Liberty Latin America Reports Q4 & FY 2023 Results
186,000 organic broadband and postpaid mobile subscriber net adds in 2023
Operating income of
Cash provided by operating activities of
Repurchased
CEO
“Our commitment to investing in leading infrastructure has created robust, high-speed networks across our fixed, mobile and subsea platforms. At the end of 2023, over 80% of our fixed networks had been upgraded to enable speeds in excess of 1 Gbps and this investment helped us add 81,000 broadband subscribers during the year. Our postpaid mobile base also grew strongly as we added 105,000 subscribers, primarily in
“In addition to our significant organic opportunities, completing the migration of mobile customers in
“As we approach the completion of key migration activities we feel it is the right moment to share our medium-term outlook for LLA. We anticipate delivering a mid to high single digit Adjusted OIBDA rebased CAGR and aggregate Adjusted FCF before distributions to noncontrolling interests of more than
Business Highlights
-
C&W Caribbean: operating momentum and double-digit Adj. OIBDA growth
- ~100,000 internet and mobile postpaid organic adds in 2023
- FY reported and rebased Adj. OIBDA growth of 12%
-
C&W Panama: Claro Panamá acquisition synergies drive significant annual growth
- FY reported and rebased revenue growth of 16% and 5%, respectively
- FY reported and rebased Adj. OIBDA growth of 21% and 25%, respectively
-
Liberty Networks: solid top-line performance
- FY reported and rebased revenue growth of 1% and 2%, respectively
- Strong enterprise services growth
-
Liberty
Puerto Rico : continued broadband growth; entering final months of mobile integration- 23,000 broadband net adds over last twelve months
- >800,000 mobile subscribers migrated to LPR platform
-
Liberty Costa Rica : postpaid momentum, B2B and strong currency drive Adj. OIBDA growth- Strongest postpaid net adds quarter of 2023; 87,000 total postpaid net adds in year
- FY Adj. OIBDA up 51% and 23% on a reported and rebased basis, respectively
Tower Monetization Transaction Update
-
During Q4 2023, we completed the monetization of tower assets across
Panama ,Jamaica ,Puerto Rico ,Barbados and theBritish Virgin Islands -
Received
$244 million of proceeds associated with the Tower Transactions in Q4, reflected as debt in our financial statements -
Anticipate
Bahamas portion of the transaction will complete in the first half of 2024, generating additional proceeds of~$70 million
-
Received
LLA Medium-Term Financial Guidance (3 years ending FY 2026)
-
Adjusted OIBDA: mid-to-high single digit rebased CAGR
- Expected to drive reduction in group net leverage
- P&E additions as a percentage of revenue at ~16% annually
-
Aggregate Adjusted FCF of >
$1 billion , before distributions to noncontrolling interests
Financial and Operating Highlights
Financial Highlights |
|
Q4 2023 |
|
Q4 2022 |
|
YoY Growth /
|
|
YoY Rebased Growth /
|
|
FY 2023 |
|
FY 2022 |
|
YoY Growth /
|
|
YoY Rebased
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(USD in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue |
|
$ |
1,164 |
|
|
$ |
1,159 |
|
|
— |
% |
|
(1 |
%) |
|
$ |
4,511 |
|
|
$ |
4,809 |
|
|
(6 |
%) |
|
— |
% |
Revenue (excluding VTR)2 |
|
$ |
1,164 |
|
|
$ |
1,159 |
|
|
— |
% |
|
(1 |
%) |
|
$ |
4,511 |
|
|
$ |
4,358 |
|
|
4 |
% |
|
— |
% |
Operating income |
|
$ |
113 |
|
|
$ |
107 |
|
|
6 |
% |
|
|
|
$ |
518 |
|
|
$ |
87 |
|
|
N.M. |
|
|
|||
Adjusted OIBDA3 |
|
$ |
432 |
|
|
$ |
403 |
|
|
7 |
% |
|
6 |
% |
|
$ |
1,702 |
|
|
$ |
1,710 |
|
|
— |
% |
|
6 |
% |
Adjusted OIBDA3 (excluding VTR)2 |
|
$ |
432 |
|
|
$ |
403 |
|
|
7 |
% |
|
6 |
% |
|
$ |
1,702 |
|
|
$ |
1,594 |
|
|
7 |
% |
|
6 |
% |
Property & equipment additions |
|
$ |
207 |
|
|
$ |
225 |
|
|
(8 |
%) |
|
|
|
$ |
731 |
|
|
$ |
816 |
|
|
(10 |
%) |
|
|
||
As a percentage of revenue |
|
|
18 |
% |
|
|
19 |
% |
|
|
|
|
|
|
16 |
% |
|
|
17 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted FCF before distributions to noncontrolling interest owners |
|
$ |
218 |
|
|
$ |
210 |
|
|
|
|
|
|
$ |
273 |
|
|
$ |
190 |
|
|
|
|
|
||||
Distributions to noncontrolling interest owners |
|
$ |
(34 |
) |
|
$ |
— |
|
|
|
|
|
|
$ |
(75 |
) |
|
$ |
(2 |
) |
|
|
|
|
||||
Adjusted FCF4 |
|
$ |
184 |
|
|
$ |
210 |
|
|
|
|
|
|
$ |
198 |
|
|
$ |
189 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash provided by operating activities |
|
$ |
391 |
|
|
$ |
377 |
|
|
|
|
|
|
$ |
897 |
|
|
$ |
869 |
|
|
|
|
|
||||
Cash used by investing activities |
|
$ |
(163 |
) |
|
$ |
(378 |
) |
|
|
|
|
|
$ |
(616 |
) |
|
$ |
(1,123 |
) |
|
|
|
|
||||
Cash provided (used) by financing activities |
|
$ |
193 |
|
|
$ |
(51 |
) |
|
|
|
|
|
$ |
(62 |
) |
|
$ |
(29 |
) |
|
|
|
|
N.M. – Not Meaningful.
Amounts may not recalculate due to rounding.
Operating Highlights5 |
|
Q4 2023 |
|
Q3 2023 |
|||||
|
|
|
|
|
|||||
Total customers |
|
1,950,900 |
|
|
1,942,300 |
||||
Organic customer additions |
|
10,600 |
|
|
3,700 |
||||
Fixed RGUs |
|
3,933,400 |
|
|
3,898,000 |
||||
Organic RGU additions |
|
39,200 |
|
|
23,800 |
||||
Organic internet additions |
|
17,900 |
|
|
15,300 |
||||
Mobile subscribers |
|
7,977,400 |
|
|
8,033,000 |
||||
Organic mobile additions (losses) |
|
(41,900 |
) |
|
31,700 |
||||
Organic postpaid additions |
|
8,100 |
|
|
28,900 |
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) |
|
Year ended |
|
Increase/(decrease) |
||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
Rebased % |
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
Rebased % |
||||
|
in millions, except % amounts |
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
C&W Caribbean |
$ |
366.4 |
|
|
$ |
367.3 |
|
|
— |
|
|
— |
|
|
$ |
1,437.0 |
|
|
$ |
1,436.8 |
|
|
— |
|
|
— |
|
C&W Panama |
|
206.1 |
|
|
|
201.4 |
|
|
2 |
|
|
2 |
|
|
|
742.6 |
|
|
|
642.7 |
|
|
16 |
|
|
5 |
|
Liberty Networks |
|
113.5 |
|
|
|
124.0 |
|
|
(8 |
) |
|
(9 |
) |
|
|
453.3 |
|
|
|
450.8 |
|
|
1 |
|
|
2 |
|
Liberty |
|
353.5 |
|
|
|
372.2 |
|
|
(5 |
) |
|
(5 |
) |
|
|
1,417.7 |
|
|
|
1,463.6 |
|
|
(3 |
) |
|
(3 |
) |
|
|
148.9 |
|
|
|
116.7 |
|
|
28 |
|
|
10 |
|
|
|
547.9 |
|
|
|
441.3 |
|
|
24 |
|
|
3 |
|
VTR |
|
— |
|
|
|
— |
|
|
N.M. |
|
N.M. |
|
|
— |
|
|
|
450.6 |
|
|
N.M. |
|
N.M. |
||||
Corporate |
|
5.0 |
|
|
|
5.7 |
|
|
(12 |
) |
|
(12 |
) |
|
|
23.5 |
|
|
|
22.2 |
|
|
6 |
|
|
6 |
|
Eliminations |
|
(29.8 |
) |
|
|
(28.1 |
) |
|
N.M. |
|
N.M. |
|
|
(110.9 |
) |
|
|
(99.4 |
) |
|
N.M. |
|
N.M. |
||||
Total |
|
1,163.6 |
|
|
|
1,159.2 |
|
|
— |
|
|
(1 |
) |
|
|
4,511.1 |
|
|
$ |
4,808.6 |
|
|
(6 |
) |
|
— |
|
Less: VTR |
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
450.6 |
|
|
|
|
|
||||
Total excluding VTR2 |
$ |
1,163.6 |
|
|
$ |
1,159.2 |
|
|
— |
|
|
(1 |
) |
|
$ |
4,511.1 |
|
|
$ |
4,358.0 |
|
|
4 |
|
|
— |
|
N.M. – Not Meaningful.
