LILA - Earnings call 3 2023 | 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 Matt Read, Treasurer of Liberty Latin America.

Matt Read

Good morning, and welcome to Liberty Latin America's Third Quarter 2023 Investor Call. [Operator Instructions]. can America's under website materials of Investors presentation Latin Liberty at formal be the found section Today's www.lla.com.

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

available being As website. and a call Investors is reminder, will of this be under our the section recorded

are may statements, other including information our to outlook, expectations respect the and include forward-looking remarks growth announced prospects pending company's not and recently its transactions Today's historical that fact. with statements and future

by materially Actual those from these results implied statements. or differ may expressed

information, report more the quarterly factors XX-K For with most refer please risk along associated most the SEC, XX-Q the discussed to America's Latin press recently recently in the filed report and on Liberty on Form filed with annual Form release.

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

refer most accessible our call, I call In financial like the Investors financial the now to found is this be will addition, appendices our of to section the measures, the this to would reconciled CEO, in to to over presentation, Mr. on comparable Nair. Balan which turn certain can which are non-GAAP under we measures, website. GAAP which

Balan Nair

and After then CFO, Presentation. company's to that, the our everyone, operating our by a Thank I'll you, results performance. highlights questions. Noyes, Matt, America's an with get Results Latin will of overview we welcome, segment. review straight begin to financial group Third Quarter Liberty your and with our follow reporting will of Chris

as the prepared them region, my Q&A by joined invite team needed and contribute remarks. during will I our the am across from following to I always, As executive

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

and additions X, the third Slide for mobile Internet our quarter XX,XXX and across We with had subscribers. strong another highlights operating on postpaid quarter. Starting

products, X close strength our to which have commercial of these XXX,XXX Over office. subscribers across year, added we shows the past the

passed, and We in activity Panama. our quarter continuing Caribbean XXX,XXX in and homes upgraded all to XXX,XXX by over are the also driven & invest in Cable Wireless networks with year-to-date,

our segments later We cover in rebased in a driven structural in across is performance which this significant million X to I primarily that This $XXX Puerto representing by and not from apart OIBDA reported one-offs. the reflects Rico, increase. all year-over-year we in will best growth double-digit XX% years our emphasize adjusted of of slides. growth our efficiency growth want improvements operations quarter,

million buyback for stock capital and continue between in quarter. convertible the $XXX with allocate We to repurchases program our

Through the amount end reduced of $XXX bought QX, due million next of our our and convertible outstanding back our $XXX XX% of $XXX -- of million. bond stock we year by have million to stock the

integrations. anticipate will seeing key growth over XX%. rate year. In with platform. Rico, now our been business are benefits We customers to QX synergies, next have we the driving making the of we XXX,XXX into And now Puerto migrated progress already the are Finally, of our Panama, run adjusted process OIBDA in

scale good within week. this we of target a this also still a is outcome. project our completing However, very transactions announced few highlight of to a multiyear accretive X excited months the I'm initial

U.S. I'll section. across a Virgin the cover infrastructure of and tower end spectrum sale my in of of Rico secondly, markets. the Firstly, subscribers at acquisition both Puerto the mobile deals and the and of number Islands our

positive adds, postpaid quarter the and ads delivered year than Jamaica. half with coming with I'll another of slide in on Caribbean. in the we X. subscriber performance segment. XX% review begin Slide continued the first we despite recovery with tourism full-stream to it being Turning QX, low mobile in more across initially operating Starting the from in of the XX,XXX noticed the with left our Internet C&W season, our The

FMC and volume improving Our drive churn our continues these to levels. growing in lines performance product X strategy

and mobile where we year, business revenue pie XXX,XXX and rebased center consumer the have of revenue we achieved the been slide XXX product. in would fixed postpaid over by this by subscriber to nearly earlier growth last mobile. elements have Caribbean's was The the discontinuation by the rate Adjusting BXB followed for transit chart points this consumer growth the net XX months. depicts nature of largest basis of rebased with Year-over-year Moving driven internet and our growth X% that of the adds C&W the higher. announced well-diversified

the of our Panama in continued months Starting momentum C&W last bundles. with Fixed slide. the RGU Moving segment. almost service XX,XXX adds XX left across to in the X our on Slide net

push into XX% can our first lower-value you ARPU where in of was In HFC through as increased We the copper to of decision FTTH impact have years. losses our we activities. XXX% conscious are passed over as of with of all strong removal and quarter either see integration X segments or residual our year. from driven the mobile, reported This reported via in reduce QX homes market well network by a the some we postpaid next targeting

center the year-over-year, largest first mobile growth of -- XX% fix year XX% fixed but revenue BXB. both Moving with of and to together and from which the trends of continued by is X% recording our respectively. area, half Positive the Panama, the drove growing. growth of product BXB X product in stream, the and quarter. strong the our fastest of the slide In and revenue revenue smallest

