On two previous occasions, earlier in this year, I've written articles about Liberty Latin America (NASDAQ:LILA) (OTCPK:LILAB) (NASDAQ:LILAK). On both occasions, my review resulted in a neutral stance on the shares. There
Liberty Latin America Improves Organic Growth And Expands In Costa Rica
Summary
- Liberty Latin America has had a clear focus on growing the footprint through acquisitions over the last years. Organic growth of subscribers and revenue, however, has not been impressive.
- Organic growth of fixed-line and mobile is now improving in comparison with previous quarters, as shown by the Q2 Average Revenue Per Unit (ARPU) and Revenue Generating Unit (RGU) trends.
- The recent acquisition of the assets from Telefónica in Costa Rica looks accretive. The incorporation of this acquisition in the upcoming quarterly reports will add to the positive trends.
- My view on the company changes from neutral to bullish, because of the improving organic growth and the Costa Rica acquisition.
TMT sector professional. Over 20 years of experience working in the sector in Europe and outside Europe. Decade of investing experience to keep in close touch with companies and themes that are relevant for my work.Companies where I worked are among others: KPN, Chellomedia, Liberty Global, UPC Cablecom Switzerland, Get Sweden, Ooredoo Middle East, Cell C South Africa, Du Dubai, Axiata South East Asia, Celcom Malaysia, Vodafone.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LILA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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