Q3 2020 Liberty Latin America Ltd Earnings Call
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Please standby good day, everyone. You are currently holding for Liberty Latin Americas third quarter 2020, Investor call. Thank you for your patience the Investor call will begin momentarily. Please standby.
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Good morning, ladies and gentlemen, and thank you for standing by today's call is being recorded I'll now turn the call over to the day Camco, Chief Technology and product officer of Liberty Latin America.
Good morning, and welcome to Liberty, Latin Americas third quarter Twentytwenty he lets call.
At this time, all participants are in listen only mode.
Today's call and presentation materials can be.
Be found under the Investor Relations section.
Latin Americans website at Www Dot com they talk about.
Following todays formal presentation.
Structures will be given for a question and answer session.
And keep in mind, if this call is being recorded.
Yes remarks may include forward looking statements.
Including the company's expectations, despite its outlook and future growth prospects.
The information and statements that are not historical fact.
Actual results may differ materially from those expressed or implied by these statements.
Additional information on factors that could cause results to differ is available and somebody Latin America's most recently filed form 10-K and form 10-Q for the quarter ended March 31st 2020.
Liberty Latin American disclaims any obligation to update any of these forward looking statements to reflect any change in its expectations or in the conditions on which such statement. Despite.
In addition on this call people just like a certain non-GAAP financial measures, which have been concise to the most comparable GAAP financial measures, which can be found in the appendices to this presentation and on our Investor Relations website.
I would now like to turn the call over to our CEO Mr., Bob and I are.
Thank you Vic and welcome everybody to our third quarter results presentation.
Firstly I hope you and your families does save and in good health.
So today running order I'll begin by providing an update on our operations in particular as a recovery. We have started to see the investments we are making in a product they left but the stylish a foundation for future growth.
Chris Lewis our CFO will then follow with a review of our financial performance after that we will.
Got straight to your questions.
As always I am joined by like executive team from across the region.
Let's get them involved thats little bit during the kidney.
In our prepared remarks.
That's the point of housekeeping, we will both be working from slides, which you can find on our website at www Dot L.A. dot com.
I'll start on slide four with a key highlights for.
Following a challenging second quarter, we delivered improved financial and operating performance in Q2.
Most of our markets begin to recover from the impacts of called it like.
Operationally, we had excellent results in cable and wireless and Liberty Puerto Rico.
In both cases, we delivered record quarterly additions, it's over 100000 RG use added across the two segments.
Although that's also recall that as we get 69000 subscribers in Q3.
Financially we grew revenues sales adjusted OIBDA does sequentially without cost management efforts, making a significant impact in driving adjusted OIBDA close to our Q1 pretty corbett level.
For our adjusted OIBDA margins also improved.
And we completed the acquisition of ATM keys, Puerto Rico, a U.S. Virgin Island assets on October 31st.
We are very excited about the opportunity to further strengthen our consumer offering and wonderful best performing markets, while also generating significant synergies.
I will cover our prospects in greater detail later that day.
Finally, we were informed earlier this week of preliminary awards made by the FCC and they've been any andr I'll put the equal size.
Following a competitive process. We are easily that you have one funding to improve broadband speeds and 43 municipalities out of 78 across the island.
Including San Juan and the other key metro areas.
Moving to slide five and an update on the impacts we have seen from quoted led to key markets.
We believe these restrictions that generally east across the region, helping to drive improvements in our operations.
However, some markets have experienced more severe impact than others as can be seen in the chart on the slide.
All of our key markets Oh operations in Puerto Rico, Jamaica of course study.
The least impacted by mobility restrictions in Q2 and should improve year over year revenue growth in Q3, EPS restrictions, where it used to.
Jamaica in particular, because it well it 4% rebased revenue growth in the third quarter, driven by strong profit performance and stability in mobile.
And she led more severely impacted markets after with the lower left off the chart.
Both cases ability restrictions are easy, but for much of Q2, and Q tree very strict lockdown legislating horse and restrictions on a relative basis remain more stringent than in other markets.
Overall.
All our key markets are moving in a positive direction in terms of increased mobility.
However, we remain watchful given the unpredictable nature of the virus.
Turning to slide six and a fix subscriber performance by reporting segment.
Starting with cable and wireless Nonetheless does the slide.
We achieved record quarterly growth of 66000, Archie years, driven by Palomar Beverly added 45000 subscribers in Q3.
A successful collection initiatives to reduce churn.
We see a significant longer term growth opportunity in this market and that's continuing to invest in their networks our products.
