Liberty Latin America (LILA) risk factors, FY2024 10-K

Other

1. 01In addition to the other information contained in this Annual Report on Form 10-K, you should consider the following risk factors in evaluating our results of operations, financial condition, business and operations or an investment in the shares of our company
2. 02We operate in increasingly competitive markets, and there is a risk that we will not be able to effectively compete with other service providers
3. 03Changes in technology may limit the competitiveness of and demand for our services
4. 04Our significant property and equipment additions may not generate a positive return
5. 05We depend almost exclusively on our relationships with third-party programming providers, broadcasters and rights owners for programming content, and a failure to acquire desirable programming on acceptable terms could adversely affect subscriptions of our video services
6. 06We depend on third-party suppliers and licensors to supply and maintain necessary equipment, software and certain services required for our businesses
7. 07We may be unable to obtain or maintain the roaming services we need from other carriers to remain competitive
8. 08We rely on information technology to operate our business and maintain our competitiveness, and any failure to invest in and adapt to technological developments and industry trends could harm our business
9. 09If we are unable to retain key employees, our ability to manage our business could be adversely affected
10. 10We may not have sufficient protection to cover damage or costs incurred due to natural catastrophes, which could expose us to significant liabilities
11. 11We are involved in disputes and legal proceedings that, if determined unfavorably to us, could have a material adverse effect on our business, financial condition and results of operations
12. 12A substantial portion of our businesses is conducted outside of the U.S., which gives rise to numerous operational risks
13. 13We are exposed to foreign currency exchange rate risk
14. 14possible and when cost effective to do so, by using derivative instruments to synthetically convert unmatched debt into the applicable underlying currency
15. 15Failure to comply with economic and trade sanctions, and similar laws could have a materially adverse effect on our reputation, results of operations or financial condition, or have other adverse consequences
16. 16Our businesses are subject to risks of adverse regulation
17. 17Failure to comply with the FCC’s requirements for the UPR Fund or other funding programs in which Liberty Puerto Rico may participate may have an adverse impact on Liberty Puerto Rico’s business and our financial position, and payments by such programs are decreasing and uncertain
18. 18We may not be successful in acquiring future spectrum or other licenses that we need to offer new mobile data or other services
19. 19We cannot be certain that we will be successful in acquiring new businesses or integrating acquired businesses with our existing operations, or that we will achieve the expected returns on our acquisitions
20. 20We do not have complete control over the prices that we charge
21. 21Strikes, work stoppages and other industrial actions could disrupt our operations or make it more costly to operate our businesses
22. 22We may have exposure to additional tax liabilities
23. 23Failure to comply with anti-corruption laws and regulations, such as the FCPA
24. 24Failure to comply with trade controls
25. 25Our business has been, and could in the future be, adversely affected by a pandemic
26. 26Our substantial leverage could limit our ability to obtain additional financing and have other adverse effects
27. 27conditions, sovereign debt concerns or any adverse regulatory developments will impact the credit and equity markets we access and our future financial position
28. 28We may not be able to generate sufficient cash to meet our debt service obligations
29. 29Certain of our subsidiaries are subject to various debt instruments that contain restrictions on how we finance our operations and operate our businesses, which could impede our ability to engage in beneficial transactions
30. 30We are exposed to interest rate risks and other adverse changes in the credit market. Shifts in such rates may adversely affect the debt service obligation of our subsidiaries
31. 31We are subject to increasing operating costs and inflation risks, which may adversely affect our results of operations
32. 32Uncertainties and challenging conditions in the global economy and in the countries in which we operate may adversely impact our business, financial condition and results of operations
33. 33results of operations and cash flows may be adversely affected if the macroeconomic environment becomes uncertain or declines or governments increase taxes or levies as a result of fiscal deficits or natural disasters. We are currently unable to predict the extent of any of these potential adverse effects
34. 34We are exposed to sovereign debt and currency instability risks that could have an adverse impact on our liquidity, financial condition and cash flows
35. 35We are exposed to the risk of default by the counterparties to our derivative and other financial instruments, undrawn debt facilities and cash investments
36. 36The liquidity and value of our interests in certain of our partially-owned subsidiaries, as well as the ability to make decisions related to their operations, may be adversely affected by shareholder agreements and similar agreements to which we are a party
37. 37Goodwill and other identifiable intangible assets represent a significant portion of our total assets, and we may never realize the full value of our intangible assets

Risks Relating to Cybersecurity

1. 38Failure in our technology or telecommunications systems from security attacks or natural disasters could significantly disrupt our operations, which could reduce our customer base and result in lost revenue
2. 39Cyberattacks or other network disruptions could have an adverse effect on our business
3. 40Unauthorized access to our network resulting in piracy could result in a loss of revenue
4. 41Data privacy regulations are expanding and compliance with, and any violations of, these regulations may cause us to incur significant expenses

Risks Relating to Climate Change

1. 42We may face increased costs, limitations of our operations and other adverse impacts from international climate change treaties and accords or national climate-change regulation and legislation
2. 43We may face the loss of certain markets, customers or significant financial loss due to the physical impacts of climate change

Risks Relating to our Corporate History and Structure

1. 44We are a holding company, and we could be unable in the future to obtain cash in amounts sufficient to service our financial obligations or meet our other commitments
2. 45Certain of the company’s directors and an executive officer overlap with Liberty Global, and certain directors and officers have financial interests in Liberty Global, which may lead to conflicting interests

Risks Relating to Our Common Shares and the Securities Market

1. 46Different classes of our common shares have different voting rights, but all common shares vote together as one class; if you hold Class C common shares you will have no significant voting rights
2. 47It may be difficult for a third-party to acquire us, even if doing so may be beneficial to our shareholders
3. 48Although our Class B common shares are eligible to trade on the OTC Markets, there is no meaningful trading market for these shares and the market price of these shares is subject to volatility
4. 49We may be significantly influenced by one principal shareholder, and he may sell his shares, which may cause the price of our common shares to decrease
5. 50Bermuda law may, in certain circumstances, afford less protection to our shareholders than the laws in effect in other jurisdictions
6. 51We are a Bermuda company and it may be difficult for you to enforce judgments against us or our directors and executive officers
7. 52We are a Bermuda company and the Bermuda Economic Substance Act 2018 may cause us to incur substantial additional costs, incur significant penalties or possibly require us to re-domicile
8. 53Our bye-laws generally restrict shareholders from bringing legal action against our officers and directors
9. 54There are regulatory limitations on the ownership and transfer of our common shares
10. 55We have identified material weaknesses in our internal control over financial reporting, which could, if not remediated, result in material misstatements in our financial statements