Liberty Latin America Ltd. Q1 2023 Earnings Call

May 9, 2023

Both in Q1, adding 65000 subscribers across high speed fixed internet and mobile postpaid.

And to that additions were particularly strong in the quarter.

Led by improved performance in C and W. Caribbean.

The results reflect net additions at all of our reporting segments, providing a solid operational start to the year.

The group reported adjusted OIBDA of $407 million in the quarter.

This represented our rebased growth rate of 4%, which was in line with our expectations and keeps us on track to achieve our financial goals for the year.

Moving to our integration activities in Puerto Rico, Panama, and Costa Rica.

$23, a key which will set us up to deliver significant value for stakeholders.

Of note in the quarter, we begin to migrate prepaid customers to our newly built mobile platform in Puerto Rico.

Also moving quickly to consolidate our operations in Panama following the lifting of certain restrictions earlier this year.

Finally, I am pleased to announce that in line with our previously stated capital allocation strategy. The company is authorized an additional up to 200 million for share buybacks.

We continue to hold the view that the most compelling capital returns in our own company turning to slide five.

Begin our operating review Ritchie MW Caribbean.

I'm pleased to say that the economies in the regions are continuing to recover from the impacts of COVID-19, and this is reflected in our strong performance on the left of the slide represent our internet and mobile postpaid additions.

Internet additions continued to build in the first quarter as we added 11000, RG use representing a significantly improved performance.

Back to the prior year period.

Jamaica drove this improvement following the successful launch of our yards and road portions and FMC propositions.

Investments in our networks have also driven increased market penetration more than 80% of homes passed that CSW Caribbean now giga ready, meaning that they are capable of delivering broadband speeds of one gigabit per second or more.

In mobile we delivered another solid performance with 20000 postpaid subscriber additions, 33% higher than in the prior year quarter.

We continue to drive penetration of FMC products and FX signing plants through 2023.

In connection with our enhanced services and office, we have implemented nominal fixed servicing prepaid mobile price increases in select markets to reflect the added value being delivered to our customers.

In most cases these rate adjustments for several years without any increase.

Moving to the center of the slide and our revenue by product. The Pie chart depicts the well diversified <unk> Caribbean revenue with <unk> and consumer fixed the largest elements followed by consumer mobile.

Strong growth in mobile revenue during the quarter driven by subscriber additions over the past 12 months. However, this was more than offset by a decline in <unk> revenue due to a strategic change that Chris will cover in his remarks.

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 <unk> additions in Panama, showing healthy growth sequentially and consistent performance year over year, we launched DOCSIS three one and combined with our extensive fiber to the home office.

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

Expect that these 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 improved <unk> 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.

Moving to the center of the slide in our revenue by product and Panama.

Largest product by revenue on mobile and Pvp fixes.

<unk> is the smallest product area, but one of the fastest growing.

In Q1, all of our products in Panama showed growth with fixed and PDP, performing particularly strong 6% to 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.

Implemented price increases earlier, this year and seen de Minimis impact on churn levels as our network quality and propositions continue to resonate with customers turning to mobile we held our postpaid base steady in the quarter continued to record low churn levels at around 1% a month.

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.

In fact, moving to the incentive to slide <unk>.

Consumer mobile sat largest product in Puerto Rico with 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 due to for example, a power outage.

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

Finally got integration updates under lower rate of display integration 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 with 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 bundled 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 a consumer fixed business, representing just under a third and then a small but fast growing BTB operations.

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

We see potential for sustained growth in our <unk> operations Sps 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.

Despite 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.

We grew revenue by 4% in the quarter.

Running through the highlights.

Or 80% of revenue and cash flow is denominated in U S dollars.

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 that wholesale accounts for most of the 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.

Here shows 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 of 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 segments as CFW networks in Latam <unk>, Panama 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.

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.

The data 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 CFW 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 CW P 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> added over the last year.

Adjusted OIBDA grew double digits in Q1.

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.

And 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.

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.

That 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 needed.

If you're using a speaker phone please make sure your mute function.

To allow your signal.

Okay well.

So just.

Your line 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.

Good morning, I had a couple on Puerto Rico.

Was wondering how the TSA migration process is going initially is there disruption for customers from that process.

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.

Yeah.

Good morning, Jeff.

Thanks for the question.

And I'll ask you to jump in here in a second as well the TSA migration.

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.

There are certain.

Handset.

Just more.

Just one operate on our new network and some of the really older handsets with older operating systems. So we didn't want to two things, we having customers come into our stores and we update the software for them.

Our offering also opportunity for them to change out headsets.

That's really one of the big friction and the migration, but the systems.

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

The work is progressing really well on the integration cost, yes, somewhat the costs do go.

Lot of the costs do go away next year with constant repeat U.

AT&T as well as costs as we stopped paying for licenses already on our new stack.

The overlap this year.

Part of it does.

19, you want to add anything to that.

Yes, good morning, Bob Good morning, Jeffrey I would just add.

In terms of our customer migration for the most of them. The majority will be completely seamless and for the very few 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 in 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 <unk>, but a competitive networks as well so.

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.

<unk> coverage, so theres no real pockets for somebody to go exploit <unk> now.

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

<unk>.

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.

