Q3 2020 Liberty Latin America Ltd Earnings Call
Please standby good day, everyone Youre currently holding for Liberty Latin Americas third quarter 2020, Investor call. Thank you for your patience the Investor call will begin momentarily. Please standby.
[music].
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 Camco, Chief Technology and product officer of Liberty Latin America.
Good morning, and welcome to look see Latin Americas third quarter Twentytwenty Investor call.
At this time, all participants are in listen only mode.
Todays presentation materials can be found under the Investor Relations section.
Pretty Latin Americans website at Www <unk>.
Oh.
Following todays formal presentation instructions will be given for a question and answer session.
And keep in mind this call is being recorded.
[noise] kitchen March makes its forward looking statements.
Getting the company's expectations.
<unk> 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 and risks that could cause results to differ is available and somebody Latin America's most recently filed form 10-K and form 10-Q.
Quarter ended March 31st Friday tricky.
Liberty Latin American disclaims any obligation to update any of these forward looking statements to reflect any change in its expectations all the conditions on which such statement just straight.
In addition on this call you can refer to certain non-GAAP financial measures can be concise to the most comparable GAAP financial measures, which can be found in dependencies to this presentation.
Our Investor Relations website.
I would now like to turn the call over to our CEO Mr. Bob.
Thank you Vic and welcome everybody third quarter results presentation.
Thank you.
You and your families that state and in good health.
State funding older I'll begin by providing an update on our operations in particular country. You have started to see the investments we are making in a product.
[laughter] stylish a foundation for future growth.
Crystallize Oh CFO he doesn't follow with a review of <unk> financial performance after that.
Got straight to your questions.
It's always I am joined by making that case games across the region and they will get them involved as needed during the journey.
Prepared remarks.
That's the point of housekeeping, we will both be watched some slides, which you can find on our website at www Dot Stella <unk> Dot com.
I'll start on slide four key highlights followed.
Following a challenging second quarter, we delivered improved financial and operating performance in Q2.
Most of our markets begin to recover from the entire corpus.
Right.
Operationally, we had excellent results in cable and wireless and the people that are equal.
In both cases, we delivered record quarterly additions it's over 100000 thought she is at its profit keysight.
Oh, that's also a topic that's became 69000 subscribers in Q3.
And that's really neat.
Revenues.
Adjusted OIBDA does sequentially cost management efforts, making a significant impact.
Well I think it's just always does close to our Q1 pretty cool.
Yes.
Our adjusted OIBDA margins also improved.
We completed the acquisition of <unk>, Puerto Rico, and U.S. merchandising that's it stopped the states.
We are very excited about the opportunity to further strengthen up and she will also be a wonderful best performing markets, while also generating significant synergies.
Oh prospects in greater detail later in the day.
Finally be waiting for your discrete preliminary awards made but yes. She she.
The unique uplift of equal size.
Following up competitive process. We did you leave it dropped one funding improved broadband speeds of 40 tree municipalities out of 78 across to either.
Excluding San Juan.
Other key that trade areas.
Moving to slide five and an update on the impact we have seen some corbett Nike in our key markets.
The ability restrictions it generally eat across the region.
Hoping to drive.
Oh operations.
However, some lost experience most of it impacts the others as can be seen in the chart on the slide.
<unk> key markets, Oh operations pretty equal Jamaica study.
The least impacted by mobility restrictions from Q.
Sure.
Over your revenue growth in Q3, yes restrictions were eased.
And they can predict because well, it's 4% rebased revenue growth in the third quarter.
Couldn't they strong profit performance and stability in mobile.
But she they are more severely impacted markets I do it's the lower left off the charts.
Both cases mobility restrictions you so much.
Q2, and Q tree very strict lockdown measures being horse and restrictions on a relative basis remain more stringent than in other markets.
Overall.
Key markets are moving in a positive direction gilts increased mobility.
However, we remain watchful given the unpredictable nature of the virus.
Turning to slide six and I'll fix subscriber performance by reporting segment.
Starting with cable and wireless nonetheless dislike.
We achieved record quarterly growth of 66000 Archie is tough.
One by Padilla Baby added 45000 subscribers in Q3.
A successful collection initiatives reduce chip.
