Record mobile and solid fixed additions in year

FY 2021 double-digit revenue growth driven by acquisitions, 4% rebased growth

~750,000 homes passed or upgraded in 2021; 99% fiber-to-the-home

Delivered 2021 guidance for all financial and operating metrics

Strategic acquisitions with significant synergies to enhance future performance

Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q4”) and fiscal year (“FY”) ended December 31, 2021.

CEO Balan Nair commented, “The fourth quarter concluded a successful year for LLA. Despite continuing impacts from the pandemic and competitive challenges in Chile, we had strong operational performance across the rest of the group. We also made progress with the integration of our acquisitions in Puerto Rico and Costa Rica, and successfully delivered against our 2021 guidance targets.”

“High-speed connectivity is at the core of our customer offering and we invested to expand and improve our networks during the year. We added or upgraded approximately 750,000 homes passed across our operations, almost exclusively using fiber-to-the-home technology. Combining our network strength with attractive consumer propositions, we added more than 250,000 RGUs, which was over 50% higher than in the prior year. Our mobile operations delivered a particularly strong performance bolstered by the inclusion of the business we acquired in Costa Rica, as we added nearly 500,000 subscribers in 2021, of which over 25% were postpaid.”

“Our B2B operations continued to recover during the year as we utilized our high-speed and reliable subsea, terrestrial and mobile networks combined with innovative product offerings to deliver effective solutions for our customers.”

“LLA reported $4.8 billion in revenue, $81 million of operating income and $1.8 billion in Adjusted OIBDA in 2021. We grew our cash flow from operations and Adjusted Free Cash Flow during the year to $1.0 billion and $200 million, respectively, delivering our Adjusted Free Cash Flow guidance. We also increased our share repurchase activity, with $65 million spent in 2021, and today we are announcing a new program to buyback up to $200 million.”

“Overall, we were pleased with our robust operational execution and financial performance in 2021. As we look ahead to 2022, we intend to deliver further operational enhancements and financial growth, continue to progress the integrations in Puerto Rico and Costa Rica, and successfully complete the accretive transactions announced in Panama and Chile. We remain focused on driving Adjusted Free Cash Flow for the group and we are confident that the operational and strategic actions we are taking will enable a multi-year growth trajectory.”

Business Highlights

• C&W Caribbean & Networks: operating momentum drives strong 2021 performance
  • Record year for both fixed and mobile subscriber additions driven by Jamaica
  • FY reported and rebased Adj. OIBDA growth of 5% and 6%, respectively

• C&W Panama: strong operating and financial results; recovery from COVID-19
  • Operating momentum with mobile subscribers up 17% and fixed RGUs up 15% in 2021
  • FY reported and rebased Adj. OIBDA growth of 13% and 14%, respectively

• Liberty Puerto Rico: solid fixed and mobile postpaid momentum; integration on-track
  • Continued fixed subscriber adds driven by broadband; mobile postpaid base growing
  • Strong reported and rebased Adj. OIBDA growth in FY 2021

• VTR: performance continues to be challenged in LLA's most competitive market
  • Continuing to invest, added 400,000 new build / upgraded homes passed in the year
  • 50/50 JV agreed with América Móvil expected to complete in H2 2022

• Costa Rica: strong start for recently acquired mobile operations; record fixed additions
  • Over 100,000 mobile subscribers added in Q4
  • Record quarterly fixed RGU additions of 15,000 driven by broadband

LLA 2022 Financial Guidance

• P&E additions as a percentage of revenue at ~18%
• Adding or upgrading ~600,000 homes passed
• Adjusted FCF guidance of ~$250 million; ~25% YoY reported growth

Share Repurchase Program

On March 16, 2020, our Directors approved a share repurchase program that authorized us to repurchase from time to time up to $100 million of our Class A common shares and/or Class C common shares through March 2022. As at market close on February 18, 2022, the remaining amount authorized for share repurchases was approximately $2 million.

On February 22, 2022, our Board of Directors approved a new share repurchase program. The program authorizes us to repurchase from time to time up to an additional $200 million of our Class A common shares and/or Class C common shares through December 2024.