Growth increasing plans. in churn play our fixed our network triple we supported fiber-to-the-home strategy, was in across and mobile, postpaid. saw by on and prepaid reduced in In higher from both volume growing revenue successful commercial penetration focused

slide. our Finally, lower of the in integration update right the to

significant have progress operation. made Claro Panama's We integration the with of

This financial of complete consolidation integration growth people, network to optimization is with our supporting of Our now. costs commercial and actions peaking in channels, quarter. XX% is addition the These driven including have overlapping despite significant synergies the sponsorships. close sites sales progress, advertising to in

activities the subscriber and delivered X we past a on and our have supported Liberty over net Starting year. left the Next growth additions. Rico. in slide, the investments very of X% to commercial Continuous another quarter in robust network Puerto Slide

Turning #X across share stable with a losses to subscribers. anticipate relatively to grow position XXX,XXX our been We from We maintained in the total of postpaid activities base mobile. able once completed. X,XXX a being have net market migration

acquisition support announced of Our Spectrum will these plans. growth further

with quarter levels connection of year-over-year subsidy all optimization gains our launch first center new of in the XX% and the iPhone toward to fixed customers the by in for high-value across the year. services. the driven segment. recorded In Moving the revenue our continued with we half highlights slide having XX fixed the growth targeting strategy, mobile, reduced subsidy in investments previously We

the were Our previous the more higher XX launch year. iPhone than sales volume in than XX%

our to update. Finally, integration

many or in that incompatibility factors, sudden XX the software prepaid We in number being devices, fully near our activities data solved which sell have due used as stack. have to our has a a operational will approximately moved customers. postpaid migration now our our down have migration have products progressing with iPhone Android of launch is been and issues be solution XXX,XXX IT These we software to delivered quality, and such customers to The been IT platform, new and in term. to complexity slowed itself and

to the continue these technologies and We as manage monitor we platform. scale

doubling our under software of to impact the an and be third-party contractors will costs TSA, licenses costs. there However,

We equipment onetime hiring migration. experience in staff replacement, minimize handle our from These we in to churn best decisions integration will In by more addition, invested additional XXXX. customer migrations have to ensure to call activities in and now conclude the additional April centers. and result spend possible anticipate

we earlier, important material a regard do mentioned not the context as a of project. shift in I As large this such and

on X Slide quarter showing of subscriber slide. we to our encouraging growth in to year. in mobile, most fixed Costa the the market. returned Internet Rica. We reported Turning and strongest stabilization our of left the In Liberty competitive Starting QX,

with adds increasing XX% by XX,XXX. subscribers fixed growing and base. net of FMC terms been steadily now above we has in our In are penetration postpaid

close our Consumer business, is over consumer product remains XX% operations. then center share and BXB just of fast-growing fixed our the of representing Mobile small the to slide. This but largest by Moving a followed revenue. with XX% to

smaller be to are our with integration some activities Finally, supported activities now early year. anticipated next TSA migrated complete substantially

has Typically, lower underpins X customer rebased growth usage. X% the the revenue accounting CapEx Networks we recognize line performance Liberty of and driven which Wholesale affiliate on and mostly revenue, deliver a our cash QX, through top basis segment's the growth, in wholesale requirements, slide. the Slide and flow low revenue a middle delivered USD-denominated segment. the in single-digit to significant Running for conversion. cash high Moving steady higher by XX% capacity operations of

and, of region differentiating a left to a IT driven Our a in America, in product. of XX% there's as posted the XX% the relation unique service demand markets, the This the as networks generally. low opportunities for higher on representing brings where remains multi-ring the the remaining of infrastructure, for factor particularly our in a solutions connectivity by reliability. have Enterprise other shown share, is slide, increase, our penetration and revenue high-growth we with low Latin group across significant market a services area and importantly,

segment. the of slide for highlights some the to Moving the and right

Following branding at the accolade awarded networks recently Global our marketing we Carrier were successful best Liberty Awards. to team QX, the in

network. to of solutions deploy innovative our to support resiliency also continue the We and redundancy

Moonshot successfully we Google example, For deployed Taara, a technology.

