Q1 2020 Earnings Call

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

I'll turn the call over time, that's allowed chronic Stein Chief operating officer of Liberty Latin America.

Good morning, and when it comes to Liberty Latin America's first quarter's Twentytwenty investor call.

These diamonds that these things are usually since only mode. Today, so much because inflation in the studios can be found under the Investor Relations section of humor to Latin Americas website at Www Dot LLS Dot com.

Following todays formal presentation instructions will be even for a question answer session.

As a reminder, this call is being recorded.

Today's remarks May include forward looking statements, including the companys expectations with respect to be outlook and future growth prospects and other information in statesmen stepped up north historical facts.

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

Additional information on factors or risks that could cause results to be fair is available in University Latin America's most recently filed forms 10-K and form 10-Q.

The Latin America disclaims any obligation to update any of these forward looking statements to reflect any change in its expectations or in the conditions and reach any such statement whose based.

In addition on these calls we we refer to certain non-GAAP financial measures reach every concise within most comparable GAAP financial measures, which can be found that Ben. This is to these presentation and on our Investor Relations website.

I would now like to turn the call over two hours CEO Mr. button there.

Thank you got to last summer and welcome everybody to our first quarter results presentation.

Firstly, I hope you and your patents as safe and in good health during this challenging times.

Decided to just I'll, usually reporting format this quarter, given the unprecedented uncertainties stemming from the corporate banking and Danny.

I hope you have the opportunity to read my letter to the shareholders published yesterday with our earnings release.

In the latter I wanted to share with you some of my thoughts on the situation and then backup business as well give you the confidence that focus adapting and taking proactive measures to weather the storm.

For today's running order I'll start by briefly taken you through the highlights first quarter before adding some color to the areas I highlighted in my letter.

Chris noise about CFO will then follow with a review of our financial performance run to decode at Nike impacts enough business in more detail and provide an overview of our capital structure management.

After that we will get straight to your questions as always I joined by senior leadership team from across the region and I look at them involved as needed during the Q ending pulling up prepared remarks.

Point of housekeeping, we will both be working from slides, which you can find although website at www Dot LNA dotcom.

I'll start on slide four key highlights for the quarter.

Following the positive momentum reported in Q4 operationally, we had a strong start to be in Q1, but 60000 net adds including a record performance in cable and wireless our financial performance was solid growing revenue by 2% and most yet by 4% on a rebates.

Basis with all this all reporting segments contributing.

And in line with that investment pieces, we just let change we continue to expand on high speed fixed footprint, adding while upgrading an additional 80000 homes across all markets.

We feel really good about the progress we are making.

My team is executing on all cylinders.

Looking forward as I said in my letter we know the next three quarters, one looks like the first.

While days still uncertainty regarding the final impact of corporate banking, we expect our results would be adversely impacted.

Many unknowns. So it is unwise to give any guidance.

I suspect sometime in the second half the year, we should be better position to discuss possible outcomes at the situation.

We are ready for the challenge, we have analyzed various scenarios and determine what we need to do in response.

Hi, I'm very confident enough business over the long term no ability to manage through this period and a much stronger.

And finally, we are happy with the upcoming acquisition of 18 keys assets in Puerto Rico, and the U.S. Virgin Islands.

Which we expect to compete in the second half of this year.

Moving to slide five and starting with cable and wireless under left.

Otherwise continue to drive operational execution enough fix metric as we added a record 10000 customers and deliver best Q1 ours, you additions since acquiring business between 16.

In mobile coupons subscriber additions that typically softer from a seasonal perspective as some of the addition to that Christmas period ended churned off.

Jamaica continues to be a bright spot with double digit rebased revenue growth year over year. Despite some impact from Corbett into second half of March.

Turning to VTR uncovered key kindness entail.

We saw good performance in Chile, despite some residual impact from the social unrest in the market.

In particular broadband RG, you ads will open 10% higher compared to the first quarter.

Last year.

The mobile marketing chilling continues to grow steadily but this remains a small part of our VTR businessman roughly 90% of revenues come from fixed residential services.

Finally to Puerto Rico under Rightsized to slight up preparations to integrate 18 keys at just moving forward that steady pace.

And this business continues to deliver another growth quarter, adding 9000, RG use driven by broadband additions over the meeting high speed network.

We need to live and on these numbers, even with the quick that hit the island in January.

We are used to adversity and all these come a stroke.

Turning to slide six.

Outlined might eat focus areas and I wanted to build on some of these points.

For each of these initiatives and partner with one of my executive team members to drive results.

A couple of very distributed decision, making process that is both effective and agile when the crisis started our primary focus was on the safety and well being of employees. We then quickly took on the second at that point under this networks and customers.

Working hard to keep our communities connected lending needed most.

Next few slides I'll run through these tree areas in more detail.

So let me now starting point for government Affairs, which have partnered with John Winter, a general counsel in head of regulatory.

This has been a significant focus for us.

We have reached out to all of our government stakeholders at various levels and we are partnering with them to make sure that they know we are here to provide critical services to their countries now and into future.

We are working together with government partners, we worked on gaining access to additional spectrum, enabling technicians installers to keep our networks up and running protect network to consensus vandalism and to keep individuals and businesses connected.

Governments are asking us to keep customers, who can't pay as a result, the crisis connected and we are agreeing to that and supporting these requests including by adopting special lifeline tenants with limited features all going towards maintaining a strong relationship with our customers.

Except our responsibility at the provider of critical infrastructure. This thing. We are also working closely with our communities to provide necessary infrastructure and tools to enable distance learning and provide free access to key educational and informational website.

Then in 2.5.

Key staff that we took early on was to create a special task force led by recall is our head of strategy and M&A.

Colleagues across our operations and functions to drive pre primary items, one reviewing macro economic case studies working with experts.

Trust desktop business and scenario play.

To identify areas in which we should reduce costs and areas in which we should continue to invest.

And tree.

Innovate and prepare our company fall pause Corona fire as well.

We have taken some swift action in terms of cost reduction to manage to disparage, which Chris will get into.

In most cases this accelerates plants, we already had and will be up positive as we emerged from the current crisis.

We see this opportunity in the medium to long term and positive things to ensure we are able to catch it.

Next is our balance sheet liquidity in 0.6, working closely with Chris Reed too quick action to preserve our liquidity position in anticipation of severe global recession.

And to retain the equity portion of the transaction fee for the ATM transaction.

Critical covered this in more detail, including the continued strength of our balance sheet.

Thanks to the work we've done over the past couple of years, we are in good position, enabling us to continue allocating capital prudently such as our new build program.

End of M&A reaches point number seven anomalous.

Our near term focus is to complete the acquisition of 80, MTS, Puerto Rico and you asked for is United assets. So we can move forward towards integrating the business.

This will benefit is from what we anticipate to be any accretive deal on a free cash flow per share basis. This transaction also increases our U.S dollar earnings in the group.

Yes, good capital Allocators, we are also under Lucas opportunities to create value in consolidation asset swaps or just general market dislocations situations.

Finally, 2.8 and governance as I mentioned in the letter we are fortunate to half aboard.

Periods and knowledge of our industry.

I am keeping them, well informed and England their perspectives to ensure we optimize our approach at this time.

Moving to slide seven and but first point alone focus lists people and safety.

Here that partner with carry Scott Chief people Officer.

Keeping up people save engaged and able to work virtually has been our priority.

Acted swiftly implementing all appropriate measures right at the beginning.

We estimate at about 75% of our employees work from home since to lock down begin.

And 90% of phone calls and agents are working from home as well, which is a great achievement in such a short time.

Commitment for all across the business, especially my frontline colleagues to keep our customers save had collected very high.

Our culture has never been stronger.

In one be another everyone's impacted by the virus. Unfortunately helped by the proactive measures of the covenants in our markets. We only had a small number of our employees infected by Corbett 19, and all of them have recovered on the road to recovery.

You can see that chart space on Googles analytics, and mobility data that our larger markets and force state homeowner measures.

Earlier and more aggressively than the United States.

Earlier. This week you may seem that we launch our employee fund.

The files ceded by the financial contributions up our board members My leadership team and many of my hobbies.

To support our employees and their families.

Who are experiencing financial hardship at this time.

And so now while we are taking many cost measures all our people remain employed.

Committed working together to support each other.

Able to contribute to get communities and local economies.

Turning to slide eight and the core of our operations the network.

Partnering with the Khemka Chief Technology Officer.

Our networks, a strong flexible and we'll provide ample capacity for this current situation in more for the future.

Our fixed and mobile networks enables social interactions education for children connectivity forward.

Access to information.

Platforms for government to reach citizens and dollar submarine cables connect diesel or to the global Internet.

In essence, we are critical to a functioning society.

As you can seem to set up the slide.

Since the beginning of March we have seen double digit percentage keep track to increases in our mobile networks, roughly 40% increase in a fixed network and close to 50% growth in a sub sea network peak throughout usage.

Just how all traffic.

In addition, we also grew capacity to handle traffic Paul wholesale customers, adding 280 gigabyte of capacity for them.

Alan let with team has maintained quality and capacity every aspect of our network such that we handle that hit the increased traffic and providing great service.

Our investment in the network, including increasing sub sea capacity and into holding connect.

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Yes.

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Thank you.

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Watery, Microsoft Anixter and will have been really health.

In addition partners like Netflix and Google have been very helpful. As well as we manage this traffic which reduced that rates.

Flexibility and cashing content locally for us.

The grass showed is that traffic with useful peak levels at the content providers adjusted the streaming quality too little pressure on networks.

We've seen strong sales over the past 60 days some of our operations and install crews have been working very hard we have provided them repair crews with the necessary baby gear and safety protocols. We us so proud of the commitment of frontline team had a means to cut.

