Reported revenue growth of 5% to $1.2 billion, 1% higher on a rebased basis

Record mobile postpaid additions of 121,000

>160,000 homes passed or upgraded; 99% fiber-to-the-home

Puerto Rico and Costa Rica integration programs on-track

Acceleration of share buyback activity; >$55 million in quarter

Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q1”) ended March 31, 2022.

CEO Balan Nair commented, “We have made good progress against a number of our key operational objectives in the first quarter. Of note, we delivered record mobile postpaid growth, grew our fixed subscriber base, continued to expand our high-speed networks and progressed business integrations in Puerto Rico and Costa Rica.”

“Our sales initiatives and focus on delivering innovative offerings drove our best ever quarter of mobile postpaid additions with over 120,000 new subscribers. The residential fixed business was led by strong performances in Costa Rica, Puerto Rico and Panama. We continued to see a challenging environment in Chile where we reported net RGU losses over the quarter, however the launch of aggressive new offers in March drove record gross additions in the month.”

“With respect to our inorganic strategy, we continue to make good progress with the integrations of AT&T's Puerto Rico and USVI operations and Telefónica's Costa Rica assets, each of which we expect to drive significant synergies in the coming years. In addition, we are on-track to complete the transactions announced in Panama and Chile during H1 and H2, respectively.”

“Overall, we have had a steady start to the year and anticipate building operational and financial momentum through 2022. We remain confident in our medium-term outlook and accelerated our buyback activity in the first quarter, repurchasing over $55 million of our shares.”

Business Highlights

• C&W Caribbean & Networks: solid financial start to year
  • Record mobile postpaid adds driven by sales initiatives, including converged offerings
  • Reported and rebased Adj. OIBDA growth of 6% and 8%, respectively

• C&W Panama: robust fixed and mobile postpaid operating momentum
  • Fixed RGU adds of 24,000 up 136% YoY
  • Best ever mobile postpaid adds of 28,000

• Liberty Puerto Rico: continued operating momentum; focus on integration
  • Robust fixed adds driven by broadband, significant mobile adds driven by postpaid
  • Integration and synergy realization on-track

• VTR: performance continues to be challenged in LLA's most competitive market
  • Aggressive price plans impacted ARPU; broadly stabilized broadband RGUs in March
  • JV agreed with América Móvil in Phase II of regulatory process, expect completion in H2

• Costa Rica: record fixed and mobile subscriber additions; strong financial performance
  • 100,000 mobile subscribers and 16,000 fixed RGUs added
  • Reported and rebased Adj. OIBDA growth of 114% and 24%, respectively

Additional information, including historic quarterly revenue, adjusted OIBDA, and P&E additions, can be found on our website at https://www.lla.com/investors.

Financial and Operating Highlights

Revenue Highlights

The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Our reported revenue for the three months ended March 31, 2022 increased by 5%.
  • Reported revenue growth in Q1 2022 was driven by (1) $72 million from the acquisition of Telefónica's Costa Rica operations on August 9, 2021, (2) organic growth across C&W Caribbean & Networks and Liberty Puerto Rico, (3) organic declines at VTR and (4) a net foreign exchange (“FX”) impact of $(29) million.

Q1 2022 Revenue Growth – Segment Highlights

• C&W Caribbean & Networks: revenue increased by 4% on a reported basis and 5% on a rebased basis.
  • Fixed residential revenue grew by 4% on a reported basis and 5% on a rebased basis, as compared to the prior-year period. Our performance was driven by volume growth, as new build / upgraded homes and continued residential demand for our products led to strong subscriber additions over the past twelve months.
  • Mobile revenue was 7% higher on a reported basis and 8% on a rebased basis, as compared to the prior-year period. Growth was primarily driven by a higher average number of mobile subscribers, resulting from sales initiatives including converged offerings.
  • B2B revenue was 2% and 4% higher on a reported and rebased basis, respectively, as compared to the prior-year period. Performance was driven by higher project-related revenue, and growth in fixed internet and mobile subscription services. This growth was partly offset by declines in subsea revenue year-over-year as increased demand for telecommunications capacity on our networks was more than offset by a $4 million net negative impact from IRU accelerations, largely in Q1 2021.

• C&W Panama: revenue was flat on a reported and rebased basis.
  • Fixed residential revenue was 9% higher on a reported and rebased basis. Growth was driven by increased subscribers, as we added 75,000 RGUs over the past twelve months, with traction from our high-speed data and video propositions.
  • Mobile revenue decreased by 3% on a reported and rebased basis. The decline was driven by reduced prepaid subscription revenue as growth in subscribers over the last twelve months was more than offset by lower ARPU from prepaid mobile services, mainly attributable to lower recharging activity. This decline was partly offset by strength in postpaid subscription revenue, which was up 25% year-over-year, driven by subscriber growth, mainly due to successfully migrating customers from prepaid to postpaid.
  • B2B revenue was 2% lower on a reported and rebased basis, as growth in fixed and mobile recurring revenue was offset by lower government project-related revenue.