the and past summary transactions the a XX Finally, in weeks. to of announced we have Slide

acquisition the of Spectrum and Firstly, DISH. from subscribers

Rico Our acquire Puerto reflected is approximately this of U.S. Islands deal subscribers. Spectrum XXX,XXX in megahertz the and to Boost a to combination commitment and of Virgin further XXX

us increase more XG capacity, as will transaction well across prepaid allow and network which Upon X note with our will in our the next expect of closing, completion, market. that this to add we purchase strengthen take consideration to from valuable will as increase to that payments scale mobile spectrum place provide speeds us be Important leading the annual year. the date further spread

from funding expect sources. payments local come to these for We

high-quality at we mobile an a very in the partner are value pleased Towers our have multiple. of assets attractive to infrastructure X,XXX announced approximately crystallizes agreement cash that Phoenix a tower of with Secondly, flow

with enable Latin shares. close, will which using continue into enter long-term proceeds expansion, We support will leading America. to future reduce back mobile services deployment including and network to the anticipate agreements Caribbean across and debt to We us lease the our delivering transaction third-party and plans upon buy customers XG PTI

we focused many top as in with positive flow integrations good Puerto coming on feel adjusted OIBDA end our cash growth our of Rico, momentum growth. We add year finalizing very contribute further the line of years. a and the approach Panama to businesses the will and and we in delivering the to which Overall, remain

a opportunity for of transactions lots business and talked have As has through management the growth we, I team, as just that ahead. the feel

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

Christopher Noyes

now Thanks, Balan. through XX. take on Slide financial in our you I'll starting performance greater detail,

reminder, a at we of XXXX. deconsolidated As start business our the Chilean QX

of in not results the reported VTR. include XXXX our So operating do results

X% growth driven by and We higher C&W a was across $X.X basis Revenue saw Liberty with many in markets of performance Networks. on quarter. the our traction positive commercial third rebased billion at Panama double-digit in

As business Caribbean in quarters, decision similar mentioned voice QX and our to was discontinue impact was prior which transit a C&W by a revenue revenue impacted have for million BXB of XXXX QX. in about reported $XX quarterly arrangement noncore accounting in will legacy

grown a year-over-year. would Adjusting revenue basis by QX group have rebased this, X% on for

X adjusted efficiency mid- reported with to our for $XXX structural anticipated to are OIBDA. XX% OIBDA was in further we Year-to-date, years result LLA the of growth Turning growth million, rebased of group, for deliver target adjusted and reflecting QX, high in and to to best growth rebased improvements. our year. rebased positioned We this growth single-digit X% well quarterly

additions capacity. revenue. and In build, column, spend was were new in directed XX% our of third or million to our QX the Nearly XX% P&E CPE, $XXX quarterly of upgrade

continue step over upgrade build up activity our sequentially, to the and XXX,XXX quarter. new homes in reaching We

of last our quarter. we guidance in track We for adjusted of XX% the $XX delivered are on target million XXXX. to chart, the FCF deliver In of revenue

be generation strong for financial that As favorable years, our year anticipate seasonally working free performance will we flow substantially the reflecting weighted in adjusted and to capital QX swings. our cash previous

FCF remains adjusted interests. approximately $XXX Our at million distribution target before to noncontrolling

in which highlights on year-on-year. BXG C&W rebased payments, Caribbean. been a We from transit and revenues the growth Rico results, recently, rebased target the reflecting adjusted next left the materialized prior rebased revenue Adjusting due would growth including year, million Panama, delay dependency in XX% in higher $XXX could segment Puerto in have basis. reported to with in customers $XXX that and timing beginning fall OIBDA, BXB year the factors this variability resulting million have XX the X% the of of impact for into of X% year. Slide large and migration Several particularly on QX, on add our period,

was residential led growth ARPU price of driver prepaid inbound roaming. with mobile increases primary through following the postpaid our in Our earlier higher expansion service efforts, revenue year by and

rebased quarter OIBDA higher improved adjusted XX%, costs, than XXX with direct including strong prior around growth the was by the than Our our more driven basis across many operating programming quarter. lower finished leverage We margin points islands. of a year and

Moving from grew $XX in value strongly an the fixed rebased OIBDA increase XX% Panama contract QX, QX to was in growth million over residential line of integration. & growth past we OIBDA growth. Wireless reflecting million Rebased year. the Claro Panama. Cable as revenue driven by wins top contributed business captured and Adjusted in subscribers $XXX BXB our XX% in of OIBDA and CWP rebased adjusted and revenue adjusted

middle XX% and robust in million operations, OIBDA for driven XX% adjusted Turning Balan our Networks. in We and revenue performance. in both million revenue performances wholesale rebased revenue growth as $XXX an our rebased OIBDA by Adjusted rebased Liberty highlighted. was growth to generated column, growth the followed enterprise increase. $XX Year-over-year for

the margin free a quarter margin just adjusted very XX% revenue. Our flow for OIBDA of was our at XX% below stood and robust cash operating