Thomas and our company not tell you we are leaning into our pieces by continuing to invest in at products and planning to further expand on high speed fixed footprint truth of recipe.

Finally for my section dislike nine commercial actions partnering with better connect Stein, Chief operating officer, and the Ceos in each of our market.

Obviously year more palantir and nicely Curry, we are moving fast to react and be proactive.

Our go to market activities, our focus has been to keep our customers and communities connected when they needed. Most damping. Many challenges we give thoughts have had to close falling lockdowns impacting sales and collection.

Call Center traffic since increase at the same time, we've needed to enable agents to work from home.

Capacity utilization is at its peak and a BBB customers face macro pressures, particularly towards exposed to the hospitality industry in some of cable as markets. All commercial teams has stepped up and delivered innovative solutions, we've created virtual storage and expand itself.

Install processes, we enable us call center colleagues to work from home introduce a new and introducing new whatever channel for customer service yet.

We created new connectivity plans for customers facing economic hardships and we put in new ways for customers to peers roving cash collection bands in the Caribbean and promotions about digital channels. These initiatives are showing results.

We've had some of our highest broadband daily sales in the last four to five beach in Puerto Rico and in Chile.

Panama as another example, with no over 50% of interactions via Whatsapp compared to less than 5% in early March.

Overall.

We had good first quarter.

We know the challenges ahead of its not going to be easy we are taking a proactive steps, we believe necessary to run a business effectively and to come up even stronger.

This crisis has accelerated many things that we were planning on doing.

And we feel good about that.

We are not deviating from our strategy, while we must address the current challenges.

We are still managing for success over the long term.

Everybody in Latin America and across the Caribbean once broadband.

Everybody wants to be connected everybody wants great service and everybody wants to create network.

We intend to provide all that good value everywhere we operate.

I couldn't be prouder of all my colleagues in L.L.A.

This is not a first rodeo and dealing with a crisis.

We are running this like a hurricane just curious.

Unlike a hurricane.

We have nothing to Regal, Indiana. This well we are realistic about the challenges to be phase and we will stay ahead of it that is why we are confident about the future.

With that.

Ill now pass you over the Chris noises, Chief Financial Officer, who will talk you through a financial performance before we take your questions.

Yes.

Thanks, Alan and to everyone on the call I Hope you and your families are safe and well I will begin on slide 11, and will quickly summarize our Q1 results, we delivered $931 million revenue, representing 2% rebates growth our U.S. dollar reported.

Revenue was 1% lower as the rebates growth combined with a modest 17 million dollar contribution from M&A was more than offset by $47 million. It net foreign currency impacts principally by 21% average appreciation of the U.S. dollar against the Chilean peso.

Importantly, each of our operating segment reported Rebased revenue growth as I will highlight on the next slide moving to oversee out we posted $364 million in Q1 2020, a similar reported results in Q1 2019, consistent with our revenue trend foreign.

Currency weighed on our reported as the efforts of our consolidated Rebased OCF growth rate with a solid 4% p. any additions totaled $133 million in Q1, or 14% of revenue, reflecting a reduction as compared to $139 million or 15% of revenue last year.

During the quarter, we continued investing in our footprint as Dan pointed out finally, we reported negative $49 million that adjusted free cash flow in Q1 as I mentioned on our Q4 call in February. Our Q1, 2020 result was impacted by trade working capital unwind stabbing apart from our.

Strong Q4 collection activity. This compares to $48 million in Q1, 2019. However, last year's result was positively impacted by $67 million insurance recovery proceeds.

Moving to slide 12, where we present, our Q1 segment results starting with CNW, we reported $589 million of revenue for 2% will you base quarterly growth outperformance was driven by 5% rebate, increasing residential fixed and a 4% rebate increase indeed.

The while residential mobile experienced a 6% rebased decline in terms of individual market can make it continued to show strong year over year Rebased growth of 8% on the strength of its volume gains over the last year Q1.

Rebate performance was 6% as we generated $239 yeah.

This growth was supported by the aforementioned revenue growth as well as the benefit from reduced sports content costs.

CNW PT additions were $71 million at 12% of revenue and included approximately 40000, new upgrade homes during the quarter.

Moving to DTR in Chile, and probably Tecan Costa Rica.

We reported revenue of $240 million up 1% you earlier on the rebates basis, and we see a $93 million representing 2% we bakewell.

Our LCF growth was partially reduced by non functional FX exposure in Chile, as the Chilean pesos weakened significantly to the U.S. dollar over the last year.

Our key additions were $45 million in Q1, reflecting a year over year decreased 19% in revenue from 20% last year's Q1.

During the quarter, we added approximately 30000, new or upgraded homes.

Finishing on the right Liberty, Puerto Rico continued its strong track record of delivering growth and generated $105 million of revenue or 3% Rebased growth as compared to Q1 2019. This solid result was helped by 34000 subscribers added over the last year and partially tempered by 2 million.

Our credit provided to customers following the January 2020 earthquakes.

Highlighting operational leverage we posted LLC at a $51 million, reflecting rebased growth up 4% in the quarter.

Finally, we reported $13 million appealing additions or 13% of revenue in Q1, as we added over a 5000 new homes to our footprint.

Building upon balance earlier statements. We thought it was helpful to frame key elements of our business that we're particularly focused on in this uncertain environment and how our business maybe impacted across our diverse set of geography.

Starting on the left part of the slide first traveler and stay at home Lockdown restrictions has had a profound impact on our markets. Both in terms of curtailing economic activity, but importantly, slowing down the infection rate going forward, the timing phasing and success ship associated with the release of these restrictions.

I will be critical to economic recoveries, we are seeing some good signs as a class on more than 20 consumer markets in aggregate the rate of doubling their reported cases and approaching three weeks. Thanks, the proactive measures from our government.

Second as it pertains to our business. We currently expect residential effect residential mobile and B to b will be impacted differently and us based on product composition with these operating segment, we will experience a different outcome.

Third our operating businesses aren't different stages of digital evolution. The degree of digitalization combined with the need for face to face or actions will influence our level of thousand collections customer service and install activity.

For the reasons, which I guess flag, we expect our traditional cable businesses, such as BTR and LPR will be much more resilient in the face of cold at 19.

Touching upon each of our operating segments, beginning that CNW, the operating segment, which provides consumer BT and subsea services across the Caribbean and portions of the Latin America.

Our consumer markets have various restrictions and locked out in place with several of our largest market such as Panama, Bahamas, Barbados, having quite aggressive plan.

Cross CNW neighbor island are highly depended upon tourism in hospitality and a lack of such over the coming months will impact us directly and indirectly for example, we estimate pre co that that we generated about $15 million in quarterly revenue from businesses in the hospitality sector.

We also expect that businesses in government that largely financially impacted by the lack of tourism and economies in our markets will suffer.

Our residential customers will continue to reduce prepaid wireless usage and top up less as they remain at home.

With roughly 50% of our revenue derived from non subsidy to be and prepaid wireless we expect to see significant near term pressure on these revenue streams.

On the flip side fixed residential postpaid mobile and our subsea businesses account for the remaining 50% and we expect these services to be far more resilient and network connectivity in high demand.

Carried out CNW, the creating is still predominantly a cast society and face to face interactions remain important way for us to seller services and collect on those.

Did a lot down only about 65% about stores are currently open and we are working hard to increasing usage of digital payment channels.

Restrictions, let our ability to further secure team that will be much improvement.

Even in the last 10 days collections have meaningfully improved versus the first few weeks that April when a shutdowns were taken effect.

Moving to our cable operations in Chile, and Costa Rica, those countryside controlled lot downs in March, including Rolling locked down to cross Chile.

Commercially the majority of our stores are open across both countries importantly, our largest single operation DTR has a significant proportion of collections flowing through digital channels from a business perspective fixed subscription revenue on postpaid subscription revenue account for over 95%.

Our total revenues to market, which is a distant positive.

Turning to Puerto Rico, the island aggressively locked down relatively early and is controlled the rate of infection, even with many of our stores close we have continued to see demand for residential products and collections have remained consistent with nearly 90% of our business in Libya, Puerto Rico tied to residential consumers.

Broadband product, our most popular the bundle and predominantly digital collection channels, we remain cautiously optimistic about our near term prospects.

Moving to the last column and the financial and operational applications of code at 19, although our overall business held up well during Q1, we are withdrawing our 2020 guidance given the substantial uncertainty that we face within our markets, we expect to see a far more pronounced revenue and cash flow financial impact beginning.

You too, especially at CN Debbie.

We are monitoring macroeconomic conditions across all of our markets, including movements in foreign currencies and the health of balance sheets that the government within our footprint.

Operationally our commercial teams have began rolling out lifeline products for customers in need and are generally not disconnecting customers for non payment at the time.

Collections will remain difficult, particularly in markets with commercial lockdowns in place and markets that are challenged economically.

A lagging collections, what bursley pressure near term what trade working capital. However, we are revising new methods to correct that are monitoring and managing our operating cash flow as closely.

As valid discussed we are inactive $159 that fixed operating costs and capex reductions.

Well about evenly between boat category into a large extent the reductions will be concentrated at seeing Debbie.

We expect that our variable cost such as Cogs activity related costs and Capex will also decline with reductions in revenue.

We have additional actions identified sell they needed to preserve financial flexibility and liquidity if conditions across our markets where to deteriorate more than we expect.

All said, we remain focused as a company to deliver positive free cash flow this year.

On slide 14, I wanted to cover our balance sheet and liquidity situation in some detail starting with the hexagon. Nonetheless, we ended Q1 to $6.1 billion of net debt and with a net leverage ratio at La 3.8 times for Q1, two things to note our purchase of the 18 key assets and.

