Liberty Latin America Ltd. earnings

Management highlights

• C&W credit silo: Q1 revenue flat, adjusted EBITDA down due to hurricane and El Salvador project. • LN: Revenue growth from wholesale business, adjusted EBITDA impacted by direct costs of El Salvador project. • LCR: Undertook comprehensive cost-out program in early days. • LPR: Revenue stabilizing, adjusted EBITDA up due to cost base improvement. • Mentioned adjusted OIBADA, P&E additions, FCF; invested $111 million in P&E additions, 8% less than last year. • Announced intent to dividend 9% cash pay preferred stock of $500 million. • Equity repurchase in Q1, $184 million remaining under authorization. • Joint press release with GCI Liberty, GCI Liberty bought 12 million shares in LLA from Searchlight Capital.

Guidance

• Expect spend to pick up over rest of the year, with $12 million spend in Q1 associated with Jamaican recovery. • Adjusted FCF expected to be highly weighted to later in the year. • Intent to dividend 9% cash pay preferred stock with notional amount of $500 million, aiming to complete before end of Q2. • Expect AI to bring further cost improvements, with an individual appointed to lead AI transformation.

Segment performance

For C&W credit silo: Q1 revenue $631 million, flat year-over-year rebase growth; adjusted EBITDA $282 million, 5% year-over-year rebase decrease. Liberty Networks (LN): Q1 revenue $121 million, 7% rebase growth; adjusted EBITDA $55 million, 5% year-over-year rebase decline. Liberty, Costa Rica (LCR): Q1 revenue $158 million, 4% year-over-year rebase decline; adjusted EBITDA $57 million, 8% year-over-year rebase decline. Residential mobile growth offset by lower residential fixed and B2B revenue. Liberty, Puerto Rico (LPR): Q1 revenue $296 million, 1% decline; adjusted EBITDA $91 million, 12% growth. Revenue stabilizing with mobile and B2B recovery, residential fixed hampered by modest churn increase.

Risks & headwinds

• In Costa Rica, residential fixed revenue decline due to ARPU pressure and lower equipment sales. • In Puerto Rico, residential fixed business hampered by modest increase in churn over past year. • Energy costs could impact, though only about 2% of revenue overall, but will use mitigating strategies.

Analyst Q&A

• Q: Congratulations on the results and the dividend. Was curious about pricing phenomena in other markets like Costa Rica and how to provide better value.

  A: LLA has been disciplined in managing front book pricing, Costa Rica is an aberration, front book is competitive, will be competitive and focus on market share.

• Q: Question on cost structure and impact of energy costs.

  A: Very focused on cost, EBITDA and operating free cash flow margins healthy, expect further cost improvements via AI, energy costs only ~2% of revenue, network topology move reduces energy costs, have mitigating strategies for energy increases.