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Item 7. Management’s Discussion and Analysis

2025-02-19 compared with 2024-02-22 · 238 added, 235 removed, 512 unchanged (48% of the section changed)

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Costa Rica, through our reportable segment Liberty Costa Rica.

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, 2024, we (i) owned and operated fixed networks that passed 4,735,700 homes and served 3,987,600 RGUs comprising 1,828,200 broadband internet subscribers, 921,900 video subscribers and 1,237,500 fixed-line telephony subscribers, and (ii) served 8,054,300 mobile subscribers.

Transactions and Events

Hurricane Beryl

In July 2024, Hurricane Beryl impacted our Jamaica operations and certain smaller operations within C&W Caribbean, resulting in varying degrees of damage to homes, businesses, and infrastructures in these markets.

In connection with Hurricane Beryl, during 2024, we experienced adverse impacts to revenue and RGUs, Adjusted OIBDA, and property and equipment additions.

Specifically, during 2024, Hurricane Beryl had a negative impact on revenue and Adjusted OIBDA of approximately $11 million and $14 million, respectively, which includes the positive impact from the hurricane on prepaid revenue.

In addition, we incurred property and equipment additions of approximately $16 million to replace infrastructure and equipment

that has been damaged beyond repair or to enhance network resiliency.

We did not recognize any material impairments in connection with Hurricane Beryl.

As a result of the hurricane, during 2024, we estimate that we lost approximately 33,000 RGUs, comprising 16,000 broadband internet subscribers, 15,000 fixed-line telephony subscribers, and 2,000 video subscribers.

We also saw a positive impact from the hurricane to our prepaid mobile subscribers.

Hurricane Beryl triggered a payment pursuant to coverage under our Weather Derivatives, which resulted in net proceeds of $44 million during 2024.

The payment is reflected as a derivative gain in our consolidated statement of operations and as a cash inflow related to operating activities in our consolidated statement of cash flows.

Costa Rica Transactions

On August 1, 2024, we announced that we entered into an agreement with Millicom to combine our respective operations in Costa Rica.

Under the terms of the all-stock agreement, Liberty Latin America and our minority partner in Costa Rica will hold an approximate 86% interest and Millicom will hold an approximate 14% interest in the joint operations, with final ownership percentages to be confirmed at closing.

The transaction is subject to customary closing conditions, including regulatory authorizations, and we expect the transaction to be completed during the second half of 2025.

During August 2024, we also entered into an agreement with the noncontrolling interest owner of Liberty Costa Rica where we agreed to acquire on January 30, 2026 shares representing 8.5% of equity of Liberty Costa Rica for aggregate cash consideration of approximately $83 million, comprising CRC 22 billion ($43 million) and $40 million, with 62.5% of the purchase price due upon closing and the remaining 37.5% due on January 29, 2027.

LPR Acquisition

During November 2023, we entered into an agreement with EchoStar to acquire EchoStar’s prepaid business and spectrum assets in Puerto Rico and USVI in exchange for cash and international roaming credits.

The aggregate cash consideration of $256 million will be paid in 4 annual installments, the first of which commenced on the closing date, September 3, 2024, and the remainder of which will be paid on the anniversary of the closing date over the next three years.

On September 3, 2024, we paid the first installment of $95 million, which is reflected as cash paid for an acquisition in our consolidated statement of cash flows.

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.

We completed these transactions across most markets during 2023.

During 2024 and 2023, we received proceeds of $9 million and $244 million, respectively , related to the Tower Transactions, 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 four years.

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.

Competition and Other External Factors

We are experiencing significant competition from other telecommunications operators and other communication service providers in all of our markets.

The significant competition we are experiencing, together with macroeconomic factors, has adversely impacted our revenue, RGUs and/or ARPU in a number of our markets.

For additional information regarding the revenue impact of changes in the RGUs and ARPU of our reportable segments, see discussion below .

Results of Operations

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 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.

The comparability of our operating results during 2024 and 2023 is affected by an acquisition and FX.

As we use the term, “organic” changes exclude FX and the impact of an acquisition.

In the following discussion, we quantify the estimated impacts on the operating results of the periods under comparison that are attributable to the LPR Acquisition, which closed on September 3, 2024.

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.

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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, Increase (decrease) from:

Increase (decrease) An acquisition A disposition

Increase (decrease) An acquisition

2024 2023 FX Organic

Revenue $ 4,456.9 $ 4,511.1 $ (54.2) $ 29.1 $ 12.5 $ (95.8)

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

Operating costs and expenses:

Programming and other direct costs of services

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4,505.2 3,993.4 511.8 24.5 11.5 475.8

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.

Operating income (loss) $ (48.3) $ 517.7 $ (566.0) $ 4.6 $ 1.0 $ (571.6)

As reflected in the table above, we reported an operating loss during 2024, as compared to operating income during 2023.

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.

For further discussion and analysis of changes in Depreciation and amortization , and Impairment, Restructuring and other operating items, net , see Results of Operations (below Adjusted OIBDA) sections below.

Consolidated Adjusted OIBDA

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GAAP measure.

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.

Adjusted OIBDA is the primary measure used by our CODM, our Chief Executive Officer, to evaluate segment operating performance.

Adjusted OIBDA is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of incentive compensation plans.

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.

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GAAP measures of income or loss.

A reconciliation of total operating income, the nearest U.S.

A reconciliation of total operating income (loss), the nearest U.S.

