Skip to content
    LILA
    Earnings call· Jun 2026(Q2 FY26)

    Liberty Latin America Q2 FY26 earnings call LILA

    Aug 6, 2026 Source

    Executive summary

    Liberty Latin America Q2 FY26 — Strong Operational Trends and Free Cash Flow Growth

    Liberty Latin America delivered solid operational and financial results in Q2 FY26, marked by strong subscriber additions and accelerating OIBDA growth. The company is actively pursuing cost optimization through an AI-driven IT services deal and enhancing its network propositions, while also executing on its capital allocation strategy through preferred stock distribution and opportunistic share buybacks. Management remains focused on value creation and addressing the capital structure of Liberty Puerto Rico.

    Highlights

    5

    • Added 45,000 mobile postpaid and broadband subscribers in Q2, with all segments contributing positively.

    • Achieved 3% year-over-year rebased adjusted OIBDA growth in Q2, an acceleration from Q1.

    • Adjusted free cash flow before distributions was materially higher in H1 2026 compared to the same period last year.

    • Successfully distributed $500 million in preferred stock to common shareholders, leaning into a levered equity model.

    • Repurchased over $60 million of common stock year-to-date through Q3, with $140 million remaining under authorization.

    Concerns

    3

    • Hurricane Melissa impacted Liberty Caribbean by roughly $6 million net across both revenue and adjusted OIBDA in Q2.

    • Liberty Puerto Rico's adjusted FCF before distributions was negative $48 million for Q2 and negative $91 million for H1.

    • Cable & Wireless Panama's adjusted OIBDA was down 5% year-over-year due to lower B2B revenue and higher professional services costs.

    Guidance & targets

    1
    CategoryTargetConfidence
    Full-year P&E additions as percentage of revenue
    in the same envelope as 2025
    medium materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Liberty Caribbean
    Impacted by Hurricane Melissa by roughly $6 million net across revenue and adjusted OIBDA. Recovery progressing well, expecting much improved results in Q4. Strong residential mobile performance driven by FMC and pricing actions.
    Residential mobile rebased revenue growth: 4%Postpaid subscribers added: 11,000Jamaica postpaid subscribers added: 6,000
    		$362 milliondeclined—$165 million
    Cable & Wireless Panama
    Lower B2B revenue and higher professional services costs impacted adjusted OIBDA. Residential mobile and fixed showed modest year-over-year growth. Initiated postpaid and fixed price increases in July with positive early feedback.
    Postpaid subscriber growth: double-digit year-over-yearFMC penetration: over 40%Residential broadband subscriber adds: 10,000Video net adds: strongVoice net adds: strong
    		$177 millionflat—$65 million
    Liberty Networks
    Strongest performer in the quarter with double-digit rebased revenue growth. Wholesale driven by El Salvador project and lease capacity sales. Enterprise strength in IT services. Strong cash generator with expanding network assets.
    Wholesale rebased revenue growth: 14%Enterprise rebased revenue growth: 3%
    		$130 million10% rebased—$67 million
    Liberty Costa Rica
    Residential mobile growth offset by declines in residential fixed and B2B. Strong adjusted OIBDA growth and margin expansion due to cost-out and efficiency programs. Mobile additions impacted by temporary pause for sales channel migration, now back to historic levels.
    Residential mobile revenue growth: 6%Broadband adds: 2,000Video net adds: positiveVoice net adds: positive
    		$169 millionflatimproved sequentially from Q1$64 million
    Liberty Puerto Rico
    Residential mobile and fixed experienced single-digit declines. Postpaid subscriber momentum and ARPU improvement. Fixed broadband churn steadily improved. Video turnaround driven by increased gross adds and stabilized churn.
    Postpaid adds: positive (third consecutive quarter)Broadband churn: further reduction in Q2Fixed churn: one of the lowest across LLA groupVideo net adds: positive (two consecutive quarters)Video gross adds: up approximately 50%
    		$288 million5% rebased declineResidential mobile subscription revenue expanded modestly from Q1$93 million
    C&W Credit Silo
    Aggregates Liberty Caribbean, Cable & Wireless Panama, and Liberty Networks.
    		$649 million1% rebased—$297 million

    Operational metrics

    22
    Adjusted OIBDA growth
    3%year-over-year rebased
    Q2 FY26

    Acceleration on Q1 trends.

