Liberty Latin America Beats Q1 Expectations Amid Hurricane Recovery and Capital Return
Strong performance in Jamaica and Liberty Caribbean drives results ahead of internal targets, while management announces $500 million preferred equity dividend.
Liberty Latin America reported first-quarter 2026 financial results that exceeded internal expectations, driven by robust operational performance in Jamaica and the broader Liberty Caribbean segment. The company recorded $1.1 billion in revenue and $405 million in adjusted OIBDA, with adjusted free cash flow improving by $40 million year-on-year despite the negative impact of Hurricane Melissa. Concurrently, GCI Liberty, controlled by Dr. John Malone, completed the acquisition of a 6% stake in Liberty Latin America from Searchlight Capital. Management also announced an intention to distribute $500 million in preferred equity dividends to shareholders.
The telecommunications operator delivered a 1% rebased decline in both revenue and adjusted OIBDA compared to the prior year, a result management described as a beat against internal plans. The flat top-line performance was primarily attributable to a full quarter of disruption from Hurricane Melissa in Jamaica, which caused an underlying revenue impact of $12 million, alongside phasing issues in B2B projects at Liberty Networks. Despite these headwinds, adjusted free cash flow before partner distributions improved to a negative $64 million, supported by lower capital expenditure and stronger operating cash flow.
Recovery in Jamaica has proceeded faster than anticipated, with the business adding 15,000 postpaid subscribers in the quarter, including 11,000 in Jamaica. Management noted that the speed of reconnection for residential fixed services and ongoing mobile strength helped offset the storm’s impact. The company is now optimistic about reconnecting a significant portion of the 60,000 customers and 133,000 homes passed that were taken offline at year-end, aiming to return to pre-hurricane run rates by the end of 2026.
In other operational updates, Liberty Networks reported a 7% rebased revenue growth driven by wholesale demand, although adjusted OIBDA declined 5% due to cost allocations for the El Salvador subsea project. Liberty Puerto Rico posted strong adjusted OIBDA growth of over 10% year-on-year, supported by cost reduction efforts and stabilising mobile trends. Meanwhile, Liberty Costa Rica faced ARPU pressure in a competitive fixed market but maintained subscriber stability while preparing to launch a direct-to-cell service with Starlink in the second half of 2026.
On the capital structure front, Liberty Latin America announced its intention to distribute $500 million in notional amount of 9% cash-pay preferred equity as a dividend. This move is designed to provide shareholders with an attractive return while regearing the common equity. The announcement coincides with GCI Liberty’s acquisition of Searchlight Capital’s approximate 6% stake at $8.63 per share, increasing Dr. John Malone’s total indirect ownership in the company to approximately 13%. The company also resumed share repurchases, with $185 million of authorisation remaining.