GAAP measure, to Adjusted OIBDA on a consolidated basis, is presented below for the periods indicated.

Year ended December 31,

Operating income $ 517.7 $ 86.5

Share-based compensation expense 88.7 93.5

Operating income (loss) $ (48.3) $ 517.7

Share-based compensation and other Employee Incentive Plan-related expense 84.0 88.7

Depreciation and amortization 968.3 1,008.3

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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 Liberty Networks Liberty Puerto Rico Liberty Costa Rica VTR Corporate Intersegment eliminations Consolidated

Adjusted OIBDA for the twelve months ending:

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

Adjusted OIBDA for the year ending:

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

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Revenue 32.3 20.6 (10.1) (169.7) 33.9 (3.9) 1.1 (95.8)

Programming and other direct costs 60.8 (27.8) (8.9) 55.0 4.9 — — 3.5 87.5

Programming and other direct costs of services 6.1 3.8 4.6 46.6 (9.6) — (4.9) 46.6

Other operating costs and expenses 1.2 17.6 (14.0) (55.1) (9.7) (12.4) 3.8 (68.6)

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FX (3.2) — 0.7 — 11.8 (0.4) — 8.9

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

An acquisition — — — 1.0 — — — 1.0

December 31, 2024 $ 633.3 $ 269.7 $ 242.7 $ 308.3 $ 229.5 $ (89.8) $ — $ 1,593.7

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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.

We incurred aggregate integration costs (i) during 2024 of $17 million within our Liberty Puerto Rico segment, and (ii) during 2023, of $26 million within our Liberty Puerto Rico, Liberty Costa Rica and C&W Panama segments.

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.

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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.

Competition has an adverse impact on our ability to increase or maintain our (i) RGUs, (ii) ARPU and/or (iii) B2B revenue.

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

2023 2022 FX Acquisition (disposition), net Organic

in millions, except percentages

2024 2023 FX An acquisition Organic

C&W Caribbean $ 1,462.8 $ 1,437.0 $ 25.8 $ (6.5) $ — $ 32.3

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Liberty Costa Rica 613.1 547.9 65.2 31.3 — 33.9

VTR — 450.6 (450.6) — (450.6) —

Corporate 19.6 23.5 (3.9) — — (3.9)

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Average number of RGUs (a) $ (0.7)

ARPU (b) (0.9)

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)

Decrease in residential fixed non-subscription revenue (0.8)

Total change in residential fixed revenue —

Increase in residential mobile service revenue (c) 24.0

Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue 1.0

Increase in B2B revenue (d) 7.3

Total organic increase 32.3

Impact of FX (6.5)

(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.

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

(b) The increase is primarily due to the net impact of (i) higher ARPU from broadband internet services, mainly due to price increases, (ii) lower ARPU from fixed-line telephony services, mostly due to fixed-mobile convergence efforts, and (iii) lower ARPU from video services.

(c) The increase is primarily attributable to the net impact of (i) higher average numbers of postpaid mobile subscribers, mostly due to growth from fixed-mobile convergence efforts, (ii) an increase in prepaid ARPU resulting from price increases implemented during the third quarter of 2023 and the first quarter of 2024, and (iii) lower average numbers of prepaid mobile subscribers.

(d) The increase is mainly attributable to the net effect of (i) higher project-related revenue across various markets and (ii) an increase in fixed and managed services, despite negative impacts related to Hurricane Beryl.

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

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Average number of RGUs (a) $ 9.8

ARPU (b) (4.0)

Decrease in residential fixed non-subscription revenue (0.5)

Total increase in residential fixed revenue 5.3

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 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.

Increase in residential mobile service revenue (c) 11.6

Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) 9.0

Decrease in B2B revenue (e) (5.3)

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

(b) The decrease is primarily due to lower ARPU from fixed-line telephony and video services, mainly driven by higher discounts and other customer retention efforts, and the migration of customers to lower ARPU plans.

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

The decrease in prepaid mobile subscribers is mainly driven by the impact of churn related to the migration of customers to our network following the Claro Panama Acquisition.

This decrease was partially offset by the addition of customers to our base following the exit of a competitor from our market, which positively impacted both our prepaid and postpaid base.

The increase in prepaid mobile ARPU is primarily due to higher ARPU packages offered to customers.

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

(e) The decrease is primarily due to the net effect of (i) lower revenue from government-related projects and (ii) higher revenue from fixed and managed services, primarily broadband internet services.

Liberty Networks .

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Decrease in wholesale revenue (b) (20.0)

Total organic increase 3.6

Total organic decrease (10.1)

Impact of FX 4.3

(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.

Total $ (5.8)

(a) The increase is primarily attributable to the net effect of (i) growth in managed services, (ii) higher B2B connectivity revenue, and (iii) a decrease associated with sales-type leases on CPE installed on long-term customer solutions, due mostly to a higher mix of contracts recognized on a net basis.

(b) The decrease is primarily due to (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 non-recurring revenue related to a sales-type lease recognized during 2023 and (iii) a net decrease in revenue associated with the recognition of deferred revenue and penalties upon the termination or modification of prepaid capacity contracts during 2023 and 2024.

Liberty Puerto Rico.