    Adjusted OIBDA margin
    40%130 bps year-over-year improvement
    Q2 FY26

    Consolidated margin.

    AI-driven IT services deal NPV
    $250 millionnorth of
    null

    Estimated NPV value of the deal with Amdocs.

    Mobile postpaid and broadband subscribers added
    45,000
    Q2 FY26

    All segments reported positive contributions.

    5G population coverage
    70%
    June

    First operator to launch 5G in Jamaica.

    FMC penetration
    over 40%
    Q2 FY26

    Continued to increase.

    P&E additions as percentage of revenue
    16%
    Q2 FY26

    Q2 spend was significantly higher than Q1 due to seasonality and phasing.

    P&E additions as percentage of revenue
    13%
    YTD FY26

    null

    Weather derivative receipts
    $81 million
    Q4 FY25

    Received in cash following Hurricane Melissa, impacting H2 FY26 FCF comparison.

    Preferred stock annual dividend
    9%
    annual

    Payable quarterly.

    Phoenix submarine cable system extension
    378 kilometers
    null

    Utilizing Americas-II route.

    Phoenix submarine cable system capacity
    14 terabytes
    null

    null

    Venezuela business traffic access
    half
    null

    Enables direct access to Curacao's market, representing about half of Venezuela's total business traffic.

    Fixed ARPU
    under some pressure
    Q2 FY26

    Sequentially, fixed subscription revenue was relatively stable.

    Video rate increase
    $2
    per month

    Executed across the TV portfolio.

    Q2 2026 revenue
    $1.1 billionup 1% reported and flat on a rebased basis
    Q2 FY26

    null

    C&W credit silo revenue
    $649 millionup 1% rebased
    Q2 FY26

    null

    C&W credit silo adjusted OIBDA
    $297 milliondown 2% rebased
    Q2 FY26

    null

    Total debt
    $8.5 billion
    Q2 FY26

    Consolidated basis.

    Cash
    $700 million
    Q2 FY26

    Consolidated basis.

    Borrowing capacity
    $900 million
    Q2 FY26

    Around.

    Jamaica fixed business recovery
    pretty close to 100%
    null

    Anticipate to get pretty close to that, though some homes will not be rebuilt.

    Industry KPIs

    6
    MetricValueDetails
    Postpaid phone churnimproved quite significantly
    Postpaid arpa vs ARPUimproved
    Postpaid phone net adds45,000subscribers
    Broadband fwa net adds split45,000subscribers
    Share buyback capital returned$60 millionUSD
    Net debt EBITDA deleveraging path4.6x

    Product announcements

    4
    ProductTypeDetails
    5Glaunch
    Unbeatable Networklaunch
    Liberty Starlinklaunch
    Phoenix submarine cable systemlaunch

    Deals & partnerships

    4
    AmdocsAI-driven IT services deal for cost optimization and digital transformation.NPV north of $250 million

    Agreement to transform legacy systems and processes, leveraging Amdocs' domain-specific AI models for the telecom industry. Transition begins Q4 FY26 with immediate benefits.

    Slim family and ClaroSale agreement for operations in Peru.

    Exit from the Peruvian market due to too many operators and no clear path to acquiring mobile operations. Part of asset portfolio optimization.

    StarlinkSatellite-backed mobile connectivity enhancement and DTC partnership.

    Provides mobile connectivity backup via satellite, integrated into the 'Unbeatable Network' campaign. Previously announced in Costa Rica, now in Panama and Caribbean.

    CANTVCollaboration on Phoenix submarine cable system.modest investment

    Launching a 378 km submarine cable system with 14 terabytes capacity, enabling direct access to Curacao's market and supporting Venezuela's industries.

    Risks & headwinds

    6
    Hurricane Melissa impactQ2 FY26

    roughly $6 million net across both revenue and adjusted OIBDA

    Mitigation: Recovery continues to progress very well, much improved results expected in Q4.

    Perceived headwinds from Puerto Ricoongoing

    discount to fair value on common stock

    Mitigation: Clear commitment to fund Liberty Puerto Rico through local assets; recent financing activities; management working hard to resolve capital structure issues.

    Elevated competition in postpaidrecent quarters

    somewhat more elevated competition

    Mitigation: Planned and temporary pause for sales channel migration (now back to historic levels); commercial launch of Liberty Starlink to differentiate mobile offering; price increase applied.

