Item 7. Management’s Discussion and Analysis
Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
See the Glossary of defined terms at the beginning of this Annual Report on Form 10-K.
The following discussion and analysis, which should be read in conjunction with our consolidated financial statements, is intended to assist in providing an understanding of our results of operations and financial condition and is organized as follows:
• Overview. This section provides a general description of our business and recent events.
• Results of Operations. This section provides an analysis of our results of operations for the years ended December 31, 2024 and 2023.
• Liquidity and Capital Resources. This section provides an analysis of our liquidity, consolidated statements of cash flows and contractual commitments.
• Critical Accounting Policies, Judgments and Estimates. This section discusses those material accounting policies that involve uncertainties and require significant judgment in their application.
Unless otherwise indicated, operational data (including subscriber statistics) is presented as of December 31, 2024.
A discussion regarding our financial condition and results of operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 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, 2023 filed with the SEC on February 22, 2024, 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.
Overview
General
We are an international provider of fixed, mobile and subsea telecommunications services. We provide,
A. residential and B2B services in:
i. over 20 countries across Latin America and the Caribbean through two of our reportable segments, C&W Caribbean and C&W Panama;
ii. Puerto Rico and USVI, through our reportable segment Liberty Puerto Rico; and
iii. Costa Rica, through our reportable segment Liberty Costa Rica.
B. 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 over 30 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
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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. 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
From a strategic perspective, we are seeking to build or acquire broadband communications and mobile businesses that have strong prospects for future growth. As discussed further under Liquidity and Capital Resources—Capitalization below, we also seek to maintain our debt at levels that provide for attractive equity returns without assuming undue risk.
We strive to achieve “organic” revenue and customer growth in our operations by developing and marketing bundled entertainment, information and communications services, and extending and upgrading the quality of our networks where appropriate. As we use the term, organic growth excludes FX and the estimated impact of acquisitions and disposals. 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.
Results of Operations
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.
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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.
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. dollar. 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 . Quantitative and Qualitative Disclosures About Market Risk—Foreign Currency Risk below. For information regarding foreign currency risk, see Item 1A. Risk Factors above.
The amounts presented and discussed below represent 100% of the revenue and expenses of each segment and our corporate operations. 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 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.
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. Any cost increases that we are not able to pass on to our subscribers would result in increased pressure on our operating margins.
Year Ended December 31, 2024 as Compared with Year Ended December 31, 2023
Operating Income or Loss
The following table sets forth the organic and non-organic changes in the components of operating income or loss during 2024, as compared to 2023.
Year ended December 31, Increase (decrease) from:
Increase (decrease) An acquisition
2024 2023 FX Organic
in millions
Revenue $ 4,456.9 $ 4,511.1 $ (54.2) $ 29.1 $ 12.5 $ (95.8)
Operating costs and expenses:
Programming and other direct costs of services
989.4 1,020.4 (31.0) 6.8 8.8 (46.6)
Other operating costs and expenses 1,957.8 1,877.8 80.0 13.4 2.7 63.9
Depreciation and amortization 968.3 1,008.3 (40.0) 4.2 — (44.2)
Impairment, restructuring and other operating items, net 589.7 86.9 502.8 0.1 — 502.7
4,505.2 3,993.4 511.8 24.5 11.5 475.8
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.
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Consolidated Adjusted OIBDA
On a consolidated basis, Adjusted OIBDA is a non-U.S. GAAP measure. 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. We believe our Adjusted OIBDA measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measures may not be directly comparable to similar measures used by other public companies. Adjusted OIBDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other U.S. GAAP measures of income or loss.