Liberty Puerto Rico’s revenue by major category is set forth below:

Year ended December 31, Increase (decrease)

Year ended December 31, Decrease

2024 2023 $ %

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The details of the changes in Liberty Puerto Rico’s revenue during 2024, as compared to 2023, are set forth below (in millions):

Increase in residential fixed subscription revenue due to change in:

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

Average number of RGUs (a) $ 3.1

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

Total increase in residential fixed revenue 24.8

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)

ARPU (b) (7.3)

Decrease in residential fixed non-subscription revenue (2.2)

Total decrease in residential fixed revenue (6.4)

Decrease in residential mobile service revenue (c) (77.3)

Decrease in residential mobile interconnect, inbound roaming, equipment sales and other revenue (d) (61.5)

Decrease in B2B revenue (e) (17.6)

Decrease in other revenue (f) (6.9)

Total organic decrease (169.7)

Impact of an acquisition 12.5

Total $ (157.2)

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

(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.

(a) The increase is primarily attributable to the net effect of (i) higher average broadband internet and fixed-line telephony RGUs and (ii) lower average video RGUs.

(b) The decrease is primarily due to lower ARPU from broadband internet, fixed-line telephony and video services, mainly caused by the net effect of retention-related discounts that more than offset price increases during the third quarter of 2024.

(c) The decrease is primarily due to a decline in the average number of mobile subscribers impacted by the migration of customers to our mobile network and network challenges in 2024 and lower postpaid mobile ARPU.

(d) The decrease is primarily driven by lower equipment sales, including the impact of the migration of customers to our mobile network during the first half of 2024.

(e) The decrease is primarily attributable to lower revenue from mobile services, mainly driven by lower average customers due to (i) the termination of a government-sponsored program during the second quarter of 2024 and (ii) the migration of customers to our mobile network, including credits issued for billing adjustments.

(f) The decrease is primarily driven by the net impact of (i) declines in the rate of funding beginning in each of June 2023 and 2024 related to funds from the FCC that we use to expand and improve our fixed and mobile networks, and (ii) a grant from the NTIA to fund network infrastructure to remote and underserved communities.

Liberty Costa Rica .

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

Year ended December 31, Increase

Year ended December 31, Increase (decrease)

2024 2023 $ %

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Increase in residential fixed non-subscription revenue (c) 19.0

Total decrease in residential fixed revenue (3.2)

Total increase in residential fixed revenue 4.7

Increase in residential mobile service revenue (d) 19.7

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

Increase in B2B revenue (e) 13.2

Increase in residential mobile interconnect, inbound roaming, equipment sales and other revenue (e) 4.1

Increase in B2B revenue (f) 5.4

Total organic increase 33.9

Impact of FX 31.3

Total $ 106.6

(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.

(a) The increase is primarily due to the net effect of (i) increases in the average number of broadband internet and fixed-line telephony RGUs and (ii) a decrease in the average number of video RGUs.

(b) The decrease is due to lower ARPU across all fixed products, the largest of which is from video services.

The decrease is mainly due to market competition leading to customer retention efforts and higher financed equipment sales.

(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.

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

(e) The increase is primarily attributable to the net effect of (i) higher volumes of equipment sales at higher unit prices, and (ii) lower interconnect revenue driven by a reduction in rates and lower volumes of traffic.

(f) The increase is primarily due to higher project-related revenue and growth in managed services.

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, project-related costs 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.

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, B2B project-related costs and other direct costs related to our operations.

Consolidated.

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) An acquisition A disposition Organic

Year ended December 31, Increase (decrease) from:

Increase (decrease) FX An acquisition Organic

Programming and copyright $ 233.6 $ 237.2 $ (3.6) $ 1.7 $ — $ (5.3)

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Equipment 315.9 320.6 (4.7) 3.2 2.6 (10.5)

Other 160.1 130.1 30.0 0.1 0.6 (1.0) 30.3

Project-related and other 161.6 160.1 1.5 0.7 — 0.8

Total programming and other direct costs of services $ 989.4 $ 1,020.4 $ (31.0) $ 6.8 $ 8.8 $ (46.6)

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Equipment 50.0 49.0 1.0 (0.1) 1.1

Other 34.0 42.4 (8.4) — (8.4)

Project-related and other 42.9 34.0 8.9 (0.2) 9.1

Total programming and other direct costs of services $ 222.5 $ 229.7 $ (7.2) $ (1.1) $ (6.1)

• Programming and copyright:

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.

The organic decrease is mainly due to (i) the impact of the renegotiation of certain content agreements, and (ii) lower video RGUs.

• 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:

Year ended December 31, Increase An acquisition

2023 2022 Organic

The organic decrease is primarily due to lower rates resulting from the renegotiation of a contract.

The organic increase is primarily due to the net effect of (i) higher B2B project-related equipment costs and (ii) lower handset costs.

• Project-related and other:

The organic increase is primarily due to higher B2B project costs, primarily in the Bahamas.

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

Year ended December 31, Increase (decrease)

Programming and copyright $ 22.0 $ 21.4 $ 0.6

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Equipment 50.3 41.6 8.7

Other 117.8 86.9 30.9 0.6 30.3

Project-related and other 107.5 117.8 (10.3)

Total programming and other direct costs of services $ 249.2 $ 253.0 $ (3.8)

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.

• Interconnect:

The decrease is primarily due to lower volumes of traffic.

The increase is primarily attributable to (i) higher volumes of handset sales, mostly to B2B customers, and (ii) higher unit costs associated with handset sales to residential customers.

