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Liberty Global Plc Lilac Class A (LILA)
:LILA
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Liberty Global LiLAC (LILA) AI Stock Analysis

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LILA

Liberty Global LiLAC

(NASDAQ:LILA)

Rating:63Neutral
Price Target:
$7.50
▲(11.44%Upside)
Liberty Global LiLAC's stock score is driven by financial challenges, particularly negative profitability and high leverage. Technical indicators suggest bullish momentum, but the overbought RSI is a cautionary sign. The valuation is risky with a negative P/E and no dividends. Earnings call and corporate events indicate growth potential despite regional challenges, enhancing the overall outlook.
Positive Factors
Infrastructure Development
Liberty Networks' new manta subsea network buildout is a unique and essential infrastructure asset in the Caribbean, enhancing connectivity.
Market Position
LLA has achieved over 30% fixed mobile convergence penetration in its major markets, indicating significant growth potential in stable duopoly market structures.
Negative Factors
Financial Performance
Puerto Rico posted an adjusted OIBDA of USD80m, significantly below the USD95m estimate, highlighting challenges in financial performance.
Taxation Impact
Miss at the bottom line was mainly related to higher than expected taxes, impacting overall financial results.

Liberty Global LiLAC (LILA) vs. SPDR S&P 500 ETF (SPY)

Liberty Global LiLAC Business Overview & Revenue Model

Company DescriptionLiberty 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. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services in approximately 20 countries in Latin America, the Caribbean, Chile, and Costa Rica under the brands of C&W, VTR, Liberty Puerto Rico, Cabletica, BTC, UTS, Flow, and Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.
How the Company Makes MoneyLiberty Global LiLAC generates revenue through multiple streams, primarily from subscription fees for its broadband internet, video, and telephony services. The company offers bundled packages that combine these services, which can increase customer retention and average revenue per user. Additionally, LiLAC earns money from mobile services, including postpaid and prepaid plans, as well as from advertising revenues linked to its video services. The company's earnings are also influenced by strategic partnerships and collaborations that enhance its service offerings and expand its market reach. Factors such as regional market conditions, customer demand for high-speed internet and advanced communication services, and regulatory environment in the Latin American and Caribbean markets significantly impact its financial performance.

Liberty Global LiLAC Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 22.36%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
While the company demonstrated strong growth in subscriber numbers and OIBDA across several regions, significant challenges in Puerto Rico, including revenue declines and operational difficulties, have led to the withdrawal of the 3-year guidance. The performance in other regions could not fully compensate for the issues in Puerto Rico.
Q1-2025 Updates
Positive Updates
Strong Subscriber Growth
Added 44,000 broadband and postpaid mobile subscribers in Q1 2025, with notable progress in Costa Rica and the Caribbean.
Impressive OIBDA Growth
Reported group adjusted OIBDA rebased growth of 8% year-over-year in Q1 2025, driven by double-digit growth in C&W Caribbean and C&W Panama.
C&W Panama Revenue Surge
C&W Panama reported 5% rebased revenue growth in Q1 2025, driven by 16% growth in mobile and 3% increase in residential fixed.
Liberty Networks Performance
Liberty Networks showed 7% rebased growth in wholesale revenue and 4% growth in enterprise revenue year-over-year.
Negative Updates
Puerto Rico Revenue Decline
Liberty Puerto Rico experienced an 11% rebased revenue decline year-over-year in Q1 2025, significantly impacting overall group performance.
Challenges in Puerto Rico
Puerto Rico faced operational challenges, including a slower than expected recovery and issues with migration and integration efforts.
Withdrawal of 3-Year Guidance
The company decided to withdraw its 3-year guidance due to underperformance in Puerto Rico and the need for significant operational improvements.
Company Guidance
During Liberty Latin America's first quarter 2025 investor call, the company provided detailed guidance on various performance metrics. The company reported a 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. Liberty Latin America achieved an 8% year-over-year rebased growth in adjusted Operating Income Before Depreciation and Amortization (OIBDA) in Q1, especially driven by double-digit growth in C&W Caribbean and C&W Panama. A focus on cost management led to a 20% year-over-year growth in adjusted OIBDA less property and equipment (P&E) additions. The company's capital intensity is expected to be lower in 2025 and 2026, contributing to these positive financial results. However, due to challenges in the Puerto Rico segment, Liberty Latin America decided to withdraw its three-year guidance from 2024 to 2026.

