Liberty Global Plc Lilac Class A ((LILA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Liberty Global Plc Lilac Class A painted a mixed picture for investors. While the company demonstrated substantial growth in subscriber numbers and adjusted OIBDA, it also faced challenges, including revenue declines and cash flow issues. The call highlighted strong potential for future growth, particularly in Panama and Costa Rica, while addressing ongoing challenges in Puerto Rico.
Subscriber Growth
Liberty Latin America reported a significant increase in subscribers, adding 70,000 in the first half of 2025. Excluding Puerto Rico, the company saw over 100,000 additions, with Costa Rica, Panama, and Jamaica being major contributors to this growth.
Revenue and Adjusted OIBDA Growth
The company reported $2.2 billion in revenue for the first half of 2025. Adjusted OIBDA grew by 8% year-over-year, with strong double-digit growth in Liberty Caribbean, Panama, and Puerto Rico, indicating robust operational performance.
Margin Expansion
Liberty Global achieved a 23% year-over-year expansion in adjusted OIBDA less P&E additions, reaching a margin of 25% of revenue in the first half, and 29% when excluding Puerto Rico, showcasing effective cost management.
Mobile Growth in Panama
In Panama, the company experienced strong postpaid additions, leading to a 6% year-over-year mobile rebased revenue growth, highlighting the region’s potential for further expansion.
Reduced Capital Intensity
The company reported a reduction in capital intensity, with P&E additions accounting for 14% of revenue in Q2, a decrease of 340 basis points from the previous year, indicating improved efficiency.
Improved Cash Flow Prospects
Liberty Global anticipates strong cash flow generation in the second half of the year, particularly in the fourth quarter, suggesting a positive outlook for future financial health.
Revenue Decline
The company faced a 3% decline in Q2 2025 revenue on a rebased basis, primarily due to the phasing of project-related B2B revenues across several geographies, posing a challenge to overall growth.
Challenges in Puerto Rico
Liberty Puerto Rico reported a 5% year-over-year rebased revenue decline, with mobile residential revenue declining by 3%, highlighting ongoing challenges in this market.
B2B Revenue Headwinds in Panama
Panama experienced a 30% decline in B2B revenue year-over-year due to a high volume of government project wins in the prior year, impacting overall revenue performance.
Fixed ARPU Decline in Costa Rica
In Costa Rica, fixed ARPU declined both sequentially and year-over-year due to competitive pressures, indicating a need for strategic adjustments.
Negative Free Cash Flow
The company reported a negative adjusted free cash flow of $41 million in Q2, a decline of $34 million from the previous year, raising concerns about cash management.
Forward-Looking Guidance
Liberty Global’s forward-looking guidance emphasizes unlocking shareholder value by separating Liberty Puerto Rico from the group and ensuring a strong capital structure. The company remains focused on lowering capital intensity and driving strong cash conversion, with expectations for improved B2B revenue momentum across various regions.
In conclusion, Liberty Global Plc Lilac Class A’s earnings call highlighted a mixed sentiment with both growth and challenges. While the company showed strong subscriber growth and margin expansion, it also faced revenue declines and cash flow issues. The forward-looking guidance suggests strategic initiatives to unlock shareholder value and improve financial performance in the coming quarters.