Liberty Puerto Rico reports 12% revenue drop in Q3 to $308M
Liberty Latin America CEO Balan Nair highlighted the local operation’s sequential growth in OIBDA.
Liberty Puerto Rico reported a 12% year-over-year revenue drop to $308.2 million for the third quarter ending Sept. 30, compared to $351.2 million for the same period in 2023. The company cited competitive pressures and retention-related discounts.
The rebased comparison includes the acquisition of Echostar’s Puerto Rico and U.S. Virgin Island prepaid mobile customer base on Sept. 3, which contributed $3 million in revenue in both the current and prior quarters, the report showed.
Parent company Liberty Latin America released the numbers, reporting an 11% revenue drop for the nine-month period ending in September, with $944 million reported versus $1.06 million for the same period in 2023.
Liberty Latin America CEO Balan Nair highlighted the local operation’s sequential growth in adjusted operating income before depreciation and amortization (OIBDA). The report shows that for the three months ended Sept. 30, the company shored up $88.2 million in OIBDA.
“Importantly, we grew Adjusted OIBDA in Puerto Rico sequentially in the third quarter; however, churn from the migration was higher than anticipated. We are seeing improved sales and customer sentiment. Our operating team is focused on the customer and growing our business back,” Nair said.
He added that OIBDA growth is expected in the fourth quarter, “but at this point, and given that the recovery is taking longer than previously anticipated, we no longer expect to achieve a monthly Adjusted OIBDA of $45 million” by the end of the year.
“As we look to 2025, the completion of our acquisition of spectrum and prepaid subscribers from Echostar will further underpin our growth prospects,” Nair noted.
In September, Liberty Puerto Rico introduced its LOOP, aiming to enhance customer experience and net promoter score.
Residential fixed revenue dropped by 4% year-over-year, on both a reported and rebased basis, primarily due to lower ARPU caused by retention-related discounts. The year-over-year decline also includes the impact of credits issued to customers following Hurricane Ernesto, which impacted Puerto Rico in August.
Meanwhile, the company reported a loss of 45,900 mobile subscribers as of September, compared to the quarter ended June 30, “impacted by disruption related to the migration of customers to our mobile network, and lower equipment sales due to the reduced customer base and higher volumes related to the iPhone 15 launch in 2023 as compared to the iPhone 16 launch in 2024,” the company stated.
The company’s business-to-business (B2B) revenue declined by 5% year-over-year, on both a reported and rebased basis, “primarily reflecting the cancellation of the Federal Communications Commission’s Emergency Connectivity Fund (ECF) which led to a reduction of 74,000 mobile postpaid [subscribers] over the past year, as well as a reduction in subscribers related to migration,” it noted.
Looking ahead to the fourth quarter, Nair said the company plans “to deliver a strong performance driven by B2B growth and further progress in the recovery of our Puerto Rican operations, and we aim to produce our strongest quarter in cash flow generation this year.”