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,
2024 2023
in millions
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
Impairment, restructuring and other operating items, net 589.7 86.9
Consolidated Adjusted OIBDA $ 1,593.7 $ 1,701.6
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 Corporate Intersegment eliminations Consolidated
in millions
Adjusted OIBDA for the year ending:
December 31, 2023 $ 596.9 $ 227.7 $ 261.5 $ 485.5 $ 203.1 $ (73.1) $ — $ 1,701.6
Organic changes related to:
Revenue 32.3 20.6 (10.1) (169.7) 33.9 (3.9) 1.1 (95.8)
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)
Non-organic increases (decreases):
FX (3.2) — 0.7 — 11.8 (0.4) — 8.9
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
The following table sets forth the Adjusted OIBDA Margin of each of our reportable segments:
Year ended December 31,
2024 2023
%
C&W Caribbean 43.3 41.5
C&W Panama 35.3 30.7
Liberty Networks 54.2 57.7
Liberty Puerto Rico 24.5 34.2
Liberty Costa Rica 37.4 37.1
Adjusted OIBDA margin is impacted by organic changes in revenue, programming and other direct costs of services and other operating costs and expenses. 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.
Revenue
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 (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. Changes in ARPU can be attributable to (i) changes in prices, (ii) changes in bundling or promotional discounts, (iii) changes in the tier of services selected, (iv) variances in subscriber usage patterns and (v) the overall mix of fixed and mobile products during the period. 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 table sets forth the organic and non-organic changes in revenue by reportable segment.
Year ended December 31, Increase (decrease) Increase (decrease) from:
2024 2023 FX An acquisition Organic
in millions
C&W Caribbean $ 1,462.8 $ 1,437.0 $ 25.8 $ (6.5) $ — $ 32.3
C&W Panama 763.2 742.6 20.6 — — 20.6
Liberty Networks 447.5 453.3 (5.8) 4.3 — (10.1)
Liberty Puerto Rico 1,260.5 1,417.7 (157.2) — 12.5 (169.7)
Liberty Costa Rica 613.1 547.9 65.2 31.3 — 33.9
Corporate 19.6 23.5 (3.9) — — (3.9)
Intersegment eliminations (109.8) (110.9) 1.1 — — 1.1
Total $ 4,456.9 $ 4,511.1 $ (54.2) $ 29.1 $ 12.5 $ (95.8)
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C&W Caribbean . C&W Caribbean’s revenue by major category is set forth below:
Year ended December 31, Increase (decrease)
2024 2023 $ %
in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue $ 486.2 $ 487.5 $ (1.3) (0.3)
Non-subscription revenue 28.0 29.0 (1.0) (3.4)
Total residential fixed revenue 514.2 516.5 (2.3) (0.4)
Residential mobile revenue:
Service revenue 352.3 330.3 22.0 6.7
Interconnect, inbound roaming, equipment sales and other 79.5 78.8 0.7 0.9
Total residential mobile revenue 431.8 409.1 22.7 5.5
Total residential revenue 946.0 925.6 20.4 2.2
B2B revenue 516.8 511.4 5.4 1.1
Total $ 1,462.8 $ 1,437.0 $ 25.8 1.8
The details of the changes in C&W Caribbean’s revenue during 2024, as compared to 2023, are set forth below (in millions):
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ (0.7)
ARPU (b) 1.5
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)
Total $ 25.8
(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.
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C&W Panama. C&W Panama’s revenue by major category is set forth below:
Year ended December 31, Increase (decrease)
2024 2023 $ %
in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue $ 122.3 $ 116.5 $ 5.8 5.0
Non-subscription revenue 5.0 5.5 (0.5) (9.1)
Total residential fixed revenue 127.3 122.0 5.3 4.3
Residential mobile revenue:
Service revenue 272.2 260.6 11.6 4.5
Interconnect, inbound roaming, equipment sales and other 61.0 52.0 9.0 17.3
Total residential mobile revenue 333.2 312.6 20.6 6.6
Total residential revenue 460.5 434.6 25.9 6.0
B2B revenue 302.7 308.0 (5.3) (1.7)
Total $ 763.2 $ 742.6 $ 20.6 2.8
The details of the changes in C&W Panama’s revenue during 2024, as compared to 2023, are set forth below (in millions):
Increase (decrease) in residential fixed subscription revenue due to change in:
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
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)
Total $ 20.6
(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.
