puerto Rico
Liberty Costa Rica
VTR
Corporate
Total
In millions
Adjusted OIBDA – Reported
$
134.5
$
44.4
$
75.1
$
146.1
$
35.6
$
37.9
$
(12.8
)
$
460.8
Rebase adjustments:
Acquisition
—
(3.0
)
—
—
—
—
—
(3.0
)
Disposition
—
—
—
—
—
(37.9
)
(0.5
)
(38.4
)
Foreign currency
0.5
—
(0.8
)
—
8.8
—
—
8.5
Other1
—
—
(0.9
)
—
0.9
—
—
—
Adjusted OIBDA – Rebased
$
135.0
$
41.4
$
73.4
$
146.1
$
45.3
$
—
$
(13.3
)
$
427.9
Reported percentage change
9
%
33
%
(4
)%
(3
)%
41
%
N.M.
(84
)%
(3
)%
Rebased percentage change
8
%
42
%
(2
)%
(3
)%
10
%
N.M.
(81
)%
4
%
N.M. – Not Meaningful.
Six months ended June 30,
2022
C&W Caribbean
C&W Panama
Liberty Networks
Liberty Puerto Rico
Liberty Costa Rica
VTR
Corporate
Total
In millions
Adjusted OIBDA – Reported
$
264.4
$
84.9
$
137.7
$
286.7
$
65.8
$
84.4
$
(26.6
)
$
897.3
Rebase adjustments:
Acquisitions
—
(6.0
)
—
—
—
—
—
(6.0
)
Disposition
—
—
—
—
—
(84.4
)
(0.9
)
(85.3
)
Foreign currency
0.8
—
(1.6
)
—
13.2
—
—
12.4
Other1
—
—
(1.7
)
—
1.7
—
—
—
Adjusted OIBDA – Rebased
$
265.2
$
78.9
$
134.4
$
286.7
$
80.7
$
—
$
(27.5
)
$
818.4
Reported percentage change
8
%
21
%
(1
)%
(4
)%
45
%
N.M.
(65
)%
(5
)%
Rebased percentage change
8
%
30
%
1
%
(4
)%
18
%
N.M.
(62
)%
4
%
N.M. – Not Meaningful.
- On January 1, 2023, the B2B Costa Rican operation within our
Liberty Networks segment was acquired by our Liberty Costa Rica
segment. This acquisition did not have a significant impact on the
financial results of our Liberty Networks or Liberty Costa Rica
segments.
The following tables set forth the reconciliations from reported
revenue by product for our C&W Caribbean segment to rebased
revenue by product and related change calculations.
Three months ended June 30,
2022
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
128.1
$
93.9
$
222.0
$
133.6
$
355.6
Rebase adjustment:
Foreign currency
—
0.3
0.3
0.5
0.8
Revenue by product – Rebased
$
128.1
$
94.2
$
222.3
$
134.1
$
356.4
Reported percentage change
1
%
6
%
3
%
(5
)%
—
%
Rebased percentage change
1
%
6
%
3
%
(5
)%
—
%
Six months ended June 30,
2022
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
258.9
$
184.9
$
443.8
$
266.6
$
710.4
Rebase adjustment:
Foreign currency
0.6
0.6
1.2
0.9
2.1
Revenue by product – Rebased
$
259.5
$
185.5
$
445.0
$
267.5
$
712.5
Reported percentage change
(1
)%
9
%
3
%
(5
)%
—
%
Rebased percentage change
(1
)%
8
%
3
%
(5
)%
—
%
The following tables set forth the reconciliations from reported
revenue by product for our C&W Panama segment to rebased
revenue by product and related change calculations.