• Project-related and other:

The decrease is primarily due to lower 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:

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

2024 2023 FX Organic

1 unchanged sentence

Equipment 0.3 0.6 (0.3) — (0.3)

Other 18.8 13.7 5.1 (0.1) 5.2

Project-related and other 15.7 18.8 (3.1) 0.6 (3.7)

Total programming and other direct costs of services $ 65.0 $ 68.7 $ (3.7) $ 0.9 $ (4.6)

• 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.

The organic decrease is primarily due to (i) lower backhaul expenses and (ii) lower inter-segment costs.

• Project-related and other:

The organic decrease is primarily due to a higher mix of contracts recognized on a net basis.

Liberty Puerto Rico .

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)

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

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

An Acquisition

2024 2023 Organic

Programming and copyright $ 109.8 $ 112.4 $ (2.6) $ — $ (2.6)

1 unchanged sentence

Equipment 151.4 179.6 (28.2) 2.6 (30.8)

Other 2.1 2.1 —

Project-related and other 4.7 2.1 2.6 — 2.6

Total programming and other direct costs of services $ 349.6 $ 387.4 $ (37.8) $ 8.8 $ (46.6)

• Programming and copyright:

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

The organic decrease is primarily due to the net effect of (i) lower average number of subscribers and (ii) rate increases.

• Interconnect:

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.

The organic decrease is mostly due to lower interconnect costs associated with a transition service agreement that expired during 2024.

The organic decrease is primarily due to the net effect of (i) lower handset sales, which includes the impact of the migration of customers to our mobile network during the first half of 2024, (ii) equipment credits for handset purchases recognized during the first half of 2023 associated with handsets purchased prior to 2023 and (iii) increases resulting from inventory adjustments during 2024 related to the migration of mobile customers to our network.

• Project-related and other:

The organic increase is primarily due to higher costs associated with portability and identity protection services.

Liberty Costa Rica .

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

Increase (decrease) from:

Year ended December 31, Increase (decrease) FX Organic

Year ended December 31, Increase (decrease) from:

Increase (decrease) FX Organic

Programming and copyright $ 37.6 $ 33.1 $ 4.5 $ 2.0 $ 2.5

1 unchanged sentence

Equipment 63.9 49.8 14.1 3.3 10.8

Other 4.2 — 4.2 0.3 3.9

Project-related and other 6.9 4.2 2.7 0.3 2.4

Total programming and other direct costs of services $ 136.8 $ 120.2 $ 16.6 $ 7.0 $ 9.6

• Programming and copyright:

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.

The organic increase is due to the net effect of (i) higher programming costs associated with an increase in video RGUs, and (ii) higher content costs driven by pricing.

• Interconnect:

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.

The organic decrease is primarily due to lower (i) rates, (ii) volumes of long-distance and international traffic, and (iii) commission costs associated with prepaid mobile distributors.

The organic increase is primarily due to the net effect of (i) higher CPE costs associated with sales growth, and (ii) higher handset costs associated with increased unit costs.

• Project-related and other:

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

Other operating costs and expenses

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• Facility, provision, franchise and other, which primarily includes facility-related costs, provision for bad debt expense, franchise-related fees, bank fees, insurance, vehicle-related, travel and entertainment and other operating-related costs;

• Share-based compensation expense that relates to (i) equity awards issued to our employees and Directors and (ii) certain bonus-related expenses that are paid in the form of equity.

• Share-based compensation and other Employee Incentive Plan-related expense that relates to (i) equity awards issued to our employees and Directors, (ii) certain bonus-related expenses that are paid in the form of equity and (iii) our LTVP, whether settled in common shares or cash.

Consolidated .

The following table sets forth the organic and non-organic changes in other operating costs and expenses on a consolidated basis.

Increase (decrease) from:

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

Year ended December 31, Increase (decrease) from:

Increase (decrease) An acquisition Organic

Personnel and contract labor $ 579.2 $ 557.6 $ 21.6 $ 2.5 $ — $ 19.1

4 unchanged sentences

600.6 563.8 36.8 5.0 — 31.8

Share-based compensation expense

88.7 93.5 (4.8) 0.3 — (7.6) 2.5

Share-based compensation and other Employee Incentive Plan-related expense 84.0 88.7 (4.7) — — (4.7)

Total other operating costs and expenses

$ 1,957.8 $ 1,877.8 $ 80.0 $ 13.4 $ 2.7 $ 63.9

For additional information regarding our share-based compensation, see Results of Operations (below Adjusted OIBDA) discussion and analysis below.

For additional information regarding our share-based compensation and other Employee Incentive Plan-related expense, see Results of Operations (below Adjusted OIBDA) discussion and analysis below.

C&W Caribbean .

7 unchanged sentences

Facility, provision, franchise and other 159.6 149.4 10.2 (0.6) 10.8

Share-based compensation expense 16.8 20.1 (3.3) — (3.3)

Share-based compensation and other Employee Incentive Plan-related expense 18.9 16.8 2.1 — 2.1

Total other operating costs and expenses $ 625.9 $ 627.2 $ (1.3) $ (2.2) $ 0.9

• Personnel and contract labor:

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 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.

The organic decrease is primarily due the net effect of (i) lower power costs driven by a decrease in consumption and rates, (ii) lower costs driven by a reduction in outsourced contracts, and (iii) higher maintenance costs.

In addition, this decrease was offset by the negative impact of an accrual release during 2023 related to leased line costs that resulted from the renegotiation of pole rental contracts.