this right, as detail XXXX. X% $XXX Liberty in million of adjusted of was the decline the QX from I'll a Rico. reflected Second rebased more a QX million, XX% OIBDA cover next year-over-year to Puerto decline slide. on revenue $XXX rebased compared reflecting and of

to Wrapping growth Year-over-year QX of Rica OIBDA as in million lower on adjusted growth delivered of declines we Costa flat mobile right, up of revenue plans. from flat reflecting due video by and discounts in was OIBDA ARPU increased far and revenue and ARPU rebased RGUs declines retention residential revenue with million, the was offset revenue fixed rebased $XXX higher $XX subscriber-driven XX%. in adjusted and

year-over-year, of in have significantly U.S. denominated benefiting we the OIBDA Rica Adjusted Costa year-over-year to colon expanded the costs as strengthening from U.S. dollar dollars. the certain

with growth, continued to Slide of was issued negative million review performance Rico. a Turning our the slide, offset in revenue XX revenue FCC funds Starting by of stable a mobile Sequentially, the upper in reduction financial with fixed in BXB rate increases this and to mostly to detailed effective we half year. Puerto X%. strong Residential in to growth credits June of decline be $XX Year-over-year, or reported customers impact with revenue year a following Hurricane fixed related a prior of and Fiona. and

USVI. benefiting June additions roaming The in decreased increase subscriber months. contract was totaling also and with by net impact to mobile reduced past XX,XXX over driven as the in ARPU year. by this including revenue Residential of due by asset a recognition the in lower higher was driven prior XX in AT&T amortization Other change reduction broadband year-over-year, the agreement revenue impacted FCC funds as our well increased year revenue the from

the Moving direct operating increase we related and to free sales iPhone was as This adjusted of sequentially costs includes also and to the lower part customers QX to an Balan slide, strong a Labor in the offered to part one-off in handsets higher launch their Act. with credit CARES migration. costs related in mentioned due increased have the OIBDA equipment both lower due half to XX costs. to of

increase is the in The services decline costs of year-over-year by and lower OpEx professional to in impact related and explained migration. higher revenue mainly adjusted OIBDA the IT-related an including

at due in with to to costs migration continue business ahead the duplication AT&T. expenses to a related TSA to coming will level during we our anticipate higher-than-normal have the quarters, run Looking we of

maturity features coupled rates. Slide stack $X sheet XX% fixed structure end consolidated we a and balance result interest on in on the revolving beyond, interest in QX, has our significant debt a of fixed Important overview our sheet, group. more the $XXX to of The with XXXX Moving availability of usual had our is million total XX. debt, $XXX long credit that of XX% liquidity note of to billion and At lines. balance due million robust capital basis, cash under than our of or for and

leverage, In of progress of leverage we levels have at year-to-date and year-to-date have we made QX in X.Xx. $XXX the about a our million $XXX terms slide, good million net convert reducing combined right In the $XXX of ended million bottom and repurchased of equity our of including QX.

we with retired $XXX million will July, Importantly, about we have and due in next ample year to have convert liquidity manage next our year. of redemption this outstanding XX%

our the to closing Moving slide remarks. and final

leverage to growth Integration, for BXB the delivering in additions and a helped growth, execution Operational adjusted and quarter a rebased be deliver in top to contributed of strong expansion increase primary us. synergy Our consistent continues quarter. subscriber focus realization double-digit a line OIBDA.

movement has While their in are completed. benefits execution time inherently some will complex, feel projects highly been lines, once good there these about we we and achieve and the overall

During covetable in leading our networks while attractive notes the to our equity continued in at repurchasing also quarter, we invest prices.

we commentary value by key which noted lever for us. As today, the continues a been be to active of have inorganically,

are February. positioned operator, please up have updating We in look to questions. With strong open it for everyone to a forward and QX that,

Operator

to goes question first Michael Our Instructions] of Rollins Citigroup. [Operator

Michael Rollins

would quarter and get about the with of improve? done and just the First, more performance the and how may detail costs journey duplicative Can year totality and all year? much on sequential of context April the you for the business segment the of Thanks integration, focusing how a color next year-over-year the on TSA weighing talk of Puerto and the fully just the little in of for in you be changes. how get integration to the Rico. terms maybe OIBDA And this as on financial provide

