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Item 7. Management’s Discussion and Analysis

2024-02-22 compared with 2023-02-22 · 245 added, 305 removed, 502 unchanged (52% of the section changed)

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Unless otherwise indicated, operational data (including subscriber statistics) is presented as of December 31, 2023.

A discussion regarding our financial condition and results of operations for the year ended December 31, 2021 compared with the year ended December 31, 2020 can be found under captions entitled “ Results of Operations ” and “ Liquidity and Capital Resources ” in the section entitled “ Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our annual report on Form 10-K for the year ended December 31, 2021 filed with the SEC on March 1, 2022, which is available free of charge through the SEC’s website at www.sec.gov or the Company’s website, https://investors.lla.com/financials/sec-filings.

A discussion regarding our financial condition and results of operations for the year ended December 31, 2022 compared with the year ended December 31, 2021 can be found under captions entitled “ Results of Operations ” and “ Liquidity and Capital Resources ” in the section entitled “ Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of our annual report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 22, 2023, which is available free of charge through the SEC’s website at www.sec.gov or the Company’s website, https://investors.lla.com/financials/sec-filings.

The Company’s website and the information contained therein, or incorporated therein, are not intended to be incorporated into this Annual Report on Form 10-K.

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over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and C&W Panama;

Puerto Rico, through our reportable segment Liberty Puerto Rico;

Puerto Rico and USVI, through our reportable segment Liberty Puerto Rico;

Costa Rica, through our reportable segment Liberty Costa Rica.

Chile, through our reportable segment VTR through September 30, 2022;

through our reportable segment C&W Networks & LatAm, (i) B2B services in certain other countries in Latin America and the Caribbean and (ii) wholesale communication services over its subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.

through our reportable segment Liberty Networks, (i) enterprise services in certain other countries in Latin America and the Caribbean and (ii) wholesale services over our subsea and terrestrial fiber optic cable networks that connect approximately 40 markets in that region.

At December 31, 2023, we (i) owned and operated fixed networks that passed 4,620,400 homes and served 3,933,400 RGUs comprising 1,801,400 broadband internet subscribers, 933,700 video subscribers and 1,198,300 fixed-line telephony subscribers, and (ii) served 7,977,400 mobile subscribers.

During 2022, we completed an organizational change with respect to our C&W operations whereby management of certain subsidiaries of C&W, which primarily operate our subsea and fiber optic cable networks, now report directly to the chief operating decision maker of Liberty Latin America and no longer report to the former C&W Caribbean and Networks segment decision maker.

As a result, the aforementioned subsidiaries of C&W are now a separate operating and reportable segment, herein referred to as the C&W Networks & LatAm segment.

In connection with this change, we have restated our segment presentation for all periods to separately present (i) C&W Caribbean and (ii) C&W Networks & LatAm.

Claro Panama Acquisition.

On September 14, 2021, we entered into a definitive agreement to acquire América Móvil’s operations in Panama in an all-cash transaction based upon an enterprise value of $200 million on a cash- and debt-free basis.

On July 1, 2022, we completed the acquisition of Claro Panama, which was financed through a combination of debt and existing cash.

On September 29, 2021, we entered into an agreement with América Móvil to contribute the Chile JV Entities to América Móvil’s Chilean operations to form the Chile JV that will be owned 50:50 by Liberty Latin America and América Móvil.

In October 2022, we completed the formation of the Chile JV and made a balancing payment to América Móvil totaling $76 million.

The transaction did not trigger a change of control under VTR’s debt agreements, and was not subject to Liberty Latin America or América Móvil shareholder approvals.

Beginning in October, we have accounted for our 50% interest in the Chile JV as an equity method investment.

Tower Transactions.

During November 2023, we entered into an agreement with Phoenix Tower International to monetize approximately 1,300 mobile tower sites across Panama, Jamaica, The Bahamas, Puerto Rico, Barbados, and the British Virgin Islands.

As of December 31, 2023, we completed these transactions across most markets, which resulted in the receipt of approximately $244 million, which is recorded as debt in our consolidated financial statements.

The transaction provides arrangements to extend coverage with a further 500 sites being built by Liberty Latin America and Phoenix Tower International over the next five years.

Puerto Rico and USVI Spectrum Acquisition.

During November 2023, we entered into an asset purchase agreement and a license purchase agreement with Dish Network to acquire Dish Network spectrum assets in Puerto Rico and USVI and prepaid mobile subscribers in those markets in exchange for cash and international roaming credits.

The aggregate purchase price of $256 million will be paid in four annual installments commencing on the closing date, subject to post-closing adjustments.

The transaction is subject to certain customary closing conditions, including regulatory approvals, and is expected to close during 2024.

In October 2022, we completed the formation of the Chile JV by contributing the Chile JV Entities into the Chile JV.

Subsequent to the formation of the Chile JV, we began accounting for our 50% interest in the Chile JV as an equity method investment.

Prior to the formation of the Chile JV, VTR was a wholly owned subsidiary.

As such, our consolidated statement of operations and cash flows for 2022 include VTR through the closing of the formation of the Chile JV.

Strategy and Management Focus

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While we seek to increase our customer base, we also seek to maximize the average revenue we receive from each household or business by increasing the penetration of our video, broadband internet, fixed-line telephony and mobile services with existing customers through product bundling and up-selling.

For information regarding our expectation with regard to property and equipment additions as a percent of revenue during 2023, see Liquidity and Capital Resources—Consolidated Statements of Cash Flows below.

Competition and Other External Factors

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Results of Operations

The comparability of our operating results during 2022 and 2021 is affected by acquisitions, a disposal and FX effects.

The comparability of our operating results during 2023 and 2022 is affected by an acquisition, a disposition and FX.

As we use the term, “organic” changes exclude FX and the impacts of acquisitions and disposals, each as further discussed below.

In the following discussion, we quantify the estimated impacts on the operating results of the periods under comparison that are attributable to acquisitions and disposals.

We (i) acquired (a) América Móvil’s operations in Panama in July 2022, (b) 96% of Broadband VI, LLC’s operations in the USVI effective December 2021, (c) Telefónica’s operations in Costa Rica in August 2021, and (ii) disposed of the Chile JV Entities in October 2022 in connection with the formation of the Chile JV.

With respect to acquisitions, organic changes and the calculations of our organic change percentages exclude the operating results of an acquired entity during the first 12 months following the date of acquisition.

With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes and the calculations of our organic change percentages to the same extent that those operations are not included in the current year.

Changes in foreign currency exchange rates may have a significant impact on our operating results, as VTR, Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S.

Our primary exposure to FX risk, prior to the formation of the Chile JV, was to the Chilean peso, as a significant portion of our revenue was derived from VTR.

For example, the average FX rate (utilized to translate our consolidated statements of operations) for the U.S.

dollar per one Chilean peso depreciated by 17% for the nine months ended September 30, 2022, the period prior to the formation of the Chile JV in October 2022, as compared with the corresponding period in 2021.

We (i) acquired América Móvil’s operations in Panama during July 2022 and (ii) in connection with the formation of the Chile JV, disposed of the Chile JV Entities during October 2022.

With respect to acquisitions, organic changes exclude the operating results of an acquired entity during the first 12 months following the date of acquisition.

With respect to disposals, the prior-year operating results of disposed entities are excluded from organic changes to the same extent that those operations are not included in the current year.

Changes in foreign currency exchange rates may have a significant impact on our operating results, as Liberty Costa Rica and certain entities within C&W have functional currencies other than the U.S.

The impacts to the various components of our results of operations that are attributable to changes in FX are highlighted below.

For information concerning our foreign currency

risks and applicable foreign currency exchange rates, see Item 7A .

For information concerning our foreign currency risks and applicable foreign currency exchange rates, see Item 7A .

Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency Risk below.

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As we have the ability to control certain subsidiaries that are not wholly-owned, we include 100% of the revenue and expenses of these entities in our consolidated statements of operations despite the fact that third parties own significant interests in these entities.

The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and (ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations.

The noncontrolling owners’ interests in the operating results of (i) certain subsidiaries of C&W and Liberty Puerto Rico, and (ii) Liberty Costa Rica are reflected in net earnings or loss attributable to noncontrolling interests in our consolidated statements of operations.

On January 1, 2023, the B2B Costa Rican operations within our Liberty Networks segment was sold to our Liberty Costa Rica segment.

This sale did not have a significant impact on the financial results of our Liberty Networks or Liberty Costa Rica segments.

We are subject to inflationary pressures with respect to certain costs and foreign currency exchange risk with respect to costs and expenses that are denominated in currencies other than the respective functional currencies of our reportable segments.

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Year Ended December 31, 2023 as Compared with Year Ended December 31, 2022

Operating Income or Loss

The following table sets forth the organic and non-organic changes in the components of operating income or loss during 2023, as compared to 2022.