-
Reported revenue for the three months and the year ended
December 31, 2023 was flat and declined by 6%, respectively, as compared to the corresponding prior-year periods.-
Reported revenue in Q4 was flat as (1) net organic growth driven by
Liberty Costa Rica and C&W Panama and (2) net foreign exchange benefits of$21 million , were offset by organic declines in Liberty Puerto Rico and Liberty Networks. -
Reported revenue declined in FY 2023 as (1) net foreign exchange benefits of
$84 million , (2) the addition of$70 million from the acquisition of América Móvil'sPanama operations (Claro Panamá) onJuly 1, 2022 and (3) net organic growth driven by C&W Panama andLiberty Costa Rica , were more than offset by the negative year-over-year impact of$451 million related to VTR's deconsolidation and organic decline in Liberty Puerto Rico.
-
Reported revenue in Q4 was flat as (1) net organic growth driven by
Q4 2023 Revenue Growth– Segment Highlights
-
C&W Caribbean: revenue was flat on both a reported and rebased basis, year-over-year.
-
Fixed residential revenue increased by 2% and 3%, respectively on a reported and rebased basis. Rebased revenue growth was driven by higher broadband ARPU and subscribers, primarily in
Jamaica where we added 23,000 RGUs over the last twelve months. This was partly offset by lower ARPU from video and telephony services due to fixed-mobile convergence incentives. - Mobile residential revenue increased by5%on a reported and rebased basis. The increase followed our focus on fixed-mobile convergence propositions which drove 70,000 postpaid mobile additions in the year. We have also continued to see an increase in inbound roaming revenue as tourism has recovered in the region.
-
B2B revenue was 6% loweron 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 negative impact on revenue as compared to the prior year quarter. This translates to an approximately 300 basis point and 700 basis point impact on C&W Caribbean's total revenue and B2B revenue rebased growth rates, respectively, and more than offset underlying B2B growth in the period.
-
Fixed residential revenue increased by 2% and 3%, respectively on a reported and rebased basis. Rebased revenue growth was driven by higher broadband ARPU and subscribers, primarily in
-
C&W Panama: revenue grew by 2% on a reported and rebased basis.
- Fixed residential revenue was up 6%as we added 62,000 RGUs over the past twelve months, following investments in our networks, products and commercial activities.
- Mobile residential revenue decreased by 5%, driven by lower prepaid volume including the impacts of disruptions from the mining protests, partially offset by higher prepaid ARPU.
- B2B revenue grew by 8% driven by increased revenue from government-related projects and data and managed services.
- Liberty Networks:revenue declinedby 8% and 9% on a reported and rebased basis, respectively. The year-over-year decline was driven by (i) lower wholesale network revenue associated with a significant customer that is recognized on a cash basis and (ii) a reduction in non-cash IRU revenue due to lower amortization year-over-year. This was partly offset by higher enterprise revenue due to an increase in new contracts and continued growth in B2B connectivity and managed services.
-
Liberty
Puerto Rico : revenue was 5% loweron a reported and rebased basis.- Residential fixed revenue growth of 5% was driven by 23,000 net broadband subscriber additions over the past twelve months and higher ARPU following rate increases.
- Residential mobile revenue was 11% lower compared to the prior-year period. This was driven by: (1) reduced equipment sales due in part to migration activities, (2) a decline in the average number of prepaid mobile subscribers as compared to the prior year period, and (3) lower roaming revenue.
-
Other revenue declined by
$3 million as compared to the prior-year quarter due to a reduction in revenue recognized on funds received from theFCC .
-
Liberty Costa Rica : revenue grewby 28% on a reported basis and 10% on a rebased basis. Reported performance benefited from an$18 million positive foreign exchange impact year-over-year, as the Costa Rican colon appreciated against theU.S. dollar. The strong year-over-year rebased performance was driven by higher B2B service revenue and higher mobile revenue due to postpaid subscriber growth and equipment sales.
Operating Income
-
Operating income was
$113 million and$107 million for the three months endedDecember 31, 2023 and 2022, respectively, and$518 million and$87 million for the year endedDecember 31, 2023 and 2022, respectively.- The increase for the three-month comparison is primarily due to the net effect of (i) lower impairment, restructuring and other operating items, net, (ii) higher Adjusted OIBDA and (iii) higher depreciation and amortization. The increase for the twelve-month comparison is 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 and (ii) higher depreciation and amortization.
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 |
|
Year ended |
|||||||||||||||||||||||||
|
|
|
Increase (decrease) |
|
|
|
Increase (decrease) |
|||||||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
Rebased % |
|
|
2023 |
|
|
|
2022 |
|
|
% |
|
Rebased % |
|||||
|
in millions, except % amounts |
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
C&W Caribbean |
$ |
160.0 |
|
$ |
138.1 |
|
16 |
|
16 |
|
$ |
596.9 |
|
$ |
535.2 |
|
12 |
|
12 |
|
||||||||
C&W Panama |
|
66.7 |
|
|
57.2 |
|
17 |
|
17 |
|
|
227.7 |
|
|
188.8 |
|
21 |
|
25 |
|
||||||||
Liberty Networks |
|
61.5 |
|
|
79.7 |
|
(23 |
) |
(22 |
) |
|
261.5 |
|
|
276.3 |
|
(5 |
) |
(4 |
) |
||||||||
Liberty |
|
103.9 |
|
|
117.6 |
|
(12 |
) |
(12 |
) |
|
485.5 |
|
|
530.8 |
|
(9 |
) |
(9 |
) |
||||||||
|
|
57.9 |
|
|
36.1 |
|
60 |
|
36 |
|
|
203.1 |
|
|
134.7 |
|
51 |
|
23 |
|
||||||||
VTR |
|
— |
|
|
— |
|
N.M. |
N.M. |
|
— |
|
|
115.6 |
|
N.M. |
N.M. |
||||||||||||
Corporate |
|
(18.1 |
) |
|
(26.1 |
) |
31 |
|
31 |
|
|
(73.1 |
) |
|
(71.5 |
) |
(2 |
) |
(1 |
) |
||||||||
Total |
$ |
431.9 |
|
$ |
402.6 |
|
7 |
|
6 |
|
$ |
1,701.6 |
|
$ |
1,709.9 |
|
— |
|
6 |
|
||||||||
Less: VTR |
|
— |
|
|
— |
|
|
|
|
— |
|
|
115.6 |
|
|
|
||||||||||||
Total excluding VTR2 |
$ |
431.9 |
|
$ |
402.6 |
|
7 |
|
6 |
|
$ |
1,701.6 |
|
$ |
1,594.3 |
|
7 |
|
6 |
|
||||||||
Operating income margin |
|
9.7 |
% |
|
9.2 |
% |
|
|
|
11.5 |
% |
|
1.8 |
% |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Adjusted OIBDA margin |
|
37.1 |
% |
|
34.7 |
% |
|
|
|
37.7 |
% |
|
35.6 |
% |
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Adjusted OIBDA margin excl. VTR2 |
|
37.1 |
% |
|
34.7 |
% |
|
|
|
37.7 |
% |
|
36.6 |
% |
|
|
N.M. – Not Meaningful.
-
Reported Adjusted OIBDA for the three months and year ended
December 31, 2023 increased by 7% and was flat, respectively, as compared to the corresponding prior-year periods.-
Reported Adjusted OIBDA was higher in Q4, driven by (1) organic growth in C&W Caribbean,
Liberty Costa Rica , and C&W Panama, and (2) the appreciation of the Costa Rican colon, which were partly offset by organic declines in Liberty Networks and Liberty Puerto Rico. -
Reported Adjusted OIBDA was flat YTD as (1) organic growth in C&W Caribbean, C&W Panama, and
Liberty Costa Rica , and (2) the appreciation of the Costa Rican colon, were offset by the deconsolidation of VTR and organic decline in Liberty Puerto Rico.