Balan Nair

type to our kind going synergy still by Rico XX Michael. quarters and that. the a Puerto to are perhaps We we Thanks, get delayed of million had in for due of slightly Sure. signaled migration. a delays It's couple

we're way in And the we of for is There's AT&T because paying stack, own for a the are the is the licenses our few the for only not think impacts us. One, on but here stood there delay network the in it about that. -- cash paying now up so TSA, platforms, and we both IT and the migration, the impact. services the also an all definitely we've already

this period. in kind of during like costs we So doubled up

at feasible over X The determined for second looked up really an have a bunch do or come come These to software up last there's we software an the not path things just as the there just -- conclusion months Android example. whole upgrade. so a as come handsets that from we few part on is, by devices were those Android that's migration, of the AT&T. us handsets are like They and AT&T Samsung is don't that that pushes from where

it's out, So do a migration we a one terrible what, release And customer devices comes not experience do it's decided, work. when suddenly on to some we've and where cases, floor going a in be different the Samsung the the with just as know AT&T. you

also we've decision so taken during the And proactively these to start migrations. replacing handsets

that's So to we that budget for. cost a in also us hit didn't even going certainly

TSA year, really and as and little the you'll it's part, into well. stuff, about internal the the next quarter number our on us So cost quarter as things will bit handsets end costs. impact be a as most of there's next of of and less about year year a towards well first the see own that the certainly the licensing for But second it and bleed doubling of

we're coordinate And that that drops about things. customers for still BS] of contract AT&T records. all will stack, have June zero. migration, for to in to the do bit, then months I Two of but happens need completely in our We can do, reason regards we side. But of cost we One, a what plans with end we of any be an to that we promotions think go end the us start off. today, more implication on after in bunch systems. things That's on to really it be access our prior our at big access lot changes FMC couple positively. beginning migration that TSA cost And a we're nimble whole the our all billings, to a is, operation course, a Now still a call doesn't of from postpaid going in offerings, we're and AT&T. [ the own The over to start devices, with the doing the standpoint, completely going going that can quite lot of a after of exclusively to and to are the we that the doing January, has to want where by doesn't selling still period need we may April?

of lot it a flexibility and Hopefully, that you'll So a well of gives as a months system. few as lot us later, take the out of helpful. operationally cost was

Michael Rollins

run rebased I'm back in the in by It us just in Slide And I'm stronger at of performance much you growth those Liberty XX, how give Rica, OIBDA lay was. where C&W Costa of the Networks a And Panama, can and financial out looking the in there to sense segment. you looking of at at were some quarter the some a avoided that back that considered that source strength rate to costs point. some things come that of a benefits extent you are maybe be seasonal or levels point transitory need that like strength maybe any might or versus impact onetime OIBDA

of trying to in adjusted new these you're parts OIBDA that business? think just other durability your the levels of hitting about So these

Balan Nair

Sure.

hitting So our rate. is the we're kind actually new of OIBDA run that

also included the So in cost lot are Costa that and the permanent. some look but Wireless, necessarily in Rica, taken a not synergies, reductions you in of Panama, synergies OIBDA we've serious at when Cable it and already

of restructured our upside that would give some good We really line. would be? One content a Cable what So & in costs the that us be on Wireless programming. lot OIBDA

the area us other increment that, OIBDA as in to give addition well one is that the In roaming. incremental

are levels starting the are Cruise not pre-COVID, ships of to to returned there. out travel but has again. roaming people Our

so as well. getting that we're And upside

may but a we've that never expansion up hit roaming you can that pre-COVID it's certainly come It's think say Now an there. of last over and down back over year. the levels, to state to we kind steady go years, going kind but of

in saw those to quite a bit between of So revenues. OIBDA addition and two, an you there expansion

growth out, than As year-to-year larger on transit Chris showed actually zero in the the it. had what is basis is some revenue pointed here of a that of traffic margins because

because that helpful. here LLA, a matter the fact, It at I actually level. be overall are of last year FCC when LLA that X% about look there from exist was close of we the that should at couple year. So like And got we year, as one-offs X% don't to a there's last that things increase couple a funding this like of a showed

away. went that So

to quite So hit a us. that was

think for has to at top normally and normalize across contribution wise, really actually the And of so which it, feel grew I growth you kind as you growth of that's things an margin is a well, So bottom OIBDA, on about if more the expanded line, about the operation. we LLA way operating healthy some XX% X% good look line I and would why run X%. a of the than

Operator

Vitor go And to Tomita the of next Sachs. Goldman question

Vitor Tomita

from questions side. our Two

The Puerto the also Rico first on one is integration.

how came taken and and the how give up that frame integration time course time Rico. of you under not the color could now more on expect decision frame? decision on us the new during to comfortable did the if you In you If extend was the anything why for integration particular, the are completing with the bit a Puerto

navigating also of offerings and update still terms how mobile you scenario, And competitive this promotions recall, for and previous environment. our of question you a calls be in on and Rico, some Puerto a was on was could the conference second topic of bit us on would competitive an a in the been specifically I difficult have if major it since give

Balan Nair

those Sure. Thanks for questions.

that And the So frame to close migrations. migration time August, time me at of of a give this the were the still we could that in migration And September into up that made -- of -- was made some little frame. multiple we point, migration. The decision hoping we decision is color it. September bit you expand let

So day actually us window we have where subscribers and the where push windows we and each can is a AT&T window -- between through.

it's out. like port you of if So really think a regular of kind basis, a

from into ourselves. it a be So a port port would out and AT&T

anticipating of So to migration. migration migrate folks in of was releases. not we migrate. a about period, were things. One, want that's decided We a like right X handset on of over do in to we've would bunch were that window. XX,XXX that the there not And kind the discovered we guys issues. each the required release. WiFi. software specific And software the whole to day a the because These have iPhones, the of above. feature have WiFi a like your voice And your feature on over a even our a with over Android, That of And the to of release XX.X iPhones, lot users of get when not just to stack and you that migrated into we go room, lot not into house, you some

we're for the a optimize change and experience let's it's we it's the do anything. only said, for just up. optimize we or we of customers, cost the So said, experience of you learn do of mess to guys such not is we going we for customers. terrible because through But ran really everything good or these experience we And all if things, as optimize okay, our

more didn't and windows. iPhone problem there back new -- have math operating launch AT&T do the billing just facets really our getting this. the then, hit of in optimize of was the this this. And stack. needed we April turning methodically, Setting are you're March quite we we down like all XX. make through whole possible. people a the almost runway up Usually, our because the all a February. of said you methodically buy the thing on want get supported bunch just we're of XX when Thanksgiving, during get a up you get sure the do that we on a of you to network. now windows number We almost unusual engineering we that this. teams, Rightfully which Christmas. but to us, It's we own period. windows, and end to for, with And were close second January, windows. The and and as the and IT time in backward done lost XX We'll in to the Thanksgiving of Christmas new getting a like to as the holidays, iPhone then but shut whole we've In we to your you teams, we with course, windows we're to if do argue case, go, XX AT&T smooth going went network, system this okay, bunch April There from and We AT&T us And customers we beat into it and and line, them. going okay, that enough have, migrating everything. core April September, a like and lost because the hard comes this let's So February, math, during easily problem mobile windows of working company we migration. didn't AT&T. going said, We're need windows whole still to January make were so, through the we lose XX let's then get think

of be United because stacks radios, U.S. of and whole core core bunch security in own we have where we but is other part network we have we the Puerto redundancy couldn't Rico a kind up is new of radios. States, didn't core. that and other we with a use us our we Miami, has mobile the network privacy laws whole stack Puerto because towers, any the IT a and have And didn't of that as our or have to a example. have then our Rico. to from own We the in Rico rest and the puts regulations comply stand Puerto to U.S. situation in our we have an We of the the complexity And mobile

other you migration And the you This talk you many I'm we're and of quite to going can one any abandoned proud -- this elements. is or either CTOs where the really I the you within in really In Asia, a Usually, on months. actually quite, America, our X.X thing IT magical. I've when team. you're to -- to run team, not or used could of complex. North really the we CTO case, come I I like is it So of tell never this missing But any of be year, projects. by been tell get project altogether. these Europe use to you, you the years

Operator

Our Morgan to next question go Cesar Medina Stanley. of

Cesar Medina

The first your question is guidance. regarding

that Can fate the there bit mentioned several of on moving the direction of on BXB. regarding a please And you you positive now the digital maybe second, of for little parts protests it that sense and availability have the in potential country, more magnitude the there over variability then that uplift And You target. country? then plus that what in is operator very third that the Panama, is a Is sustainable? quantify is [indiscernible]?

Balan Nair

and I'm when I'll as these questions, going then done. to ask well jump Sure. Chris answer in to I'm

very thought at thing. we whole quarter. those salesperson. revenue It's business the as just It's to team the nonrecurring that it's paid where we're itself, our and have keep We're in end two as same But there's nonrecurring about don't December. may lot to ] $XXX on we our guidance, about contracts, you, of at And we that BXB reason every that's write a it. in, of million the we deals If if monthly the and the best to it's are in actually we it. we're more third and of the few up not but year. month lot is more comes on then year we lot a revenue. should recurring team the way. the but Chris will business and going growth, thought changing of gets feel your we in, It's kind business, tunnel, that bills of the Right a the break be $XXX a there, BXB. migration we the very X/X equipment We a BXB And it delivers one out, see about Panama, X/X about hit Chris of large we light the heads things. of maybe issue. guidance, BXB timing the highlight we that in two spending it's and every a at year. fourth that. the and color usually sales on Chris I by [ will give up. One, and a like our highlighted, And the million November confident. second we government A now, end led a this And million end, that. In segment, business. customer we there lot there following you business then One, On January. large BXB closed of of $XXX know flexible enterprise things in just NRR And the Panama, a handsets. contracts, everybody going and half And come pointed of in, come it doesn't -- I'll tell like -- that fairly year, in cadence think

variability So of I'm segment. BXB business on that the not worried that the about

bit. the On is what in It Panama. it protest, impacted is us it has a

and as a of level other regions, in shops Our A dropped of know, number -- it have happens key bit. lot been door-to-door at as traffic the have the happens at retail one shops our level, well. sales closed. these And closed the our you have quite been shops foot a of our

But little have of -- on been So every our our sales of backlog protests week. We a bit. have lot these our in I sales ramped sales. increasing. go check down, slowed And did a numbers through kind it installs while

recover. soon as is as there we protest and out the installs this gets should done, So

with Chris. I'll to that, So us pass to blip financially. protest. With of the don't much it's hit I a expect a temporary

Christopher Noyes

which Yes. Maybe both just key particular a little since around there's migration, bit of the we of One our in have color points. the as is is to the inventory potential delay headwind stack, kind new in we two the would see, handset have we have one then running getting holiday would double AT&T the migration. have obviously the and to And inventory costs second, up TSA into than and the normally carry basically related and We platform. then costs additional monthly going we season.

that continue we I headwind the our businesses working that given meet greater of produce hard group $XX free But of start the mean I flow million year. had we say cash across just around strive our to the would side. and would driving sort are to the to than on be the conceptually, target at

Operator

Research. New Our Datta next question goes Street to Soomit of

Soomit Datta

also -- a interested that. please. set I you on got an And Puerto on back Yes, be I'd then the Rico competition. we if answer think don't couple, could mobile

that more? And synergies as think looking XX as as So are from kind much is I coming coming think, little previous kind -- those seen of we've So But a in uplift just million the plus from we how But of first flow, that all, a how then on into should costs layering So here the think mean, mentioned cash was falling question. of we same moment about Panama? theme, some away? thinking look as about at as of about you the in well. more just in intact. is of in year, secondly, bit next Puerto $XX looping Balan, extra into I we free synergies much synergies still the now well market the Rico forward, of million well kind through of the can

back to about what run sort I'll of in basis please? once second. question. trying process a uplift flow is rate Just a get this feel first cash integration a That's the think on we completed, can for maybe come

Balan Nair

to But of be $XX our synergy anticipate don't see the I we'll Rico. in us year flow, million significant cash cost next not full It anymore incremental free probably year. next mobile. back about is the bleed the come Panama, because the changing going $XX synergies Puerto I'll PR on forward. that million would not Clearly, annualized. on guidance Sure. the In

there's Puerto year, probably over million the like number captured we've Rico And this So of lot won't -- the year. what Mobile? top number so, my that head in I'm above next my the $X synergies we've an million last you'll from That's try exceed see reviews. On or going to this year. and a the that year, incremental captured next $XX

Soomit Datta

Yes, that was the question.

Balan Nair

$XXX I last We At on happened iPhone subsidies. T-Mobile were when really spent to buyout $XXX about So there's -- good year, things offering sorry, to million mean, went were it. we actually two -- feel AirPods. that they of XX, pretty end there. the paying contract. their They aggressive

and implications We the end Chris very happy through and -- the with flow matching of year course, of not matched I that. free it have of were last cash

we can noise but adds . So in right slowed of the you ] flat. of south the slightly the [ became our year, that half of first kind And this down kind subsidies. see net subsequently, flat, just just It's

a say flat. second we product team is in number year this you of what just in Rico Puerto happened So then our the it's on did And can the of executive half changes side. in

at well going aggressively the new you're next my And XX, do And it iPhone on through subsidy year, devices we've postpaid well. with as sense come as non-Apple to we've so both a looking better. lens. is, the been iPhones back as quite into see And the game

well. We You're launched these IT stack. is going own promotion attention. to and reason new some of have think It's I very that lines, just didn't you aggressive. X things $XX we a a couldn't see our XX prepaid will And prepaid by before do get as It's do each. plan, X the better capture we

stack, on postpaid, stood up will earlier we have sell did own postpaid on exclusively we own indicate where side, So that already. in January, I prepaid but that the we'll our our

So as we just last want. of week, we whatever can promotions do

and prepaid. of business prepaid to get And and lost, the that number our as the -- of side. it look most at the mobile so on we're the in is we've aggressive going And you lines

DISH, which will this on call with should Boost give channels the we short more the So That transaction now the will sometime prepaid us next year. prepaid. with

