Q3 2021 Liberty Latin America Ltd Earnings Call
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 be not corrupt interim Chief Technology Officer of Liberty Latin America.
Good morning, and welcome to Liberty, Latin America's third quarter, 'twenty, 'twenty, one investor call.
At this time, all participants are in listen only mode.
Formal presentation materials can be found under the investors section of Liberty Latin America's website at.
At Www Dot elevator dot com.
Following today's formal presentation instructions will be given for a question and answer session.
As a reminder, this call is being recorded and will be available under the investors section of our website.
Today's remarks may include forward looking statements, including the company's expectations with respect to its outlook.
Future growth prospects and other information and statements that are not historical facts.
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 our most recent form 8-K filed with the SEC.
Long with the associated press release.
Latin America disclaims any obligation to update any forward looking statements all information to reflect any change in its expectations or in the conditions on which such statements information is based.
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 investor section of our website.
I would now like to turn this call over to our CEO, Mr. Blah Blah blah.
Thank you Ben and welcome everybody to Liberty Latin America's results presentation for the third quarter 2021.
I'll begin with our group highlights and operating results before handing over to Chris Noyes our CFO.
We will provide a review of the company's financial performance.
After that we will get straight to your questions.
It's all based on joined by my executive team from across the region and I'll get them involved as needed during Q&A pulling our prepared remarks.
As a point of housekeeping, we will both be working from slides, which you can find on our website at www Dot LLE dotcom.
Yeah.
Starting on slide four.
Highlights.
We delivered 84000 fixed Archie your ads in Q3, representing our strongest quarter so far.
This continued our momentum from the first half and we've now added nearly a quarter of a million Archie used year to date.
C N W, Panama and CFW Caribbean that Netflix drove the majority of conditions.
In mobile we had another strong quarter, adding 74000 new subscribers.
But half of which were postpaid.
You also saw good initial contributions from our mobile operations in Costa Rica, which we acquired from Telefonica on August nine.
As we've previously highlighted new build and upgrade plants, a core element of our growth strategy and we continue to build aggressively in the third quarter, taking our year to date <unk> added or upgraded to approximately 600000.
99% of ads have been true fiber to the home technology.
Free cash flow is a key focus and we delivered a strong performance in the quarter with year to date adjusted free cash flow now at 149 million at the end of September.
We are clearly on track to exceed our guidance of 200 million this year.
Chris will cover this in his section.
Finally, we have made some important inorganic announcements with the acquisition of America Mobile, Alabama operations, and a 50 50 joint venture with American mobile in Chile.
Both of which are expected to close next year.
These transactions will enable listing rules on networks and customer proposition.
<unk> delivering converged solutions in Chile, whilst also generating new.
Difficult synergies and value for stakeholders.
Turning to slide five and a fixed consumer business.
On the left of the slide.
Is that a quarterly argue adds since Q1 2022.
This shows the initial impacts of COVID-19, and a recovery since then with consistent additions truth. This year, culminating Q3's trough performance.
In terms of our markets.
C N W. Panama with the main driver for the group's third quarter results, adding 30000, Oh geez.
Which was more than Panama had contributed in the entire first half of 'twenty 'twenty. One we have invested in our networks and products in Panama and are pleased to see operating results coming true.
C N W. Caribbean and Netflix also delivered another strong quarter with 25000 net adds led by Jamaica, which is now at a 100000 RG use over the last 12 months.
Puerto Rico, and Costa Rica continue to grow that subscriber basis in Q3 led by broadband RG use which contributed over two thirds of that combined total ads.
Chile remains intensely competitive however, we reported another quarter of stable subscriber numbers and excited about the potential joint venture with America mobile, which I will cover later in the presentation.
On the right on this slide we have shown a newbuild and upgrade progress over the same period.
We remain committed to investing in our Netflix and product offerings to deliver greater access to high speed connectivity solutions for our customers and if already built or upgraded 50% more homes in the first three quarters of 2021 and we did true all of 'twenty 'twenty.