-
Reported Adjusted OIBDA was higher in Q4, driven by (1) organic growth in C&W Caribbean,
Q4 2023 Adjusted OIBDA Growth – Segment Highlights
- C&W Caribbean: Adjusted OIBDA increased by 16% on a reported and rebased basis, respectively.Performance was driven by lower direct costs, including declines in handset and programming expenses, and lower bad debt expense. Our Adjusted OIBDA margin improved by over 600 basis points year-over-year to 44%.
- C&W Panama: Adjusted OIBDAincreased by 17% on a reported and rebased basis.The performance was driven by revenue growth, lower bad debt expense and value capture activities related to the Claro Panamá acquisition, partly offset by higher direct costs related to government-related projects.
- Liberty Networks: Adjusted OIBDAdecreased by 23% and 22% on a reported and rebased basis, respectively. Our rebased performance was driven by the aforementioned revenue decline in the quarter.
-
Liberty
Puerto Rico : Adjusted OIBDA declined by 12% 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 lower gross sales, and higher other operating costs mainly related to migration and integration activities, year-over-year.
-
Liberty Costa Rica : Adjusted OIBDA grew by 60% and 36% on a reported and rebased basis, respectively. Rebased performance was driven by the aforementioned revenue growth, favorable foreign exchange movements on non-CRC denominated costs and execution of our integration plan.
- Corporate: Adjusted OIBDA improved by 31% on a reported and rebased basis, respectively, driven by lower bonus costs.
Net Earnings (Loss) Attributable to Shareholders
-
Netearnings (loss) attributable to shareholders was (
$103 million )and$139 million for the three months endedDecember 31, 2023 and 2022, respectively, and ($74 million )and ($171 million ) for the year endedDecember 31, 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 |
|
Year ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
USD in millions |
|||||||||||||||
|
|
|
|
|
||||||||||||
Customer Premises Equipment |
$ |
40.8 |
|
$ |
40.9 |
|
$ |
178.1 |
|
$ |
246.3 |
|
||||
New Build & Upgrade |
|
56.2 |
|
|
44.9 |
|
|
158.7 |
|
|
156.7 |
|
||||
Capacity |
|
24.2 |
|
|
41.4 |
|
|
94.3 |
|
|
127.3 |
|
||||
Baseline |
|
68.0 |
|
|
71.6 |
|
|
234.9 |
|
|
210.8 |
|
||||
Product & Enablers |
|
17.4 |
|
|
26.4 |
|
|
64.9 |
|
|
75.2 |
|
||||
Property & equipment additions |
|
206.6 |
|
|
225.2 |
|
|
730.9 |
|
|
816.3 |
|
||||
Assets acquired under capital-related vendor financing arrangements |
|
(26.1 |
) |
|
(46.9 |
) |
|
(143.8 |
) |
|
(161.1 |
) |
||||
Changes in current liabilities related to capital expenditures and other |
|
(18.4 |
) |
|
(12.3 |
) |
|
(2.1 |
) |
|
4.9 |
|
||||
Capital expenditures, net |
$ |
162.1 |
|
$ |
166.0 |
|
$ |
585.0 |
|
$ |
660.1 |
|
||||
Property & equipment additions as % of revenue |
|
17.8 |
% |
|
19.4 |
% |
|
16.2 |
% |
|
17.0 |
% |
||||
Property & Equipment Additions: |
|
|
|
|
||||||||||||
C&W Caribbean |
$ |
61.3 |
|
$ |
79.3 |
|
$ |
235.1 |
|
$ |
230.7 |
|
||||
C&W Panama |
|
34.2 |
|
|
26.8 |
|
|
117.0 |
|
|
98.4 |
|
||||
Liberty Networks |
|
10.5 |
|
|
8.2 |
|
|
47.6 |
|
|
40.2 |
|
||||
Liberty |
|
60.6 |
|
|
78.7 |
|
|
219.0 |
|
|
233.5 |
|
||||
|
|
29.1 |
|
|
19.8 |
|
|
75.3 |
|
|
65.5 |
|
||||
VTR |
|
— |
|
|
— |
|
|
— |
|
|
107.3 |
|
||||
Corporate |
|
10.9 |
|
|
12.4 |
|
|
36.9 |
|
|
40.7 |
|
||||
Property & equipment additions |
$ |
206.6 |
|
$ |
225.2 |
|
$ |
730.9 |
|
$ |
816.3 |
|
||||
Property & Equipment Additions as a Percentage of Revenue by Reportable Segment: |
|
|
|
|
||||||||||||
C&W Caribbean |
|
16.7 |
% |
|
21.6 |
% |
|
16.4 |
% |
|
16.1 |
% |
||||
C&W Panama |
|
16.6 |
% |
|
13.3 |
% |
|
15.8 |
% |
|
15.3 |
% |
||||
Liberty Networks |
|
9.3 |
% |
|
6.6 |
% |
|
10.5 |
% |
|
8.9 |
% |
||||
Liberty |
|
17.1 |
% |
|
21.1 |
% |
|
15.4 |
% |
|
16.0 |
% |
||||
|
|
19.5 |
% |
|
17.0 |
% |
|
13.7 |
% |
|
14.8 |
% |
||||
VTR |
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
23.8 |
% |
||||
New Build and Homes Upgraded by Reportable Segment1: |
|
|
|
|
||||||||||||
C&W Caribbean |
|
25,800 |
|
|
15,800 |
|
|
142,100 |
|
|
106,700 |
|
||||
C&W Panama |
|
21,300 |
|
|
19,100 |
|
|
115,300 |
|
|
148,400 |
|
||||
Liberty |
|
9,100 |
|
|
16,900 |
|
|
50,500 |
|
|
41,800 |
|
||||
|
|
8,100 |
|
|
11,000 |
|
|
41,300 |
|
|
50,300 |
|
||||
VTR |
|
— |
|
|
— |
|
|
— |
|
|
137,400 |
|
||||
Total |
|
64,300 |
|
|
62,800 |
|
|
349,200 |
|
|
484,600 |
|
- 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
|
Debt |
|
Finance lease
|
|
Debt and
|
|
Cash, cash equivalents
|
||||
|
in millions |
||||||||||
|
|
|
|
|
|
|
|
||||
|
$ |
220.8 |
|
$ |
— |
|
$ |
220.8 |
|
$ |
100.3 |
C&W2 |
|
4,869.5 |
|
|
— |
|
|
4,869.5 |
|
|
737.9 |
Liberty |
|
2,701.3 |
|
|
5.5 |
|
|
2,706.8 |
|
|
127.9 |
|
|
450.6 |
|
|
— |
|
|
450.6 |
|
|
30.5 |
Total |
$ |
8,242.2 |
|
$ |
5.5 |
|
$ |
8,247.7 |
|
$ |
996.6 |
|
|
|
|
|
|
|
|
Consolidated Leverage and Liquidity Information: |
|
|
|
|
|||
|
|||||||
Consolidated debt and finance lease obligations to operating income ratio |
|
15.0x |
|
13.4x |
|||
Consolidated net debt and finance lease obligations to operating income ratio |
|
13.2x |
|
12.4x |
|||
Consolidated gross leverage ratio4 |
|
4.8x |
|
4.6x |
|||
Consolidated net leverage ratio4 |
|
4.2x |
|
4.3x |
|||
Weighted average debt tenor5 |
|
4.3 years |
|
4.6 years |
|||
Fully-swapped borrowing costs |
|
6.0% |
|
6.0% |
|||
Unused borrowing capacity (in millions)6 |
|
|
|
|
-
Represents the amount held by
Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries ofLiberty 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 inPuerto 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, debt related to the Tower Transactions, other debt and finance lease obligations.
-
At
December 31, 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 theDecember 31, 2023 compliance reporting requirements.