Year ended December 31, Increase (decrease) from:

Increase (decrease) An acquisition A disposition

2023 2022 FX Organic

Revenue $ 4,511.1 $ 4,808.6 $ (297.5) $ 84.1 $ 69.6 $ (450.6) $ (0.6)

Operating costs and expenses (exclusive of depreciation and amortization, shown separately below):

Programming and other direct costs of services

1,020.4 1,210.5 (190.1) 18.2 17.8 (138.6) (87.5)

Other operating costs and expenses 1,877.8 1,981.7 (103.9) 34.9 50.2 (204.0) 15.0

Depreciation and amortization 1,008.3 910.7 97.6 14.9 17.0 — 65.7

Impairment, restructuring and other operating items, net 86.9 619.2 (532.3) 0.2 — (4.8) (527.7)

3,993.4 4,722.1 (728.7) 68.2 85.0 (347.4) (534.5)

Operating income $ 517.7 $ 86.5 $ 431.2 $ 15.9 $ (15.4) $ (103.2) $ 533.9

The changes to our operating income during 2023, as compared to 2022, as reflected in the table above, are primarily due to (i) decreases associated with impairment, restructuring and other operating items, net, (ii) the disposition of the Chile JV Entities and (iii) organic changes.

For further discussion and analysis of organic changes in revenue and costs, see Revenue, Programming and Other Direct Costs of Services, and Other Operating Costs sections below.

Consolidated Adjusted OIBDA

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GAAP measure.

Adjusted OIBDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance.

Adjusted OIBDA is the primary measure used by our CODM 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.

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The following table sets forth organic and non-organic changes in Adjusted OIBDA for the period indicated:

C&W Caribbean C&W Panama C&W Networks & LatAm Liberty Puerto Rico Liberty Costa Rica VTR Corporate Intersegment eliminations Consolidated

C&W Caribbean C&W Panama Liberty Networks Liberty Puerto Rico Liberty Costa Rica VTR Corporate Intersegment eliminations Consolidated

Adjusted OIBDA for the twelve months ending:

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FX — — (0.5) — 31.8 — — — 31.3

Acquisitions/disposition, net — 1.6 — 15.1 47.0 (55.3) — — 8.4

Acquisition/disposition, net — 1.6 — — — (115.6) — — (114.0)

December 31, 2023 $ 596.9 $ 227.7 $ 261.5 $ 485.5 $ 203.1 $ — $ (73.1) $ — $ 1,701.6

Adjusted OIBDA Margin

The following table sets forth the Adjusted OIBDA margin (Adjusted OIBDA divided by revenue) of each of our reportable segments:

The following table sets forth the Adjusted OIBDA Margin of each of our reportable segments:

Year ended December 31,

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C&W Panama 30.7 29.4

C&W Networks & LatAm 61.3 61.2

Liberty Networks 57.7 61.3

Liberty Puerto Rico 34.2 36.3

Liberty Costa Rica 37.1 30.5

VTR (a) 25.7 33.0

(a) During October 2022, we contributed the Chile JV Entities into the Chile JV.

As such, subsequent to September 30, 2022, VTR is no longer included in our consolidated results of operations and is no longer a reportable segment.

Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses, as further discussed below.

The decrease in Adjusted OIBDA margin for C&W Panama is due in part from the inclusion of Claro Panama operations following the Claro Panama Acquisition, which generates a lower Adjusted OIBDA margin compared to legacy operations.

We incurred in aggregate $26 million of integration costs during the year ended December 31, 2022 in our Liberty Puerto Rico, Liberty Costa Rica and C&W Panama segments.

During the year ended December 31, 2021, we incurred $16 million in our Liberty Puerto Rico and Liberty Costa Rica segments.

The decrease in the Adjusted OIBDA margin for VTR is primarily related to a decline in revenue, RGUs and ARPU resulting from significant competition in Chile.

Most of our segments derive their revenue primarily from (i) residential fixed services, including video, broadband internet and fixed-line telephony, (ii) mobile services and (iii) B2B services.

C&W Networks & LatAm also provides wholesale communication services over its subsea and terrestrial fiber optic cable networks.

While not specifically discussed in the below explanations of the changes in revenue, we are experiencing significant competition in all of our markets.

This competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU.

Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses.

Within our Liberty Puerto Rico, Liberty Costa Rica and C&W Panama segments, we incurred aggregate integration costs of $26 million during each of 2023 and 2022.

Most of our segments derive their revenue primarily from (i) residential fixed services, including video, broadband internet and fixed-line telephony, (ii) mobile services and (iii) B2B enterprise services.

Liberty Networks also provides wholesale services over its subsea and terrestrial fiber optic cable networks.

While not specifically discussed in the below explanations of the changes in revenue, we experience significant competition in all of our markets.

Competition has an adverse impact on our ability to increase or maintain our RGUs and/or ARPU.

Variances in the subscription revenue that we receive from our customers are a function of (i) changes in the number of RGUs or mobile subscribers during the period and (ii) changes in ARPU.

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In the following discussion, we discuss ARPU changes in terms of the net impact of the above factors on the ARPU that is derived from our video, broadband internet, fixed-line telephony and mobile products.

The following tables set forth the organic and non-organic changes in revenue by reportable segment.

The following table sets forth the organic and non-organic changes in revenue by reportable segment.

Year ended December 31, Increase (decrease) Increase (decrease) from:

2022 2021 FX Acquisitions (disposition), net Organic

2023 2022 FX Acquisition (disposition), net Organic

in millions, except percentages

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C&W Panama 742.6 642.7 99.9 — 69.6 30.3

C&W Networks & LatAm 450.8 431.9 18.9 (9.1) — 28.0

Liberty Networks 453.3 450.8 2.5 (1.1) — 3.6

Liberty Puerto Rico 1,417.7 1,463.6 (45.9) — — (45.9)

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ARPU (b) (0.9)

Decrease in residential fixed non-subscription revenue (1.7)

Total increase in residential fixed revenue 11.6

Increase in residential mobile service revenue (c) 16.2

Increase in residential mobile interconnect, inbound roaming, equipment sales and other (d) 4.0

Increase in B2B revenue (e) 23.3

Decrease in residential fixed non-subscription revenue (c) (3.7)

Total decrease in residential fixed revenue (0.5)

Increase in residential mobile service revenue (d) 16.0

Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) 10.9

Decrease in B2B revenue (f) (26.1)

Total organic increase 0.3

Impact of FX (0.1)

(a) The increases are primarily attributable to higher average broadband internet RGUs.

(b) The decrease is primarily due to lower ARPU from broadband internet and video services, partially offset by higher ARPU from fixed-line telephony service.

(c) The increase is attributable to the net effect of (i) higher average numbers of mobile subscribers, mostly due to growth from fixed-mobile convergence efforts and increases in sales initiatives, and (ii) declines in ARPU as a result of certain pricing strategies.

(d) The increase is primarily attributable to higher inbound roaming traffic.

(e) The increase is attributable to higher revenues from (i) fixed and managed services, primarily due to broadband internet services-related growth, (ii) mobile services, driven by higher average numbers of subscribers, and (iii) certain non-recurring B2B contracts.

(a) The increase is primarily due to higher average broadband internet RGUs partially offset by lower average video RGUs.

(b) The decrease is primarily due to the net impact of higher ARPU from broadband internet services more than offset by lower ARPU from video and fixed-line telephony services.

(c) The decrease is primarily attributable to (i) lower interconnect revenue and (ii) a decrease associated with lower sports content revenue.

(d) The increase is primarily attributable to higher average numbers of postpaid mobile subscribers, mostly due to growth from fixed-mobile convergence efforts.

(e) The increase is primarily attributable to an increase in inbound roaming driven by higher volumes of traffic.

(f) The decrease is attributable to the net effect of (i) the discontinuation of a non-core transit services arrangement at C&W Jamaica, (ii) higher fixed and managed services, primarily due to broadband internet services-related growth, and (iii) an increase in revenue associated with non-recurring projects.

C&W Panama’s revenue by major category is set forth below:

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Total residential revenue 434.6 378.2 56.4 14.9

B2B service revenue 264.5 249.8 14.7 5.9

B2B revenue 308.0 264.5 43.5 16.4

Total $ 742.6 $ 642.7 $ 99.9 15.5

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Average number of RGUs (a) $ 10.7

ARPU (b) (3.2)

Decrease in residential fixed non-subscription revenue (2.1)

Total increase in residential fixed revenue 6.9

Decrease in residential mobile service revenue (c) (0.7)

Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) (5.2)

Increase in B2B revenue (e) 3.1

Decrease in residential mobile service revenue (b) (1.1)

Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (c) (7.4)

Increase in B2B revenue (d) 31.9

Total organic increase 30.3

Impact of an acquisition 69.6

(a) The increase is primarily attributable to higher average broadband internet and video RGUs.

(b) The decrease is primarily due to lower ARPU from (i) fixed-line telephony services, as customers shift to lower priced plans and (ii) video services, mainly due to customer discounts.