Three months ended June 30,
2022
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
25.9
$
55.0
$
80.9
$
60.7
$
141.6
Rebase adjustment:
Acquisition
2.0
25.1
27.1
6.0
33.1
Revenue by product – Rebased
$
27.9
$
80.1
$
108.0
$
66.7
$
174.7
Reported percentage change
16
%
44
%
35
%
17
%
28
%
Rebased percentage change
8
%
(1
)%
1
%
7
%
4
%
Six months ended June 30,
2022
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
In millions
Revenue by product – Reported
$
51.8
$
108.4
$
160.2
$
108.6
$
268.8
Rebase adjustment:
Acquisition
4.0
48.8
52.8
11.5
64.3
Revenue by product – Rebased
$
55.8
$
157.2
$
213.0
$
120.1
$
333.1
Reported percentage change
15
%
45
%
36
%
18
%
29
%
Rebased percentage change
7
%
—
%
2
%
7
%
4
%
Non-GAAP Reconciliation for Consolidated Leverage
Ratios
We have set forth below our consolidated leverage and net
leverage ratios. Our consolidated leverage and net leverage ratios
(Consolidated Leverage Ratios), each a non-GAAP measure, are
defined as (i) the principal amount of debt and finance lease
obligations less cash and cash equivalents and restricted cash
related to debt divided by (ii) last two quarters of annualized
Adjusted OIBDA as of June 30, 2023. We generally use Adjusted OIBDA
for the last two quarters annualized when calculating our
Consolidated Leverage Ratios to maintain as much consistency as
possible with the calculations established by our debt covenants
included in the credit facilities or bond indentures for our
respective borrowing groups, which are predominantly determined on
a last two quarters annualized basis. For purposes of these
calculations, adjusted total debt and finance lease obligations is
measured using swapped foreign currency rates. We believe our
consolidated leverage and net leverage ratios are useful because
they allow our investors to consider the aggregate leverage on the
business inclusive of any leverage at the Liberty Latin America
level, not just at each of our operations. Investors should view
consolidated leverage and net leverage as supplements to, and not
substitutes for, the ratios calculated based upon measures
presented in accordance with U.S. GAAP. Reconciliations of the
numerator and denominator used to calculate the consolidated
leverage and net leverage ratios as of June 30, 2023 and March 31,
2023 are set forth below:
June 30, 2023
March 31, 2023
in millions, except leverage
ratios
Total debt and finance lease
obligations
$
7,958.4
$
7,915.2
Discounts, premiums and deferred financing
costs, net
83.5
94.5
Adjusted total debt and finance lease
obligations
8,041.9
8,009.7
Less:
Cash and cash equivalents
632.9
671.8
Restricted cash related to debt1
8.0
—
Net debt and finance lease
obligations
$
7,409.0
$
7,337.9
Operating income2:
Operating income for the three months
ended December 31, 2022
N/A
$
109.5
Operating income for the three months
ended March 31, 2023
$
113.0
113.0
Operating income for the three months
ended June 30, 2023
139.5
N/A
Operating income – last two quarters
252.5
222.5
Annualized operating income – last two
quarters annualized
$
505.0
$
445.0
Adjusted OIBDA3:
Adjusted OIBDA for the three months ended
December 31, 2022
N/A
$
405.2
Adjusted OIBDA for the three months ended
March 31, 2023
$
406.5
406.5
Adjusted OIBDA for the three months ended
June 30, 2023
445.3
N/A
Adjusted OIBDA – last two quarters
$
851.8
$
811.7
Annualized Adjusted OIBDA – last two
quarters annualized
$
1,703.6
$
1,623.4
Consolidated debt and finance lease
obligations to operating income ratio
15.8 x
17.8 x
Consolidated net debt and finance lease
obligations to operating income ratio
14.5 x
16.3 x
Consolidated leverage ratio
4.7 x
4.9 x
Consolidated net leverage ratio
4.3 x
4.5 x
N/A – Not Applicable.
- Amount relates to restricted cash at Liberty Puerto Rico that
serves as collateral against certain lines of credit associated
with the funding received from the FCC to continue to expand and
improve our fixed network in Puerto Rico.
- Operating income or loss is the closest U.S. GAAP measure to
Adjusted OIBDA, as discussed in Adjusted OIBDA above. Accordingly,
we have presented consolidated debt and finance lease obligations
to operating income and consolidated net debt and finance lease
obligations to operating income as the most directly comparable
financial ratios to our non-GAAP consolidated leverage and
consolidated net leverage ratios.
- Adjusted OIBDA is a non-GAAP measure. See Adjusted OIBDA above
for reconciliation of Adjusted OIBDA to the nearest U.S. GAAP
measure for the three months ended June 30, 2023. A reconciliation
of our operating income to Adjusted OIBDA for the three months
ended December 31, 2022 and March 31, 2023 is presented in the
following table:
Three months ended
March 31, 2023
December 31, 2022
in millions
Operating income
$
113.0
$
109.5
Share-based compensation expense
29.2
10.9
Depreciation and amortization
234.6
249.0
Impairment, restructuring and other
operating items, net
29.7
35.8
Adjusted OIBDA
$
406.5
$
405.2
Non-GAAP Reconciliations for Our Borrowing Groups
The financial statements of each of our borrowing groups are
prepared in accordance with U.S. GAAP. We include certain financial
measures for our C&W, Liberty Puerto Rico and Liberty Costa
Rica borrowing groups in this press release that are considered
non-GAAP measures, including: (i) Adjusted OIBDA; (ii) Adjusted
OIBDA Margin; (iii) Proportionate Adjusted OIBDA, (iv) rebased
revenue and (v) rebased Adjusted OIBDA.
Adjusted OIBDA is defined as operating income or loss before
share-based compensation, depreciation and amortization,
related-party fees and allocations, provisions and provision
releases related to significant litigation and impairment,
restructuring and other operating items. Proportionate Adjusted
OIBDA is defined as Adjusted OIBDA less the noncontrolling
interests' share of Adjusted OIBDA. We believe these measures at
the borrowing group level are useful to investors because they are
one of the bases for comparing our performance with the performance
of other companies in the same or similar industries, although our
measures may not be directly comparable to similar measures used by
other public companies. These measures should be viewed as measures
of operating performance that are a supplement to, and not a
substitute for, operating income or loss, net earnings or loss and
other U.S. GAAP measures of income.