• Service-related:

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

The organic decrease is primarily due to declines in professional services associated with the renegotiation or termination of certain vendor contracts.

• Commercial:

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

• 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 (decrease) An Acquisition

2023 2022 Organic

The organic increase is primarily due to the net effect of (i) higher bad debt expense across various markets that was partially offset by the recovery of amounts from a large customer, (ii) lower facilities costs associated with the Tower Transactions, (iii) higher costs associated with Hurricane Beryl-related

restoration efforts, and (iv) higher franchise fees.

In addition, the organic increase includes the negative impact associated with a tax-related assessment received in one of our markets during 2024.

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

Year ended December 31, Increase (decrease)

Personnel and contract labor $ 78.8 $ 81.7 $ (2.9)

3 unchanged sentences

Facility, provision, franchise and other 64.0 83.6 (19.6)

Share-based compensation expense 2.7 4.3 (1.6) — (1.6)

Share-based compensation and other Employee Incentive Plan-related expense 7.3 2.7 4.6

Total other operating costs and expenses $ 251.6 $ 264.6 $ (13.0)

• 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.

• Personnel and contract labor:

The decrease is primarily due to lower headcount levels following the execution of certain restructuring plans.

• 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.

The increase is primarily due to higher marketing and commissions expense associated with efforts to obtain customers from a competitor following their exit from the market.

• Facility, provision, franchise and other:

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.

The decrease is primarily due to (i) lower facilities costs, mainly from synergies attained following the Claro Panama Acquisition and (ii) lower bad debt expense.

Liberty Networks.

7 unchanged sentences

Facility, provision, franchise and other 34.3 24.6 9.7 0.7 9.0

Share-based compensation expense 3.1 3.4 (0.3) (0.1) (0.2)

Share-based compensation and other Employee Incentive Plan-related expense 3.6 3.1 0.5 — 0.5

Total other operating costs and expenses $ 143.4 $ 126.2 $ 17.2 $ 2.7 $ 14.5

• 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.

The organic increase is primarily related to higher maintenance costs.

• Service-related:

The organic increase is primarily due to higher outsourcing and software upgrade expenses.

• Facility, provision, franchise and other:

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

The organic increase is primarily due to higher bad debt expense, mostly driven by adjustments for two large customers during 2024.

Liberty Puerto Rico .

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)

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

Year ended December 31, Increase (decrease) from:

Increase (decrease) An acquisition

2024 2023 Organic

Personnel and contract labor $ 164.1 $ 154.9 $ 9.2 $ — $ 9.2

3 unchanged sentences

Facility, provision, franchise and other 227.9 206.7 21.2 — 21.2

Share-based compensation expense 6.2 7.3 (1.1)

Share-based compensation and other Employee Incentive Plan-related expense 6.8 6.2 0.6 — 0.6

Total other operating costs and expenses $ 609.4 $ 551.0 $ 58.4 $ 2.7 $ 55.7

• Personnel and contract labor:

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.

The organic increase is primarily driven by the net effect of (i) an increase resulting from the receipt of payroll tax credits during 2023 that were not received during 2024, and which tax credits were awarded to businesses that continued to pay employees or that experienced significant declines in gross receipts during the COVID-19 pandemic, and (ii) lower salaries and related personnel costs, driven by a reduction in headcount associated with restructuring plans.

• Network-related:

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.

The organic decrease is primarily due to the net effect of (i) the termination of a transition service agreement during the first half of 2024, (ii) lower network maintenance expenses, (iii) higher vendor credits and related incentives and (iv) higher pole rental costs.

• Service-related:

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.

The organic increase is primarily due to the net impact of (i) an increase in information technology service and license expenses, as we have transitioned mobile customers acquired from AT&T to our internal systems, and (ii) lower service-related integration costs associated with the migration of customers to our mobile network following the AT&T Acquisition.

• Commercial:

The increase is primarily driven by higher marketing costs.

The organic increase is primarily driven by higher call center costs that were only partially offset by lower marketing expenses.

• Facility, provision, franchise and other:

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.

The organic increase is primarily due to the net effect of (i) higher bad debt expense impacted by billing and collection issues experienced during and following the migration of customers to our mobile network and associated systems, and higher expected credit losses on amounts due under EIPs for customers that have churned, (ii) increased collection costs, (iii) a decrease due to the substantial termination of a transition services agreement during the first half of 2024, (iv) lower facility costs, including utilities, (v) lower company vehicle expenses and (vi) a decrease in bank and franchise fees.

Liberty Costa Rica .

7 unchanged sentences

Facility, provision, franchise and other 88.2 71.7 16.5 4.5 12.0

Share-based compensation expense 1.7 2.2 (0.5) 0.3 (0.8)

Share-based compensation and other Employee Incentive Plan-related expense 1.4 1.7 (0.3) — (0.3)

Total other operating costs and expenses $ 248.2 $ 226.3 $ 21.9 $ 12.5 $ 9.4

• Service-related:

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

• Personnel and contract labor:

The organic decrease is primarily due to (i) lower salaries and related personnel costs driven by a reduction in headcount associated with restructuring plans, and (ii) an increase in capitalized labor.

• 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 .

The organic increase is primarily due to the net effect of (i) higher sales commissions resulting from an increase in sales volume, (ii) lower marketing expenses, and (iii) higher call center and customer care-related costs.

• Facility, provision, franchise and other:

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 organic increase is primarily due to (i) increases in bad debt expense, mainly associated with installment receivables on equipment sales, and (ii) higher operating lease expense associated with an increase in tower leases.