Puerto Rico, and USPI will total $1.95 billion the debt financing for which has already been completed we borrowed 50% about U.S. dollar RC absent March totaling $467 million across our three primary credit silos and this cash resides in our balance sheet today.

This is principally if a cautionary moved to preserve the financial flexibility and ensure access to capital as well to fund a portion of the ATM T. acquisition.

Excluding unrestricted cash balance we have total liquidity at $2.2 billion, consisting of $1.6 billion of cash on hand, and approximately $650 million in undrawn available liquidity under our revolving credit lines, our weighted average maturity exceed six years as depicted in the bottom right at the slide and we have mint.

I'm all debt due over the next few years are fully swapped borrowing costs have fallen by 20 basis points to 6.4% as compared to Q4 as the $1.6 billion January refinancing reduced our term loan costs at CNW by 100 basis points to LIBOR, plus 225 basis points an important element.

Our risk mitigation strategy is that we match our borrowing to our underlying Mcf generation and as a result, approximately 85% of our debt is hedged to our underlying functional currency.

Given the situation I wanted to highlight the ample cushion we have with respect to our maintenance covenant at each of our key credit Styler that Q1 as the chart on the far right at this slide illustrates.

At CNW, our maintenance test is based on five times proportionate net senior secured debt. We were roughly 2.1 times at Q1. This covenant falls away when we have less than one third drawn on our 625 million dollar RCM at VTR, our maintenance test is based on three times net.

Secured debt at the Chilean operating company level, and we were at zero point to be tied secured at the end of Q1.

LPR, we have a maintenance test at five times net secured debt and finished Q1 at 4.4 times.

Following the closing of the ATM T. transaction, we expect headroom to improve within this credit.

Beyond our debt liquidity, we put in place a two year $100 million stock repurchase program in mid March by having an authorized program we have additional flexibility to capitalize on valuation dislocations in sharing we remained focus on efficient capital allocation and obviously will be high protective of our.

Our liquidity given the uncertain outlook for Calvin 19.

Within the quarter, we repurchased a small amount of equity and have continued this activity into the second quarter.

Moving to slide 15, I will wrap up our prepared remarks.

First quarter results highlight that were on the right track that our underlying operating strategy is working our focus remains on fulfilling our customers' needs to connectivity and network superiority and also achieving operating efficiency.

No doubt, we find ourselves in a rapidly changing and difficult environment. The impacting duration of covered 19 is highly uncertain and as a company. We believe it will change how we interact with customers.

We expressed in our earnings materials and on our call today that our business like that of other telecom operators in our region will face financial and operational challenges driven in part by the financial health of our customers and the overall economies in which we operate as ballad pointed out we have management operational experience dealing.

Diversity, we have well developed processes to quickly make decisions, allowing us to support our employees and customers. In this time of need cash flow generation remained at the core how we run this company, where occasion content capex reductions across our business to assist in our drive to maintain positive free cash flow this year.

And to offset expected declines in revenue to the extent needed we have additional levers at our disposal to improve our cash flow and financial flexibility.

Turning to our acquisition of 18 these assets in Puerto Rico, and less Virgin Islands, we have the funding in place to complete the transaction and we remain confident that will significantly enhance our us dollar cash flows in the coming years.

We will maintain ample financial flexibility and will be disciplined and how we utilize any excess capital to drive returns for our shareholders with that operator, we're ready to take question.

Thank you the question and answer session will be conducted electronically. If you would like to ask a question regarding the company's operations. Please do so by pressing the star or asterisk key talent I think that you want on your touched on telecom.

In order to accommodate everyone. We request that you only ask one question, which one follow up if needed if you're using a speaker phone. Please make sure. Your mute function is turned off to a liar signal to recharge.

Well pause for a moment chicken, everyone an opportunity to signal for questions.

Well take our first question, Sam James Ratcliffe with Evercore ISI.

Good morning, Thanks for taking the question not feel so first of all on the cost savings plan Im talking more about what the operation side or the.

Sure reverted to measure or more sustainable cost reductions and how much of the word nerf and play.

The one.

And on the Capex side, what sort of Capex.

Basically looking for won't cubic earning money on.

And secondly regarding the effort to keep people connected during the endemic.

Just talk about how that effective borrowing for example, how many customers would you get connected by unhealthy work for Berry and inpatient customer activity will start thinking.

Thanks James.

Sure well on the cost saving side.

We've been quite prudent about it.

Not something that.

Do you need aggressive and Weve looked at both our Capex and Opex. So an example on the Capex cut would be something would be like powers. You know we've already branded all up LP migration, Let me say you know what.

Probably 10 pre Dallas the return I did you probably don't need to build this year.

And probably in the year to really go back that.

On the Opex I, usually lot of the same thing we look at some of the third party on.

Melting come on we looked at some of the labor on the.

The number of things that we've taken out nice theory, the chunk of it possibly permanently become so it's quite a positive.

On the pandemic it no.

Right now if you know as we pointed out good previous comment in mind that not a lot of b customers that cannot afford to pay we've decided to keep them on you move them, but you will Lewis deep product to the disconnect between drop naturally, but I think that.

It probably would look about to see maybe a tick higher a if you have to dig deeper.

Point.

Great. Thank you.

Well take our next question Soomit Datta with New Street research.

Thanks to the and the question.

A couple of possible. Please just only.

Okay, I guess, we'll try to scale given your sense as to where revenues are going.

You were guiding to cash flow over 150, really U.S. too we allow for those hoping for growth.

Which is adults with maybe $150 million the line you're looking at some savings from Capex not picked up $150 million, but is it right to think that you know, perhaps the worst case scenario. There was a 300 billion dollar revenue hit for my little tend to be if it too cute about not stop thinking.

And then just to follow on on subsea cable obviously the the.

The volumes are going to be strong E bike during the presentation is not one of the business is not where you monetized.

More recently the high it's safe to volumes with the pricing model allows for that.

Very much.

Sure.

Limit and maybe less because still to think about an answer yet but what.

No I think everybody's going to try to do the back with Matt we get the revenue.

Numbers, we've modeled quite a few things and I think it's not going to be that simple model. It back one because we really don't know how it's going to play out.

We have you noticed I'll tell you generally we now what we think it's going to play out would keep condition, we have but that's cooper with good condition, we stress test our balance sheet many different ways.

And Chris has done a really good job with that.

But suffice to say that we are going to run this business for pump it becomes a bit Tonight. We're committed to admit full management team is committed to that and and I don't think would be but do that on the subsidy side.

We not taking price increases, we're taking a lot more volume on subsidy.

On a customer need the additional capacity and or not.

You're not being greedy nor are we try and do I take advantage to reach and right now people need that additional defensive you'd need a lot of our wholesale estimate a dependent on it and it sounds like to step up and and provide the expenses for them, but you want to give a little bit more color on the yeah I would say just on yeah on the on the revenue component.

A key variable at least in the near near term it.

The.

The status of the locked down and a number of the market you know they are starting we're starting to see them relief, but that is you know that's the key variable in terms of now how revenue will play out over the next now snacks do you mind.

So thats one is obviously outside of our control because with the government, but as that changes then we're able to extend it what the extend longer than we are able to take more cost out of the business.

To deliver what boundless speaking about around you know positive free cash flow profile.

Okay, great. Thank you.

Our next question comes from Michael Rollins with Citi.

Hi, good morning, Thanks for taking the question.

Curious if you can kind of go back you know the history that youve seen across your businesses how.

Does the unemployment rate.

In different countries like that.

Yeah and payment.

Hi, those customers.

For your products, maybe just to get it and the sensitivity to be Connie.

Relative to.

Easier.

And then the second question I had is linked to cost cutting.

The cost cutting variable that the revenues. So we're really the prices and your revenues for covering the those expenses come back or is this simply accelerating some of the cost efficiencies you didn't wanna get bringing to the big reach you know you've articulated in the past such that the operating.

Leverage on a recovery make no different than maybe over the past couple of years. Thanks.

Sure Michael.

You know your first question I'm in unemployment rate of course unemployment will affect.

Buying power, but just how I would look at it.

We know the business, it's probably more sensitive to that is not prepaid business and a in prepaid it is.

Not a huge part of our revenues being but it's about you know prepared to talk more about revenue clean with its about you know there's nothing that's been a part of our total revenue. So so there's an impact on prepaid bit unemployment, but the way I would look at it if you looked at a lines of business than what really who is here.

As Chris pointed out so you know for the first couple of months of the quoted.

But the big count was it really to get locked down the lock down you know.

People at home sports upload and that's challenging and by the way that coming out I would say that as of today and in India. In this coming week, we would probably have more than two thirds about thought coming back online and that's going to be positive.

So the so thats one but then the second part you look at it clearly it's a no brainer that the hospitality business is gonna be common.

And and given that we operate in lot of deep islands, where the primary.

First of a local revenue it be hospitality and tourism business they'll be somewhat challenged that beat to be business. We received in two ways. The b to b business, which we put out on a direct customer they'll be close to a few months and so they will happen impact and that that by the way you know toward a BBB revenue. This is.

A small part of it it's not even 5% of what total b to B revenue now the second part.

But it's a lot of this hotels employ our customers and that's where you're correct in the run unemployment hit that and most of these customers are usually our prepaid customers and so people are going to be to conserve the while it's been less on prepaid, but this will come back and I think it's a combination of Dan I'm, losing their jobs.

And staying at home that they'll put the Parisian prepaid initially, but it seems the locked down said done when people start going up they'll want their mobile devices, the London services as well and then you'll start seeing the top up happening again.

But clearly our exposure, it's really in that the the materials.

Oh, Hey, your second question on the cost Yeah, I stood at two parts to cost as you point out you know just the fixed costs in the variable cost what.