Additional information, including historic quarterly revenue, adjusted OIBDA, and P&E additions under our updated reporting segments, can be found on our website at https://www.lla.com/investors.

Financial and Operating Highlights

Revenue Highlights

The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Our reported revenue for the quarter and year ended December 31, 2021 increased by 17% and 27%, respectively.
  • Reported revenue growth in Q4 2021 and FY 2021 was driven by (1) the addition of $80 million and $788 million, respectively, from Liberty Mobile, which was acquired on October 31, 2020, (2) $71 million and $112 million, respectively, from the acquisition of Telefónica's Costa Rica operations on August 9, 2021, (3) organic growth across C&W Caribbean & Networks, Liberty Puerto Rico, C&W Panama, and Costa Rica, (4) organic declines at VTR and (5) for Q4 2021, a net foreign exchange (“FX”) impact of $(24) million.

Q4 2021 Revenue Growth – Segment Highlights

• C&W Caribbean & Networks: revenue increased by 6% on a reported basis and 7% on a rebased basis.
  • B2B revenue was 7% and 8% higher on a reported and rebased basis, respectively, as compared to the prior-year period. Performance was driven by the renegotiation of customer contracts recognized during 2021, increased non-recurring revenue and growth in revenue from fixed and mobile B2B services, as economic activity continues to steadily recover.
  • Fixed residential revenue grew 2% on a reported basis and 4% on a rebased basis as compared to the prior-year period. Our performance was driven by volume growth as new build / upgraded homes and continued residential demand for our products led to strong subscriber additions. Within the segment, Jamaica was once again the largest contributor, adding 27,000 RGUs in the quarter and 99,000 RGUs over the past twelve months.
  • Mobile continued to recover, as revenue was 8% higher on a reported basis and 10% on a rebased basis, as compared to the prior-year period. Growth was driven by increased inbound roaming activity, primarily due to the general relaxing of travel restrictions, and a higher average numbers of mobile subscribers, mostly due to sales initiatives, including converged offerings.

• C&W Panama: revenue increased by 29% on a reported basis and 30% on a rebased basis.
  • B2B revenue was 65% higher on a reported and rebased basis, primarily due to increased non-recurring revenue related to long-term government-related projects, some of which were put on hold during 2020 due to the impact of COVID-19.
  • Fixed residential revenue was 3% and 7% higher on a reported and rebased basis, respectively. Growth was driven by increased subscriber numbers, as we added 62,000 RGUs over the past twelve months, with traction from our high-speed data propositions.
  • Mobile revenue was in-line on a reported and rebased basis compared to the prior-year period. Subscription revenue was slightly lower year-over-year as growth in prepaid and postpaid subscribers was more than offset by lower prepaid ARPU. Non-subscription revenue grew year-over-year due to higher volumes of handset sales and an increase in inbound roaming as travel restrictions related to COVID-19 were relaxed.

• Liberty Puerto Rico: revenue grew by 27% and 2% on a reported and rebased basis, respectively. Reported growth benefited from the full inclusion of Liberty Mobile in Q4 2021, whereas it was only included for two months in the prior year quarter. Residential revenue was higher, year-over-year on a rebased basis. This was driven by subscriber growth in our fixed operations where we added 72,000 RGUs over the last twelve months, partly offset by mobile consumer revenue, which was lower overall, as higher subscription revenue was more than offset by reduced equipment sales. B2B revenue declined on a rebased basis as we aligned pricing across our fixed-line products.

• VTR: revenue was 16% and 8% lower on a reported and rebased basis, respectively. Competitive pressures have led to declines in ARPU and subscribers levels over the last twelve months, negatively impacting year-over-year performance.

• Costa Rica: revenue grew by 192% and 10% on a reported and rebased basis, respectively. Reported performance benefited from the inclusion of Telefónica's Costa Rica operations in the quarter. The strong rebased growth was driven by increased customers across both our mobile and fixed businesses and higher handset sales, year-over-year.

