Liberty Latin America reports Q4 and FY 2022 results

Liberty Latin America Ltd. announced its financial and operating results for the three months (“Q4”) and twelve months (“YTD” and “FY”) ended December 31, 2022.

CEO Balan Nair commented, “We continued to drive top-line growth in the fourth quarter, led by strong performances in our C&W Caribbean and Networks & LatAm operations and in Costa Rica. Puerto Rico’s performance was impacted by residual negative impacts from Hurricane Fiona, and higher levels of promotional activity.”

“Subscriber growth underpinned our performance with continued broadband additions across our reporting segments. Mobile postpaid additions also more than doubled as compared to the prior year, fueled by our convergent offers and focus on prepaid to postpaid migration.”

“Inorganically, we have now completed our outstanding transactions and are focused on integration activities in Puerto Rico, Panama and Costa Rica, which are set to deliver significant value for stakeholders.”

“We have continued to be aggressive with our share buyback activity, purchasing a record amount during the year and taking our total since commencing activity to over $240 million as we remain confident in our plans and outlook for the business.”

“Overall, we continued to drive operating momentum in 2022 and are well positioned to create value in 2023. Our focus this year is on delivering further broadband and postpaid mobile subscriber growth, and making significant progress towards the successful integration of our acquisitions in Puerto Rico, Costa Rica and Panama. Through these actions, we expect to generate mid-to-high single digit adjusted OIBDA expansion in 2023 and strong adjusted free cash flow growth.”

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Business Highlights

  • C&W Caribbean: strong growth in FY 2022
    • Subscriber adds drove reported and rebased revenue up 3% and 4%, respectively
    • Reported and rebased Adj. OIBDA growth of 11% for the year
  • C&W Panama: strong fixed operating momentum
    • 25,000 broadband adds in the year drove fixed service revenue growth
    • Claro Panama acquisition completed; integration and synergy capture underway
  • C&W Networks & LatAm: top-line and Adj. OIBDA growth with strong margins in FY 2022
    • Reported and rebased revenue growth of 4% and 7%, respectively
    • Reported and rebased Adj. OIBDA growth of 5%
  • Liberty Puerto Rico: fixed growth driven by continued subscriber additions
    • 36,000 broadband adds in 2022, Q4 up 35% YoY
    • Adj. OIBDA impacted by Hurricane Fiona and increased promotional activity
  • Liberty Costa Rica: subscriber additions and cost control driving Adj. OIBDA growth
    • Reported and rebased revenue growth of 71% and 7%, respectively, YTD
    • Adj. OIBDA up 68% and 10% on a reported and rebased basis, respectively, YTD

FY 2023 LLA Financial Guidance

  • 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

50/50 Joint Venture with América Móvil in Chile

VTR has been deconsolidated from Liberty Latin America effective upon our contribution of VTR into the Chile JV, at the beginning of October 2022.