Liberty Latin America (LLA), the communications group which owns and operates Cable & Wireless (C& W) businesses in Barbados and the Caribbean, is reporting increased revenue and income from the region during the recently-ended 2024 financial year.
With the bulk of its earnings coming from C& W Caribbean, LLA president and chief executive officer (CEO) Balan Nair says he is “eternally optimistic” about the subsidiary’s prospects this year.
Nair said in an earnings conference call last Thursday that “the Caribbean Islands . . . from way back when we bought this [business] have never achieved its full potential”, but he said LLA management now sees signs that this is changing.
Based on LLA’s financials for the year ended December 31, the group’s 2024 revenue was US$4.45 billion, most of it – US$1.5 billion – contributed by C& W Caribbean.
8.05b mobile subscribers
Overall adjusted operating income before depreciation and amortisation (OIBDA) was US$1.6 billion last year, the majority of it coming from C& W Caribbean’s US$633.3 million.
In addition to Barbados, the C& W Caribbean segment’s main operations are in The Bahamas, Jamaica and Trinidad and Tobago.
At the end of last year, LLA had 3.98 billion revenue generating units (RGUs) and 8.05 billion total mobile subscribers. The data for Barbados shows that at December 31, C& W had 185 200 RGUs here – comprised of 38 300 (video), 79 700 (Internet), and 67 200 (telephony).
C& W, which trades as Flow in this market, has 85 500 fixed line customer relationships in Barbados at the end of the financial year, the financial report outlined, while its total mobile subscribers in Barbados were 133 700 – 78 800 prepaid customers and 54 900 postpaid subscribers.
Nair said during the earnings call with financial experts that C& W Caribbean “delivered operating momentum in mobile postpaid and strong financial execution”.
“Full year 2024 broadband adds were negatively impacted by Hurricane Beryl primarily in Jamaica. In quarter three, we saw the immediate impact of the storm with 16 000 broadband losses,” he reported.
“And in quarter four, we lost a further 11 000 broadband RGUs mainly
related to the disconnection of non-paying customers. Adjusting for this event, we would have added 7 000 broadband subscribers in quarter four and 18 000 for the year.
“In mobile, our positive postpaid performance continued in quarter four, with 43 000 net adds in 2024. Our postpaid base increased by 14 per cent year-over-year driven by Jamaica.”
Nair said that C& W Caribbean’s revenue was well diversified “with business-to-business and consumer fixed, the largest elements followed by consumer mobile”.
“In our Caribbean markets, the operating environment is constructive as we primarily compete in duopolies, where we are often the leading player. Rebased revenue grew two per cent year-over-year, driven by double-digit growth in postpaid revenue and supported by successful price increases in fixed and mobile across our main markets,” he said.
Strong operational year
“Overall, 2024 was a strong operational year for C& W Caribbean, with cost efficiencies driving nearly 200 basis points of margin expansion. We expect operational leverage to continue to be a focus and driver of adjusted OIBDA growth in 2025.”
Nair said C& W Caribbean “has more than exceeded the potential that we even thought there”.
The CEO added: “Our management team there is doing a great job. The flywheel is great. And if you look at the string of competitors that compete with us, many of them have challenges, some of them have gone bankrupt, some of them are no longer in business.
“We are strong. We know what we’re doing. We had a hiccup in Puerto Rico. We’re going to fix it. And ‘25 is when we are going to show you that we will fix it. And I am eternally optimistic about this business.”
LLA senior vice-president and chief financial officer Chris Noyes said C& W Caribbean’s in the fourth quarter alone was US$371 million, “reflecting two per cent year-over-year rebased growth”.
Adjusted OIBDA expanded in the fourth quarter was US$168 million, a six per cent increase over the previous year’s fourth quarter. (SC)
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