Quarterly Subscriber Variance
|
Fixed and Mobile Subscriber Variance Table — |
|||||||||||||||||||||||||
|
Homes
|
|
Fixed-line
|
|
Video RGUs |
|
Internet
|
|
Telephony
|
|
Total RGUs |
|
|
Prepaid |
|
Postpaid |
|
Total Mobile
|
||||||||
|
|
|
|
|
||||||||||||||||||||||
C&W Caribbean: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
4,100 |
|
4,800 |
|
|
300 |
|
|
5,900 |
|
|
6,500 |
|
|
12,700 |
|
|
|
26,100 |
|
|
7,100 |
|
|
33,200 |
|
The |
— |
|
200 |
|
|
200 |
|
|
700 |
|
|
100 |
|
|
1,000 |
|
|
|
(1,400 |
) |
|
1,200 |
|
|
(200 |
) |
|
800 |
|
(1,600 |
) |
|
(1,300 |
) |
|
(1,900 |
) |
|
(600 |
) |
|
(3,800 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
500 |
|
|
300 |
|
|
900 |
|
|
(200 |
) |
|
1,000 |
|
|
|
100 |
|
|
1,800 |
|
|
1,900 |
|
Other |
200 |
|
1,000 |
|
|
100 |
|
|
1,400 |
|
|
(800 |
) |
|
700 |
|
|
|
2,900 |
|
|
7,200 |
|
|
10,100 |
|
Total C&W Caribbean |
5,100 |
|
4,900 |
|
|
(400 |
) |
|
7,000 |
|
|
5,000 |
|
|
11,600 |
|
|
|
27,700 |
|
|
17,300 |
|
|
45,000 |
|
C&W Panama |
10,000 |
|
4,100 |
|
|
3,100 |
|
|
6,600 |
|
|
5,300 |
|
|
15,000 |
|
|
|
(104,500 |
) |
|
(7,300 |
) |
|
(111,800 |
) |
Total C&W |
15,100 |
|
9,000 |
|
|
2,700 |
|
|
13,600 |
|
|
10,300 |
|
|
26,600 |
|
|
|
(76,800 |
) |
|
10,000 |
|
|
(66,800 |
) |
Liberty |
1,000 |
|
3,000 |
|
|
(1,800 |
) |
|
4,200 |
|
|
5,500 |
|
|
7,900 |
|
|
|
(18,100 |
) |
|
(30,400 |
) |
|
(48,500 |
) |
|
7,600 |
|
(1,400 |
) |
|
(500 |
) |
|
100 |
|
|
5,100 |
|
|
4,700 |
|
|
|
44,900 |
|
|
28,500 |
|
|
73,400 |
|
Total Organic Change |
23,700 |
|
10,600 |
|
|
400 |
|
|
17,900 |
|
|
20,900 |
|
|
39,200 |
|
|
|
(50,000 |
) |
|
8,100 |
|
|
(41,900 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Q4 2023 Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
C&W Caribbean - |
37,000 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
(12,700 |
) |
|
— |
|
|
(12,700 |
) |
C&W Caribbean - The |
4,800 |
|
(2,000 |
) |
|
(400 |
) |
|
(2,000 |
) |
|
(1,400 |
) |
|
(3,800 |
) |
|
|
— |
|
|
(1,000 |
) |
|
(1,000 |
) |
C&W Caribbean - Other1 |
30,500 |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
Total Q4 2023 Adjustments: |
72,300 |
|
(2,000 |
) |
|
(400 |
) |
|
(2,000 |
) |
|
(1,400 |
) |
|
(3,800 |
) |
|
|
(12,700 |
) |
|
(1,000 |
) |
|
(13,700 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net Adds (Losses) |
96,000 |
|
8,600 |
|
|
— |
|
|
15,900 |
|
|
19,500 |
|
|
35,400 |
|
|
|
(62,700 |
) |
|
7,100 |
|
|
(55,600 |
) |
-
Primarily relates to homes passed adjustments through the network upgrade process.
Jamaica prepaid adjustment relates to mobile 2G shutdown.
ARPU per Customer Relationship
The following table provides ARPU per customer relationship for the indicated periods:
|
Three months ended |
|
|
|
FX-Neutral1 |
||||||
|
|
|
|
|
% Change |
|
% Change |
||||
|
|
|
|
|
|
|
|
||||
Reportable Segment: |
|
|
|
|
|
|
|
||||
C&W Caribbean |
$ |
49.66 |
|
$ |
49.41 |
|
1 |
% |
|
1 |
% |
C&W Panama |
$ |
38.58 |
|
$ |
38.39 |
|
— |
% |
|
— |
% |
Liberty |
$ |
73.32 |
|
$ |
74.05 |
|
(1 |
%) |
|
(1 |
%) |
|
$ |
44.32 |
|
$ |
44.57 |
|
(1 |
%) |
|
(2 |
%) |
|
$ |
47.03 |
|
$ |
46.80 |
|
— |
% |
|
1 |
% |
Mobile ARPU
The following table provides ARPU per mobile subscriber for the indicated periods:
|
Three months ended |
|
|
|
FX-Neutral1 |
||||||
|
|
|
|
|
% Change |
|
% Change |
||||
|
|
|
|
|
|
|
|
||||
Reportable Segment: |
|
|
|
|
|
|
|
||||
C&W Caribbean |
|
|
|
|
— |
% |
|
— |
% |
||
C&W Panama |
|
|
|
|
— |
% |
|
— |
% |
||
Liberty |
|
|
|
|
— |
% |
|
— |
% |
||
|
|
|
|
|
3 |
% |
|
1 |
% |
||
|
|
|
|
|
— |
% |
|
— |
% |
- The FX-Neutral change represents the percentage change on a 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 prior quarter amounts.
-
The ARPU per customer relationship amounts in
Costa Rican colones for the three months endedDecember 31, 2023 andSeptember 30, 2023 wereCRC 23,564 andCRC 24,074 , respectively. -
The mobile ARPU amount in
Costa Rican colones for the three months endedDecember 31, 2023 andSeptember 30, 2023 wereCRC 3,580 andCRC 3,544 , 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; our digital strategy, product innovation and commercial plans and projects; subscriber growth; expectations on demand for connectivity in the region; our anticipated integration plans, including timing for completion, synergies, opportunities and integration costs in
About
For more information, please visit www.lla.com.
Footnotes
-
Rebased growth rates are a non-GAAP measure. The indicated growth rates are rebased for the estimated impacts of (i) for the twelve-month comparison, an acquisition and a disposition, (ii) the acquisition by our
Liberty Costa Rica segment of the B2BCosta Rican operations within our Liberty Networks segment and (iii) 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 theOctober 2022 deconsolidation of VTR that occurred in connection with the closing of our joint venture inChile 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 FCFand 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 |
The following tables reflect preliminary unaudited selected financial results, on a consolidated C&W basis, for the periods indicated, in accordance with
|
Three months ended |
|
|
|
|
||||||||
|
|
|
Change |
|
Rebased change1 |
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
||||
|
in millions, except % amounts |
||||||||||||
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
660.6 |
|
|
$ |
669.3 |
|
|
(1 |
%) |
|
(1 |
%) |
|
|
|
|
|
|
|
|
||||||
Operating income |
$ |
64.7 |
|
|
$ |
77.1 |
|
|
(16 |
%) |
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted OIBDA |
$ |
288.2 |
|
|
$ |
275.0 |
|
|
5 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
||||||
Property & equipment additions |
$ |
106.1 |
|
|
$ |
114.3 |
|
|
(7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income as a percentage of revenue |
|
9.8 |
% |
|
|
11.5 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted OIBDA as a percentage of revenue |
|
43.6 |
% |
|
|
41.1 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Proportionate Adjusted OIBDA |
$ |
239.2 |
|
|
$ |
231.7 |
|
|
|
|
|
||
|
Year ended |
|
|
|
|
||||||||
|
|
|
Change |
|
Rebased change1 |
||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
||||
|
in millions, except % amounts |
||||||||||||
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
2,543.2 |
|
|
$ |
2,448.6 |
|
|
4 |
% |
|
2 |
% |
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
$ |
269.7 |
|
|
$ |
(252.1 |
) |
|
N.M. |
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted OIBDA |
$ |
1,086.3 |
|
|
$ |
1,000.0 |
|
|
9 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
||||||
Property & equipment additions |
$ |
399.7 |
|
|
$ |
369.3 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income (loss) as a percentage of revenue |
|
10.6 |
% |
|
|
(10.3 |
) % |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Adjusted OIBDA as a percentage of revenue |
|
42.7 |
% |
|
|
40.8 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Proportionate Adjusted OIBDA |
$ |
916.7 |
|
|
$ |
852.4 |
|
|
|
|
|
N.M. – Not Meaningful.
