Liberty Latin America (LILA) risk factors, FY2025 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 providers63% rewritten
3. 03from OTT providers, including telephony providers such as WhatsApp, utilizing our or our competitors’ high-speed internet connectionsNew
4. 04Changes in technology may limit the competitiveness of and demand for our services
5. 05Our significant property and equipment additions may not generate a positive return
6. 06We 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
7. 07We depend on third-party suppliers and licensors to supply and maintain necessary equipment, software and certain services required for our businesses
8. 08We may be unable to obtain or maintain the roaming services we need from other carriers to remain competitive
9. 09We 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
10. 10If we are unable to retain key employees, our ability to manage our business could be adversely affected
11. 11We may not have sufficient protection to cover damage or costs incurred due to natural catastrophes, which could expose us to significant liabilities
12. 12We 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
13. 13A substantial portion of our businesses is conducted outside of the U.S., which gives rise to numerous operational risks
14. 14We are exposed to foreign currency exchange rate risk81% rewritten
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 uncertain34% rewritten
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 effects63% rewritten
27. 27We may not be able to generate sufficient cash to meet our debt service obligations
28. 28Certain 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
29. 29We 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
30. 30We are subject to increasing operating costs and inflation risks, which may adversely affect our results of operations
31. 31Uncertainties 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 operations60% rewritten
32. 32reduction of roaming charges incurred by tourists, these factors will in turn drive disposable income, with the corresponding impact on use of our products and servicesNew
33. 33We are exposed to sovereign debt and currency instability risks that could have an adverse impact on our liquidity, financial condition and cash flows
34. 34We are exposed to the risk of default by the counterparties to our derivative and other financial instruments, undrawn debt facilities and cash investments
35. 35The 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
36. 36Goodwill and other identifiable intangible assets represent a significant portion of our total assets, and we may never realize the full value of our intangible assets45% rewritten

Risks Relating to Cybersecurity

1. 37Failure 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. 38Cyberattacks or other network disruptions could have an adverse effect on our business
3. 39Unauthorized access to our network resulting in piracy could result in a loss of revenue
4. 40Data 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. 41We 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. 42We 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. 43We 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. 44Certain 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. 45Different 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. 46It may be difficult for a third-party to acquire us, even if doing so may be beneficial to our shareholders
3. 47Although 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. 48We 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. 49Bermuda law may, in certain circumstances, afford less protection to our shareholders than the laws in effect in other jurisdictions
6. 50We are a Bermuda company and it may be difficult for you to enforce judgments against us or our directors and executive officers
7. 51We 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. 52Our bye-laws generally restrict shareholders from bringing legal action against our officers and directors
9. 53There are regulatory limitations on the ownership and transfer of our common shares60% rewritten
10. 54expansion to other jurisdictions, projected levels of taxable income in each jurisdiction, tax audits conducted and settled by various tax authorities, and adjustments to income taxes upon finalization of income tax returnsNew
11. 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