Liberty Latin America Ltd. Q1 2023 Earnings Call

May 9, 2023

Without this revenue would have grown by 2% in the quarter on a rebased basis.

Moving to slide six and our CFW Panama segment.

Starting on the left of the slide Internet Archie you additions in Panama, shortly healthy growth sequentially and consistent performance year over year, we launched DOCSIS three one and combined with our extensive fiber to the home.

We offer speeds of one gigabit per second to more than 85% of homes passed.

We expect that the significant investments will underpin continued growth in mobile we remain focus on postpaid and maintain a stable subscriber base in the quarter.

Prepaid we are targeting improve our booth to the mix of packages, we offer and our focus on higher value customers. We think auto increases in prepaid is long overdue in our markets.

Going to the center to slide in our revenue by product in Panama, our largest product by revenue on mobile and Pvp.

Fixed it's the smallest product area, but one of the fastest growing.

Q1, all of our products in Panama showed growth with fixed and PDP, performing particularly strong it grew 6% and 7% respectively.

<unk> typically starts the year slowly after the seasonal peak in Q4, however growth in mobile services and customer contract rents in the period drove a positive year over year result.

Despite the decline in prepaid customers mobile revenue was also higher year over year.

Finally to our integration update outlining the lower right of the slide we remain focused on integrating the collateral Panama operations. Following the lifting of restrictions in January .

Made good initial progress as we work to combine customer facing aspects of the business such a stores brands and propositions. We are advancing the integration of our back office functions and we are consolidating infrastructure and benefiting from associated savings expanded coverage and capacity.

Next to slide seven and Liberty, Puerto Rico, our largest single market.

Starting on the left of the slide.

Our Internet net additions were in line with the prior year period, we continued to invest in the expansion and upgrade of our networks in Puerto Rico and anticipate that this together with our converged propositions will drive sustained growth.

We implemented price increases earlier, this year and seen de minimis impact on churn levels.

<unk> quality and propositions continue to resonate with customers turning to mobile we held our postpaid.

Postpaid base steady in the quarter continued to record low churn levels at around 1% a month.

In prepaid we lost subscribers, which was impacted by constraints, we have until the integration is complete.

Heavy subsidies to attract new customers and to retain existing customers have led to lower <unk> in the market and we may look to introduce price increases to help offset this impact moving to the incentive to slide <unk>.

Consumer mobile sat largest product in Puerto Rico, just under 50% of our revenue. This is followed by our fixed business, representing a third of the total and <unk> at 15% fixed revenue grew in the quarter. However, mobile was slower postpaid subscriber growth was offset by our <unk> and prepaid subscriber decline.

<unk> is a growth opportunity for us given our relatively underweight market share position.

The differentiated propositions, we are introducing exciting new products, leveraging our leading network capabilities at.

As an example, we recently launched our all based on connectivity solution where.

Customers network will run on fixed infrastructure by default. However, if that stops working to Youtube for example, a power outage.

More and more seamlessly switch to the mobile network to keep a customer connected.

Finally, Dr integration updates on the lower right of the slide integrations significant focus for us in Puerto Rico, and we are now entering the latter stages of the process.

Of note our team is beginning to bring existing and new prepaid customers onto our network and platform a key milestone will be when we start to migrate postpaid customers in the fall.

Turning to slide eight and Liberty Costa Rica.

Starting on the left of the slide our Internet subscriber base remained stable in the quarter, but additions in line sequentially.

And mobile.

Market, leading business continued to grow adding 15000 postpaid subscribers in the quarter.

The launch of Liberty total FMC bundle in March is expected to drive at and improved churn rates across Internet and mobile moving.

Moving to the center of the slide consumer mobile is our largest product with close to 60% share of revenue. This is.

Followed by our consumer fixed business, representing just under that.

And then a small but fast growing BTB operations.

<unk> and <unk> drove revenue growth in Costa Rica year over year.

We see potential for sustained growth in our <unk> operations SPF currently underway in this area and can leverage products propositions and capabilities from other parts of elevate to differentiate our offering in Costa Rica.

We also plan to take price increases in fixed this quarter.

We anticipate that the increased value of speed and better Wi Fi will make the price increase.

Finally to our integration update in the lower right of the slide we anticipate 2023 will be the final year of integration activities related to Telefonica Costa Rica acquisition.

We are on track to deliver synergies anticipated at a full run rate levels from the end of the year.

Finally to slide nine and the <unk> network in Latam segment.

Starting with wholesale on the left hand slide side.

Where we grew revenue by 4% in the quarter.

Running through the highlights.

Our 80% of revenue and cash flow is denominated in U S dollars, making the business very stable and predictable.

We have a unique mesh network across the region with multiple points of redundancy include.

Including the lowest latency connectivity from Colombia to the U S and.

Enabling us to provide comprehensive connectivity solutions.

<unk> continued to increase our capabilities recently moving to 400 gigabit wavelength technology for use terrestrial networks Interconnecting Latin America.

Key U S data hubs and.

In the center of the Slide you can see the wholesale accounts for most of their revenue within approximately 75% share.

Although a smaller part of this reporting segment, our Latam <unk> business is one of the fastest growing areas across our group with.

With revenue up 12% in Q1.

On the right of the slide we provide some more color on this area.

You chose two different major product groups within our <unk> business. The largest element remains connectivity. However, the highest growth areas value added and managed services, which include cloud based data center solutions disaster recovery as a service and cyber security solutions among others.

We expect to value added services area to continue strong growth trajectory, representing a larger share of <unk> revenue over time as customers look to increase the sophistication of your it platforms and products with that.

I'll 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, <unk> before I begin as a reminder, we deconsolidation our Chilean business at the start of Q4 2022. So our reported results in 2023 will not include the operating results of ETR for Q1, we delivered consolidated revenue of $1 1 billion reflect.

And a $59 million increase over Q1 2022 after excluding the $171 million of revenue generated by <unk> in the prior year quarter, we produced modest rebased revenue growth of 1% in the quarter, our operating segment of <unk> networks in Latam, <unk>, Panama and Liberty Costa Rica.

Were our strongest performers with mid single digit Rebased revenue growth without being said CDW Caribbean also had a good quarter, but as we reported revenue was impacted by a business decision to discontinue our legacy noncore <unk> voice transit arrangement in Q1, which accounted for about $10 million of quarterly revenue.

Although this will impact our revenue comparable all year, it will not adversely impact our adjusted OIBDA or FCS as this arrangement was currently anticipated to be slightly loss, making.

Next moving to adjusted OIBDA, we posted $407 million in Q1, resulting in a $17 million reported increase over Q1 2022, excluding the $47 million generated by <unk> in the prior year quarter.

Our rebased growth of 4% was driven largely by Costa Rica, Panama and CDW Caribbean as we posted our best Rebased growth result in six quarters for 2023, we are targeting mid to high single digit Rebased adjusted OIBDA growth for our way. However, we expect growth will be somewhat muted in Q2 due in part to.

Our comparative in Puerto Rico, and we expect the lion's share of our adjusted OIBDA growth to be significantly weighted to HD.

Slide 12 highlights our key segment results beginning on the left with <unk> Caribbean, We reported $354 million of revenue in Q1, reflecting a 1% rebased decline and $140 million of adjusted OIBDA, resulting in 8% Rebased growth.

The discontinuance of the aforementioned transit arrangement drove our Rebased top line decline, while the remainder of the business reported Rebased revenue growth on this basis. Our primary driver of growth was through residential mobile consisting of service revenue expansion led by our postpaid efforts and higher inbound roaming.

Our strong adjusted OIBDA Rebased growth was largely fueled by Jamaica and improved operating leverage across many of our islands.

We finished the quarter with a margin of nearly 40% up significantly as compared to the prior year quarter.

Moving to cable and wireless Panama, CWT contributed $165 million of revenue and $44 million of adjusted OIBDA in Q1, reflecting 4% Rebased revenue growth and 16% Rebased adjusted OIBDA growth.

As an aside our results move lower in Q1 from Q4 due in large part to the seasonally strong Q4, we experienced in <unk> and which is typical for us.

Rebased top line growth was delivered by all three business categories residential fixed residential mobile and <unk> with our strongest year over year growth derived from B to B, which was driven by growth in mobile services and an increase in the volume of certain government related projects and residential fixed which was helped by over 50000 <unk>.

Over the last year.

Adjusted OIBDA grew double digits in Q1.

Was our best quarterly result, since 2021 this year over year expansion has been helped by our value capture activities from the Claro Panama integration.

Turning to the Middle column CW networks in Latin America, we generated $109 million revenue or 6% rebased growth and $64 million and adjusted OIBDA or 4% Rebased growth Rebased revenue growth within our subsea network was as a result of higher lease capacity Latam <unk> service revenue.

Also expanded through higher connectivity and managed service revenues. We ended Q1 with an adjusted OIBDA margin of 59% for the quarter.

Second from the right Liberty, Puerto Rico, Q1 revenue was $366 million, reflecting flat year over year, Rebased growth and a decline of $8 million from Q4, which is due largely to higher equipment sales during the holiday period.

Residential fixed garnered modest growth on the back of volume gains during 2022.

In residential mobile decreased year over year as higher handset sales were not able to offset lower <unk> and a decline in prepaid and we sell our mobile subscribers.

Sequentially, our mobile service revenue and <unk> were stable adjusted OIBDA increased substantially from Q4, as we delivered $134 million in Q1, which reflected a rebased decline of 4% as compared to Q1 2020 to several factors contributed to the year over year decline, including a lower net.

<unk> from roaming and higher operating costs. These were partly offset by lower direct costs falling credits received in Q1 2023 related to historical equipment purchases.

Wrapping up with Costa Rica on the far right. We delivered Q1 revenue of $129 million and adjusted OIBDA of $45 million, reflecting strong rebased revenue growth of 4% and Rebased adjusted OIBDA growth of 28% revenue growth was driven to a large extent by our mobile operations as we have added over 80000 postpaid subscribe.

Over the last 12 months.

Supported in part by our revenue growth adjusted OIBDA expanded significantly year over year and benefited from lower integration spend and a year over year strengthening of the Costa Rican colon to U S. Dollar as we have certain costs in areas like programming that are denominated in U S dollars.

Slide 13 highlights our results for <unk> additions and adjusted FCS and reiterate our 2023 outlook on these metrics for the first quarter, we incurred $145 million of <unk> additions or 13% of revenue, we built and upgraded 90000 homes in the quarter led by active.

In the Caribbean in Panama during the quarter, we incurred about $9 million of integration Capex largely in Puerto Rico, and expect integration capex to remain elevated throughout the year.

Finally, we remain on track to deliver our 2023 target of 16% of revenue, Hence we will see ramping of our spend over the next three quarters.

In terms of adjusted free cash flow, we posted negative $50 million in the quarter similar to our reported level of negative $56 million of adjusted Mcf in Q1 2022.

As a reminder, first quarter tends to have heavier trade working capital requirements and our interest expense tends to be higher in Q in Q3 due to timing of payments, we expect our adjusted Mcf before partner distributions to be substantially weighted to H, two, especially Q4 and we remain on track to deliver.

Our $300 million target in terms of partner distributions were expecting about $40 million to be paid out to our partners in Q2 in Panama and Bahamas with nearly similar amount upstream to us at <unk> to then be redeployed.

Turning to slide 14 at the end of Q1 on a consolidated basis, we had $8 billion of total debt $700 million of cash and $1 billion of availability under our revolving credit lines. We have gross leverage of four nine times and net leverage of four five times, which was slightly improved versus Q4 2000.

22, and our weighted average life was five years and our fully swapped borrowing rate was just under 6%.

During Q1 and as we briefly highlighted on the Q4 call. We refinanced our coastal leak into 2020 for term loans with $450 million of new debt maturing in 2031. This credit silo is currently levered at two five times this transaction combined with a $25 million purchase of our convertible.

Bonds due in 2024 that we made in the quarter results in 95% of our debt due in 2027 or later.

In terms of our stock repurchase activity, we bought $25 million in Q1 and at March 31, we had $32 million remaining under our authorization as a result of continued business performance tracking to expectations in particular, our cash generation and the attractive level of our stock our board just authorize.

As an additional $200 million through December 31, 2025 movie.

Moving to the final slide to recap, we maintained solid broadband in postpaid subscriber volumes in Q1 as well as continued our positive <unk> trajectory our volume growth over the last year has enabled us to maintain topline performance even in light of softer global macro trends and some <unk> compression as.

We begin to selectively start using price increases more strategically together with an increasing focus on FMC bundles and enhanced customer value propositions. These activities should help support our revenue ambitions as highlighted on previous calls integration execution is a primary focus for both our corporate and local operator.

Teams. The next three quarters are critical for us as we seek to deliver our value capture goals and be less reliant on the sellers of our acquired businesses in Puerto Rico, Costa Rica and Panama.

Turning to capital allocation, we channeled $50 million into equity in Q1 through both our buyback activity and retirement of a portion of our convertible bond we will remain disciplined in our repurchases, but given our operating goals and our low stock price. We believe this is a highly accretive window for us to be opportunistic and our.

The buyback authorization support that activity and.

And finally, we remain confident in delivering on our adjusted OIBDA Capex and free cash flow targets for 2023 with that operator, please open it up for questions.

A question and answer.

Question will be conducted electronically.

We would like to ask a question regarding the company's operations PTC by pressing the star.

Key followed by the one on your Touchtone telephone.

Order to accommodate everyone. We request that you ask only one question with one follow up.

If you are using speaker phone please make sure your mute function.

To allow your signal.

Well of course.

One is an opportunity to pick it up for questions.

Okay.

Our first question today comes from Jeffrey.

From pivotal Research group. Please go ahead Jeffrey your line is now open.

Yeah.

Good morning, I had a couple on Puerto Rico I was wondering how the TSA migration process is going initially.

Is there a disruption for customers from that process and do we assume that most of that $30 million in integration costs. This year.

As related to the fact that Youre operating under a TSA and then you're building out your own network and so Thats what goes away next year, and then I'll follow up.

Good morning, Jeff.

Thanks for the question.

And I'll ask <unk> to jump in here in a second as well. The TSA migration is has started when we started on the <unk> side of our business.

It's going pretty well there are disruptions to customers. However, in both the prepaid and postpaid.

Because there are certain handset that just work.

Just one operate on our new network and some of the really older headsets with older operating systems. So we didn't want to two things.

Having customers come into our stores and we update the software for them.

We are offering also opportunities for them to change out headset. So thats really one of the big friction and the migration, but the systems.

Cited up that network is functioning through the network the same for prepaid and postpaid network or it's already up and running.

And the work is progressing really well on the integration cost, yes somewhat caused.

A lot of the costs do go away next year the costs that we paid.

AT&T as well as cost.

Not being for our licenses already on our new stack and the.

The overlap this year.

Part of it does.

And 19, you want to add anything to that.

Sure Good morning, Bob Good morning Jeffrey.

In terms of our customer migration for the most of them. The majority will be completely seamless and for the route through that you had mentioned will require some sort of intervention.

Dr. <unk> is a very low percentage.

The plan is.

We started already some prepaid and postpaid will start shortly.

Image too.

And then I guess this is for any of your markets.

Sure are there any signs of.

<unk> emerging Puerto Rico or any of your other markets and then as a wireless operator is SWA potentially interesting for you is sort of a sell in for your footprint or maybe like a fixed mobile offering.

After really hasnt really taken off in our markets for a number of reasons one.

The most of our networks everywhere on the fixed side is very strong.

Not only on their books at a competitive networks as well so.

In almost every market.

The fiber player or HFC play a combination of both and our competitor has some somewhat something similar so <unk> would struggle and almost everywhere, Unlike United States mainland.

Ubiquitous coverage, so theres no real pockets for somebody to go exploit FW.

No.

<unk> in the few cases, but remember it is very it is a huge spectrum hug.

And right now I'll focus on our spectrum is really on our mobility services, but there will be some niche cases on it and it worked for us because we have scale and so it's just fill in but.

If you're a business with just the Standalone <unk> business, it's going to be pretty hard.

Got it thank you.

Thank you. The next question comes from Steve that Medina from Morgan Stanley . Please go ahead. Your line is now open.

Hi, Thanks for taking my call I have two questions. The first one is.

Have a very positive surprise on the margin for Costa Rica.

Certainly way ahead of our expectations.

This new level of margin please.

And then second.

To the extent that you can provide a high level color.

Any comments on your joint venture.

In Chile, and the overall state of competition, how is competition on Chile evolving after the joint venture. Thank you.

Sure.

Let me answer the Chile question, I will get to the Costa Rica after that and I'll ask my colleague.

<unk> to also jump in here on the Costa Rica.

Gili.

We have actually a very strong and good partner there in Chile.

And we've learned.

A lot from them I think they've learned from.

This as well.

If I look at Chile, that's a lot of good news.

One the <unk> spectrum that we were able to transfer a three five gigawatts a big deal for US a lot of that.

A lot of.

Really good opportunities in mobile we see the upside in Chile on mobile mobile pricing.

Our penetration is pretty low so.

The teens, but so we should grow that and we think there'll be stability in the fixed business as well.

Fixed <unk>.

And so we feel.

Good.

Structural problems in Chile make no mistake.

The rationale for us to do that transaction even stronger.

And the synergies are already starting to come in our local management team has done a really good job. So all in all Chile.

I think.

The jury is still out but.

And the.

The synergies once they start getting fully.

Leveraging some of the other opportunities I think it's going to be a good story.

Due to Costa Rica.

Thing on Costa Rica is some of the margin expansion. It's also driven by synergies, which as I indicated on my comments earlier that comes to an end. This year. So if you want to have that repeat again next year.

And then I'll ask my colleague.

Guillermo.

If any other color you want.

Jim.

Thank you <unk>.

Thank you Steve.

As you pointed out.

We're still being benefited from synergies and we will continue to flow throughout the year also.

Great.

In the comparison with last year.

The third element is that we continue to grow.

As you pointed out in the beginning of your presentation, we just launched Alere teetotaler FMC.

Our proposition and we're very bullish about it.

Prospect, both in fixed and molded continue to push the growth in the market in which we have demonstrated to have leadership both in pick the moment.

We're optimistic about.

Thanks Guillermo.

And I'll add.

As our I mean, I think that the margin was quite good in the quarter and certainly our expectation would be.

Continue to improve on that as we go out.

Yeah.

Thanks, Chris.

Okay.

Next question comes from Sumit Datta from New Street Research. Please go ahead. Your line is now.

Alright got it.

A couple of questions.

Can I please.

We are all on pricing.

I think you talked about lithium prices in Costa Rica in Q I had that correctly.

There's talk of strategic price lift elsewhere I'm not sure if that includes Puerto Rico, but I guess, just stepping back a little bit it feels like maybe you're more willing to entertain price increases.

In the past.

Just wanted to ask you kind of concur with that view and if so I wonder who has kind of changed in terms of dynamics over the ground.

That's the first question I do have a quick follow up if that's okay.

Hello Sumit.

Sure.

I think this year, what we are trying to do is perhaps just exercised a muscle it's a bit on price increases we haven't done a price increase in a few years.

And we wanted to.

Do some very modest and they are really very modest price increases to see how the market reacts as well.

For us to get our commercial team all set for at some point in the future we will do.

More traditional price increases no make no mistake, our focus is still on volume.

And we grow this business with the Q side of it and we take some fees, where we can so the way we focus on b.

For the record we've done on the fixed side of the price increase I kind of indicated we may do something on the postpaid mobile as well and the fixed price increase that we took very modest.

It was really actually.

Pretty much unnoticed in the market.

And in Costa Rica, we will take price increase this quarter also very very minimal in the cable and wireless business as well as in our Panama business, we're looking at prepaid price increases and selectively in certain areas some fixed price increases as well I think.

This year, it's really.

The market a little bit testing ourselves a little bit how we would do is get our processes on price increases back on track.

And.

But I think the market is ready.

Customers like I said for two three years three years now we've not taken any price increases.

And I think.

Can I appreciate a lot of the product improvements as well I mean, nobody likes price increases but.

Certainly people award like price increases when they don't get anything for it but we've increased speeds consistently over the last three years.

Better PPE products.

And then introducing a minor price increase its lending pretty well.

Okay great.

I guess, perhaps related to that.

On Puerto Rico on the wireless side.

The service revenues in wireless.

Look to have stabilized in the first quarter I think there is a little bit of.

Im sort of funny around the accounting there.

Little bit of uncertainty around some of the accounting issues, but in principle do you think you've been through some of the worst of.

Of the pricing pressure.

On wireless in Puerto Rico, and again, Youre talking a bit about price increases so it sounds like that might help ofer.

Yes, I think so I think in in.

In Puerto Rico, the price decline some of it as you pointed out this accounting because of this.

And the amortization of the handsets built into the <unk> that you see the price that our customers see but in the <unk> that we.

To be sure in our reporting has some adjustments made for it.

For a portion of the subsidized devices and I'll tell you. The subsidized devices is what caught us by surprise because we did try to match everybody during the holidays last year coming into January of this year.

Subsidies for handsets, both on retention and acquisition.

It was quite successful.

However, having said that that also meant we were writing a lot of checks for devices and.

Accumulating debt into the ARPA as well and so my colleague Puerto Rico NRG. This quarter. This last quarter started this throttled back some of the <unk>.

Subsidies.

<unk>.

And Youll start seeing more.

Stability in the in the reported <unk>.

And then like I indicated we are contemplating a price increase on the postpaid side.

Not too different than what the mainland wireless operators are doing.

Okay. Thank you.

Yes.

Yeah.

Thanks, Amit.

Thank you. Our next question comes from Kevin based on <unk> equity Research. Please go ahead, Kevin Your line is now open.

Thank you and good morning.

Paul on a few questions on cable and wireless Caribbean.

Could you update us on the competitive landscape there in postpaid and in residential broadband and how are you thinking about.

Macro economic pressure potentially impacting that business as we go through the next months and quarters.

Sure.

I'll ask my colleague to jump.

Jump in here as well, so we feel really positive about.

Caribbean business for a few reasons one a lot of the economy is coming back by the way, it's not coming back to where it was pre.

Corporate so youll see cruise ships coming back, but it's still a fraction of where it was in 2019, but they'll back but occupancy rates are still going to 60% range as opposed to the 80% range pre COVID-19. So.

So there's still upside yet to come.

As the economy fully recovers.

Uh huh.

<unk> and her team.

Together with my other colleagues in this business.

Launch a couple of things one we've been really focused since colgate on taking cost out and you'll see the margin expansion tier one both on the Cogs side as some of you have noticed our Cogs.

Improved it's a really good work being done by the team.

On the programming side on the commercial side that took quite a bit of cost out.

And secondly.

Our commercial teams have also launched some very innovative FMC products that have moved some of our prepaid customers up to postpaid.

So I think in many cases, it's a duopoly in a lot of these.

Islands.

Our competitor Digicel is.

It is quite.

Think motivated like this you create value and when you have two competitors that are looking to create value and providing good service to their customers I think everybody wins and Thats what were seeing right now in the post Covid world.

And the anger is.

As my colleague that run that business in Alaska to jump in here to provide a bit more color inger.

Hey, Thank you Bella Hi, Kevin.

Following.

We really see.

I know there might be a few items, which are not yet.

Political thing but.

To even recover more.

Our balance sheets.

<unk> for me.

Yes.

And not yet on the level of before coming back again, making positive progress and you can see that when you're in the islands you can really feel that uptick so I think from a macro point of view.

I think it will only go it will only improve from a competitive point of view like balance that we have a very.

Good competitor in the Caribbean and our focus is two fold one really understanding every dollar we spend how can we get the best return and second.

Every single aspect of our business, whether it is in mobile whether it seeks to FMC will be to be done quite well can be to be on the F&B segment, we launched very dedicated.

It positions and also while it would be to be segmented locked in the prices actually also do really well so.

Overall by having the right propositions with the right cost structure that we believe we are in very good shape for the coming quarters.

Bob.

Thank you Inger.

That's helpful.

That's super helpful. Just a quick follow up if I may.

Alan broadly looking across your footprint.

Are there any new regulatory.

Elements or risks, we should be monitoring.

Yes.

Well.

When it comes to the regulatory issues, we are always Dennis.

We have a pretty strong team led by John Winter My General Counsel.

Rich we constantly monitor.

All the different puts and takes I think the thing that we.

We probably really focused on right now is <unk> spectrum.

And at what point do the spectrum become available the method on how governments.

Governments want to distribute the spectrum.

What are the local posture would be that's probably the big one.

Or the government.

In areas that we operate in.

<unk> friendly.

Of course.

Sure.

Obviously.

Elected by the <unk> and they have to.

He did that need as well, but they are mostly very business friendly.

My leadership team.

<unk> has spent a lot of time with respective politicians in the different areas and we've built quite a good relationship and honest relationship I would say, we don't go into asking for anything.

But but.

But we want to make sure that they know that <unk> for.

For the communities, we care for the country.

Economic growth for them.

And I think they see it the same way as well so regulatory wise, yes, we are.

It's always open but nothing.

In the horizon that would worry me at all.

Got it thank you Bob.

Thanks, Kevin.

Thank you. Our final question today comes from Matthew Harrigan from Benchmark. Please go ahead Matthew Your line is now open.

Well. Thank you Paul I was curious if you could comment on what you see structurally.

Video market.

Thank you.

What's happened to your in house premium product.

PPE costs, and certainly that could be attractive.

Third market.

Middle income demographics.

It also feels like.

Paul.

Mostly focused on that.

Also in Mexico right now.

Yes.

What maybe lagging or falling out a little bit right now.

Sure. So we'd just be curious in terms of what youre seeing.

So the consumer preferences and how it was working for you other than really fast right.

Demand for broadband at higher speed broadband thank you.

Hey, Matt.

You are breaking up a little bit so im going to answer the question that I had but you tell me if that's a question that you asked.

And on the video side.

But I think there's two parts to the video and.

One.

We have defensive play.

Place, where we are.

D video provider and Thats really part.

Puerto Rico, and Costa Rica, where we the cable company.

It has been defensive for a while until recently, where we've kind of affirmed a few opportunities just because some of our competitors are retreating from the video business are not investing in that so we've seen some stability like the United States, where you see the massive.

Drops in video subscriber base, so you see more.

Liberty Latin America Ltd. Q1 2023 Earnings Call

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