1. Indicated growth rates are rebased for the estimated impacts of an acquisition for the twelve-month comparison, FX and the acquisition by the Liberty Costa Rica borrowing group of the B2B
The following table details the
|
|
|
|
|
|
|||||
|
Facility Amount |
|
|
2023 |
|
|
|
2023 |
|
|
|
in millions |
|||||||||
Credit Facilities: |
|
|
|
|
|
|||||
Revolving Credit Facility due 2027 (Adjusted Term SOFR + 3.25%) |
$ |
580.0 |
|
$ |
— |
|
|
$ |
20.0 |
|
Term Loan Facility B-5 due 2028 (Adjusted Term SOFR + 2.25%) |
$ |
1,510.0 |
|
|
1,510.0 |
|
|
|
1,510.0 |
|
Term Loan Facility B-6 due 2029 (Adjusted Term SOFR + 3.00%) |
$ |
590.0 |
|
|
590.0 |
|
|
|
590.0 |
|
Total Senior Secured Credit Facilities |
|
|
2,100.0 |
|
|
|
2,120.0 |
|
||
4.25% CWP Term Loan due 2028 |
$ |
435.0 |
|
|
435.0 |
|
|
|
435.0 |
|
Regional and other debt1 |
|
|
159.2 |
|
|
|
129.3 |
|
||
Total Credit Facilities |
|
|
2,694.2 |
|
|
|
2,684.3 |
|
||
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 and Tower Transactions |
|
|
460.3 |
|
|
|
260.4 |
|
||
Total third-party debt |
|
|
4,869.5 |
|
|
|
4,659.7 |
|
||
Less: premiums, discounts and deferred financing costs, net |
|
|
(25.9 |
) |
|
|
(27.4 |
) |
||
Total carrying amount of third-party debt |
|
|
4,843.6 |
|
|
|
4,632.3 |
|
||
Less: cash and cash equivalents |
|
|
(737.9 |
) |
|
|
(384.1 |
) |
||
Net carrying amount of third-party debt |
|
$ |
4,105.7 |
|
|
$ |
4,248.2 |
|
1. Amounts include
-
At
December 31, 2023 , our third-party total and proportionate net debt was$4.1 billion and$3.8 billion , respectively, our Fully-swapped Borrowing Cost was 5.5%, and the average tenor of our debt obligations (excluding vendor financing and debt related to the Tower Transactions) was approximately 4.1 years. -
Our portion of Adjusted OIBDA, after deducting the noncontrolling interests' share, (“Proportionate Adjusted OIBDA”) was
$239 million for Q4 2023. - C&W's Covenant Proportionate Net Leverage Ratio was3.6x, which is calculated by annualizing the last two quarters of Covenant EBITDA in accordance with C&W's Credit Agreement.
-
At
December 31, 2023 , we had maximum undrawn commitments of$637 million , including$65 million under our regional facilities.AtDecember 31, 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 theDecember 31, 2023 compliance reporting requirements.
The following tables reflect preliminary unaudited selected financial results, on a consolidated Liberty Puerto Rico basis, for the periods indicated, in accordance with
|
Three months ended |
|
|
|||||||
|
|
|
Change |
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
||
|
in millions, except % amounts |
|||||||||
|
|
|
|
|
|
|||||
Revenue |
$ |
353.5 |
|
|
$ |
372.2 |
|
|
(5 |
) % |
|
|
|
|
|
|
|||||
Operating income |
$ |
9.7 |
|
|
$ |
32.1 |
|
|
(70 |
) % |
|
|
|
|
|
|
|||||
Adjusted OIBDA |
$ |
103.9 |
|
|
$ |
117.6 |
|
|
(12 |
) % |
|
|
|
|
|
|
|||||
Property & equipment additions |
$ |
60.6 |
|
|
$ |
78.7 |
|
|
(23 |
) % |
|
|
|
|
|
|
|||||
Operating income as a percentage of revenue |
|
2.7 |
% |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|||||
Adjusted OIBDA as a percentage of revenue |
|
29.4 |
% |
|
|
31.6 |
% |
|
|
|
|
Year ended |
|
|
|||||||
|
|
|
Change |
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
||
|
in millions, except % amounts |
|||||||||
|
|
|
|
|
|
|||||
Revenue |
$ |
1,417.7 |
|
|
$ |
1,463.6 |
|
|
(3 |
) % |
|
|
|
|
|
|
|||||
Operating income |
$ |
175.2 |
|
|
$ |
222.1 |
|
|
(21 |
) % |
|
|
|
|
|
|
|||||
Adjusted OIBDA |
$ |
485.5 |
|
|
$ |
530.8 |
|
|
(9 |
) % |
|
|
|
|
|
|
|||||
Property & equipment additions |
$ |
219.0 |
|
|
$ |
233.5 |
|
|
(6 |
) % |
|
|
|
|
|
|
|||||
Operating income as a percentage of revenue |
|
12.4 |
% |
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
|
|||||
Adjusted OIBDA as a percentage of revenue |
|
34.2 |
% |
|
|
36.3 |
% |
|
|
The following table details the nominal amount outstanding of Liberty Puerto Rico's third-party debt, finance lease obligations and cash and cash equivalents:
|
|
|
|
|
|
|||||
|
Facility amount |
|
|
2023 |
|
|
|
2023 |
|
|
|
in millions |
|||||||||
|
|
|
|
|
|
|||||
Credit Facilities: |
|
|
|
|
|
|||||
Revolving Credit Facility due 2027 (Adjusted Term SOFR + 3.50%) |
$ |
172.5 |
|
$ |
— |
|
|
$ |
— |
|
Term Loan Facility due 2028 (Adjusted Term SOFR + 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, Tower Transactions and other |
|
|
100.3 |
|
|
|
41.6 |
|
||
Finance lease obligations |
|
|
5.5 |
|
|
|
5.5 |
|
||
Total debt and finance lease obligations |
|
|
2,706.8 |
|
|
|
2,648.1 |
|
||
Less: premiums and deferred financing costs, net |
|
|
(21.9 |
) |
|
|
(23.5 |
) |
||
Total carrying amount of debt |
|
|
2,684.9 |
|
|
|
2,624.6 |
|
||
Less: cash, cash equivalents and restricted cash related to debt1 |
|
|
(127.9 |
) |
|
|
(52.2 |
) |
||
Net carrying amount of debt |
|
$ |
2,557.0 |
|
|
$ |
2,572.4 |
|
-
Cash amounts include restricted cash that serves as collateral against certain lines of credit associated with funding received from the
FCC to continue to expand and improve our fixed network inPuerto Rico .
-
At
December 31, 2023 , our Fully-swapped Borrowing Cost was 6.2% and the average tenor of our debt (excluding vendor financing, debt related to the Tower Transactions and other debt) was approximately 4.6 years. - LPR's Covenant Consolidated Net Leverage Ratio was5.2x, which is calculated by annualizing the last two quarters of Covenant EBITDA in accordance with LPR’s Group Credit Agreement.
-
At
December 31, 2023 , we had maximum undrawn commitments of$173 million . AtDecember 31, 2023 , the full amount of unused borrowing capacity under our revolving credit facility was available to be borrowed, both before and after completion of theDecember 31, 2023 compliance reporting requirements.
The following tables reflect preliminary unaudited selected financial results, on a consolidated Liberty Costa Rica basis, for the periods indicated, in accordance with
|
Three months ended |
|
|
|
|
||||||
|
|
|
Change |
|
Rebased
|
||||||
|
2023 |
|
|
2022 |
|
|
|
||||
|
CRC in billions, except % amounts |
||||||||||
|
|
|
|
|
|
|
|
||||
Revenue |
79.2 |
|
|
71.1 |
|
|
11 |
% |
|
10 |
% |
|
|
|
|
|
|
|
|
||||
Operating income |
18.1 |
|
|
8.2 |
|
|
121 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted OIBDA |
30.8 |
|
|
22.1 |
|
|
39 |
% |
|
36 |
% |
|
|
|
|
|
|
|
|
||||
Property & equipment additions |
15.5 |
|
|
12.0 |
|
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income as a percentage of revenue |
22.9 |
% |
|
11.5 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||
Adjusted OIBDA as a percentage of revenue |
38.9 |
% |
|
31.1 |
% |
|
|
|
|
||
|
Year ended |
|
|
|
|
||||||
|
|
|
Change |
|
Rebased
|
||||||
|
2023 |
|
|
2022 |
|
|
|
||||
|
CRC in billions, except % amounts |
||||||||||
|
|
|
|
|
|
|
|
||||
Revenue |
297.6 |
|
|
285.3 |
|
|
4 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
||||
Operating income |
55.5 |
|
|
34.0 |
|
|
63 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted OIBDA |
110.2 |
|
|
87.2 |
|
|
26 |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
||||
Property & equipment additions |
40.7 |
|
|
42.2 |
|
|
(4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income as a percentage of revenue |
18.6 |
% |
|
11.9 |
% |
|
|
|
|
||
|
|
|
|
|
|
|
|
||||
Adjusted OIBDA as a percentage of revenue |
37.0 |
% |
|
30.6 |
% |
|
|
|
|
1. Indicated growth rates are rebased for the acquisition by the Liberty Costa Rica borrowing group of the B2B
The following table details the borrowing currency and
|
|
|
|
|||||
|
2023 |
|
2023 |
|||||
|
Borrowing currency
|
|
CRC equivalent in billions |
|||||
|
|
|
|
|
|
|
||
10.875% Term Loan A Facility due 20311 |
$ |
50.0 |
|
26.2 |
|
|
26.8 |
|
10.875% Term Loan B Facility due 20311 |
$ |
400.0 |
|
209.2 |
|
|
214.7 |
|
Revolving Credit Facility due 2028 (Term SOFR2 + 4.25%) |
$ |
60.0 |
|
— |
|
|
— |
|
Total credit facilities |
|
235.4 |
|
|
241.5 |
|
||
Other |
|
0.3 |
|
|
3.5 |
|
||
Finance lease obligations |
|
— |
|
|
1.4 |
|
||
Total debt and finance lease obligations |
|
235.7 |
|
|
246.4 |
|
||
Less: deferred financing costs |
|
(7.5 |
) |
|
(7.7 |
) |
||
Total carrying amount of debt |
|
228.2 |
|
|
238.7 |
|
||
Less: cash and cash equivalents |
|
(15.9 |
) |
|
(13.2 |
) |
||
Net carrying amount of debt |
|
212.3 |
|
|
225.5 |
|
||
|
|
|
|
|
|
|
||
Exchange rate (CRC to $) |
|
523.0 |
|
|
536.8 |
|
-
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 thanDecember 31, 2027 . -
Forward-looking term rate based on SOFR as published by
CME Group Benchmark Administration Limited .