We discussed earlier, what Chris and I talked about it it's the fixed cost visa cost that we would pick up no bearable, both costs like hog like content costs and all that will naturally go down if activity drops.

Installation costs and all that will go down that's not in a 150 million 150 million of fixed cost.

It does that mean under recovery that you could see better incremental margin.

Great because you're taking out fixed cost and presumably.

Into what you're describing and may not come back.

Yeah, you're absolutely right Michael I see if there's a few things that I think it's positive here once some of these costs go down to.

Going forward, we are going even more deeply into self installations and that whole bunch of labor costs and supply chain costs that also goes out you know as we come out of this we had no. It's in the in the low single digits. So once we get into double digits into high double digits, which is what Mike.

Focused on.

You'll see when you come out of there's a lot of the install cost which are mostly contracted by the rate lot of that comes out as well in the future you'd see a movement to digitize vision a lot of the channel cost is going to change I'll tell you a paulson, it's it's not be pointed out.

Almost 90% about Halston ages, the now working from home.

The whole concept of called sent to.

A year from now it's going to be so different than what he wants to three months ago.

The worry changing around this and the cost structures are going to change for that as well and more than just the class. It brings us more flexibility in the way we serve our customers when our agents can work from home now they can pick a shift that can be M. One am if they want you. It's a lot of thinks it change quite positively for.

Company like ours coming out of this.

Thanks very much.

Our next question comes from from Matthew Harrigan with benchmark.

Oh, great Q.

Two questions. Firstly, you also progressed movie the deal, making DNA, what sort of your most well known shareholder certainly.

Even right now you're seeing dislocation from some of the Blue chip public companies major holds the talking them out to market, what Mexico over that stock prices are not even to divide your grocery prices level or 2008, I mean, you got to go back to the early 90, 90 degrees and 19 eighties and I could some of those.

Companies are probably intend on some so soldier restructured process at some.

Point in time, I know you've got a lot on your points of do only works the due to the Susan in your markets or do you still feel that you have latitude to be.

Opportunistic given all the dislocations in the market and then secondly, I know difficult courses, but once you usually get pass code nine to.

People out of your whether you're going to be a carnival cruise lines around maybe you could have issues and canal drop or it could entail a ball in or out with deferred.

Trade pattern reduce if there's anything that you're right now every girl in the market, you're still seeing great to be up your products with these victors something that you could you get two or three years out there there's a permanent.

Happened there on the economic activity up and some you do these markets. We are accounted the structural changes and world economy.

A copy them come to you is well I know these are kind of quadrant theological question. So loved it gets your feedback on what your funnel you don't warrants.

Sure Matthew.

It's quite a few questions in there let me let me start with the <unk>.

The.

M&A side, you know of course, we are under look out for any dislocation in any opportunity on rate call. Then what's closely with me I Oh I worked closely with it within we are on the look on and we talk to everybody and I think anybody that has a good idea and know that they can all.

Please reach out to them and if you can imagine many half now I would say if you already see to be a buyer you have to episodic. So that you maybe a dislocation right now, but maybe sell it may not think it did located yet so time will tell them I think any business that already struggling in month one.

Of course at night deal, it's probably not a business that we would be interested in anyway.

You know we'd be looking for good quality companies.

And in areas that we are interested in expanding our business and so I think as time goes on the pipeline will get richer and richer, but there will be very very disciplined on this one.

On the club igniting the impact the larger macro you know my team and I've spent time that adjacent industries like knock do the folks that carnival.

My executive been a given what is it goes shipping talking to all the hotels Atlanta is sandals. So we got a good sense of what those guys are doing and you probably saw the announcement from kind of will that be thing you know in August some of the it gets they're gonna be out.

Even if they're just they're gonna be out.

Miami, Florida.

By October they'll have to more ships you know this is not going to be easy, it's not going to be fast, but this is going to start coming back but.

Just a lot of money on in a holiday adjacent businesses that needs to get the word.

And if you look at our islands and up in where we operate the hotel. The one is one that we want to reopen and strip malls, one to reopen people are going to get creative and they're going to figure things out any which way you looked at this hour services I still necessary for them even enough with noticed close by the way they still keep on service.

Just because you need security cameras, you know your reservation that leads to still be open the they handle cancellation for new orders. Some activity is still happening it's not happening as much as we would like but it's happening and I think.

My sense is this is just a personal opinion.

Over the next 12 months, you're going to see a lot more things coming back people want to travel they want to go down to these islands and these islands, taking all the necessary measures to protect.

Yeah, likelihood, which means you know all the tourists coming into the islands you can see how aggressive they've been with the locked down some but controlling and flattening the curve.

They are very curious about this and that's very good news sports.

Now I'd like to economically and keep the I yeah [laughter].

Maybe.

If you're interested I can ask Jim already provide you an opinion on that.

No I might my questions are little bit maybe keep our expanded by Richie you got the very long term economic impact versus the short term impact, which sounds like you're still very confident on growth factor for the region.

Form I appreciate you taking my question.

Great. Thanks Matthew.

Our next question comes from Kevin Route with real equity research.

Thank you good morning.

Charlie throughout your footprint hats, let's take a different approaches to maintaining.

Uhhuh fixed service for those impacted by code that you mentioned lifeline in your prepared remarks pain concessions.

It seems there could be further regulatory or or legislative action would certainly your market.

Could you discuss this topic generally and what markets you're monitoring for potential incremental.

Regulatory or legislative action. Thanks.

Sure John went to my General Counsel is with me gets not though maybe asking to come in.

In the second you know him he's done by the way a great job in managing will always with all these relationships and expectations that governments.

And and I think would you be fun.

We've been very clear to them that we had to support them. We here for the economy read here for their citizens and we understand what your interest at two I mean do want to do what's right for yet community.

You want to support them.

On that now doesn't the one exposure we may have a is in Panama rich John It would be one very closely it it's public right now they've been trying to make them changes into law and we are working closely with the government due to.

Minimize the impact and I think I think we can be getting that the John you want to make them Oh, yeah sure I mean, Palomar they government trying a lot of cousins did earlier this week, but working closely with his advisors and the other members of the industry to make sure that the impact of that law balances like we.

Do in all countries, both the need of citizens in the country would offer just the need to provide services and and minimal amount in the government that where people you know 10 pay they should be paying and people need to be responsible during this time and we're doing that in Panama surely we're focused on Bahamas in Jamaica, you know those are somewhat.

Primary primary markets and Puerto Rico, we work with the government there, but that's that's pharma model that people see the U.S. with the keep America connected.

Pledge, so and then moving on we'll work with the governments to help them get out of this crisis themselves.

Great. Thanks, John Yeah, you know I think we feel really good about the relationship we've built and how cooperative lot of deep government with it because they realize we are one of the largest employer is on the irrespective country and they also want to make sure that we see helping keep all of my employees that are employed.

Thank you.

My last question comes from not be toward county, with Goldman Sachs.

Hi, good morning, Yalin. Thanks, Kartik our classroom. So a question is all difficulties 19, how do you see there competitions, which also described it in their markets.

And especially the stagnate and Adam in Jamaica, which words bracketing guarantees or use of markets, where our competition has seen affecting that that.

Thank you.

Sure.

Our last that's an outdoor flipping through and answer for that but so far I think you know competition has been very rational or across the board.

You point of Jamaica, we compete with digital that and in digital I you know.

They've been very rational they beat you know they go into some some of their debt issues right now, but they didnt.

I think they'll get it all solved and they've they've been actually good competitor on good and Panama. We you know we've always had a challenging family for mobile operators, but even then right now that's really not the issue or is it mostly the locked down that really to issue in Panama. That's allowed you helped by you would you like.

Provide some wage I thought.

Thank you, but I know I think that is as you said, we don't see any significant change in the competitive picture related to probably maybe the other way rather we are cooperating with the without world competitors. When we are discussing.

Measures the or corporation due to help the government into different markets.

So I don't see any any significant change in the competitive landscape because of it.

It and I would personally I would I would add you know on a on the fixed side inbound Jamaica, and Panama and you can see in our first quarter results. You know we continued to drive you know really nice growth in that area.

The key for us as we move forward here is continuing to.

Push in that area.

Thanks, Chris spectacular.

That said Alaska.

[music].

Okay, which always question and answer session I'd like to turn the call back to go in there for any additional my closing remarks.

Thank you operator, so that you know maybe a you know I say couple of things one.

It's really unfortunately, what we're all going through right now and.

You know for company to come out stronger than it did you really need a few things you want you need a management team with deep experience and knowledge about the business. The management team that's on top of that but ultra deep into read making sure. They know the numbers we know what they do.

Second you need to accompany that happen from downstream.

And the company to generating positive free cash flow.

But you need a company that has a product that people want latitude product the people need.

And if you look at at the right now we have won three yeah I to be a my management team is ready for that they've been ready for it isn't it didn't doing an amazing job then put that would say that but you know I've looked at many teams in.

The team is doing really well and our balance sheet given Chris is on top of it in our balance sheet is strong and this team will deliver positive positive free cash flow and the product that we have.

It's not only what people one this is a product that necessary ended moment, even when you're running the trouble you didn't get more about four new media brought that you need the connectivity that we provide you need the entertainment services that we provide that's why we've had great sales.

Puerto Rico in Chile, Jamaica.

So I think we made good but on the flip side. We we realize this is gonna be tough with pointed up you know the the lock down that had an impact but the markdowns are going to end and just being realized that the we don't take this might be that this is the challenging period.

But we are ready for it and we feel really confident they will really eating into that.

But now and the feature so thank you so much for your support and have a great day.