(c) The decrease is primarily due to the net effect of (i) lower ARPU from prepaid mobile services, mainly attributable to lower recharging activity, and (ii) higher average numbers of postpaid mobile subscribers.

(d) The decrease is primarily attributable to lower interconnect revenue due to lower call volume.

(e) The increase is primarily due to increases in the volume of certain projects.

C&W Networks & LatAm .

C&W Networks & LatAm’s revenue by major category is set forth below:

Year ended December 31, Increase

(a) The increase is primarily due to higher average broadband internet and video RGUs.

(b) The decrease is primarily due to the net effect of (i) lower average numbers of prepaid mobile subscribers, (ii) higher ARPU from prepaid mobile services, mainly attributable to higher recharges per customer, and (iii) higher average numbers of postpaid mobile subscribers.

(c) The decrease is primary due to the net effect of (i) lower handset revenue, (ii) higher inbound roaming, and (iii) lower interconnect revenue, primarily due to lower traffic.

(d) The increase is primarily due to revenue from government-related projects.

Liberty Networks .

Liberty Networks’ revenue by major category is set forth below:

Year ended December 31, Increase (decrease)

2023 2022 $ %

in millions, except percentages

Service revenue $ 113.7 $ 109.0 $ 4.7 4.3

Subsea network revenue 337.1 322.9 14.2 4.4

Enterprise revenue $ 118.5 $ 113.7 $ 4.8 4.2

Wholesale revenue 334.8 337.1 (2.3) (0.7)

Total $ 453.3 $ 450.8 $ 2.5 0.6

The details of the changes in C&W Networks & LatAm’s revenue during 2022, as compared to 2021, are set forth below (in millions):

Increase in B2B service revenue (a) $ 9.7

Increase in B2B subsea network revenue (b) 18.3

The details of the changes in Liberty Networks’ revenue during 2023, as compared to 2022, are set forth below (in millions):

Increase in enterprise revenue (a) $ 5.3

Decrease in wholesale revenue (b) (1.7)

Total organic increase 3.6

Impact of FX (1.1)

(a) The increase is primarily attributable to (i) higher B2B connectivity revenue and (ii) growth in managed services.

(b) The increase is primarily due to (i) an increase associated with revenue recognized on a cash basis for services provided to a significant customer, (ii) higher affiliate revenue, (iii) the net negative impact of (a) lower amortized prepaid capacity and operating and maintenance revenue driven by the cancellation of prepaid capacity contracts in prior periods, and (b) higher revenue associated with the recognition of deferred revenue and penalties upon the termination of prepaid capacity contracts, and (iv) a net increase in lease capacity revenue, resulting from customer growth, partially offset by service disconnections and lower revenue from existing customers due to price erosion.

(a) The increase is primarily attributable to the net effect of (i) higher B2B connectivity revenue, (ii) a decrease attributable to our B2B operations that were sold to the Liberty Costa Rica segment in January 2023, (iii) growth in managed services and (iv) an increase associated with sales-type leases on CPE installed on long-term customer solutions.

(b) The decrease is primarily due to the net effect of (i) lower amortized prepaid capacity and operating and maintenance revenue driven by the cancellation of prepaid capacity contracts in prior periods, (ii) a decrease in revenue associated with the recognition of deferred revenue and penalties upon the termination or modification of prepaid capacity contracts, (iii) higher inter-segment revenue and (iv) an increase in non-recurring revenue related to a sales-type lease.

Liberty Puerto Rico.

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Non-subscription revenue 25.5 22.1 3.4 15.4

22.1 19.3 2.8 14.5

Total residential fixed revenue

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The details of the changes in Liberty Puerto Rico’s revenue during 2023, as compared to 2022, are set forth below (in millions):

Increase (decrease) in residential fixed subscription revenue due to change in:

Increase in residential fixed subscription revenue due to change in:

Average number of RGUs (a) $ 16.0

ARPU (b) (13.9)

Increase in residential fixed non-subscription revenue 0.6

Increase in residential fixed non-subscription revenue (c) 3.4

Total increase in residential fixed revenue 24.8

Decrease in residential mobile service revenue (c) (32.8)

Increase in residential mobile interconnect, inbound roaming, equipment sales and other (d) 14.9

Increase in B2B revenue (e) 0.2

Increase in other revenue 3.6

Total organic decrease (4.1)

Impact of an acquisition (f) 24.5

Decrease in residential mobile service revenue (d) (42.8)

Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) (18.4)

Increase in B2B revenue (f) 3.7

Decrease in other revenue (g) (13.2)

Total $ (45.9)

(a) The increase is primarily attributable to higher average broadband internet RGUs.

(b) The decrease is primarily attributable to lower ARPU from broadband internet and video services, which includes the impact of credits issued to customers during 2022 as a result of Hurricane Fiona.

(c) The decrease is primarily due to (i) lower ARPU from mobile services, primarily resulting from higher contract asset amortization driven by increases in handset sales and subsidy levels, and (ii) a decline in the average number of prepaid mobile subscribers.

(d) The increase is primarily due to higher volumes of handset sales.

(e) The increase is primarily due to the net effect of (i) higher revenue associated with data services, and (ii) lower revenue from equipment sales.

(f) The impact of an acquisition includes FCC revenue related to the BBVI Acquisition.

(b) The increase is primarily due to (i) higher ARPU from video services, as rate increases were only partly offset by customer downgrades to lower ARPU plans and (ii) the impact of credits issued to customers during 2022 as a result of (a) Hurricane Fiona and (b) power outages.

(d) The decrease is primarily due to (i) lower ARPU from mobile services, primarily resulting from (a) a higher number of low-cost and discounted plans and (b) higher contract asset amortization, and (ii) a lower average number of mobile subscribers.

(e) The decrease is primarily driven by (i) lower inbound roaming revenue, including the impact of changing to a fixed contract for part of our inbound roaming traffic and (ii) lower equipment revenue driven by decreased sales in the fourth quarter of 2023.

(f) The increase is primarily due to the impact of credits issued to customers during the third quarter of 2022 as a result of Hurricane Fiona and higher revenue from new customers and fixed services.

(g) The decrease is primarily attributable to funds received from the FCC, which we receive in relationship to expanding and improving our fixed and mobile networks, related to (i) the impact from amounts we recognized during the third quarter of 2022 in USVI and (ii) a decline in the rate of funding beginning in the second half of 2023.

Liberty Costa Rica .

Liberty Costa Rica’s revenue by major category is set forth below:

Year ended December 31, Increase (decrease)

Year ended December 31, Increase

2023 2022 $ %

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Total residential revenue 480.9 396.5 84.4 21.3

B2B service revenue 38.7 14.0 24.7 176.4

B2B revenue 67.0 44.8 22.2 49.6

Total $ 547.9 $ 441.3 $ 106.6 24.2

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ARPU (b) (7.8)

Decrease in residential fixed non-subscription revenue (c) (1.0)

Total increase in residential fixed revenue 3.2

Increase in residential fixed non-subscription revenue (c) 7.0

Total decrease in residential fixed revenue (3.2)

Increase in residential mobile service revenue (d) 8.5

Increase in residential mobile interconnect, inbound roaming, equipment sales and other 0.1

Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue 2.7

Increase in B2B revenue (e) 13.2

Total organic increase 21.2

Impact of an acquisition 169.6

Impact of FX 85.4

Total $ 106.6

(a) The increase is primarily attributable to higher average broadband internet RGUs.

(b) The decrease is primarily due to (i) lower ARPU from video services and fixed-line telephony and (ii) the impact of product mix.

(c) The decrease is primarily due to a discontinued Costa Rica government-sponsored assistance program that provided computer equipment to low-income households offset by an increase in sales of inventory to employees and third-parties.

(d) The increase is primarily attributable to higher postpaid average mobile subscribers.

(e) The increase is primarily due to higher average broadband service revenue.

VTR’s revenue by major category is set forth below:

Year ended December 31, Decrease

2022 2021 $ %

in millions, except percentages

Residential revenue:

Residential fixed revenue:

Subscription revenue $ 392.3 $ 685.1 $ (292.8) (42.7)

Non-subscription revenue 8.9 14.9 (6.0) (40.3)

Total residential fixed revenue 401.2 700.0 (298.8) (42.7)

Residential mobile revenue:

Service revenue 25.8 48.0 (22.2) (46.3)

Interconnect, inbound roaming, equipment sales and other 2.9 7.3 (4.4) (60.3)

Total residential mobile revenue 28.7 55.3 (26.6) (48.1)

Total residential revenue 429.9 755.3 (325.4) (43.1)

B2B revenue 20.7 32.2 (11.5) (35.7)

Total (a) $ 450.6 $ 787.5 $ (336.9) (42.8)

(a) The amounts for the 2022 period reflect the revenue of VTR for the period from January 1, 2022 through the October closing of the Chile JV.