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Liberty Networks . Liberty Networks’ revenue by major category is set forth below:
Year ended December 31, Increase (decrease)
2024 2023 $ %
in millions, except percentages
B2B revenue:
Enterprise revenue $ 131.1 $ 118.5 $ 12.6 10.6
Wholesale revenue 316.4 334.8 (18.4) (5.5)
Total $ 447.5 $ 453.3 $ (5.8) (1.3)
The details of the changes in Liberty Networks’ revenue during 2024, as compared to 2023, are set forth below (in millions):
Increase in enterprise revenue (a) $ 9.9
Decrease in wholesale revenue (b) (20.0)
Total organic decrease (10.1)
Impact of FX 4.3
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, Decrease
2024 2023 $ %
in millions, except percentages
Residential fixed revenue:
Subscription revenue $ 474.5 $ 478.7 $ (4.2) (0.9)
Non-subscription revenue 23.3 25.5 (2.2) (8.6)
Total residential fixed revenue
497.8 504.2 (6.4) (1.3)
Residential mobile revenue:
Service revenue 333.4 398.7 (65.3) (16.4)
Interconnect, inbound roaming, equipment sales and other 189.0 250.0 (61.0) (24.4)
Total residential mobile revenue 522.4 648.7 (126.3) (19.5)
Total residential revenue 1,020.2 1,152.9 (132.7) (11.5)
B2B revenue 206.7 224.3 (17.6) (7.8)
Other revenue 33.6 40.5 (6.9) (17.0)
Total
$ 1,260.5 $ 1,417.7 $ (157.2) (11.1)
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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 (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ 3.1
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 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.
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Liberty Costa Rica . Liberty Costa Rica’s revenue by major category is set forth below:
Year ended December 31, Increase (decrease)
2024 2023 $ %
in millions, except percentages
Residential revenue:
Residential fixed revenue:
Subscription revenue $ 137.1 $ 144.3 $ (7.2) (5.0)
Non-subscription revenue 35.2 14.3 20.9 146.2
Total residential fixed revenue 172.3 158.6 13.7 8.6
Residential mobile revenue:
Service revenue 276.0 242.1 33.9 14.0
Interconnect, inbound roaming, equipment sales and other 88.9 80.2 8.7 10.8
Total residential mobile revenue 364.9 322.3 42.6 13.2
Total residential revenue 537.2 480.9 56.3 11.7
B2B revenue 75.9 67.0 8.9 13.3
Total $ 613.1 $ 547.9 $ 65.2 11.9
The details of the changes in Liberty Costa Rica’s revenue during 2024, as compared to 2023, are set forth below (in millions):
Increase (decrease) in residential fixed subscription revenue due to change in:
Average number of RGUs (a) $ 1.1
ARPU (b) (15.4)
Increase in residential fixed non-subscription revenue (c) 19.0
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 (e) 4.1
Increase in B2B revenue (f) 5.4
Total organic increase 33.9
Impact of FX 31.3
Total $ 65.2
(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.
(c) The increase is primarily attributable to higher volumes of CPE sales.
(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.
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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, 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.
Year ended December 31, Increase (decrease) from:
Increase (decrease) FX An acquisition Organic
2024 2023
in millions
Programming and copyright $ 233.6 $ 237.2 $ (3.6) $ 1.7 $ — $ (5.3)
Interconnect 278.3 302.5 (24.2) 1.2 6.2 (31.6)
Equipment 315.9 320.6 (4.7) 3.2 2.6 (10.5)
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)
C&W Caribbean . The following table sets forth the organic and non-organic changes in programming and other direct costs of services for our C&W Caribbean segment.
