Liberty Puerto Rico reports $353M in revenue in Q4, $1.4B for 2023
Liberty Puerto Rico, the internet, television and wireless services provider, reported $353.5 million in revenue for the fourth quarter of 2023, a slight decrease from the $372.2 million recorded in the same period in 2022. For the year ending Dec. 31, 2023, the company reported revenue of $1.41 billion, a 3% decrease from the $1.46 billion reported in 2022.
In its most recent quarterly report, Liberty Puerto Rico, which is a subsidiary of Liberty Latin America (LLA), confirmed that it had successfully migrated 800,000 customers to its mobile platform following the acquisition of AT&T’s assets, which included about 1 million wireless subscribers, whom it is still moving over to its network, and has caused service disruptions in some instances.
“In addition to our significant organic opportunities, completing the migration of mobile customers in Puerto Rico and the [U.S. Virgin Islands] is expected to be a key driver of LLA’s future growth,” said Balan Nair, LLA’s chief executive officer.
“We are on-track to achieve this goal by the end of April, enabling us to conclude our [transaction] with AT&T by the end of June, which will create significant cost savings and allow us to drive our mobile business more effectively, removing restrictions that currently impact our commercial flexibility,” said Nair.
The Puerto Rico Telecommunications Bureau initiated an investigation into the migration process in November, leading to a hearing this week during which Liberty has been asked to provide a progress update.
“The migration process has been progressing over time and we’re now finishing. Like any transition and new system, we acknowledge that there have been and will be challenges and we thank customers for their cooperation and trust,” Giovanna Ramírez de Arellano, senior director of Communications and Corporate Social Responsibility, said in a statement last week.
“We regret any inconvenience our customers have experienced or are experiencing and remember that this transition is temporary. Once completed, it will provide permanent improvements and give us the flexibility to offer rates, promotions and policies tailored to consumers in Puerto Rico,” she added.
Liberty Puerto Rico also reported an increase of 23,000 broadband subscribers in 2023, contributing to a 5% growth in residential fixed revenue.
However, “residential mobile revenue was 11% lower compared to the prior-year period. This was driven by: reduced equipment sales due in part to migration activities, a decline in the average number of prepaid mobile subscribers as compared to the prior year period, and lower roaming revenue,” the company stated.
“Other revenue declined by $3 million as compared to the prior-year quarter due to a reduction in revenue recognized on funds received from the Federal Communications Commission,” it stated.
Operating income before depreciation and amortization (OIBDA) for the quarter ended Dec. 31 was $103.9 million, a 12% decrease from the $117.6 million reported in the same quarter of the previous year. The full year OIBDA for 2023 was $485.5 million, down 9% from $530.8 million for 2022.
“The performance was driven by the net impact of our aforementioned revenue decline, lower direct costs, primarily due to lower gross sales, and higher other operating costs mainly related to migration and integration activities, year-over-year,” according to the earnings report.
The final quarter of 2023 saw the unexpected departure of Naji Khoury, Liberty Puerto Rico’s CEO of 14 years. His successor is Eduardo Díaz-Corona, a seasoned professional with 30 years of experience in the telecommunications industry across Latin America, Europe, and the United States.