The details of the changes in VTR’s revenue during 2022, as compared to 2021, are set forth below (in millions):

Decrease in residential fixed subscription revenue due to change in:

Average number of RGUs (a) $ (22.2)

ARPU (b) (55.5)

Decrease in residential fixed non-subscription revenue (0.9)

Total decrease in residential fixed revenue

Decrease in residential mobile service revenue (c) (7.8)

Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue

Decrease in B2B service revenue (0.8)

Total organic decrease (89.7)

Impact of disposition (174.8)

Impact of FX (72.4)

Total $ (336.9)

(a) The decrease is primarily attributable to lower average broadband internet and video RGUs.

(b) The decrease is primarily due to lower ARPU from broadband internet services, mainly associated with (i) increased competition that generally resulted in (a) the churn of higher-ARPU customers and (b) the addition of lower-ARPU customers, and (ii) strategic initiatives implemented during 2022.

Higher discounts and lower-ARPU customers related to video and telephony services also contributed to the decline in ARPU.

(c) The decrease is primarily due to (i) lower ARPU from mobile services, mainly associated with strategic initiatives implemented during 2022, and (ii) lower average numbers of mobile subscribers.

(a) The decrease is primarily due to the net impact of (i) lower average video RGUs and (ii) higher average fixed-line telephony RGUs.

(b) The decrease is primarily attributable to lower ARPU from video services and, to a lesser extent, broadband internet services, and telephony services.

This decrease is in part due to (i) higher retention discounts, and (ii) declines in higher ARPU plans.

(d) The increase is primarily due to the net effect of (i) higher average postpaid mobile subscribers, (ii) lower prepaid and postpaid mobile ARPU and (iii) higher average prepaid mobile subscribers.

(e) The increase is primarily attributable to (i) higher revenue from fixed services, which includes upfront revenue recognition associated with certain projects entered into during 2023, and (ii) higher revenue from mobile services.

In addition, the increase is due to the B2B operations within our Liberty Networks segment that was acquired by the Liberty Costa Rica segment in January 2023.

Programming and other direct costs of services

Programming and other direct costs of services include programming and copyright costs, interconnect and access costs, equipment costs, which primarily relate to costs of mobile handsets and other devices, and other direct costs related to our operations.

Programming and copyright costs, which represent a significant portion of our operating costs, may increase in future periods as a result of (i) higher costs associated with the expansion of our digital video content, including rights associated with ancillary product offerings and rights that provide for the broadcast of live sporting events, (ii) rate increases or (iii) growth in the number of our video subscribers.

Consolidated.

The following tables set forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis.

The following table sets forth the organic and non-organic changes in programming and other direct costs of services on a consolidated basis.

Increase (decrease) from:

Year ended December 31, Increase (decrease) Acquisitions (disposition), net Organic

Year ended December 31, Increase (decrease) An acquisition A disposition Organic

Programming and copyright $ 237.2 $ 360.3 $ (123.1) $ 5.3 $ 1.0 $ (113.5) $ (15.9)

Interconnect 302.5 350.3 (47.8) 5.0 7.6 (21.9) (38.5)

Equipment and other

499.9 425.8 74.1 (1.7) 29.3 46.5

Equipment 320.6 369.8 (49.2) 7.8 8.6 (2.2) (63.4)

Other 160.1 130.1 30.0 0.1 0.6 (1.0) 30.3

Total programming and other direct costs of services $ 1,020.4 $ 1,210.5 $ (190.1) $ 18.2 $ 17.8 $ (138.6) $ (87.5)

5 unchanged sentences

Interconnect 75.2 119.8 (44.6) — (44.6)

Equipment and other 84.9 73.8 11.1 (0.4) 11.5

Equipment 49.0 42.5 6.5 (0.1) 6.6

Other 34.0 42.4 (8.4) — (8.4)

Total programming and other direct costs of services $ 229.7 $ 290.6 $ (60.9) $ (0.1) $ (60.8)

• Programming and copyright:

The organic decrease is primarily due to the (i) the expiration of certain programming content during the first half of 2022, and (ii) the positive impact associated with the reassessment of a content-related accrual during 2022.

• Equipment and other:

The organic increase is primarily due to (i) higher capacity fees incurred in connection with the purchase of wholesale services from C&W Networks & LatAm, (ii) higher costs associated with certain non-recurring B2B contracts and (iii) higher volumes of handset sales to B2B customers.

The following table sets forth the organic changes in programming and other direct costs of services for our C&W Panama segment.

The organic decrease is due in part to the net impact of (i) a decrease resulting from the renegotiation of certain content agreements, and (ii) the negative impact associated with the reassessment of a content-related accrual during 2022.

• Interconnect:

The organic decrease is primarily due to the discontinuation of a non-core transit services arrangement at C&W Jamaica as of January 1, 2023.

The organic increase is primarily due to the net effect of (i) higher inventory write-offs and (ii) lower volumes of handset sales.

The organic decrease is primarily due to lower (i) B2B connectivity costs and (ii) managed service costs.

The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our C&W Panama segment.

Increase (decrease) from:

3 unchanged sentences

Interconnect 72.2 63.8 8.4 7.6 0.8

Equipment and other

125.1 111.6 13.5 9.2 4.3

Equipment 41.6 38.2 3.4 8.6 (5.2)

Other 117.8 86.9 30.9 0.6 30.3

Total programming and other direct costs of services $ 253.0 $ 207.4 $ 45.6 $ 17.8 $ 27.8

• Programming and copyright:

The organic increase is primarily due to RGU growth.

• Interconnect:

The organic decrease is primarily due to lower call volumes.

• Equipment and other:

The organic increase is primarily due to (i) higher volumes and unit costs of handset sales and (ii) higher costs associated with certain non-recurring B2B contracts.

C&W Networks & LatAm.

The following table sets forth the organic changes in programming and other direct costs of services for our C&W Networks & LatAm segment.

Year ended December 31, Increase Increase (decrease) from:

The organic decrease is primarily due to lower volumes of mobile handsets.

The organic increase is primarily due to higher costs associated with certain government-related projects.

Liberty Networks .

The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our Liberty Networks segment.

Year ended December 31, Increase (decrease) Increase (decrease) from:

2023 2022 FX Organic

Interconnect $ 49.3 $ 45.6 $ 3.7 $ (0.1) $ 3.8

Equipment and other

14.4 10.3 4.1 (1.0) 5.1

Equipment 0.6 0.7 (0.1) — (0.1)

Other 18.8 13.7 5.1 (0.1) 5.2

Total programming and other direct costs of services $ 68.7 $ 60.0 $ 8.7 $ (0.2) $ 8.9

• Equipment and other:

The organic increase is primarily due to lower amounts of capitalizable costs associated with licenses, as part of a migration into contracts with shorter terms and more cloud-based arrangements.

• Interconnect:

The organic increase is primarily due to (i) higher inter-segment costs and (ii) higher backhaul costs associated with increases in connectivity revenue.

The organic increase is primarily due to (i) lower amounts of capitalizable costs associated with licenses, as part of a migration into contracts with shorter terms and more cloud-based arrangements, (ii) higher costs associated with sales-type leases on CPE installed on long-term customer solutions and (iii) increases in costs associated with software licenses.

Liberty Puerto Rico .

The following table sets forth the organic changes in programming and other direct costs of services for our Liberty Puerto Rico segment.

Increase (decrease) Increase (decrease) from:

Year ended December 31, An Acquisition

2022 2021 Organic

The following table sets forth the changes in programming and other direct costs of services for our Liberty Puerto Rico segment.

Year ended December 31, Increase (decrease)

Programming and copyright $ 112.4 $ 109.7 $ 2.7

Interconnect 93.3 84.3 9.0

Equipment and other

248.4 213.2 35.2 0.7 34.5

Equipment 179.6 246.3 (66.7)

Other 2.1 2.1 —

Total programming and other direct costs of services $ 387.4 $ 442.4 $ (55.0)

• Programming and copyright:

The increase is primarily due to the net effect of higher programming rates and lower average subscribers.

• Interconnect:

The organic decrease primarily relates to lower roaming expense due in part to (i) lower rates and (ii) the positive impact from the renegotiation of a certain roaming agreement during the fourth quarter of 2021.

• Equipment and other:

The organic increase is primarily associated with (i) higher sales volume, (ii) an increase related to lower of cost or market adjustments on equipment-related inventory, and (iii) equipment-related integration costs .

The increase is primarily due to higher roaming costs, including the impact of changing to a fixed contract for part of our inbound roaming traffic.

The decrease is primarily due to (i) lower handset sales due to changes in our subsidy programs, (ii) equipment credits for handset purchases that we began receiving in 2023, including an amount recognized during the first half of 2023 associated with handsets purchased prior to 2023, and (iii) lower equipment-related integration costs associated with the AT&T Acquisition.

Liberty Costa Rica .

