LILA - Earnings call transcript Q3 2017 | Liberty Latin America Ltd.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Liberty Global Third Quarter 2017 Investor call for its LiLAC Group operation. This call and the associated webcast are the property of Liberty Global, and any redistribution, retransmission or rebroadcast of this call or webcast in any form without the expressed written consent of Liberty Global is strictly prohibited. [Operator Instructions] Today's formal presentation materials can be found under the Investor Relations section of Liberty Global's website at www.libertyglobal.com. [Operator Instructions] As a reminder, this investor call is being recorded on this date, November 2, 2017. slides Company's the regarding Harbor of statements. forward-looking X details Safe the statements Page include within that including forward-looking the may other outlook presentation Today's statements prospects growth historical Litigation with to and Act facts. and expectations future Private and the Reform of not Company's XXXX, statements the information respect its are Securities of meaning could or These forward-looking those to expressed implied differ these results statements involve cause certain materially actual risks by that statements. from in XX-Q Liberty those and detailed from as time the its time These amended. filings risks Securities Global's to Exchange most include with recently and including Commission, filed Forms XX-K, statement Liberty to based. obligation reflect to or any Global in change any such its expectations disclaims on of is statements any conditions in these forward-looking the update any which today's that constitute securities nothing of any on sale. note offer stated for an call Also I Mr. to call would turn like now the over to Fries. Mike

Mike Fries

then, to as we go to on of occurs. or going and going of next us the CEO where Thanks, have on And Liberty everyone, call before operator. And operations some a and yet, who say Financial he's the And few joined brief announced prepared unit; split welcome, I'm America today, for remarks the for is part X results he and job Latin COO dig largest Q&A to incoming to runs off John I into today available Noyes, Wireless, needed. words focus To address Reid, after Balan our be help the LiLAC Kenigsztein, President with who Chris Chief Nair, who numbers, course, am by of about Cable are we're and as to operating going Betzalel also they well. & And technically the Latin not questions to American hour. while the just region; as make thrilled business into the was is Officer. our

an for going one that Executive of of have me going call. the Chairman of the small won't Slide group becoming on forward is half benefits this to you on X, Now listen to

our I'm team. hurricane today, and to the And highlights the more recently hit quick the largest. Betzazel, Caribbean details on our of swept storms these then, five pleased the into island to pretty going the safely. over and and are start hit our Puerto the through Chris will about And So first think, of we in to being And hand group. with update XX% just represent markets survived and the Latin Rico foremost, were that it a going I'm colleagues badly, revenue American and of get I all but John that together,

have a of focused reduce getting to mobile But of where customers on on to weeks I Although turned made and going and currently online and as upside It's we Puerto back service, track. in and opportunity but the back have power result to see them helping of say, our on ago. and that. many is services the in focus long we get the take and capital networks we here, super businesses the Chris their as financial our guidance been and up loss imagine. our visited will island as we're work will couple is Betzalel a Lots especially more fixed and are them. indications way into in are markets we're get progress operational customer's you while long-term also and time we assessing in these have to to certainly, to others. rebuild confident many And to communities Chris about restoring while needless address hurricanes, as our damage, the of back live Puerto XXXX will a lives go, that have of getting Rico to focused. engaged the down, running. seen Rico. could impediment But committed The XXX% systems detail team key the

the course, of product to from terms agreements region, this of It he will entire of take the work was detail. Other the the impact the and CEO hurricane in we going capital revenue managing as Balan European step were in the to the of in stability a in some make the $XX across Chris America year also immediate just of of operator challenges, billion manage Latin the employees especially entrant. coming one Bahamas, have the through which leader with impact was that we top to grew and X,XXX helped do market we're if mobile out with there, big terrific QX Balan documents, still closes. effects performance a region. adds. to a line. the the want another in than And despite And second getting the the to the procurement technology And million and what put all sure the XX end going framework as that of you to will ahead announcement talented. finalize good and many continue around the that the throughout be cable we're through overall, SEC our operating we that and Liberty and made He's And year achieve the overseeing that more know Liberty years, did Wireless to scale technology achieve can place Cable tracking incredibly fourth last the when with our tangible to about XX,XXX should at net wireless. point for In actually roughly sure, excited to and here. to and and He's hurricanes guidance OCF we've to changes our which opportunities Global is committed the again, transaction products business. of full you direction, going and or He's net QX, opportunity RGU Switching $X platform, The you project. and see know with forward. of I'm and of has quarter in on split remain continues still operations benefit off is

who Brendan we and business. well. Columbus when regional new our who all of a We that, the Angoitia Searchlight will Malone and a of also Chairman I'll I of lead our Directors consist board Alfonso of And de strategic a perspective. and can opportunity split for great who member I speak Betzazel, Televisa, will think, bought of growth who America. I also for and co-CEO at which two He's CEO Latin Bracken, of Rican It's Director Charter, excited team announced the business. of and you begin Balan, the important former Liberty we're currently say, well, chair, Gould Zinterhofer three Global you. Curtis Capital. is Miranda this Charter John is and all former to additional know that them and and then the Founder of to Founder the phase Paul off and Eric plus as with provide, course, new complete over members, Communications Charlie Puerto board shareholder was Liberty before a is him CFO of Paddick and Wireless board Cable along board with

Betzalel Kenigzstein

is and Starting island I an and provide Puerto Slide time on been a on Mike I update mentioned, business going Chile. our number a extremely Puerto Mike. the you, as in will with Thank moment. the there the Rico team have of hit, the occasions now with difficult in on Rico X, hurricane at through

customers our up to you to operation still be we're to speed. of number connected we thought what to get doing network is it update back relatively low, the As more the will our helpful on

and get off that Firstly, good repaired that network are to of customers. commitment the we'll to have power the serve ready recovery we kick our been we colleagues, have working proactively to returns, so are of damage our Thanks the view when the process. our sustained

services the We authority, hand we local deliver factor we as rollout key our ensure are power previously we working to driving a theirs. have can whether in power PREPA, with with mentioned hand our coordinate and

We where also priority. this will expect customers are. populated more And be restored that to our has areas of densely metropolitan the correspond most as a

example, revenues Clearly, a an have greater restoration dedicated many as in as San is Juan the focus efforts. generated XX% approximately this area. the was people and to we of possible As us our key for

our Moving a services, rings completed so to optic the providing was we the the Last network week, restoration in fiber details. it more for due foundation milestone. significant to our of backbone

for our to our This of anticipation All returns hubs XX our mid-November. across rising. remote as we board current of are of The by are up allows and are the XXX ramping And today island. said us deliver main our increase in also demand power products crews of and and power workforce all services operational. from number services to to

focusing soon as resilience restoring on well as the we're also of network future for As events. the increasing as connectivity possible,

learned customers & tend on more as demanding are are we're proactive while Mobile at launch this, they video that that times Finally, a the business new have excited We’ll such providing today. content quickly the to we are being as a also video we enable we customers flexibility A recover in access residential that days, connected stay is can Cable few will difficult during to services this move, ensure Wireless. something at customers our be as and streaming product to time. about service.

in providing hit has popular So or XX This in now whether locations our the We've have existing access been are across up for not. hotspots our very to consumers customers video will customers and are services. also WiFi they Puerto our another way to been Rico. hurricane total

communities. Internet launched food, WiFi access we caravan, medical XX not goodwill to leading that The such services a mobile connectivity remote of towns locally provided currently a water, mobile supplies tour for and as connectivity. remote satellite insurance, have do FEMA, to banking, caravan doctors free have also converting WiFi and are three WiFi vehicles We

still Finally, Back for to Business our program. BXB they customers, we have to our that and advertise are open helping been them Go SOHO

Our customers close restoring have online. we we largest of focus have BXB and are XX% as customers our to been been our connectivity,

long today, the be that still very and network on progress it's relatively certainly early full fluid Puerto we but good into is know a and the situation based the at will Liberty earliest. to to are road So for well it but the The recovery we of haul. making process, suspect Rico we XXXX long what committed in are recovery

to VTR, Chilean Slide business. and our Moving X

year, operational primarily were QX driven modestly strong XX,XXX the more by prior higher year. compared a added was from of quality of Box increase is our we were XX,XXX higher, a other service customers RGU clear the and performance XX%, than which This with excellent an of rollout to our we or year-over-year operators. as QX ramping to to customer by commercial WiFi which in QX. and saw XXX,XXX satisfaction. improved at XX% addition, Following compared saw our a start count continued as broadband customers, now execution more our benefiting unit many Connect WiFi of reflection driving in-home coverage greater leading speed significant nearly increased deployment XX,XXX

net video at adds. Looking

be foundations healthy in we QX. mobile consumer Switching Our over our fixed mobile network rate. make progress penetration product continues long a our product driven strength, base there's business, also continue continue of innovative to XXX,XXX these customer our us base quality, in QX building We've service doubled XX% best-in-class customers, market. the SOHO year than grow from postpaid in nearly very which to are this XX% a at keep to us the to customers, to are of postpaid by Of for think SOHO a highly today, mobile, a and through has XX% taking XXX,XXX in received albeit segment. competitive past broke less runway customers. the subscriber our the VOD And we mark and and well all product on and with and to has

with we revenue added During now SOHO X,XXX sequentially. growth total, in XX,XXX the double-digit over have quarter, subscribers and

wrap quarter. total to now our than will strong homes footprint, And QX, of XXX,XXX. taking through and added VTR To the Wireless & I'll Chilean Finally, over another Cable run is up, to over terms year-to-date in more upgraded hand we John, performance. in who XX,XXX

John Reid

everyone. of KPIs in QX, hello, you tell and performance. & Cable financial continue terms in our Thank to to make progress Betzalel, that pleased Wireless good our both you, and I'm

put just discussed, OCF. in the on Hurricanes impact Mike were as some and course, some from revenue which Of obviously quarter Irma both there pressure Maria, and

we Nature, were year-over-year. Mother despite revenue increase and to able However, RGUs OCF

deliver resources ensuring before, the best right and a cost and Wireless, across place winning As also value we're to markets. I on our said, that base Cable propositions in journey a customer transform ensuring to have starting & we have with the we experience

While XX,XXX it encouraging new growth quarter. that a the RGUs was there's generated way we in go, still to of

quarter new our Our technology To XX,XXX passed, team the is additional in a build share taking our a which ramping homes some largest with up total over with start upgraded did quarter market, year-to-date revenue. I’ll households. program XXX,XXX highlights, great our of job an CWC's just upgrade to contributing of and Panama, over

all but this Here profitable, of of impact positive the across QX Jamaica, copper additions X,XXX has become master the our with lines mobile, network with we've our of and new XX,XXX held the to gross we new mobile our the with strategy. additions In we as in nominal consistent our as total. margins XX,XXX bundles saw did In and upgraded in a seen grew quarter. product on more fewer subscribers benefits much BDSL, we with see RGU steady investments in decline the focused base

XX% basis mobile, close also up go-to-market all services. must-watch landed in Jamaican bundle We rebased drive sell part a strategy. is of the much core for included exclusive new wider seen Part we've exclusive league a year-over-year. games ARPU our content our have we in up launch during sports of data the driving price of to revenue very our In and reason and increases uplift. premier usage of well, that with growth our refined our Leveraging helping strategy Caribbean our success across growth mobile to across have triple-play solid ultra revenue bundle ultra that drive on QX, remains

from all is how mobile the last XX,XXX the it here continuing good in team offering. this of we and fiber-to-the-home We're was on third-largest to revenue to to handsets led business offers has quarter. see have growth critical place. unrivaled mobile subscribers terms product we falling market, increasingly during to story Partially competition, in the Our in competitive particularly Bahamas. new offsetting as fixed-line the adapt And best competition an services competitor been these entry aggressive the obviously continued our have across all year. the headwinds the to the of some of lines In late spin-off is

our We unmatched our networks in business. continue the we for segment subsea competitor evidenced markets. management with in in our managed fifth saw growth straight us. four we Bahamas. year executives the Wrapping as best up, Jamaica, improve wholesale Caribbean In X% carrier us strength networks, over and Cable saw new Bahamas region. all also number of by footprint in services in to In broader joining an growth as together our Bahamas. across the brings and recognized recently from have managed C&WB Revenue up footprint in services, in the This X% a good was we XX% it for

BXB where solutions Our are growth and we the in managed markets connectivity across offer XX international mobile, unrivaled significant remains services. opportunity the strength broadband, and

in the to credits ahead results we While connecting proud we're through & impacted back hard together the and communities restore of the quickly really of has the help employees opportunity established Foundation. the to Wireless of and transforming were mission expected which the and and our the and our the Rebuilding of working came course our for quicker customers comes restore after our Cable will & life quarter, example, gave hurricanes we're region markets. on take this weigh help Mobile and recently been is how time brought and our $XX in Charitable as customers Cable drive But we communities possible, for saw Wireless and hurricanes, our and rebuild of and good particularly performance the damaging as to to services network. in showcased on plant and the of to lives. to efficiencies upgrade with Overall, most to our customers, best partners region, technology. prepaid

impact of transform journey quarter another progress the despite to make hurricanes summary, we it's C&W. our as on been in negative So further the

leading we through that markets Chris, to there I'll Looking unparalleled that, products deliver take of our is you will you customer experience. suite for a pass as significant LiLAC financials. the end-to-end convinced And opportunity with across we over to are further ahead, a an all growth who

Chris Noyes

revenue quarter, X XX% year-over-year absent of summary compared prior-year driven due million of Thank the $XXX million a financial C&W. Slide corner in principal in flat throughout million a C&W, we left provide the hurricanes this million pension each representing as on the the that call, not in any right you, or as we yet by our Continuing our to part the past the continued estimate Reported $XXX like was OCF. proceeds theme net. impacted rebased chart, million. in QX The and X.Xx totaled sits driver at of was period quarter contribution $XX to gross our illustrated I'll result. terms recognized And activity and of hurricanes, as the results. we was Jamaica. bottom flow, this to cash performance to $XXX The Free $XXX and potential the $XXX increase over seen our in a in slide, performance on in have revenue high-level revenue. in results, markets in highlighted negative this, leverage, XX% insurance construction bottom July a X.Xx of John. in as at adversely predominantly indicated, hurricane by revenue Panama the progress QX reported in losses. additions delivered P&E as related that financial and the of OCF, in our begin note the Mike of We quarter. Important and $XXX during year-over-year and we presentation, million showed million

LCPR, operations. of decline $XX our the and with generated third $XX our bank decline Columbus of for and C&W each, $XX revenue revenue million refinancing XX, at with debt, Starting we you XX% performance of maturity. for take or combination lengthening million for During the a OCF. high-yield and costs of year-over-year of a Slide we the rebased each quarter, approximately I'll overall decline borrowing debt million OCF, completed the reflecting of a quarter through reducing XX% for On a and

interruptions. a to credits to Specifically, the million impact storms customer $XX accounted service associated million $XX impact roughly stemming revenue a with and OCF, largely for from

once in increase growth X% Revenue VTR our market, BXB quarter resulting to in leverage single Moving XXXX. line solid VTR top mobile, largest fixed, helped for and in deliver across over topping growth, Operating QX a underpinned Chile, the posted X% OCF organic by rebased SG&A in resulting margin was again direct results. quarter. rebased strong both a and XX% an costs OCF

fixed while Wireless. C&W million X% From QX, of good rebased year-over-year. services $X the C&W This hurricane performance OCF impact telephony million & of managed of up X% growth, growth Cable mobile a perspective, given on and basis. encouraging around quarter. a a and contracted delivered $XXX to Turning product modestly wholesale, in both negative reported revenue a broadband our QX. rebased $XXX in or generated during particularly million was

decline Our part, underlying in reductions by costs. substantial was reflecting, performance consultancy and SG&A costs, supported in in marketing

our OCF fourth be resulting variables XXX% revenue quantify will our hurricanes We impact investors financially, outlook situation to the our able with our of and the to Moving the fluent. service power quarter, restoration restoration. the timing markets the of and best for efforts the given between required date, the $XX and receive that XX. thought and including of results, Ultimately, and These for initial in to extent in customers OCF estimates Starting Slide limited between to to financial the estimate many Rico, rebuilding our million Puerto power XXXX. million our we helpful reduction reduction represent $XX to a it'd experience $XXX we from capability. impact million on to however, in million markets expectation a to ranging restore for amounts spend revenue will $XX expected grid, QX in remains today

this OCF specifically, for would in of result terms quarter. OCF the negative In

and are expect our as network will customers We restored reconnected. these impacts is negative lessen

continue However, we impacts of the potentially and will through adverse XXXX the expect beyond. hurricanes

overall $XXX we more $XX much expect C&W's we by restore it of million. estimate a rebuild, more currently require storms overall and fully terms limited the and will impact between to In respect currently C&W, and that affect million we OCF will estimate to $XX With LCPR’s that QX adversely million than revenue infrastructure.

of In for preliminary indicate across markets, of estimates networks a million the restoration excess amounts impacted built. $XX terms of in the full

integrated $XX self-insurance, policy million an to of have million business risk we group of per per occurrence per a insurance, approximately catastrophe so up management in part covering subject as of natural program, to interruption occurrence, the terms maximum our us to of limit $XX and property In $XX group. million occurrence insurance proceeds

policy under the to least there expect We occurrences be our at two across group.

and are corporate the with insurance in position to Our pull to lead multinational of insurance the and advisors carriers. with teams supporting be through our together efficiently extent operating material document to damages process working work our claims the to

information Of we February. have we to half earnings for year-end our in call process course, the the take more well next be it we'll on first process minimum, will starting looking at will believe, a in XXXX, interim to year. Regardless, through and this will into payments share take move time and

to the due principally be negative OCF Adjusted hurricanes, million. from from group. the XX% to presented expected continue impact guidance of flow upper between in XXXX, expect a now now of XX% is capital the slide, the of of intensity we we $X.XX to billion approximately Including in hurricane expect right estimated impact an million aggregate update for we to cash our Moving deliver of and free range the reflecting and the revenue the the OCF hurricanes, of $XXX reduction to level. consolidated at $XXX to

of collective on of of XX. it including billion slide, $X.X liquidity, up billion position. our Slide cash billion wrap At had our roughly $X.X Finally, of right and summarizes liquidity end the we under this lines. bottom credit QX, $X To

Cable again and set work and of Rico, operational lesser majority with markets are extent, First, while our & now C&W encouraging The number on we and our delivered fully showed in restoration fronts. a VTR underlying major strong are The full the up is infrastructure. another of results impact financial repairing had to improvements Wireless. mobile running fixed focused a of on on swing. a much Puerto and performance, hurricanes

businesses especially Looking be Rico and for in several Puerto our smaller difficult ahead, QX islands is in going to C&W.

we altered our bump for to in this Certainly, remain believe However, plans, committed our Mike. to hand our businesses and not potential. hurricanes the the created their speed that, in vision but I'll back these have a they’ve in markets immediate region. And with call

Mike Fries

Thanks, family. said but I'll And along in Technology certainly point wisdom last their out Chief plans. and he key providing welcome I these to Global remark helping on product obligation as we Latin and operations that any technology our been nine has to just He local before guidance all the American and operations well speak Q&A, escaped Chris. just Liberty Officer, to slide, the to involved throughout That's these would jump your to like there. Balan officially

he’s terrific of a he’s provide just focus now. need leadership we going mentioned, to I’ve As right kind executive, and right the

we'll couple to So questions. remarks and make ask Balan then I'd Balan? to your of a get

Balan Nair

Thank to proud. this a through Latin mobile our as moment value looking organically forward before culture our number we words and our create be expansion the some and revenue to to Operations like to say kind. to products really questions. we take Mike, week team favors a our as from business The take how and have of and team which ideas grow this stronger CEO in as or announcement closely of exciting customers innovation in. all build underpenetrated we well as we a can my focused a well converged of quite to earlier as group American markets. you, growth and M&A into business that'll data, that markets Liberty’s benefit economic got a mobile a we to particularly more data with engine, few for new to fixed business. in can leadership deliver members the growing seamless in an and I'm I'd build and underserved and is place the mobile the With cutting-edge move services opportunity across to that's the to working appointment be platforms fixed as which capitalize a in of and I've these trends Caribbean this I'll operate development access in

work it's vendors I as important note Mike mentioned, Global's the benefit next-gen to scale, forms new this service. for of I'm CEOs firsthand smartest pass and As in an With so a attractive my his will will fast set-top will current is I industry. and definitely your say on that Fries IoT, in venture. lastly, while as experience seen be the and halo with from it separate it company, its And benefit. we and in all that, we its of after role I'll amazing to to operator mobile, technologies brand company build investments connectivity, leverage our customer split-off, ability we powerful questions. Mike The to here. insights and pricing think one the broadband Liberty happy such still I've I'm we incredibly boxes, with effect of will Liberty's going is to negotiate use to one our He collective

Operator

David [Operator Evercore. Instructions] Our comes first question Joyce from with

David Joyce

you. Thank

in about areas, lot activity current that made buildout all builds. operations, home your since progress operating could talk been legacy building and basically those areas would touch you was out could in comparing all I hoping contrasting with You've if versus your of growth the those, on you've of you great. new a addition be

Mike Fries

in want Yes. Chile? to start, I'd Betzalel, say, do you

Betzalel Kenigsztein

the great In in they XX,XXX are and Mike. Chile, have delivering Thank homes Yes. quarter, last we you, another results.

the like for also and we where are Europe, our We before, are have in And as base attracting for high we it's quarters making growth discussed the we massive in quarters it penetration. last well. sure keep-on it's market a the driver a of coming in segments that growing right the

network, it's off, and wise, the we're with best in today. extending delivering the same technology HFC fiber spin paying market So deep our the

Mike Fries

where islands the we're about talk to want building? you do John,

John Reid

growth with overlapped that's the as track the RGU for Yes, some certainly traction, A we're and footprint, upgrading couple our by the in getting quarter. traction now evidenced our starting in the where in the we of so there terms and start starting we build, back little to by we're objectives were some traction on ADSL are I'll the our projects to of rest bit see some we'll and competitors not a hit see of want Jamaica but year. we're late

Jamaica final year. well revenue the plan So and we'll upgrade the to over as In and there indicated quarter particularly Panama, the doing build see and master OCF start schedule. the coming into on and is in through next I

retention, Our network I VDSL. guess, upgrade is ADSL the migration or focused is to as in well, as on either this much, that

so or certainly, services, we're our we to VDSL the have focusing HFC quarters we're in our upgrade of upgrading two-way and plant on suite number is migrating we're too. completion, upgrade couple a and need the network a on that while which to from also HFC expanding ADSL copper still new because considerable we to provide the customers near of old And footprints also next of the

positive to the starting track I on XX,XXX outcome – the So new the from positive actually year, we as for start homes that see indicated even in those quarter, upgraded should more and overall, think and quarters. I in upgrades subsequent outcome

Mike Fries

network particularly fixed Wireless Cable advanced that's mean, in of side, may the in the always footprint similar But happening. make Europe, to business. part mobile I not from David, & the fixed the is region need the and small the and mean, relatively a on Yes. upgraded particular, I opportunity in be

and opportunity Balan's is out be going to that overseen that those that the sizable. focused a live upgrading So markets. quite one quad-play, on program real the having in and networks certainly on converged of wherever core rolling helpful areas Europe, in great, possible, and is fixed That's group the which new super build make to identifying

think immediate the going where I of just areas value. one to that's have he's many

David Joyce

you. All right. Thank

Operator

We will Scotiabank. with to go Jose now Quintana

Unidentified Analyst

I And Puerto this have question. the electricity, customers asking is your just I if of [indiscernible] view for in Thanks I'm say, am This is Jose. reconnected wondering confirm that expectation heard the I already of know of number also I XX%? your like homes correctly restoration, already Yes, electricity to because has online. want XX% in XX% is line to around thank if percentage by around you. customers also, the on online Rico the Puerto the And taking Rico over electricity would for I with understand, question are your homes to access percentage that government's of of to in which to mid-December.

versus So you performing wondering the restoration. against how are electricity all I'm just

Mike Fries

Betzalel? we I we [ph] don’t on Do Nodgee have the think have. phone,

Betzalel Kenigzstein

I if No, but the – Mike, question, I can answer

Mike Fries

go Yes, ahead.

Betzalel Kenigzstein

XX% main was those accelerate there to close that a misunderstanding. were customers before mentioned are reconnected. with we customers. that able of Since think customers The the of was regarding XX% to BXB reconnect connected we fiber, BXB main I of our those our and are was maybe most BXB customers

the connected. to On of have reports part, because necessarily the of reporting numbers consumption, homes residential PREPA careful were they read we the be the not we how

very not was – look reported. accurately and it we if So,

connected, that's with of would So the segment, customers quite that, electricity are and number we if go home have line you the less connected on back or of than XX% to in homes that number the residential say today. I

On power to year. that would don't – I of the it's XX%, PREPA power, well seen think be of the But the report to that that pace the I homes moment. leave haven't I XX% a it's will that. – at see will the We restoring pace by on realistic not of end have

out line main power seeing the week only are three. this We termination of of the reconnected

we're [indiscernible] in leave I’ll happy surprised. see to But more the homes XX% would I to would more expecting we and powered be end that see year, days by be PREPA. the area. to in of the So the getting But coming

Mike Fries

that's of that's control course, it, recently, it's day-to-day. the agree issue involved distribution in down – we're – the that, distribution not not island, Having of streets, the local heavily but are the in is the is Mike, the in team know, of network The up, it and over a down transmission transmission the Nodgee not I the this all network, lines. is and – Yes, the of flown lot – not engaged I center challenge. the island of [ph]

local big in that So that if difference would market. a make we the can up, get

Next question operator.

Operator

Arciniegas with Bank to Royal now go will We of Canada. Julio

Julio Arciniegas

with the the more example, required because again, with the could Let's subscribers of give similar XX% running? percentage get actually that and mentioning network less network, Hi. already Thank households some to with quite you relate, on Initially to what up my us question. they taking for power. the of say, you is were color or that are which running basically is

the on, expect to would basically, And to same So level have you delivering the Rico? has question Puerto regarding an has when And Rico? that having been power debt does the company is be situation you. second Puerto we covenants service? once on the in start to impact able used Puerto the assume How the Rico turned covenants. Thank sign will debt in you – as could in to revenues the

Mike Fries

you could and network. the address issue, Balan start debt with Betzalel why the ahead. Chris, covenant then Go don't and

Chris Noyes

made will LCPR on monitor compliant to Yes. mean, it be we from – will as and We payments. million of the folks a QX liquidity $XX have, along. business the QX, continue covenants, liquidity the I I file business. think we the results. had the October facility, the that's at At debt we go we on end cash in perspective, had a roughly And question when interest will the we the probably

so forward. you revolvers moving have we if have end, drew And so cash million. roughly to the starting $XX $XX quarter sort we million through look of a net We million subsequent of roughly October $XX

monitor could support proceeds of include business. we'll to to of future continue sources we the liquidity from insurance So certainly go shareholders liquidity the as with and build,

Julio Arciniegas

might I If you. follow-up.. Got

Mike Fries

debt want you to question Or You your covenants? first on want follow-up their answered?

Julio Arciniegas

about mentioned should you proceeds, proceeds see in? the these when actually, Well coming we insurance

Mike Fries

give course, and and publicly Chris the Anyone very, That estimate imagine. can’t have time. hard in that a very this Did nature. any last time do takes been Bahamas get mean, who's terms getting we that We things team today and would it of we of say went don't timeframe demonstrating we process in for I and involved through want working when a the that but an that Chris to lawyers thing of be. takes next that that, and similar it defining on to you today. interruption consultants, in year outside of business series are whole region, right you I year, experience events of

Chris Noyes

going extent Yeah, could of to impact I could would to resolve say take we its on lots are first of certainly, entirety. flowing obviously, the we that. year hard are But while a but variables interim quite the start that, claim that in payments expect would next half to it's we the it working in

Mike Fries

Betzalel, address power? the you want reliance to network and on its question

Betzalel Kenigzstein

the connected before, backbone hubs the working say would that two elements network. PREPA The good moment is we their, main at ready the are the and very that you and and backbone they main – to we power fiber on we The our we when progress mentioned backbone, I restored, their share there are and plans. closely with of go. look top key I our news have that finished restoring. Yeah, main are One is

the or moment Our of we get either crews PREPA behind our days, service. power, are the matter working immediately in that just and have customers

PREPA. just going step are step behind we by chasing and So

Mike Fries

And rely also our poles on for We question operator. next their infrastructures.

Operator

go now Bazinet. Citi’s, We will Jason to

Jason Bazinet

much. so Thank

billion to just than Rico. million elaborate that of back else service what that your going the in your it sort order question to then quarter shortfall to million year of $XX add and this all fair XQ back guide impact, organically revenue just million to Bahamas $X.XXX old then $XXX you in And million prior decide to I Puerto the OCF your impact we numbers keep is going changed other my how hurricane Was at second changed maybe sort to my XQ, is dribbles into billion, think $XX say to Sorry restored if – is, Puerto but wrong next Is not fourth the $X.X in of to just much full it outlook? I relative up assuming the there's Can it roughly. hurricane? or have $XX Rico, you're something still on year?

Mike Fries

want one is you first to Chris, that. accurate, Chris address

Chris Noyes

which quarter through fairly the customers residential you we a less of level first On could amount imagine, it’s point XX% the generate relatively have revenue, will low up today. of still low customers than as

million FX. your That's how to billion. In we in the you also of in impact second plus and look the impact that QX, relative to to we million. $X.XX factored terms $X.X guidance. Take $XXX on If QX question, for $XXX that at to some get million the overall the OCF Jason, of off equates variability the

Jason Bazinet

nothing FX, Okay, really so only it fundamental. is

Okay. you. Thank

Operator

our next Harrigan Matthew has question

Matthew Harrigan

two in seeing steady, quad-play you forecast, you Then that have and of on that on on with EURXXX given really XX-year Well term, Silicon three condition that already so apply competing if were value it's you of think said longer said Does bit billion all or And actually from the time pretty questions MVNO. analyst benefits I you in presentation. even Latin than all really what certainly, side even be does some you're two your to years comment, Is more tell with put thank about the five-year fanciful the the Mike’s you you're Europe, really engineering when you would SCTE. one, the to actually a look business, in benefits it it's said you, line, in wireless first you cable over relating to the and layer the the difficult business to when in? on Valley. question, second America you

look that's guys pause in replace And two this any on some Balan the and all. are able probably you that was in ride give and of both Does the you the California too or if be and – down they I much. to innovation Sometimes, with know honestly, hire I being over are the you room, really side, really thought you and Global the loneliest people to amazed. younger can't Asia? Liberty around I you people able room, I were on

Mike Fries

Good question.

to is defensive and it a if going offer On a the offensive. sources. fixed that is telco the distract, national to Europe, It and it important two defensive in not convergence fixed a respond. quad-play incumbent not that national has global we to And remember but component in is mobile that have meaning of Europe, bundle, is

context because it's NPS sell it's customers. mobile they pay churn like in simply and customer of that And they our growing of you retaining they longer. the easier also some to in Europe to growth, business mobile significant defensive know competition. the and in us not through in more we So revenue There so terms is fixed more and around own to stick it respects, in beneficial being benefits are both base and your

nice other already were virtuous because than much a they're is entering revenue is So cycle. it's dictate mobile base. competitive my respond secondary I businesses much a to so pace view business Remember, it the And a of the in benefits to be part Europe originally the Cable of was of Wireless & of think on parties But larger mobile large part assets the in fixed stream, this world, personal the logic will convergence agents. here, to and market & as the able I think, same Cable opposed or have Wireless third to applies.

whether me think far Valley it innovation I companies, the platform, jump Apple respond along innovation. question position So but others on or both to the a as great little that Netflix it as on when or don't or with John ours that to curve on Silicon do comes bit more the I Google. video I cooperating a be to key company in a think And can that. know it's a let

market relationships concrete and that those things We them. in also happening whether and tangible front way relationships. the just on We in and instrumental, we no have use with it's Balan or and television. the relationships things or having been maintaining And but trending question, center, data not developing that ensuring good strong that in has are understand the trend and of subscription are are advertising

Balan of as that think There be be both indirectly to parties. have current it that would to eyes have position people that going get a always himself, but probably because technology Balan he fresh step value things won't would be set difficult the Reid forward. The will the the of not markets? thing XX process over a he your the remain on they'll a the quite necessary into we he agreement elements certainly as daunting value brightest, in it's new a He basically, would LiLAC The healthy job And John built doing. and you a a certainly we're framework you benefit sense assumed in of that comment his John, will benefit in one are at quite role. who to new lot to replace. to handed will stronger I on the some and and in innovation if only all than from years. best build to the someone in But last be he many want So huge like tell to like of much want to do find thing IT quad-play to and platform trying say scratch, I'd

John Reid

only I already call luxury is The say coming a thing looking that have what base would trial to sandbox at we fragmented – looking having that deployments we possible markets the asset would this numerous impact And – of we're year. guess for I the FMC. is

that we would say I have very small that's So what assets. I think

We medium of obviously are that sized, others, size. and have Jamaica, Panama decent

common have value obviously can bring trial also building We smaller different we assets, in platform. and together which propositions error and

certainly So that is on our for radar XXXX.

Mike Fries

innovation? on any to want Matt's perspective you question do Balan give on

Balan Nair

remember, what it's are growth you Liberty And more in lot in sure, Mike While whether you, building America, We attracted software will I'll and see said see and about businesses Europe, and us. to of growth us I a get the described But echo Liberty relationships the companies. talent platforms Europe. towards joining talent great recently move more of you'll that business. that in would we most in Silicon Latin with tell Valley really already you

Matthew Harrigan

Balan. Congratulation

Balan Nair

thanks man. Hey

Operator

We'll go now Research. to Street Soomit New Datta with

Soomit Datta

And would your are about away I looking soon, be into I please, to and to be to talking line think it's that's play the cable really your in back to to customers, the might Thank you I on than I solutions? events I the customers structure was mean, to up XXXX and questions, you from fixed particularly, essentially may being the buyback, as not competitor impact quickly market back customers. is from there's DTH see couple but wireless might are fixed just get your going you. market please. Rico? HFC secondly, given think of which to shift if not DTH which own the Puerto – running next network? if to or offering then solutions able fixed be alternatives wireless could again, and wireless some potential potential what considered to year, in What Hi wondered thinking One it alternatives, Rico. Puerto thoughts

Mike Fries

our buyback the decision. by on too and we'll damage soon year-end first and it. expand February And of that Betzalel we about The say – both that. on I I'd insurance guidance I a then, how it's update think your when update kind would talk so on know a at buyback, assessment the lot thing about our Generally, more question, would I'll let we're say trending. to be we only

can We're network team secure to generator it power is our did dozens satellite the a I great know think and happiness customer hotspots. dozens on was both would benefiting own with content on terrestrial our I his run you any As local use [ph] interim. property dish a from product provide strategic goodwill. you we I see can home. mean that and a to market and more the people also But as WiFi doing. customer's issue mean, our in good building for and access loyalty, of down And customers wireless mention, I our there, small the streaming the our for networks to point. IP certainly, are you relying I raised are and Nodgee working

want all? do expand So at that to on you Betzalel?

Betzalel Kenigsztein

You're absolutely right, Mike.

that – there in and offer yes, service there without is the the a DTH can think is raise I power.

before product way market the definitely is the if in hand, after other remain On hurricane, the our the the hurricane. product, we most robust that and

the market, our mobile over they customer you proposition satisfaction. broadband are, and penetration is Customers So we driving strong. believe and fixed across as what broadband our that’s prefer our know, is extremely that

screen. will our we the the radar as on is as restoration that's commercial So – power part definitely restores, of program and well

Okay, couple more operator? questions,

Operator

now to Steve with go Arete Malcolm Research. We’ll

Steve Malcolm

I’m Rico, ask to back to if good good started can. afternoon a I morning, Yes, questions Puerto come just couple guys. going to of I but

of run can you claims your XX global you it fourth be helpfully First you single because impacts negative, treat only when mentioned contract? admit is you there might look of But back should the in you've to which only confirm, of Thank kind trailing very the that is multiple as insurance and the around play recapitalization try the walk that sort to the of likely if is are of that a the cures could two be one-off recapitalize under footnotes or all, on sort one add-backs OCF of OCF to and claim the occurrence implies you've Puerto secondly, reached and of may which the you you you. can might able LCPR Q, covenant when Would quarter, numbers, of through just guidance covenants, at result obviously, hurricanes? coming just Rico, make out put a you And carve-outs the end at and of us very seems kind Page how you've what in obvious way the also there business. cures the is given. how be be hurricanes the about we that think going Can the which be massive six-month to necessary you the business? those

Mike Fries

the one and know – Chris, I the and you between you can insurance why tackle don't then, address Charlie you both, covenants.

Chris Noyes

mind mean at thing say one the least keep an did the we policy. bear integrated two to I that occurrences. Sure, discuss I would in see we is is – policy

call we for, it's region. it, So greater the

jurisdictions. could that multiple that, with So pick up

not point, occurrence this So number claims the of the and what at is we're decided… exactly disclosing

Mike Fries

Latin and the Global the think uses proceeds then those is point it TBD… is beneficiary how I Liberty there America is

Steve Malcolm

Right.

Puerto losses are be the most Rico. Okay, in but clearly, going to I mean, of

is If only lot going it's you're there it's could guess… to occurrences your apply substantially right? there, how more Rico, If to Puerto than of quite I So as that relevant it one, losses. it's in cover popular a be many one

Chris Noyes

there's two hurricanes, There's would obviously, there's Irma I say, and Maria.

that defined So is certainly is of and incurrence an as that, there for what impact can number infer each you a variables an one there's occurrences.

as we working we're through speak. So that

the be correct will place that In will referring in the negative terms of will challenging. you're in with covenants, terms the of EBITDA. be doubt, That – maintenance tests to are disclosure. No have

be We the focused have the two quarters we as and can ability them covenants. obviously get to successive QX. cure We that into cure we so on will

Mike Fries

Chris, overall why of the the Latin don't you reference current liquidity Liberty America?

Chris Noyes

Good I billion $X.X of our the we billion group, of the cash, point, billion mean Mike, liquidity on line. $X today overall have within $X.X

So liquidity Rico from ample as to a LiLAC covenants. to relates the we handle it Puerto situation the perspective, have in

Steve Malcolm

most is that? make to one follow-up is be the is in or think then cash be what CWC CWC to add OCF? back a mean covenants lot like of leverage proportionate things you would clear, And the – cash and the prepared to in would you I upstream do you of Just don't it be the when group cure? that of

Chris Noyes

also a I mean CWC from overall would I I say, number would to question. but we one is liquidity sources point perspective, you have good yes, Yes, VTR. of

in have plus million a and line significant a we cash $XXX We balance have there. Chile

we CWC doubt, pool. covenants, today. our on So covenant credit funding us that No it's that as one the key pool is disclosed proportionate release, and X.Xx is that in for

Steve Malcolm

Okay.

Chris Noyes

for reported you you have a bit we the the look We do to it if group, up take a X.Xx X.Xx quarter. little triple So grows, across proportionate, net.

Steve Malcolm

hopefully. Thanks lot, a lot, Mike. a Thanks Thanks Chris, okay. come back I’ll lot a Maybe

Chris Noyes

Yes.

Operator

one question And final we Kevin have question. Research. final The Roe with Equity comes from time for Roe

Kevin Roe

Thank you, two questions. quick

million insurance update on to be for one co-pay Thank at helpful. mentioned John, how you. dynamic self-insurance First, integrated your the are deductible. And $XX Is would stabilization Chris a co-to-share? revenue question policy, close you for Just competitive BTC? the there any we there on or

Chris Noyes

with question, no. answer is, the Yes, respect your first to

Mike Fries

jump so in. I I’ll quick, that was take. Kevin can pretty

to I that pretty it. when in enough we think are a is still or pretty bang Projections and fair think thought would probably expectation volatile that's kind now our of we short-term, one the really on year be certainly market the is close after to mobile say. I

So business. obviously the emphasis fixed-line on for us the is

next homes path We will upgrade come on see quarters. more some couple the over path, of home

about that's some sales through. as Bahamas side operating FTTH executives that for I frank, to pretty probably And we fair that entire of been we years known both why disappointed the little XX sale the think the be attracted that it's pace so capable to as say in from well bit And a channel. personally Cable drive have well quite as of the to we've

will fixed-line find time, the think our I few on So sort business. But view will an its of a mobile on significant the But same definitely represents mobile we at piece see to the next the way quarters. recognizing continue the over statement. of Bahamas, that uptick still income

how year guess as terms on of and driving few well get So of more outlook would going network but of we more I think good sense quarters in capability certainly, after we're of the be really to in before terms thought we really as positive land execution. one a be it the more capability I a will for where we

Kevin Roe

you. thank Perfect,

Mike Fries

excited to All the both still right. here. on appreciate year-end. that Super and as as gives some split-off us in to the I XX-Q of That step hurricane which the update soon the second is for call it. on information occurs, lot wraps everybody in happen A expected here. joining the for hopefully call you and at Balan clarity

on in great as just some start the opportunity opportunities the aggressively has well. of then, Liberty it moment more be take continue value drilling to not I for to creation a strategic think that Latin advantage of operating will but America

support your speak So appreciate and soon.

Operator

XXXX Liberty Global's Quarter Ladies concludes this Investor Call. and Third gentlemen,

of a available today's call website a be can There, also presentation find will Global’s Relations As reminder, replay copy you the the of materials. Liberty section at www.libertyglobal.com. Investor in of a

Liberty Latin America (LILA) 2 Nov 172017 Q3 Earnings call transcript