Liberty Global Plc Lilac Class A Faces Mixed Earnings Call

Liberty Global Plc Lilac Class A ((LILA)) has held its Q1 earnings call. Read on for the main highlights of the call.

Liberty Global Plc Lilac Class A’s recent earnings call reflected a mixed sentiment, marked by strong growth in subscriber numbers and Operating Income Before Depreciation and Amortization (OIBDA) across several regions. However, significant challenges in Puerto Rico, including revenue declines and operational difficulties, have led to the withdrawal of the company’s three-year guidance. The performance in other regions could not fully compensate for the issues faced in Puerto Rico.

Strong Subscriber Growth

Liberty Global Plc Lilac Class A reported an impressive addition of 44,000 broadband and postpaid mobile subscribers in the first quarter of 2025. This growth was particularly notable in Costa Rica and the Caribbean, highlighting the company’s successful expansion efforts in these regions.

Impressive OIBDA Growth

The company achieved a remarkable 8% year-over-year rebased growth in adjusted OIBDA for Q1 2025. This growth was primarily driven by double-digit increases in the C&W Caribbean and C&W Panama segments, showcasing the company’s strong operational performance in these areas.

C&W Panama Revenue Surge

C&W Panama reported a 5% rebased revenue growth in the first quarter of 2025, fueled by a 16% increase in mobile revenue and a 3% rise in residential fixed revenue. This surge underscores the robust demand for the company’s services in Panama.

Liberty Networks Performance

Liberty Networks demonstrated solid performance with a 7% rebased growth in wholesale revenue and a 4% increase in enterprise revenue year-over-year. This indicates the company’s successful strategies in expanding its network services.

Puerto Rico Revenue Decline

Liberty Puerto Rico faced an 11% rebased revenue decline year-over-year in Q1 2025, which significantly impacted the overall group performance. This decline highlights the challenges the company is facing in this region.

Challenges in Puerto Rico

Operational challenges in Puerto Rico, including a slower than expected recovery and issues with migration and integration efforts, have been significant hurdles for the company. These challenges have necessitated a reevaluation of the company’s strategies in the region.

Withdrawal of 3-Year Guidance

Due to the underperformance in Puerto Rico and the need for significant operational improvements, Liberty Global Plc Lilac Class A decided to withdraw its three-year guidance. This decision underscores the company’s focus on addressing the challenges in Puerto Rico before setting long-term expectations.

Forward-Looking Guidance

During the first quarter 2025 investor call, Liberty Latin America provided detailed guidance on various performance metrics. The company highlighted its total addition of 44,000 broadband and postpaid mobile subscribers, with significant growth in Costa Rica and the Caribbean. The group’s fixed mobile convergence (FMC) penetration exceeded 30%, contributing to lower churn and a more predictable revenue profile. Despite these positive indicators, the withdrawal of the three-year guidance due to challenges in Puerto Rico remains a critical focus for the company.

In summary, Liberty Global Plc Lilac Class A’s earnings call presented a mixed outlook. While the company showed strong growth in several regions, the challenges in Puerto Rico have posed significant hurdles, leading to the withdrawal of its three-year guidance. The company’s focus on addressing these challenges will be crucial for its future performance.