Year ended December 31, Increase (decrease) Increase (decrease) from:
2024 2023 FX Organic
in millions
Programming and copyright $ 64.2 $ 71.5 $ (7.3) $ (0.3) $ (7.0)
Interconnect 65.4 75.2 (9.8) (0.5) (9.3)
Equipment 50.0 49.0 1.0 (0.1) 1.1
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 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 lower rates resulting from the renegotiation of a contract.
• Equipment: 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.
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C&W Panama . 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)
2024 2023
in millions
Programming and copyright $ 22.0 $ 21.4 $ 0.6
Interconnect 69.4 72.2 (2.8)
Equipment 50.3 41.6 8.7
Project-related and other 107.5 117.8 (10.3)
Total programming and other direct costs of services $ 249.2 $ 253.0 $ (3.8)
• Interconnect: The decrease is primarily due to lower volumes of traffic.
• Equipment: 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, Decrease Increase (decrease) from:
2024 2023 FX Organic
in millions
Interconnect $ 49.0 $ 49.3 $ (0.3) $ 0.3 $ (0.6)
Equipment 0.3 0.6 (0.3) — (0.3)
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 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 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
in millions
Programming and copyright $ 109.8 $ 112.4 $ (2.6) $ — $ (2.6)
Interconnect 83.7 93.3 (9.6) 6.2 (15.8)
Equipment 151.4 179.6 (28.2) 2.6 (30.8)
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)
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• Programming and copyright: The organic decrease is primarily due to the net effect of (i) lower average number of subscribers and (ii) rate increases.
• Interconnect: The organic decrease is mostly due to lower interconnect costs associated with a transition service agreement that expired during 2024.
• Equipment: 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.
Year ended December 31, Increase (decrease) from:
Increase (decrease) FX Organic
2024 2023
in millions
Programming and copyright $ 37.6 $ 33.1 $ 4.5 $ 2.0 $ 2.5
Interconnect 28.4 33.1 (4.7) 1.4 (6.1)
Equipment 63.9 49.8 14.1 3.3 10.8
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 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 lower (i) rates, (ii) volumes of long-distance and international traffic, and (iii) commission costs associated with prepaid mobile distributors.
• Equipment: 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
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;
• Network-related expenses, which primarily include costs related to network access, system power, core network, and CPE repair, maintenance and test costs;
• Service-related costs, which primarily include professional services, information technology-related services, audit, legal and other services;
• Commercial, which primarily includes sales and marketing costs, such as advertising, commissions and other sales and marketing-related costs, and customer care costs related to outsourced call centers;
• 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; and
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• 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.
Year ended December 31, Increase (decrease) from:
Increase (decrease) An acquisition Organic
2024 2023 FX
in millions
Personnel and contract labor $ 579.2 $ 557.6 $ 21.6 $ 2.5 $ — $ 19.1
Network-related 237.2 259.0 (21.8) 1.8 — (23.6)
Service-related 267.2 227.6 39.6 1.2 1.8 36.6
Commercial 189.6 181.1 8.5 2.9 0.9 4.7
Facility, provision, franchise and other
600.6 563.8 36.8 5.0 — 31.8
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 and other Employee Incentive Plan-related expense, see Results of Operations (below Adjusted OIBDA) discussion and analysis below.
C&W Caribbean . The following table sets forth the organic and non-organic changes in other operating costs and expenses for our C&W Caribbean segment.
Year ended December 31, Increase (decrease) Increase (decrease) from:
2024 2023 FX Organic
in millions
Personnel and contract labor $ 201.3 $ 202.5 $ (1.2) $ (0.7) $ (0.5)
Network-related 133.4 135.9 (2.5) (0.6) (1.9)
Service-related 70.6 76.5 (5.9) (0.1) (5.8)
Commercial 42.1 46.1 (4.0) (0.2) (3.8)
Facility, provision, franchise and other 159.6 149.4 10.2 (0.6) 10.8
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
• Network-related: 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 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) 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
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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.
