GICS Sector : Communication Services
Liberty Latin America Ltd., together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services.The company operates through C&W Caribbean and Networks, C&W Panama, Liberty Puerto Rico, VTR, and Costa Rica segments.It offers communications and entertainment services, including video, broadband internet, fixed-line telephony, and mobile services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies.
Liberty Latin America reported a revenue of $1.155 billion and adjusted OIBDA of $456 million for Q3 2025, marking a significant return to year-over-year growth. The company's actual EPS came out at $0.02, beating analyst estimates of -$0.06235. The revenue growth was driven by better trends in B2B and residential revenue growth, with the company adding over 100,000 postpaid net adds across the group. The adjusted OIBDA less P&E additions was $284 million, a 22% improvement year-over-year.
Publication Date: Nov -20
The Cable & Wireless credit silo had a solid quarter, with Liberty Caribbean reporting 3% year-over-year revenue growth on a rebased basis, driven by continued growth in FMC and selected price increases. C&W Panama delivered 6% rebased revenue growth, while Liberty Networks generated 6% year-over-year rebased revenue growth. Costa Rica was a key driver of growth, with almost 130,000 postpaid subscribers added in the first 9 months of the year, representing a 13% expansion on the Q4 2024 base.
The company expects its comprehensive cost reduction plan to continue yielding benefits through 2026, with a focus on cost of goods sold, other OpEx costs, tower leases, and labor. Liberty Networks' margin expansion was driven by improved bad debt, acceleration of IRUs, and a focus on monthly recurring revenue. Puerto Rico's margin expansion is expected to come from revenue growth, with a focus on FMC bundles, new products, and digital sales.
With a P/S Ratio of 0.36 and EV/EBITDA of 18.19, the market seems to have a mixed view on the company's valuation. Analysts estimate next year's revenue growth at -0.9%, but the company's focus on cost-cutting initiatives and margin expansion could lead to improved profitability. The company's robust parametric insurance program and liability management process also provide a positive outlook. As the company continues to focus on organic growth, strategic initiatives, and optimal capital allocation, it is well-positioned for a bright future.
Liberty Latin America (NASDAQ:LILA) versus Cogent Communications (NASDAQ:CCOI) Critical Analysis
Nov -26
Liberty Latin America and Millicom Provide Update on Proposed Costa Rica Transaction
Nov -13
Liberty Latin America Ltd. (LILA) Q3 2025 Earnings Call Transcript
Nov -06
LIBERTY LATIN AMERICA AND LIBERTY CARIBBEAN FOUNDATION DELIVER CRITICAL HUMANITARIAN AID TO JAMAICA FOLLOWING HURRICANE MELISSA
Oct -31
LIBERTY LATIN AMERICA SCHEDULES INVESTOR CALL FOR THIRD QUARTER 2025 RESULTS
Oct -29
LIBERTY LATIN AMERICA WORKING WITH STARLINK DIRECT TO CELL TO PROVIDE EMERGENCY SERVICE IN AFTERMATH OF HURRICANE MELISSA IN JAMAICA
Oct -29
LIBERTY CARIBBEAN WORKING WITH STARLINK DIRECT TO CELL TO PROVIDE EMERGENCY SERVICE IN JAMAICA DURING HURRICANE MELISSA AFTERMATH
Oct -29
LIBERTY PUERTO RICO SUCCESSFULLY RAISES NEW FIVE-YEAR $250 MILLION SECURED FACILITY
Sep -25
C&W Caribbean's 3.0% growth is driven by increasing demand for high-speed internet and data services, particularly in Jamaica and the Bahamas. Expanding fiber-optic networks, growing adoption of digital services, and strategic partnerships with local businesses also contribute to growth. Additionally, Liberty Latin America's investment in network upgrades and customer experience enhancements support revenue expansion.
Liberty Puerto Rico's 3.0% growth is driven by increasing demand for high-speed internet and data services, supported by investments in network upgrades and expansion. Additionally, the company's focus on bundled services and competitive pricing strategies have contributed to customer acquisition and retention, further fueling growth.
C&W Panama's 3.0% growth is driven by increasing demand for high-speed data and video services, fueled by a growing middle class and urbanization. Additionally, Liberty Latin America's investments in network upgrades and expansion, particularly in fiber-to-the-home (FTTH) and 4G LTE, have improved service quality and reliability, attracting new customers and driving revenue growth.
Liberty Costa Rica's 3.0% growth is driven by increasing demand for high-speed internet and data services, supported by government initiatives to improve digital infrastructure. Additionally, the company's focus on expanding its fiber-optic network and offering bundled services has attracted new customers, contributing to revenue growth.
Liberty Networks' 3.0% growth is driven by increasing demand for high-speed internet and data services in Latin America, fueled by rising smartphone penetration, growing adoption of streaming services, and government initiatives to expand digital infrastructure. Additionally, Liberty Latin America's strategic investments in network upgrades and expansion into underserved areas contribute to the segment's growth.
Liberty Latin America Ltd.'s Intersegment Eliminations with 0.0% growth is driven by the absence of significant transactions between segments, indicating a lack of intercompany sales or investments. This suggests a decentralized operating structure, where each segment operates independently, with minimal dependencies on other segments.
Liberty Latin America Ltd.'s corporate segment growth is stagnant at 0.0%. This is attributed to intense competition in the Latin American telecommunications market, high operational costs, and limited opportunities for expansion in the region. Additionally, the company's focus on debt reduction and cost-cutting measures has hindered investment in growth initiatives.
Provides fixed-line telephone, internet, and data services to residential, business, and government customers.
Offers mobile voice, data, and SMS services to individual and business customers.
Provides data center and cloud services, including co-location, managed hosting, and cloud computing.
Offers wholesale telecommunications services to other carriers and service providers.
Provides IT and managed services, including cybersecurity, network management, and IT consulting.
Owns and operates submarine fiber optic cables that connect the Americas, Europe, and Africa.
The threat of substitutes for Liberty Latin America Ltd. is medium due to the availability of alternative services and products in the telecommunications industry.
The bargaining power of customers is low due to the lack of negotiating power and the high switching costs in the telecommunications industry.
The bargaining power of suppliers is medium due to the presence of multiple suppliers and the moderate level of dependence on them.
The threat of new entrants is high due to the low barriers to entry and the attractiveness of the telecommunications industry.
The intensity of rivalry is high due to the presence of multiple players and the high level of competition in the telecommunications industry.
| Value | |
|---|---|
| Debt Weight | 82.41% |
| Debt Cost | 5.23% |
| Equity Weight | 17.59% |
| Equity Cost | 9.56% |
| WACC | 6.00% |
| Leverage | 468.62% |
Value: 7.2
Growth: 5.1
Quality: 2.6
Yield: 6.0
Momentum: 6.0
Volatility: 4.7
1-Year Total Return ->
Value: 8.8
Growth: 4.6
Quality: 2.7
Yield: 7.0
Momentum: 0.0
Volatility: 3.7
1-Year Total Return ->
Value: 7.0
Growth: 3.9
Quality: 4.5
Yield: 0.0
Momentum: 7.0
Volatility: 3.7
1-Year Total Return ->
Value: 3.1
Growth: 7.3
Quality: 3.4
Yield: 0.0
Momentum: 10.0
Volatility: 2.0
1-Year Total Return ->
Value: 7.2
Growth: 0.7
Quality: 1.1
Yield: 0.0
Momentum: 5.0
Volatility: 5.0
1-Year Total Return ->
Value: 6.7
Growth: 2.1
Quality: 1.6
Yield: 0.0
Momentum: 3.0
Volatility: 4.7
1-Year Total Return ->