Very positive surprise on the margin for Costa Rica.

Certainly way ahead of our expectation how sustainable are these new level of margin. Please and then second.

And if 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.

Sure Hi, Susan.

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

To also jump in here on the <unk>.

Question on Chile.

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

Lynn.

A lot from them I think they've learned something from us as well.

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

One the <unk> spectrum, though we were able to transfer a three five gig that was a big deal for us a lot of.

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 when we think there'll be stability in the fixed business as well.

Fixed <unk>.

And so we feel.

Good, but theres still 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.

The jury is still out but.

And the.

The synergies once they start kicking fully levered.

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

Due to Costa Rica, one 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 we won't have that repeat again next year.

And then I'll ask my colleague.

Guillermo.

If any other color you want.

<unk>.

Yes, Thank you <unk> and thank.

Thank you Steve.

As you pointed out.

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

<unk> is helping 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 Libre two total RMC Brooke.

The acquisition and we're very bullish about it.

Prospect, both in fixed and molded continued to boost 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.

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 seeing that data.

<unk> 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.

<unk> strategic price lift elsewhere out and not sure if I can.

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.

I just wondered if you kind of concur with that view and if so I wonder who has kind of changed in terms of dynamics over the ground.

The first question I 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 due 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 <unk> side of it and we take some fees, where we can so the way we focus on b.

In Puerto Rico, 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.

Pretty much on notice 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 it get our processes on price increases back on track.

But I think the market is ready.

And other customers.

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 fully around the accounting there.

Little bit of uncertainty around some of the accounting issues, but.

<unk> 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 also.

Yes, I think so I think in.

Puerto Rico the price.

Declined some of it as you pointed out this accounting because of this.

And the amortization of the handset built into the <unk> that you see.

Price that our customers see but in the <unk> that we show in our reporting.

Some adjustments made for it to account for a portion of the subsidized devices and I'll tell you the subsidize devices, what caught us by surprise because we did try to match everybody in during the holidays last year coming into January of this year on subsidies for handsets, both on repeat and retention.

Acquisition.

And it was quite successful however, having said that that also memory, we're writing a lot of checks for devices.

Accumulating veteran to VR, who as well and so my colleague, Puerto Rico and <unk>. This quarter. This last quarter instead of the throttle back some of the subsidies.

And Youll start seeing.

Most ability in the MBA reported our crew.

And then looking at indicated we are contemplating a price increase on the postpaid side.

Not too different than what the mainland wireless operators separately.

Okay.

Okay. Thank you.

Yes.

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.

Following 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 and I'll ask my colleague and go to 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 going back to where it was pre.

Colgate, 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.

Phil upside yet to come.

The economy fully recovers.

No.

<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 costs out and you'll see the margin expansion tier one both on the Cogs side as some of you have noticed Cogs has improved it's a really good work being done by teams both on the programming side.

On the commercial side.

Quite a bit of cost out.

And secondly.

Our commercial teams have also launched some very innovative.

<unk> products that have moved some of our prepaid customers to postpaid. So I think in many cases, it's a duopoly in a lot of these.

Islands and our.

Our competitor Digicel is quite.

I 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 a post COVID-19 world.

And the anger.

As my colleague that runs that business and I'll ask you to jump in here to provide a bit more color inger.

Hey, Thank you Bella Hi, Kevin.

Let me think about that.

We really see.

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

Political thing, but there is room to even recover more and active balance cruise ships call me repeat it.

And.

<unk> not yet on the level of before coming back to me and 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.

Volunteers.

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

Every single aspect of our business Liberty BT mobile whether it seeks to FMC will be to be done quite well can be to be on the SMB segment, we launched very dedicated.

Positions and also <unk>.

Pigment and locked in the prices actually also do really well so.

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

Bob.

Thank you Inger.

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

Collyn broadly looking across your footprint.

Are there any new regulatory developments 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 probably really focused on right now is <unk> spectrum.

And at what point do the spectrum become available the method on how these governments want to distribute the spectrum.

What.

Local posture would be that's probably the big one.

Most of the governments.

Areas that we operate in.

Business friendly.

Of course.

Obviously.

<unk> elected by devoted and they have to.

Does that mean that as well, but they are mostly very business friendly.

My leadership team.

<unk> spent a lot of time with respect to 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 wanted to make sure that they know that.

For the communities, we care for the country of engine of economic growth for them.

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

It's always open but nothing.

In the horizon that.

For EMEA.

Got it thank you Bob.

Thanks, Kevin.

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

Okay.

Well thank you Paul.

If you could comment on what you see structurally.

Latin.

Mark.

Thank you.

What's happening here in house with streaming product.

CPE cost and certainly that could be attractive.

<unk> markets and certainly for our Middle income demographics, and then also for your question.

Paul.

Mostly focused on.

U S and Mexico right now it feels like.

Alright.

Maybe lagging or falling out a little bit right now.

Sure.

In terms of what Youre seeing in terms of the consumer preferences and how it was working for you other than really fast.

Demand for broadband at higher speed broadband thank you.

Hey, Matt.

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

And on the video side.

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

One.

We have defensive plays.

Plays where we are.

D video provider and Thats really both.

Puerto Rico, and Costa Rica revenue 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 I'm 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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