Ladies and gentlemen, this concludes Liberty Latin America's first quarter 2020, Investor call. As a reminder, every play F. a call will be available and the Investor Relations section of Liberty Latin America's website at Www Dot L.A. Dot com. There you can also find a copy of today's presentation.

Cereal.

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Good morning, ladies and gentlemen, thank you for standing by today's call is being recorded I'll now turn the call overture, that's well connects Stein Chief operating officer of ordinary Latin America.

Good morning, welcome to Liberty Latin America.

[music].

Investor call.

I'm sorry.

Listen only mode to date.

Yes.

On the under the Investor Relations section.

I'm sorry.

<unk>.

GAAP <unk> dot com.

Following todays presentation instructions will be even especially <unk> session.

This call is being recorded.

Today's remarks May include forward looking statement included a company expectations with respect to outlook on future growth prospects and other information in the.

Not at historical facts.

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

<unk> factor or risk that cause results to be fair is available to you work to Latin America's most recently filed form 8-K and form 10-Q.

Latin America disclaims any obligation to update any of these forward looking statements to reflect any change.

Asia or in the conditions, which any such statements based.

In addition on these calls.

Just a non-GAAP financial measures recovery coincides with the most comparable GAAP financial measures.

It's can be found out.

Today's presentation and on our Investor Relations website.

No I tend to call over two hours feel you said by then.

Thank you got to though.

Come everybody to off that's quite a result presentation.

Okay I hope you.

Safe good health during these challenging times.

So I think it just I'll usually reporting format. This water given the unprecedented.

Then the quoted Nike gardening.

I hope you have the opportunity to read my letter to the shareholders published yesterday the earnings release.

In the latter I wanted to share with you somewhat Todd situational no backup business as well give you the cockpit instead, we focus adopting taking proactive measures to weather the storm.

Today's running older or stuff like repeat it can you try to highlight cup off this quarter before adding some color <unk> highlighted.

Chris Doyle, our CFO will then follow <unk> review of our financial performance lunch would hold at Nike is actually not business in more detail and provide an overview of our capital structure imaginable.

That we will get straight to your questions. It's always I joined senior leadership team from across the region now we'll get that involve needed during the Q any holding up prepared remarks.

<unk> point of housekeeping, we will both be working from slides, which you can find although website at www dot Eleni dotcom.

I'll start on slide four key highlights for the quarter.

Oh and positive momentum reported Q4 operational we had a strong thought to be able Q1, but 60000 that that's including a record performance in cable and wireless our financial performance was solid growing revenue by 2%.

Yes, I focus it ought to rebase basis, but all of our reporting segments contributing.

And in line with that investment pieces, we just what change wreak you need to expand on high speed fixed footprint, adding while upgrading an additional 80000 homes across our markets.

We feel really good about the progress we are making.

My team is executing on all cylinders.

Looking forward as I said in my letter we know the next three quarters, one looks like the first.

While days still uncertainty regarding the final impact Colgate 19, we expect ourselves Ricky adversely impacted.

Many unknowns. So it is unwise to give any guidance.

I suspect sometime in the second half the year, we should be a better positioned to discuss possible outcomes that that situation.

We are ready for the challenge.

Various scenarios and determine what we need to do in response.

Hi, I'm very confident enough business over the long term.

Our ability to manage to dispirit at a much stronger.

And finally, we are happy with the upcoming acquisition of eight Yankees assets in Puerto Rico at the U.S., but that's.

Which we expect to compete in the second half of this year.

Moving to slide five and starting with cable why that's on the left.

A little was continued to drive operational execution enough fixed.

As we added a record 10000 customers and deliver best Q1 argue additions since acquiring business between 16.

In mobile coupons subscriber addition to typically softer from a seasonal perspective some of the additional funding Christmas period LT tradeoff.

Jamaica continues to be a bright spot with double digit rebased revenue growth year over year. Despite some impact from Corbett into second half of college.

Turning to Viki oncology kindness center.

We saw good performance in Chile, despite a residual impact from the social unrest in the market.

In particular broadband RG, you ads will over 10% higher compared to the first quarter.

Yeah.

The mobile luck in Chile continues to grow steadily but this remains a small part of our VTR businessmen roughly 90% of revenues come from fixed residential services.

Finally to Puerto Rico under Rightsized to fly up preparation integrate 18 keys assets are moving forward that steady pace.

And this business continues to deliver another growth quarter, adding 9000, Archie was driven by broadband additions over the meeting high speed.

We delivered on these numbers, even with the quick that hit the island in January.

We are used to adversity.

All these cost stroke.

Turning to slide six.

Outlet eight focus areas.

And I wanted to build on some of these points.

For each of these initiatives at positive one of my executive team members to drive results.

We bought a very distributed decision making process is both effective at the edge out when the crisis started our primary focus was on the safety and well being of all employees, we done quickly to call. It second at that point, let others networks and customers.

Working hard to keep our community connected lending needed. Most next few slides I'll luxuries tree areas in more detail.

So let me know target.

Government affairs and reach a partner with John with a general counsel that head of regulatory this has been a significant focus for us.

We have reached out to all of our government stakeholders at various levels can be up partnering with them to make sure that Dino here to provide critical services to debt countries now and into future.

We are working together to government partners, we worked on gaining access to additional spectrum, enabling technicians and thought as to keep on networks up and running.

But to consensus vandalism and to keep individuals and businesses connected.

Governments on apples to keep customers, who can pay as a result, the crisis collected and we agreed to that and supporting these requests.

Leading by adopting special Lifeline tense limited features all growth with maintaining strong relationship with our customers, we except our responsibility at the provider of critical infrastructure. This day. We are also working closely with our communities provides necessary infrastructure tools that enable.

Distance learning and provide free access to key educational and informational website.

Turning to 0.5.

A key staff that we took early on was to create a special task force, let I recall is our head of strategy at M&A.

Colleagues across our operations it functions to drive free priming items one.

Reviewing macroeconomic case studies working with experts.

Okay, that's up business and scenario.

Do you identify areas in which we should reduce cost and areas in which we should continue to invest.

Entry.

Innovate and propel company fall pause Corona buyers will.

We have taken some swift action in terms of cost reduction to manage to disparage, which Chris will get into in most cases. This accelerates plans, we already had and will be up positive three alleged from the current prices.

We see this opportunity medium located at positive things to ensure we are able to catch it.

Next is our balance sheet as liquidity in 0.6 working closely with Chris We took quick action to preserve our liquidity position in anticipation of Sofia global recession.

To retain the equity portion of the transaction fee for the ATM transaction.

Which will cover this in more detail, including the continued strength of our balance sheet.

Thanks to the would create as over the past couple of years, we could position, enabling us to continue allocating capital prudently such as our new build program.

In terms of M&A reaches point number seven than others.

Our near term focus is to complete the acquisition of 80, and Keith Puerto Rico, and you had was United assets. So we can move forward with integrating the business.

This will benefit us from what we anticipate to be an accretive deal on a free cash flow per share basis. This transaction also increases our us dollar earnings in the group.

Yes, good capital allocated.

Also under lookup opportunities to create value and consolidation asset swaps or just general market dislocations situations.

Finally, 2.8 and governance as I mentioned in the letter.

We are fortunate to have a board deep experience and knowledge of our industry.

Keeping that well informed and leaning on debt perspective to ensure we optimize our approach at this time.

Moving to slide seven and the first point enough focus less people and safety.

Yes, part of it carries Scott Chief people Officer.

Keeping up people save engaged and able to were virtually has been our priority.

We acted swiftly implementing all appropriate measures right at the beginning.

We estimate at about 75% of our employees work from home locked up again.

90% of our costs and agents are working from home as well.

It's a great achievement in such a short time.

Commitments help all across the business, especially with frontline colleagues to keep our commitment to affect connected very high.

Our culture has never been stronger.

In one beyond that everyone is impacted by the virus. Unfortunately helped by the proactive measures of the governments in all markets. The only had a small number of all employees infected by Corbett Nike and all of that have recovered on the road to recovery.

You can seem that chart space on googles analytics, and mobility data that our larger markets and force the homeowner measures.

Earlier and more aggressively than the United States.

Earlier. This week you may have seen that we launch our employee.

The funds ceded by the financial contributions up our board members My leadership team and many of my colleagues.

To support our employees and debt families.

You're experiencing financial hardship at this time.

And now while yet taking many cost measures all our people remain employed.

Committed working together to support each other.

Able to contribute to get communities and local economies.

Turning to slide eight.

Core operations the network.

Partnering with the Khemka, Chief Technology Officer Ali networks, a strong flexible and we'll provide ample capacity for this current situation in more for the future.

Our fixed and mobile that what's enabled social interactions education for children.

Activity forward.

Access to information.

Platforms for government to reach citizens.

No submarine cables connect these all to the global Internet.

In essence, we are critical to a functioning society.

As you can seem to set up the slide.

Since the beginning of March yes, double digit percentage peak traffic increases in our mobile networks, roughly 40% increase in a fixed network and close to 50% growth sub sea network Pete throughout usage.

Just how or traffic.

In addition, we also grew capacity to handle traffic Paul wholesale customers, adding 280 gigabyte capacity for the.

Our network team has been good quality and capacity every aspect of funds such that we had double digit increase traffic and providing great service.

Our investment in the network, including increasing sub sea capacity and into hold that connect box and pads wildfire.

Well off our customers many key vendors would.

Increase capacity and kind of applications broadband networks, our mobile networks in the sub sea that looks couples like Commscope Ericsson Walkaway, Microsoft Anixter and will have been really help.

In addition partners like Netflix and Google have been very helpful. As well as we manage this traffic would reduce that rates and flexibility cashing content locally for us.

The grass showed is that traffic with useful peak levels at the content providers adjusted the streaming quality to lead the pressure on networks.