1 unchanged sentence

Increase (decrease) from:

Year ended December 31, Increase (decrease) FX An acquisition Organic

Programming and copyright $ 33.9 $ 35.9 $ (2.0) $ (1.5) $ — $ (0.5)

Interconnect 32.8 14.5 18.3 0.2 17.4 0.7

Equipment and other

39.9 17.4 22.5 0.3 21.5 0.7

Total programming and other direct costs of services $ 106.6 $ 67.8 $ 38.8 $ (1.0) $ 38.9 $ 0.9

The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our VTR segment.

Year ended December 31, Decrease Increase (decrease) from:

2022 2021 FX A disposition Organic

Year ended December 31, Increase (decrease) FX Organic

Programming and copyright $ 33.1 $ 33.9 $ (0.8) $ 5.3 $ (6.1)

Interconnect 33.1 32.8 0.3 5.1 (4.8)

Equipment and other

3.2 11.1 (7.9) (0.6) (2.1) (5.2)

Equipment 49.8 39.9 9.9 7.8 2.1

Other 4.2 — 4.2 0.3 3.9

Total programming and other direct costs of services $ 120.2 $ 106.6 $ 13.6 $ 18.5 $ (4.9)

• Programming and copyright:

The organic decrease is primarily due to the net effect of (i) lower average subscribers, (ii) lower content rates, (iii) the positive impacts associated with the renegotiation of certain content agreements, (iv) the positive impact associated with the reassessment of an accrual associated with video-on-demand content-related costs during 2022, and (v) an increase related to a settlement associated with a programming contract during 2022.

The organic decrease is primarily due the net effect of (i) the positive impact of FX associated with non-CRC denominated contracts, (ii) higher content-related costs, and (iii) lower programming costs associated with declines in video RGUs.

• Interconnect:

The organic increase is primarily due to (i) higher rates and (ii) higher national leased capacity.

• Equipment and other:

The organic decrease is due to lower volumes of equipment sales.

The organic decrease is primarily due to (i) lower volumes of local and international traffic and (ii) the positive impact of FX on non-CRC denominated contracts.

The organic increase is primarily due to the net effect of (i) higher CPE and handset costs associated with sales growth and (ii) the positive impact of FX associated with non-CRC denominated handset costs.

The organic increase is primarily due to higher costs associated with certain B2B projects.

Other operating costs and expenses

Other operating costs and expenses set forth in the tables below comprise the following cost categories:

Other operating costs and expenses set forth in the table below comprise the following cost categories:

• Personnel and contract labor-related costs, which primarily include salary-related and cash bonus expenses, net of capitalizable labor costs, and temporary contract labor costs;

7 unchanged sentences

Increase (decrease) from:

Year ended December 31, Increase (decrease) Acquisitions (disposition), net Organic

Year ended December 31, Increase (decrease) An acquisition A disposition Organic

Personnel and contract labor $ 557.6 $ 597.7 $ (40.1) $ 4.7 $ 6.0 $ (41.8) $ (9.0)

21 unchanged sentences

• Personnel and contract labor:

The organic decrease is primarily due to the net effect of (i) a decrease resulting form lower bonus-related achievement levels and (ii) an increase as certain employee bonuses that were granted on a cash-basis in 2022 and recognized as personnel costs, as compared to grants of share-based awards for certain employee bonuses in 2021 that were recognized as share-based compensation.

The organic decrease is primarily due to the net effect of (i) lower costs resulting from increases in capitalized labor, and (ii) salary increases.

• Network-related:

The organic decrease is primarily due to the net effect of (i) lower network-related maintenance costs, mainly driven by the renegotiation and cancellation of certain vendor contracts as well as lower overall spending, (ii) lower capacity charges associated with the use of C&W Networks & LatAm’s subsea network and (iii) higher utility costs.

The organic decrease is primarily due to declines associated with lower (i) truck rolls, (ii) system power costs and (iii) maintenance costs.

These declines were partially offset by higher capacity charges associated with the use of Liberty Networks’ subsea network.

In addition, the decrease is impacted by lower leased line costs resulting from the renegotiation of pole rental contracts during 2023.

• Service-related:

The organic increase is primarily due to professional services and IT-related expense.

• Commercial:

The organic decrease is primarily due to (i) lower call center volumes and (ii) lower marketing and sales costs.

The following table sets forth the organic changes in other operating costs and expenses for our C&W Panama segment.

The organic increase is primarily due to increases in professional services in connection with customer value propositions within certain of our markets.

• Facility, provision, franchise and other:

The organic increase is primarily due to the net effect of (i) lower bad debt provisions driven by improved collections, (ii) higher travel-related expenses and (iii) higher franchise fees, including

the negative impact of an accrual release during the first quarter of 2022 related to a favorable court ruling associated with an industry levy on franchise fees.

The following table sets forth the organic and non-organic changes in other operating costs and expenses for our C&W Panama segment.

Increase (decrease) from:

Year ended December 31, Increase An Acquisition

Year ended December 31, Increase (decrease) An Acquisition

2023 2022 Organic

6 unchanged sentences

Total other operating costs and expenses $ 264.6 $ 250.8 $ 13.8 $ 50.2 $ (36.4)

• Network-related:

The organic decrease is primarily due to the net effect of (i) lower system power and maintenance costs and (ii) higher capacity charges associated with the use of Liberty Networks’ subsea network.

• Commercial:

The organic decrease is primarily due to (i) lower third-party sales commissions, mainly resulting from integration-related activities, and (ii) lower marketing costs.

• Facility, provision, franchise and other:

The organic increase is primarily driven by higher bad debt expense, primarily driven by a factoring arrangement and an increase in underlying rates used to compute the expected credit loss.

C&W Networks & LatAm.

The following table sets forth the organic changes in other operating costs and expenses for our C&W Networks & LatAm segment.

The organic decrease is primarily due to (i) lower office and facility-related costs, mainly resulting from integration efforts and (ii) lower bad debt expense, mostly driven by factoring of certain receivables.

Liberty Networks.

The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Networks segment.

Year ended December 31, Increase (decrease) Increase (decrease) from:

7 unchanged sentences

Total other operating costs and expenses $ 126.2 $ 117.9 $ 8.3 $ (0.5) $ 8.8

• Personnel and contract labor:

The organic increase is primarily due to higher salary-related expenses.

• Network-related:

The organic increase is primarily related to higher repair and maintenance costs.

• Facility, provision, franchise and other:

The organic increase is primarily due to higher bad debt provisions and travel-related costs.

The organic increase is primarily due to higher bank and tax-related fees.

Liberty Puerto Rico .

The following table sets forth the organic changes in other operating costs and expenses for our Liberty Puerto Rico segment.

Increase (decrease) from:

Year ended December 31, Increase (decrease) An acquisition

2022 2021 Organic

The following table sets forth the changes in other operating costs and expenses for our Liberty Puerto Rico segment.

Year ended December 31, Increase (decrease)

Personnel and contract labor $ 154.9 $ 162.2 $ (7.3)

6 unchanged sentences

• Personnel and contract labor:

The organic increase is primarily due to the net effect of (i) higher salaries and other personnel costs, including the impact of higher amortization of deferred commissions associated with certain accounting in connection with the AT&T Acquisition, (ii) an increase in charges allocated from our Corporate operations, and (iii) lower bonus-related expenses.

The decrease is primarily driven by the net effect of (i) a decline resulting from the receipt of a payroll tax credits during 2023 awarded to businesses that continued to pay employees or that experienced significant declines in gross receipts during the COVID-19 pandemic and (ii) higher amortization of deferred commissions in connection with the AT&T Acquisition.

• Network-related:

The organic increase is primarily due to the net effect of (i) incremental expenses incurred in operating the network as a result of the impacts from Hurricane Fiona, (ii) lower costs related to the termination of the transition services agreement entered into with AT&T associated with network maintenance and licenses, and (iii) an increase in network-related integration costs associated with the AT&T Acquisition.

The increase is primarily due to the net effect of (i) an increase in maintenance costs and (ii) a decline resulting from costs associated with Hurricane Fiona incurred during 2022.

• Service-related:

The organic increase is primarily due to the net effect of (i) an increase in charges allocated from our Corporate operations and (ii) lower costs associated with the termination of the transition services agreement entered into with AT&T associated with commissions and software licenses.

Service-related integration costs associated with the AT&T Acquisition are expected to continue to grow in future periods.

The increase is primarily due to higher (i) professional services charges, including (a) the impact of certain accrual adjustments during 2022 and (b) an increase in service-related integration costs, (ii) IT-related services, including higher software license costs, and (iii) fees charged from our corporate operations.

• Commercial:

The organic decrease is primarily due to the net effect of (i) lower marketing costs, mainly driven by rebranding-related integration costs associated with the AT&T Acquisition incurred during 2021, (ii) higher amortization of deferred commissions associated with certain accounting in connection with the AT&T Acquisition, and (iii) lower call center costs driven by both volume and rates.

The increase is primarily driven by higher marketing costs.