Liberty Global LiLAC Financial Statement Overview

Summary
Liberty Global LiLAC is facing financial headwinds with declining revenues, profitability challenges, and high leverage. Despite some strength in cash flow generation, the company must address profitability issues and debt levels to improve financial health and sustainability.
Income Statement
45
Neutral
Liberty Global LiLAC shows a challenging financial trajectory in the income statement. The TTM (Trailing-Twelve-Months) data reveals a gross profit margin of approximately 52.8%, which is decent. However, the net profit margin is negative due to consecutive net losses, indicating profitability issues. Revenue growth is currently negative year-over-year, reflecting a decline from previous periods. EBIT and EBITDA margins have also declined, impacting overall profitability.
Balance Sheet
40
Negative
The balance sheet reflects a high debt-to-equity ratio of approximately 8.09, indicating significant leverage and potential risk in financial stability. The equity ratio is around 8.1%, suggesting limited equity relative to total assets. Additionally, the return on equity is negative due to net losses, highlighting concerns in generating shareholder value.
Cash Flow
50
Neutral
Cash flow analysis shows some strengths with a positive operating cash flow to net income ratio, suggesting effective cash generation despite losses. However, free cash flow growth is volatile, and the free cash flow to net income ratio is positive but fluctuates, indicating challenges in maintaining consistent cash generation.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.46B4.51B4.82B4.80B3.76B
Gross Profit2.96B3.00B3.60B3.61B2.92B
EBITDA964.60M1.55B1.34B1.18B620.40M
Net Income-657.00M-73.60M-201.90M-490.10M-808.90M
Balance Sheet
Total Assets12.80B13.59B13.58B15.39B15.23B
Cash, Cash Equivalents and Short-Term Investments654.30M988.60M781.00M956.70M894.20M
Total Debt8.17B8.26B7.96B7.65B8.36B
Total Liabilities11.17B11.28B11.01B12.47B11.79B
Stockholders Equity1.12B1.76B1.92B2.24B2.71B
Cash Flow
Free Cash Flow215.90M312.00M208.70M279.90M74.30M
Operating Cash Flow756.30M897.00M868.80M1.02B640.10M
Investing Cash Flow-688.50M-615.80M-1.12B-1.27B-2.45B
Financing Cash Flow-386.40M-62.40M-29.20M426.60M271.10M

Liberty Global LiLAC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.73
Price Trends
50DMA
5.74
Positive
100DMA
5.80
Positive
200DMA
6.62
Positive
Market Momentum
MACD
0.27
Negative
RSI
63.96
Neutral
STOCH
70.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LILA, the sentiment is Positive. The current price of 6.73 is above the 20-day moving average (MA) of 6.43, above the 50-day MA of 5.74, and above the 200-day MA of 6.62, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 70.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LILA.

Liberty Global LiLAC Risk Analysis

Liberty Global LiLAC disclosed 49 risk factors in its most recent earnings report. Liberty Global LiLAC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Liberty Global LiLAC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$1.45B15.1438.36%0.38%1.91%169.96%
63
Neutral
$1.35B-57.56%-1.56%-10914.21%
62
Neutral
$41.98B-1.92-12.06%3.47%2.10%-71.01%
57
Neutral
$802.24M59.21-1.12%8.28%-6.30%-109.90%
52
Neutral
$1.08B-7.09%2.07%-23.01%13.13%
52
Neutral
$1.35B-57.56%-1.56%-10914.21%
49
Neutral
$1.25B21.93%-3.68%-2563.04%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LILA
Liberty Global LiLAC
6.71
-3.45
-33.96%
TV
Grupo Televisa, S.A.B.
2.30
0.17
7.98%
IDT
IDT
57.36
19.38
51.03%
CABO
Cable ONE
142.55
-258.41
-64.45%
LILAK
Liberty LiLAC Group
6.80
-3.48
-33.85%
ATUS
Altice Usa
2.62
0.73
38.62%

Liberty Global LiLAC Corporate Events

Executive/Board ChangesShareholder Meetings
Liberty Global LiLAC Holds Annual Shareholders Meeting
Neutral
May 30, 2025

On May 27, 2025, Liberty Latin America Ltd. conducted its Annual General Meeting of Shareholders, during which shareholders voted on four proposals. Notably, Miranda Curtis, Brendan Paddick, and Daniel E. Sanchez were re-elected as Class II members of the board of directors, and KPMG LLP was appointed as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (LILA) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Liberty Global LiLAC stock, see the LILA Stock Forecast page.

Financial Disclosures
Liberty Global LiLAC Q1 2025 Financial Report Released
Neutral
May 23, 2025

On May 23, 2025, Liberty Global LiLAC released its financial report for the quarter ending March 31, 2025, highlighting the company’s ongoing financial performance. This report, accessible on the Liberty Latin America website, provides stakeholders with insights into the company’s operational status and market position.

The most recent analyst rating on (LILA) stock is a Buy with a $9.30 price target. To see the full list of analyst forecasts on Liberty Global LiLAC stock, see the LILA Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Liberty Global LiLAC Reports Strong Q1 2025 Growth
Positive
May 7, 2025

Liberty Latin America Ltd., a telecommunications company, announced its financial results for Q1 2025, highlighting significant growth in its operations across several regions. The company reported over 40,000 organic broadband and postpaid mobile subscriber net additions, a 38% increase in operating income year-over-year, and an 8% growth in rebased Adjusted OIBDA. Despite challenges in Puerto Rico, Liberty Latin America remains optimistic about its overall performance and continues to focus on cost efficiencies and strategic investments to drive future growth.

Financial Disclosures
Liberty Global LiLAC Q1 2025 Results Announcement
Neutral
Apr 30, 2025

Liberty Latin America announced it will release its first quarter 2025 results on May 7, 2025, after the NASDAQ market closes, with an investor call scheduled for May 8, 2025. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s performance and future outlook, potentially impacting its market positioning and investor relations.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025