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

1 unchanged sentence

Personnel and contract labor $ 56.6 $ 41.4 $ 15.2

Network-related — 0.7 (0.7)

Service-related 25.0 23.2 1.8

Facility, provision, franchise and other 27.8 32.4 (4.6)

Share-based compensation expense 58.0 48.6 9.4

Share-based compensation and other Employee Incentive Plan-related expense 46.0 58.0 (12.0)

Total other operating costs and expenses $ 155.4 $ 155.0 $ 0.4

• Personnel and contract labor:

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.

The increase is primarily due to (i) higher bonus-related expense and (ii) lower capitalized labor.

• Service-related:

The increase is primarily due to the net effect of higher professional services costs and other insignificant changes across other service-related cost categories.

• Facility, provision, franchise and other:

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.

The decrease is primarily due to insurance costs recognized during 2023 associated with (i) cable breaks that occurred during the first quarter of 2023 and (ii) business interruption claims submitted by our Liberty Puerto Rico business during the second quarter of 2023.

Results of operations (below Adjusted OIBDA)

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

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.

Share-based compensation and other Employee Incentive Plan-related expense (included in other operating costs and expenses)

Share-based compensation and other Employee Incentive Plan-related expense remained relatively flat during 2024, as compared to 2023.

For additional information regarding our share-based compensation and other Employee Incentive Plan-related expense, see note 13 to our consolidated financial statements.

Depreciation and amortization

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.

Our depreciation and amortization expense decreased $40 million or 4% during 2024, as compared to 2023, primarily due to the net effect of (i) a decrease associated with customer relationship assets becoming fully amortized in C&W Panama, (ii) a decrease associated with certain assets becoming fully depreciated and (iii) an increase from property and equipment additions, primarily associated with baseline-related additions, the expansion and upgrade of our networks and other capital initiatives and the installation of CPE.

Impairment, restructuring and other operating items, net

4 unchanged sentences

Total $ 589.7 $ 86.9

(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.

(a) The 2024 amount primarily relates to an impairment of goodwill recorded at Liberty Puerto Rico, as further described in note 8 to our consolidated financial statements.

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.

(b) The amounts include employee severance and termination costs related to reorganization activities at (i) C&W Panama and Liberty Puerto Rico for 2024, and (ii) C&W Caribbean and C&W Panama for 2023.

Interest expense

Our interest expense increased $26 million during 2024, as compared to 2023.

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.

The increase is primarily attributable to (i) an increase in our average outstanding debt balances, mainly driven by debt associated with the Tower Transactions and the activity during 2024 on our revolving credit facilities, and (ii) higher weighted-average interest rates.

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

6 unchanged sentences

Year ended December 31,

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

Interest rate derivative contracts (a) $ 76.7 $ 27.3

Foreign currency forward contracts and other (b) (7.6) (30.6)

1 unchanged sentence

Total $ 82.1 $ (34.2)

(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.

(a) The gains during 2024 and 2023 are primarily attributable to (i) higher interest rates and (ii) for the 2024 period, the impact of amendments to certain interest rate derivative contracts within our C&W and Liberty Puerto Rico borrowing groups.

(b) The losses during 2024 and 2023 are primarily attributable to changes in FX rates due to the value of the CRC relative to the U.S.

(c) Amounts represent the amortization of premiums associated with our Weather Derivatives, and for 2024, a net gain of $44 million associated with a payment pursuant to coverage under our Weather Derivatives that was triggered by Hurricane Beryl.

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

9 unchanged sentences

Total $ (18.3) $ 70.3

(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.

(a) The net gains are primarily due to a CRC functional currency entity.

(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.

1 unchanged sentence

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.

We recognized losses on debt extinguishment, net, of $6 million and $4 million during 2024 and 2023, respectively.

The net loss during the 2024 period is primarily due to (i) refinancing activity at C&W during October 2024 and (ii) the repurchase and cancellation of the Convertible Notes.

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.

Gain on Chile JV Transaction

In connection with the Chile JV Transaction, we recognized a pre-tax gain during 2022 of $169 million.

For additional information, see note 6 to our consolidated financial statements.

Other income or expense, net

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

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

Income tax benefit or expense

2 unchanged sentences

For additional information, see note 14 to our consolidated financial statements.

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.

We recognized income tax benefit (expense) of $4 million and ($24 million) during 2024 and 2023, respectively.

The income tax benefit attributable to our loss before income taxes during 2024 differs from the amounts computed using the statutory tax rate, primarily due to the beneficial effects of (i) jurisdictional rate differences, (ii) permanent tax differences such as non-taxable income, (iii) rate changes, (iv) tax credits, and (v) changes in uncertain tax positions.

These beneficial effects on our effective tax rate were partially offset by the detrimental effects of (i) net increases in valuation allowances, (ii) permanent tax differences, such as non-deductible goodwill impairments and non-deductible expenses, (iii) the inclusion of withholding taxes on cross-border payments, and (iv) the expiration of deferred tax assets, which are entirely offset by valuation allowance.

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) the expiration of deferred tax assets, which are entirely offset by valuation allowance, and (iv) the 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) rate changes, which are nearly entirely offset by valuation allowance, (iii) jurisdictional rate differences, (iv) tax credits and (v) changes in uncertain tax positions.

