Regional telecoms provider Liberty Latin America said it expects there to be a financial fallout from its subsidiary C&W Caribbean as a result of the passage of Hurricane Beryl last month.

The company made the disclosure in its report on the second quarter and half-year financial results, which was marked by “organic growth”.

“In July 2024, Hurricane Beryl impacted our Jamaica operation and certain smaller operations within C&W Caribbean, resulting in varying degrees of damage to homes, businesses and infrastructure in these markets. In connection with Hurricane Beryl, we expect to experience adverse subscriber and financial impacts during the remainder of 2024,” the company stated.

LLA further estimated that, “Revenue and adjusted OIBDA (operating income before debentures and amortisation) will be negatively impacted by between [US]$10 million and [US] $20 million for the remainder of 2024, primarily during the third quarter, based on certain factors, such as when power is fully restored to the impacted areas.”

The telecoms provider also anticipates that it will need to replace up to US$20 million in infrastructure and equipment which were “damaged beyond repair or to enhance network resiliency”.

Capital expenditure on equipment was US$55.1 million for the quarter versus US$72.2 million in Q2 2023. Over the six months, C&W Caribbean spent US$99.4 million, down from US$118.2 million in the corresponding period.

LLA will recoup some funds through insurance payments triggered in the aftermath of Hurricane Beryl. It expects “to receive net third-party proceeds of approximately [US]$44 million that will be reflected as a derivative gain in our financial statements.”

In the meantime, the company is still conducting assessments of Hurricane Beryl’s impact on its residential and business subscribers.

During the three months that ended June 30, C&W Caribbean reported a three per cent year-on-year growth in quarterly revenues and a four per cent increase in half-year revenues for 2024.

These, it said, were due to an increase in fixed-line residential revenues, “supported by broadband subscriber growth, primarily in Jamaica”. Additionally, mobile residential revenue rose as a result of “an increase in postpaid subscribers year-over-year”.