-
At
December 31, 2023 , our Fully-swapped Borrowing Cost was 10.9% and the average tenor of our debt was approximately 7.0 years.
- LCR's Covenant Consolidated Net Leverage Ratio was 1.9x, which is calculated by annualizing the last two quarters of Covenant EBITDA in accordance with LCR’s Credit Agreement.
-
At
December 31, 2023 , we had maximum undrawn commitments of$60 million . AtDecember 31, 2023 , the full amount of unused borrowing capacity under our revolving credit facility was available to be borrowed, both before and after completion of theDecember 31, 2023 compliance reporting requirements.
Subscriber Table
|
Consolidated Operating Data — |
|||||||||||||||||
|
Homes
|
|
Fixed-line
|
|
Video RGUs |
|
Internet
|
|
Telephony
|
|
Total
|
|
|
Prepaid |
|
Postpaid |
|
Total Mobile
|
|
|
|
|
|
||||||||||||||
C&W Caribbean: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
742,100 |
|
348,200 |
|
130,000 |
|
330,900 |
|
326,900 |
|
787,800 |
|
|
1,121,100 |
|
106,400 |
|
1,227,500 |
The |
125,700 |
|
33,900 |
|
7,600 |
|
26,200 |
|
33,300 |
|
67,100 |
|
|
137,800 |
|
24,600 |
|
162,400 |
|
341,700 |
|
147,400 |
|
97,100 |
|
131,200 |
|
91,900 |
|
320,200 |
|
|
— |
|
— |
|
— |
|
140,400 |
|
85,200 |
|
38,800 |
|
78,000 |
|
69,200 |
|
186,000 |
|
|
82,200 |
|
48,900 |
|
131,100 |
Other |
388,700 |
|
217,500 |
|
73,100 |
|
193,200 |
|
111,600 |
|
377,900 |
|
|
321,900 |
|
127,100 |
|
449,000 |
Total C&W Caribbean |
1,738,600 |
|
832,200 |
|
346,600 |
|
759,500 |
|
632,900 |
|
1,739,000 |
|
|
1,663,000 |
|
307,000 |
|
1,970,000 |
C&W Panama |
953,600 |
|
260,400 |
|
166,900 |
|
232,500 |
|
221,100 |
|
620,500 |
|
|
1,511,200 |
|
345,200 |
|
1,856,400 |
Total C&W |
2,692,200 |
|
1,092,600 |
|
513,500 |
|
992,000 |
|
854,000 |
|
2,359,500 |
|
|
3,174,200 |
|
652,200 |
|
3,826,400 |
Liberty |
1,178,700 |
|
580,800 |
|
237,100 |
|
547,100 |
|
268,800 |
|
1,053,000 |
|
|
115,200 |
|
864,100 |
|
979,300 |
Liberty Costa Rica 3 |
749,500 |
|
277,500 |
|
183,100 |
|
262,300 |
|
75,500 |
|
520,900 |
|
|
2,267,100 |
|
904,600 |
|
3,171,700 |
Total |
4,620,400 |
|
1,950,900 |
|
933,700 |
|
1,801,400 |
|
1,198,300 |
|
3,933,400 |
|
|
5,556,500 |
|
2,420,900 |
|
7,977,400 |
- Prepaid mobile subscribers include 10,300mobile reseller subscribers.
- Postpaid mobile subscribers include 201,800 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, the Tower Transactions, other debt 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, the Tower Transactions, other debt 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, debt related to the Tower Transactions and other debt), including the effects of derivative instruments, original issue premiums or discounts, which includes a discount on the convertible notes issued by
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, the Tower Transactions, other debt 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
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.
Tower Transactions – Transactions entered into during 2023 associated with certain of our mobile towers across various markets that (i) have terms of 15 or 20 years and did not meet the criteria to be accounted for as a sale and leaseback and (ii) also include "build to suit" sites that we are obligated to construct over the next 5 years.
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
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
|
Three months ended |
|
Year ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
in millions |
|||||||||||||||
|
|
|
|
|
||||||||||||
Operating income |
$ |
113.0 |
|
$ |
106.9 |
|
$ |
517.7 |
|
$ |
86.5 |
|
||||
Share-based compensation expense |
|
10.9 |
|
|
10.9 |
|
|
88.7 |
|
|
93.5 |
|
||||
Depreciation and amortization |
|
302.7 |
|
|
249.0 |
|
|
1,008.3 |
|
|
910.7 |
|
||||
Impairment, restructuring and other operating items, net |
|
5.3 |
|
|
35.8 |
|
|
86.9 |
|
|
619.2 |
|
||||
Adjusted OIBDA |
$ |
431.9 |
|
$ |
402.6 |
|
$ |
1,701.6 |
|
$ |
1,709.9 |
|
||||
Operating income margin1 |
|
9.7 |
% |
|
9.2 |
% |
|
11.5 |
% |
|
1.8 |
% |
||||
|
|
|
|
|
||||||||||||
Adjusted OIBDA margin2 |
|
37.1 |
% |
|
34.7 |
% |
|
37.7 |
% |
|
35.6 |
% |
- Calculated by dividing operating income 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) proceeds received in connection with handset receivables securitization, (iv) insurance recoveries related to damaged and destroyed property and equipment and (v) 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,
The following table provides the reconciliation of our net cash provided by operating activities to Adjusted FCF for the indicated period:
|
Three months ended |
|
Year ended |
||||||||||||
|
|
|
|
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
in millions |
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
390.5 |
|
|
$ |
377.0 |
|
|
$ |
897.0 |
|
|
$ |
868.8 |
|
Cash payments for direct acquisition and disposition costs |
|
0.9 |
|
|
|
8.1 |
|
|
|
5.9 |
|
|
|
26.5 |
|
Expenses financed by an intermediary1 |
|
44.6 |
|
|
|
33.4 |
|
|
|
176.9 |
|
|
|
149.1 |
|
Capital expenditures, net |
|
(162.1 |
) |
|
|
(166.0 |
) |
|
|
(585.0 |
) |
|
|
(660.1 |
) |
Principal payments on amounts financed by vendors and intermediaries |
|
(74.1 |
) |
|
|
(42.6 |
) |
|
|
(239.0 |
) |
|
|
(196.7 |
) |
Pre-acquisition interest payments, net2 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3.9 |
|
Principal payments on finance leases |
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
(1.0 |
) |
|
|
(1.1 |
) |
Proceeds from handset receivables securitization |
|
18.4 |
|
|
|
— |
|
|
|
18.4 |
|
|
|
— |
|
Adjusted FCF before distributions to noncontrolling interest owners |
|
217.9 |
|
|
|
209.7 |
|
|
|
273.2 |
|
|
|
190.4 |
|
Distributions to noncontrolling interest owners |
|
(34.2 |
) |
|
|
— |
|
|
|
(75.4 |
) |
|
|
(1.9 |
) |
Adjusted FCF |
$ |
183.7 |
|
|
$ |
209.7 |
|
|
$ |
197.8 |
|
|
$ |
188.5 |
|
- For purposes of our 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 businesses, 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 Panamá, 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 B2BCosta 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
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 |
||||||||||||||||||||||||||||||||||
|
C&W
|
C&W
|
Liberty
|
Liberty
|
Liberty
|
VTR |
Corporate |
Intersegment
|
Total |
||||||||||||||||||||||||||
|
In millions |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenue – Reported |
$ |
367.3 |
|
$ |
201.4 |
|
$ |
124.0 |
|
$ |
372.2 |
|
$ |
116.7 |
|
$ |
— |
$ |
5.7 |
|
$ |
(28.1 |
) |
$ |
1,159.2 |
|
|||||||||
Rebase adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Foreign currency |
|
(0.7 |
) |
|
— |
|
|
3.1 |
|
|
— |
|
|
17.0 |
|
|
— |
|
— |
|
|
— |
|
|
19.4 |
|
|||||||||
Other1 |
|
— |
|
|
— |
|
|
(1.7 |
) |
|
— |
|
|
1.7 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|||||||||
Revenue – Rebased |
$ |
366.6 |
|
$ |
201.4 |
|
$ |
125.4 |
|
$ |
372.2 |
|
$ |
135.4 |
|
$ |
— |
$ |
5.7 |
|
$ |
(28.1 |
) |
$ |
1,178.6 |
|
|||||||||
Reported percentage change |
|
— |
% |
|
2 |
% |
|
(8 |
)% |
|
(5 |
)% |
|
28 |
% |
N.M. |
|
(12 |
) % |
N.M. |
|
— |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Rebased percentage change |
|
— |
% |
|
2 |
% |
|
(9 |
)% |
|
(5 |
)% |
|
10 |
% |
N.M. |
|
(12 |
) % |
N.M. |
|
(1 |
)% |
||||||||||||
N.M. – Not Meaningful.
