Q3 2019 Earnings Call
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.
I feel cables in wireless please go ahead.
Good morning, and welcome to Liberty lots of America third quarter 2019 invisible.
At this time, all participants will be listening mode.
Today's presentation materials can be filed under the Investor Relations section you ever to lock in Americas website.
W. W. W build Emily.
Following todays formal presentation instructions will be given full question good answer session.
As a reminder, visco is being recorded.
Today's remarks make forward looking statements, including the company's expectations with respect to Oh, PPI and future growth prospects and all that information is different.
Nope historical.
Actual results may differ materially from those expressed or implied by these statements.
Additionally from regional factors risks that could cause results to differ is available you ever good luck in America's most recently filed Form 10-Q , four very true.
It would be Latin America disclaims any obligation to update and you'll see Fortunately season was pretty slick any changes into expectations, we're going to conditions overall any such seats movies piece.
In addition on these calls we've already for two sort of non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendix to these presentation and although investor Relations website.
Oh, no like to turn the call over two hours you used to sell them there.
Thank you INGAA and welcome everybody thought third quarter results presentation.
As usual I enjoyed that my senior leadership team from across the region well, we've got them involved as needed during the acuity.
The structure of this call will be familiar to you.
I just thought but you can you draw highlights and operating results for the third quarter before wrapping up the strategic update.
Chris Noise, Chief Financial Officer will then follow through with some prepared remarks, <unk> financial performance and touching upon up 29, King financial guidance, which I'm pleased to see we all read could funding for these results.
After that people get straight to your questions I.
Just a point of housekeeping the will both be working from slides, which you can find on a website at www dot Belleli dot com.
Let me start on slide four we don't key highlights.
All.
We continue to deliver solid operational performance, adding 67000 fixed at 13000 mobile subscribers in Q3.
Brings all combined you have to date additions over 270000.
Just represents a significant increase compared to the first three quarters of between 18 and it's are you indicated that we are improving commercial execution.
Oh financial performance was solid in Q3 generated 967 million if revenue.
280 million of what was yes.
Note that these figures we talked about hurricane Dorian also the quarters Rebased revenue and also you have growth rates were negatively impacted by the FCC funding received last year in Puerto Rico.
This will take you to those respective deals in his life.
More importantly, we are reconfirming, our financial guidance for the year.
Next we continued to focus on a customers and have a number of new products and proposition launches coming up you.
Including an exciting new video platform for VTR in Chile based on the Liberty Globals Horizon platform.
We also have hobbies Android solution for Puerto Rico.
Which we didn't plan to go a lot of close many of our mortgage.
In addition to investments in product, we continue to expand on eating that which we added upgraded over 100000 homes during the quarter, taking a year to date Cupid two over 340000 homes and we are increasing LT coverage across our mobile networks.
Finally, we took a significant step forward in organic strategy to the announced acquisition of <unk> assets in Puerto Rico, and the U.S. Virgin Islands.
A couple of why we are excited about this acquisition late in the presentation.
And yesterday, we also announced a disposal up on sea shells business, which was held last non cooperation outside the <unk> focused region, one enterprise value of $104 million. So overall in the third quarter.
We continue to deliver solid operational momentum and made great progress on that in organic growth for it.
The next slides I'll provide an update on all three business segments fixed mobile and B to B.
Turning to slide five Oh fixed business, representing half of all revenue.
I think the numbers you speak for themselves.
Argue additions continued to build strong.
<unk> cable and wireless and VTR public. He taught me salt improve Q3 numbers compared to the prior year driven by growing penetration of our expanded footprint as well this improved execution.
Piggledy in cable and wireless maybe more than doubled additions you overview.
Viki, our Q3 performance at the 15000 net adds for Q3 was also significant step up but just when you're thinking where the quarter yielded onethree thousand did that.
In Puerto Rico, while Q3, net ads was lower than the prior year when he was coming from between 17 Hurricanes.
Year to date net adds a strong nearly doubled between 18 numbers importantly, we added more subscribers sequentially in Q3, I see the business continuing to grow well.
Record low treating them as.
From a product perspective broadband the main driver additions representing it sets up the told him.
I mean do this by providing eating speech, great lifelike coverage and reliability.
All important product features for success.
Given the strong weekends, yes increase oh upgrades and new build program. This year without year to date activity running 30% ahead of last year.