You see a significant longer term growth opportunity in this market and that's continued to invest in a separate set of products.
Jamaica wants to other highlights in cable and why that's that's we had another strong quarter.
18000 odd years and thinking as to 65000 additions year to date.
Treat that still love you added in the same period last year.
Moving Konwinski are in college Tico.
These black challenges in Chile last call and that's that's reported subscriber losses in Q2.
She lays the most competitive stakes lucky we.
We also experienced weather related disruptions that hold a significant spike in bad weather delays and.
No they didn't use social unrest.
Responding to district talking to customer service investments working with the government and service initiatives, which have resulted in my being loved it follows for the segment that's shown in industrial.
Probably do you think you need to courts allergy your base.
With a slightly lower rate, but just try to quantify that was impacting Corbett Nike restrictions.
Finally, the Puerto Rico, that'd be achieved yet another record quarter, adding 43000 argues and beating the previous record set in Q2 this year.
This is a truly remarkable performance from our team of the island and be a excited by the prospects of combining loved business ATM eating operations and networks.
At a group level. This resulted in 35000 net adds in Q3.
No. That's why again impacted by the removal of Archie is primarily in parliament receiving services not called it due to lumpiness.
Moving to slide seven and rolled out and beat to be that'd be assumed a greatest negative impact from the bad debt.
Encouragingly, both product showed improved performance during Q3.
First the mobile and the chart on the left of the slide.
Looking at performance over a longer period.
He made important operational improvements to our mobile business in 2018.
Which led to stabilization level plus subscriber base in premium Nike.
Corbett liking that drove significant prepaid subscriber losses in H., one twin training due primarily to mobility restrictions limiting the ability of customers to access services ever use demand. So top ups generally given the time, that's less spend in their homes.
[laughter] hugely just mobility restrictions with east across all markets and we tend to net adds it's 69000 subscribers added across the group.
Oh third quarter performance was driven by 54000 ads, but I love that the country begins to reopen and 19000 in Jamaica pull it successful subscriber acquisition campaigns.
She's a subscriber declined by 11000 in Q3 due to store closures related to lot else and promotional activity from competitors.
Moving to be to be on the right.
Oh B to B business reported sequential revenue growth of 6% in Q2, EBIT improvements across all product segments.
Lucky began to recover from the initial impact of that.
On the far right of the slide yes split our BTB business by customer segment.
During the revenue size and relative sequential growth for each.
We saw the strongest growth another government customer segment, driven by ongoing probably second thought I love and sales across the other markets and they cut a deal.
Wholesale in SMB, what the next best performance, it's better than truck capacity requirements and the small medium business segments benefited from markets beginning to reopen.
Oh enterprise and hospitality segment stabilize in the third quarter.
Showing signs of recovery.
We expect future improvement to be tied to general economic recovery for enterprise and the retail of tourism for the hospitality side.
Turning to slide eight.
Highlights some of the innovative products be as lunch drink cold at Nike and our continued network expansion investments.
Starting with our consumer product launches on the left hand side.
Yeah, that's actually first on next Gen TV product, which says that the video content aggregator that access to perhaps what do you call it that and traditional broadcast video that personalized recommendation engine and Google voice assistance.
There you go what's the first market unless the stock and that's C. M. P S up by over.
85%.
We have also launched more easily in Panama.
Differentiates us versus our competitor and are already seeing about half of our customers used to voice its capability and b.
Below entertainment innovation, we have highlighted all adaptive wife, I probably be.
We've recognized in home connectivity is a key aspect of the leading profit effect.
No Oh optimize wife I product in nine markets.
Over 80% of all our motives and touching 60 million connected devices.
Moving to the southern <unk> and a new DTV product design.
Address the needs of business customers employees increasingly work for a remote locations.
<unk> product businesses can ensure that employees have to guess connectivity to dedicate it let the cat test security protocols controlled by a company policy and all the things that service that can be implemented and won't be ongoing business less important.
Finally on the write off the slide despite dependent we are continuing to lean into off pieces of growing broadband penetration in the region. We have created a building additional 79000 homes basketball.
Well it that close to 90% of this activity was to fiber to the home and this is primary technology, we are using phonetic expansion.
Mobility improves in Q4, we expect to release another 100000 homes past outreach about how it will be in Chile.
Reigniting business that.
In addition, as I mentioned earlier, we will successfully awarded funds under you need to do in Puerto Rico, which will enable us to upgrade and expand enough to bring access to more people and narrowing the digital divide.
Allocated approximately three quarters of the homes available under the program until people.
And I'm excited to continue raising the bar for customers with the latest most reliable broadband offering.
Hey, if products.
Moving to slide nine and the operational focus areas.
Starting with <unk> wireless on the left hand side.
Key focus from the outset that kind of dynamic has been to maintain our collections and that's part of that also increased the use of digital channels.
As shown on the chart a collection dipped in April because they've been able to go out the much sense. It doesn't do pre corporate levels.
A digital channel payments that came out of why that's still relatively low at 25%.
They have increased seven percentage points since March and we are working to improve the stage for that.
Loved that digital payments for VTR public tico, approximately 75% and Liberty, Puerto Rico, they represent about 85% of collections.
Oh never strength is vital to operations and we have invested in fixed capacity increases of 69% to 32% in Jamaica puttable, respectively since much for us.
If also increased casting capacity by 37%.
Moving to VTR incentives like so.
Mentioned previously there has been some pressures in Chile pulling despite embarrassed event earlier this year.
Subsequent impact on <unk>.
The chart here shows the benefit of the investments I mentioned to address those.
Well, it's not the channel just a lucky technical related customer savings cost decreased by nearly 50% from April to September.
Does that correlate it on a like basis <unk> monthly subscriber performance.
We carried out at approximately 30% more technical field activities across the metric in Q3 have to increase capacity by states, it's much focus and expand it cashing in interconnect that over 35%.
Finally, due to write off the slide in Puerto Rico.
Focusing its markets to maintain our leadership truly innovative products such as how TV.
I think the best broadband speeds and we are proud to have once again been awarded the plus feet does ward full quarter equal in 2020.
That's what the rest of our businesses you have invested in additional capacity put their equal.
35% increase as much for us.
All on that book expense it was true S T H.
Finally, my section, it's like that and then recently completed acquisition of 18 keys assets as opposed to eco and the U.S. phasing items.
On the left of the slide I wanted to refresh some of the highlights what the combination.
With that he didn't these predominantly post paid off price, it's been relatively stable to the pandemic revenue probably flat year over year in each one thing.
Through the transaction either create an integrated afraid of it being fixed and mobile propositions.
We expect that this will enable us to deliver convergent product offerings, our customers benefiting from cross selling opportunities and to use Chad.
They do D. business also brings a robust infrastructure with a well invested fiveg ready mobile like an island the white Wilan fibria assets yeah.
Yeah, creating a more of a feeling that but that's not something that love the telecommunication services.
As with any luck at combination we anticipate the transaction will generate significant synergies and <unk>.
Expectations have not materially changed from when we agree to that transaction.
Finally, yes long dated financing in place to fund the acquisition and importantly.
Eating U.S. dollar cash flows for the L.A. <unk> treat this deal under.
Under right up to slightly less immediate focus areas.
He wants to integrate and grow into one new company as quickly as we can.
Second we plan to excite our customers through new fixed mobile propositions.
And crucially.
Insurance service can can you really as we migrate to other platforms.
You want to build and enhance our reputation as the leading full service communications provider for consumers and businesses.
And lastly, we want to innovate.
Really touchless digital sales and service channels.
Yes still early enough a integration given we closed the acquisition only a few days ago.
We have been preparing for sometime and Raring to go.
We will have a lot more to say about that business. When we report our year end results in February.
That.
I'll now pass you over to Chris noise, a chief Financial Officer, who will take you through our financial performance.
Chris.
Thanks out 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 it roughly $80 million decrease from last year. This.
This decrease was principally related to the negative effects of coal that foreign exchange translation, especially the 10% appreciation that the U.S. dollar against the Chilean peso and our Q4 2019 disposal of our Seychelles business.
Our TV additions in the bottom left of the slide were $157 million in Q3, reflecting 18% of revenue as compared to last year's third quarter. Our Q3 result was lower in both dollar terms and as a percentage of revenue.
Our additions in the quarter were concentrated in CP and in construction related to network capacity and new build finally.
Finally, moving to the bottom right, we reported negative $22 million that adjusted free cash flow in Q3, which was modestly better than what we anticipated for the quarter.
Recall Q1, and Q3 tend to have higher cash interest payments due to semiannual nature of many of our debt instruments in Q4 tends to be a seasonally strong cash quarter for us from.
From a year to date perspective, we have generated $59 million of adjusted free cash flow well on our way to deliver positive free cash flow for 2020, which was the adjusted target we set we reported Q1.
Slide 13 looks at our Q3 segment performance and adjusted OIBDA margin evolution, beginning with BMW, we generated $539 million of revenue and $220 million of adjusted OIBDA relative to Q2 revenue increased $24 million and.
Adjusted OIBDA increased $16 million revenue decline year over year by 6% on a rebates basis, but significantly better than the 12% decline we reported last quarter.
Our Q3 Rebased revenue decline was driven by a 14% decline in mobile and a 4% decline due to be fixed residential was broadly flat at 1% lower than the prior year.
Q3, adjusted EBITDA fell by only 3% Rebased terms as compared to 10% in Q2.
CDW is focused on both direct costs and other operating costs continues to compensate for our revenue decline as our OIBDA margin year, 41% in the quarter.
Similar to Q2, CNW Piney additions were $82 million of 15% of revenue and included 47000, new or upgraded homes during the quarter.
Including new both of 27000.
Finishing with Liberty, Puerto Rico, where we delivered particularly strong quarterly results, we delivered $114 million of revenue in Q3, or 10% Rebased growth. Our robust topline performance was driven by the positive impact of approximately 100000 RG you additions over the last 12 months as well as modest growth.
In our B to B business.
We reported adjusted EBITDA of $58 million or 14% Rebased growth fine.
Finally, we reported $19 million, the piney additions or 17% of revenue as we continue to invest in new build adding 5000 homes in the quarter as well as in CE to accommodate our record our GDP growth.
Moving to the far right of the slide I thought it was worth highlighting our adjusted OIBDA margin evolution. Our Q3 margin of 40.6% reflects a 140 basis point improvement over Q2, and a 130 basis point improvement over Q3, 2019 as compared to last year declines in our direct and our other.
Operating costs, 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. During Q3, we completed our $350 million rights offering with overwhelming shareholder support in fact, we receive basic subscriptions totaling 97% of the aggregate rate, leaving just 3%.
For the Oversubscription option, which was fully taken out a portion of the rights proceeds are earmarked for use in funding 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.
There's a sizable increase from our initial expectations subsequent to Q3, we repaid the remaining $100 million outstanding under our primary CNW credit line and funded the $1.9 billion 80 acquisition with a combination of roughly $1.35 billion in 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 and Undrawn lines adjusting for both the CNW ours, the paydown and the funding of the 18 T. acquisition. As noted previously we would have had zero point $9 billion in cash on hand and 1.2.
$2 billion in Undrawn revolving credit lines.
Moving to the upper right, our covenant leverage ratios for our three primary credit sales, which are based on annualized 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 Q2.
If we are to adjust our leverage accounting for our non wholly owned subsidiaries our proportionate, let leverage would be modestly higher in the mid force.
Finally, we finished Q3 with $8.6 billion of gross debt and as seen in the maturity schedule in the bottom right. We have minimal debt maturities through 2025, providing a nice runway for investment in growth.
Moving to slide 15, I will wrap up our prepared remarks as seen by our Q3 results today, we demonstrated consolidated recovery across both our fixed and mobile capabilities as well as our revenue and adjusted OIBDA figures as compared to the challenged second quarter.
No doubt, we and other 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 in our products and networks to continue to provide our customers with market, leading services and to ensure we participate in the global recovery when it occurs.
Even with moderate revenue compression year over year, we have been able to significantly improve our adjusted OIBDA margin with our adjusted free cash flow of $59 million year to date and assuming we continue our path of seasonally strong Q4 free cash flow, we are well on our way to deliver positive free cash flow in 2020, as we had indicated in Q.
One win in the midst of the initial coded fallout.
With about four days under our belt owning the 18 to Puerto Rico, and new Sci assets. Our teams on the ground are enthused and focused as seen today, our fixed business in Puerto Rico is performing exceptionally well and by adding a leading mobile operator on the island, we're in a great position to provide customers with fully integrated consumer value propositions.
And continue to grow our business.
We'll have a lot more to say about the underlying performance of these new assets and our integration plans. When we report our 2020 results in February with that operator, we are ready to take questions.
And 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 Aster ski followed by the digit one on your Touchtone telephone in order to accommodate everyone. We request that you ask only one question with one follow up if needed.
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If you would like to ask a question.
And we will take our first question from Soomit Datta with New Street Research. Please go ahead.
Hi, there too.
Two questions if I could follow CW saleable on on Chile.
On that she likes to be ready as well as ink on the cable wanted size I think you know on the on the question of revenue should there be seen revenue improve man. It's it's it's really driven by recovery and the BTB area sequentially as well as our prepaid mobile business coming back as mobility improves.
If I look at 2021, my expectation would be this is definitely stabilized with continuing improvement in in a revenue profile.
Ah broadband product is also starting to take off and and I think you know as you can see clearly our largest business in cable wireless is Panama, which the mobility even after all the restrictions removal is still kind of like where things are at an with at Puerto Rico. When we started covid.
We will continue to see improvements there and we already are on both to fix and I'm all about business day. So I think sequentially as we go on will continue to see you know steady improvement in in the revenue profile.
And do you want to maybe add something before I jumped to Chile.
Yeah. Thank you.
We've been really into television focused on really food penetrating alder Pfizer things we've done in all of our markets Me, Panama, Jamaica and this is clearly a consumer segment, which is still rising solely continue to really push that forward can be seafood transfer like to sit down so.
We are on the on the whole broadband we really think we will be able to continue to to grow and also on hold on the floor in the loft and these plans for everything because we fluent really for from the last.
And that's what he's been so also they're decency continue to recover.
As far as in <unk>.
Thanks, and and and also a subsea network that is improving its throughout the you know mostly because I'll wholesale business all of the Kerry it's writing on and I'd like to also demanded I'll ask for more capacity. So so you feel pretty good about it on the Chili front you know I think when we started the covid the restriction.
What's so significant there were three things that happened the restrictions were very significant.
Past the demand jump through the roof essentially a whole years with the demand came in within a week and then thirdly, we were making a big migration on a call centers.
From <unk>.
Centralized.
Structure do a very distributed work from home model. So if you 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 channel his door to door that came to a screeching halt that that that turned down the the gross ads and then chin went up.
As well because of some of the 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 <unk> declining it's a combination of gross at increasing in shouldn't reduction, but you can but the other number they should look at that as well is the service calls coming into a call Senator 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 on network as well <unk>.
Yeah. Thank you, calling and good morning to me as well I'm pumped it out the.
Subscribe or nothing said no kidding.
<unk> decrease on the Grill sat sir.
Taken by by that could look down. Some then the increasing charron by the destruction created mm mm mm dispute at a time in which we should be tremendous church in any capacity reminding me that.
Email some weeks to we saw gonna range.
Network about two days now more money service.
<unk> and it is undeniable that we created customer disruption during that period and we are now for both of them have been phobos over the last several weeks and we continue to move up in elevating our service stemmed a chunk estimate experience to take them and then it'll be where they were before by the higher.
You know New Testament, <unk>, which has been a fleet of shaken and providing a chair with some of the country I've gotten acquainted out. This it's has not only relate that.
You know the sofa number it's gonna be an vacation <unk>.
<unk> also.
Quite the amount of vandalism over the networks not only movie theater and I will also be able to make this network will be working with the government.
To address the problem and provide more security dwelling I was of course that that have added to the customary destruction. You also ask about competition submit that and I would like to address that question as well we.
We have been facing you know tremendous competition over a long period of time.
Favorite competition from our main competitor and also price competition phone from others and we have managed to you know sustain I'll need a sheep and and and and you're going to be <unk>.
<unk>.
More than half I'm gonna prescribe it ahead of.
What's the complaint about a second and the market we have issues on to pick order that we cannot be ninth and that's about it I think that'll be a recording from them both.