We've seen strong sales over the past 60 days some of our operations install crews have been working very hard we have provided them without it back foods with the necessary baby gear as safety protocols. We saw proud of the commitment of frontline team had and me Doug cut.

And our company.

W re leaning into our Keith this by continuing to invest products.

Turning to further expand on high speed fix footprint to the recipe.

Vital for my section.

Slide nine commercial actions partnering with better marketing Stein, Chief operating officer, and the Ceos in each of our market.

Andrew Smith year mobility, and that's equally.

Fast to react and be proactive.

Go to market activities I'll focus has been to keep our customers and community connected maybe being the most.

Have been many challenges.

We give thoughts have had to close falling lock those impacting sales and collection.

Call Center traffic since increase at the scene.

Needed to enable agents to work from home.

Capacity utilization is at its peak in a BBB customers feet macro pressures, particularly those exposed to the hospitality industry self cable was as markets.

Our commercial teams has stepped up and deliver innovative solutions, we've created virtual stores and expanded self install processes. We enable I'll call center colleagues to work from will introduce a new and introduce a new whatever channel for customer service debt covenants, we created new collectivity plans for custom.

Facing economic hardships and we put in new ways for customers to peers roving cash collection beds in the Caribbean and promotions digital channels. These initiatives are showing results.

We've had some of our highest broadband davies yields in the last fall.

In Puerto Rico and in Chile.

Panama.

Another example, with no over 50% of interactions via whatsapp compared to less than 5% pretty much.

Overall.

We had good first quarter.

We know the challenges ahead of its not going to be easy. We are taking proactive steps, we believe necessary to run a business effectively and to come up even stronger.

This crisis has accelerated many things that we were planning on doing.

And we feel good about that.

We are not deviating from our strategy, while we must address the current challenges.

Yes, Bill managing for success over the long term.

Everybody in Latin America and across the Caribbean once broadband.

Everybody wants to be connected everybody wants great service and everybody wants a great network.

We intend to provide all that good that.

Everywhere we operate.

I couldn't be prouder of all my colleagues in Belleli. This is not a first rodeo Indian crisis.

We are running this like a hurricane Jeff is.

Unlike a hurricane.

Yes, nothing to rebuild at the end of this.

We are realistic about the challenges that we face and we will stay ahead of it that is why.

We are confident about the future.

With that.

Ill now pass you over the crystallizes Chief Financial Officer.

We will talk you through financial performance before we take your questions Chris.

Thanks ballot and to everyone on the call I Hope you and your families are safe and well I will begin on slide 11, and will quickly summarize our Q1 results, we delivered $931 million revenue, representing 2% Rebased growth our U.S. dollar reported.

Revenue was 1% lower as the rebates growth combined with a modest 17 million dollar contribution from M&A was more than offset by $47 million. It net foreign currency impacts principally by 21% average appreciation of the U.S. dollar against the Chilean peso.

Importantly, each of our operating segments reported Rebased revenue growth as I will highlight on the next slide moving to LCF, we posted $364 million in Q1 2028, similar reported results in Q1 2019, consistent with our revenue trend foreign cash.

Currency weighed on our reported Scf, which I.

Our consolidated Rebased OCF growth rate with a solid 4% peony additions totaled $133 million in Q1, or 14% of revenue, reflecting a reduction as compared to $139 million or 15% of revenue last year during the quarter, we continue to invest in output.

As valid pointed out finally, we reported negative $49 million of adjusted free cash flow in Q1 as I mentioned on our Q4 call in February. Our Q1, 2020 result was impacted by a trade working capital unwind stemming apart from our strong Q4 collection activity. This compares.

To $48 million in Q1, 2019, However, last year's result was positively impacted by $67 million insurance recovery proceeds.

Moving to slide 12, where we present, our Q1 segment results starting with BMW. When you look were $589 million of revenue for 2%. When you base quarterly growth outperformance was driven by 5% rebate, increasing residential fixed and a 4% rebate increasing.

To be while residential mobile experience a 6% we base decline in terms of individual market should make it continued to show strong year over year Rebased growth of 8% on the strength of its volume gains over the last year Q1, LCF rebate performance was 6% as we generated.

$233 million.

This growth was supported by the aforementioned revenue growth as well the benefit from reduced sports content costs.

MWP any additions were $71 million, a 12% of revenue and included approximately 40000, new upgrade homes during the quarter.

Moving to the tea on Chile, and probably ticketing Costa Rica, we reported revenue of $240 million up 1% year over year on a rebate spaces, and we see a $93 million representing 2% we bakewell.

Oh, yes growth partially needed non functional FX exposure in Chile, as the Chilean pesos weakened significantly to the U.S. dollar over the last year.

Our key any additions were $45 million in Q1, reflecting a year over year decreased 19% in revenue from 20% last year's Q1.

During the quarter, we added approximately 30000, new or upgraded homes.

Finishing on the right Liberty, Puerto Rico continued its strong track record of delivering growth and generated $105 million of revenue what sleepers that rebased growth as compared to Q1 2019. This solid result was helped by 34000 subscribers added over the last year and partially tempered by 2 million.

Our credit provided to customers following that January 2020 earthquakes.

Highlighting the operational leverage we posted LCF of $51 million, reflecting rebased growth up 4% in the quarter.

Finally, we reported $13 million appealing additions or 13% of revenue in Q1, as we added over 5000, new homes to our footprint.

Building upon balance earlier statements. We thought it was helpful to frame key elements of our business that we are particularly focused on in this uncertain environment and how our business may be impacted across our diverse set of geographies starting on the left part of the slide first travel and stay at home Lockdown restrictions.

I've had a profound impact on our markets. Both in terms of curtailing economic activity, but importantly, slowing down the infection rate going forward, the timing phasing and to access ship associated with the release of these restrictions will be critical to economic recoveries. We are seeing some good signs other cros are more.

Than 20 consumer markets in aggregate the rate of doubling in reported cases of approaching three weeks bank the proactive measures from our government.

Second as it pertains to our business. We currently expect residential effect residential mobile and B to B will be impacted definitely and us based on product composition with these operating segments, we will experience a different outcome.

Our operating businesses aren't different stages of digital evolution. The degree of digitalization combined with the need for face to face interactions what influence our level of sales in collections customer service and install activity for the reasons, which I guess flag, we expect our traditional cable businesses such as VTR an hour.

We are will be much more resilient in the face of coal that 19.

Touching upon each of our operating segments beginning at CNW, The operating segment, which provides consumer b to b and subsea services across the Caribbean and portions of Latin America.

Our consumer markets have various restrictions and locked out in place with several of our largest market such as Panama, Bahamas, Barbados, having quite aggressive plan.

Across the MW many of our islands are highly depended upon tourism hospitality and a lack of such over the coming month will impact us directly and indirectly for example, we estimate pre co that that we generated about $15 million quarterly revenue from businesses in the hospitality sector.

We also expect that business isn't government that largely financially impacted by the lack of tourism and economies in our markets will suffer our residential customers will continue to reduce prepaid wireless usage and top up less as they remain at home.

Roughly 50% of our revenue derived from non subsidy to be and prepaid wireless we expect to see significant near term pressure on these revenue streams.

Flipside fixed residential postpaid mobile and our subsea businesses account for the remaining 50% and we expect these services to be far more resilient network connectivity of in high demand.

I read out CNW, the Caribbean still predominantly a cast society and face to face interactions remain important way for us to seller services and collect on bills.

Did a lot down only about 65% about stores are currently open and we are working hard to increased usage at digital payment channels.

Frictions, let our ability to further secure team that will be much improvement.

Even in the last 10 days collections have meaningfully improved versus the first few weeks that April when a shutdowns were taking effect.

Moving to our cable operations in Chile, and Costa Rica, though countryside controlled lockdowns in March, including Rolling locked down to cross Chile.

Commercially the majority of our stores are open across both countries importantly, our largest single operation BTR has a significant proportion of collections flowing through digital channels from a business perspective fixed subscription revenue on postpaid subscription revenue account for over 95%.

Our total revenues to market, which is that just turned positive.

Turning to Puerto Rico, the island aggressively locked down relatively early and is controlled the rate of infection.

With many of our stores close we continued to see demand for residential products and collections have remained consistent with nearly 90% of our business and that the Puerto Rico tied to residential consumers.

Our broadband product our most popular the bundle and predominantly digital collection channels, we remain cautiously optimistic about our near term prospects.

Moving to the last column and the financial and operational applications of code at 19, although our overall business held up well during Q1, we are withdrawing our 2020 guidance given the substantial uncertainty that we face within our markets, we expect to see a far more pronounced revenue and cash flow financial impact beginning.

You too, especially at CN Debbie.

We are monitoring macroeconomic conditions across all of our markets, including movements in foreign currencies and the health of balance sheets and the government within our footprint.

Operationally, our commercial teams have begun rolling out lifeline products for customers in need and are generally not just connecting customers for non payment at the time.

Collections will remain difficult, particularly in markets with commercial locked out in place end markets that are challenged economical.

Lagging collections, what Bursley pressured near term trade working capital. However, we are dividing new methods to correct that are monitoring and managing our operating cash flows closely.

Ballad discussed we are knocking at a $150 million that fixed operating costs in capex reductions.

What about evenly between both categories into a large extent that reductions will be concentrated thats in Debbie.

We expect of our variable cost such as cause that to deal related costs. In Capex will also declined with reductions in revenue we have additional action dignified sell they needed to preserve financial flexibility and liquidity conditions across our markets were to deteriorate more than we expect.

All said, we remain focused at the company to deliver positive free cash flow this year.

