Q2 2021 Liberty Latin America Ltd Earnings Call
Thank you for your patience the Investor call will begin shortly.
Okay.
Hum.
[music].
The outlook and future growth prospects and other information in statements that are not historical fact.
Actual results may differ materially from those expressed or implied by these statements.
For more information please refer to the risk factors discussed in 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.
Liberty Latin America disclaims any obligation to update any forward looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based in.
In addition on this call we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in 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 C O. Mr. Bolland there.
Thank you, Mike and welcome of 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 heading over to Chris noise, CFO, who will fall over the review of the company's financial performance after.
That it would get straight to your questions as.
That's always 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 delivered a strong <unk>.
Of results in 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 give.
Cable and wireless Caribbean, the networks and Puerto Rico once again drove the group of strong commercial execution.
In mobile we had our first of a quarter, adding 118000 new subscribers. This.
This was done by Panama, which very nearly replicated a record Q1 performance and in Jamaica.
Ads with 55000, which was 45000 higher than the first quarter.
I'll continue the operational recovery of which drove 8% pre base revenue growth together with the discipline 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. N W. Caribbean of networks and C. N W. Panama Ultra deliberate double digit rebates 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.
The thousand new all upgraded homes more than 95 per cent of which of fiber to the home.
Finally, we announced earlier to speak that we have received the required authorization to complete the acquisition of Telephonic is Costa Rican operations. We expect this transaction to close very shortly.
Moving to slide 5 and highlights fall out key market low.
The reef provided relative revenue contributions for each market true the percentages Sean.
Starting with Puerto Rico, our largest single market, which contributed nearly a third of the groups 1.2 billion in revenue in the second quarter, all of which it's U S dollar of revenue.
We continue to see strong growth in of Puerto Rico operations of broadband penetration increases and we continued to deliver how the ads and.
In terms of the integration of Liberty of <unk>. This is progressing well and remains an exciting driver of future free cash flow growth as we look to generate significant synergies from the in market combination.
Moving to Chile, which represents 18% of L. L. A of revenue in queue too.
Re of progressing here by stabilizing the subscriber base and now look the bill and does the platform by selling to a growing high speed footprint.
Given the challenging competitive environment. We are also very focus of managing costs and I'm seeing some savings from actions, we have taken and via matching a competitive pricing, we would rather give all consumers to savings debt to can see any subscribers competitors.
The 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 will close our acquisition of telephonic his business very shortly.
This will create an innovative converge scale player in the market and fries good synergies true in market consolidation as with many of our markets. Some degree of mobility of restrictions are still in place.
However couple of because of consistently perform well true the past 18 months driven Mike growing in home broadband day man.
Getting to the bottom row in Panama, which contribute at 11% of groups revenue in queue too.
Yeah, we saw of mobile momentum continue in queue too.
With subscriber additions driven by the total so detailed plan.
Panama was 1 of the most severely impacted markets by COVID-19, However, mobility restrictions have east and the ability of vaccines is expected to increase.
Extra Jamaica, which is the largest C N W. Caribbean of networks market and represented 9 per cent of L. L of revenue in the second quarter, Hugh Yeah, I've seen some very good operating and financial results, despite relatively low vaccination rates.
In the last 12 months, Jamaica is add at 95000 argues 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 in recent quarters. This is of high margin and mainly U S. Dollar business that is also benefited from increased bandwidth demand across broadband and video applications and of each and lastly, what we've categorize have other market representing the rest of the C N W Caribbean of networks and country.
Beating just under a quarter of Q2 revenues for elderly.
Growth for these markets of expected true higher data of penetration and usage and both of fixed and mobile of products.
In terms of the broader backdrop tourism is an important economic drive of for these markets and an increase the number of visitors that's anticipated in the second half of the year for 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 subscribe additions, where the group had another strong quarter, bringing.
Bringing force have net adds to just on the 150000 or to use on nearly double the price of your period.
Taking each reporting segment and 10.
C N W. Caribbean the networks show in the upper left reported higher net ads you over here in the second quarter with the largest contribution coming from Jamaica, very added 26000 or to use the.
The Bahamas in Barbados represented the majority of the remaining ads.
In Panama, we add at 9000 R G as in the quarter with.
Footprint expansion in product improvements at the dry for the growth true the Ya.
<unk> is impacted by retention activities, such as the use of lifeline plans discounts and moving customers to lower cost plants.
Liberty, Puerto Rico in the upper Senate continued to increase broadband penetration and grew its subscriber base by 22000 in the quarter.
The price of your benefit it from high demand as customers adopted to working and learning from home.
And Chile, we of stabilizing a subscriber base. Following argue you losses in the second half of 2020.
The market remains very competitive and we continue to focus on customer retention is mentioned on the previously.
Ah last segment of course study kind of shown in the upper right had another good quarter net ads of 11000 and robust or development.
As a group read the liver strong Q2 ads of 73000 or juice with you over your improvements driven by C. N W. Panama.
And C N W. Caribbean the networks.
A group or poop of customer at $50 was up 3 per cent you over you on an FX neutral basis.
Moving to slide 7 and a record mobile performance.
Starting again with C N W. Caribbean the networks in the upper left maybe added 58000 subscribers in the quarter of swing of 234000 subscribers as compared to Q2.2020.
Jamaica added most of the segments subscribe as in the quota up by 55000.
They need to Panama of each again generated the most ads in the quarter throwing it 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 in the quarter of note, we saw improve growth and postpaid maybe add at 11000 subscribers.
Finally V T. R last 7000 mobile subscribers in the quarter the operators, an MBA of no in Chile, predominantly providing postpaid services to existing fix service subscribers and a small plate in the market.
An aggregate of group, we added a <unk> 118000 mobile subscribers in the quarter with of blended our pool of $19.
The increase of 68 per cent you over years, driven by the inclusion of Liberty mobile and Q2.2021.
Next to slide 8 and I'll be to be operations star.
Starting with the total group performance on the left side read the limit robust freebase growth of 5 per cent in the quarter.
As markets continue to recover steadily from the impacts of COVID-19.
In the center of we break up the performance of course, he N W. Caribbean the networks and C. N W. P. I N number.
The segments include the majority of I'll be to be operations, representing approximately 80% of total <unk> revenue.
The Apograph show of stable year over year performance across a subsea business and last time B 2 b market, maybe have a tack of competitive positions.
Our income and Caribbean of Panamanian <unk> operations of faith greatest challenges over the past year, primarily due to reduced tourism and the associated impacts on local economies maybe operate.
Due to the revenue reduction day has been more scope to cover. 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 of all in the price segments, which represents approximately 40% of all of <unk> revenue is recovering well driven by improve economic by visibility and business confidence in our markets. The segment benefits from the shift the remote working in the associated solutions.
Second wholesale which is mainly can price of networks and C. N W and represents about a quarter of B b revenue overall.
Is bandwidth demands grow just drives a wholesale business.
The small and medium businesses or S. M b contribute it about 15 per cent to be to be overall.
Digital innovation during pandemic has provided a growth 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 of 5 per cent of <unk> of 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 in visitors how're.
However, it's worth noting that it represents the small amount of B b overall.
Next to slight 9 and an overview of infrastructure assets.
Starting with a new build an upgrade of activity on the left side.
Yeah, you can see the significant <unk> and Bill you over you and the technology evolution, where virtually 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 them but in.
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 eat the 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 books you today.
And mobile we have a minimum of L. T across all our largest markets and telephonic us operations in Costa Rica, I'll also L D.
Puerto Rico is the first 5 G market and our experienced the 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 for.
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 with relatively low capital of investment as we currently utilized on the approximately 10 per cent of our potential capacity across the networks.
And lastly at over 50000 kilometers of cable all of Netbook has the most extensive in the region with over 90 per cent of <unk> profit going from the Caribbean and Central America to the U S.
Growth in demand for this connectivity is expected to continue.
Finally, the slight then and the strategic update within the framework. The read initially presented in February.
Starting with the first pillow of recovery and growth.
As cover the earlier effective operational execution, let the strong subscribe of growth in the first half <unk>.
Combined with the discipline focus on cost management. This operational improvement is driven key financial metrics and most importantly of 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.
Second dark components, you'll pillow as of covered operational execution overall, it's been strong.
From the first half of the of it 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 hours, both looking for the head as the navigate depend on me.
As we look forward all converge offerings of gaining traction as we introduced innovative bundles that of unique to Ah Quadplay network, but we still in the early in the queue. So we have more scope to grow, particularly as we combined fixed and mobile operations in Puerto Rico in Costa Rica.
We are also looking to increase self installed the cross our markets and this makes for a much better customer experience as well as reduce capital of spending.
The Ah network and.
In addition to our exciting new build an upgrade of activity I also wanted to highlight a successful the application for FCC funding via Unioned or in Puerto Rico.
We were granted $71.5 million to deploy and upgrade networks covering more than 900000 locations in 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 in our networks and this mentioned have racing all fixed target. The over 700000, you upgraded the homes in 2021.
<unk> focus yourself fourth pillar of.
Panama Operations Center is now fully establish this is enabling savings to our existing group and will help drive synergies as we acquire of businesses in the future and streamline our internal operations.
Disciplined management of a cautious help OIBDA margins improve notably in C. N W. Caribbean and networks. This bill will be in 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 related related to acquisition related integration costs, but this will be accompanied by significant synergy benefits from such combinations.
Lastly, the capital allocation.
This is a key competency of our group and the driver for additional shareholder returns.
The market consolidation opportunities of fat value.
Such as that of Liberty mobile and soon to close acquisition of Telephonic is Costa Rican operations. Good examples of the potential received the region.
If you see in a city of opportunity and of on public market valuation that is all of this is something we will look to take advantage of and in the last quarter, we resume our buyback activity.
Going forward we.
Excited about the synergies, we can drive from announce 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 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 in Q2, or 8% rebates growth over the prior year in terms of products, we achieved rebates growth across the board with our largest gained in mobile and beat of be both of which were the most severely impacted by.
[noise] COVID-19 in the prior year quarter.
Taking out revenue performance combined with our focus on cost control, we were able to post adjusted the OIBDA of $464 million or 10 per cent rebates growth.
P. Any additions stepped up from last year's level of $215 million, if you too or 18 per cent of revenue, partly reflecting the addition of liberty marble as well as higher CPE spent.
Our year the date Capex with 16 per cent of revenue.
We expect our spent the increase in H 2 as we looked of further our liberty mobile integration and pursue our aggressive network expansion upgrade and capacity plants.
In terms of F. C F. We reported $35 million of adjusted free cash flow of for Q2, bringing out of a 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 in the quarter.
We remain well on track to deliver hour for your target of approximately $200 million and adjusted free cash flow and we would expect substantially all of the remaining F. C S and H Q to be generated an 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 anti Q1 in the bottom half of the slide.
Starting on the left with C. N W. Caribbean the networks, we delivered $434 million of revenue and $188 million of adjusted OIBDA, reflecting rebates growth of 8 per cent and 14% respectively.
Notably our financial results also expanded from Q1 hour of Rebased revenue performance in Q T was driven by growth of cross all of our products as down previously noted we have seen strong argue growth, particularly in Jamaica and this has been the driver of fixed revenue progression.
In mobile revenue is ground true hierarchy, who has mobility restrictions have become less severe and usage has increased and and be the <unk>. We are benefiting from the positive effects of modestly improving 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 the drive significant OIBDA margin of improvement as Q2 margin reached 43 per cent.
Additions expanded to $73 million or 17 per cent of revenue as we supported our quarterly subscriber growth and invested in the combination of projects, including is related to capacity new build and products.
Turning to cable and wireless Panama, CW peace key to revenue of $128 million, and adjusted OIBDA of $46 million or 15% and 24% higher on of Rebased basis, respectively.
Our strongest result of any segment in the quarter.
Compared to the prior year of revenue growth was driven by strong be to be performance, including the return of the government related projects that have been put on hold and higher mobile usage from improve economic activity or residential mobile business also reported double digit rebase growth as our subscriber base increased by over 200000 and the per.
12 months the momentum underline our business can be seen sequentially. The Q1 as revenue adjusted OIBDA increased by $6 million in $2 million, respectively cash.
<unk> spending around the corner of the $20 million or 16% 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 Rebase growth of 21%, bringing revenue adjusted EBITDA, $2.360 million and $161 million, respectively. Rebase revenue growth was driven by double digits.
<unk> and our legacy fixed operations, which resulted primarily from the 124000 RG easily of added over the last 12 months. Additionally, the recently acquired the remodel business the leather rebase revenue growth of approximately 7 per cent.
From the cost side, we're in the early days of integrating Synergizing, the Liberty mobile asset, notably queue to integration of Opex with only $2 million per.
<unk> additions were $51 million or 14 per cent of revenue and we expect capital of stand to accelerate in H, 2 with integration and ramping new build activity in part related to the Guinea end up finding that ballon 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 adjusted EBITDA of $69 million reflect rebased declines of 6% of 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 on a year over year basis. Adjusted OIBDA has declined faster then revenue due in part to higher content of network costs pm.
<unk> additions were $56 million of 27% of revenue as we further expanded our new build activity to over 130000 homes as compared to 77000 in Q1.
Finishing with Kabwe Tikkun Costa Rica, this business posted rebased revenue growth of 13% of $36 million in rebates adjusted OIBDA growth of 3% to $13 million, while <unk> editions 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 for more than double in size and we would expect to begin integrating the new business with our legacy operations during Q3.
Moving to slide 14, the charts show the last 6 quarters, including the drop in our results last few to the positive impact of the Liberty mobile acquisition, beginning in queue for and improving quarterly sequential results with the addition of Liberty mobile and improved financial performance L. L. A delivered over $900 million of the gesture of labor.
The on H, 1, which is a step up from where we weren't of last year as we think about rebates growth rates for the next 2 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 of late.
The dog, we expect to incur most of the 2021 integration opex per there'll be mobile in the second half.
Notwithstanding the phasing of integration expense, we have lower the hour conservative target for 2021 from $35 million to $40 million down to roughly $20 million of which $3 million has incurred in H 1.
Turning to slide 15, Q tier 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 our revolving credit lines. During Q3, we expect to draw approximately $290 million and Bang.
Loans to fund our acquisition in Costa Rica, the remainder of the $500 million purchase would be funded by Lle's corporate cash and by our 20% 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 in the fully swap basis is running around 6 per cent and the average tenor of our debt 6.3 years, which the debt the charity schedule on the bottom right clearly depicts.
1 change, which file and touched upon is that we commenced 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 in our 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 <unk>.
Lost control of a recent performance combined with our discipline around costs will position us the gain incremental operating leverage as of retail environment improves and and flex.
A key recurring theme for us going forward will be network infrastructure investment as we have highlighted today, we are upsize in our fiber expansion, but importantly, staying within the hour capex and free cash flow envelope hour.
Our inorganic strategy has not only enabled elevated drive scale of efficiencies of synergies, but has been critical of enabling us to better serve our customers needs with fixed and mobile connectivity in markets like Puerto Rico curse out and soon to be Costa Rica in Q3.
Specifically in a market like Puerto Rico, we've been able to create a U S. Like F. F C business it generated over $300 million in the adjusted EBITDA in just the first 6 months of 2021.
To close at our prepared remarks, we remain confident on delivering our law consolidated targets and are setting the stage for continued growth. In 2022. 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.
The question and answer session will be conducted the electronically if you would like to ask a question of regarding the company's operations. Please do so by pressing star or Abstrict key followed by the digit 1 on your Touchtone telephone in order to accommodate everyone. We request that you ask the only 1 question with 1 follow up if need.
Did it.
If you are using the speaker of equipment. Please make sure your meat function is turned off to allow your signal to reach our equipment will pause for just a moment to give everyone the opportunity to signal for of questions.
We will begin with submit day that with New Street research.
[noise], Hi, Hi, Uhm, thanks, very much uhm 2 of 3 quick questions. If I could please uhm just from the <unk> Festival.
Uhm come <unk> come from 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 also authorization.
Do you envisage kind of being in the market just on the on a regular basis always the more you know kind of subject to pops of why the shop prices. So some kind of sense when you're thinking the would be would be quite please.
Secondly, just on the integration costs it sounds like you've you've kind of net net saved some.
Muggy all site some potential money, the the interested and a little bit more as to as to whether it's come from.
When I'm looking into 2022, do you think that might be where you to reduce those costs of.
And then the final quick 1 of thoughts Okay. I've just on the on the system can tell around the the numbers of Liberty of my volume of <unk>. It looks like it's it's kind of of generating about of 42 per cent EBITDA margin of fun looking about correctly in terms of the the revenue in the call you cold out that seems to be kind of of super profitable. This up.
The right way to look at it is it is the only kind of new to get 3 any color that would be really helpful. Thanks.
Hello assume it thanks for your questions Uhm, Let me, let me just flip through them. The first 1 on the the buyback.
You know, we've always been a very capital of in a couple of allocation I think if you look at him out of equities trading right. Now just makes sense of <unk>, Chris pointed out in his comment re clearly quite bullish about the future yeah, and what we had from our board authorization with 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 low will execute to do a grid 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 we've been quite Conservative Tonight integration costs and does 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 I suspect mixture of it will happen degree of recently will have integration costs, but I don't see it.
Going up nor do I see it you know of some of the cost of getting the re putting into integration. This year of being repeat of next year, either so it'll be kind of the city state.
But according to our plan and we feel really good about it.
And and then on the Liberty Mobile Uhm, we'll get back to you on the specific margins on the mobile side, but clearly the margin. So all over the map. If you looked at the equipment. The margins are pretty close to zero you look it up postpaid the margins of pretty good a prepaid actually even better and if you look at a roaming then it's the best right of everything just drops.
But clearly in Puerto Rico. It's you know if you look at our fixed business. The margins day I have really improved as well and if you look at it more of a lot of a grocery came from the fixed part of my business day, maybe I'll ask Chris on 90 of you Wanna Opine on the margins May I would say you know obviously on the on the margin side.
You know the the lion's share of the backs of integration will kind of start flowing through here in the in the second half so that will be that'll put put some pressure on the margin as well.
From what you saw him in the first half of the year.
Thanks, Chris Thanks.
Thanks submit.
Okay 2 fries.
Well now moved to a question from Kevin row with row equity research.
Thank you good morning.
Fallen 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 variant it's in the news every day in 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 are mandating vaccinations.
Are you taking any different.
Approaches this time around with with Delta to keep your employees working in your stores open.
Hi, Kevin.
[noise] on the strategic side of all tangled up with you know clearly we've kind of the spell.
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 the counting wise legalize 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 in this sometime in 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 acids undervalued in a whole infrastructure.
And so we may look for ways to bring more clarity to that the standalone value.
On the Delta variant, we're not treating it any different than you know the what we went through last year. If you recall last year was you know I mean, this time last year with the quite bleak and and we've learned a lot through it on how to react and how not to overreact as well and if you look at our region clearly the vaccination.
Rates are much lower than how we experienced it here in 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 the interact with customers. If you work in a retail stores of you go into our customer of homes. We would want you vaccinated now clearly the supplies in some parts of our business way of vaccination rates of high in some parts of of business. If you look at Jamaica.
<unk> vaccination rates like 10% of.
Having such a rule is kind of meaningless could you just kind of getting access to vaccines, but uhm, but we send the real <unk> vaccination is <unk>.
A very high and all of our region rebuild want to be a netbook provided that our customers feel safe, having a technician syndrome.
Thank you.
Thanksgiving.
And that's the reminder, everyone. If you would like to ask a question. Please the press star 1 on your telephone keypad will now take a question from Matthew of Harrigan Benchmark go ahead. Please.
Oh, Thank you well congratulations on the on the result of I was just curious you got a lot of touch points will very sophisticated businesses, even enterprise customers in the Caribbean area on the account of your subsea network, where do you perceive us as the ucas opportunity.
The the army clearing all of the region lacks the last of certain extent, but it feels like you're pretty well positioned coming out of the blocks of no. That's more of a conceptual then of.
The immediate blocking tackling question, there's a lot going on but I I was just curious given your your position. Thank you.
Hey, Matt.
On the on the enterprise side I'll I'll see from a subsea businesses. It's 2 stories. The the carriers. The wholesale guys are just seeing ever increasing demand for bandwidth and and we've been putting in capacity for a lot of our customers woman.
Woman in a price standpoint, I think it's 1 that we've been kind of looking at each of Glee on training convinced of lot of the Hyperscalers.
That lindsey matters, and having a bigger and better present 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 the damn located in our region and uhm. So the day you.
You know the.
It's driven by 2 things 1 the volume of people and do the lack of focus and we've been having some conversations with some of the Hyperscalers around you did do need to have presence in our region come in to Costa Rica come into Panama come into the Caribbean and and you would be surprised with the connectivity that's available the pops that's available the data.
Dennis that we have as well so that the simulation.
Of stimulation 0.2 debt to 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 I'd like the hand, the call back over to balance there for any additional or closure remarks.
Thank you operator, and thanks, everybody on the call you know I am actually very happy with our progress.
Clearly restarting to see the light at the end of the tunnel getting brighter and brighter we will continue to work very hard for you. 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 in 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 of materials.
[music].
[music].
[music].
[music].