    Power outagesongoing

    Frequent power outages

    Mitigation: Unbeatable Network campaign in Puerto Rico with mobile backup to fixed broadband to cement customer stickiness.

    Legacy systems and old codeongoing

    null

    Mitigation: AI-driven IT services deal with Amdocs to transform legacy systems, derisk, and capture cost savings.

    Weather patterns / hurricanesupcoming season

    null

    Mitigation: Fully locked parametric insurance, cost-effective cover similar to prior years; close tracking of weather patterns and meeting with experts.

    What to watch in Q3 FY26

    5

    Jamaica fixed business recovery

    by Q3 FY26
    Currentnot yet back at 100%
    Targetpretty close to 100%

    Why it matters

    Full recovery of Jamaica's fixed business is crucial for overall segment performance and OIBDA run rate post-hurricane.

    Our fixed business continues to -- we continue to rebuild. We are not yet back at 100% on our fixed business, but we anticipate to get pretty close to that.

    Q&A highlights

    9

    How is LLA's Starlink partnership differentiated from the competitive threat it poses to US cable, and how will it evolve?

    Management views Starlink as an add-on to bolster existing products and customer experience, not a wholesale replacement. They highlight unique market conditions, including spectrum availability and LLA's role as a major employer, suggesting markets are more ring-fenced than in other regions.

    “The way we look at this relationship is that it's an add-on to our existing product line. And I think what's unique in our market compared to others is, one, of course, as you pointed out, the spectrum availability. Two, remember, we are literally one of the largest employers in many of the markets that we operate in.”

    asked by Matthew Harrigan · answered by Balan Nair

    2 min read7 chapters

    Detailed Narrative

    01

    AI-Driven Cost Optimization

    Liberty Latin America announced an AI-driven IT services deal with Amdocs, estimated to have an NPV of over $250 million. This agreement aims to drive material OpEx and CapEx reductions, sustain AI investment, and expand OIBDA margins and OIBDA less P&E addition margins in the coming years. The transition is expected to begin in Q4 FY26, with immediate benefits and savings.

    02

    Capital Allocation and Shareholder Returns

    The company completed a $500 million preferred stock distribution, signaling confidence in the business and leaning into a levered equity model. Management continues to view its common equity as undervalued, actively repurchasing over $60 million of stock year-to-date through Q3, with $140 million remaining under authorization. The company also exited Peru as part of its asset portfolio optimization strategy.

    03

    Unbeatable Network Initiative

    A new quality assurance campaign, "Unbeatable Network," is being rolled out across the LLA Group, focusing on fixed network quality and mobile connectivity enhancements. This includes automatic fixed broadband backup to mobile networks during power outages and mobile connectivity backed by satellite through a Starlink DTC partnership, aiming to drive FMC adoption and customer stickiness.

    04

    Panama's Strong Performance and Pricing Actions

    Cable & Wireless Panama reported the highest subscriber additions in Q2, with double-digit postpaid mobile growth and a sharp increase in residential broadband adds. The company successfully initiated postpaid and fixed price increases in July, with positive early feedback indicating lower customer care contact volumes and reduced churn.

    05

    Liberty Networks Strategic Expansion

    Liberty Networks achieved the best year-over-year revenue growth in Q2, driven by wholesale revenue from projects like El Salvador and continued demand for subsea capacity. The company is making modest, value-accretive investments, including the Phoenix submarine cable system in Venezuela, to expand its meshed and resilient network systems and capitalize on geopolitical changes.

    06

    Puerto Rico's Operational Turnaround

    Liberty Puerto Rico showed significant operational improvements, with positive postpaid adds for the third consecutive quarter, robust gross adds, and improved churn. Fixed broadband churn also reduced, and the company achieved two consecutive quarters of positive video net adds, supported by local content and a rate increase. The "Unbeatable Network" campaign is expected to further enhance customer stickiness.

    07

    Jamaica's Post-Hurricane Recovery

    Following Hurricane Melissa, Jamaica's business operations are improving, with mobile business showing enhanced market share and ARPU. While fixed business is not yet at 100% recovery, it is on a good trajectory, and B2B operations are largely back to pre-hurricane levels. The company anticipates much improved results in Q4.

    AI-generated summary of the company’s earnings call. Not investment advice.