Net earnings or loss

1 unchanged sentence

Year ended December 31,

Operating income $ 517.7 $ 86.5

Operating income (loss) $ (48.3) $ 517.7

Net non-operating expenses $ (583.1) $ (580.1)

Income tax expense $ (24.4) $ (84.8)

Income tax benefit (expense) $ 4.1 $ (24.4)

Net loss $ (627.3) $ (86.8)

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 expense.

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 and other Employee Incentive Plan-related expense, (ii) depreciation and amortization, (iii) impairment, restructuring and other operating items, (iv) interest expense, (v) other non-operating expenses and (vi) income tax expense.

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.

41 unchanged sentences

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

From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities.

From time to time, our borrowing groups may also require liquidity in connection with (i) acquisitions and other investment opportunities, such as the LPR Acquisition, (ii) loans to Liberty Latin America, (iii) capital distributions to Liberty Latin America and other equity owners or (iv) the satisfaction of contingent liabilities.

No assurance can be given that any external funding would be available to our borrowing groups on favorable terms, or at all.

12 unchanged sentences

At December 31, 2024, the outstanding principal amount of our debt, together with our finance lease obligations aggregated $8,143 million, including $466 million that is classified as current in our consolidated balance sheet and $7,627 million that is not due until 2027 or thereafter.

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

All of our debt and finance lease obligations have been borrowed or incurred by our subsidiaries at December 31, 2024.

Included in the outstanding principal amount of our debt at December 31, 2024 is (i) $328 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) $247 million of finance obligations related to the Tower Transactions.

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Liberty Latin America borrowing groups (1.0) %

Including the effects of derivative instruments, original issue premiums or discounts, including the discount on the Convertible Notes associated with the instrument’s conversion option, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.0% at December 31, 2023.

Including the effects of derivative instruments, original issue premiums or discounts, and commitment fees, but excluding the impact of financing costs, the weighted average interest rate on our indebtedness was 6.2% at December 31, 2024.

We believe that we have sufficient resources to repay or refinance the current portion of our debt and finance lease obligations and to fund our foreseeable liquidity requirements during the next 12 months .

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Effect of exchange rate changes on cash, cash equivalents and restricted cash (10.9) (7.9) (3.0)

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

Net increase (decrease) in cash, cash equivalents and restricted cash $ (329.5) $ 210.9 $ (540.4)

Operating Activities.

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.

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

Additionally, our cash provided by operating activities was positively impacted by the receipt of $44 million pursuant to coverage under our Weather Derivatives in connection with Hurricane Beryl.

Investing Activities.

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 cash used by investing activities during the years ended December 31, 2024 and 2023 primarily relates to (i) capital expenditures, as further discussed below, and (ii) the purchase of additional investments.

Cash used during 2024 also includes the first installment payment for the LPR Acquisition, as further described in note 5 to our consolidated financial statements.

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 $ 540.4 $ 585.0

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.

The decrease in our property and equipment additions during the year ended December 31, 2024, as compared to 2023, is primarily due to the net effect of (i) decreases related to CPE and product and enablers additions, and (ii) increases associated with baseline and capacity-related additions.

During the years ended December 31, 2024 and 2023, our property and equipment additions represented 16.3% and 16.2% of revenue, respectively.

Financing Activities.

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.

During the year ended December 31, 2024, we used $386 million of cash for financing activities, primarily due to the net impact of (i) $257 million in net debt repayments, (ii) $83 million of cash outflows associated with the repurchase of Liberty Latin America common shares, (iii) $55 million in payments related to distributions to noncontrolling interest owners in C&W Panama, C&W Bahamas and Liberty Costa Rica, (iv) $43 million of net cash inflows related to derivative instruments, primarily related to the amendment of certain interest rate derivative contracts at C&W Caribbean and Liberty Puerto Rico, and (v) $18 million of payments for financing costs and debt premiums.

During 2023, we used $62 million of cash for financing activities, primarily due to the net impact of (i) $137 million of net borrowings of debt, 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 (iv) $18 million of payments for financing costs and debt premiums, primarily associated with refinancing activity at Liberty Costa Rica.

Off Balance Sheet Arrangements

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Projected cash interest payments on debt and finance lease obligations (c) $ 2,685.1 $ 580.9 $ 1,098.5 $ 510.6 $ 495.1

(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.

(a) Amounts primarily represent (i) obligations due related to the LPR Acquisition and the Costa Rica Transactions, as described in note 5 to our consolidated financial statements, (ii) 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 (iii) finance leases, excluding interest.

(b) The commitments included in this table do not reflect any liabilities that are included in our December 31, 2024 consolidated balance sheet other than debt, finance lease obligations and operating lease obligations.

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In connection with the preparation of our consolidated financial statements, we make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which would potentially result in materially different results under different assumptions and conditions.

Critical accounting policies are defined as those policies that are reflective of significant judgments, estimates and uncertainties, which could potentially result in materially different results under different assumptions and conditions.

We believe the following accounting policies are critical in the preparation of our consolidated financial statements because of the judgment necessary to account for these matters and the significant estimates involved, which are susceptible to change:

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The aggregate carrying value of our property and equipment and intangible assets (including goodwill) that was held for use comprised 72% of our total assets at December 31, 2024.

When circumstances warrant, we review the carrying amounts of our property and equipment and our intangible assets (other than goodwill and other indefinite-lived intangible assets) to determine whether such carrying amounts continue to be recoverable.

