Q4 2021 Liberty Latin America Ltd Earnings Call
The scatter markets full year results presentation.
I'll begin with the group highlights and operating results before closing with an overview of our strategic focus areas in 2022.
Chris Noyes, our CFO will then follow with a review of the company's financial performance and our outlook.
After that we will get straight to your questions.
As always I'm joined by my executive team from across the region and I will get them involved as needed during the Q&A pulling our prepared remarks.
A point of housekeeping, we will both be working from slides, which you can find on our website at www Dot LLE dotcom.
Starting on slide four and I'll highlight.
Highlights for the year.
We grew our fixed base by 269000 RG use in 2021 .
Led by cable and wireless where we added over 100000 Archie.
Strong contributions also coming from Puerto Rico.
Derma and Costa Rica.
In mobile we had.
A record performance in both Q4 and the year, adding 493000 subscribers in 2021 with a growing postpaid mix.
Panama and Costa Rica reported the highest additions across both periods.
High speed connectivity is at the core of our customer offering and reinvest it to expand and improve our network during the year, adding or upgrading approximately 750000 homes passed across our operations almost exclusively using fiber to the home technology.
We plan to continue this activity in 2022 with around 600000 homes plant.
Our principal financial guidance for 2020 , one was to deliver 200 million of adjusted free cash flow and we achieved this target.
We also announced an additional $200 million buyback broken yesterday, which Chris will provide more details on it.
Finally, we continued to make progress with our inorganic strategy and premium train one.
Announcing the acquisition of America, Moorefield, Panama operations, and a 50 50 joint venture with American mobile in Chile.
We expect to close both transactions this year as well as making further progress integrating businesses previously acquired in Puerto Rico and Costa Rica.
Turning to slide five and a fixed subscriber additions by market over the past three years.
Starting with cable and wireless Caribbean and Netflix in the upper left off the slide.
Here, we have delivered steady improvement over the period.
10% growth in addition during 'twenty one.
This was driven by Jamaica, where we added close to 100000 odd to us in the year.
Moving across onto slide two Liberty, Puerto Rico, we continued to deliver strong adds in the year, albeit a lower figure than 'twenty 'twenty, maybe benefited from demand driven by COVID-19.
Our quarterly run rate exiting 2021 it's a more normalized level for the business.
Furthest right on the top row, we had our best year in Costa Rica, that's probably become more than doubled its Twenty-twenty addition, 45000 in 'twenty one.
Moving to the lower left at C. N W. Panama here, we saw much stronger performance in 'twenty, one as the market recovered from the prior year impacts of COVID-19.
On network in Panama is now over 80% HFC or fiber to the home.
We are focused on improving operational execution across core areas of sales retention and installation to drive further growth.
Finally in terms of our markets BTR had a better year in 'twenty, one versus 'twenty. However, the Chilean market continues to be intensely competitive and we reported net subscriber losses in the fourth quarter.
Our focus here is to stabilize our subscriber base.
Overall for the group.
That was a 57% increase in ads for 'twenty, one compared to 2020.
Moving to slide six and our mobile performance.
Fixed kpis represent annual figures from 2019 to 21 and call up postpaid additions separately.
Starting in the top left of slide he ended up your Caribbean at Netflix.
Recovered strongly in 'twenty, one after the impacts of COVID-19 and associated mobility restrictions.
To make our the segment's largest market that's C N W and mobile growth.
What we are excited about is how FMC plants, working and drove 40000 postpaid adds and our strongest performance in recent years.
They need to Puerto Rico, very quiet mobile operations in October 21.
While our overall base remain relatively stable during 'twenty. One there was a notable shift in mix as we added 39000 postpaid subscribers.
Selling activities should flip it drive postpaid ads.
Moving to the right of the slide in Costa Rica.
Our largest mobile operation in terms of subscribers.
And then another recently acquired business. That's a graph shows the operation delivered significant additions in the four and a half months under our ownership.
Postpaid subscribers represented about one third of the total assets.
On the bottom left of the slide we present, Panama mobile subscriber performance.
The country, where our customers experienced the most severe mobility restrictions during 'twenty.
And we saw a significant rebound in 'twenty, one as market conditions improved.
And that might limit the most adds across the group in the year, including Reckitt postpaid ads.
In aggregate we.
We added close to half a million mobile subscribers in the year, including important 137000 postpaid subscribers.
As we drive fixed mobile convergence across our markets. We are focused on increasing our postpaid subscription based revenue.
Next to slide seven.
<unk> operations.
In the Bar chart on the left of slide we present, our fourth quarter will be to be performance with 15% and 4% Rebased growth respectively.
B to B is back.
Following 2020, when economies with challenge projects were put on hold.
Panama, Jamaica in particular, so activity recovery and this was accentuated in Q4 as projects are turned to the marketplace in what is seasonally our strongest quarter for BD.
The center of the slide.
We provide an overview of where <unk> revenue generated across the group.
Including our subsea operations C N W. Caribbean in Netflix at all.
The largest contributor generating close to $1 4 billion in <unk> revenue annually.
Panama is then the next largest operation with 18% of the pie and Liberty, Puerto Rico is the much larger b to B business pulling all acquisition with 16% of <unk> revenue.
On the right of the slide.
Wanted to provide some more hello on Netflix in Latam business.
This comprises our subsea operations of attack could be to be operations in Latin America.
These businesses on a combined basis represents over $400 million of annual revenue on a gross basis. So our reported figures exclude intercompany capacity sales up over $70 million in 2021.
In terms of the split shown.
Most of the revenues driven by subsea.
However days also diverse and fast growing <unk> business here at Columbia, representing our largest market.
At this time, we are not providing any additional information as it pertains to any clients with the asset.
Importantly, it's evident on this slide.
This business continues to charge ahead.
We firmly believe this business is underappreciated attractive characteristics.
It is underpinned by U S dollar revenue.
Strong cash flow conversion and then adjusted EBITDA margin of above.
About 50%.
Relatively low capex requirements.
Plenty of capacity given the advances in technology.
We continue to work on how best to optimize this unique asset.
Moving to slide eight and an overview of our networks.
Starting on the left with our fixed footprint by technology.
The key takeaway here is that we have a strong position 90% of homes with Pos with high speed technology at the end of 'twenty one.
Incentive to slight Shaw investment activity and how it has evolved over the past years.
Built consistently even through COVID-19 , adding nearly 2 million homes in the four year period.
We see our network is core to the company's long term success and will continue to invest approximately 600000, new homes built upgraded.
<unk> and 'twenty two.
The other point to highlight here is our increase in S E T H technology.
Such that is now used in virtually every case.
Finally on the right side of the slide we show the significant growth in high speed mobile service capabilities.
We now have LTE coverage virtually everywhere that we operate.
We also have five G SIB simple to repo and U S. Virgin Islands by approximately 95% of the population is served by our five G capable of it.
Turning to slide nine.
And then inorganic strategy, which we believe will drive significant free cash flow growth for the group.
On the left up to slide.
We show, our completed and pending transactions since 2018.
Intensive competed transactions, we have consistently focused on opportunities that sulfur product gaps.
Existing offering gen.
Generate clear synergies and create scale to strengthen our market position and proposition.
Most importantly, we look for opportunities to drive meaningful free cash flow growth.
Sometimes these are smaller, but very accretive moves such as the acquisition of broadband.
In the U S Virgin Islands, which we closed in December last year.
This will be the platform for us to build out our fixed connectivity business in the U S V I.
Which we plan to integrate with our mobile operations to create a leading converged operator.
Pending deals we remain very excited about the prospects for both.
And expect to complete the Palomar acquisition in first half.
Chile JV in the second half of this year.
On the write off the slide we wanted to provide an update on integration activity in Puerto Rico and Costa Rica.
These are exciting and accretive deals.
Both transactions, we expect to deliver somewhere in the region of 90 million of synergies once integration activities completed.
This will coincide with the end of our TSA agreements with AT&T in telephonics.
Towards the back end of 2023.
So we will have a full year benefits in 2024 and progressively more through this year and next.
Our 2022 milestones include testing, a new IP stack in that finishing on mobile or by the end of D. A.
And consolidating our brand and retail Netflix as well as designing a new Oss BSS and Costa Rica.
Finally disliked it.
<unk> focus areas as we look to 2022 and medium term shareholder value creation.
The priority list.
It's across three pillars.
Network.
What can Nike.
This will include expanding and upgrading our fixed and mobile networks. So that we can deliver leading service proposition for our customers.
Transformation will involve some of the integration activity as well as establishing new it stack.
Support our business operations.
Second our commercial approach.
Aimed to drive fixed mobile convergence to bring better value for customers, while creating more predictability in our cash flow.
Product development is delivering a great in home Wi Fi experience set top box solutions. He seven five G fintech and B to B products.
Really improve service and reduce costs.
Through increased use of digital channels, we will improve our customer journey, reducing friction and buying our products increase efficiency of our search engine optimization search engine marketing and social networks.
This will increase sales and reduce channel costs for the future.
Additionally, we remain focused on using technology embedded too willing to reduce churn, which is a significant cost for all operators in our industry.
Third and finally capital allocation.
Highlight it underpriced.
We intend to drive inorganic growth through the acquisitions, we have already completed.
As well as those we are looking to close.
Successful integration of the business being quite vital.
Both drive synergy and to optimize top line.
So just a key focus for us in Puerto Rico, and Costa Rica in 'twenty three.
And we have been active with our share buyback.
And yesterday, our new $200 million increase to the play.
With that.
Pass you over to Chris Noyes, our Chief Financial Officer, who will talk you through our financial performance before we take your questions.
Chris.
Thanks, Alan I will start by running through our key metrics focusing on Q4 performance for starters Q4 revenue increased by about $180 million year over year to $1 $3 billion fueled by our acquisitions in Puerto Rico, and Costa Rica, our rebased growth rate was 6%.
Which was our second best quarter of the year. This growth was led by double digit top line performances in Panama, and Costa Rica, as well as the 7% Rebased resolved from cable and wireless Caribbean and networks on a full year basis revenue was up 4% on a rebased basis to $4 8 billion in the upper right we generated.
Adjusted OIBDA of $470 million in Q4, reflecting rebased growth of 3% an improvement from flat rebased growth in Q3.
Our adjusted OIBDA margin in Q4 of 37% was adversely impacted by lower margin <unk> and mobile equipment sales during the quarter as well as about $10 million of integration expenses.
Moving to the full year and consistent with revenue our Rebase growth was 4% on adjusted OIBDA of $1 $8 billion.
Our <unk> additions in the bottom left where $257 million in Q4 were 20% of revenue. This result brings our 2021 total to $856 million or 18% of revenue and includes significant newbuild and upgrade activity as balan highlighted and roughly 25 million.
Integration related capex during the year on the bottom right, we reported $51 million of adjusted free cash flow for Q4, bringing our full year to $200 million, a 35% increase over 2020.
Next to slide 13, I wanted to make a few points about our quarterly performance and our expected phasing for 2020 to Q4 2021 is the first full quarter, including our mobile business in Costa Rica acquired from Telefonica, which contributed $71 million of revenue and 17.
And adjusted OIBDA during the quarter.
Q4 also tends to be seasonally strong in revenue with higher mobile activity and equipment sales, leading up to the holidays and from significant projects awarded by businesses and governments.
Looking to 2022, we expect to deliver continued revenue and adjusted OIBDA ground. However, our growth will be significantly weighted to the second half of the year.
This is a function of a difficult comparison in Puerto Rico relating to the favorable net roaming we experienced an H, one and 2021 higher spending on integration for Puerto Rico, and Costa Rica, and continued pressure in BTR in revenue and adjusted OIBDA expected for 2022.
Turning to adjusted free cash flow, our quarterly phasing in 2021 was relatively consistent and there was a positive contribution across all quarters. We expect 2022 to go back to more historical phasing with Q1, and Q3 substantially lower than Q2 and Q4 due in part to interest payments. Furthermore, we would.
Q1 to be negative in Q4 to be the largest quarter of the year in terms of cash flow.
Slide 14 highlights our revenue and adjusted OIBDA results by segment for Q4 and the full year.
Starting with CFW Caribbean and networks, we reported $453 million of revenue or 7% rebased growth and $196 million and adjusted EBITDA or 9% Rebased growth. This was led by double digit rebased revenue growth in Jamaica, and our networks businesses as well as high single digit growth.
In Bahamas and Barbados.
<unk> revenue result year over year was driven by 10% Rebased performance in mobile and 8% Rebased growth in <unk> to be reflecting in part improved conditions across the region. Adjusted OIBDA grew faster than revenue as we realize operational leverage through controlling our cost base.
Moving to cable and wireless Panama, Q4 was particularly robust for our team in Panama, They delivered revenue of $169 million and adjusted OIBDA of $63 million, resulting in rebased growth of 30% and 24% respectfully <unk> revenue, particularly those associated with long term projects really came back during the quarter.
As they had been constrained last year from the impacts of Covid. Additionally, fixed residential services were up 7% year over year building. Upon our continued subscriber growth throughout 2021, as we added over 60000 RG use during the year turning to Liberty, Puerto Rico, We reported revenue of $376 million and adjusted OIBDA of 100.
$41 million, representing modest rebased growth of 2% in revenue and 1% in adjusted OIBDA in terms of revenue our legacy fixed operations grew double digits year over year, while Liberty mobile declined slightly as subscription revenue growth was offset by lower equipment and b to be revenue.
Adjusted OIBDA was impacted by higher cost principally in the areas of bromine integration programming and labor on a year over year basis, partly offset by reduced handset costs.
The BTR.
We delivered Q4 revenue of $175 million and adjusted OIBDA of $55 million, reflecting rebased declines of 8% and 20% respectively.
As we have seen throughout 2021, the Rebased top line decline was due to a combination of <unk> decline and volume losses, but the market remaining extremely competitive we expect declines to continue until such time as subscribers or to have more stabilized.
Additionally, our adjusted EBITDA has continued to compress faster than revenue, which is a function of several factors, losing higher margin broadband revenue increased programming costs and higher network costs, including truck rolls.
And even with Costa Rica, we generated revenue of $107 million of Rebased revenue growth of 10%. This top line performance was driven in large part by mobile including significant growth in the underlying subscriber base and higher handset sales, we reported adjusted EBITDA of $29 million, reflecting modestly base growth of 1% our growth.
<unk> was negatively impacted by about $3 million of integration expense and increased commissions due to customer additions.
Turning to slide 15 at year end, including BTR, which is held as an asset for sale on our balance sheet. We had $9 2 billion total debt $1 $1 billion of cash and $1 $2 billion of availability under our revolving credit lines.
Consistent with Q3, we had gross leverage of five times and net leverage of four four times.
On September 30th we have been active across three of our credit silos as we highlighted on our Q3 call in early October we issued $590 million of <unk> term loans, due 2029, and our fully swapped rate of four 4% and repaid $500 million of seven 5% bonds and 55 million.
A 575% bonds.
In December we raised an incremental $120 million term loan at LIBOR, plus 375 basis points due 2028 and used the proceeds to redeem 10% of our outstanding 675% bonds at Liberty Puerto Rico.
And in the early part of 2022, we completed syndication of $435 million six year term loans and <unk>.
<unk> wireless Panama at a fixed rate coupon of four point to 5% it.
It is broken down into components, a $275 million facility refinancing existing term loans.
And a $160 million acquisition facility to fund a large portion of the Claro Panama acquisition.
Our debt maturity looks good only about 15% of our debt is due within the next five years, our weighted average life is just under six years and our fully swapped borrowing rate is just under 6% as well.
The flag in this rising rate environment more than 95% of our debt fixed over the last three quarters, we have been active under our buyback program as the chart highlights we repurchased $10 million in Q2 $20 million in Q3 and $35 million in Q4 to date. This year, we have continued to be.
Purchasing equity and expect to complete the $100 million program in the coming days. Additionally, as seen yesterday in our press release, our board approved a new $200 million repurchase program.
Moving to the right part of the slide we highlight our 2021 financial guidance, which we delivered and we lay out our 2022 targets. These targets are based on our current consolidated group of assets, including the just completed acquisition in the U S. Virgin Islands, <unk> and do not account for the impact of pending.
Actions we have.
Adjusted NIE different transactions as they close first we are targeting PD additions of approximately 18% of revenue consistent with 2021 second we are focused on delivering adjusted free cash flow of approximately $250 million. Our 2022, adjusted FCS will be tempered due to integration costs adversely impacting.
Both adjusted EBITDA and pay any additions and the inclusion of the <unk> acquisition, which is expected to contributed negative free cash flow near one of its fiber build.
Important to also note that cash taxes are expected to be significantly higher in 2022, we expect cash taxes to range from 8% to 10% of adjusted OIBDA.
Moving to the final slide we're pleased with our consolidated 2021 results, we delivered our key financial and operational targets and what was a challenging year for our region is still suffering from the impact of Covid and lagging behind the recoveries, we have seen across North America and Europe are focused on growing the business is evident.
<unk> fixed and mobile sub growth combined with improving b to B helped us achieve mid single digit rebased revenue and adjusted OIBDA growth and a 35% increase in adjusted free cash flow.
Importantly, we maintain discipline around our capex envelope simultaneously supporting success based spend investing in our network. Both in terms of fiber to the home expansion and upgrading residual copper plant and advancing our integration efforts in Puerto Rico and Costa Rica.
<unk> PON.
Fishing capital allocation is key for us as we look to drive value in two key ways.
First we have been strategic with our M&A activity, our completed <unk> announced transactions over the last two years in Puerto Rico, Costa Rica, Panama, Chile, Curacao in the U S. Virgin Islands have several similarities.
Attractive valuations in market consolidations complementary to existing products and highly synergistic.
Second as we gain confidence how recovery from Covid as our free cash flow generation and the outlook has improved and the market has provided us with an attractive opportunity to capitalize on our low share price, we have steadily ramped up our buyback activity through 2021 and as I highlighted in the previous slide that has continued into 2000.
'twenty two.
In closing we are excited about our 2022 prospects.
It'll be a year of operational execution across our integrations and initiatives that <unk> highlighted and to close both our Panamanian in Chile and transactions.
We are focused on driving free cash flow growth this year, even with the headwind of significant integration spend.
With all the work we continue to do we believe will position us for improved growth and free cash flow performance in 2023 and beyond.
With that operator, if you could open up for questions.
Of course.
The question and answer session will be conducted electronically.
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Our first question comes from the line of Mike Coupe Island 215, Michael. Please go ahead.
Oh, Thanks, and good morning.
Couple of questions if I could.
First question just on the numbers can you break out the impact of the government contract in Panama and the overall results for revenue and OIBDA.
And how should we think about the contribution from that over time and then just separately curious if theres an update on the exploration of what to do with the.
The subsea business as well as any other component in the portfolio. Thanks.
Thanks, Michael.
In Panama on the government contract and all that.
My colleague Guillermo to jump in here in a bit as well. These are actually extremely good revenues the basic component of nonrecurring.
And then a monthly recurring going forward, we don't break down the components of <unk>.
To be specific contracts and the value of the contract, but I will tell you. These are great contract by the government of Panama.
Panama Richard Post Covid.
They're coming up with a lot more contracts and we are just getting for all of them.
But we feel really good about the nonrecurring part Richard capital upfront and then the monthly recurring that.
It happens in the future game or do you want to jump in really quick and before and then I'll answer the subsea equipment.
Yeah. Thank you Paul and we are very happy about the performance of our BD team in Panama, We have a strong team there which have been we have been building.
A long time.
The relationship we have with not only with the government, but other large corporations in Panama is really strong.
This is.
What is represented in the numbers I think the figures you saw on the fourth quarter fourth quarter is usually a strong quarter for us as many entities accelerate some of the.
Project execution.
Water.
And we have become the preferred partner to <unk>.
B.
Those projects in Panama Pro forma has been really good as I said.
Pointed out by many of these projects had a nonrecurring component upfront.
I mean by equipment original equipment, but then another important component of that.
Regarding revenue that we would enjoy over the next over the next year or actually in this kind of large project.
Thanks, Guillermo on your second question on subsea.
Really happy with that asset, we really like the business as I indicated earlier on extremely high margin business.
An EBITDA basis and on an operating free cash flow basis.
And we truly believe that the <unk> and this is not fully reflected yet.
No.
Pacific within on the strategic options that we've been looking at.
Because we're not going to comment on that today, but we really like the business.
Maybe in the next quarter.
Two quarters from now, we'll probably shed some more light on it.
Thank you.
Okay.
Our next question comes from the line of D. A.
<unk> from Goldman Sachs.
Please go ahead.
Yes. Thank you good morning, that'll increase thanks for taking my question.
The first one.
Your guidance for free cash flow.
25% growth right clinical virtue.
So can you just help us reach the roof.
So let me go through by region and also by business.
That's the first question. Thank you.
Yes.
I'll talk holistically about the free cash flow and in some of the information we provided.
First obviously, we're focused on continuation of adjusted OIBDA growth.
That plays through.
We gave guidance very similar to the Capex.
The percentage of revenue that 18% similar to what it was in.
In 'twenty, one we did give some color around our our cash tax number so a fairly significant increase during the course of 'twenty two as compared to 21.
As a business we are focused on working capital and working capital efficiency and we continue to kind of focus on that to drive it.
Improvements on a year over year, so when you put the math components together.
Translates into call it $50 million increase.
On a year over year basis.
Okay.
Thanks, Chris.
That's helpful.
My second question.
Chile.
Just would like to get your views.
Recent developments in Macau, particularly.
The growing number of pure fiber players going to that country and also if you can just comment briefly on the timeline to be honest they require approvals for the JV with <unk> that would be great.
Sure.
Thanks Diego.
<unk>.
On the approval process.
My General Counsel, John Winter as well, it's been working on that.
We feel good that it's the second half of the year closing on this and let John can maybe jump in a second but that's what we've publicly stated and we feel that that's still good.
Clearly, it's a highly competitive market as you pointed out there's a lot of the money coming in.
Currently right now seven fixed operators in Chile.
So we think consolidation digest.
Absolute sense.
Some of our competitors publicly stated that they are wanting.
Wanting to either exit the market or putting up the asset for sale. So I suspect after our announcement there'll be more consolidation in the market and that's that's necessary them, but our joint venture with cloud of America.
American mobile I think.
Let's take up the market will bring a lot of investment into the country and you can clearly see from our JV real bullish in Chile, We think it's going to come back we think it's a strong market in the long term and Thats why we are continuing.
They have a presence there and to do this joint venture with Valero.
Great Mobile network, they've got a great network and that combination I think.
We will put up a good.
Response to some of our competitors.
John do you want to make maybe a comment on the closing yes sure about.
Yes, so we're still optimistic and confident about being able to close in the second half of the year.
It was publicly stated by the.
If any in Chile, the moved us to phase two of the of the process, which we were expecting.
Pretty customary keen in Chile for transactions of this type.
We're working with our partner to two <unk>.
Respond to the F&B and we're using.
I'm confident we'll be able to get that approved timeframe. We we outlined in September .
Thanks, John Thanks Jacob.
Okay.
As a reminder to ask any follow up questions. Please press star followed by one telephone keypad.
Our next question comes from the line of Kevin <unk> from Brian T Research Kevin. Please go ahead.
Thank you good morning, Paul and I have sort of two high level questions first.
On inflation.
In general are you addressing inflation with equipment costs fiber labor energy or are you leaning more into price increases to keep up with inflationary pressures.
And secondly on Chile, Roland if you could give us a sort of a real time update on the new government I often get questions on it.
In terms of regulatory trends and regulatory outlook any changes there or even a commentary on potential tax risk. Thank you.
Sure. Thanks, Kevin Thanks.
First one on inflation inflation of course is all over the map.
And if you look at our regions, specifically because of commodity prices et cetera, we are seeing real inflationary effects.
Chile of course.
Some of the island, it's kind of temporary in some of the locations that unemployment is still high because of lack of tourism, we see those headwinds in the Caribbean Islands, right now and we expect that to improve and that's improved inflation, probably will start coming down as well. He is not a strategy and we are not taking price increases we're going to tackle it.
Relation through cost cutting.
And the reason we do that is one this management team is focused and drain on driving value without taking price increases. This is the volume driven growth business.
And it's a good practice for my management team as well.
At all levels.
To run this business with discipline and not count on price increases to solve for some of the gas in the car.
Cost structure.
And I think that's going to serve us really well in the long term and it doesn't open up or at least it opens up a bigger gap between us and our competitors, we take price increases.
I really like that strategy.
On Chile, specifically the government of course, the new government in place we've been very pleased with the cabinet that he has formed and.
It's a very moderate cabinet with a lot of technocrats in it.
Some we know very well.
As well and.
And then to your question on taxes, there's a lot of noise out there.
We'll see how it plays out, but it's going to take a while for any changes to come about.
Like I said in my earlier.
Question from Diego, we are bullish on Chile.
And certainly in the long term prospects with Geely.
Thank you Bob.
Thanks, Kevin.
Yes.
As a reminder to ask any further questions. Please press star followed by one <unk>.
Pat.
Our final question comes from Manav Gupta from New Street Research. Please proceed.
Hi, there guys.
Apologies I joined the call late so I'm going to ask a couple of questions and hopefully they haven't been asked.
Again apologies who maybe.
And maybe take them offline.
First of all on the on the.
Park I was just wondering.
How are you thinking about the pacing of that.
Not going to be sort of you guys in the market sort of.
All the time kind of regularly.
You sort of being part of the flavor, where you're going to be a little bit more selective about it how do we think about that maybe pacing over the next couple of years I think they are going through to December 24, so a bit of as to when that would be.
Super interesting was the first question.
Secondly.
I can answer this as being sort of come up too much but just on the subsea kind of.
The strategic review my understanding was that you were going to kind of totally what would it be like as low a year long process.
Sure.
No.
The market was going to hit the country without.
Do we not have any conclusion from the process.
That would be the second question and then just on.
Chile please.
I know, we're waiting for the deal to do.
Isn't that what sounds like it's absolutely on track obviously.
The business is slipping a little bit in terms of proton bouts before that point.
Is there much you can do about that or is it a case of kind of waiting to close the deal and then.
<unk>, obviously been in a can.
Creates a position of strength to compete thanks very much.
Sure.
The buyback I'll start with it and I'll ask Chris to jump in here on the buyback we are going to be up in opportunistic you saw.
From the last three or four quarters in 2020.
For any.
Recently, thank all stock.
<unk> valued right now.
IRR for us to buyback and.
And we're quite pleased to extend the.
The buyback program for.
At an increased level of $200 million well and this gives us a lot of flexibility.
Jump to the question and then I'll ask Chris to come back to the buyback to give more color. There on the subsea yes. The question wants to add Sumit and India and to us.
Not complete in our in our reviews and we'll give more color in the next quarter.
But we love the asset and yeah as I stated before it is OTB the sum of the parts on that.
Not being fully reflected.
But.
Thank you and for another quarter or two sorry, sorry.
A long time, but this is a business that we love and we may be looking at it from all angles.
On the Chile plant.
Our strategy if you saw 2020.
We took a big hit on net adds we stabilized it in 2021 and 2022 I'll focus leading up to the JV is to.
Gordon that adds as well now.
In the seven player market.
You know that you've got very few levers to play with but one of the levers it really pricing and youll see that <unk> has declined a bit.
Ashamed by that we are going to take this baidu our competitors and my.
My good friend, Vivek, who runs our Chile operation.
Recently I've been looking at it and I think we're going to get even more creative on the value front book customers, that's going to shake the market up as well so I feel really good about Chile.
We are going to come into the JV with strong net add on the outside and I think as well on the cloud side and remember that one of the key reasons, we're doing this.
Is the fact that we can launch a converged product.
And and also funded by a significant amount of synergies from both sides that can fund.
A very nice build out in that country.
So we feel good about that.
Pass it onto Kristen if you want to provide more color on the buyback, yes, sure Hi Sumit.
Just a couple of points one we.
We have we will have purchased about $90 million of stock in less than 12 months. So as you can see that from a pacing. Obviously is bound pointed out we're opportunistic so we tend to buy more as the stock price is lower.
You can see that based on our behavior over the last three five quarters.
And.
Going forward, we'll just tend to balance.
The share price the other opportunities for our free cash flow M&A, our investments within the business and we're focused on efficient capital allocation in terms of driving longer term shareholder value and that will dictate the pacing.
Slow it down we could speed it up but net net we'll be opportunistic as we look out over the coming quarters.
Yeah.
Okay, great. Thank you.
To conclude our question and answer session I'd like to hand back to blonde asked any additional or closing remarks.
Thank you operator.
As usual I want to thank all of you for your support of our business.
It has not been an easy last couple of years, but we remain quite <unk>.
<unk> about the future I think 2021, we put up some pretty good numbers, even notwithstanding some of the headwinds in Chile, and if you look at 2022, we see that momentum coming into the year now clearly.
Already we are two months into the year and we've seen some really good stuff some challenging parts of our business, but that's normal in a company like ours, and but we remain quite optimistic about the future and.
Let me end by saying once again, thank you so much for your support.
Yeah.
Ladies and gentlemen, this concludes Liberty Latin America's full year, 2020 bond investor call.
As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America's website at Www Dot.
<unk> Dot com.
You can also find a copy of today's presentation materials.
Uh huh.
Okay.