Jamaica was the other highlighting cable and wireless as we had another strong quarter, adding 19000, RG use and taking us to 65000 additions year to date free.
Three times the amount we added in the same period last year.
Moving to VTR and cover the Tico before.
The flag some challenges in Chile on our last call and has since reported subscriber losses in Q2.
She lays our most competitive fixed market and we also experienced a metric related disruptions there following the significant spike in bandwidth demand and vandalism do social unrest we have is.
Finally, today's through targeted networking customer service investments working with the government and service initiatives, which have resulted in improving monthly performance for this segment as shown in the trial.
Probably deeper continued to grow its RG. Your days, however, at a slightly lower rate versus prior quarters that there was some impact from COVID-19 restrictions.
Finally, the Puerto Rico, where we achieved yet another record quarter, adding 43000, RG use and beating the previous record reset in Q2 this year.
This is a truly remarkable performance from our team on the island and be excited by the prospects of combining our business with ATM, Keith leading operations and Netflix.
At a group level. This resulted in 35000 net adds in Q3.
The numbers for a game impacted by the removal of RG is primarily impella, who are receiving services, but not call it due to non payment.
Moving to slide seven and mobile and B to B, where we have seen the credence negative impact from the pandemic.
Encouragingly both products certain improved performance during Q3.
First the mobile and the chart on the left of the slide.
Looking at performance over a longer period.
We made important operational improvements to our mobile business in 2018, which led to stabilization of our subscriber base in 2018.
COVID-19, then drove significant prepaid subscriber losses in each one training training due primarily to mobility restrictions limiting the ability of customers to access services and reduced demand for top ups generally given the time customers spend in their homes.
In Q3, this mobility restrictions with east across our markets and we began to net adds it's 69000 subscribers added across the group.
Our third quarter performance was driven by 54000 adds in Panama as the country began to reopen and 19000 in Jamaica following successful subscriber acquisition campaigns.
In Chile subscribers declined by 11000 in Q3 due to store closures related to lockdowns and promotional activity from competitors.
Moving to BBB underwrite.
I'll be to be business reported a sequential revenue growth of 6% in Q3 big improvements across all product segments as markets begin to recover from the initial impact a step and then.
On the far right of the slide.
Split of B to B business by customer segment.
During the revenue size and relative sequential growth for each.
We saw the strongest growth in our government customer segment, driven by an ongoing project impella and sales across other markets in the Caribbean.
Wholesale in SMB with the next best performance as bandwidth demand drove capacity requirements and this small medium business segment benefited from markets beginning to reopen.
Our enterprise and hospitality segments stabilized in the third quarter showing signs of recovery.
We expect future improvement to be tied to general economic recovery for enterprise and the retailers tourism for the hospitality segment.
Turning to slide eight where.
Where we highlight some of the innovative products vs lunch during quoted Nike and that's continued network expansion investments.
Starting with our consumer product launches on the left hand side.
The other section refers to a next gen TV product, which serves as a video content aggregator with access to apps or de content and traditional broadcast video with a personalized recommendation engine and Google voice assistant.
Puerto Rico was the first market analysts product candidates in NPS up by over 35%.
We have also launched more recently in Panama, where this differentiates us versus our competitor and are already seeing about half of our customers use the voices capability and view.
Below entertainment innovation, we have highlighted our adaptive Wi Fi product we.
We recognized you home connectivity as a key aspect of a leading broadband offering and has now rolled out our optimize Wi Fi product in nine markets covering over 80% of all our models and touching 60 million connected devices.
Moving to the center line and a new B to B product design.
Address the needs of business customers at the employees increasingly wear for remote locations through.
Through our product businesses can ensure their employees have the best connectivity to dedicated network access security protocols controlled by company policies and all within that service that can be implemented remotely EBIT ongoing business class support.
Finally on to write off the slide despite depend Danny we are continuing to lean into our thesis of growing broadband penetration in the region. We have created a build an additional 79000 homes status and the cost.
What that closed at 9% of this activity through fiber to the home and this is the primary technology, we are using for network expansion.
As mobility improves in Q4, we expect to release, another 100000 homes passed of which about half will be in Chile.
Reigniting our business there.
In addition, as I mean.
Mentioned earlier, we will successfully awarded funds under unique endo in Puerto Rico.
This will enable us to upgrade and expand our footprint.
Bring access to more people and narrowing the digital divide.
We were allocated approximately three quarters of the homes available under the program in Puerto Rico and excited to continue raising the bar for our customers with the latest most reliable broadband offerings and innovative products.
Moving to slide nine and our operational focus areas.
Starting with cable <unk> wireless on the left hand side.
A key focus from the outset of the pandemic has been to maintain our collections and as part of that will also increase the use of digital channels.
As shown in the chart our collections dipped in April as we covet and be able to throw out the months since returning to pre corporate levels.
A digital channel payments at cable and wireless is still relatively low at 25%.
But they have increased seven percentage points since March and we are working to improve that percentage further.
Well that digital payments for VTR cover Utica, approximately 75% and Liberty, Puerto Rico represent about 85% of collections.
I met with strength is vital to our operations and we have invested in fixed capacity increases of 69% and 32% in Jamaica Padilla, respectively since much for us yes.
We have also increased our cash and capacity by 37%.
Who is the VTR incentive to slight sales.
Mentioned previously there has been some pressures in Chile. Following despite imbalanced event earlier this year and subsequent impact on our network.
The chart here shows the benefit of the investments I mentioned to address these dose network challenges a multi technical related customer service costs have decreased by nearly 50% from April to September.
Does that correlate it on a lag basis to improve monthly subscriber performance.
We carried out at approximately 30% more technical field activities across the network in Q3 has increased capacity by states as much for us and expanded cashing in interconnect by over 35%.
Finally to the right of the slide in Puerto Rico.
Focusing these markets to maintain our leadership through innovative products, such as hub TV and offering the best broadband speeds and we are proud to have once again been awarded a plus B. This award for quarter equal in 2020.
As with the rest of our businesses, we have invested in additional capacity in Puerto Rico with a 35% increase since much for us all.
All our network expansion is to FTP age.
Finally for my section is like that in the recently completed acquisition of 18 and keep the assets in Puerto Rico, and the US Virgin Islands.
On the left of the slide I wanted to refresh some of the highlights of the combination.
Well that 18. These predominantly prostate operates its been relatively stable to the pandemic with revenue probably flat year over year in each one claim trends.
Through the transaction people create an integrated operator, leading fixed and mobile propositions.
We expect that this will enable us to deliver convergent product offerings for our customers.
The feeling from cross selling opportunities Nvidia is jen.
The ATM business. It also brings a robust infrastructure with a well invested fiveg ready mobile network, an island right wireline fiber assets.
We are creating a more resilient, but as the platform can deliver telecommunication services as.
As with any in market combination, we anticipate the transaction will generate significant synergies and our expectations have not materially changed from when we agreed to the transaction.
Finally, we are long dated financing in place to fund the acquisition and importantly, increasing U.S. dollar cash flows for the Allied route to this deal.
On the right of the slide we less immediate focus areas.
But we want to integrate and grow into one new company as quickly as we can.
Second we plan to excite our customers with new fixed mobile propositions.
And crucially, we need to ensure service continually as we migrate to our platforms.
We want to build and enhance our reputation as the leading full service communications provider for consumers and businesses.
And lastly, we want to innovate.
Leading with cashless digital sales and service channels.
Still early enough to integration given we closed the acquisition only a few days ago. However, we have been preparing for sometime and are integral.
We will have a lot more to say about the business. When we report our year end results in February.
With that.
I'll now pass you over to Chris noise, as Chief Financial Officer, who will take you through our financial performance.
Chris.
Thanks, Alan starting on Slide 12, I will summarize our Q3 results on both a year over year and sequential basis, we reported $888 million in revenue a roughly $80 million decrease from last year. This.
It's a tough comp in queue for I'm rebates growth as our adjusted OIBDA in Q4, 2019 benefited from approximately $15 million in one off items.
Our P any additions in the bottom left of the slide where $157 million in Q3, reflecting 18% of revenue as compared to last year's third quarter Q3 result was lower in both dollar terms and as a percentage of revenue.
In addition to the quarter were concentrated in T V and in construction related to network capacity and new build.
Finally, moving to the bottom right, we reported negative $22 million of adjusted free cash flow in Q3, which was modestly better than what we had anticipated fourthquarter reeks.
Recall Q1, and Q3 tend to have higher cash interest payments do the semiannual nature of many of our debt instruments in queue for tends to be a seasonally strong cash quarter for us.
From a year to date perspective, we have generated $59 million and adjusted free cash flow well on our way to deliver positive free cashflow for 2020, which was be adjusted target. We set we reported Q1.
Slide 13 looks an hour or two three segment performance adjusted OIBDA margin evolution, beginning with B M. W. We generated $539 million of revenue and $220 million of adjusted OIBDA relative to queue to revenue increased $24 million.
And adjusted OIBDA increased $16 million revenue declined year over year by 6% on a rebased basis, but significantly better than the 12% decline we reported last quarter hour Q3, Rebased revenue decline was driven by a 14% decline in mobile and a 4% decline due to be <unk>.
First residential as broadly flat at 1% lower than the prior year.
Q3, adjusted OIBDA fell by only 3% rebate termed as compared to 10% in queue to C. N. W has focused on both direct costs and other operating cost continues to compensate for our revenue decline as our OIBDA margin, you're 41% in the corner.
Somewhere to queue to <unk> editions were $82 million or 15% of revenue and included 47000 your upgraded homes during the quarter.
Turning to V T R in Chile, and company Tikkun Costa Rica, we posted T. Three revenue of $237 million, reflecting a year over year Rebased decline of three per cent cuddly tikka continues to deliver positive rebase growth largely on the back and subscriber games, but this growth is more than offset by a rebate decline at and T. R.
Due in part to lower our Pooh associated with the cancellation of why soccer matches broadcast in our premium programming.
In terms of adjusted OIBDA. This operating segment generated $93 million or a rebased decline of 6% over last year's Q3. This resolved compares favorably to a 10% rebates decline, we reported and cute <unk>.
Factors contributing to our year over your performance in the third quarter include the previously mentioned revenue decline and hire other operating cost in Chile, as we invested to enhance customer experience following covid related network challenges address.
Additionally hour Q3 results continue to be impacted by the strong left dollar combined with the F X rate at which our nonfunctional U S dollar costs are hedged.
This factor led to a 5 million dollar adverse impact of U T. I suggested equate the dog on a year over year basis.
R. P any additions were $49 million or 21% of revenue, including you both of 27000.
Finishing with Liberty, Puerto Rico, where we delivered particularly strong quarterly results, we delivered $114 million of revenue Q3, or 10% Rebase growth.
Our robust topline performance is driven by the positive impact of approximately 100000 to argue editions over the last 12 months as well as modest growth and I'll be to be business.
We reported adjusted OIBDA $58 million or 14% Rebase grow.
Finally, we reported $19 million of Pmee additions or 17% of revenue as we continue to invest and build at 5000 homes decor as well as in C. B E to accommodate a record or did you grow.
Moving to the far right of the slide I thought it was worth highlighting hour and adjusted OIBDA marching evolution R. A T.
Two three margin of 40.6% reflects 140 basis point improvement over Q2, and 130 basis points improvement over 232019 as can bear to last year declines in a direct and our other operating cost both as measured as a percentage of revenue contributed to our margin improvement.
Slide 14 summarizes our financing activity, our liquidity position and our credit profile.
Nine Q3, we completed our 350 million to our rights offering with overwhelming shareholder support in fact, we received basic subscriptions totally 97% of the aggregate rave, leaving just 3% for the Oversubscription option, which was fully taken out a portion of the rights proceeds are earmarked for you. Some funding the acquisition of Telefonica Costa Rica.
Which is expected to close next year. Additionally, we are in the final stages of closing our local in market financing for this transaction and expect to have that commitment on the asset of roughly $275 million a sizable increase from our initial expectations. Subsequent to Q3, we repay the remaining $100 million out.
Standing under a primary scene W. Credit line and funded the 1.9 billion dollar AT&T acquisition with a combination of roughly $1.35 billion and restricted cash and approximately $550 million in corporate cash.
Turning the bottom left we finished Q3 with $3 billion of cash and restricted cash and $1.1 billion in Undrawn lines.
Jessie for both the C N W. R C F pay down and the funding of the a T. T acquisition is named previously we would've had zero point $9 billion in cash on hand, and $1.2 billion in undrawn revolving credit lines.
Moving to the upper right, our covenant leverage ratios for three primary credit styles, which are based on analyzed results for the last two quarters are all in a good spot with ample covenant cushion on a reported basis for Q3. The group finished the quarter with net leverage at 4.1 times, a modest decline as compared to keep too.
If we are to adjust our leverage accounting for our non wholly owned subsidiaries are from.
Fortunate left leg, which would be modest and higher in the mid force.
Finally, we finished Q3 with $8.6 billion of gross debt and is seen in the maturity scheduled the bottom right. We have minimal debt maturities through 2025, providing a nice runway for investment and growth.
Moving to slide 15, I will wrap of our prepared remarks are seen by R. T. Three results today, we demonstrated consolidated recovery across both are fixed and mobile kpis as well as our revenue and adjusted OIBDA figures as compared to the challenge second quarter No doubt we another telecom operators are not out of the woods.
But fundamentally we are providing essential services that consumers businesses and governments need to conduct their everyday operations. We are focused on investing our products and networks to continue to provide our customers with market leading services and to ensure we participated in global recovery when it occurs.
Even with moderate revenue compression year over year, we've been able to significantly improve our adjusted OIBDA margin with our adjusted free cash flow of $59 million a year to date and assuming we continue our path excuse me strong queue for free cash flow, we are well on our way to deliver a positive free cashflow in 2020, as we had indicated in queue.
One went in the midst of the initial covid fall out with.
It was about four days under our belt owning the AT&T, Puerto Rico and USPI assets. Our teams on the ground are enthused and focused as seen today hour fix business in Puerto Rico is performing exceptionally well and by adding a medium elaborate on the island. We are in a great position to provide customers with fully integrated consumer value propositions.
And continue to grow our business will have a lot more to say about the underlying performance of these new assets and now with the integration plans. When we report our 2020 results in February with that operator, we're ready to take questions.
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Alright, uhm to quit too if I could <unk> C. W. C. A little one on on the chilly see let me see so revenues to have stabilized with like.
<unk> three <unk>.
If we were to issue I called worst case scenario pay that puts us in 220 21, maybe lay real return of tourism for the sake of.
Uhm quite purple Gee, let's see W. C revenues will kind of related broadly speaking uhm staple or is the room to increase or maybe there was some other risks, which which which I'm not kind of thinking about that.
The first question.
Please.
And then secondly, Oh, Oh, chilly I guess I'm, just a little surprised by that subscribe <unk>.
Then I will go through some network with you.
Obviously plays a little purple, but the same policy quite a large number of S. T T H uhm deploy a little dark blue. So this is for.
We're gonna just send it to your <unk> <unk>.
Mmm competition coming onto the market why would we uhm what Cynthia to lock you said <unk> for retail going forward that four okay.
Thanks to submit uhm.
I'll give you some color and of course I'll ask D. M. A on that you guys might be ready as well as a link on the cable wanted side I think you know on the on the question of revenues February seen revenue improvement and it's it's it's really driven by recovery and the BBB areas gradually a throw F R prepaid mobile business coming back asthma.
Ability improves.
I looked at 2021 my expectation would be this is definitely stabilised continuing.
Continuing improvement in in a revenue profile.
Ah broadband product is both are starting to take off.
And and I think you know if you can see clearly our largest business in cable and wireless with Panama rich the mobility, even after all the restrictions removal is still kind of like Red thinks I am with at Puerto Rico Ram restarted Covid. So we will continue to see improvements there and we already are on both of <unk>.
Fixed and I'm all about business day, So I think sequentially as we go on will continue to see you know city improvement in in the revenue profile.
I think I do want to maybe add something before I jumped the chilly.
Yeah. Thank you ma'am.
We've been really into three being focused on really further penetrating alder fiber bills. We've done in all of our markets, mainly Panama, Jamaica and this is clearly a consumer segment, which is still writing. So we continue to really push that forward <unk>, they're like to sit down. So we are.
On the the whole broadband we really think we there'll be able to continue to to grow and also on hold on the floor.
And the flat for everything because we fluent really for from the last time and that's what we've been so also they're these little C continue to recover <unk> <unk>.
Thanks, <unk> and and also a subsidy network that is recruiting a throughout you know mostly because of wholesale business all of the carriers writing on and it like it also demanded boy ask for more capacity. So.
Feel pretty good about it on the Chili front you know I think when you started the covid the restrictions with so significant there were three things that happen the restrictions were very significant.
Past the demand jump through the roof.
Especially a whole years with the demand came in within the week and then thirdly, we were making a big migration on a closed and his from you know a centralized.
Structure do a very distributed work from home model. So it'd be had a combination of things that happened in the beginning that drove you know a couple of things one a sales channel a primary and most effective sales sandwiches door to door that came to a screeching halt that that that 10 down the the gross ads and then we went up.
As well because if somebody initial capacity issues that we had and it took us about 30 days or so to get over that and you can clearly see two things happening one as you look at the Nedette declining it's a combination of growth that increasing soon reduction, but but the other number that you can look at it as well as the service calls coming into our call Center.