• Liberty Puerto Rico: revenue grew by 2% and 1% on a reported and rebased basis, respectively. Fixed revenue grew strongly, driven by subscriber growth as we added 59,000 RGUs over the last twelve months. This was partly offset by mobile, which was lower overall, as stable subscription revenue was more than offset by a $7 million reduction in equipment revenue and $3 million decline in inbound roaming revenue as compared to the prior-year period.

• VTR: revenue was 19% and 9% lower on a reported and rebased basis, respectively. Competitive pressures have led to declines in ARPU and subscriber levels over the last twelve months, negatively impacting year-over-year performance. Strategic initiatives implemented in the first quarter, including aggressively priced commercial propositions, improved gross subscriber additions, however, also contributed to lower ARPU.

• Costa Rica: revenue grew by 197% and 9% on a reported and rebased basis, respectively. Reported performance benefited from the inclusion of Telefónica's Costa Rica operations in the quarter. The strong rebased growth was driven by increased customers across both our mobile and fixed businesses, year-over-year.

Operating Income

• Operating income was $188 million and $181 million for the three months ended March 31, 2022 and 2021, respectively.
  • We reported higher operating income during Q1 2022, as compared with the corresponding period during 2021, primarily due to a decrease in depreciation and amortization expense as we ceased recording depreciation expense for the Chile JV Entities during the third quarter of 2021 when we began accounting for them as held for sale.

Adjusted OIBDA Highlights

The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Our reported Adjusted OIBDA for the three months ended March 31, 2022 decreased by 2%.
  • Reported Adjusted OIBDA was lower in Q1 2022, driven by an organic decline in VTR. This decline was partially offset by the addition of $17 million contributed by operations acquired from Telefónica in Costa Rica and organic growth at C&W Caribbean & Networks.

Q1 2022 Adjusted OIBDA Growth – Segment Highlights

• C&W Caribbean and Networks: Adjusted OIBDA increased on a reported and rebased basis by 6% and 8%, respectively, driven by the aforementioned rebased revenue growth. Our reported Adjusted OIBDA margin improved by 110 basis points to 43.3% despite increased direct costs mainly due to project-related B2B activity, and a rise in other operating costs and expenses, which were driven in part by higher utility costs.

• C&W Panama: Adjusted OIBDA was 8% lower on a reported and rebased basis. The decline was driven by higher other operating costs and expenses, primarily due to higher commission and staff costs related to sales activities.

• Liberty Puerto Rico: Adjusted OIBDA declined by 4% on a reported and rebased basis. Rebased Adjusted OIBDA was lower as revenue growth was more than offset by increased costs, including costs related to personnel, equipment and integration.

• VTR: Adjusted OIBDA declined on a reported and rebased basis by 34% and 26%, respectively. The rebased decline was driven by the aforementioned decrease in revenue. Direct and other operating costs were broadly flat year-over-year, as savings across a number of areas were offset by: (i) increased programming costs related to higher basic content costs and a settlement associated with a programming contract, and (ii) higher commercial costs, primarily due to the return of the Lollapalooza music festival, which had been postponed for the prior two years. As a result of the aforementioned settlement, we have lowered the costs of our video packages and now have the ability to create skinnier bundles.

• Costa Rica: Adjusted OIBDA grew by 114% and 24%, on a reported and rebased basis, respectively. Reported growth benefited from the inclusion of Telefónica's Costa Rica operations in the quarter. Our rebased performance was impacted by the aforementioned rebased revenue growth and margin improvement driven by the acquired operations, partly offset by $2 million of additional integration costs, as compared to the prior-year period.

Net Earnings Attributable to Shareholders

• Net earnings attributable to shareholders was $84 million and $89 million for the three months ended March 31, 2022 and 2021, respectively.

Property & Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures.

Summary of Debt, Finance Lease Obligations and Cash and Cash Equivalents

The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at March 31, 2022:

Quarterly Subscriber Variance

ARPU per Customer Relationship

The following table provides ARPU per customer relationship for the indicated periods:

Mobile ARPU

The following table provides ARPU per mobile subscriber for the indicated periods:

Forward-Looking Statements and Disclaimer

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, performance, guidance and growth expectations for 2022; our digital strategy, product innovation and commercial plans and projects; expectations on demand for connectivity in the region; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the AT&T Acquisition and in Costa Rica following the acquisition of Telefónica's Costa Rica business; the timing and impact of the acquisition of América Móvil’s Panama operations and the formation of a joint venture with América Móvil in Chile; the strength of our balance sheet and tenor of our debt; our share repurchase program; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events and efforts to contain any pandemic, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy conditions associated with acquisitions and dispositions, including the acquisition of América Móvil’s Panama operations and the formation of a joint venture with América Móvil in Chile; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About Liberty Latin America

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, and Cabletica. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region.

Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).