On slide 14, I wanted to cover our balance sheet and liquidity situation in some detail starting with the hexagon. Nonetheless, we ended Q1 to $6.1 billion of net debt and with a net leverage ratio at La 3.8 times for Q1, two things to note our purchase of the 18 he assets and.

Puerto Rico, and USPI will total $1.95 billion the debt financing for which has already been completed we borrowed 50% about us dollar Rcs in March totaling $467 million across our three primary credit silos and this cash with the eyes on our balance sheet today.

This was principally as a cautionary moved to preserve the financial flexibility and ensure access to capital as well to fund a portion of the ATM T. acquisition.

Excluding the restricted cash balance we have total liquidity at $2.2 billion, consisting of $1.6 billion of cash on hand at approximately $650 million in undrawn available liquidity under our revolving credit lines, our weighted average maturity exceed six years as depicted in the bottom right at this slide and we have met.

Them all debt due over the next few years are fully swapped borrowing costs have fallen by 20 basis point to 6.4% as compared to Q4 as the $1.6 billion January refinancing reduced our term loan costs at CNW by 100 basis points to LIBOR, plus 225 basis points and important element.

Our risk mitigation strategy is that we match our borrowing to our underlying CF generation and as a result, approximately 85% about that is hedged to our underlying functional crime.

Given the situation I wanted to highlight the application we have with respect to our maintenance covenant at each of our key credit Styler that Q1 as the chart on the far right at this slide illustrates.

At CNW, our maintenance test is based on five times proportionate net senior secured debt, we will roughly 2.1 times that Q1. This covenant falls away when we have less than one third drawn on our 625 million dollar RCM at VTR, our maintenance test is based on three times net.

Secured debt at the Chilean operating company level, and we were at 0.3 times secured at the end of Q1.

LPR, we have a maintenance test at five times net secured debt and finished Q1 at 4.4 times.

Following the closing of the ATM T. transaction, we expect headroom to improve within this credit.

Beyond our debt liquidity, we put in place it two year hundred million dollar stock repurchase program in mid March by having an authorized program we have additional flexibility to capitalize on valuation dislocation in sharing we remain focused on efficient capital allocation.

Obviously will be high protective of our liquidity given the uncertain outlook for Calvin 19.

Within the quarter, we repurchased a small amount of equity and have continue this activity into the second quarter.

Moving to slide 15, I will wrap up our prepared remarks, our first quarter results highlight that way on the right track that our underlying operating strategy is working our focus remains on fulfilling our customers' needs due to activity and network superiority and also achieving operating efficiency no.

Now, we find ourselves a rapidly changing and difficult environment impacting duration of Kobe 19 is highly uncertain and as a company. We believe it will change how we interact with customers.

We expressed in our earnings materials and on our call today that our business like that of other telecom operators in our region will face financial and operational challenges driven in part by the financial health of our customers and the overall economies in which we operate as valid pointed out we have management operational experience dealing.

With adversity, we have well developed processes to quickly make decisions, allowing us to support our employees and customers at this time of need cash flow generation remains at the core how we run this company, where occasion content capex reductions across our business to assist in our drive to maintain positive free cash flow this year.

And to offset expected declines in revenue to the extent needed we have additional levers at our disposal to improve our cash flow and financial flexibility.

Turning to our acquisition of 18 to assets in Puerto Rico US Virgin Islands, we have the funding in place to complete the transaction and we remain confident that will significantly enhance our us dollar cash flows in the coming years.

We will maintain ample financial flexibility and will be disciplined at how we utilize any excess capital to drive returns for our shareholders with that operator, we're ready to take question.

Thank you the question and answer session will be conducted electronically. If you would like to ask a question regarding the company's operations. Please do so by pressing the star or asterisk key talent as it did you want on your touched on telecom.

In order to accommodate everyone. We request that you only ask one question with one follow up if needed if you're using a speakerphone. Please make sure. Your mute function is turned off to a lighter signal to reach our finance well pause for a moment chicken everyone an opportunity to signal for questions.

Well take our first question from James Ratcliffe with Evercore ISI.

Good morning, Thanks for taking the question not too, but first of all on cost savings plan can you talk more about when the operation side or the.

Torture revert to measure or more sustainable cost reductions and how much of the wording nerf and play.

So on.

And when the Capex side, what sort of capital.

We will be looking for what wall TV, earning money on.

And secondly regarding the effort to keep people connected during the endemic.

Can you just talked about how that affects.

For example, how many customers would you get connected by now the work or Barry and Asian customer activity that bar. Thank you.

Thanks James.

Sure I mean on the cost of living side.

We've been quite prudent about it.

Not something that.

The aggressive and looked at both Capex and Opex. So an example on Capex cut would be something would be like how is we've already and it all up LBJ migration, let me say what.

Probably done pretty Dallas that we guided you probably don't need to build it yeah.

And probably in the year to really go back that.

On the Opex I, usually lot of the same thing we looked at some of the third party.

Melting pot, we looked at some of the labor costs.

The number to think that we've taken out night varied a chunk of it possibly permanently become so it's quite a positive.

On the pandemic it no the.

Right now as you know as we pointed out both puts his comment than mine that not.

A lot of B.

I cannot afford to pay we've decided to keep them. One we moved into a dual Lewis <unk> product to the disconnect between a drop.

Naturally, but I think that.

It probably would look back to see maybe a tick higher.

You had to keep up at this point.

Great. Thank you.

Well take our next question Soomit Datta with New Street research.

Thanks for the on the question.

A couple of possible just only.

I guess, we'll try to get it gets to where revenues are going.

You were guiding to.

FLIR 150 million U.S., we allow sort of hoping for growth.

Which as adults with maybe hundred $50 million, then you're looking at some savings from Capex and opex of $150 million.

The thing that.

Perhaps the worst case scenario do we really.

Really in dollar revenue hit for my little tend to be a bit too cute about love, but thinking.

Hello.

Subsea cable obviously the.

The volumes are going to be strong.

During the presentation is not one of the business is not where you monetize and more recently the high volumes pricing model allows for that.

Thank you very much.

Sure.

And maybe thats good built to think about an answer yet but what.

I think everybody's going to try to do the back with Matt to get the revenue.

Numbers, we modeled quite a few things and I think it's not going to be that simple model. It back one, but you really don't know how it's going to play out.

We have email ability in Italy, we have what we think it's going to play out would be condition, we up at the Super with indigent respect that's our balance sheet many different ways.

And Chris has done a really good job with that.

But suffice to say that we are going to run this business both pump because with an eye booked limited treatment for management team is committed to that and and I don't think you'd be Brett do that.

On the subsidy side.

We're not taking price increases, we thinking a lot more volume and subsidy.

Lot of customer need the additional capacity and do not.

We are not being greedy novvi Bryan do I take advantage to reach and right now, but people need that additional back big needed that lot of Buffalo bills estimate a dependent on it.

And it's nine foot to step up and and provide for them, but you want to give a little bit more color and no I wouldn't say just on on the on the revenue component key variable at least in the near term it does the.

The status of the locked down and the number of the market.

They are starting we're starting to see them relief, but that is that's the key variable in terms of now how revenue will play out over the next.

Next few months.

So thats one that's obviously outside of our control because with the government, but as that changes then we're able to.

The extended what the extend longer than we are able to take more cost out of the business.

The the Liberal boundless speaking about around positive free cash flow Brooklyn.

Okay, great. Thank you.

Our next question comes from Michael Rollins with Citi.

Hi, good morning, and thanks for taking the questions.

Curious if you can kind of go back you know the history that youve seen across your businesses how.

Does the unemployment rate.

In different countries like that.

Yeah.

Payment.

Hi, those customers.

Oh for your products, maybe just to get it and the.

Given the Connie.

Relative to the behavior.

And then the second question I had is with the cost cutting.

The cost cutting variable to the revenues. So we're really the prices and your revenues recovering those expenses come back or is this improving accelerating some of the cost efficiencies you didn't wanting to bring to the business.

Particularly in the past such that the operating leverage on a recovery might look different than maybe over the past couple of years. Thanks.

Sure Michael.

No the what's going on in unemployment rate of course unemployment will affect.

Buying power, but just how I would look at it.

We know the business that probably more sensitive to that is our prepaid business.

And in prepaid it is.

Got a huge bought up our revenues being bye bye.

But you know prepared with mobile revenue stream with its about not nothing that's been a part of our total revenue. So so there's an impact on prepaid bit unemployment, but the way I would look at it if you looked at a length of business than what really who is due.

As Chris pointed out so you know.

Couple of months of the quoted.

But the Big Council as it really to get locked down.

The lock down.

With people at home sports upload and that challenging and by the way that's coming out I would say that that's a day and it's coming we would probably have more than two thirds about thought coming back online and thats going to be positive.

So the but that one but then the second part you look at clearly it's a no brainer would that be hospitality business is going to be challenge.

And and given that we operate in lot of be islands, where the primary.

First of a local revenue you hospitality and tourism business, there will be somewhat challenged and that BBB business, we feed into the b to B business, which we put out on a direct customers there will be close to a few months and so they will happen impact and that that by the way toward a BBB revenue. This it.

A small part of it it's not even 5% of our total b to B revenue now the second part.

Up it is a lot of the hotels employ our customers and Thats, where your question around unemployment hit that and most of these customers are usually on prepaid customers and so people are going to be conservative that built while it's been less on prepaid the people come back and I think it's a combination of Denver.

Losing their jobs and being at home.

Dealt with the Parisian prepaid initially, but if the locked down said done when people start going up they'll want their mobile devices, the London services as well and then you'll start seeing the top up happening again.

But clearly oh exposure is really in that the the material.

Oh your second question on the costs, Yeah, I stood at two parts to cost as you pointed out that the fixed costs in the variable cost what.

