Liberty Puerto Rico sees 12% Y-O-Y revenue drop in ’24
A lower mobile subscriber count and reduced equipment sales contributed to the decline.
Liberty Puerto Rico reported a 12% decrease in revenue for 2024 to $1.26 billion from the $1.41 billion reported in 2023, which it attributed to a reduction in mobile subscribers due to the migration process of the former AT&T network and decreased equipment sales.
Liberty Latin America Ltd. (LLA), parent of Liberty Puerto Rico, released its financial and operational results for the fourth quarter and full year of 2024, highlighting significant challenges and strategic initiatives within its Puerto Rico operations.
In 2024, Liberty Puerto Rico faced substantial hurdles, primarily due to the migration from AT&T’s platforms. Residential fixed revenue decreased by 4%, influenced by retention-related discounts and credits issued to customers following Hurricane Ernesto in August.
Residential mobile revenue saw a 20% reduction during the full year, attributed to a decrease in mobile subscribers during the migration and lower equipment sales due to promotional activity.
The business-to-business (B2B) segment experienced a 5% revenue decline, primarily due to the cancellation of the Federal Communications Commission’s Emergency Connectivity Fund, resulting in a loss of 61,000 mobile postpaid subscribers over the year, according to the full-year report. There was also a drop in subscribers related to migration challenges and associated credits issued for billing adjustments.
“In Puerto Rico, we had a challenging year as we completed our migration from AT&T’s platforms, and we now aim to pivot to a growth trajectory for this business,” said Balan Nair, CEO of Liberty Latin America.
“Despite these setbacks, the company remains committed to revitalizing its Puerto Rican operations,” he said.
To counteract the operational difficulties, Liberty Puerto Rico has invested heavily in upgrading its infrastructure. By the end of 2024, 97% of its fixed networks could deliver speeds of at least 1 gigabit per second (Gbps), a significant increase from approximately 80% at the end of 2023. This enhancement positions the company to offer competitive high-speed internet services across the island.
The company also expanded its mobile coverage and capacity through network upgrades and selective spectrum acquisitions, including EchoStar’s Puerto Rico and U.S. Virgin Islands prepaid mobile customer base on Sept. 3, which contributed $10 million of revenue in each of the current and corresponding prior-year quarters.
As of Dec. 31, Liberty Puerto Rico served 834,800 mobile subscribers, 550,100 internet subscribers and 275,400 telephone subscribers. The company employs approximately 2,000 people islandwide.
While Puerto Rico’s results seemed to pull down the company, other subsidiaries — Liberty Costa Rica, Cable & Wireless Caribbean and Cable & Wireless Panama — offset the losses with organic operational growth, the report stated.
“Looking ahead to 2025, we are positioned for a positive year and continue to see a path to achieving our previously announced three-year guidance targets for Adjusted OIBDA [operating income before depreciation and amortization] and Adjusted FCF [free cash flow],” said Nair.”
The company plans to continue its investments in network infrastructure and customer service improvements, aiming to restore growth and enhance customer satisfaction in Puerto Rico, he said.
Last week, local officials declined reports of ongoing negotiations with Verizon and Comcast for a possible sale of the Puerto Rico operation.
4th quarter also showed decline
During the fourth quarter ended Dec. 31, Liberty Puerto Rico reported $316.5 million in revenue, down 10% from the $353.5 million on record for the same year-ago quarter.
The subsidiary reported $79.9 million in OIBDA for the quarter, down 23% from the $103.9 million on record for the same three-month period in 2023.
“The performance was driven primarily by the impact of our aforementioned revenue decline, partly offset by the net impact of lower operating costs and expenses due to the termination of our TSA [transitional service agreement] with AT&T following migration, increased bad debt charges largely related to equipment installment programs and lower staff costs due to efficiency programs,” the company stated.
