Q2 2021 Liberty Latin America Ltd Earnings Call
Your call. Thank you for your patience the Investor call will begin shortly.
Okay.
[music].
And that's with respect to its outlook and future growth prospects and other information and statements that are not historical fact <unk>.
Actual results may differ materially from those expressed or implied by these statements.
For more information please refer to the risk factors discussed and Liberty Latin America's Most recently filed annual report on form 10-K, and the most recent form 8-K filed with the SEC along with the associated press release live.
Liberty and Latin America disclaims any obligation to update any forward looking statements or information to reflect any change and its expectations or and the conditions on which any such statement or information is based.
In addition on this call and we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found and the appendices to this presentation, which is accessible under the investors section of our website.
I would now like to turn the call over to our CEO Mr. Bolland there.
Thank you, Mike and welcome and everybody to of Liberty Latin Americas results presentations for the second quarter and first half of 2021 I'll begin by taking you to a group of highlights and operating results before handing over to Chris noise, and I'll CFO, who will fall over the review of the company's financial performance.
After that it will get straight to your questions.
And that's all base I'm joined by my executive team from across the region.
And I'll get them involved as needed during the Q&A. Following of prepared remarks is the point of housekeeping, you'll both be working from slides, which you can find on our website at www Dot <unk> dot com, starting on slide 4 and I'll highlight read deliberate a strong <unk>.
Of results and the second quarter, it's our markets continue to recover from the impacts of COVID-19, Oh Gee you ads of 73000 Rep Senate continued momentum following of record quite of 1 performance.
Cable and wireless Caribbean and networks, and Puerto Rico, and once again drove the group of strong commercial execution.
And mobile and we had our best of a quarter, adding 118000 new subscribers.
This was done by Panama, which very nearly replicated a record Q1 performance and in Jamaica and.
<unk> with 55000, and we just 45000 higher than the first quarter.
I'll continue the operational recovery of which drove 8% pre base revenue growth together with a discipline and focus on cost controls resulted in a robust rebase adjusted or EBITDA growth of 10% and Q2.
Liberty, Puerto Rico had another strong quarter of 21% on of Rebase basis, while C and W. Caribbean and networks and C and W. Panama and also deliberate double digit rebase growth compared to Q2, 2020, which was all quoted that was most impacted by COVID-19.
We also grew sequentially from Q1, which shows a resiliency and focus.
New Bill and upgrade plants of core element of of growth strategy and following a mosaic active first half ever with approximately 360000, new homes passed or upgraded I'm pleased to announce that we are increasing of 2021 target to not deliver over 700.
8000, new all upgraded homes more than 95 per cent of which of fiber to the home.
And finally, we announced earlier to speak that we have received the required authorization to complete the acquisition of Telefonica is Costa Rican operations. We expect this transaction to close very shortly.
Moving to slide 5 and highlights fall out key markets.
The reef provided relative revenue contributions for each market true the percentages sure.
Studying with Puerto Rico, our largest single market, which contributed nearly a third of the groups 1.2 billion and revenue and the second quarter all of which is U S dollar of revenue.
We continue to the strong growth and of Puerto Rico operations of broadband penetration increases and we continued to deliver how the ads and.
In terms of the integration of Liberty and <unk>. This is progressing well and remains and exciting driver of future free cash flow growth as we look to generate significant synergies from the and market combination.
Moving to Chile, which represents 18% of L. L a of revenue and Q2.
Re of progressing here by stabilizing the subscriber base and now look the bill and his platform by selling to a growing high speed footprint.
Given the challenging competitive environment. We are also very focus of managing costs and I've seen some savings from actions, we have taken and via matching our competitors of pricing, we would rather give all consumers to savings and to can see any subscribers so of competitors.
Lastly, wildly of seeing some easing of mobility restrictions curfews and international travel restrictions still remain.
Next to Costa Rica, <unk> as I mentioned, we the clothes or acquisition of telephonic his business very shortly.
This will create and innovative converge scale player and the market and price good synergies true and market consolidation as with many of our markets. Some degree of of mobility of restrictions are still in place.
However, couple of because of consistent and they perform well true the past 18 months driven by growing and home broadband day man.
Sending to the bottom row, and Panama, which contribute at 11% of groups revenue and Q2.
Yeah, we saw of mobile momentum continue and Q2.
But subscribers editions driven by the total so detailed plan.
Panama is 1 of the most severely impacted markets by COVID-19, However, mobility restrictions have east and the ability of vaccines is expected to increase.
And extra Jamaica, which is the largest C and W. Caribbean and networks market and represented 9% of L. L of revenue and the second quarter here, we have seen some very good operating and financial results despite relatively low vaccination rates.
And the last 12 months, Jamaica is added and 95000 or to use and 111000 mobile subscribers.
Which is a testament to the hard work of our team and.
And the consumer acceptance of the new propositions, we have lunch.
Moving to the networks, which contribute it 7 per cent of lle's queue to revenue.
As we've mentioned and recent quarters. This is of high margin and mainly U S. Dollar business that has also benefited from increased bad and with demand across broadband and video applications and of each and lastly, what we've categorize fifth of the market representing the rest of the C N W Caribbean and networks and can too.
Beating just under a quarter of Q2 revenue for elderly.
Growth for these markets of expected true higher data of penetration and usage and both of fixed and mobile products.
In terms of the broader backdrop tourism is an important economic drive of for these markets and and increased number of visitors, it's anticipated and the second half of the year.
The the helping recovery of.
Off the market and this grouping and LLE overall, Trinidad is currently the most negatively impacted by COVID-19 restrictions.
Turning to slide 6 and our operating performance starting with fixed subscriber additions, where the group had another strong quarter, bringing.
Bringing first half net adds to just on the 150000 argues on nearly double the price of your period.
Taking each reporting segment and 10.
C N W Caribbean and networks show and and the upper left reported high and that the ads you over you and the second quarter with the largest contribution coming from Jamaica, maybe add 26000, and our geez the.
The Bahamas, and Barbados represented the majority of the remaining ads.
And Panama, we add at 9000 and <unk> in the quarter.
Footprint expansion and product improvements at dry for the growth true the Ya.
<unk> is impacted by retention activities, such as the use of lifeline plants discounts and moving customers to lower cost plants and.
Liberty, Puerto Rico in the upper Senate continued to increase broadband penetration and grew its subscriber base by 22000 and the quarter.
The price of you have benefited from high demand as customers adopted to working and learning from home and.
And Chile, we of stabilizing of subscriber base following argue losses and the second half of 2020.
The market remains very competitive and we continue to focus on customer retention is mentioned on the previous night.
Ah last segment of course study kind of shown in the upper right had another good quarter and net ads of 11000 and robust <unk> development.
As a group we delivered strong Q2 ads of 73000, Oh juice with you over your improvements driven by C. N W. Panama.
And C N W Caribbean and networks.
A group or poop of customer at $50 was up 3 per cent you over you on and FX neutral basis.
Moving to slide 7 and a record mobile performance.
Starting again with C N W Caribbean and networks in the upper left maybe added 58000 subscribers and the quarter of <unk>.
Swing of 234000 subscribers as compared to Q2.2020.
To make it at at most of the segments subscribers and the quota up by 55000.
And I need to Panama of each again generated the most ads and the quota growing and space by 60000 net subs is mentioned this was driven by al Unlimited data total so detailed plan.
Liberty more about good subscriber base modestly and the quota of note rissole improve growth and postpaid maybe add at 11000 subscribers.
Finally V T R and last 7000, and mobile subscribers and the quarter, the operators and Emmy and no and chili predominantly providing postpaid services to existing fixed service subscribers and a small play and the market.
And aggregate as a group, we added and where I can 118000 mobile subscribers and the quota with of blended our pool of $19.
The increase of 68 per cent and you over years, driven by the inclusion of Liberty mobile and Q2.2021.
Next to slide 8 and I'll be to be operations start.
Starting with the total group performance on the left side, we deliberate and robust freebase growth of 5 per cent and the quarter.
As markets continue to recover steadily from the impacts of COVID-19.
And the center of we break up the performance of course, the N W. Caribbean the networks and C N W. Panama.
The segments include the majority of I'll be to be operations, representing approximately 80% of total <unk> revenue.
And the Apograph show of stable year over year performance across a subsea business and last M. B 2 b market, maybe have a tack of competitive positions.
Income and Caribbean, and Panamanian <unk> operations of faith greatest challenges over the past year, primarily due to reduced tourism and the associated impacts and local economies maybe operate.
Due to the revenue reduction there has been more scope to cover and these operations. However, we have yet to reach pretty COVID-19 levels.
On the right of the slide we wanted to provide a brief update on a b b customer segments first and the price segments, which represents approximately 40% of all of <unk> revenue is covering well driven by improve economic by visibility and business confidence and our markets day.
Segment benefits from the the shift the remote working and the associated solutions.
The second wholesale which is mainly income price of networks and C. N W and represents about a quarter of B B revenue overall.
As bandwidth demands grow is stripes of wholesale business.
The small and medium businesses or S. M. B contributed about 15 per cent to be to be overall the.
Digital innovation during pandemic has provided of gross driver for this segment.
Fourth.
Government projects and services, which also represented approximately 15% of <unk> of revenue.
This is particularly significant customer segment of Panama best several new projects of come to the market associated with the drive to digitalized processes record keeping and other related infrastructure.
And lastly, hospitality, which represents left and 5 per cent of <unk> revenue.
This has been the most directly impacted customer group by reduce tourist arrivals.
It will also be the most positive for the 11th to any increase and visitors how're.
However, it's worth noting the need represent the small amount of B b overall.
Next to slight and 9 and an overview of infrastructure assets.
Starting with a new bill and upgrade activity on the left side.
Yeah, you can see the significant ramp and bill you over you and the technology evolution wherever chilly all all of new Bill and upgrade activity is no b of fiber to the home.
This provides both fast beat and great of operating efficiency with low energy costs required to run the number and.
In the center of the slight we thought it would be helpful to provide the snapshot of homes passed by technology and mobile networks across all markets.
The key take away from of fixed netbook perspective that just under 90 per cent of all footprint is either HSE all F T th.
And the F. T th element is growing up 4 percentage points as the proportion of all over on the <unk> you today.
And mobile and we have a minimum of LTE across all our largest markets and telephonic us operations and Costa Rica I'll also L D.
Puerto Rico is the first 5 G market and and our experienced that will stand us in good stead. When the time comes across all of all of the markets.
Finally on the right side of the slightly wanted to highlight the subsea business footprint and some of its key attribute.
Firstly, we have a unique mesh network with 4 trunk submarine cable systems. This extensive netbook different shades of ability to provide more resilient solutions and improve our economic.
Secondly, we of significant room to grow and relatively low capital of investment as me currently utilize on the approximately 10% of our potential capacity of across on the.
And lastly at over 50000 kilometers of cable all the netbook has the most extensive in the region with over 90 per cent of fraud profit going from the Caribbean and Central America to the U S.
Growth and demand for this connectivity is expected to continue.
Finally, the slight then and the strategic update within the framework. The we initially presented and February.
Starting with the first pillow of recovery and growth.
As cover the earlier effective operational execution, let the strong subscribe of growth and the first half <unk>.
Combined with a discipline and focus on cost management. This operational improvement is driven key financial metrics and most important of you fall adjusted free cash flow of growth.
Looking ahead, we committed to maintaining this momentum and to build on the operational stabilization to achieve at V. T. R.
And second dark conventional pillar as of covert operational execution overall and it's been strong.
And the first half of the year with consumer propositions resonating well.
This is an ongoing challenge and they'll all be serious where we can improve but the results and momentum of positive.
Digital has also been the key focus of ours was looking for the head as the navigate depend on me and.
We look forward all converge offerings of gaining traction as we introduced innovative bundles that of unique to Ah Quadplay and network, but we're still in the early and <unk>. So we have more scope to grow, particularly as we combined fixed and mobile operations and Puerto Rico in Costa Rica.
We are also looking to increase self installed across all markets and this makes for a much better customer experience as well as reduce capital of spending.
Bed and network.
In addition to our exciting new Bill and upgrade and activity I also wanted to highlight of successful application for FCC funding via Unioned or and Puerto Rico.
We were trying to it and $71.5 million to deploy and upgrading of books covering more than 900000 locations and 43 out of 78 municipalities across Puerto Rico.
This represents the majority of funds that were available to this 1.
The plan to continue investing and our networks and this mentioned have racing of fixed target the over 700000, your upgraded and homes and 2021.
<unk> focus without fourth pillar of.
Panama operations and is now for the establish the.
This is enabling savings to our existing group and will help drive synergies is re acquire of businesses in the future and streamline our internal operations.
Disciplined management of a cautious help OIBDA margins improve notably and C. N W. Caribbean and networks. This bill will be and all area of of ongoing focus and opportunity as we drive too it's a more centralized operations.
There may be some near term volatility relative related to acquisition related and integration costs, but this will be and company by significant synergy benefits from such combinations of.
Lastly, the capital allocation.
This is a key competency of our group and the driver for additional shareholder returns.
And market consolidation opportunities at fat value such.
Such as that of Liberty mobile and soon to close acquisition of the Telephonic is Costa Rican operations. Good examples of the potential risk in the region.
If you see and exceed of opportunity and of on public market valuation that is all of this is something we will look to take advantage of and and the last quarter, we resume oh of buyback activity.
Going forward, we are excited about the synergies, we can drive from announced transactions and the potential for similarly accretive deals in the region.
Our approach the capital allocation will remain consistent.
And discipline.
With that.
I'll pass you over the Chris noise of our Chief Financial Officer will talk you through our financial performance before we take your questions Chris.
Chris.
Thanks balance starting on slide 12, we reported revenue of $1.17 billion, and Q2 or 8% rebates growth over and the prior year in terms of products we can.
She rebates grabbed the across the board with our largest gained and mobile and be to be both of which way. The most severely impacted by COVID-19, and the prior year quarter.
Taking the hour revenue performance combined with our focus on cost control, we were able to post adjusted the OIBDA $464 million or 10 per cent rebase growth.
P. Any additions stepped up from last year's level of $215 million in Q2 or 18 per cent of revenue, partly reflecting the addition of liberty marble as well as higher CPE spent.
How are you the date Capex with 16 per cent of revenue.
And we expect our spent the increase in H 2 as we look to further our liberty mobile integration and pursue our aggressive network expansion upgrade and capacity plants and.
In terms of F. C F. We reported $35 million of adjusted free cash flow of for Q2, bringing out of the year to date total of $293 million or 15 per cent higher than the H, 1.2020 relish.
Relative to the last year's queue to the decrease was primarily due to much higher cash capex of about $75 million and the quarter.
We remain well on track to deliver our 4 year target of approximately $200 million and adjusted free cash flow and we would expect substantially all of the remaining F. C S and H 2 to be generated and hour seasonally strong fourth quarter.
Turning to the next slide I will dive into our queue to segment performance and for reference we of included the adjusted OIBDA comparison to last year and to Q1 and the bottom half of the slide.
Starting on the left with C and W. Caribbean and networks, we delivered $434 million of revenue and $188 million of adjusted OIBDA, reflecting rebates growth of 8% and 14% respectively.
Notably our financial results also expanded from Q1 hour Rebased revenue performance and Q2 is driven by growth across all of our products as down previously noted we have seen strong argue grass, particularly in Jamaica and this has been the driver of fixed revenue progression.
And mobile revenue is ground true hierarchy, who has mobility restrictions have become less severe and usage has increased.
And and <unk>, we are benefiting from the positive effects of modestly and proving economic activity.
Managing our cost base was crucial so robust cash generation and of challenging 2020, and we have been focused on being thoughtful around spend as revenue recovers. This has helped to drive significant OIBDA margin of improvement as Q2 margin reached 43%.
And <unk> additions expanded to $73 million or 17 per cent of revenue as we supported our quarterly subscriber growth and that and a combination of projects, including is related to capacity and new build and products.
Turning to cable and wireless Panama, CW peace Q2 revenue of $128 million, and adjusted OIBDA of $46 million or 15% and 24% higher on a rebased basis, respectively. Our strongest result of any segment and a quarter compared to the prior year of revenue growth was driven by strong.
<unk> to be performance, including the return of the government related projects that have been put on hold and higher mobile usage from improve and.
Economic activity or residential mobile business also reported double digit rebates growth as our subscriber base increased by over 200000, and the past 12 months the momentum underline our business can be seen sequentially. The Q1 as revenue and adjusted OIBDA increased by $6 million and $2 million respectively.
Capital spending around the corner of the $20 million or 16 per cent of revenue. Our construction crews delivered 39000 homes, bringing the hour year to date total to 60000, new and or upgraded homes.
Liberty, Puerto Rico is highlighted in the middle of the slide growth continues with the business generating topline rebase growth of 11 per cent and adjusted OIBDA rebates growth of 21%, bringing revenue and adjusted EBITDA, $2.360 million and $161 million, respectively. Rebase revenue growth was driven by double digit growth.
And a legacy fixed operations, which resulted primarily from the 124000 and Archie easily of added over the last 12 months. Additionally, the recently acquired there'll be mobile business. The leather rebase revenue growth of approximately 7 per cent on.
And the cost side, we're in the early days of integrating and Synergizing, the Liberty mobile assets, notably queue to integration of Opex was only $2 million.
<unk> additions were $51 million or 14 per cent of revenue and we expect capital of stand to accelerate and H, 2 with integration and ramping newbuild activity and part related to the Guinea and finding that Bal and highlighted.
Switching to the T. R hour of year over year Rebase declines remained elevated as we have discussed on prior cause Q2 revenue of $209 million and adjusted EBITDA of $69 million reflect rebased declines of 6% and 18% respectively. These declining growth rates of modestly improved as compared to Q1.
Our challenge revenue performance is directly attributable to subscribe of losses, particularly broadband rgs over the last 12 months and.
And a year over year basis, adjusted OIBDA declined faster then revenue due in part to hire content and network costs.
P. Any additions were $56 million of 27% of revenue as we further expanded our new build activity to over 130000 homes as compared to 77000 and Q1.
Finishing with cuddly and he can Costa Rica the.
This business posted rebased revenue growth of 13% of $36 million and rebates adjusted OIBDA growth of 3% of $13 million, while peony additions were 20 per cent of revenue.
Our top line continues to be driven by strong broadband volume and RP growth.
Post completion of the Telefonica acquisition are Costa Rican operations will more than double in size and we would expect to begin integrated and the new business with our legacy operations during Q3.
Moving to slide 14, the charts show the last 6 quarters, including the drop and our results last few to the positive impact of the Liberty and mobile acquisition, beginning and Q4 and improving quarterly sequential results with the addition of of Liberty mobile and improved financial performance L. L. A delivered over $900 million of the gesture of labor.
And the H, 1 which is a step up from where we were the last year as we think about rebased growth rates for the next few quarters, we would expect out of rebates graduates to be much lower than our queue 2 levels.
This is a function of more difficult comps and H Q as Q2.2020 was the financial low point for us from Covid and with respect to adjusted EBITDA, We expect to incur most of the 2021 integration opex for there'll be mobile and the second half.
Notwithstanding the phasing of integration expense, we have lowered the hour conservative target for 2021 from $35 million to $40 million down to roughly $20 million of which $3 million has incurred and H 1.
Turning to slide 15, Q2 was quiet in terms of capital structure activity at June 30th we reported $8.9 billion total debt $1.3 billion of cash and $1.2 billion of availability under the hour revolving credit lines. During Q3, we expect to draw approximately $290 million and bank loans.
The fund our acquisition and Costa Rica, the remainder of the $500 million purchase will be funded by LLS corporate cash and by our 20 per cent local partner.
In terms of leverage at quarter, and we had gross leverage of 5 times and net leverage of 4.2 times are weighted average cost of debt and the fully swap basis is running around 6 per cent and the average tenor of our debt is $6 and 3 years, which the debt the charity schedule on the bottom right clearly depicts.
1 change, which Val and touched upon is that we recommenced our share buyback activity and repurchase $10 million of equity during the quarter. It has been a year since the last part back stock and based on the recovery. We are seen in our business. The confidence we have an hour of cash flows and what we think is a highly attractive return.
We thought it was smart capital allocation of good time, the recommenced the program.
Moving to our final slide for MLA, we posted strong financial growth as we continue to recover from the pandemic similar to Q1 hour of results were ahead of our own expectations for the quarter no doubt the macro economic rebound of Latin America will take a considerable amount of time to take hold and as such we remained laser focused on.
Lost control of a recent performance combined with our discipline around costs will position us the gain incremental operating and leverage as the retail environment and proves and and flex.
A key recurring theme for us going forward will be network infrastructure investment as we have highlighted today, we are upsizing hour fiber expansion, but importantly, staying within the hour capex and free cash flow.
So.
Our inorganic strategy has not only enabled elevated drive scale of efficiencies and synergies, but has been critical and enabling us to better serve our customers needs with fixed and mobile connectivity and markets like Puerto Rico curse out and soon to be Costa Rica and Q3.
Specifically and a market like Puerto Rico, we've been able to create a U S. Like F. F C business at generated over $300 million and adjusted EBITDA and just the first 6 months of 2021.
To close at our prepared remarks, we remain confident on delivery and our law consolidated targets and are setting the stage for continued growth and 2022 and we are also pleased to publish our inaugural ESG report last month and look forward to sharing more information to the future disclosures as we further develop our program with.
That operator, we are ready to take questions.
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We will begin with submit data with New Street research.
Hi, Hi, Uhm, thanks, very much 2 of 3 quick questions. If I could please just some of the <unk> Festival.
Uhm come <unk> come through and a little bit quicker than I was might be expecting could you give any thoughts on the on the part of Krom looking forward I think you might be is it 9.2 million and also authorization do you envisage kind of thing and the market just on the on a regular basis always the more.
And kind of subject to pops of why the shop prices. So some kind of sense when you're thinking the would be would be great. Please.
And secondly, uhm just on the integration costs and it sounds like you you've kind of of met net saved some money.
And you'll see some potential of money the the interested and and a little bit more was too and just to let us come from and and when I was looking into 2022, and you think that might be where you to reduce those costs of.
And then of final quick 1 of if that's okay. I'll just on the on the just can you tell around the the numbers for the Liberty My volume of <unk>. It looks like it's it's come and generating about of 42 per cent of EBITDA much and the sun looking about correctly and tons of the the revenue and the value of cold out that seems to be kind of super coughing up all of this up.
Uhm the right way to look at it is it is the only kind of new could get 3 and a color that would be really helpful. Thanks.
Hello assume and thanks for your questions Uhm, Let me, let me just flip through them the <unk>.
First 1 on the the the buyback.
You know, we've always been very careful and a capital of allocation and I think if you look at mail of equity Street and wait now just makes sense and <unk>, It's Chris pointed out and his comment V clearly quite bullish about the future here and.
And what we had from a board authorization with the 100 million, so it'd be flipping through that and and on how we do it is if you would imagine we have the grid and and so we'll we'll execute to do upgrade and but we feel really good about it.
On the integration costs integration costs, you know he'd been down this year I think it's part of the also you know and we've been quite conservative and on integration costs and there's some expenses around you know of licensing and etsy.
Et cetera on with our vendors that we were able to avoid and that contributed to it and I suspect mixture of it will happen degree of recent and he will have integrated and cons, but I don't see it going up nor do I see it you know and some of the cost of getting the reporting of doing integration. This year of being repeat it next year, either so it'll be kind of steady state <unk>.
According to our plan and we feel really good about it and.
And and then on the Liberty mobile and and we'll get back to you on the specific margins on the mobile side, but clearly the margins of all over the map and if you look at the equipment and the margins are pretty close to zero you look at our postpaid the margins of pretty good a prepaid and actually even better and if you look at a roaming then it's the best theory of everything just dropped some.
But clearly and Puerto Rico, and you know if you look at our fix business. The margins day I have really improved as well and if you look at more of a lot of our growth. The came from the fixed spot and of a business day, maybe last Chris and 19, if you Wanna opine on the margins and I I would say you know obviously on the on the margin side you know.
The the lion's share of the backs and integration what kind of start flowing through here and the and the second half so that will be that'll put put some pressure on the margin as well and.
And what you saw and and the first half of the year.
Thanks, Chris.
Thanks, you meant.
Okay <unk>.
Well now moved to a question from Kevin row with row equity research.
Thank you good morning.
Ball and could you update us on the strategic direction for the subsea cable business and and work the potentially separate that business.
And secondly, the the Delta very intense and the news every day and the U S. It's causing some changes in corporate behavior, we've seen.
Mass mandates from some companies there some companies are paying employees to get backs needed some of mandating vaccinations.
Are you taking any different.
Approaches this time around with with Delta to keep your employees working and your stores open.
Hi, Kevin.
[noise] on the strategic side I'll I'll think of that first you know clearly we've kind of at the start.
And it's showing a bit more clarity of look through onto.
Ah subsea asset and we've done some work on what day would take the separate it out and uhm the counting wise legalized tax wise, the whole thing and it's a really good business and its strategic to us and we have not made the final decision on the approach of.
Did that asset I suspect the between Ah born and there's some time and the fourth quarter will probably sit back and say okay. Do we do we want to test the value of debt asset, we clearly feel that it's from and that's O. D. P standpoint, you know this assets undervalued and a whole infrastructure.
And so we may look for ways to bring more clarity to that the standalone value.
And the Delta very and we're not treating it any different and you know the what we went through last year of if you recall of last year was you know I mean, this time last year with the quite bleak and and we've learned a lot true it on and how to react and how not to overreact and as well and if you look at our region clearly the vaccination.
Rates are much lower than how we experience it here and the United States that is the cause of concern force and because of the delta variance spreads across the primarily with the non vaccinated.
On our employee base, we are leaning towards any of our employees and interact with customers. If you work and a retail stores of you go into our customer of homes. We would want you vaccinated now clearly the supplies and some parts of our business day of vaccination rate the high in some parts of of business. If you look at Jamaica.
And <unk> vaccination rates like 10% of.
Having such a rule is kind of meaningless, just gone and getting access to vaccines, but but we send the will of <unk> vaccination is.
Very high and all of our Regents, we will want to be a netbook provided that our customers feel safe, having our technicians and yellow.
Thank you.
Thanksgiving.
And that's the reminder, everyone. If you would like to ask a question. Please the press the star 1 on your telephone keypad will now take a question from Matthew and Harrigan Benchmark go ahead. Please.
Oh, Thank you well congratulations on the on the result of.
Was just curious you got a lot of touch points will there and sophisticated businesses, even enterprise customers and and the Caribbean area on account of your sort of.
The network.
What do you perceive us as the Ucas opportunity the army clearly the region lacks the wants of certain extent, but it feels like you're pretty well positioned the coming out of the blocks of noticed more of of conceptual Donna and.
Immediate blocking and tackling question and there's a lot going on but I I was just curious given your your position and thank you.
Hey, Matt.
On the on the enterprise side and I'll I'll tell you from a subsea business. This is the deal do stories, the the carriers and the wholesale guys are just seeing ever increasing demand for bandwidth and and we've been putting and capacity for a lot of our customers.
Woman Enterprise standpoint, I think it's 1 that we've been kind of looking at the strategically and trying to convince a lot of the hyperscalers that Lindsey matters, and having a bigger and better presence in our region is important for them. So that's an example of a lot of them on the edge data centers actually do.
Not have to them located in a region and.
And so the the is you know.
It and it's driven by do think 1 you know the volume of people and do the lack of focus and we've been having some conversations with some of the hyperscalers around and you did do need to have a presence and a region come into Costa Rica come into Panama come into the Caribbean and and you would be surprised with the connectivity that's available the pop that's available the data.
And is that we have as well so that says the simulation part of stimulation point to that and that business.
Alright, Thanks, Paul.
And 1 final reminder of star 1 for questions will pass to see if there's any further questions today.
With no additional questions that will conclude today's question and answer session and I'd like the hand, the call back over to balance there for any additional or closure remarks.
Thank you operator, and thanks to everybody on the call you know I am actually very happy with our progress.
Lily restarting to see the light at the end of the tunnel getting brighter and brighter and we will continue to work very hard for you and my team is committed to that the management team. The whole company is committed on that for you and for our customers. So thank you for your support and encouragement have a great day.
Ladies and gentlemen, this concludes the Liberty Latin Americans second quarter of 2021 Investor call. As a reminder, a replay of the call will be available and the Investor Relations section of Liberty Latin Americas website at W. W. W. Dot L. L E Dot com.
There you can also find a copy of today's presentation materials.
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