Liberty Latin America plans separation of Puerto Rico, USVI operations
Liberty Latin America said it will separate its operations in Puerto Rico and the U.S. Virgin Islands from the broader group, citing strong local performance and a long-term strategy to improve capital structure and unlock shareholder value.
“This effort is aimed at further strengthening our operations through an optimized capital structure that will support our growth and ability to invest over time,” said Giovanna Ramírez de Arellano, senior director of communications and corporate responsibility.
She said the process “will take time, can take many forms, and most importantly to note, is that there will be no disruptions to our business operations or services.”
In the second quarter of 2025, Liberty Puerto Rico reported adjusted operating income before depreciation and amortization (OIBDA) of $87 million, a 22% year-over-year increase (21% on a rebased basis). For the first half of the year, adjusted OIBDA reached $168.5 million, up 20% from the same period in 2024.
The company’s revenue in Puerto Rico declined 5% on a rebased basis in the second quarter to $301.3 million. Liberty attributed the growth in earnings to reduced staffing levels, lower professional services costs and the phaseout of expenses tied to the integration of former AT&T operations.
“Our second quarter results in Puerto Rico and USVI continue to show that we are moving the business in the right direction,” Ramírez de Arellano said. “Our mobile base is stabilizing and our disciplined approach to cost management helped us to deliver a 21% increase in adjusted OIBDA compared to the same quarter last year.”
Customer satisfaction indicators also improved. The region’s mobile net promoter score rose by 54 points compared to the previous year, and postpaid churn, or the rate at which customers cancel their service, declined for the fourth straight quarter. Liberty launched its new Liberty Mix postpaid value offering in July, which it expects will further support customer retention.
Ramírez de Arellano said the company remains committed to its local markets.
“We have made significant investments in Puerto Rico and USVI and have been part of the community for over 20 years,” she said. “With many key operating metrics moving in the right direction, we remain deeply committed to our employees, our communities, and to delivering the products, services and customer experience that our customers expect from us.”
Spin-off to unlock shareholder value
Liberty Latin America CEO Balan Nair said the planned separation is part of a broader strategy to better reflect the value of each operating unit.
“Today, at LLA, we believe our share price is not reflective of our growth potential or the value of our underlying businesses,” Nair said. “In order to unlock this value for our shareholders, we intend to separate Liberty Puerto Rico from LLA, which could take one of many forms, including a spin-off.”
Nair said the company is working to ensure Liberty Puerto Rico has a sustainable capital structure and noted that it may raise additional capital using its own assets. No timeline was provided for the separation.
Regional operations post gains
Liberty Latin America reported consolidated adjusted OIBDA of $415 million in the second quarter, a 7% increase from a year earlier. For the first half of 2025, total adjusted OIBDA rose 8% to $822 million.
Liberty Caribbean posted 11% rebased adjusted OIBDA growth, while C&W Panama reported a 6% increase. Adjusted OIBDA for Liberty Costa Rica remained flat on a rebased basis, though the company noted gains in postpaid mobile revenue.
“We added approximately 45,000 net organic broadband and postpaid additions across Liberty Caribbean, C&W Panama and Liberty Costa Rica, taking [first-half] additions to just over 100,000 for these operating segments,” Nair said.
Following the separation, Nair said the remaining operating units — Cable & Wireless and Liberty Costa Rica — will operate with “a much less levered balance sheet” and greater cash generation potential.
“This should support an attractive capital return policy via recurring dividend and/or stock repurchases,” he said.