For more information, please visit www.lla.com.

Footnotes

Additional Information | Cable & Wireless Borrowing Group

The following tables reflect preliminary unaudited selected financial results, on a consolidated C&W basis, for the periods indicated, in accordance with U.S. GAAP.

The following table details the U.S. dollar equivalent of the nominal amount outstanding of C&W's third-party debt, finance lease obligations and cash and cash equivalents:

• At March 31, 2022, our third-party total and proportionate net debt was $3.7 billion and $3.6 billion, respectively, our Fully-swapped Borrowing Cost was 5.1%, and the average tenor of our debt obligations (excluding vendor financing) was approximately 5.9 years.

• Our portion of Adjusted OIBDA, after deducting the noncontrolling interests' share, (“Proportionate Adjusted OIBDA”) was $200 million for Q1 2022.

• Based on Q1 results, our Proportionate Net Leverage Ratio was 4.1x, calculated in accordance with C&W's Credit Agreement. At March 31, 2022, we had maximum undrawn commitments of $795 million, including $165 million under our regional facilities. At March 31, 2022, the full amount of unused borrowing capacity under our credit facilities (including regional facilities) was available to be borrowed, both before and after completion of the March 31, 2022 compliance reporting requirements.

   

Liberty Puerto Rico (LPR) Borrowing Group

The following table details the nominal amount outstanding of Liberty Puerto Rico's debt, finance lease obligations and cash and cash equivalents:

• At March 31, 2022, our Fully-swapped Borrowing Cost was 6.0% and the average tenor of debt was approximately 6.3 years.

• Based on our results for Q1 2022, and subject to the completion of the corresponding compliance reporting requirements, our Consolidated Net Leverage Ratio was 4.1x, calculated in accordance with LPR’s Group Credit Agreement.

• At March 31, 2022, we had maximum undrawn commitments of $173 million. At March 31, 2022, the full amount of unused borrowing capacity under our revolving credit facility was available to be borrowed, both before and after completion of the March 31, 2022 compliance reporting requirements.

   

VTR Borrowing Group

The following table details the borrowing currency and Chilean peso equivalent of the nominal amount outstanding of VTR's debt and cash and cash equivalents:

• At March 31, 2022, our Fully-swapped Borrowing Cost was 7.2% and the average tenor of debt (excluding vendor financing) was approximately 6.3 years.

• Based on our results for Q1 2022, and subject to the completion of the corresponding compliance reporting requirements, our Consolidated Net Leverage ratio was 6.9x, calculated in accordance with the indenture governing the 6.375% USD Senior Notes due 2028.

• At March 31, 2022, we had maximum undrawn commitments of $200 million (CLP 157 billion) and CLP 45 billion. At March 31, 2022, the full amount of unused borrowing capacity under our credit facilities was available to be borrowed, both before and after completion of the March 31, 2022 compliance reporting requirements.

   

Costa Rica Borrowing Group

The following table details the borrowing currency and Costa Rican colón equivalent of the nominal amount outstanding of Costa Rica's third-party debt and cash and cash equivalents:

Subscriber Table

Glossary

Adjusted OIBDA Margin – Calculated by dividing Adjusted OIBDA by total revenue for the applicable period.

ARPU – Average revenue per unit refers to the average monthly subscription revenue (subscription revenue excludes interconnect, mobile handset sales and late fees) per average customer relationship or mobile subscriber, as applicable. ARPU per average customer relationship is calculated by dividing the average monthly subscription revenue from residential fixed and SOHO fixed services by the average of the opening and closing balances for customer relationships for the indicated period. ARPU per average mobile subscriber is calculated by dividing the average monthly mobile service revenue by the average of the opening and closing balances for mobile subscribers for the indicated period. Unless otherwise indicated, ARPU per customer relationship or mobile subscriber is not adjusted for currency impacts. ARPU per average RGU is calculated by dividing the average monthly subscription revenue from the applicable residential fixed service by the average of the opening and closing balances of the applicable RGUs for the indicated period. Unless otherwise noted, ARPU in this release is considered to be ARPU per average customer relationship or mobile subscriber, as applicable. Customer relationships, mobile subscribers and RGUs of entities acquired during the period are normalized.

Consolidated Debt and Finance Lease Obligations to Operating Income Ratio – Defined as total principal amount of debt and finance lease obligations outstanding to annualized operating income from the most recent two consecutive fiscal quarters.

Consolidated Net Debt and Finance Lease Obligations to Operating Income Ratio – Defined as total principal amount of debt and finance lease obligations outstanding less cash and cash equivalents to annualized operating income from the most recent two consecutive fiscal quarters.

Consolidated Net Leverage Ratio (VTR) – Defined in accordance with VTR's indenture for its senior notes, taking into account the ratio of its outstanding indebtedness (including the impact of its cross-currency swaps) less its cash and cash equivalents to its annualized EBITDA from the most recent two consecutive fiscal quarters.