Dropping and that shows a lot of the work that we're doing on a network and our services is improving I I feel good about it but you know I'm Gonna ask Demoed also provide you some local color because we also had in addition to covid the social unrest.
Those going on the the uncertainty with the constitutional reforms in and all that and vandalism on a network as well <unk>.
Yeah. Thank you bothering him the money to me as well unplugged it out the.
Subscribe it okay. So even by debit can factor.
Decrease on the Grill sat sir.
Driven by by that could look down. Some then the increasing charron by the destruction created mm mm mm dispute or the thymine, which we received this tremendous search in.
<unk> capacity remind that because.
Some weeks to we saw gonna range <unk>.
<unk> network of up to date no more money service calls have been to.
<unk> and it is undeniable that we created customer disruption during that period and we are now focus I'm have been focus over the last several weeks and will continue to do that in elevating our service standards and customer experience to take them, but it'll get where they were before by the higher.
You know the system and <unk>, <unk>, which has to be enough leadership and.
And provided a good service in the country.
Ah unacquainted out this it's not only relate that you.
You know the sofa number is gonna be implications hasbrouck also.
Like amount of vandalism over the network.
And I will also.
<unk>, what would be working with the government.
To address the problem and provide more security through our network of course.
<unk> can be a customer instruction you also ask about competition Smith and I would like to address a question as well.
We have been facing you know tremendous competition over a long period of time.
Five or competition from our main competitor and ultra breaks competition phone from others and we have managed to you know sustaining our leadership and and and you know be meters in Brooklyn.
With more than how convenient to describe it ahead of.
The competitor by the second and the market we have issues on the third quarter that we cannot be ninth and.
We are recovering from them, but both of them are transferred and also on the growth outside where we see at what time restrictions is off interior, we have our sales force coming back into play and we see improvement.
Also I would like to point out that the there was also a tonight slowed down and then they're going to.
Couple of other brand names Thats come in they are targeting the CMD markets and Sydney. That's another one that's come in with.
Using price as a leading.
Offering and B.
We feel like Sydney.
This more competitive than we normally have but.
But I think the challenges that we had.
Were challenges that whether there was competition or not we would have had it.
Across the city that has really you know challenges undergrowth add side, but you know we were happy with the M. B N M. If there's an opportunity to do something we of course would be a very opportunistic as a company, but we were quite happy with the M. B a <unk> a very good plan with Telefonica and and.
I think one school that religious in in all the shops that opening.
I I I think you know we'll start posting just can seem kind of numbers, we used to for Ya.
Okay. That's helpful. Thank you.
And next we will hear from James Radcliffe with Evercore ISI. Please go ahead.
Oh, Thanks for taking the question Oh two okay.
Okay.
First of all of them walk profession.
Talk more about.
January but can you help us think about it for the wall.
<unk> sources of theme geez.
<unk> any furniture for example.
What level overlap you already have between the ATT wireless customers Angela the fixed customers and.
And something Cathy guarding the funding you'll receive can you talk about all final call over to fall funding of the wall and with any of that going to overflow queue or does that the nature for pretty function opportunities.
On the floor of the acquisition.
So we need a bit more time to put all the numbers together, but definitely.
A focused cross selling each other not only on the broadband but also on on on the video as well as.
That's really the attach rate also could potentially increase so really excited about that but but the opportunity and so far in on different things are going really well.
Now that the sub $100 per home passed.
Levels. So it feels like you've got a lot of opportunities to deploy capital on on an accretive basis. Thank you.
Hey, Matthew.
Your first question you asked you you broke up a little bit that so I didn't really hear back I think you asking a question about products and how we move to the cloud has there been any reason, yes, it's easy to enterprise mismanagement, DRM to cloud and to see it doing better product better segmentation on the prepaid product cycle.
That's kind of the C D market opportunity if you will.
Yeah, I think you know we brought in a quite a number of technologies on the back end up as I do one do better CPM based management.
We certainly have also as you know upgraded our back office as well on the ERP side.
That is maybe submit that you know what are we doing a fiber to the home in Chile, and and I'll tell you with the lower cost we've been able to expand it and then let me think opportunities good on the right offering buybacks you know.
You know be pronounced a buyback back in the first quarter and so we have that option, but right. Now you know that's that's that's really a capital allocation against all the other opportunities in front of us.
And as far as raising funds I'll pass it onto the crisp.
See that much.
As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America's website at Www Dot L.L.A. Dot com. There you can also find a copy of todays presentation materials. We thank you for your participation you may now disconnect.
Oh.
[noise] Oh.
Okay.
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