Importantly, nearly all of our bills is no fiber to the home.
We continue to plan.
On deploying this technology.
The rest of our business.
Moving to slide six and our mobile performance.
Ken.
You have presented quarterly evolution said at the beginning of 'twenty Quinn.
A part of the Slide chart shows the significant impact of mobility restrictions of the operations in the first half of Greening 'twenty and a subsequent recovery.
Q3, we included for the first time, the mobile operations, which we acquired from Telefonica in Costa Rica.
The early phases of integrating our businesses in Costa Rica and are pleased with what we have seen to date from what is now our largest mobile operations in terms of subscribers.
In the period during the quarter under our ownership Costa Rica contributed 37000 mobile subscribers.
All other markets C N W Caribbean, and Netflix and C N W. Panama, where again the largest contributor to the group's results delivering 24000 net adds each.
In the aggregate.
We added 74000 mobile subscribers in the quarter with a blended our cool $13 across our base.
On the bottom of the slide.
We present, our postpaid adds over the same period.
We have been successful in building momentum in postpaid through targeted promotions, including a Nissan converged offerings.
Of course study kind of puts or equal our largest postpaid markets.
He led the group in Q3, but 15040 thousand ads respectively.
C N W Caribbean and Netflix and she ended up new Panama have also been steadily growing dip postpaid basis.
16000 postpaid subscribers in aggregate during the quarter.
Next to slide seven.
<unk> operations.
In the bar charts, we break out the performance or C. N W. Caribbean and Netflix C N W, Panama and Liberty, Puerto Rico over the past two years.
These segments include the majority of our BTB operations, representing over 95% of total <unk> revenue in the third quarter.
On the far left we show a C N W. Caribbean in Netflix revenue with the subsea components split out.
The subsea business has been consistent throughout the period and slightly higher in the latest quarter.
This speaks to its resilience, which is further reinforced by its U S dollar reading.
The non subsea BTB operations in C N W Caribbean and Netflix.
Acted more severely by COVID-19, but steadily recovering the lost year lows.
Next to stand up new Panama, all must mobile incentive.
And I'm always one of our most severely impacted markets in 'twenty between and.
Early 2021.
This segment is not back to pre Covid revenue levels, and we are looking for flip the progression from here.
Finally, Liberty Puerto Rico.
This chart shows the scale of PCB operations, we acquired in the AT&T transaction.
Q3, 2020 one figure includes b to B operations be quite net to the BBB S&P dispose.
Without converged propositions. We believe this can be a growth driver corporate 30 cool.
The write off the slide we have broken out our <unk> customer segments.
An indication of their respective sizes.
Final slide eight and a review of our of the inorganic progress with me.
Before going through some of the details.
I want to share how excited we are about these transactions.
We've always said that.
First M&A in country transactions, but it's all four product gaps or existing offerings.
The generation of synergies.
<unk> killed the strengthen our market positioning and propositions and most importantly, our ability to drive meaningful free cash flow growth.
Moving to a bit more detail on the left off the slide we've outlined the rationales, Paul announced 50 50 joint venture with American mobile and cheating.
Through this transaction, we will combine the strong fixed operator with a strong mobile operator.
This new company will have scale to provide all communications needs to both consumers and businesses.
We plan on investing in more fiber to the whole increased five <unk> coverage strengthen our BTB propositions increase our digital channels and possibly partnering with other operators on our networks.
Our combined business plan to generate significant synergies.
Over $180 million.
And we feel that this transaction makes sense for Chile.
Combined company will only be the third largest provider behind NPL telefonica.
Hopefully a catalyst.
More consolidation in that market.
We expect the transaction to close in the second half of 2022 and if also noted some key elements of the structure on the slope.
Turning to the right of the site, we also announced the acquisition of American Mobiles, Panama operations.
This transaction will consolidate the market or to treat place.
This will create a healthy situation all treat me please.
It will also bring scale to T. W. P of both consumer and BBB propositions and distribution.
It improves network coverage and customer experience.
And that's the Chile transaction, we expect to generate significant synergies.
Note that this acquisition will be funded at the asset level in Panama.
In addition to these announced transactions we were pleased to complete the acquisition of Telefonica Costa Rica operations in August.
Integrating this mobile business without fixed operations that probably pick up will enable us to create compelling product offerings for our customers as well as try synergy benefits.
We are also making progress in the integration of our Puerto Rico operations.
We are one year into a three year plan.
Recently completed them.
Milestone as we rebranded pick them mobile operation to Liberty.
Overall SP approach to yeah, we are focused on delivering our guidance targets and establishing a platform for sustained organic growth across our operations.
We are also working diligently to integrate our accretion spear for quiet as well as the cost of transactions announced.
We remain confident that together these sections will create additional value and position us to deliver adjusted free cash flow growth in the coming years.
With that.
As you over to Chris Noyes, our Chief Financial Officer, who will talk you through our financial performance.
Before we take your questions Chris.
Chris.
Thanks balance one housekeeping item to start we closed the Telefonica Costa Rica acquisition on August nine so their results are only in for a portion of this quarter.
Reported revenue increased by 34% or about $300 million to reach revenue of $1.19 billion. In Q3 helped in large part by the positive impact from acquisitions on a rebased basis. Our revenue grew 3% led by strong year over year performances in Costa Rica and Panama.
From a product perspective, our residential mobile business picked up steam and deliver rebased growth of 6% in the quarter, while residential fixed and B to B also grew on.
On a year to date basis, Rebased revenue maintained a consistent 4% growth rate.
Turning to the adjusted OIBDA posted $446 million in Q3, reflecting reported growth of 24% and flat rebased growth consistent with our Q2 statement regarding lower expected rebase rates in the second half of the year.
Cost increases varied across certain markets, but in aggregate, we experienced a combination of higher direct costs, including programming and Rami and higher operating costs similar to revenue our year to date adjusted EBITA Rebased growth was 4%.
Slide 11 summarizes our revenue and adjusted OIBDA performance by operating segment for Q3, and the bottom of the slide displays year over year adjusted OIBDA results, beginning with C. N W. Caribbean and networks, we recorded $435 million of revenue or 4% Rebased growth led by double digit.
Revenue growth in Jamaica.
Mobile revenue performance was the largest contributor to our top line progression with rebased growth of 9%, reflecting modest recovery from Covid and early success from our focus on converged offerings. Additionally, we experienced year over year Rebased revenue growth of 3% in both <unk> and fixed residential adjusted.
EBITDA was $182 million or up 3% on a rebased basis in the quarter and spoke the rack and operating cost increased year over year caused in part by higher activity.
Next cable wireless Panama, Q3 revenue and adjusted OIBDA grew 9% and 11% on a rebased basis, respectively, delivering revenue of $129 million and adjusted OIBDA of $48 million.
<unk> is building the Panama led by Rebased revenue growth of 15% and B to B and 10% residential fixed residential mobile posted modest growth over Q3 2020.
On residential fixed we have added 70000 RV used in the last 12 months with roughly 40% of needs in the current quarter, which should help propel growth into the fourth quarter.
Highlighted in another slide as Liberty, Puerto Rico, we reported revenue of $359 million and adjusted OIBDA of $142 million, representing modest rebased growth in Q3, a 2% revenue and 3% adjusted OIBDA in terms of revenue our legacy fixed operations. Once again grew double digit year over.
Yeah, well Liberty mobile declined as subscription revenue growth was offset by lower equipment b to b and roaming revenue.
Adjusted OIBDA was impacted by higher costs, principally in the areas of robbing programming and labor on a year over year basis. The sequential decline in adjusted EBITDA from Q2 was due in large part to lower net roaming and greater losses from equipment sales. We also incurred integration costs of $2 million, which we assume will stay.
Up considerably in the fourth quarter.
Turning to M T. Our COO.
<unk> revenue of $193 million and adjusted EBITDA of $65 million.
Rebates declined 5%.
Sequentially our results in U S dollar terms, reflecting average depreciation of the Chilean peso by approximately 8%.
Free as compared to Q2 consistent with prior quarters, our year over year. When you based revenue decline was largely due to volume losses in ARPA decline called Bravo.
Compared to last year, adjusted OIBDA dies from perhaps faster than revenue due in part to much higher programming costs relating to the return of livestock matches, one pocket from a quarter would that be two hours adjusted EBITDA in Chilean pesos was marginally positive for the second quarter results.
And even with coastal weekend, including removal of assets for about 50 days of the quarter when generated revenue of $77 million of Rebased revenue growth of 11%. This top line performance was driven in large part by combination of mobile and broadband growth, reflecting the increases in the subscriber base over the last year, we reported adjusted OIBDA of 24.
$1 billion, reflecting rebased growth of 13% in the quarter. The Telefonica apples contributed $41 million of revenue and $11 million of the Jessica wafer bar.
Integration activity should begin to ramp in Q4.
On slide 12, we recorded pini additions of $232 million for Q3, and 599 $9 year to date, our spend equates to 20% of revenue for Q3, and 17% of revenue for the nine month period. The increase in quarterly spend was due in part to the significant expansion in our new build activity, which.
Is up three fold in terms of homes passed and or upgraded as compared to last year. We'll continue to have elevated capital spending in the fourth quarter, reflecting our investments in network subscriber growth and integration and are on track to deliver full year pay any additions of approximately 18% of revenue.
With respect to adjusted free cash flow, we delivered our fourth consecutive quarter of positive free cash flow was $56 million in Q3, bringing our total to roughly $150 million for the nine months. We are currently tracking to exceed our $200 million guidance figure for 2021.
On slide 13, we have broken down our consolidated results by revenue roughly 65% of our ported revenue Q3 is U S. Dollar U S dollar linked and OPEC Importantly, Puerto Rico, and Panama account for 40% of our total revenue and that will increase post the claro acquisition in Panama.
Additionally, post our JV in Chile overall value will still be impacted by the trajectory of the Chilean peso theoretically, but our consolidated reported results from the U S dollar oriented to over 75%.
In comparison to other publicly traded operators in the region. This U S. Dollar mix, we believe is a key positive differentiator.
Moving to our financing metrics on slide 14. During Q3, we funded the acquisition of Telefonica in Costa Rica, with local debt borrowings and cash from L. A and our 20% partner and in early October we completed a roughly $600 million eight year refinancing and C. N W. At a fully swap rate of about 4.4.
This results in over $14 million of annual free cash flow savings beginning in 2022 sets.
September 30th including D. T R, which is held as an asset for sale on our balance sheet, we had $9 $2 billion of total debt $1 $1 billion with cash at $1.2 billion of availability under our revolving credit lines. We had gross leverage of five times and net leverage of 4.4 times inclusive of ETR.
Our ratios will fall slightly after adjusting for a full quarter impact of Telefonica coaster week.
Our maturity schedule in the upper right remains long dated and finally, an important development that we discussed in Q2 is that we restarted our share buyback, we purchased $10 million in Q2 and double that in Q3 to $29 and have definitely continued into Q4.
Through Q3, we have $60 million remaining under our current repurchase authorization, which expires next spring.
Turning to slide 15, as we have highlighted today, we've been very active in the quarter. We are executing on our plan to drive future value to both customers and shareholders dragging subscriber revenue and adjusted OIBDA growth year to date, expanding our network investments and making strategic Nonorganic moves, which we believe.
Were highly accretive and which strengthened our product offering for our customers. We are on track to deliver our 2021 guidance targets on the adult pay any additions and most importantly free cash flow, which is a key metric for us and how we run our business given the share weakness we have seen over the last few months.
And our view on our free cash flow trajectory and relatively quiet near term acquisition pipeline, we have ramped up our buyback activity capitalizing on what he believes that valuation disconnect and a high capital return opportunity in Q4, we are focusing on customer acquisition Newbuild digital.
<unk> and integration activities, which should set the stage for our 2022 performance with that operator, we are ready to take questions.
Thank you and if you would like to ask a question. Please signal by pressing star one on your telephone keypad, if you aren't using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions.
Yeah.
As a reminder, that is star one to ask a question and we will take our first question from Jeffrey Boulder check with pivotal Research group. Please go ahead.
Good morning, I had a couple of questions on Puerto Rico I was hoping you could provide more color on the the wireless revenue decline is it fair to say, that's mostly COVID-19 related and then if you could give any color on when do you guys intend on rolling out converged.
Offered to consumers and in Puerto Rico, that'd be helpful and I had one follow up.
Good morning, Jeff.
[noise], let me maybe address that a bit in the last night you could jump in here.
Wireless business in a pretty good actually doing really well, we actually added postpaid subscribers.
In the quarter, we did have some headwinds and <unk>, but it's not really COVID-19 related it you know bouncing around a bit on roaming some of the equipment field you know.
<unk> moved off a bit but but.
The Greek quite bullish on that.
And on the converged side, we've already started our converged offerings.
But we're gonna eat proof you would more so once the systems cut over to.
I would say not now did you do you want to add onto that.
Yeah sure.
Good morning, Jeffrey Yes, I mean to a cool vantage point too.
For us the fundamentals are really strong, but if you look at service revenue both sequentially and year over year. It's growing there is some volatility a bit on the roaming is a brown discusses what does it Cooper revenue as you know as well you know the iPhone launch.
Late September and you know the peak was in October where people usually hold the purchase onto the.
The roof won't come in through the seasonality and as you know.
In most cases.
Negative contributors one on when it comes to Cooper revenue on there.
The roaming you know what I think was expected the seasonality.
More people aren't traveling as well, which in some cases other expense in some cases, we do see that window as well.
For the convergence are really excited about the way this is unfolding.
As I had mentioned we did converge on brand and on September 28, the feedback has been really positive.
And we are not plenty of our offer our converged on converging now, but our sales trends are converging so consumers are walking into our retail stores.
Sure. So they are able to.
Purchase both fixed and mobile and initial results are really positive.
And again, we're just literally you know four weeks into into into this so really excited you know three optimistic about the future from that perspective.
Thanks.
Is there any update on your your subsea assets you were thinking about selling a portion of that I think you're going to let us know in fourth quarter or is that not happening you're still thinking about it any update would be great.
Well, Jeff you can clearly see that business is a very good strong business very stable and predictable cash flow, we've been thinking about the sum of the parts of it and giving better more clear line of sight to it.
I expect that you know February call, we'll give you a very clear view on.
What what our plans are under the asset.
Great. Thank you very much.
Sure.
And up next we'll take a question from Michael Rollins with Citi. Please go ahead.
Thanks, and good morning, I'm curious if you could.
Discuss when you have fixed mobile convergence in the market.
What is the typical revenue or margin advantages over not having that level of convergence.
Sure.
A few drivers for the convergence clearly the bundle gives a better E. R. P C with a constant you know every.
Revenue per customer secondly, improves the tune is wrong.
And and you know certainly, especially in our case, where we have a lot of prepaid customers.
FMC this convergence actually moves a lot of unpredictable prepaid customers to a postpaid customer.
Even in some cases, even kind of a hybrid Bruce b.
But the goal really is to get.
Get the customer to stick with this long ago.
Great value to the bundle.
Have them see or actually experienced a much better service from us.
And do you radically also a better value for them.
And it is working and it's working very strongly as you pointed out in Puerto Rico, we started that and you'll be seeing normally greenfields actual growth I mean, you look at our fixed business one of our best performances last quarter, driven by FMC as well Costa Rica.
<unk> acquired the Telefonica asset and he is working now already with a couple of <unk> business and now it's funny because this isn't that combination we are launching some very innovative products in cable and wireless general manager there has.
Produce really innovative FMC products.
And we are seeing the success of small moving to prepaid to postpaid. That's why we are driving it and not really a margin improves as well.
The predictability of that cash flow.
Thanks.
Alright, and up next we'll hear from James Ratcliffe with Evercore ISI. Please go ahead.
Good morning. Thanks for the question two if I could first of all on the margin front I know, there's a lot of noise in the data with Covid, plus M&A and like but can you help us look through that to what the underlying margin trends look like particularly in cable and wireless and how much more room do you have to run in your cost reduction work there and secondly.
Fixed telephony continues to be surprisingly strong.
Talk about what youre doing with that product, what's the impact in terms of arb, who in turn and what the strategy around it is thanks.
It will continue to drive that piece of the book like Battle said, both in markets and at the center.
Clearly some room to improve that site.
Thanks Andrea.
And then on your second question on fixed telephony.
This is an interesting thing I mean, clearly this product is not.
A super growth product, but refund still away where customers.
To the bundle.
Kind of an innovative pricing proposition getting.
Getting our existing customers to just to add on voice to the service and you can imagine the gross margin and this is like close to a 100% and so.
We've just taken the advantage too.
To drive more and more of it in.
And it's working in some areas, we're not counting on this as a growth driver for our business would not count on this.
<unk> as a driver, but when you get it you take it in and we saw an opportunity and we put our salespeople on it and we were able to put up some good numbers.
Alright, thank you.
And once again to ask a question press star one.
And up next we'll hear from Sumit Datta with New Street Research. Please go ahead.
Hey, guys yeah. Thanks.
The presentation a couple of questions in.
One just on <unk>.
<unk> please.
You talked about the the subspace kind of stabilizing a little bit about the profile.
It's a particularly weak cutting so we've seen accelerating broadband losses through this year. So.
I just wanted to know your thoughts about the momentum in that business and again as a kind of joined question.
How do you see the <unk>.
Deal Youll doing in Chile.
Helping on the fixed side in particular.
I guess also is there anything you can do before that deal closes to help ease the path and thickness.
So that's one question. Please maybe I'll wait to wait for the answer and then just go with another one.
Sure and I'll ask vivek to jump in here in a bit as well.
The broadband business day, it's been all over the map our gross adds on broadband are really good there's some leakage clearly and that's why the net ads went off.
There are three things that we're doing one improving our retention on broadband and we're getting a lot more creative.
On that as well too.
As you can imagine we are re pricing our product and you can see that in our EBITDA and and that has also slowed.
A lot of the churn part of broadband and.
And fifth we are going to redirect some of our sales team.
Some a lot of our sales team to now focus specifically on broadband so.
And so youll see some some.
<unk> on that but I'll tell you.
We are adding gross adds coming in still strong on broadband it's just that the churn level. So we are trying to address the next stage the churn part of the.
But that broadband proposition Vivek would you would you mind, adding a bit more to that.
Yeah. Thanks, Thanks, Paul and thanks, so much for the question, Yes, I think his balance and really focusing on the churn side of the equation, which continues to be challenged with the competitive intensity here as our competitors continued to expand our footprint.
Our churn improvement initiatives you have seen.
<unk> and technical services calls truck rolls et cetera. So those should have a lagging effect that we should see the upside of churn in Hawaii.
<unk> been having some record months on gross adds I think.
Given the seasonality of it seemed like probably.
<unk> gross adds you have done in the last few years on the broadband side.
<unk> also fueled by some of the new build we have added into the market. So.
I would say the competitive intensity continues to be difficult in the marketplace, which is kind of reflected in the numbers but.
The opportunity for us.
<unk> got in broadband subscribers is still there.
Thanks, Okay Thats great.
Thank you very much and.
Can I follow up please just with just.
Just a quick question for Chris actually on cash flow.
The I think the integration costs are coming in a little bit lower this year could you just give us a quick update please on as we move into 2022, what will the <unk> to be between.
Integration costs.
This year and next year and also then synergies so what would be the the movement to free cash flow from the from the combination of <unk>.
All of those things please.
Yeah without I mean, we're obviously still working through our plans for next year and the and the budget process.
In terms of integration as it relates to Puerto Rico, what we've communicated as we expect.
Q4 integration to be around 10 $10 million. So that's a little bit of a step up from where we've been year to date, so that would bring the total to roughly $15 million on the cost side. This year I think as of today, we would expect it to be higher integration costs.
Next year in 2002, a lot of the hard work that <unk> and the TNI team are doing around the mobile core and things of that nature happening.
During the during the year next year, so I'd expect to step up their I think capex, we continue to spend.
Opex on integration and that will stay pretty constant I think an integration land.
Next year as well.
We'll have more detail on some of the synergies and views as we kind of finished.
The outlook for Puerto Rico.
When we report in February.
Okay, great. Thanks.
And we'll take a follow up question from Jeffrey Volta check with pivotal Research group. Please go ahead.
Thanks for letting me ask a follow up.
I had a couple on Chile and.
This feature Clara deal, which given how competitive it is getting looks particularly smart transaction I guess what are the regulatory milestones we should be looking for the.
The deals moving towards getting approved I guess, that's the first question.
You're lighting up a lot of two way enabled homes in Chile right. Now is that something you can modify so you arent sort of overbuilding.
At work or that kind of gets its already kind of built in and then third are there any opportunities post deal to potentially monetize towers or anything like that that we're not aware of thanks.
I'll answer question, two and three and and John Winter. Our General Counsel is working really hard on the regulatory front will will take on one.
Under <unk>, we will continue to aggressively.
<unk>.
Fiber to the home and clearly.
We can't coordinate with our partner yet so we haven't we're not coordinating with them.
And overbuilding demo a demo of a building as we're doing our own thing and until the deal closes, but we're really bullish on the new builds and I think Chris May have mentioned it I don't know if you did that.
We had a lock box.
Situation right now after the signing and so on.
All spending is really JV spending at this point and so we.
We are just charging ahead.
You had a second question.
What was the third question again I forgot.
Yes.
Towers, Yes, Italian monetize.
You know not much of that they won't be much I mean, you can imagine tele sites and what they've done with that we were not expecting any.
Much activity and now we do own some towers as well, but nothing to write home about.
John you want to talk about the regulatory yes sure. Thanks <unk> so.
We filed with the regulator.
At the end of last week, the formal application process, we had already been working with our partner with the regulator on that so so that got filed formula kicks off the phase one process, which will take about.
45 to 60 days, maybe 90 days to get through and answer all their questions.
We do expect that it will go on to a phase III given kind of the competitive environment.
And.
Everything in Chile.
But we feel good about the approval process, we feel good about the advantages, we bring to Chile and and consumers. So eventually we get closed it just.
A longer process in Chile, and we are still expecting closing in the second half of next year.
Thanks, Jeff.
Thanks very much.
Thanks, Jeff.
And there are no further questions in queue I'll turn the call back over to <unk> for additional remarks.
Thank you operator, and I do want to thank all of you on the call and just to reiterate.
We feel good about the quarter strong operational growth organic growth in our.
Would you use.
Good numbers on postpaid and fixed.
I would also say that on <unk>.
New builds we are really excited by the new builds and we continue to do that we really leaning into our thesis the cash flow numbers that Chris talked about.
Clearly.
Meeting and exceeding guidance on that front and as you pointed out in the slide Jeff on the call some really smart M&A decision.
<unk> transactions that we executed on this last quarter. So for all those reasons and more we remain really bullish about this business and in the future for LLE. Thank you. So much for all your support and have a great day.
Yeah.
And this concludes today's call. We thank you again for your participation and you may now disconnect.
Okay.
[music].
Yes.
Okay.
[music].
Okay.
Yeah.
[music].
[music].
[music].
[music].