A reconciliation of C&W's operating income (loss) to
Adjusted OIBDA and Proportionate Adjusted OIBDA is presented in the
following table:
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
in millions
Operating income (loss)
$
54.2
$
(462.4
)
$
114.8
$
(388.8
)
Share-based compensation expense
7.7
9.9
13.9
18.4
Depreciation and amortization
150.6
132.8
298.2
270.3
Related-party fees and allocations
28.2
14.2
43.6
24.1
Impairment, restructuring and other
operating items, net
37.0
559.5
54.2
563.0
Adjusted OIBDA
277.7
254.0
524.7
487.0
Noncontrolling interests' share of
Adjusted OIBDA
42.9
35.0
77.9
67.8
Proportionate Adjusted OIBDA
$
234.8
$
219.0
$
446.8
$
419.2
A reconciliation of Liberty Puerto Rico's operating income to
Adjusted OIBDA is presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
in millions
Operating income
$
66.0
$
70.3
$
127.6
$
136.0
Share-based compensation expense
1.7
1.6
3.5
4.8
Depreciation and amortization
58.8
58.4
114.7
116.1
Related-party fees and allocations
12.4
15.3
24.5
27.9
Impairment, restructuring and other
operating items, net
2.4
0.5
5.4
1.9
Adjusted OIBDA
$
141.3
$
146.1
$
275.7
$
286.7
A reconciliation of Liberty Costa Rica's operating income to
Adjusted OIBDA is presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2023
2022
2023
2022
CRC in billions
Operating income
13.0
10.0
21.4
18.2
Share-based compensation expense
0.2
0.3
0.3
0.9
Depreciation and amortization
13.6
13.0
26.4
23.5
Related-party fees and allocations
0.3
0.4
0.6
0.7
Impairment, restructuring and other
operating items, net
—
0.4
3.8
0.2
Adjusted OIBDA
27.1
24.1
52.5
43.5
The following tables set forth the reconciliations from reported
revenue for our C&W borrowing group to rebased revenue and
related change calculations (USD in millions).
Three months ended June 30,
2022
Six months ended June 30,
2022
In millions
Revenue – Reported
$
594.1
$
1,164.2
Rebase adjustments:
Acquisition
33.1
64.3
Foreign currency
(1.2
)
(3.1
)
Other1
(1.6
)
(3.2
)
Revenue – Rebased
$
624.4
$
1,222.2
Reported percentage change
7
%
7
%
Rebased percentage change
2
%
2
%
- On January 1, 2023, the B2B Costa Rican operation within our
C&W borrowing group was sold to our Liberty Costa Rica
borrowing group. This sale did not have a significant impact on the
financial results of our C&W borrowing group.
The following table sets forth the reconciliation from Adjusted
OIBDA for our C&W borrowing group to rebased Adjusted OIBDA and
related change calculations.
Three months ended June 30,
2022
Six months ended June 30,
2022
In millions
Adjusted OIBDA – Reported
$
254.0
$
487.0
Rebase adjustments:
Acquisition
(3.0
)
(6.0
)
Foreign currency
(0.3
)
(0.8
)
Other1
(0.9
)
(1.7
)
Adjusted OIBDA – Rebased
$
249.8
$
478.5
Reported percentage change
9
%
8
%
Rebased percentage change
11
%
10
%
- On January 1, 2023, the B2B Costa Rican operation within our
C&W borrowing group was sold to our Liberty Costa Rica
borrowing group. This sale did not have a significant impact on the
financial results of our C&W borrowing group.
The following table sets forth the reconciliations from reported
revenue for our Liberty Costa Rica borrowing group to rebased
revenue and related change calculations.
Three months ended June 30,
2022
Six months ended June 30,
2022
CRC in billions
Revenue – As reported
72.9
142.1
Rebased adjustment – Other1
0.9
1.8
Revenue – As rebased
73.8
143.9
Reported percent change
—
%
3
%
Rebased percent change
(1
)%
1
%
- On January 1, 2023, the B2B Costa Rican operation within our
C&W borrowing group was acquired by our Liberty Costa Rica
borrowing group. This acquisition did not have a significant impact
on the financial results of Liberty Costa Rica.
The following table sets forth the reconciliations from reported
Adjusted OIBDA for our Liberty Costa Rica borrowing group to
rebased Adjusted OIBDA and related change calculations.
Three months ended June 30,
2022
Six months ended June 30,
2022
CRC in billions
Adjusted OIBDA – Reported
24.1
43.5
Rebased adjustment – Other1
0.5
1.0
Adjusted OIBDA – Rebased
24.6
44.5
Reported percent change
12
%
21
%
Rebased percent change
10
%
18
%
- On January 1, 2023, the B2B Costa Rican operation within our
C&W borrowing group was acquired by our Liberty Costa Rica
borrowing group. This acquisition did not have a significant impact
on the financial results of Liberty Costa Rica.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808154992/en/
Investor Relations Kunal Patel ir@lla.com Corporate
Communications Kim Larson llacommunications@lla.com
Liberty Latin America (NASDAQ:LILAK)
Historical Stock Chart
From Nov 2024 to Dec 2024
Liberty Latin America (NASDAQ:LILAK)
Historical Stock Chart
From Dec 2023 to Dec 2024