Such changes in circumstance may include (i) the impact of natural disasters such as hurricanes, (ii) an expectation of a sale or disposal of a long-lived asset or asset group, (iii) adverse changes in market or competitive conditions, (iv) an adverse change in legal factors or business climate in the markets in which we operate and (v) operating or cash flow losses.

For purposes of impairment testing, long-lived assets are grouped at the lowest level for which cash flows are largely independent of other assets and liabilities, generally at or below the reporting unit level (see below).

Circumstances that could indicate the carrying amounts of long-lived assets may not be recoverable may include (i) the impact of natural disasters such as hurricanes, (ii) an expectation of a sale or disposal of a long-lived asset or asset group, (iii) adverse changes in market or competitive conditions, (iv) an adverse change in legal factors or business climate in the markets in which we operate and (v) operating or cash flow losses.

A reporting unit is an operating segment or one level below an operating segment.

If the carrying amount of the asset or asset group is greater than the expected undiscounted cash flows to be generated by such asset or asset group, an impairment adjustment is recognized.

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We generally measure fair value by considering (i) sale prices for similar assets, (ii) discounted estimated future cash flows using an appropriate discount rate and/or (iii) estimated replacement cost.

Assets to be disposed of are recorded at the lower of their carrying amount or fair value less costs to sell.

We evaluate goodwill and other indefinite-lived intangible assets (primarily cable television franchise rights and spectrum licenses) for impairment at least annually on July 1 and whenever facts and circumstances indicate that the fair value of a reporting unit or an indefinite-lived intangible asset may be less than its carrying value.

When evaluating impairment with respect to goodwill and other indefinite-lived intangibles, we first make a qualitative assessment to determine if the goodwill or other indefinite-lived intangible may be impaired.

Assets to be disposed of by sale are recorded at the lower of their carrying amount or fair value less costs to sell.

We evaluate goodwill and other indefinite-lived intangible assets (primarily spectrum licenses and cable television franchise rights) for impairment at least annually on July 1 and whenever facts and circumstances indicate that the fair value of a reporting unit or an indefinite-lived intangible asset may be less than its carrying value.

When evaluating goodwill and other indefinite-lived intangible assets for impairment, we first make a qualitative assessment to determine if the goodwill or other indefinite-lived intangible asset may be impaired.

In the case of goodwill, if it is more likely than not that a reporting unit’s fair value is less than its carrying value, we then compare the fair value of the reporting unit to its respective carrying amount.

A reporting unit is an operating segment or one level below an operating segment (referred to as a “component”).

Goodwill impairment is recorded as the excess of a reporting unit’s carrying value over its fair value and is charged to operations.

With respect to other indefinite-lived intangible assets, if it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we then estimate its fair value and any excess of the carrying value over the fair value is also charged to operations as an impairment loss.

When required, considerable management judgment is necessary to estimate the fair value of reporting units and underlying long-lived and indefinite-lived assets.

We typically determine fair value using an income-based approach (discounted cash flows) based on assumptions in our long-range business plans.

With respect to our discounted cash flow analysis used in the income-based approach, the timing and amount of future cash flows under these business plans require estimates of, among other items, subscriber growth and retention rates, rates charged per product, expected gross margins and Adjusted OIBDA margins and expected property and equipment additions.

The development of these cash flows, and the discount rate applied to the cash flows, is subject to inherent uncertainties, and actual results could vary significantly from such estimates.

Goodwill impairment is measured as the excess of a reporting unit’s carrying value over its fair value and is recognized as an impairment in our consolidated statement of operations.

With respect to other indefinite-lived intangible assets, if it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value, we then estimate its fair value and any excess of the carrying value over the fair value is also recognized as an impairment in our consolidated statement of operations.

Considerable management judgment is used to estimate the fair value of reporting units and underlying long-lived and indefinite-lived assets.

We typically determine fair value using a discounted cash flow analysis under the income approach to valuation.

Our discounted cash flow analysis used is based on assumptions in our long-range business plans, and the timing and amount of future cash flows under these business plans require estimates of, among other items, subscriber growth and retention rates, rates charged per product, expected gross margins and Adjusted OIBDA margins and expected property and equipment additions.

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.

The development of these cash flows and the discount rate applied to the cash flows are subject to inherent uncertainties, and actual results could vary significantly from such estimates.

We recorded goodwill impairments of (i) $516 million related to Liberty Puerto Rico during 2024, (ii) nil during 2023, and (iii) $555 million related to C&W Caribbean during 2022.

For additional information regarding certain impairments recorded during 2024, 2023 and 2022, see notes 4 and 8 to our consolidated financial statements.

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To assist us in making these fair value determinations, we may engage third-party valuation specialists.

Our estimates in this area impact, among other items, the amount of depreciation and amortization and income tax expense or benefit that we report.

Our estimates in this area impact, among other items, the measurement of goodwill as well as future amounts of depreciation and amortization and income tax expense or benefit that we report.

Our estimates of fair value are based upon assumptions we believe to be reasonable, but which are inherently uncertain.

A significant portion of our long-lived assets were initially recorded through the application of acquisition accounting.

For additional information, including the specific weighted average discount rates we used to complete certain nonrecurring valuations, see note 4 to our consolidated financial statements.

For additional information, including the specific weighted average discount rates we used to complete certain non-recurring valuations, see note 4 to our consolidated financial statements.

For information regarding our acquisitions and long-lived assets, see notes 5 and 8, respectively, to our consolidated financial statements.

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