The gain. the on subsidy kind us. to that. really side, works quite we're in returns that We've back prepaid it postpaid So good back think will are of a good we a for actually feel like place. And way the structured the in on well get I then

and we the in attacker look we play should get you ] will So have mobile us the in 'XX business. our our back we'll be own Rico. into after network our And [ 'XX forward. on own that that's And running Puerto catcher at stack going

Soomit Datta

of free a flow Could follow-up announced. -- cash said it to be? -- kind other you there as a a just wondered, Just was What to has as towers will more tower come? steer free the well? And been is multiple. there time sort you're a what just will give out multiple of that's deal, great fall as potentially great which of infrastructure quick result looking the this just at any on flow deal, are monetize I transaction. that kind Or you sort cash Any of of to

Balan Nair

point. I'll any answer at other looking monetize the last question we're first. not No, this to at infrastructure

what not know we're at. be But you very will course, we Of opportunistic. that's looking

we we like X:XX, it X:XX closing release were some really are thought ] transact. included lot call. thought the press about towers, release deal more we then question in And we on is, why But any still And until excited this went the our feel and points glad We've up a the investor the towers getting [ Just coming whole resolved. cohort. out bundled and about of we we governance it. I'm in it. on issues X you asked that's good late like the Literally, press Soomit out. should that put deal days kind this was we should we right the morning, before because of final what the about very really

The that that the We -- very multiples. we it's about buyer about No. talk with EBITDA the with highly accretive. is -- too imagine, you I can the it. very, headline can the the about the asked much Chris, But agreed wouldn't price sorry, -- You happy John, multiple. with It's talk

Okay.

Just checking a can you counsel. significant. deal one. tower Soomit. is about the it's not on hit probably excited won't with imagine Yes, we're good Yes, it, but my it, we say clearly EBITDA that general That

Operator

And our next question goes to Matthew Harrigan of Benchmark.

Matthew Harrigan

a it for of megahertz really U.S., I if -- that of Rico it -- relative just ones, also like little customers, good you. the the getting deal -- it relative you elaborate per but bit transaction out you with discount good, seems XXX,XXX was input pop second you the for for quality a pricing the really price Puerto this the would looks be on mobile spectrum. the Speaking to good more to know on the Can a especially take really you're and to States?

Balan Nair

against of always couple in reasons. of a kind a they're Sure. Two, captive Puerto for Rico straight One, discount slight There's it's a Mainland auctions. is, the limited. the potential market. buy

easy And a traded slight at so spectrum. to more opposed there it's relying discount it's always to just build because on lot a towers as

a team said tremendously having has the done Now good job. that,

accretive win-win them, it's for to in It's for that. DISH think accretive us build and accretive for us. Puerto Rico. out don't for because quite they have a It's I on them both

going to build-out on there Rico. take are We over in obligations the Puerto

saves them lot that it CapEx of in so And they a focus can Mainland.

together at deal SEC so feel was with positive Counsel at the for General job DISH Justice it. rationale the executives from the did tremendous explaining Our the we about and yesterday a Department the and

company, huge the our go two I one shows we're well. confidence and with DISH. It's them for things. as those to think it's in, head-to-head good out. -- a secondly, good And One, day certainly It is deal XXx for day that Rico. with a Puerto up going our us in size, longest T-Mobile

all We Rico Mobile. Puerto in in, are in

Operator

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

Balan Nair

Thank you, operator.

see, with the think with it's clearly very our I'm growth -- quarter. see can earnings the I happy You here, that good. And for really you this results

stood of The and It's OIBDA migrations. go going are prepaid next get to a lot to place. I Rico good I finish revenue going has well. then The I of the put The Postpaid get know running in Spectrum a business. that. really well. growing quarter Prepaid stack pretty migration. bought, with I is a Puerto we into is as The the up. that we place. And really plans can really well. a cost as phase. grow. good the about business, about is and to good the in we're we really network build a in looking will all think good made. to And just fundamentally We nobody will and a there need in The go migration business fourth it's on nicely think year, is IT We'll The I business year, Puerto off will stood year, we concerns be business Rico, acquisition network as next good. we fixed this well. We up. think just base is our strong, has a think remember

really between good on our business to that C&W really operating doing a and big really doing is better Rica things. in So well. well. place, Costa is Liberty well. Panama Networks

I good think we've a excited really it. franchise got here, and I'm about

for all and your a thank day. support, So you great so much have

Operator

Ladies Investor XXXX this you. Liberty America's Quarter Call. and Latin gentlemen, Thank concludes Third

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

lines. your You disconnect may now

Liberty Latin America (LILA) 10 Nov 232023 Q3 Earnings call transcript