C&W Panama. 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)
2024 2023
in millions
Personnel and contract labor $ 78.8 $ 81.7 $ (2.9)
Network-related 52.1 53.9 (1.8)
Service-related 19.3 17.2 2.1
Commercial 30.1 25.5 4.6
Facility, provision, franchise and other 64.0 83.6 (19.6)
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)
• Personnel and contract labor: The decrease is primarily due to lower headcount levels following the execution of certain restructuring plans.
• Commercial: 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 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. 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:
2024 2023 FX Organic
in millions
Personnel and contract labor $ 46.4 $ 45.0 $ 1.4 $ 1.5 $ (0.1)
Network-related 47.9 45.7 2.2 0.4 1.8
Service-related 9.8 6.1 3.7 0.1 3.6
Commercial 1.4 1.7 (0.3) — (0.3)
Facility, provision, franchise and other 34.3 24.6 9.7 0.7 9.0
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
• Network-related: 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 bad debt expense, mostly driven by adjustments for two large customers during 2024.
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Liberty Puerto Rico . 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
in millions
Personnel and contract labor $ 164.1 $ 154.9 $ 9.2 $ — $ 9.2
Network-related 36.3 52.5 (16.2) — (16.2)
Service-related 119.7 79.5 40.2 1.8 38.4
Commercial 54.6 51.2 3.4 0.9 2.5
Facility, provision, franchise and other 227.9 206.7 21.2 — 21.2
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 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 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 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 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 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.
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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.
Year ended December 31, Increase (decrease) Increase (decrease) from:
2024 2023 FX Organic
in millions
Personnel and contract labor $ 32.0 $ 32.2 $ (0.2) $ 1.7 $ (1.9)
Network-related 39.9 39.1 0.8 2.0 (1.2)
Service-related 25.3 25.1 0.2 1.2 (1.0)
Commercial 61.4 56.5 4.9 3.1 1.8
Facility, provision, franchise and other 88.2 71.7 16.5 4.5 12.0
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
• 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 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 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.
Corporate . The following table sets forth the changes in other operating costs and expenses for our corporate operations.
Year ended December 31, Increase (decrease)
2024 2023
in millions
Personnel and contract labor $ 56.6 $ 41.4 $ 15.2
Service-related 25.0 23.2 1.8
Facility, provision, franchise and other 27.8 32.4 (4.6)
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 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 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.
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Results of operations (below Adjusted OIBDA)
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 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
Year ended December 31,
2024 2023
in millions
Impairment charges (a) $ 538.4 $ 67.0
Restructuring charges (b) 38.5 33.6
Other operating items, net (c) 12.8 (13.7)
Total $ 589.7 $ 86.9
(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.
(c) The amounts primarily include the net effect of direct acquisition costs and gains on asset dispositions.
Interest expense
Our interest expense increased $26 million during 2024, as compared to 2023. 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.
It is possible that the interest rates on (i) any new borrowings could be higher than the current interest rates on our existing indebtedness and (ii) our variable-rate indebtedness could increase in future periods. As further discussed in note 7 to our consolidated financial statements and under Item 7A. Qualitative and Quantitative Disclosures about Market Risk below, we use derivative instruments to manage our interest rate risks.
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Realized and unrealized gains or losses on derivative instruments, net
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 (losses) on derivative instruments, net, are as follows:
Year ended December 31,
2024 2023
in millions
Interest rate derivative contracts (a) $ 76.7 $ 27.3
Foreign currency forward contracts and other (b) (7.6) (30.6)
Weather Derivatives (c) 13.0 (30.9)
Total $ 82.1 $ (34.2)
(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. dollar.
(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. Qualitative and Quantitative Disclosures about Market Risk below.