Both on the transfer and also on the Grill satisfied when we're we're we see at one time restrictions.
Striction East off <unk>, we have our sales force coming back to play and we see improvement.
Also I would like to point out that the there was also a slight slowdown in the mail.
And more quickly than afterwards, but I just want to understand that thank you.
Yeah. Yeah, you know you can play his deck lotto and and Telefonica.
They've always been all the building is since you know seven eight years ago, I mean flour with pretty much over built this in Santiago like six <unk> six years ago, they pretty much overbilled us and so we really been dealing with competition is your most hurtful for a long time I think <unk> you know there's a couple of smaller new entry entrance is.
Well in private home a couple of other brand names that's come in they're targeting to C. N D market and send needed. Some another one has come in with you know using prices are leading offering and uhm V feel like you know Sydney <unk> more competitive.
<unk> normally had.
But I think the challenges that we had what challenges that whether there was competition and not be would've had it you know it's it's F. E. M. O said you can't deny the fact that in the third quarter, especially in the beginning of June July you know, we had those network issues and.
But we are happy with the M. Vietnam, if there's an opportunity to do something we of course, we are very opportunistic as a company.
Quite happy with the NVNO, we struck a very good plan with Telefonica.
And and I think once Corbett releases.
And all the shops opening.
I think you.
We will start posting this same kind of numbers we used to.
For years.
Okay. That's helpful. Thank you.
But they will be synergies across the board.
In a in a business both on the cost side and send yes, I describe it the venn diagram on the revenue side and before we jump do you need <unk>, let's just maybe as not.
<unk> to come in and the commercial side and the and the synergy opportunities.
Yeah <unk> good morning, and thank you balance, yes, I mean, James you know the the also on the pieces behind this acquisition that you're joining to premium brands to cream and networks and all the the best fixed up to the island change the best Mobile network. So in terms of the you know the attach week or so to fix mobile convergence that's all.
<unk> no problem as mentioned, we're looking into it.
Oh wait are literally on the for the acquisition, so I need a bit more time to put all the numbers together, but definitely.
Focus cross sending each other not only on the broadband but also on on on the video as well.
That's what we need to get in touch with those who could potentially.
Potentially increase so I'm really excited about the opportunity and so far you know and they find things are going really well.
Thanks, D and and James you can clearly see you know in Puerto Rico numbers I mean, this management team is still already but it's with this integration as well as.
Inducing the <unk> the commercial front deck on the <unk> like I said, we we are very via quite elated by the response and I I can't say much about it because of all the restrictions so I'm gonna add John General Counsel and he he is look really hot and get together with <unk> and on on that you know that.
Bidding process with the F C C and you'll know what <unk>, what we can see and what we can say, but that all that John to give us some.
A little bit more clarity on that yeah.
<unk>. So so can I get the it was in the amount in the announcements from the F. C C. But we we did.
I'll get awarded in the face to the 43 towns there and some of the top towns there too.
Really strengthen our network.
And you know we have the the the over $70 million of funds there over the 10 year period to to do that we can't say much more about the technology and everything involved right. Now we will we will have more than one when they finalize.
Uhm all the paperwork has to be done in the next month, but you know like balance it really started the cheesy great job.
Great job in front of me application together, yes.
Hey, Matthew your first question to ask you broke up a little bit there. So I didnt fully get I think you're asking a question about our products and how we move to the cloud is now I think we hit yes, just using the enterprises masmovil rather than the cloud anticipate doing better right.
Better segmentation of prepaid product size address kind of the CD market opportunity if you will.
Yeah, I think you know we've brought in a quite a number of technologies on the back end of last night to one do better CPM based management.
We certainly have also as you know upgraded our back office as well on the ERP side.
On the product front side.
Offering buybacks.
You know be for now until buyback back in the first quarter and so we have that option, but right. Now you know 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 on to Chris we'd be we don't see that much.
Near future, Yeah, but yeah, I mean, I I just add on the on the rights offering on the 350, a you know a portion of that is earmarked for the Telefonica Costa Rica transaction as as you may recall, it's 500 million dollar purchase we expect to close at in the first half of next year we are.
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