• Facility, provision, franchise and other:

The organic increase was impacted by the net effect of (i) an increase in rent expense, driven by purchase accounting adjustments associated with the AT&T Acquisition that were recorded during 2021, (ii) an increase in bank-related fees associated with certain services being provided under a transaction service agreement, (iii) a decrease in bad debt expense resulting from lower expected credit loss rates established during 2022, (iv) higher facility-related costs, including security costs and maintenance costs resulting from the impacts of Hurricane Fiona, and (v) a decrease resulting from a payment made during the second quarter of 2021 to settle certain 2011 property tax claims.

The increase is primarily related to higher (i) bad debt expense, including the impact from the benefit during 2022 associated with lower expected credit loss rates established, (ii) rent expense and (iii) energy costs.

Liberty Costa Rica .

The following table sets forth the organic and non-organic changes in other operating costs and expenses for our Liberty Costa Rica segment.

Increase (decrease) from:

Year ended December 31, Increase FX An acquisition Organic

Year ended December 31, Increase (decrease) Increase (decrease) from:

2023 2022 FX Organic

Personnel and contract labor $ 32.2 $ 27.5 $ 4.7 $ 5.0 $ (0.3)

5 unchanged sentences

Total other operating costs and expenses $ 226.3 $ 202.2 $ 24.1 $ 35.4 $ (11.3)

• Network-related:

The organic increase is primarily due to higher maintenance-related costs.

• Service-related:

The organic increase is primarily due to higher information technology-related project costs.

• Commercial:

The organic increase is primarily due to higher third-party sales commission costs.

• Facility, provision, franchise and other costs:

The organic decrease is primarily due to the net effect of (i) higher bad debt provisions, (ii) lower rental expenses, (iii) lower telecommunications costs and (iv) higher collection-related fees.

Included in the increase from an acquisition in the table above are significant integration-related costs, associated with the Liberty Telecomunicaciones Acquisition.

The following table sets forth the organic and non-organic changes in other operating costs and expenses for our VTR segment.

Year ended December 31, Decrease Increase (decrease) from:

2022 2021 FX A disposition Organic

Personnel and contract labor $ 41.8 $ 61.1 $ (19.3) $ (6.8) $ (14.3) $ 1.8

Network-related 55.7 83.2 (27.5) (9.1) (19.4) 1.0

Service-related 24.0 37.0 (13.0) (4.0) (9.0) —

The organic decrease is primarily due to professional services incurred during 2022 related to a software implementation.

• Commercial:

The organic decrease is primarily due to (i) integration costs incurred during 2022 related to rebranding associated with the Liberty Telecomunicaciones Acquisition and (ii) an increase in deferred commissions associated with CPE sales .

• Facility, provision, franchise and other:

Share-based compensation expense 7.6 10.9 (3.3) (1.2) (2.8) 0.7

Total other operating costs and expenses $ 204.0 $ 310.2 $ (106.2) $ (33.0) $ (69.5) $ (3.7)

• Personnel and contract labor:

The organic increase is primarily due to the net effect of (i) higher salaries and other personnel costs due to the effect of inflation and (ii) lower bonus-related expenses.

• Commercial:

The organic decrease is due to the net effect of (i) lower sales commissions, (ii) lower call center activity and (iii) higher marketing and advertising costs, primarily related to a commitment to sponsor a music festival that was postponed during each of the past two years due to COVID-19.

• Facility, provision, franchise and other costs:

The organic decrease is primarily due to the net effect of (i) lower operating lease rent expense as a result of ceasing the amortization of our right of use assets in connection with held

for sale accounting of the Chile JV Entities, as further described in note 8 to our consolidated financial statements, and (ii) higher bad debt provisions.

The following table sets forth the organic and non-organic changes in other operating costs and expenses for our corporate operations.

The organic decrease is primarily due to the net impact of (i) the positive impact of FX associated with non-CRC denominated contracts and (ii) the negative impact of purchase accounting adjustments associated with the Liberty Telecomunicaciones Acquisition that decreased rent expense during 2022.

The following table sets forth the changes in other operating costs and expenses for our corporate operations.

Year ended December 31, Increase (decrease)

6 unchanged sentences

• Personnel and contract labor:

The organic increase is primarily attributable to (i) higher salaries and other personnel costs, mainly resulting from higher staffing levels in our operations center in Panama and (ii) the net impact of (a) an increase as certain employee bonuses that were granted on a cash-basis in 2022 and recognized as personnel costs, as compared to grants of share-based awards for certain employee bonuses in 2021 that were recognized as share-based compensation, and (b) a decrease resulting form lower bonus-related achievement levels.

• Service-related:

The organic increase is primarily due to an increase in professional services related to centralization efforts.

The increase is primarily attributable to the net effect of (i) higher salaries and related personnel costs, mainly resulting from higher staffing levels in our operations center in Panama and (ii) an increase in capitalized labor costs.

• Facility, provision, franchise and other:

The organic increase is primarily due to an increase in travel-related costs.

Results of operations (below Adjusted OIBDA)—2022 compared to 2021

The increase is primarily due to insurance costs recognized in 2023 associated with cable breaks and business interruption claims submitted by our Liberty Puerto Rico business.

Results of operations (below Adjusted OIBDA)

Share-based compensation expense (included in other operating costs and expenses)

Share-based compensation expense decreased $25 million during 2022, as compared to 2021, primarily due to (i) lower grant-date fair values driven by lower average share prices during 2022, and (ii) a change in the bonus structure, whereby certain employees whose bonuses were paid in the form of shares during 2021 were granted on a cash-basis during 2022.

Share-based compensation expense remained relatively flat during 2023, as compared to 2022.

For additional information regarding our share-based compensation, see note 15 to our consolidated financial statements.

Depreciation and amortization

Our depreciation and amortization expense decreased $54 million or 6% during 2022, as compared to 2021, primarily due to the net effect of (i) declines of $128 million at VTR, as we ceased recording depreciation expense during the third quarter of 2021 when we began accounting for the Chile JV Entities as held for sale, (ii) increases at Liberty Costa Rica and C&W Panama resulting from the Liberty Telecomunicaciones Acquisition and the Claro Panama Acquisition, respectively, and (iii) increases in property and equipment additions.

Our depreciation and amortization expense increased $98 million or 11% during 2023, as compared to 2022, primarily due to the net effect of (i) an increase in property and equipment additions, primarily associated with baseline related additions, the installation of CPE and the expansion and upgrade of our networks and other capital initiatives, (ii) a decrease associated with certain assets becoming fully depreciated, (iii) a decrease associated with customer relationship assets becoming fully amortized in Liberty Puerto Rico and (iv) an increase at C&W Panama resulting from the Claro Panama Acquisition.

Impairment, restructuring and other operating items, net

4 unchanged sentences

Total $ 86.9 $ 619.2

(a) Amounts primarily consist of goodwill impairment charges associated with certain reporting units within the C&W Caribbean segment.

(b) Amounts include employee severance and termination costs related to certain reorganization activities and contract termination and other related charges, primarily at (i) C&W Panama and C&W Caribbean during 2022 and (ii) VTR and C&W Caribbean during 2021.

(c) The 2022 amount includes direct acquisition costs, primarily related to the Chile JV Transaction and the Claro Panama Acquisition.

The 2021 amount includes direct acquisition costs, primarily related to the Liberty Telecomunicaciones Acquisition, and a gain on the disposition of certain B2B operations in our Liberty Puerto Rico segment that was completed in January 2021.

(a) The 2023 amount primarily relates to the impairment of certain operating lease right-of-use assets, predominantly related to decommissioned tower leases at C&W Panama.

The 2022 amount primarily consists of goodwill impairment charges associated with certain reporting units within the C&W Caribbean segment.

(b) The amounts include employee severance and termination costs related to reorganization activities, primarily at C&W Caribbean and C&W Panama.

The 2022 amount includes direct acquisition costs, primarily related to the Chile JV Transaction and the Claro Panama Acquisition.

Interest expense

Our interest expense increased $45 million during 2023, as compared to 2022.

The increase is primarily attributable to the net effect of (i) the negative impact of FX, (ii) higher weighted-average interest rates and (iii) lower average outstanding debt balances, primarily as a result of the formation of the Chile JV in October 2022.

The increase is primarily attributable to the net effect of (i) higher weighted-average interest rates and (ii) lower average outstanding debt balances, primarily resulting from the disposition of the Chile JV Entities in October 2022.

For additional information regarding our outstanding indebtedness, see note 10 to our consolidated financial statements.

4 unchanged sentences

Our realized and unrealized gains or losses on derivative instruments primarily include (i) unrealized changes in the fair values of our derivative instruments that are non-cash in nature until such time as the derivative contracts are fully or partially settled and (ii) realized gains or losses upon the full or partial settlement of the derivative contracts.