What we discussed earlier, what Chris and I talked about it the fixed cost visa cost that we would pick up no variable both cost like hog the content costs and all that will lead to go down if activity drops.

Installation costs and all that will go down that's not in 150 million 150 million of fixed cost.

And so does that mean under recovery that you could see better incremental margin flow through because you're taking out fixed cost and presumably.

To what you're describing and may not come back.

Yeah, you're absolutely right Michael lights, I see it gets a few things that I think it's positive.

One some of this cost goes out to.

Going forward, we are going even more deeply into south installations, and the whole bunch of labor costs and supply chain costs that also goes out you know as we come out of that we had no impact in the low single digits. So once we get into double digits into high double digit just which is what Mike.

Focused on.

You'll see when you come out of does a lot of but install cost which are mostly contract is by the rate lot of that comes out as well in the future you'd see a movement to digitization a lot of the channel cost is going to change I'll tell you a call centers. It's now we pointed out.

Almost 9% above Halston ages, the now working from home.

The whole concept of called sent to.

A year from now it's going to be sure different than what he was just three months ago.

The world changing around is going to construct is there going to change for that as well and more than just the Clos brings us more flexibility in the way we serve our customers when our agents can work from home. Another can pick a shift that can be M. One am if they want you. It it's a lot of thinks it change quite positively for.

Company like ours coming on.

Thanks very much.

Our next question comes from from Matthew Harrigan with benchmark.

Oh, Thank you well your two questions. Firstly, you absolutely groups movie the deal, making DNA with your most well known shareholder.

And even right now you're seeing dislocation from some of the Blue chip public companies bigger.

Talking about the market, what Mexico stock prices or not even at the 98 restaurant level or 2008, I mean, you've got to go back to the early 1990 degrees and the 19 eighties, Yeah I picked some of those companies are probably intend on some so soldier restructured process at some.

Brian I know you've got a lot on your point you only works the due to the suits use it in your markets, but you still feel that you have wants you to do.

Opportunistic given all the good publications in the market and then secondly, I know difficult questions, but once you usually get yeah, who could die to.

People out of your where they're going to be a carnival cruise lines around but BBW fusion canal drop it could entail about all of our deferred.

Great pattern, reducing theres anything that you're right now I mean, clearly the market you're still seeing great to be up your products with these victors plugging that you could you get two or three years out there there's a permanent dampener on the economic activity in some.

Markets, we are accounted the structural changes and world economy.

Copper gum jewelry as well.

These are kind of Quadro Theological question Bill Love to get your feedback on what your funnel you don't want.

Sure Matthew.

It's quite a few questions in there.

Let me, let me start with the.

The.

M&A side, you know of course, we are under looked out but any dislocation any opportunity.

Ray call them closely with me Oh, I looked locally within the thin.

We are on the Luca then we talk to everybody and I think anybody that has a good idea and know that they can always reach out to them and as you can imagine many have now I would say for it we always say to be a buyer you have to epicel there. So.

You may be a dislocation right now, but maybe salads may not think it is located yet so time will tell then I think any business that already struggling in month, one of cold it might be and that's probably not a business that we would be interested in anyway.

You know really looking for good quality company big and in areas that we are interested in expanding our business and so I think as time goes on the pipeline will get richer and richer, but I will be very very disciplined on this one.

On the Carbonite being the impact the lots of macro you know my team and I've spent time with the Jeep in industries, but talk through the both at Carnival.

No my executive been given why does it goes she'd been talking to all the hotels Atlanta is sandoz do we get a good sense of what books guys are doing and you probably saw the announcement from Carnival that beat thing in August some of the if they're going to be out.

Even if they're going to be out.

Out of Miami, Florida.

By October they'll have to more ships.

This is not going to be easy, it's not going to be fast, but things are going to start coming back, but there's a lot of money on in all these adjacent businesses that needs to get to work.

And if you look at our islands and up in Red We operate the hotel owners is one that we want to reopen and.

Strip malls want to reopen people are going to get creative and they're going to figure things out any which way you looked at this knowledge services the lift third for them, even though it's not it's close by the way the still keep both services because you need security cameras.

Your reservation that needs to still be open the they handle cancellations the new orders some activity still happening it's not happening as much if we would like but it's happening and I think.

My sense is and this is Jeff but personal opinion.

Over the next 12 months, you're going to see a lot more things coming back people want to travel they want to go down to these islands and these islands, taking all the necessary measures.

Yes, yes, likelihood, which means you know all the tourists coming into the islands.

You can see how aggressive they've been with the locked down and controlling and flattening. The curve. They are very curious about this and that's very good news for us.

Not at a black probably keep the.

Yes [laughter].

Maybe if you address that I can have gimoti provide you an opinion on that [laughter].

No I my questions are little bit maybe keep large standard-bearers. He can't keep up the very long term economic impact versus short term impact it sounds like you're still very confident on growth sector for the region.

Thanks, Bob I appreciate you taking my question.

Good Thanks Matthew.

Our next question comes from Kevin Rail with real equity research.

Thank you good morning, Charlie throughout your footprint has.

Taking different approaches to maintaining.

Mobile fixed service for those impacted by code that you mentioned lifeline your prepared remarks pain concessions.

It seems there could be third or regulatory or or legislative actions in certain of your market.

Could you discuss this topic generally and what markets, you're monitoring for potential incremental regulatory or legislative action. Thanks.

Sure John read that my General Counsel is would be gets month, though maybe I can comment.

In the second.

He's done by the way a great job in managing we only with all these relationships and expectations that governments.

And and I think you respond.

We've been very clear to them that we had to support them. We here for the economy read for their citizens and we understand what your interest at while I mean do want to do what's right.

Yes community and we want to support them.

On that now that the one exposure we may have a is in Panama rich John is would be one very closely it it's public right now they've been trying to make some changes in dialogue and we are working closely with the government due to minimize.

The impact and I think I think we're getting that the John you want to make them.

Yeah, sure I mean, Palomar they governance on a lot of present did earlier this week, but working closely with news advisors and the other members of the industry to make sure that the impact of that law balances like we do in all countries. Both the need of the citizens in the country with also just didnt.

To provide services and and we will align with the government that where people you know tenpenny, they should be paying and people need to be responsible for this time and we're doing that in Panama.

Surely we're focused on Bahamas in Jamaica, you know those are some of our primary primary markets and Puerto Rico, we work with the government there, but that's that's fallen them all that people see U.S. with the keep America connected.

Pledge, so and then moving on we'll work with the governments to help them get out of this crisis themselves.

Great. Thanks, John Yeah, I think we feel really good about the relationships built and how cooperative lot of deep government with it because they realize real one of the largest employer is on the respective country and they also want to make sure that we see helping keep all of monthly but employed.

Thank you.

My last question comes from me toward coming with Goldman Sachs.

Hi, good Martin Yalin, Thanks, partly back last year. So I'll catch me all the difficulties 19, how do you keep their competition once with false are described in their markets.

Nance, especially the timely and Adam in Jamaica, which were bracketing guarantees for use of markets. While competition has no effect from that that thank you.

Sure.

Last but still outdoor flipping through an answer for that but so far I think you know competition, it's been very rational.

Across the board.

You pointed Jamaica, we can be would be detail that.

No I you know.

They've been very rational they beat you know the going through some.

Some of the debt issues right now, but they didnt.

I think they'll get it all solved and that they've been actually good competitor.

Good and Panama.

We've always had a challenging family for mobile operators, but even then right now that really not the issue, but it won't be the lock down that really de here in Panama. That's allowed you have by you do like provides more insight.

Thank you, but I know I think that as you said, we don't see any significant change into competitive picture related to call. It maybe the other way why don't we are collaborating with the without work compared because when we are discussing.

Measures the or corporation due to help the government into different markets.

So I don't see any any significant changing the competitive landscape because of public.

And I would personally I would I would add on a on the fixed side inbound Jamaica, and Panama and you can see in our first quarter result, you know we continued to drive you know really nice growth in that area.

The key for us as we move forward here is continuing to.

Push in that area.

Thanks, Good luck.

With that Alaska.

Yep.

Okay, well Jays question and answer session I'd like to turn the call back to balance there for any additional my closing remarks.

Thank you operator, so maybe a you know I say couple of things one.

It's really unfortunately, what we all going through right now and.

No for company to come out stronger out to you really need a few thing you one you need a management team with deep experience and knowledge about the business, but management being thats on top of it but also deep into we'd making sure. They know the numbers below what they do.

Second you need to accompany that happened from balance sheet.

And the company to generating positive free cash flow.

Good you need a company that has a product that people want that to a product of people need.

And if you look at the right now we have won three yeah I can be a my management team is ready for that they've been ready for this and it didnt doing an amazing job then, but they would be that but you know I've looked at many teams and they do is doing really well and our balance sheet given Chris is on top of their balance sheets from.

And just seemed will deliver positive positive free cash flow and the product that we have.

It's not only what people one this is the product if necessary in this moment, even when you're running the trouble unique mobile or you need a broad that you need but connectivity that we provide you need the entertainment services W. provide that's why we've got a great deal.

Puerto Rico or in Chile, Jamaica.

Right. Thank me mid good but on the flip side, we realize it is gonna be tough.

We ended up.

The lock down that had an impact but the markdowns are going to end and just being realized that the you don't think this might be that this is the challenging period, but we're ready for it and we feel really confident and we're really eating into that.

So now and the future. So thank you so much for your support and have a great big.

Ladies and gentlemen, this concludes Liberty Latin America's first quarter 2020, Investor call. As a reminder of replay of the call will be available and the Investor Relations section of Liberty Latin America's website at Www Dot L.A. Dot com. There you can also find a copy of today's presentation.

Terry.