In terms of speech.
You mean the needed in the number four markets.
Our customers receiving average speeds of 230 make a bits per second to third quarter thinking what's just hundred 60, megabits in third quarter 18.
As a group of quarter to date and year to date additions with each over 50% higher than the prior year 67200, 7000 argues perspective.
Moving to more about beat to be on slide six.
Thinking more about plus representing just under 20% off already all subscriber trends continue to show improvement.
You treat we added 15000 subscribers across different.
Significant improvement year over year, as we continue to stabilize trends in cable and wireless and VTR she need to add subscribers at a consistently.
ER positive about prospects for Q4, that's typically benefit from strong seasonal uplift and feel confident about our performance mini fall markets, particularly Jamaica.
Year to date, the mobile subscriber stories, even more positive for the spring of.
200000, net adds highlighting the benefit of <unk> operational changes.
No more challenging mobile I'm lucky to have them on the Bahamas, you also so both year over year and sequential improvement in subscriber trends.
And actually that was negative impact from Dorian into bonds.
Evan.
We continue to see signs of stabilization subscription revenue.
It's been fits the strength of fall Mobilenet, which is vital and be investments you have enabled us to reach close to 85% LTE coverage across all markets up from 75% at the end of Q2.
And as you can see into Central chart, our LTE subscribers continued to grow strongly year over year, reaching 46% false subscribers at the end of Q tree.
Sequentially. We also grew up LTB by over 120000 or close to 10 percentage points.
Moving to BTB on the right inside of the slight representing about 30% of our revenues.
B to B was up 1% on MVP spaces in Q3 to $300 million. This growth once again, representing increasing data demand, partially offset by legacy product headwinds.
We saw strong growth you know CNW BTB only markets showed yes, let them.
Well, it's from smaller beaches in VTR in Puerto Rico.
You know other CNW markets.
An element of phasing here as we anticipate some key projects to come through in Q4, delivering a strong close to the fighting.
He wants to see a significant opportunity to drive greater market share or markets outside cable and wireless which currently comprised the bulk of our PDP business [noise].
Slide seven I wanted to bring it to the acquisition of 18 keys operations in Puerto Rico, and the U.S. switching items and provide some color as to why we think it's such a good one for us.
This transaction is valued at $1.95 billion, representing a multiple of mid six office here before synergies at about a 10 law would be with adjustable full run rate synergies.
Compelling valuation.
The combination will bring together, the leading mobile and fixed plays in Puerto Rico, adding 1.1 million mobile subscribers to us strong existing capabilities.
I've highlighted previously free cash flow accretion on the push up basis is the key metric we look at in assessing investment opportunities.
We expected to be agree transaction.
Spectrum.
We will also add to our leading and resilient high speed infrastructure on the.
18 teeth network flipping fourth but significant investments being made over the last few years.
For example, approximately 95% of 18 teas college of connected with fiber and over 70% of that fiber is buried underground.
Nitpicking, increasing the resiliency of our operations.
As with any in market combination, we anticipate this transaction will generate significant synergies.
Underpin future financial performance.
As you would expect from as we as part of truth.
The ship transition extensive detail.
Agreed to a comprehensive transitional services agreements with 18.
Which will last up to 36 months, depending on how soon we get to cut it over.
That's fine that's we will discuss later in the presentation, we have already read that component of our funding for the transaction in the heavily oversubscribed capital. Please.
Slide eight.
The previous presentations.
I wanted to close by taking you through a business priorities into progress with me.
We're still just shy of two years into life at Liberty Latin America.
And I'm proud of the progress you've made and building a team and culture.
Yeah, very engaged board and experienced leadership group.
The strong operating management team down many levels.
Men brought in the last 18 months.
Oh operating model and rates are working is enabling a culture of collaboration and one team.
Never was this more evident they need to wait and team rallied behind the Bahamas post Hurricane Dorian.
We are seeing fees engagement levels throughout the organization as we seek to deliver strong results across the group.
As I covered earlier.
We are delivering improved operational performance.
Days more to do here and be continued to see significant opportunities and sitting monkeys and product.
These remains a key focus for us.
Very committed to transforming our business improved customer experience and drive scale efficiencies over time.
Oh, Panama Operation Center.
[noise] component of just price.
