Liberty LatAm: AI, Networks, and a New Capital Structure — A Pivot to Value Creation
Q2 2026 shows OIBDA acceleration, a $250M NPV Amdocs deal, and aggressive buybacks as the company leans into its levered equity model.
LILA · Earnings Call · 2026-08-06
A Return to Growth
Liberty Latin America's second-quarter report reads as a deliberate departure from the defensive crouch of recent years. The company added 45,000 mobile postpaid and broadband subscribers, with every segment contributing. Rebased adjusted OIBDA rose 3% year-over-year, an acceleration from Q1, and management pointed to a "materially higher" first-half adjusted free cash flow before distributions versus last year. “We added 45,000 mobile postpaid and broadband subscribers in the second quarter, with all segments reporting positive contributions.” — Balan Nair, CEO · 2026-08-06 The tone was confident, even as revenue remained flat on a rebased basis and free cash flow (less SBC) printed -$82M, though up 18% year-over-year.The Amdocs AI Pivot
The most striking headline was the announced AI-driven IT transformation with Amdocs. Management pegged the net present value of cost and CapEx savings at north of $250 million. Balan Nair explained the logic: “We've been looking at our systems and most systems, back-office systems kind of act like a utility in a telecoms company... And what we were looking for is a partner that's done this in other places where they can take a lot of legacy systems, transform it, bring -- help us not only transform the technology but transform our processes as well.” — Balan Nair, CEO · 2026-08-06 This is a continuation of the cost thrust that has been building for several quarters. On the May 2026 call, Nair had already emphasized, “We are very focused on our cost... We expect that there is still opportunity to increase both those metrics.” — Balan Nair, Executive (likely CEO or similar senior executive, as he runs through group highlights and operating results) · 2026-05-08 And back in November 2025, he described the cost program as "about 20 months" in motion, with benefits rippling into 2026. “We embarked on this about literally about 20 months ago, and we're starting to see the benefits now certainly this year. And we anticipate it to follow through in 2026 as well.” — Balan Nair, CEO · 2025-11-06 The Amdocs deal, a Amdocs partnership, is the concrete manifestation of that strategy.Networks, Puerto Rico, and Capital Allocation
Liberty Networks was the standout segment, with wholesale revenue up 14% rebased, buoyed by the El Salvador project and demand from hyperscalers. Nair's enthusiasm was explicit: “We're quite bullish on that. And there are other opportunistic routes that we could be looking at as well.” — Balan Nair, CEO · 2026-08-06 The growth narrative there contrasts with Puerto Rico, where the focus is on stabilizing postpaid. "Our port-in/port-out ratio right now is looking very good," Nair said. “Our port-in/port-out ratio right now is looking very good and so -- both against T-Mobile and against collateral.” — Balan Nair, CEO · 2026-08-06 Simultaneously, the company distributed $500M of preferred stock, regearing common equity, and has repurchased over $60M of stock, with nearly $140M remaining.The Unbeatable Network campaign, launched across markets, ties the customer experience to this operational and financial turnaround. Weather risk remains a perennial concern, but the company's parametric insurance program, as Chris Noyes confirmed, is "fully locked in" for the upcoming season. “For upcoming season, we are fully locked in terms of the parametric.” — Christopher Noyes, Chief Financial Officer · 2026-08-06 With leverage ratcheting up via the preferred (liabilities-to-assets hit 91.6% per this metric), the company is betting that its operational improvements and the high-multiple Liberty Networks business will unlock value.We really think our common equity is undervalued, and we're going to put our capital to work there.