|
Year ended |
||||||||||||||||||||||||||||||||||
|
C&W
|
C&W
|
Liberty
|
Liberty
|
Liberty
|
VTR |
Corporate |
Intersegment
|
Total |
||||||||||||||||||||||||||
|
In millions |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Revenue – Reported |
$ |
1,436.8 |
|
$ |
642.7 |
|
$ |
450.8 |
|
$ |
1,463.6 |
|
$ |
441.3 |
|
$ |
450.6 |
$ |
22.2 |
|
$ |
(99.4 |
) |
$ |
4,808.6 |
|
|||||||||
Rebase adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Acquisition |
|
— |
|
|
64.3 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
— |
|
|
64.3 |
|
|||||||||
Disposition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(450.6 |
) |
|
— |
|
|
— |
|
|
(450.6 |
) |
||||||||
Foreign currency |
|
(0.1 |
) |
|
— |
|
|
(0.7 |
) |
|
— |
|
|
83.8 |
|
|
— |
|
— |
|
|
(0.1 |
) |
|
82.9 |
|
|||||||||
Other1 |
|
— |
|
|
— |
|
|
(6.6 |
) |
|
— |
|
|
6.6 |
|
|
— |
|
— |
|
|
— |
|
|
— |
|
|||||||||
Revenue – Rebased |
$ |
1,436.7 |
|
$ |
707.0 |
|
$ |
443.5 |
|
$ |
1,463.6 |
|
$ |
531.7 |
|
$ |
— |
$ |
22.2 |
|
$ |
(99.5 |
) |
$ |
4,505.2 |
|
|||||||||
Reported percentage change |
|
— |
% |
|
16 |
% |
|
1 |
% |
|
(3 |
)% |
|
24 |
% |
N.M. |
|
6 |
% |
N.M. |
|
(6 |
)% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Rebased percentage change |
|
— |
% |
|
5 |
% |
|
2 |
% |
|
(3 |
)% |
|
3 |
% |
N.M. |
|
6 |
% |
N.M. |
|
— |
% |
N.M. – Not Meaningful.
-
On
January 1, 2023 , the B2BCosta 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 |
||||||||||||||||||||||||||||||
|
C&W Caribbean |
C&W
|
Liberty
|
Liberty
|
Liberty
|
VTR |
Corporate |
Total |
|||||||||||||||||||||||
|
In millions |
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted OIBDA – Reported |
$ |
138.1 |
|
$ |
57.2 |
|
$ |
79.7 |
|
$ |
117.6 |
|
$ |
36.1 |
|
$ |
— |
$ |
(26.1 |
) |
$ |
402.6 |
|
||||||||
Rebase adjustments: |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Foreign currency |
|
(0.2 |
) |
|
— |
|
|
0.6 |
|
|
— |
|
|
5.4 |
|
|
— |
|
— |
|
|
5.8 |
|
||||||||
Other1 |
|
— |
|
|
— |
|
|
(1.1 |
) |
|
— |
|
|
1.1 |
|
|
— |
|
— |
|
|
— |
|
||||||||
Adjusted OIBDA – Rebased |
$ |
137.9 |
|
$ |
57.2 |
|
$ |
79.2 |
|
$ |
117.6 |
|
$ |
42.6 |
|
$ |
— |
$ |
(26.1 |
) |
$ |
408.4 |
|
||||||||
Reported percentage change |
|
16 |
% |
|
17 |
% |
|
(23 |
) % |
|
(12 |
) % |
|
60 |
% |
N.M. |
|
31 |
% |
|
7 |
% |
|||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Rebased percentage change |
|
16 |
% |
|
17 |
% |
|
(22 |
) % |
|
(12 |
) % |
|
36 |
% |
N.M. |
|
31 |
% |
|
6 |
% |
N.M. – Not Meaningful.
|
Year ended |
|||||||||||||||||||||||||||||||
|
C&W
|
|
C&W
|
|
Liberty
|
|
Liberty
|
|
Liberty
|
|
VTR |
|
Corporate |
|
Total |
|||||||||||||||||
|
In millions |
|||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Adjusted OIBDA – Reported |
$ |
535.2 |
|
$ |
188.8 |
|
$ |
276.3 |
|
$ |
530.8 |
|
$ |
134.7 |
|
$ |
115.6 |
|
$ |
(71.5 |
) |
$ |
1,709.9 |
|
||||||||
Rebase adjustments: |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Acquisition |
|
— |
|
|
(6.0 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(6.0 |
) |
||||||||
Disposition |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(115.6 |
) |
|
(1.4 |
) |
|
(117.0 |
) |
||||||||
Foreign currency |
|
— |
|
|
— |
|
|
(0.6 |
) |
|
— |
|
|
25.9 |
|
|
— |
|
|
— |
|
|
25.3 |
|
||||||||
Other1 |
|
— |
|
|
— |
|
|
(3.9 |
) |
|
— |
|
|
3.9 |
|
|
— |
|
|
— |
|
|
— |
|
||||||||
Adjusted OIBDA – Rebased |
$ |
535.2 |
|
$ |
182.8 |
|
$ |
271.8 |
|
$ |
530.8 |
|
$ |
164.5 |
|
$ |
— |
|
$ |
(72.9 |
) |
$ |
1,612.2 |
|
||||||||
Reported percentage change |
|
12 |
% |
|
21 |
% |
|
(5 |
)% |
|
(9 |
)% |
|
51 |
% |
N.M. |
|
(2 |
)% |
|
— |
% |
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Rebased percentage change |
|
12 |
% |
|
25 |
% |
|
(4 |
)% |
|
(9 |
)% |
|
23 |
% |
N.M. |
|
(1 |
)% |
|
6 |
% |
N.M. – Not Meaningful.
-
On
January 1, 2023 , the B2BCosta 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 |
||||||||||||||||||
|
Residential
|
|
Residential
|
|
Total
|
|
B2B revenue |
|
Total
|
||||||||||
|
In millions |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue by product – Reported |
$ |
128.2 |
|
|
$ |
101.4 |
|
|
$ |
229.6 |
|
|
$ |
137.7 |
|
|
$ |
367.3 |
|
Rebase adjustment: |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency |
|
(0.2 |
) |
|
|
(0.3 |
) |
|
|
(0.5 |
) |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
Revenue by product – Rebased |
$ |
128.0 |
|
|
$ |
101.1 |
|
|
$ |
229.1 |
|
|
$ |
137.5 |
|
|
$ |
366.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reported percentage change |
|
2 |
% |
|
|
5 |
% |
|
|
3 |
% |
|
|
(6 |
)% |
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
||||||||||
Rebased percentage change |
|
3 |
% |
|
|
5 |
% |
|
|
4 |
% |
|
|
(6 |
)% |
|
|
— |
% |
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
|
|
|
|
||
|
in millions, except leverage ratios |
||||
|
|
|
|
||
Total debt and finance lease obligations |
$ |
8,179.9 |
|
$ |
7,914.7 |
Discounts, premiums and deferred financing costs, net |
|
67.8 |
|
|
73.1 |
Adjusted total debt and finance lease obligations |
|
8,247.7 |
|
|
7,987.8 |
Less: |
|
|
|
||
Cash and cash equivalents |
|
988.6 |
|
|
571.6 |
Restricted cash related to debt1 |
|
8.0 |
|
|
8.0 |
Net debt and finance lease obligations |
$ |
7,251.1 |
|
$ |
7,408.2 |
|
|
|
|
||
Operating income2: |
|
|
|
||
Operating income for the three months ended |
|
N/A |
|
$ |
135.4 |
Operating income for the three months ended |
$ |
162.7 |
|
|
162.7 |
Operating income for the three months ended |
|
113.0 |
|
|
N/A |
Operating income – last two quarters |
$ |
275.7 |
|
$ |
298.1 |
Annualized operating income – last two quarters annualized |
$ |
551.4 |
|
$ |
596.2 |
Adjusted OIBDA3: |
|
|
|
||
Adjusted OIBDA for the three months ended |
|
N/A |
|
$ |
441.2 |
Adjusted OIBDA for the three months ended |
$ |
428.4 |
|
|
428.4 |
Adjusted OIBDA for the three months ended |
|
431.9 |
|
|
N/A |
Adjusted OIBDA – last two quarters |
$ |
860.3 |
|
$ |
869.6 |
Annualized Adjusted OIBDA – last two quarters annualized |
$ |
1,720.6 |
|
$ |
1,739.2 |
|
|
|
|
||
Consolidated debt and finance lease obligations to operating income ratio |
15.0 x |
|
13.4 x |
||
Consolidated net debt and finance lease obligations to operating income ratio |
13.2 x |
|
12.4 x |
||
Consolidated leverage ratio |
4.8 x |
|
4.6 x |
||
Consolidated net leverage ratio |
4.2 x |
|
4.3 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 inPuerto 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 endedDecember 31, 2023 . A reconciliation of our operating income to Adjusted OIBDA for the three months endedJune 30, 2023 andSeptember 30, 2023 is presented in the following table:
|
Three months ended |
||||
|
|
|
|
||
|
in millions |
||||
|
|
|
|
||
Operating income |
$ |
162.7 |
|
$ |
135.4 |
Share-based compensation expense |
|
24.1 |
|
|
24.5 |
Depreciation and amortization |
|
230.5 |
|
|
240.5 |
Impairment, restructuring and other operating items, net |
|
11.1 |
|
|
40.8 |
Adjusted OIBDA |
$ |
428.4 |
|
$ |
441.2 |
Non-GAAP Reconciliations for Our Borrowing Groups
The financial statements of each of our borrowing groups are prepared in accordance with
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
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 |
|
Year ended |
||||||||||
|
|
|
|
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
in millions |
||||||||||||
|
|
|
|
|
|
|
|
||||||
Operating income (loss) |
$ |
64.7 |
|
|
$ |
77.1 |
|
$ |
269.7 |
|
$ |
(252.1 |
) |
Share-based compensation expense |
|
2.4 |
|
|
|
3.2 |
|
|
22.7 |
|
|
27.8 |
|
Depreciation and amortization |
|
197.6 |
|
|
|
152.2 |
|
|
644.3 |
|
|
574.2 |
|
Related-party fees and allocations |
|
24.7 |
|
|
|
15.0 |
|
|
89.3 |
|
|
54.2 |
|
Impairment, restructuring and other operating items, net |
|
(1.2 |
) |
|
|
27.5 |
|
|
60.3 |
|
|
595.9 |
|
Adjusted OIBDA |
|
288.2 |
|
|
|
275.0 |
|
|
1,086.3 |
|
|
1,000.0 |
|
Noncontrolling interests' share of Adjusted OIBDA |
|
49.0 |
|
|
|
43.3 |
|
|
169.6 |
|
|
147.6 |
|
Proportionate Adjusted OIBDA |
$ |
239.2 |
|
|
$ |
231.7 |
|
$ |
916.7 |
|
$ |
852.4 |
|
A reconciliation of Liberty Puerto Rico's operating income to Adjusted OIBDA is presented in the following table:
|
Three months ended |
|
Year ended |
||||||||||
|
|
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
||
|
in millions |
||||||||||||
|
|
|
|
|
|
|
|
||||||
Operating income |
$ |
9.7 |
|
$ |
32.1 |
|
$ |
175.2 |
|
$ |
222.1 |
||
Share-based compensation expense |
|
0.3 |
|
|
1.3 |
|
|
6.2 |
|
|
7.3 |
||
Depreciation and amortization |
|
75.1 |
|
|
69.4 |
|
|
241.9 |
|
|
244.6 |
||
Related-party fees and allocations |
|
12.0 |
|
|
12.6 |
|
|
49.5 |
|
|
52.5 |
||
Impairment, restructuring and other operating items, net |
|
6.8 |
|
|
2.2 |
|
|
12.7 |
|
|
4.3 |
||
Adjusted OIBDA |
$ |
103.9 |
|
$ |
117.6 |
|
$ |
485.5 |
|
$ |
530.8 |
A reconciliation of Liberty Costa Rica's operating income to Adjusted OIBDA is presented in the following table:
|
Three months ended |
|
|
Year ended |
|||||||||
|
|
|
|
|
|||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|||
|
CRC in billions |
||||||||||||
|
|
|
|
|
|
|
|
||||||
Operating income |
18.1 |
|
8.2 |
|
55.5 |
|
34.0 |
||||||
Share-based compensation expense |
0.1 |
|
0.3 |
|
0.9 |
|
1.5 |
||||||
Depreciation and amortization |
12.2 |
|
13.2 |
|
51.3 |
|
49.9 |
||||||
Related-party fees and allocations |
0.4 |
|
0.3 |
|
1.4 |
|
1.4 |
||||||
Impairment, restructuring and other operating items, net |
— |
|
0.1 |
|
1.1 |
|
0.4 |
||||||
Adjusted OIBDA |
30.8 |
|
22.1 |
|
110.2 |
|
87.2 |
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
|
Year ended
|
|||||||
|
In millions |
||||||||
|
|
|
|||||||
Revenue – Reported |
$ |
669.3 |
|
$ |
2,448.6 |
|
|||
Rebase adjustments: |
|
|
|||||||
Acquisition |
|
— |
|
|
64.3 |
|
|||
Foreign currency |
|
2.4 |
|
|
(0.7 |
) |
|||
Other1 |
|
(1.7 |
) |
|
(6.6 |
) |
|||
Revenue – Rebased |
$ |
670.0 |
|
$ |
2,505.6 |
|
|||
Reported percentage change |
|
(1 |
)% |
|
4 |
% |
|||
|
|
|
|||||||
Rebased percentage change |
|
(1 |
)% |
|
2 |
% |
-
On
January 1, 2023 , the B2BCosta 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
|
Year ended
|
|||||||
|
In millions |
||||||||
|
|
|
|||||||
Adjusted OIBDA – Reported |
$ |
275.0 |
|
$ |
1,000.0 |
|
|||
Rebase adjustments: |
|
|
|||||||
Acquisition |
|
— |
|
|
(6.0 |
) |
|||
Foreign currency |
|
0.3 |
|
|
(0.6 |
) |
|||
Other1 |
|
(1.1 |
) |
|
(3.9 |
) |
|||
Adjusted OIBDA – Rebased |
$ |
274.2 |
|
$ |
989.5 |
|
|||
Reported percentage change |
|
5 |
% |
|
9 |
% |
|||
|
|
|
|||||||
Rebased percentage change |
|
5 |
% |
|
10 |
% |
-
On
January 1, 2023 , the B2BCosta 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
|
Year ended
|
|||||
|
CRC in billions |
||||||
|
|
|
|||||
Revenue – As reported |
71.1 |
|
285.3 |
|
|||
Rebased adjustment – Other1 |
0.9 |
|
3.6 |
|
|||
Revenue – As rebased |
72.0 |
|
288.9 |
|
|||
Reported percent change |
11 |
% |
4 |
% |
|||
|
|
|
|||||
Rebased percent change |
10 |
% |
3 |
% |
-
On
January 1, 2023 , the B2BCosta 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
|
Year ended
|
|||||
|
CRC in billions |
||||||
|
|
|
|||||
Adjusted OIBDA – Reported |
22.1 |
|
87.2 |
|
|||
Rebased adjustment – Other1 |
0.5 |
|
2.1 |
|
|||
Adjusted OIBDA – Rebased |
22.6 |
|
89.3 |
|
|||
Reported percent change |
39 |
% |
26 |
% |
|||
|
|
|
|||||
Rebased percent change |
36 |
% |
23 |
% |
-
On
January 1, 2023 , the B2BCosta 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/20240222782828/en/
Investor Relations
ir@lla.com
Corporate Communications
llacommunications@lla.com
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