Foreign currency transaction gains or losses, net
Our foreign currency transaction gains or losses primarily result from the remeasurement of monetary assets and liabilities that are denominated in currencies other than the underlying functional currency of the applicable entity. 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 gains (losses), net, are as follows:
Year ended December 31,
2024 2023
in millions
U.S. dollar-denominated debt issued by non-U.S.dollar functional currency entities (a) $ 10.2 $ 54.4
Intercompany payables and receivables denominated in a currency other than the entity’s functional currency
(14.9) 7.8
Other (b) (13.6) 8.1
Total $ (18.3) $ 70.3
(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.
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.
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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.
For additional information concerning our losses on debt modification and extinguishment, see note 10 to our consolidated financial statements.
Income tax benefit or expense
Liberty Latin America was formed as a corporation in Bermuda where the Company has a “statutory” or “expected” tax rate of 0% for the 2024 and 2023 tax years. However, a majority of our subsidiaries operate in jurisdictions where income tax is imposed at local applicable statutory rates. For additional information, see note 14 to our consolidated financial statements.
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
The following table sets forth selected summary financial information of our net loss:
Year ended December 31,
2024 2023
in millions
Operating income (loss) $ (48.3) $ 517.7
Net non-operating expenses $ (583.1) $ (580.1)
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 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.
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Liquidity and Capital Resources
Sources and Uses of Cash
As of December 31, 2024, we have three primary “borrowing groups,” which include the respective restricted parent and subsidiary entities of C&W, Liberty Puerto Rico and Liberty Costa Rica. Our borrowing groups, which typically generate cash from operating activities, held a significant portion of our consolidated cash and cash equivalents at December 31, 2024. Our ability to access the liquidity of these and other subsidiaries may be limited by tax and legal considerations, the presence of noncontrolling interests, foreign currency exchange restrictions with respect to certain C&W subsidiaries and other factors. For details of the restrictions on our subsidiaries to make payments to us through dividends, loans or other distributions see note 10 to our consolidated financial statements.
Cash and cash equivalents
The details of the U.S. dollar equivalent balances of our cash and cash equivalents at December 31, 2024 are set forth in the following table (in millions):
Cash and cash equivalents held by:
Liberty Latin America and unrestricted subsidiaries:
Liberty Latin America (a) $ 10.4
Unrestricted subsidiaries (b) 80.2
Total Liberty Latin America and unrestricted subsidiaries 90.6
Borrowing groups (c):
C&W (d) 523.0
Liberty Puerto Rico 23.0
Liberty Costa Rica 17.7
Total borrowing groups 563.7
Total cash and cash equivalents
$ 654.3
(a) Represents the amount held by Liberty Latin America on a standalone basis.
(b) Represents the aggregate amount held by subsidiaries of Liberty Latin America that are outside of our borrowing groups. All of these companies rely on funds provided by our borrowing groups to satisfy their liquidity needs.
(c) Represents the aggregate amounts held by the parent entity of the applicable borrowing group and their restricted subsidiaries.
(d) Includes $71 million and $52 million of cash held by operations in C&W Panama and C&W Bahamas, respectively.
Liquidity and capital resources of Liberty Latin America and its unrestricted subsidiaries
Our current sources of corporate liquidity include (i) cash and cash equivalents held by Liberty Latin America and, subject to certain tax and legal considerations, Liberty Latin America’s unrestricted subsidiaries, and (ii) interest and dividend income received on our and, subject to certain tax and legal considerations, our unrestricted subsidiaries’ cash and cash equivalents and investments. From time to time, Liberty Latin America and its unrestricted subsidiaries may also receive (i) proceeds in the form of distributions or loan repayments from Liberty Latin America’s borrowing groups upon (a) the completion of recapitalizations, refinancings, asset sales or similar transactions by these entities or (b) the accumulation of excess cash from operations or other means, (ii) proceeds upon the disposition of investments and other assets of Liberty Latin America and its unrestricted subsidiaries and (iii) proceeds in connection with the incurrence of debt by Liberty Latin America or its unrestricted subsidiaries or the issuance of equity securities by Liberty Latin America. No assurance can be given that any external funding would be available to Liberty Latin America or its unrestricted subsidiaries on favorable terms, or at all. As noted above, various factors may limit our ability to access the cash of our borrowing groups.
