Q2 2026 Liberty Latin America Ltd Earnings Call Transcript
Key Points
- Added 45,000 mobile postpaid and broadband subscribers in Q2, with all segments contributing positively.
- Reported 3% year-over-year rebased adjusted OIBDA growth, accelerating from Q1 and setting up a strong second half.
- Adjusted free cash flow before distributions increased significantly, up $164 million in H1 2026 versus H1 2025.
- Announced an AI-driven IT services deal with Amdocs, expected to deliver over $250 million in NPV through OpEx and CapEx reductions.
- Successfully distributed $500 million in preferred stock, providing an attractive cash return and reflecting confidence in the business.
- Launched 5G in Jamaica, covering 70% of the population, and introduced the 'Unbeatable Network' campaign to enhance fixed and mobile connectivity.
- Liberty Networks delivered 10% rebased revenue growth, driven by strong wholesale demand and new projects like the El Salvador subsea cable.
- Liberty Puerto Rico showed improved postpaid momentum with positive adds for three consecutive quarters and improved port-in data.
- Executed price increases in Panama and Puerto Rico with early feedback showing lower churn and supportive customer response.
- Continued share repurchases, buying over $60 million year-to-date, with $140 million remaining under authorization.
- Liberty Caribbean results were negatively impacted by Hurricane Melissa, with a $6 million net impact on revenue and adjusted OIBDA in Q2.
- Liberty Puerto Rico revenue declined 5% year-over-year on a rebased basis, with continued single-digit declines in residential mobile and fixed.
- Cable & Wireless Panama adjusted OIBDA declined 5% year-over-year due to lower B2B revenue and higher professional services costs.
- Liberty Costa Rica fixed revenue continued to decline year-over-year, and postpaid adds were temporarily paused due to sales channel migration.
- Consolidated net leverage remains high at 4.6 times, with Puerto Rico's leverage adding roughly a turn to the overall ratio.
- Adjusted free cash flow in H2 2026 is expected to be less robust than last year due to weather derivative proceeds received in Q4 2025 and vendor financing paydowns.
- Jamaica fixed subscriber base has not fully recovered to pre-hurricane levels, with some homes not expected to be rebuilt.
- The company faces ongoing competitive pressures in Costa Rica and Puerto Rico, requiring continued investment and operational improvements.
- The preferred stock distribution adds gearing to common equity, increasing financial risk for shareholders.
- The company's stock continues to trade at a discount to fair value, partly due to perceived headwinds from Puerto Rico.
Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded.
I'll now turn the call over to Britta Reinhardt, Chief Commercial Officer, B2C Liberty Caribbean.
Good morning, and welcome to Liberty Latin America's second-quarter 2026 investor call. (Event Instructions) Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com.
Following today's formal presentation, instructions will be given for a question-and-answer session. As a reminder, this call is being recorded.
Today remarks may include forward-looking statements, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact. Actual results may differ materially from those expressed or implied by these statements.
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