The details of our realized and unrealized gains on derivative instruments, net, are as follows:

The details of our realized and unrealized gains (losses) on derivative instruments, net, are as follows:

Year ended December 31,

Cross-currency and interest rate derivative contracts (a) $ 404.3 $ 565.4

Foreign currency forward contracts (13.5) 25.8

Weather Derivatives (b) (31.4) (27.1)

Interest rate and cross-currency derivative contracts (a) $ 27.3 $ 404.3

Foreign currency forward contracts and other (b) (30.6) (13.5)

Weather Derivatives (c) (30.9) (31.4)

Total $ (34.2) $ 359.4

(a) The gains during 2022 and 2021 are primarily attributable to the net effect of (i) changes in FX rates, predominantly due to changes in the value of the Chilean peso, prior to the formation of the Chile JV, relative to the U.S.

dollar, and (ii) changes in interest rates.

These amounts include losses associated with changes in our credit risk valuation adjustments of $4 million and $41 million, respectively.

Included in the 2021 credit risk valuation adjustment is a net loss of $30 million related to the Chile JV Entities.

(b) Amounts represent the amortization of premiums associated with our Weather Derivatives.

(a) The gains during 2023 and 2022 are primarily attributable to the net effect of (i) changes in interest rates and (ii) for the 2022 period, changes in FX rates predominantly due to changes in the value of the CLP relative to the U.S.

dollar prior to the disposition of the Chile JV Entities.

(b) The losses during 2023 and 2022 are primarily attributable to changes in FX rates due to (i) the value of the CRC relative to the U.S.

dollar and (ii) for the 2022 period, the value of the CLP relative to the U.S.

dollar prior to the disposition of the Chile JV Entities.

For additional information concerning our derivative instruments, see notes 4 and 7 to our consolidated financial statements and Item 7A.

3 unchanged sentences

Unrealized foreign currency transaction gains or losses are computed based on period-end exchange rates and are non-cash in nature until such time as the amounts are settled.

The details of our foreign currency transaction losses, net, are as follows:

The details of our foreign currency transaction gains (losses), net, are as follows:

Year ended December 31,

dollar-denominated debt issued by a Chilean peso functional currency entity

$ (181.1) $ (249.3)

dollar-denominated debt issued by non-U.S.dollar functional currency entities (a) $ 54.4 $ (158.0)

Intercompany payables and receivables denominated in a currency other than the entity’s functional currency

Other (a) (6.0) (21.9)

Other (b) 8.1 (29.1)

Total $ 70.3 $ (194.3)

(a) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency, (ii) U.S.

dollar-denominated debt issued by a CRC functional currency entity and (iii) cash denominated in a currency other than an entity’s functional currency.

Gains or losses on debt modification and extinguishment, net

Our gains or losses on debt modification and extinguishment generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.

(a) The net gain during 2023 is primarily related to a CRC functional currency entity.

The net loss during 2022 is primarily related to a CLP functional currency entity prior to the disposition of the Chile JV Entities in October 2022.

(b) Primarily includes (i) third-party receivables and payables denominated in a currency other than an entity’s functional currency and (ii) cash denominated in a currency other than an entity’s functional currency.

Gains or losses on debt extinguishments, net

Our gains or losses on debt extinguishments generally include (i) premiums or discounts associated with redemptions and/or repurchases of debt, (ii) the write-off of unamortized deferred financing costs, premiums and/or discounts and/or (iii) breakage fees.

We recognized gains (losses) on debt extinguishment, net, of ($4 million) and $41 million during 2023 and 2022, respectively.

The gains during 2022 are associated with the buyback of certain VTR debt at fair value prior to the formation of the Chile JV.

The losses during 2021 are primarily associated with refinancing activity at C&W, Liberty Puerto Rico and VTR.

The net loss during the 2023 period is primarily due to the net effect of (i) losses associated with refinancing activity at Liberty Costa Rica during January 2023 and (ii) net gains associated with the partial repurchases of the Convertible Notes.

The gains during the 2022 period are associated with the buyback of certain VTR debt at fair value prior to the disposition of the Chile JV Entities.

For additional information concerning our losses on debt modification and extinguishment, see note 10 to our consolidated financial statements.

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We recognized other expense, net, of $11 million and $28 million during 2023 and 2022, respectively.

The expense during each year primarily relates to impairment of a cost method investment.

The expense during 2022 primarily relates to impairment of a cost method investment.

Income tax benefit or expense

Liberty Latin America was formed as a corporation in Bermuda and, therefore, the “statutory” or “expected” tax rate for the 2022 and 2021 tax years is 0%, as we are exempt from income taxes on ordinary income and capital gains.

Liberty Latin America was formed as a corporation in Bermuda where the Company has a “statutory” or “expected” tax rate of 0% for the 2023 and 2022 tax years.

However, a majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable statutory rates.

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We recognized income tax expense of $24 million and $85 million during 2023 and 2022, respectively.

The income tax expense attributable to our loss before income taxes during 2023 differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non-deductible expenses, (iii) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (iv) inclusion of withholding taxes on cross-border payments and capital gains tax.

These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) permanent tax differences, such as non-taxable income, (ii) effect of rate changes (but which are nearly entirely offset by valuation allowance), (iii) jurisdictional rate differences, (iv) effect of tax credits and (v) changes in uncertain tax positions.

The income tax expense attributable to our loss before income taxes during 2022 differs from the amounts computed using the statutory tax rate, primarily due to the detrimental effects of (i) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (ii) effect of rate changes (but which are nearly entirely offset by valuation allowance), (iii) changes in uncertain tax positions, (iv) inclusion of withholding taxes on cross-border payments, (v) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (vi) tax effect of the enactment of a Barbados Pandemic Contribution Levy.

These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) net decreases in valuation allowances, (ii) permanent tax differences, such as non-taxable income, (iii) jurisdictional rate differences, and (iv) effect of tax credits.

The income tax expense attributable to our earnings before income taxes during 2021 differs from the amounts computed using the statutory tax rate, primarily due to detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non deductible goodwill impairment and other non-deductible expenses, (iii) expiration of deferred tax assets (which are entirely offset by valuation allowance), and (iv) inclusion of withholding taxes on cross-border payments.

These negative impacts to our effective tax rate were partially offset by the beneficial effects of (i) jurisdictional rate differences, (ii) changes in enacted tax rates (but which are nearly entirely offset by valuation allowance), and (iii) permanent tax differences, such as non-taxable income.

Net earnings or loss

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Gains or losses associated with (i) changes in the fair values of derivative instruments and (ii) movements in foreign currency exchange rates are subject to a high degree of volatility and, as such, any gains from these sources do not represent a reliable source of income.

In the absence of significant gains in the future from these sources or from other non-operating items, our ability to achieve earnings is largely dependent on our ability to increase our aggregate Adjusted OIBDA to a level that more than offsets the aggregate amount of our (i) share-based compensation expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expenses.

Due largely to the fact that we seek to maintain our debt at levels that provide for attractive equity returns, as discussed under Liquidity and Capital Resources—Capitalization below, we expect that we will continue to report significant levels of interest expense for the foreseeable future.

Net earnings or loss attributable to noncontrolling interests

We reported net losses attributable to noncontrolling interests of $26 million and $50 million during 2022 and 2021, respectively.

Liquidity and Capital Resources

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Our corporate liquidity requirements include (i) corporate general and administrative expenses and (ii) other liquidity needs that may arise from time to time.

In addition, Liberty Latin America and its unrestricted subsidiaries may require cash in connection with (i) the repayment of third-party and intercompany debt, (ii) the satisfaction of contingent liabilities, (iii) acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.

acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.

During 2023, the aggregate value of our share repurchases was $118 million.

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For the details of the borrowing availability of our borrowing groups at December 31, 2023, see note 10 to our consolidated financial statements.

The aforementioned sources of liquidity may be

supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries.

The aforementioned sources of liquidity may be supplemented in certain cases by contributions and/or loans from Liberty Latin America and its unrestricted subsidiaries.

The liquidity of our borrowing groups generally is used to fund capital expenditures, debt service requirements and income tax payments.

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Capitalization

We seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk.

We seek to maintain our debt at levels that are expected to provide for attractive equity returns without assuming undue risk.

When it is cost effective, we generally seek to match the denomination of the borrowings of our subsidiaries with the functional currency of the operations that support the respective borrowings.

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At December 31, 2023, $8,027 million of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries.

Included in the outstanding principal amount of our debt at December 31, 2022 is $223 million of vendor financing, which we use to finance certain of our operating expenses and property and equipment additions.

These obligations are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license.

Included in the outstanding principal amount of our debt at December 31, 2023 is (i) $299 million of vendor financing obligations, which we use to finance certain of our operating expenses and property and equipment additions and are generally due within one year, other than for certain licensing arrangements that generally are due over the term of the related license, and (ii) $244 million of finance obligations related to the Tower Transactions.

For additional information concerning our debt, including our debt maturities, see note 10 to our consolidated financial statements.

The weighted average interest rate in effect at December 31, 2023 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 7.1%.

The interest rate is based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.