We are rapidly scaling up here.
Very piece that in addition to carry Scott Chief people Officer, We announced last week that that's a lot to Nick Stein Chief operating officer.
Be moving from Denver dependable.
With that demonstrating our commitment to building a scalable operation Center.
I mean, the heart of Latin America.
Next through M&A baby see a lot of accretive opportunities you know region.
We are excited that secured such a good ones, but the ATM transaction, which is a great example of how focused and disciplined in making the right acquisitions.
And as part of the financing for the transaction.
With that strengthen our balance sheet, which Chris will publish shortly.
Overall, I am happy with that progress.
Well positioned as we head into Q4 and look forward to taking some good momentum will do the media.
With that.
I'll pass you over the Chris Moyles Chief Financial Officer.
We'll talk you through a financial performance before we take your questions.
Chris.
Thank you balance starting with the upper half of flight.
Sorry, I like our reported Q3 revenue of $967 million and C. F. A $380 million. These results represent reported year over year growth of over 4% colt largely by the inclusion of college. He can yes, but in terms of Rebased growth, we posted a revenue decline.
1%.
Yes increase up 1%.
Growth was adversely impacted by $16 million in revenue and $90 million knows yeah. As a result to hurricane boring and prior year have since <unk> funding.
The p. additions totaled $187 million into <unk> or 19% of revenue as compared to $170 million were 18% of revenue last year higher CPM spend related to our crews subscriber gains and investments in mobile capacity contributed to our year over year growth in PMT.
Moving to the bottom right generate $4 million, an adjusted free cash flow, bringing our year to date total $220 million out Q3 result was lower as compared to Q3 2000.
It doesn't realize roughly $30 million in last years adjusted EPS from insurance advances in the FCC.
We remain on track to deliver our 2018 financial targets, even with the negative impact of Hurricane Darren.
Just to reiterate our targets first it was greater than $1.5 billion to $5 billion that our February 20-F, 2018, FX levels, including the Chilean FX rate of 670.
Importantly, our year to date, yeah would've been nearly $10 million higher if we had applied our guidance FX rates additional while FX volatility may impact reported as yet we reaffirmed the state that we made on our 2018 yearend earnings call that our 2009.
Yes.
Implies low to mid single digit Rebased OCF growth.
Second key additions as a percentage of revenue of approximately 19% and third adjusted free cash flow of approximately $150 million.
Turning to our three reportable segment on slide 11, starting on the left CNW deliberate $596 million of revenue down 2% or were you guys basis, which is broadly in line with our Q2 performance if adjusted for Hurricane doors.
Some of the storm in Q3 was $5 million to revenue $8 million to as yet and $5 million to see any additions.
As in prior quarters mobile revenue remained challenging year over year, especially in Panama or they'll be continue to see signs of stabilization largely offsetting the mobile decline. We continued to deliver rebased revenue growth in fixed primarily driven by the strength of our broadband business and I'm happy to be fraud hoped I didnt criticism manner.
Services revenue.
Debbie you reported 2% Rebased OCF growth with $236 million in the quarter approaching a margin of 40% as our focus on cost efficiency continues.
For the quarter pediatricians were $119 million or 20% of revenue and included over 40000 Youre upgraded homes.
Moving to our VTR, probably keep this segment, we posted rebased growth of 2% revenue and 4% and those are bringing revenue to $268 million and as he asked to $109 million topline growth was supported by volume increases across consumer broadband and mobile and B to b.
Well I see F. growth was also helped by decreases in interconnect and mobile access costs.
Our p. any additions were $49 million, 18% of revenue, which is consistent with the prior year that included over 60000, new homes passed.
And with respect to our Puerto Rican segment LPR delivered another strong quarter helped by 33000 organic subscriber additions year to date, Oh, PR generated revenue of $104 million Hosea $51 million MP any additions of $17 million or 16% of Latin.
Switching to the right part of the flight we show a quarterly progression as we flagged in Q2 hour comparison in the second half of this year will be more challenging due to the $11 million in FCC funny misses in Puerto Rico in Q3, 2018, and the $64 billion insurance settlements record.
And I used in Q4 2018 as represented by the highlight of bars.
Moving to slide 12, and building upon downs earlier comments, we successfully completed $2.2 billion, Puerto Rican financing in October which was well received by both U.S. high yield at that investors and father credit upgrade all three businesses, reflecting the enhanced credit profile of the combined the Puerto Rican.
Yes.
Raised six year $125 million.
And credit line is seven year 1 billion dollar term loan and Yeah 1.2 billion dollar secured bond this capital raise enabled us to refinance our existing $923 million in Puerto Rican term loans, which have maturities in 2022, and 2023 and Uh huh.
I loved it by the chart extends our average 10 or on an adjusted basis to over six years.
The residual $1.3 billion from the financing will be placed in escrow and will ultimately find a significant portion of the 18 to purchase.
On the debt raise we will require roughly $750 million to fund the purchase including fees and expenses and this is intended to come from our existing $2 billion of terrorists.
Well go liquidity on balance sheet adjusting for the transaction, we would expect our consolidated net leverage ratio.
To be in the mid fours about a half a turn higher than Q3's ratio four times a.
Comfortable level that we believe works well from 11 equity return perspective, and one that we anticipate will decline over time as we continue to grow CF across L.A.
That's the slide 13, and our concluding remarks, we continued our population momentum in Q3 strong subscriber additions building on this momentum and some things in a b to b activity, we anticipate a strong finish to 2000 and they.
Looking further ahead, we announced a highly strategic acquisition in Puerto Rico, which should drive strong free cash flow accretion in the future and lastly, we are reconfirming, our 2018 finance guidance targets.
With that operator, we're ready to take questions.
A question answer session will be conducted electronically if he would like to ask a question regarding the company's operations. Please do so my question the Starkey how long might that that's just one on your Touchtone phone.
In order to accommodate everyone. We request that you ask me one question with one follow up if needed.
If you are using a speaker phone. Please make sure. Your mute function is turned off to a lot of your signal to reach our equipment.
We will pause for just a moment to give everyone an opportunity to signal for questions. One moment. Please.
Our first funny.
Listen comes from James Ratcliffe. Please go ahead.
Good morning, Thanks for taking the question one on M&A and one on the operations if I could on the M&A side can you talk about the sources of the synergies that you're expecting you get all the transaction and any sort of timeframe and also if there any oxford get synergies, we should be looking for ups from upfront investments and alike.
And secondly, I mentioned earlier on the BDP side are part of that yeah, offsetting drag tonight's services growth is in decline.
Voice business, how can you give that business and at what sort of decline are we looking out there. Thanks.
Sure.
Since so on the M&A started early it is to.
Yeah, let it because it's really that you're asking about.
The synergies every indicator, but it did and it comes to from a number of different areas, but what are the big warrant it really be three agreements I'd be happy they do as we roll off 53 agreements the degree to certain assets.
In house, I think you'll see you'll definitely see some pretty good numbers there it's well there's a lot of work that we are doing is generally.
To strengthen the network no I'd say some of that retail or could it be berger combine metrics.
And and let you know at we also saw what some of the.
So if you gave their committees the crux by larger group as well or the coordinate what we can now you put the rest of the Caribbean et cetera. So.
He that coming from many different ways and I think the one thing that we've indicated.
It's a good number.
And.
I feel really really good about the second question on operations I'm on the voice sorry, Yeah, you know because the comment I think you're correct all kiddos industry right now could lead to telcos experienced good targets to go.
It's kind of peaked out on a voice Ed.
And ER and starting to see some somewhere you know some of the erosion there and you see in.
Primarily of bundling ratio or you know the bundling richer continues to contract a little bit and it looks to be able to backfill club voice or a disconnect or more importantly, as we bring in new customers.
He lives the coming as we thought the voice product, but you know <unk> kinda model all looked at in already and the incremental net adds that we see far outweighed the Uh huh.
The the losses from voice or the broadband product is really our driver.
Great. Thank you.
Our next question comes from Soomit Datta from New Streets Research. Please go ahead.
Hi, a couple of questions. Please one on Puerto Rico I was hoping you kids just give us a quick update from how you see the the broad demographic situation that I've had slightly different conflicting things.
Things in terms of population kind of crazy some contraction.
And maybe also how do you see the the the sort of broader demographics going forward. What is built into your assumptions I'm, assuming you're reason to be upbeat given to the capital deployment in the country, but it'd be interesting to get a.
You got some thoughts from some people who've been on the ground.
And then the second thing plays was just an operational question home, Panama, I mean, you've talked to.
A couple of times about stabilization.
In the market or on the wireless side I guess, we're talking but if I look at them nothing to say still seem to be under some pressure in terms of revenues and the subscriber count on wireless is ticking down still so I. Just wondered you know how close are we sort of also and as part of what are you a fulsome own consolidation.
And so any kind of uptake the thank you.
Sure. Thanks to that Puerto Rico, 30, we are really bullish on threeq or or whatever.
That's that's it and you have an amazing management's view on the ground. Its route in Puerto Rico, and it really see biotech or allocation and we'll be all in there and you feel really good about it now that that'd be good. So I think some comments and I've got to answer that they're looking and then I'll pass it back due largely to give a little bit more color.
As we bullish or underground.
Paramount and it's broadly in the is the more about that there what do you see it's a really their religion.
A lot of Chile, the prepaid market.
And and really good price compression, specifically apparently are under prepaid market.
You said, it's a little bit states you know, it's it's a quick did not on the product a good cardica Becker, let's just be many competitors.
And and you haven't called the bottom yet on that but I think we pretty close your you'll see bringing great. You know the copper again, some better numbers.
And.
We think that I'm, a consolidation wasn't up and is sooner rather than later, if you have a new regulator appointed by the President I think a world.
Yeah, I was hoping will come up with a much more certainly ER is deprecation up the law that looks grants and a and that could probably paved the way for the current consolidation to actually happen.
Oh I'll pass it back to not do not do you Wanna get maybe some color underground. That's why we are really bullish on Puerto Rico.
Oh, Thank you for sure.
I mean, if you look at the where we stand today, where we go through the first nine month <unk> fiscal year. After June you know our numbers that we're seeing in because clearly the.
Migration is a.
Not just slightly positive, but no we're not assuming that you know it's going to be complete reversal or migration, but we're not seeing the massive decreased to three or to the parents because typically prior to the hurricane and of course after the hurricane there's no. Other key indicators. We look out you know we're seeing recruitment to unemployment also.
There was a very pure process from the school board.
In terms of renegotiating the items that are there was a proposal on the table or in front of the judge in New York or we believe it's going to be favorable, but we've got that they're significantly which in turn to go through [laughter] Cook the amount over that's reversed the government to have to be paid in two.
Only 20 and its search you know we believe they're going to be were to go back to the captive market, who 2021, having said those are so our view is you know is optimistic we'll not overly optimistic but we believe you know we have what it takes to operate in the environment because when the kids for many years there would be quite successful I'm confident that we'll be able to.
Good to continue on that front, so again, we're carefully optimistic.
But still for the key indicators on it because one of the election.
Okay great.
Thank you.
Our next question comes from Michael Rollins from Citi. Please go ahead.
Hi, Good morning, I was curious if you could.
No longer term opportunities for margin expansion.
For the broad portfolio as well is your key operating regions. Thanks.
Thanks, Michael.
You know this is an area that we are actually quite excited about in our business.
We see margin expansion or at the operating free cash flow line true board or Opex improvements as well, let's get back the improvements and create that given your guidance. This year and we're going to nail it and ER and come next year they'll give you at least at a Guy then and we're going to need.
Let it flow and all that will show two words are quite a few points of expansion both in the effect sorry.
And are in the Capex I just love. So that's one do you feel really good about in the business and our operating leverage continues to improve we'll see you know with all the net adds that we had really aren't good enough with.
I'm playing the future are really good enough that we are going to bring in that pick up some some pricing as well. So our strategy has been very consistent about irrs. We are going to go full body in regard to starting ARPU, so easy to get volume and you wonder like just give everything away for free, but we are gonna get lots of value there.
Any oracle and then at some point in the future will start picking the ARPU increases, but we feel really good about.
The.
Having said because it's the kind of though maybe I'll ask Chris could give maybe a point, it's rather the margin expansion I mean, I think we had and just to reiterate for folks.
A big part of our focus is around Opex to revenue and our medium term target is to run the collective business in the low thirtys as a percentage of revenue versus you know were upper thirtys. Today. So that is that yet key focus area for us I think that will underpin.
Oh, yeah for EBITDA growth.
Going forward and in addition, as we look at you could call. It the as you have less capex or FCF ratio you know our goal is a company it could be a me yeah. The mid twentys as a percent of revenue Oh, we finished in 2018 or 19%. So we have really to go on that and that means.
Driving down Capex as a percentage of revenue on a go forward basis.
Thanks, Chris.
Thank you.
Our next question comes from Kevin ROE from ROE equity Research. Please go ahead.
Thank you good morning, a couple quick questions first on Hurricane Dorian.
When do you expect to return to a pre hurricane run rate on what work needs to be done yet and I'm the Seychelles sale.
What are the expected use of proceeds you're going to keep that on the balance sheet or or actually pay down debt. Thank you.
Well, thanks, Kevin or Perkins Dorian you.
The.
You think sometime that sometime next year, we'll get back to pre hurricane levels are they you know two parts to the story of course, you know that the Grand a Herman island that we are focused completely rebuilding real already getting there and a lot of up to be customers coming back up because that's been built more about that but they stood up.
Then that's the other I love of Arbuckle when.
It's really a huge human humanitarian disaster that God, it's hardly any commercial activity and but that will come back that may take a little bit longer but he was in one of our bigger.
Revenue stream island.
Anyway, but but we are focused on bringing some new technologies there that would use our classic construction. So a lot more fixed wireless and there and so on or you feel good about Bahamas, I feel really good but my team. It's rather have responded with a.
On the and on do you think helped as well so I'm going to ask but to make a comment not that'd be pretty excited about that disposal and and you can imagine <unk> revenue, we put that parents do work the grid up thanks on the on disposal proceeds we would intend not at this point to pay down debt will use the.
The net proceeds as part of the a the cash we need to the fund 18 T. purchase.
Got it thank you guys.
[noise] and our last question comes from first Carlo from Scotiabank. Please go ahead.
Uh huh.
Yes. Thank you for off for taking my question are you just for purposes of dry.
Bearing got to see from imports were equal to other producers in the region I know slipped just right. If I were if you've seen I was wondering if you could be slopes operating leases for h. and people like were equal police a if you can that helps us have much perky, probably thought where he says a stellar commitment seen imports were equal that movie mining.
My first question.
Okay, well I, you know we'd be more than just because the schools will be all the details there, but but we are inheriting a network. There what are those the border to deal with the so they are but a small part of callicutt coming through it but most of them are already under existing agreements that they do you guys. Good luck.
The vendors.
And with all the names you would expect more than one vendor there underground and the though.
Is there for tuck in Badger.
Yeah, but I've been wrong, but I.
Okay.
Yeah, Let me let me just at a name yeah. He thinks he brings you to over 600, <unk> tower sites and the the lion share or I think is over 95% of those towers have fiber direct to though it's tower sites, which is which is great and ATM T. and then recovery a invested significantly.
Around resiliency said the towers or state of the art you know on Puerto Rico at U.S. Ya.
Well keep up the kindergarten fight we thought it most of the car worse belong to the company or.
Oh, you try to yarbrough pretty I know that Ben Ben betting then monetize their lease.
Okay. Thank you I'm talking about yeah, hopefully some she there.
I'll just leave you know we teenage sales are going I, PC cool or political situation right now I'm. Just wondering if it's that you have nobody's baby. They change it seems that competitive landscape in Chile, perhaps there's no around not being in terms of crop sales I'm just stuck overall, what's your what's offense, so if you're actually.
She there right now.
Sure.
Have you ever to jump because you had a bit as well you know.
Yes that we feel about it really love the country in a business there.
Our primary focus is really on a employees or on a property on the services and are not customers said, we want to make sure. I said this is all up and running enough customers a lot there could care. So we're continuing to drink truck rolls with Baird installed or because you do that.
No.
On the political front, we feel good that the you know something that the government and the citizens that see labor resolved eventually and it'll be it'll be okay, I last game or maybe a underground maybe give some color it's a dealer.
Sure. Thank you bought and thank you on this for the question [laughter], well I'm said with.
We remain optimistic about the ability of the society to showcase beyond a somewhat complicated or end of the monthly no silver.
From a difficult because you mostly because of democracy and all that we see the you know situation.
Turning to linked to not only in November so we don't see at least today and we maybe a little bit 22, you feel the consequences, but we don't see effects.
Material effect when they can save some demand actually as we have a you know can dilute the leap then what we saw the Monday after the come to get the weight loss. You know you know sort of a spike can become thing that none of this week. So I wouldn't be from this was not.
My people get affected at all not the service to customers are and not be distribution channels. All diffusion tenants like working normally and we remain confident thing you continue pushing our good research.
Have you actually had to be October . Despite the fact that we had to come together last week off the mark.
They do you know, okay and I can say, we are committed to Julie and we will continue to embed into it.
Okay. Thank you very clear.
We will take one last question from Matthew Harrigan from benchmark. Please go ahead.
Thank you well always.
Thank you I was curious he tragedies ignoring was when you do that at all since it can go through the whole good prudent.
<unk> SAR Paradise Island, you alluded to you can wireless drops in lover elements you reduce your with your capital cost for for new wells, but it's the only thing that gives you pause in firms with what's the cost.
The insurance and all that out and that leads you in that would be here, the hurricane cycle or extended hurricane clinical regardless of global warming and that could you talk about.
The opportunity you know drops of Los Alamos demographic and she like.
With a lower off the homes past because it seems like that that's a decent opportunity as well I guess when she came out with the agency would have given you're really be parts and work on Warner Brothers, who will give you probably wouldn't answer that one but yeah. Thanks.
It looks like five questions in there and there [laughter], but I'll, let me try if he'd like I get deal and the you know the quickly that <unk> that we want to answer and then if I missed something Lisa jump back a a you know I, let Chuck Christmas think about the a insurance question on <unk> you asked a question in there on fixed wireless.
Kind of dropped off a little bit there you broke up a bit on Paradise Island, or you know, they're not doing any fixed wireless in Paradise Island.
But we feel good about the fixed wireless mentioned, Dan and I picked why that's what I mean, it's really out P E.
Two customers because we have no capacity you actually do that against the density of population certainly an obstacle and and Grand Bahama, It's well anybody really more technical details will be happy to provide and did that get right, yes, well into Lantus and walk works in some back.
In Chile, you know you're you're spot on day, it's a huge amount of or a customer base that we previously had not targeted.
Given how we've driven the clock structure I thought construction down vacant we feel it's been done a really good job it didnt quite innovative and that right and we've gotten a across the whole parents down quite a bit but really no targeting you know a lot of that'd be called the C and b nor kits that previously.
It's kinda bypass and we think the opportunity that is really good and you can clearly to from the last few weeks certainly in the region that you know all of the population. If the same after she has been moved and bring new fixed broadband do them, it's going to be a core major michigan for elderly or maybe attack vector.
Great too dark but are enjoying the parametric reports that we've taken.
Yeah, Matt around.
Insurance for the region, particularly around let's call. It went in and that CAD for the Caribbean. We continue to look at how we pass to optimize and ensure we are getting the highest because you know value for for a cover so one thing that we've done over the last year is we've.
We've gone forward with a you know parametric.
Insurance program and that allows us to put a competitive process in place between the traditional indemnity, Marquette and and a and reinsurance fund market for the risk that minimizes frictional cost and allows us to have a program that we can play between the two different market and that basically its triggered off of a.
I certainly when speed pace X amount of a have a defined value for what that does is it allows us to a ensure that to the extent we have a a major disaster. We can have cash come into the market a lot quicker than what traditionally has been sort of an 18 to 24 month a process for the traditional and Dan.
The market. So we continue to refine our program and continue to look at capacity for the region and I think we are looking at how we continue to create the Muslim robust risk management program for the money and we do self insure and we do take you know the first layer of risk you know on our books.
As well so.
I think we feel comfortable about places we operate and how we go about insurance and we'll continue to refine that we're now as we look forward.
Thanks for let's Chris.
Great.
I will conclude todays question answer session I'd like to hand back to my London Air for any additional are closing remarks.
Thank you operator, and you know I I'd say, it's you know below 35 days, they do the fourth quarter and that's great Tonight retreated Oh graduates.
He seemed that puts 35 days savvy feel really good about how we're going to end this year and a leap continues it. Thank you for the sport you've given its copper grade there.
Ladies and gentlemen, this concludes Liberty Latin America's third quarter 2019, Investor call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin Americans Web site at Triple double you without L.L. any thoughts.
There you can also find a copy of today's presentation materials.
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