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)
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acquisitions and other investment opportunities, (iv) the repurchase of debt securities, (v) tax payments or (vi) any funding requirements of our consolidated subsidiaries.
During 2024, the aggregate value of our share repurchases was $83 million. For additional information regarding our Share Repurchase Programs, see note 12 to our consolidated financial statements and above Part II—Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities .
Liquidity and capital resources of borrowing groups
The cash and cash equivalents of our borrowing groups are detailed in the table above. In addition to cash and cash equivalents, the primary sources of liquidity of our borrowing groups are cash provided by operations and borrowing availability under their respective debt instruments. For the details of the borrowing availability of our borrowing groups at December 31, 2024, 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 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, 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.
For additional information regarding our cash flows, see the discussion under Liquidity and Capital Resources—Consolidated Statements of Cash Flows below.
Capitalization
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. As further discussed under Item 7A. Quantitative and Qualitative Disclosures about Market Risk and in note 7 to our consolidated financial statements, we also use derivative instruments to mitigate foreign currency and interest rate risks associated with our debt instruments.
Our ability to service or refinance our debt and, where applicable, to maintain compliance with the leverage covenants in the credit agreements of our borrowing groups is dependent primarily on our ability to maintain covenant EBITDA of our operating subsidiaries, as specified by our subsidiaries’ debt agreements ( Covenant EBITDA ), and to achieve adequate returns on our property and equipment additions and acquisitions. In addition, our ability to obtain additional debt financing is limited by incurrence-based and/or maintenance-based leverage covenants contained in the various debt instruments of our borrowing groups. For example, if the Covenant EBITDA of one of our borrowing groups were to decline, our ability to support or obtain additional debt in that borrowing group could be limited. No assurance can be given that we would have sufficient sources of liquidity, or that any external funding would be available on favorable terms, or at all, to fund any such required repayment. At December 31, 2024, each of our borrowing groups was in compliance with its debt covenants. We do not anticipate any instances of non-compliance with respect to the debt covenants of our borrowing groups that would have a material adverse impact on our liquidity during the next 12 months.
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. 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. For additional information concerning our debt, including our debt maturities, see note 10 to our consolidated financial statements.
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The weighted average interest rate in effect at December 31, 2024 for all borrowings outstanding pursuant to each debt instrument, including any applicable margin, was 7.1%. 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, 2024 was as follows:
Borrowing group Decrease to borrowing costs
C&W (1.3) %
Liberty Puerto Rico (0.5) %
Liberty Costa Rica — %
Liberty Latin America borrowing groups (1.0) %
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 . However, as our debt maturities grow in later years, we anticipate that we will seek to refinance or otherwise extend our debt maturities. No assurance can be given that we will be able to complete refinancing transactions or otherwise extend our debt maturities. In this regard, it is difficult to predict how political, economic and social conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position. Our ability to access debt financing on favorable terms, or at all, could be adversely impacted by (i) the financial failure of any of our counterparties, which could (a) reduce amounts available under committed credit facilities and (b) adversely impact our ability to access cash deposited with any failed financial institution, and (ii) tightening of the credit markets. In addition, any weakness in the equity markets could make it less attractive to use our shares to satisfy contingent or other obligations, and sustained or increased competition, particularly in combination with adverse economic or regulatory developments, could have an unfavorable impact on our cash flows and liquidity.
Consolidated Statements of Cash Flows
General. Our cash flows are subject to variations due to FX. For further information, see related discussion under Item 7A. Quantitative and Qualitative Disclosures about Market Risk—Foreign Currency Risk below.
Summary. Our 2024 and 2023 consolidated statements of cash flows are summarized as follows:
Year ended December 31,
2024 2023 Change
in millions
Net cash provided by operating activities $ 756.3 $ 897.0 $ (140.7)
Net cash used by investing activities (688.5) (615.8) (72.7)
Net cash used by financing activities (386.4) (62.4) (324.0)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (10.9) (7.9) (3.0)
Net increase (decrease) in cash, cash equivalents and restricted cash $ (329.5) $ 210.9 $ (540.4)
Operating Activities. 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.
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Investing Activities. 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. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid. In this discussion, we refer to (i) our capital expenditures, net, as reported in our consolidated statements of cash flows, and (ii) our total property and equipment additions, which include our capital expenditures, net, on an accrual basis and amounts financed under capital-related vendor financing or finance lease arrangements.
A reconciliation of our property and equipment additions to our capital expenditures, net, as reported in our consolidated statements of cash flows, is set forth below:
Year ended December 31,
2024 2023
in millions
Property and equipment additions $ 725.3 $ 730.9
Assets acquired under capital-related vendor financing arrangements (154.9) (143.8)
Changes in current liabilities related to capital expenditures and other (30.0) (2.1)
Capital expenditures, net $ 540.4 $ 585.0
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, 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
In the ordinary course of business, we may provide (i) indemnifications to our lenders, our vendors and certain other parties and (ii) performance and/or financial guarantees to local municipalities, our customers and vendors. Historically, these arrangements have not resulted in our company making any material payments and we do not believe that they will result in material payments in the future.
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Contractual Commitments
The following table sets forth the U.S. dollar equivalents of our debt and certain other contractual obligations and commitments as of December 31, 2024.
Payments due by period
Total Less than
1 year 1-3 years 3-5 years More than
5 years
in millions
Debt (excluding interest) $ 8,138.8 $ 465.0 $ 1,960.8 $ 4,038.9 $ 1,674.1
Operating leases 734.6 126.0 211.6 165.1 231.9
Other (a) 336.2 116.0 189.5 16.4 14.3
Total (b) $ 9,209.6 $ 707.0 $ 2,361.9 $ 4,220.4 $ 1,920.3
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) 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. Our liability for uncertain tax positions, including accrued interest, in the various jurisdictions in which we operate ($41 million at December 31, 2024) 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 14 to our consolidated financial statements.
(c) Amounts are based on interest rates, interest payment dates, commitment fees and contractual maturities in effect as of December 31, 2024. 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 operating leases, debt and finance lease obligations and commitments, see notes 9, 10 and 17, 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. For information regarding projected cash flows associated with our derivative instruments, see Item 7A. Quantitative and Qualitative Disclosures About Market Risk—Projected Cash Flows Associated with Derivative Instruments below . For information regarding our derivative instruments, including the net cash paid or received in connection with these instruments during 2024, 2023 and 2022, see note 7 to our consolidated financial statements. For information regarding our defined benefit plans, see note 11 to our consolidated financial statements.
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Critical Accounting Policies, Judgments and Estimates
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 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:
• Impairment of property and equipment and intangible assets (including goodwill); and
• Fair value measurements in acquisition accounting.
For additional information concerning our significant accounting policies, see note 3 to our consolidated financial statements.
Impairment of Property and Equipment and Intangible Assets
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 are recoverable. 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. 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. 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. Such adjustment is measured by the amount that the carrying value of such asset or asset group exceeds its fair value. 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 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. 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. 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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Fair Value Measurements in Acquisition Accounting
The application of acquisition accounting requires that we make fair value determinations as of the applicable valuation date. In making these determinations, we are required to make estimates and assumptions that affect the recorded amounts, including, but not limited to, expected future cash flows, market comparables and discount rates, remaining useful lives of long-lived assets, replacement or reproduction costs of property and equipment and the amounts to be recovered in future periods from acquired net operating losses and other deferred tax assets. 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 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 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.