The weighted average impact of the derivative instruments, excluding forward-starting derivative instruments, on our borrowing costs at December 31, 2022 was as follows:

The interest rate is generally based on stated rates and does not include the impact of derivative instruments, deferred financing costs, original issue premiums or discounts and commitment fees, all of which affect our overall cost of borrowing.

The weighted average impact of the derivative instruments on our borrowing costs at December 31, 2023 was as follows:

Borrowing group Decrease to borrowing costs

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Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk below.

Consolidated Statements of Cash Flows—2022 compared to 2021

Our 2023 and 2022 consolidated statements of cash flows are summarized as follows:

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Net cash used by investing activities (615.8) (1,122.6) 506.8

Net cash provided (used) by financing activities (29.2) 426.6 (455.8)

Net cash used by financing activities (62.4) (29.2) (33.2)

Effect of exchange rate changes on cash, cash equivalents and restricted cash (7.9) (2.3) (5.6)

Net increase (decrease) in cash, cash equivalents and restricted cash $ (285.3) $ 161.7 $ (447.0)

Net decrease in cash, cash equivalents and restricted cash $ 210.9 $ (285.3) $ 496.2

Operating Activities.

The decrease in cash provided by operating activities is primarily due to (i) a decrease resulting from an increase in cash paid for taxes and interest, (ii) an increase related to lower derivative-related payments, and (iii) a decrease associated with a decline in Adjusted OIBDA and related working capital change.

The increase in cash provided by operating activities is primarily due to the net effect of (i) an increase resulting from lower net derivative payments, (ii) an increase associated with lower tax payments, (iii) a decrease associated with higher interest payments and (iv) a decrease associated with a decline in Adjusted OIBDA and related working capital items.

Investing Activities.

Our cash used during 2022 primarily includes the net effect of (i) capital expenditures, net, as further discussed below, (ii) the Claro Panama Acquisition and BBVI Acquisition and (iii) cash outflow upon the disposition the Chile JV Entities.

Our cash used during 2021 primarily includes (i) capital expenditures, as further discussed below, and (ii) the Liberty Telecomunicaciones Acquisition.

The cash used by investing activities during 2023 primarily relates to (i) capital expenditures, net, as further discussed below, and (ii) the purchase of additional investments made during the year.

The cash used during 2022 primarily includes the net effect of (i) capital expenditures, net, as further discussed below, (ii) the Claro Panama Acquisition and BBVI Acquisition and (iii) cash outflow upon the disposition the Chile JV Entities.

The capital expenditures, net, that we report in our consolidated statements of cash flows, which relates to cash paid for property and equipment, does not include amounts that are financed under capital-related vendor financing or finance lease arrangements.

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Capital expenditures, net $ 585.0 $ 660.1

The decrease in our property and equipment additions during the year ended December 31, 2022, as compared to 2021, is primarily due to decreases in CPE-related additions and product and enabler additions which were partially offset by baseline additions.

The decrease in our property and equipment additions during the year ended December 31, 2023, as compared to 2022, is primarily due to the net effect of (i) a decrease associated with the disposition of the Chile JV Entities in October 2022, and (ii) an increase related to baseline additions and new build activity.

During the year ended December 31, 2023 and 2022, our property and equipment additions represented 16.2% and 17.0% of revenue, respectively.

We expect the percentage of revenue represented by our aggregate 2023 property and equipment additions to be approximately 16%.

The actual amount of the 2023 consolidated property and equipment additions may vary from expected amounts for a variety of reasons, including (i) changes in (a) the competitive or regulatory environment, (b) business plans, (c) our expected future operating results and (d) foreign currency exchange rates and, (ii) the availability of sufficient capital.

Accordingly, no assurance can be given that our actual property and equipment additions will not vary materially from our expectations.

Financing Activities.

During the year ended December 31, 2022, we used $29 million of cash from financing activities, primarily due to $170 million associated with the repurchase of Liberty Latin America common shares, partially offset by (i) $98 million of net cash received related to derivative instruments and (ii) $61 million of net borrowings of debt, which include the impact of $48 million of cash used to extinguish debt at VTR.

During 2021, we generated $427 million of cash from financing activities, primarily due to the net effect of (i) $617 million of net borrowings of debt, (ii) $75 million related to payments of financing costs and debt redemption premiums, (iii) $63 million associated with the repurchase of Liberty Latin America common shares, (iv) $48 million in payments related to distributions to noncontrolling interest owners, primarily in C&W Bahamas and C&W Panama, (v) $47 million related to the contribution from a noncontrolling interest owner, as further described in note 17 of the consolidated financial statements, and (vi) $43 million related to derivative payments.

During the year ended December 31, 2023, we used $62 million of cash from financing activities, primarily due to the net impact of (i) $137 million in net debt borrowings, including $244 million of proceeds from the Tower Transactions, as further described in note 10 to our consolidated financial statements, (ii) $118 million of cash outflows associated with the repurchase of Liberty Latin America common shares, (iii) $75 million in payments related to distributions to noncontrolling interest owners in C&W Panama, C&W Bahamas and Liberty Costa Rica, and (iii) $18 million of payments for financing costs and debt premiums, primarily associated with refinancing activity at Liberty Costa Rica.

During 2022, we used $29 million of cash from financing activities, primarily due to $170 million associated with the repurchase of Liberty Latin America common shares, partially offset by (i) $98 million of net cash received primarily related to the settlement of certain cross currency swaps at VTR prior to the disposition of the Chile JV Entities and (ii) $61 million of net borrowings of debt, which include the impact of $48 million of cash used to extinguish debt at VTR.

Off Balance Sheet Arrangements

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1 year 1-3 years 3-5 years More than

Debt (excluding interest) (a) $ 7,966.1 $ 226.0 $ 876.1 $ 2,877.1 $ 3,986.9

Debt (excluding interest) $ 8,242.2 $ 586.9 $ 59.9 $ 5,498.9 $ 2,096.5

Operating leases 769.7 123.0 218.2 167.7 260.8

Other (b) 60.2 45.8 7.8 2.8 3.8

Total (c) $ 8,728.9 $ 376.3 $ 1,067.6 $ 3,026.4 $ 4,258.6

Projected cash interest payments on debt and finance lease obligations (d) $ 2,590.0 $ 510.7 $ 939.0 $ 918.3 $ 222.0

(a) Subsequent to December 31, 2022, we refinanced certain debt of our Liberty Costa Rica borrowing group.

For additional information, see note 9 to our consolidated financial statements.

(b) Amounts primarily represent (i) guaranteed minimum commitments associated with (a) programming fees under multi-year contracts typically based on a rate per customer or stated annual fee and (b) our customer premise equipment and mobile handset device contractual obligations, and (ii) finance leases, excluding interest.

(c) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2022 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.

Other (a) 97.5 52.3 27.4 14.5 3.3

Total (b) $ 9,109.4 $ 762.2 $ 305.5 $ 5,681.1 $ 2,360.6

Projected cash interest payments on debt and finance lease obligations (c) $ 2,870.6 $ 586.5 $ 1,114.2 $ 797.1 $ 372.8

(a) Amounts primarily represent (i) guaranteed minimum commitments associated with (a) programming fees under multi-year contracts typically based on a rate per customer or stated annual fee and (b) our CPE and mobile handset device contractual obligations, and (ii) finance leases, excluding interest.

(b) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2023 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.

Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ($51 million at December 31, 2023) has been excluded from the table as the amount and timing of any related payments are not subject to reasonable estimation.

For additional information regarding our liability for uncertain tax positions, see note 16 to our consolidated financial statements.

(d) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2022.

(c) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2023.

These amounts are presented for illustrative purposes only and will likely differ from the actual cash payments required in future periods.

In addition, the amounts presented do not include the impact of our derivative contracts.

For information concerning our debt and finance lease obligations, operating leases and commitments, see notes 9, 10 and 19, respectively, to our consolidated financial statements.

For information concerning our operating leases, debt and finance lease obligations and commitments, see notes 9, 10 and 19, respectively, to our consolidated financial statements.

In addition to the commitments set forth in the table above, we have commitments under (i) derivative instruments and (ii) defined benefit plans and similar agreements, pursuant to which we expect to make payments in future periods.

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Our determination of the discount rate is based on a weighted average cost of capital approach, which uses a market participant’s cost of equity and after-tax cost of debt and reflects certain risks inherent in the future cash flows.

We did not record goodwill impairments during 2023.

During 2022 and 2021, we recorded $555 million and $605 million, respectively, of goodwill impairments related to C&W Caribbean.

During 2020, we recorded goodwill impairments of $174 million and $99 million related to C&W Panama and C&W Caribbean, respectively.

A hypothetical increase/(decrease) of 0.1% in the discount rate used in the goodwill impairment assessment that resulted in our 2022 goodwill impairment charges would have resulted in an increase/(decrease) of

approximately $15 million in aggregate to the goodwill impairment.

For additional information regarding certain impairments recorded during 2023, 2022 and 2021, see notes 4 and 8 to our consolidated financial statements.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis