LILA - Earnings call transcript Q4 2019 | Liberty Latin America Ltd.

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Operator

Good morning, ladies and gentlemen, and thank you for standing by. Today’s call is being recorded.

I will now turn the call over to Guillermo Ponce, CEO of VTR. Please go ahead.

Guillermo Ponce

Good morning and welcome to Liberty Latin America’s Full Year 2019 Investor Call. participants a all only. time, this are listen-mode in At under can Relations website Today’s materials found at the America’s formal presentation Latin be Investor Liberty section www.lla.com. of

session. be today’s for Following instructions will presentation, a formal question-and-answer given

As a reminder, call is being recorded. this

these including are forward-looking to and Actual materially may not statements. prospects historical Today’s growth expectations information other from outlook company’s or differ statements, fact. may with the those implied remarks and future and include respect its statements by expressed that results

factors recently on could results XX-K. information that Additional or Liberty cause to risks in available Latin differ filed is America’s most Form

Liberty is Latin or disclaims obligation based. expectations which in reflect to of to update on America forward-looking statements these its any change the statement in such any conditions any any

on to certain we can on are presentation addition, GAAP this which measures, most appendix to which our financial Relations to measures, financial the this refer reconciled in will non-GAAP the be website. and Investor found comparable call, In

now like I over CEO, Nair. to our call would Balan Mr. turn the to

Balan Nair

Guillermo, everybody to year presentation. results welcome you, and our full Thank

senior I’m during team our always, remarks. following the my as and leadership them by joined region Q&A, from across needed prepared I’ll get As the involved

we highlights start financial performance update. finishing and outlook I’m you going get a XXXX. year our to of will CFO, that, with straight review Noyes, and by operating will the through our with to for our Chris your results strategic taking before a then questions. After follow for

both at you find website can we a www.lla.com. As which point on housekeeping, be working slides, will from of our

RGU which of by and record operational in than for highlights our was business generated XX% Slide products. our driven results with we on higher fixed starting Now with broadband strength year, key X in leading the additions, our XXX,XXX XXXX the

well XXXX, was XXX,XXX to losses, swing new teams. a subscribers as in of XXX,XXX. reported to Our and where focus renewed our which XXXX, mobile significantly subscriber we thanks propositions added Compared from a has we improved mobile momentum large positive

that, included our and We OCF, and P&E this also our guidance and delivered year for cash ratio the say our flow. revenue to financial adjusted free happy I’m to

cash Chris through strong you beat we give comfortably Our later. more target year. halfway the had details flow $XXX free million will set the performance of adjusted increased

We our continued to expand new and and coverage million above and networks XX%. nearly upgraded X.X our fixed mobile homes, strengthen moved with or LTE

Importantly, a disciplined continued view returns, but we in to CapEx ratio invest with improve helped which sales on to our XXXX.

Seychelles completed we U.S. with integration of the strategy. of disposal great our the have we Puerto business in are acquisition I’ll UTS looking to forward our the cover progress BXB. and mobile fixed, inorganic slides, our business. The well. progressing In the and of next three AT&T’s three made Rico And We segments Finally, is Islands. assets of Virgin completing

which fixed On X, business, we Slide our our of represents half total revenue. show

a As the XXXX our in additions group, reporting RGU than across we good with prior segments. more performances delivered XX,XXX year

largest and operations an additions & improving All three particularly the markets growing in continues fixed, Jamaica are XXXX. driving in be to Panama, with XXX,XXX Cable Wireless in and Trinidad C&W. story,

significant the focus we we as penetration. we market As increased fixed and on have drive our networks, opportunities expands

to hurricane our and was market. And VTR/Cabletica year, as with in XXXX growing where Puerto line a higher XXXX which continue included additions related the well in XX% in were Chile, good enhanced reported as well the additions Costa improved as over prior additions recovery. resonate in increased year-over-year, a our strong Rica to was speeds in performance which Rico, products

important a additions total. region part nearly represented in it two-thirds as to of side, Video continue main the a additions, as nearly right of quarter value to our bundle. Looking once hand product perspective, driver of broadband an the from was again the of representing their customers

X, just a Slide we significant on our representing year-over-year. improvement added the across XX% mobile group, In under of XX,XXX to revenue. subscribers QX, Moving

at continued improved our drove in C&W, while Jamaica VTR As to propositions a add revitalized anticipated, performance consistent subscribers rate. at

year, XXX,XXX overall. stabilization adds, with story mobile growth signs net and continue similar XXX,XXX a the and of drivers. over C&W subscriber revenue swing the Panama improvements Bahamas Chilean in saw net to we and a The the Jamaica of of positive with subscription For full in year in adds delivered main year-over-year we see being trends of

of right We end to growing we subscribers hand subscribers bringing with our and have now leading XX% the see on side, focus can speeds customers, our of at you LTE strongly the fastest XXXX. on networks reaching year-over-year,

BXB fixed, X QX and to the strong QX group, the our leading across good left slide, rebased with testament of with strong BXB of mobile of to year the networks and side portfolio subsea about business our Bahamas The This significant X%, networks a We a product an particularly in XX% Panama, representing in full with contract performance of Moving to our wins growth some and and the our and and respectively. customer X% a extensive service. had Slide revenue, starting notably aligned is combination business. delivered

center business our driven that by majority including As demand of in the graphic headwinds. markets, our comes product to data grow subsea by prior slide revenue The legacy offset increasing shows C&W in for quarters, operations. services, from partly steadily continues of our and the the BXB BXB managed

Liberty integrate operational drive our and Cabletica. to to of market VTR, capability in greater part across As see LLA, Puerto we opportunity Rico share efforts significant

competitive one our X, Slide we on which of Turning to taking innovation, leading moment are and wanted spend networks our believe to drive steps the a advantages. I to we is

new networks note XXX,XXX speeds million access leading to of or XX% our homes passed have upgraded global important to fiber-to-the-home HFC either first, to that It’s added benchmarks, XXXX. our technology. over homes we in X.X at comparable through or in Looking fixed,

customers. on have our access Nearly on XX% our offer modem a our delivered layering XX% Wi-Fi technology to networks focused in of modems. which through in network and Chile high also this in-home Rico leading to We speed experience are great mesh over coverage. customers We connectivity the we our and Puerto

population more LTE As of of mobile than now XX% and our markets. to the with fixed, is strength in the crucial networks our coverage we have

right Moving the commitments desire. customers’ and slide our innovation, deliver to to services the our us of to enabling the

a engine Google aggregator Assistant. that and Hub all a In new highlighted access we offering, rolling be single traditional a across content markets Android-based Hub as Wi-Fi a differentiated to of video our soft also part addition recommendation will and a content product video, have we’ve our in TV we video central strategy. is Rico and product apps, with to OTT in-home recently which sophisticated IP experience, launched Puerto TV out as serves with

on left X, operations, our in Panama. first hand and on since of Turning focus the made our have now progress. talked the ago a Slide we to year and significant we’ve operations about I operational Starting slide, side established transformation our center then new

biggest by this our operations maximizing scalable July We XXXX. from scale business as opened was for of efficient Panama of our chose to the grow center new effective comes and One creating operations. as in regional opportunities a location

end We on of are team executive track employees XXXX relocated the XXX already approximately have my there there. of to members and have by

our us our product operations allows also in to transformation, like initiatives key digital our center model engineering. scale development operating and mobile Our

HR there. have In back addition, finance and our offices we

center important best focus operational practices. the on the improved metrics right of the Moving sharing to number of significantly as results slide, a we we’ve and across

while On install, experience and and time is truck failure, product metric of repair, our the the install reducing installation, highlighted rolls. speaks to as life time mean an customer to early drives mean to slide, which number we’ve important of it rolls quality truck

products The goal in progress improve to to differentiated of experience. next creating our our leading vision, leading Reaching sales region. but it’s leverage make to continue is a and a we and customer and step on digital platforms our multi-year ultimate towards proposition the project, journey our

and On Slide our for wanted I achievements areas XXXX in running by to through focus XX, XXXX. close

for speak here and themselves results the slides. think previous summarize my I

there a look against we drive growth. new as for of us priorities our as strategic mixture to XXXX, opportunities additional well continuity we some execute As as is to

the share culture our will structures build region. unified on to we the First, group scale the expertise and and across in

expand continue will while and capital innovate we on focusing to Second, efficiency.

homes of our terms to build X.X footprint, fixed intend XXXX. or million in approximately In upgrade we

will Third, group. acquisition gains. AT&T’s our U.S. slide, to the of Virgin Fourth, into up expect we as complete we to Islands our leading operations and center Rico covered in them efficiency Puerto the ramp Panama integrating businesses previous begin and

points of to to transaction continue note couple here, to A expect the XXXX. we in QX close

the through from realized. to We to Synergies year integration incur after a majority million approximately of closing, about expect fully $XX benefiting coming months totaling within are XX OCF completion. when start of expected costs

position. we has year progress Chris will Finally, great past the our balance opportunities our continue sheet to over with and to look for made strengthen

XXXX. in strategic we good and our against Overall, our guidance priorities on make delivered financial progress

in As a are the the start and to the cash continued we and flow organic foundation momentum look adjusted set to growth XXXX, on should our integration continuing focused in assets. years. free AT&T we making for of deliver coming development These steps successful

I’ll you questions. financial your talk Financial we Chris? through now our before that, to will over pass Noyes, With who Chris our Officer, you take Chief performance

Chris Noyes

Thank improved top Slide and QX left, $XXX Starting we with QX upper and are revenue for reflect advancements. on and you, our reported rebased of line These of subscriber the X% results XXXX Balan. XX growth fueling traction XXXX I for billion. of million momentum will $X.XX as and revenue begin X% summarize results. financial BXB

X% or declined for rebased Moving and full to growth $XXX we million billion QX X% rebased the or year. OCF, posted $X.XX for

benefit performance Our million XXXX. by adversely recovery was realized $XX impacted insurance QX QX rebased in

XX% higher million spend million to costs XXXX, additions The in or QX. totaled $XXX of related XX% P&E $XXX Hurricane includes including of for in revenue The Bahamas. for relatively of million restoration QX revenue Dorian or $XX

QX, for the generated free million our flow year. and our to million of total the cash in bottom comfortably $XXX adjusted beating guidance $XXX to right, XXXX Moving we bringing

year. including our larger particular, Our XXXX strong see end trade we and the to Wireless previously Cable QX flow. within was robust than at expected had favorable QX by achieved some unwind movements, some BXB expect from earlier of the and thus we collections capital working would collections capital result we In working customers cash trade & government supported in

growth, revenue were acquisition results mobile, QX we to revenue a fixed C&W substantially of respectively, partially X% our present with better Slide segment X% few call XXXX. in our and by was growth which our On key in in rebased XX%, our growth of QX the coupled With and figures, highlight BXB performance starting a recent since just decline results strong result OCF and than of I’ll out rebased is with quarters. A of most offset in best which our residential us both only for was a XX, respect C&W. mobile

programming new aforementioned supported decrease rebased content of reduced as the OCF tax third-party was agreements as associated costs, in a well with revenue by and favorable performance is including withholding Our the from benefit growth the suppliers. strong impact

These QX in factors positive attributable $XX impact partly the offset insurance recognition the QX and in on rate XXXX were settlements million by adverse OCF XXXX. Hurricane QX in Dorian to of the growth

Cabletica, and X% VTR rebased weakness delivered full Chilean we year performance respectively, to the and in despite solid OCF X% Moving of Chile QX associated with of peso. unrest a growth and the

Liberty the once Rico was the year on Finally, $XXX benefit the referred on entirely Rican slide, settlement insurance a the was the with results. of the delivered portion prior Puerto XX% of the slide. Puerto attributable right fantastic QX negative approaching to rebased to million again XX%. of growth The above from margin OCF for

important progress highlight several we Moving two since we have the metrics made split to Slide the on XX, ago. off to years wanted

of reduced basis and an revenue. points, points of have costs points. XX both our OCF as basis by contributed operating costs basis have These XXX our to by percentage uplift a We XXX margin direct measured

improved, has by additions of a margin we measured lower almost driven XXX points P&E our since As our revenue as basis also have percentage XXXX.

basis less percent target additions objective and our we cost great increase mid-XXs this remain of points capital by OCF improved medium-term P&E intensity. efficiencies This as as XX.X%. focused our is and for start has on metric a revenue, delivering on LLA reduced a XXX we over Consequently, further the to to

remains sheet January the and for an strong of in as to or our adjusted average debt Slide has X.X XXXX beyond. years Turning XX% is as balance our XX, maturity due over refinancing

XX% roughly also We a year-over-year. with finished liquidity, XXXX $X.X in billion increase

XXXX, we and during improving In and and LCPR cost incremental And C&W’s early tenure. debt structure, refinanced fall, finance opportunistically the acquisition. raised the refinanced XXXX capital AT&T we to

$X.X of XXXX Specifically, billion XXXX January is refinanced term and secured of $X.XX $XXX C&W year, billion loan loan this senior with in we’ve million term notes. XXXX

are our Importantly, remaining which X.XX. near the VTR now a we cost of or concentrated achieve of term credit XXX borrowing to ours. of term be maturities focus in basis XXXX reduction within loan earlier pool, majority in LIBOR The points will a plus our

to we cash our P&E and XXXX guidance, additions adjusted achieved Moving targets as Balan public mentioned earlier, free OCF flow. our and

slide, our targets we will that needed and laid transaction. the targets, On assets of of far AT&T guidance out have the the right as XXXX revisit excluding post we public our close

OCF, OCF rebased we expect XXXX growth. to For low mid-single-digit deliver to

As impacted growth exposure compared XXXX to markets. rebased to our our in expected several adversely is XXXX, currency non-functional by be of

we in additions XXXX XX% expected our XXXX, trend P&E lower revenue reduction in P&E, XX% continuing For to from approximately capital our of in of intensity.

capital $XXX outlays of in free the flow, depreciating activity our our activity collection in especially, headwinds the million and the cash noted adjusted Chilean XXXX. Despite approximately for associated For associated QX more XXXX. QX are intensive phasing we targeting earlier with investment cash as peso, with

we to our phasing, towards of second the weighted expect quarterly significantly the our would cash to pertains be free it year. flow adjusted half As

up, including employees. we focused driving on stakeholders, shareholders, our our are our it value wrap and customers, intently for To our

We targets, guidance we delivering done have on year our are focused split-off. which our since each

customers are foundation as dealing for will both which Balan We continued in highlighted to products our we in innovate set continue of which top-line will and levels, growth. terms the service we earlier, for

throughout We will in transaction, the enhance assets, are years. expansion. flows increased continue we will dollar our Early processes. of the cash Operations integration U.S. evident we will in our coming the we Once margin our scale close significantly AT&T to business which OCF and of our signs Center optimization success believe begin of drive Panamanian

And core the to capital will team we disciplined that pursue tenant continue management this shareholder a as levered to how value. remain equity is strategy, finally, of we we and allocate enhance

we to operator, are ready questions. With take that

Operator

first Michael from Our Rollins Please question Instructions] [Operator go from Citi. comes ahead.

Michael Rollins

upgrades company, that? potential question. you deployments and looking versus the current the the beyond for All around to look and you what sensitized for might that trying taking investment to broadband financially, pace plan, When the company accelerating for right. Thanks strategy at the current and the bring have accelerate the decision capital

Balan Nair

Thank you. of a with about to we beyond ways, expand talked just that Michael. looked a we it. capital the a the where it’s at allocation But we that’s XXX,XXX can little complicated contractors, Hello, And have new lot. Yes, requires than processes support grapple bit actually a we’ve question lot on more builds. that moving

and really, the opportunities know our the one IRSs payback we secret of to are that feel I think, great, numbers the story how about always is we think think great. and are really going I good is because we sell. do how for to bill today And of know to company is we sauce more, to the look have we the great, we

opportunities so And we always there. are for looking

Michael Rollins

much. very Thanks

Operator

Our question comes Ratcliffe next go Evercore. James ahead. from from Please

James Ratcliffe

could. I if Two, thanks. Great,

voice the on area in or that OCF of lot year. things the there terms get First Is And just quarter towards strong an the talk of customers in driving are adds at overall? I the a and were most the there guys have declining the strategy people think that looking wireline can there. segment adding attention, Is the segment Thanks. been the for all, – flow of doesn’t PP&E at additions other secondly, capital a what’s cash on in about line? going is free and or again you or half you growth just as weighting of XXXX working – back CapEx but

Balan Nair

ask the take Chris first to Sure. first, jump second I’ll then one. the on question I’ll in

bundle specifically voice we if and it’s the adds. towards seeing part fourth declines were of targeted that you the voice recall, XXXX, On add, the the strategy. some in in We quarter

a sense. voices, strategy, it’s But As thought growing a not make product. as single product to bundled a really standalone

proposition. done quite the And focused of was it. been job we’ve we’ve on and nice I as, as on are we really the Chile, And said, well area fix provided. so where the retention has bundling in And both very his where Guillermo creative really leading voice a in like team

I’m going question to ask jump the to back Chris Now, first to into.

Chris Noyes

free with to XXXX quarter. swing that more in the half it’s certainly, what QX working going The the phasing, exception to in saw the to or similar flow James. will be be in particular, unwind Yes, there much weighted capital you first cash the second

negative it quarters and be XXXX. be won’t a it So I in was back XXXX we year have in of we our and expense terms gate. phasing of today, the the of CapEx end. that got phasing, capital sort of working expect would And expect interest back in the first Certainly XXXX, our to also significant weighted end year see would that out relative as our of the third to a recall do amount and won’t as as

cycle little of through terms in how cash free it different payment the bit a So the will be rolls flow.

James Ratcliffe

Great. Thank you.

Operator

from comes Street Soomit from Research. question next Our Please ahead. New Datta go

Soomit Datta

has first sort generally in back hearing kind on yes. down rates, Chilean how questions could if the movement of just that to One, ago? us idea couple it of the of social an it and the you showing because kind that or get how the the or you been kind How speak, give into so in just long So quarter? about is, that, you of business please. to so of operations, there. near of not on competitive Hi, of think is X% A was terms are we’ve unrest your given Chile, growth dynamics. impacting things business can either And trended perhaps? streets, X% Do and

were sort the is second good some of numbers. just then Panama. question on There And

the managed performing think I well. services business was

of perspective be what any and in please? from continues unfortunately. on you. around easing? Thank you process think a competitive that consolidation to competitive closer know any you the dynamics, process, regulatory – do could role think clarity those your do do to you Are having kind negative still the to think be Are closer I we dynamics we commentary

Balan Nair

here Sure. both I’ll jump well. Guillermo to ask Inge and to ready be as in

in last specific there. suspect just are The excited matter rulings. to On needs favorable think passed to about week the last fact mobile took that. Panama, in happen to the I They second quite actually market actually this could come a a year. for It and sure. year consolidation months regulated of very to and go as consolidation something did we question, their on the for And the down. the been XX The amended players it’s it’s XX next out for law we while there with government one

Chile, Guillermo the ask in insights really from Now, here, I’ll can back jump to to he you give good ground.

So Guillermo?

Guillermo Ponce

Thank Yes. you, Balan.

On the ground, to in of very the the disturbances after a the end last order. difficult to year, mostly situation public year, related

a and quiet seen have We more February. January

still relevant We some our effect cities no country. businesses. a While in occur disturbances few see downtowns of the in in

functioning Our today. stores are normally

Our our what we’ve normally is QX. market. showing broadband service sort continuity resilience, services good prepared and number to from especially end are the year we last The and keep be all of side. employees demand number see is our – network learned face our keep two, we to one, in fit; functioning customers, to of for the prepared We the a good

about in are We season enter the back-to-school to Chile.

we shape to in good we confident So it. that are are face

Balan Nair

make on Guillermo. Thank some Inge you Panama? want you, to comments

Inge Smidts

speak BXB we very to it with we I Also, and really BXC really clear now we’ve been and in revenues think, in market. moving last have now the but Yes. were fixed month. as operating with look, very we’re competitive But the forward very us in made fantastic we in hello. SMB what BXC some propositions and competitive strongly. Hey, we operating segment, those really the clear on the we’re Panama, it for. enterprise, stringently. our hands challenging very really, moves now growth last is that’s still, really we’ve and mobile a see sustainable propositions come I environment, very growth think bring there year starting a With in

So we good also on are we in that are very track a confident Panama.

Balan Nair

it. Hopefully, that covers Inge. you, Thank

Next question?

Operator

comes Instructions] Roe from from go next Please Kevin Roe Our question Equity [Operator ahead. Research.

Kevin Roe

Rico seeing Puerto the at and On the a of A you could instance, couple. timing market broadband integration Rico between you. high AT&T your in fixed when a we bundled business, Puerto mobile. start for for product could share Thank level,

Balan Nair

Sure. Hey, Kevin.

we offering. earlier. come the with I’ll So we General AT&T indicated really and can here And some in that products and John ask Puerto And and our close can ground. working nice the will and our we Rico, think are to closely Counsel Winter, also of bundled in with still I’ve a modify on – second behalf quarters deal Naji this really we how as jump on up Naji’s on leading the in

want you maybe here? to a Naji, comment make So

Naji Khoury

Yes, Balan. sure,

transaction transitional months, the integrating And we will expect to close rebranding. out of within have to it part As And the which is, our publicly, our Balan we as with three integration months, second the as a approximately will within completed you agreement, way start in brands we years. a six AT&T likely of said, our plan that know, our includes laid quarter. today said period well service carve-out XX and have we’ve TSA, and take

will basically through the and from network systems you we AT&T. years, As three carve out go the

So, we beginning sometime as Balan transaction. mentioned the year seeing a the synergies, likely close the after in we of start within call, will

we that’s move say, now going strategy you to that. question I But to would I forward. about can of just we As it’s our too when see early imagine as be to a bundled talk think could product, part your

Kevin Roe

quick and in Naji. you, QX, if Thank the reported you us The one-time consolidated just you QX? benefits number quantify could Chris. one OCF any one for through for And walk

Chris Noyes

we with liabilities. time as to we new also did off Yes, outstanding costs can benefits withholding in to pieces. sure. of of Wireless, million programmers up we had press about passage those a OCF But the In have liability. with the the us that million of tax in to cleared programming particular, $XX allowed And with we benefits. you take third-parties there the $XX some agreements reached that the And a settlement Cable have is for I in and direct related that release, reduction couple & are

that opposite and a In Hurricane OCF. hit, the Wireless million a revenue up $X $X impact of was & bad had as million and QX Dorian was OCF, side, basis well. it in in we year-over-year then debt On Cable impacted the on

addition, last insurance the the fourth in was benefit there a In Cable recovery. quarter million Wireless, related $XX to in & year

take the rate offset perspective it, So, numbers quarter. in out if those fourth you they growth almost and together a net from

group, you was if in across look addition, it growth million of in the QX $XX the – and in in in think $XX the my that made Chile, we Puerto where addition, I In from business. unrest, I clear also impacted by rate recovery. Rico’s have million social remarks, insurance did And credit we XXXX some $X impact million the from a had benefit

So on obviously, But look year-over-year kind when cases, blend different in takes. of lots of out basis. you they puts many a and

Kevin Roe

you, Chris. Thank

Operator

next comes Robilliard question from Barclays. from Our go Please Mathieu ahead.

Mathieu Robilliard

a I region. in morning. question you. about good Thank consolidation Yes, the had

at? buying look comments be Or about sense Rico are you the So, from sheet obviously, give is there to operational purely? So geographies the be you region in that of of process When a look going helpful. any would to portfolio, it is its you you to considering announced at has and be where competitors one your partially assets. bandwidth, would that bit in entirely of make and think AT&T ready early Puerto super maybe it a for sell, monetize to the general balance are some this actually

events you. from you obviously again? of the the doesn’t up that of get do Thank right terms in then expect deteriorate situation I in therefore the But gave rest the the top perspective Chile, your an following you had on little I it bit dynamics so a for And things QX. if impact to previously, understand of line assuming recover year, answer

Balan Nair

Sure.

announcement. On you’re Telefonica – to the referring the

Mathieu Robilliard

Correct.

Balan Nair

would we inorganically And hanging on the it us potential region. be around any to for be M&A, silly always but don’t in our not comment for hoop opportunities

about we And And assets in say so, I knowledgeable good But areas. some all very they’re all those probably that’s are about it. should assets.

before, have currency are there’s about I the very and our And but per any areas, on levered free share, very said get that one really M&A of Chris goal both be And got is bigger. And to I things we I that transaction. to we primary we disciplined stated look in us will at this. activities. think flow Some accretive smart it’s be is cash also to and have not issues,

Our goal is to create value.

Just interesting is to Creating to not that getting interesting us. bigger us. is really value what’s

us, Chile. business. indicated it’s mostly confidence second around not the you earlier to Guillermo It’s currency. question Your operational. for issue in on The our Chile

Our are operations great. doing

Our great. stores doing

Our channels us. are issue for It’s fine. really a currency

is in bunch business price that. settle will currencies Chile whole our that’s and the copper So – But It’s for and operationally, driving in now, the currencies in fine. will the in the bunch whole very economy a of committed the of to and when But prices. yet and driving medium feel get Central think again. of Chile Its The – other coronavirus and settle There’s they actually completed unrest. money that confident currency long-term. see will It’s movements, Bank better. you stabilize things both China. you. currencies. we that And that’s it. it, social It’s Thank spending prospects it’s country Chile the has and oil. I the haven’t not things Right a in

Mathieu Robilliard

you. Thank

Operator

Our next question ahead. comes Please from go from Matthew Benchmark. Harrigan

Matthew Harrigan

down you When FX-neutral Puerto growing at VTR. actually you. Thank in relationship you’re look per more & X Cable I know X% you’re the ARPU at in Wireless, the Rico, Zs customer vicinity. importantly, and at

QX? And your some then it So relationships. than on to know, SCTE changing was quad-play, just the in there U.S. markets. anomaly more surface, in-house of it’s customer you technology in can adding are Because with of And peers. volume that. strategy can’t encouraging. base, a But you. considerably the like had ahead the mobile how some look having extent, and capability you’ve fixed And But you’re when talk RGUs be old of about it’s at days, putting incredibly from Thank you a seems middle-income everything CTO network large it sort evolves? I your know installed advantages hat on as secondly, I

Balan Nair

Sure.

increases my a – price you, of on clear We volume. – stabilize movements grow side, Company for I’ll ARPU – to That’s our Puerto and a it to our we I’ve is – see. I really really but And business a Chile, the that’s to been are basis, the of also Rico take customer want business you maintain as per really And to how sure, on the us. lot bundling. grow this based On ARPU, think problem. this ARPU, this in in is about volume. want This function goal started becomes what but in available we to on want tell is internally, managers

be You’ve open your just increases only to take future opportunity competitors an when not for because well. you got but continue competitors, to arbitrage very you traditional careful as price

are we focused really work to growing on gaining hard easy of the train to price just this through volume, the not our increases. So managers work business of taking be trying

So, I’ll that. leave it at

really in benefits Chief than that prepaid. our Rico, to are quad-play, the this the tell AT&T how be you team, business, triple-play. Puerto our quad-play, creative primarily postpaid postpaid. into on Officer, is postpaid, his I’d XX% we we But on Betzalel, in very Now, is are working as business not is Operating rest together going move in future trying to in the who of where with tie is business of see business us because that to prepaid lot hard mobile to transaction, more and of product a you, much the like I’ll seeing as areas the

more We’re progress it to bit a started, on we that’s to the very And and hybrid more making getting on are to even little like going it a triple-play. in ways so look make business work XXXX. has prepaid then postpaid attaching and way, in and some our we at looking creative experimentation are

Matthew Harrigan

Thanks, Balan.

Operator

We Sachs. Please next comes Vitor question. Tomita from time final ahead. question Goldman for And from one have our go

Diego Aragao

Hi, good from morning. Aragao Diego This is Goldman. actually

just question So, related on a follow-up Chile. to

have fiber We companies offer and it to some in been seeing market speeding make and up that deploying investments broadband.

there, not of how penetration growing the affect broadband servers? market, question of my guess, OTT drive only I given also but you. some business Thank offers So, that in in your those the and this number is, could cord-cutting

Balan Nair

well. in Guillermo in, to Okay. I’ll a and as I’ll this answer ask jump bit question,

engineering seen you’ve areas. also tell previously changed are in being building our jumping that be and our with up that that we’ve aggressively team I’ll those build, has by build neglected. the is returns previously have way you, we has the all now to of we’re strategy come is now primarily on have And D out attractive. fiber-to-the-home a is very to think markets areas, strategy into C out avoided, the reason we of that we the because fact areas it the And driven most changed, But built into On a going our these and and clearly, at that operations positive. cost kind really point very

back And are as as release the we’ve want those of that target third made a proven to that and technology fact, expanding in we primarily well as operation. second new-builds And we year, areas. look if because a press in you Chile, matter of those last we our quarter

with for those us of it, I’ll areas are VTR areas you’re yes, right, them. to up. you great fiber-to-the-home coming team We go his in in some tell guys. are opportunities those with of you head-to-head those Boy, are with think Guillermo So, customers of you personally brand there’s And with homes you, and will here, Guillermo, and and guys the the we bunch I VTR – guys coming and want saying, a went brand smaller some

think positive. been really we so, it’s And

want you of maybe a things Guillermo, couple as well? say Now, to

Guillermo Ponce

Yes. Thank you.

we’ve the our fiber, to a also with share the leader is market fiber And Telefonica share, now, only Intel either that fiber, the competition fibers. the proving winning now competing a additions Just against yet, add with the market, fact factor. been Claro this year-over-year. value the – decade not fiber, for all to to be leader but the our proposition, brand, be in VTR tied in in continues the with newcomers’ consumer

Balan Nair

super-growth offering, the competitive managing is your is on the of everywhere launch second And front. code-cutting product. elsewhere. finance in TV, dying itself, and question it focus well linear our Hub product well. not And team, new think Guillermo. video this more is in – with a our the new but for Chris product. the your technology it the COGS – our we and not we in product like world. and And And specifically, region second video proposition is has it’s operating while through is the we it accelerated as very The happening thanks old it are leader not as And a my on the as our code-cutting, it a team on importantly, product. big mostly days, not a dying product This But are hasn’t especially and as like

Diego Aragao

you very I question, second Okay, just perfect. in Caribbean Thank as that. of and should related This customers the you region, for close most to the technology the let’s years? if is how think services among like parts helpful. penetration real And the getting to say, XG in in the overall next and you. may, cover, are Thank of you business the of these couple trend your how regions, a is those

Balan Nair

our of under-penetrated XG remains places. Sure. in most

Our of best in is course, Chile. penetration XG, in

interesting pretty rest In We Bahamas still. think are it’s consume the get and One, under improved well. for reasons. makes entrenched we certainly an with people high. as more it they see LTE, two with see more product product. XX% more And I want the And huge and – data an is certainly, more Jamaica, a low. that customers it as Bahamas itself. with consumption, But still data who postpaid opportunity example, pretty for ARPU secondly,

of getting team, done are folks job Vivek once in proposition our transition consume are have consumers product. right My about big than hard And lots LTE. that’s really out data. a rather teams his they really would the a of on product the have have to figuring and a why good engineering People really that And coverage are postpaid prepaid data up. we excited people working

commercial following transition we with our how that customers fast can see to are Now, teams LTE. on to

Diego Aragao

very That’s you. helpful. Thank

Operator

That to back I’d Balan or today’s for session. any will Nair closing remarks. to additional question-and-answer conclude like hand

Balan Nair

for Sure. call. and joining Thank you operator, everybody thank you, this

We XXXX Chris’ on XXXX. good that. about guidance a in year in excited achieve really can think XXXX. forward we performed to look are how We we is spot We on.

also transaction. We’re AT&T the excited about really

close that the I as I by year to last races. We off said we’re think year. And this – like think will of middle well, I

you talk and everybody in thanks So, again we’ll days. XX to

Operator

America’s this Ladies XXXX Year Latin Call. Liberty Investor Full concludes gentlemen, and

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

Liberty Latin America (LILA) 20 Feb 202019 Q4 Earnings call transcript