LILAK - Why Global Warming Is This Cable Company's Biggest Risk Factor
It might seem odd that a nebulous risk such as climate change would be top of mind for shareholders in a cable company, but that's the case at Liberty Latin America (NASDAQ: LILA) (NASDAQ: LILAK) these days. Liberty Latin America serves customers with pay-TV and broadband internet in 18 countries across Latin America and the Caribbean. Increasingly frequent and powerful hurricanes and tropical storms have caused damage that has set back earnings growth and required companies to invest more in durable infrastructure.
By far, the biggest setback for the company caused by a natural disaster was the damage caused in Puerto Rico in 2017 by Hurricane Maria. The Category 5 hurricane caused not only severe damage but also a humanitarian crisis -- destroying roads, flooding homes, and wiping out access to power and safe drinking water on much of the island for months (and in some cases over a year).
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