Operating Income (Loss)

• Operating income (loss) was $(412) million and $100 million for the three months ended December 31, 2021 and 2020, respectively, and $81 million and $93 million for the year ended December 31, 2021 and 2020, respectively.
  • We reported an operating loss during the three months ended December 31, 2021, compared with operating income during the corresponding period in 2020. The 2021 period included goodwill impairments, the negative impact of which was slightly offset by an increase in Adjusted OIBDA and lower depreciation and amortization expense.
  • We reported lower operating income during the year ended December 31, 2021, as compared with the prior year, primarily due to the net effect of (i) higher Adjusted OIBDA, as further discussed below, (ii) higher goodwill impairments, and (iii) increases in depreciation, amortization and stock-based compensation expense.

Adjusted OIBDA Highlights

The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated, and (ii) the percentage change from period-to-period on both a reported and rebased basis:

• Our reported Adjusted OIBDA for the quarter and year ended December 31, 2021 increased by 10% and 23%, respectively.
  • Reported Adjusted OIBDA increases in Q4 2021 and FY 2021 were largely driven by (1) the addition of $28 million and $289 million, respectively, contributed by Liberty Mobile, (2) the addition of $17 million and $29 million, respectively, contributed by operations acquired from Telefónica in Costa Rica and (3) organic growth in C&W Caribbean & Networks and C&W Panama for both periods and in Liberty Puerto Rico for FY 2021. These increases were partially offset by declines in VTR.

Q4 2021 Adjusted OIBDA Growth – Segment Highlights

• C&W Caribbean and Networks: Adjusted OIBDA increased on a reported and rebased basis by 8% and 9%, respectively. Performance was driven by the aforementioned rebased revenue growth and management of other operating costs and expenses as our reported Adjusted OIBDA margin improved by 70 basis points to 43.3%.

• C&W Panama: Adjusted OIBDA was higher on a reported and rebased basis by 22% and 24%, respectively. Rebased growth was driven by the increase in rebased revenue. While other operating costs and expenses were lower year-over-year, the aforementioned revenue growth drove higher direct costs related to B2B equipment and mobile handsets.

• Liberty Puerto Rico: Adjusted OIBDA grew on a reported and rebased basis by 22% and 1%, respectively. Reported growth was driven by the full inclusion of Liberty Mobile in Q4 2021, whereas it was only included for two months in the prior year quarter. Rebased Adjusted OIBDA was higher as revenue growth was partly offset by the net impact of higher mobile roaming expenses, integration costs related to the Liberty Mobile acquisition, video programming costs, and labor costs; and lower mobile handset costs.

• VTR: Adjusted OIBDA declined on a reported and rebased basis by 26% and 20%, respectively. The rebased decline was driven by the aforementioned revenue decline. Direct and other operating costs were lower overall year-over-year however these savings did not significantly benefit our Adjusted OIBDA margin as savings across most categories were partly offset by higher programming expenses and network costs driven by higher truck rolls.

• Costa Rica: Adjusted OIBDA grew by 101% and 1%, on a reported and rebased basis, respectively. Reported growth benefited from the inclusion of Telefónica's Costa Rica operations in the quarter. Our rebased performance was impacted by higher equipment costs due to increased handset sales, integration costs in the current year period, and increased commission expenses due to customer additions.

Net Loss Attributable to Shareholders

• Net loss attributable to shareholders was $620 million and $30 million for the three months ended December 31, 2021 and 2020, respectively, and $440 million and $682 million for the year ended December 31, 2021 and 2020, respectively.

Property & Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures.

Summary of Debt, Finance Lease Obligations and Cash and Cash Equivalents

The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash and cash equivalents at December 31, 2021:

Quarterly Subscriber Variance

ARPU per Customer Relationship

The following table provides ARPU per customer relationship for the indicated periods:

Mobile ARPU

The following table provides ARPU per mobile subscriber for the indicated periods:

Forward-Looking Statements and Disclaimer

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities and objectives, performance and guidance, growth expectations, and Adjusted Free Cash Flow expectations for 2022; expected new build and upgrade activity in 2022 and estimated P&E additions as a percent of revenue; our digital strategy, product innovation and commercial plans and projects; expectations on demand for connectivity in the region; our anticipated integration plans, synergies, opportunities and integration costs in Puerto Rico following the AT&T Acquisition and in Costa Rica following the acquisition of Telefónica's Costa Rica business; the timing and impact of the acquisition of América Móvil’s Panama operations and the formation of a joint venture with América Móvil in Chile; the strength of our balance sheet and tenor of our debt; our share repurchase program; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events and efforts to contain any pandemic, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy conditions associated with acquisitions and dispositions, including the acquisition of América Móvil’s Panama operations and the formation of a joint venture with América Móvil in Chile; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K. These forward-looking statements speak only as of the date of this press release. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About Liberty Latin America

Liberty Latin America is a leading communications company operating in over 20 countries across Latin America and the Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil, BTC, and Cabletica. The communications and entertainment services that we offer to our residential and business customers in the region include digital video, broadband internet, telephony and mobile services. Our business products and services include enterprise-grade connectivity, data center, hosting and managed solutions, as well as information technology solutions with customers ranging from small and medium enterprises to international companies and governmental agencies. In addition, Liberty Latin America operates a subsea and terrestrial fiber optic cable network that connects approximately 40 markets in the region.

Liberty Latin America has three separate classes of common shares, which are traded on the NASDAQ Global Select Market under the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC link under the symbol “LILAB” (Class B).

For more information, please visit www.lla.com.

Footnotes

Additional Information | Cable & Wireless Borrowing Group

The following tables reflect preliminary unaudited selected financial results, on a consolidated C&W basis, for the periods indicated, in accordance with U.S. GAAP.

The following table details the U.S. dollar equivalent of the nominal amount outstanding of C&W's third-party debt, finance lease obligations and cash and cash equivalents:

• In October 2021, we entered into a new $590 million term loan facility with an interest rate of LIBOR plus 3.0%, due in 2029 (the C&W Term Loan B-6 Facility). The net proceeds from the C&W Term Loan B-6 Facility were primarily used to (i) redeem in full, $500 million of aggregate principal amount under the 2026 C&W Senior Notes at a redemption price of 103.75% and (ii) redeem $55 million of aggregate principal amount under the 2027 C&W Senior Secured Notes at a redemption price of 103%.

• At December 31, 2021, our third-party total and proportionate net debt was $3.7 billion and $3.5 billion, respectively, our Fully-swapped Borrowing Cost was 5.1%, and the average tenor of our debt obligations (excluding vendor financing) was approximately 5.9 years.

• Our portion of Adjusted OIBDA, after deducting the noncontrolling interests' share, (“Proportionate Adjusted OIBDA”) was $216 million for Q4 2021 and $802 million for FY 2021.

• Based on Q4 results, our Proportionate Net Leverage Ratio was 4.2x, calculated in accordance with C&W's Credit Agreement. At December 31, 2021, we had maximum undrawn commitments of $779 million, including $149 million under our regional facilities. At December 31, 2021, the full amount of unused borrowing capacity under our credit facilities (including regional facilities) was available to be borrowed, both before and after completion of the December 31, 2021 compliance reporting requirements.

Liberty Puerto Rico (LPR) Borrowing Group

The following table details the nominal amount outstanding of Liberty Puerto Rico's debt, finance lease obligations and cash and cash equivalents:

• In December 2021, we borrowed an additional $120 million under the existing term loan facility due in 2028 (the 2028 LPR Term Loan B-2). The net proceeds, together with cash on hand, were used to redeem $129 million of aggregate principal amount under the 2027 LPR Senior Secured Notes at a redemption price of 103%.

• At December 31, 2021, our Fully-swapped Borrowing Cost was 6.0% and the average tenor of debt was approximately 6.6 years.

• Based on our results for Q4 2021, and subject to the completion of the corresponding compliance reporting requirements, our Consolidated Net Leverage Ratio was 4.1x, calculated in accordance with LPR’s Group Credit Agreement.

• At December 31, 2021, we had maximum undrawn commitments of $173 million. At December 31, 2021, the full amount of unused borrowing capacity under our revolving credit facility was available to be borrowed, both before and after completion of the December 31, 2021 compliance reporting requirements.

VTR Borrowing Group

The following table details the borrowing currency and Chilean peso equivalent of the nominal amount outstanding of VTR's debt and cash and cash equivalents: