Q2 2023 Liberty Latin America Ltd Earnings Call
Good morning, ladies and gentlemen, and thank you for standing by today's call is being recorded I'll now turn the call over to Steven price country manager of Jamaica.
Speaker 1: ladies and gentlemen and thank you for standing by. Today's call is being recorded. I'll now turn the call over to Stephen Price, Country Manager of Jamaica.
Speaker 2: Good morning and welcome to Liberty Latin America's second quarter 2023 infesticle.
Good morning, and welcome to Liberty Latin America's second quarter 2023 Investor call.
Speaker 3: At this time, all participants are in listen mode only.
At this time, all participants are in listen mode only.
Speaker 3: Today's formal presentation materials can be found under the investor section of Liberty Latin America's website at www.lele.com.
Today's formal presentation materials can be found under the investors section of Liberty Latin America's website at Ww dock and Lilly Dot com.
Following today's formal presentation instructions will be given for question and answer session.
Speaker 3: Following today's formal presentation, instructions will be given for question and answer sessions.
Speaker 2: As a reminder, this call is being recorded and will be available under the investors section of our website.
As a reminder, this call is being recorded and will be available on the investors section of our website.
Speaker 3: Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook and future growth path.
Today's remarks May include forward looking statements, including the company's expectations with respect to its outlook and future growth prospects and all the information and statements that are not historical fact.
Speaker 3: and other information and statements that are not historical facts.
Speaker 3: Actual results may differ materially from those expressed or implied by these terms.
Actual results may differ materially from those expressed or implied by these statements.
Speaker 3: For more information, please refer to the risk factors discussed in Liberty Latin America's most recently filed report on Form 10-K and the quarterly report on Form 10-Q most recently filed with the SEC along with the Associated Press Release.
For more information.
Please refer to the risk factors discussed in Liberty Latin America's most recently filed reports on Form 10-K, and the quarterly report on Form 10-Q.
Most recently filed with the SEC.
Along with the associated press release.
Speaker 3: Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based.
Liberty Latin America disclaims any obligation.
Any forward looking statements or information to reflect any change in its expectations or in the conditions on which any such statements or information as east.
In addition on this call we will refer to certain non-GAAP financial measures.
Speaker 2: In addition, on this call, we will refer to certain non- GAAP financial measure.
Speaker 3: which are reconciled to the most comparable GAAP financial measures, which can be found in their penises to this presentation, which is accessible on the Investors section of World Web.
Which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible on the investors section of our website.
Speaker 3: I would no like to turn the call over to receive you Mr. Ballonair.
I would now like to turn the call over to our CEO Mr. Bolan there.
Thank you Steven and welcome everyone to Liberty Latin America's second quarter results presentation.
Speaker 4: Thank you, Stephen, and welcome everyone to Liberty Latin America's second quarter results presentation.
Speaker 4: I'll begin with our group highlights and an overview of our operating results by reporting segment. Chris Neuys, our CFO , will then follow with a review of the company's financial performance. After that, we will get...
I'll begin with group highlights and an overview of our operating results by reporting segment Chris.
Chris Noyes, our CFO will then follow with a review of the company's financial performance.
After that we will get straight to your questions as always I am joined by my executive team from across the region and I will invite them to contribute as needed during the Q&A. Following our prepared remarks, that's a point of housekeeping.
Speaker 4: As always, I am joined by my executive team from across the region, and I will invite them to contribute as needed during the Q&A following our prepared remarks.
Speaker 4: at the point of housekeeping. We will both be working from slides, which you can find on our website at www.lla.com. Starting on slides.
We will both be working from slides, which you can find on our website at www Dot <unk> Dot com.
Starting on slide four.
Highlights for the second quarter.
Speaker 4: We continue our operational momentum with another solid quarter in broadband and mobile pushppe. Adding 52,000 subscribers to our
We continued our operational momentum with another solid quarter in broadband and mobile towards be adding 52000 subscribers to our base.
Speaker 4: another quarter of solid performance in cable and wireless Caribbean, especially Jamaica, and in cable and wireless Panama.
Another quarter of solid performance in cable and wireless Caribbean, especially Jamaica and in cable <unk> wireless Panama.
Speaker 4: The positive results are driven by our focus on FMC with a 2 percentage point increase in penetration in both Jamaica and Panama in the first half of 2021.
Positive results are driven by our focus on FMC with a two percentage point increase in penetration and both Jamaica and Panama in the first half of the year.
We are the leading growing fixed Archie used and one of the top and broadband growth among Latam and North American operators.
Speaker 4: We are the leading girl in fixed RGUs and one of the top in broadband growth among Latin and North American operators.
We have also made substantial progress with our <unk> initiatives.
Speaker 4: We have also made substantial progress with the GIGANET initiative.
Speaker 4: 77% of our home space are currently gig ready. A 9% each point increase versus Q420.
77% of our homes passed are currently get ready a nine percentage point increase versus Q4 'twenty.
Speaker 4: And the goal is to reach 80% of the base by the end of this year.
And the goal is to reach 80% of <unk> by the end of this year.
Speaker 4: Reveal reported adjusted Oybeda of $445 million in the quarter for the group representing a 4% year over year in
We reported adjusted OIBDA of $445 million in the quarter for the group, representing a 4% year over year increase.
Speaker 4: This is underpinned by 1% year over year, rebase revenue growth. Adjusting for the discontinuation of the slightly negative margin transit business as discussed last quarter.
This is underpinned by 1% year over year Rebased revenue growth adjusting for the discontinuation of the slightly negative margin transient business as discussed last quarter.
Speaker 4: sequentially, our Q2 adjusted or with our group by 10% reflecting positive financial moments.
Sequentially, our Q2, adjusted OIBDA grew by 10%, reflecting positive financial momentum.
Speaker 4: These are some of the best numbers among telecom operators for the quad.
These are some of the best numbers among telecom operators for the quarter.
Speaker 4: In addition, our OEB RAM margin is now at 40% with operating leverage as shown by the revenue and OEB RAM.
In addition, our oil.
OIBDA margin is now at 40% with operating leverage as shown by the revenue and EBITDA growth.
Speaker 4: We made significant steps forward in our equity buyback. We purchasing 132 million across our equity and convertible bond in the quality.
We made significant steps forward in our equity buyback.
Repurchasing $132 million across our equity and convertible bonds in the quarter.
Speaker 4: Since the beginning of the year, we have repurchased 82 million of shares and reduced the convert outstanding amount by quarter with the balance currently below 300 million.
Since the beginning of the year, we have repurchased $82 million of shares and reduce to convert outstanding amount by quarter with the balance currently below $300 million.
Finally, our integration work has continued to move forward with Costa Rica, now close to finalize and Panama in Puerto Rico progressing well.
Speaker 4: Finally, our integration work has continued to move forward with Costa Rica now close to finalize and Panama and Puerto Rico progressing.
Speaker 4: In Puerto Rico, a new 5G mobile core and IT stack of operations.
In Puerto Rico, our new <unk> mobile core and Ikea stack operational.
Speaker 4: We have already migrated 35,000 prepaid tests.
We have already migrated 35000 prepaid customers, representing a quarter of debase.
Speaker 4: representing a quarter of the base and we have started migrating the fist post
Started migrating to postpaid customers.
Speaker 4: We are working with leading global supplies such as Salesforce and Ericsson to create cutting-edge infrastructure for the market.
We are working with leading global supplies, such as Salesforce and Ericsson to create cutting edge infrastructure for the market.
Turning to slide five.
Speaker 4: I'll begin our operating review with Kibble and Wireless Corrupt.
I'll begin our operating review with cable and wireless Caribbean.
Speaker 4: The solid rebound of tourism in our islands continued in Q2, continuing the trend we observed in Q1 and sporting the segments performed.
The solid rebound of tourism in our islands continued in Q2, continuing to trend we observed in Q1 and supporting this segment's performance.
Speaker 4: On the left of the slide, we display our internet and mobile post-pay the dish.
On the left of slide we display our internet and mobile postpaid additions.
Speaker 4: Internet additions of 7,000 compared positively year over year representing an increase of nearly 70
Internet additions of 7000 compared positively year over year, representing an increase of nearly 70%.
Speaker 4: The main contributor was Jamaica. However, a homicide is the fastest growing market in percentage terms with 7% of subscriber growth sequentially and 15% since the beginning of the year.
The main contributor was Jamaica.
However, bahama system fastest growing market in percentage terms with 7% subscriber growth sequentially and 15% since the beginning of the year.
Speaker 4: The good performance in mobile with 16,000 post-bate ads this quarter was mainly driven by Jamaica Rail continued focus on FMC and post-bate product despairing.
The good performance in mobile with 16000 postpaid adds this quarter was mainly driven by Jamaica rail continued focus on FMC and pulse b product is bearing fruit.
Speaker 4: across fixed and mobile, we implemented strategic price increases in several markets, which have landed this plan with no material impact to China. Moving to the center.
Across fixed and mobile we implemented strategic price increases in several markets, which have landed this plan with no material impact in June .
Moving to the center of the slide and our revenue by product.
Speaker 4: pie chart here depicts the world diversified nature of Kibble and Wiles Caribbean's revenue. With B2B and consumer fix, the largest elements followed by consumer mobile.
The Pie chart here depicts the well diversified nature of cable and wireless Caribbean revenue with <unk> and consumer <unk>, the largest elements followed by consumer mobile.
Speaker 4: We reported sequential growth in both mobile and fixed subscription revenue driven by both volume and R.
We reported sequential growth in both mobile and fixed subscription revenue driven by both volume and <unk>.
Speaker 4: year-over-year rebase revenue growth was flat in the quarter, adjusting for the discontinuation of the transit business, this would have been 280 basis points high.
Year over year Rebased revenue growth was flat in the quarter adjusting for the discontinuation of the transit business. This would have been 280 basis points higher.
Speaker 4: Organic growth was driven by higher mobile and fixed subscription revenue, benefiting from increased FMC benefits.
Organic growth was driven by higher mobile and fixed subscription revenue benefiting from increased FMC penetration.
Moving to slide six and I'll see NW Panama segment.
Speaker 4: Moving to slide 6 and I'll see you in W Panama segment.
Starting on the left of the slide.
Speaker 4: Internet RGU ads were inline BQ1 and 75% high versus the price.
Internet argue adds were in line with Q1, and 75% higher versus the prior year.
Speaker 4: Our subscriber base is up 6% since the beginning of the year supporting financial momentum.
Our subscriber base is up 6% since the beginning of the year supporting financial momentum.
And mobile strategy of focusing on postpaid and high value prepaid is yielding positive results as we delivered a modest increase in our postpaid and prepaid losses were lower sequentially and year over year.
Speaker 4: A mobile strategy of focusing on post-paid and high value prepaid is yielding positive results as we delivered a modest increase in our post-paid base and prepaid losses will lower sequentially and year over year. Moving to the centre of the...
Moving to the center of the slide and our revenue by product.
Speaker 4: In Panama, our largest products by revenue are mobile and B2G.
In Panama, our largest product by revenue are mobile and BBB.
Speaker 4: Fix is the smallest product area, but one of the fastest growing.
<unk> is the smallest product area one of the fastest growing.
Speaker 4: Following the positive momentum in Q1, both fix and B2B recorded strong rebase revenue growth in the second quarter, posting rebase increases of 8% and 7% year over year respect.
Following the positive momentum in Q1, both fixed and <unk> recorded strong rebased revenue growth in the second quarter.
<unk> rebased increases of 8% and 7% year over year, respectively.
Speaker 4: Growth in fixed revenue will support a higher broadband R-POO driven by customers contracting highest speed plans and higher tier funds.
Growth in fixed revenue was supported by higher broadband <unk> driven by customers contracting highest speed plans and highest tier bundles.
Speaker 4: We are also making good progress decommissioning our Copa Network in Panama and our on track to have this completed by the end of next.
We are also making good progress decommissioning, our copper network in Panama and on track to have this completed by the end of next year.
Speaker 4: In mobile, we saw improved recharge levels and usage for prepaid and lower acquisition and we touched on discounts in both.
In mobile we saw improved recharged levels and usage for prepaid and lower acquisition and retention discounts in Boston.
Finally to our integration update outlining the lower right of this slide.
Speaker 4: Finally to our integration update, outlined in the lower right of this.
Speaker 4: We are making good progress with the integration of cloud or panamas operations. The focus in Q2 was defining and implementing our client migration strategy and planning on network integration to modernize infrastructure and expand capacity.
We are making good progress with the integration of cloud of Panama operations to.
The focus in Q2 was defining and implementing our client migration strategy and planning on network integration to modernize infrastructure and expand capacity and coverage.
Given our progress with these initiatives we are on.
Speaker 4: Given our progress with these initiatives, we are on track to deliver a synergy of objectives, which also underpins growth in the second half.
On track to deliver synergy objectives, which also underpins the growth in the second half.
Next to slide seven.
Speaker 4: and Liberty Puerto Rico. A largest single mark.
And Liberty, Puerto Rico largest single market.
Speaker 4: Starting under left of the slide, we reported another quad of internet ads as a much price increases landed well, returned stable at about 1.
Starting on the left of this slide.
<unk> reported another quarter of Internet ads as a march price increases landed well stable at about 1%.
This is a testament to our strong customer service and network reliability underpinned by our investments in fiber to the home.
Speaker 4: This is a testament to a strong customer service and network reliability underpinned by our investments in
Speaker 4: Since Q2 last year, we increased our fiber homes by 70.
Since Q2 last year, we increase of fiber homes by 70%.
In addition, we successfully launch I was one gigabit speed across majority of our HFC footprint using DOCSIS treat outline.
Speaker 4: In addition, we successfully launch our one gigabit speed across majority of our HFC footprint using DOCSIS 3.1. To take great and upgrades of
The take rate and upgrades have exceeded our expectations.
Speaker 4: then into MOVA. Sequentially, I'll post-batant base state relatively flat, while we experience a similar level of losses in pre-pay.
Turning to mobile sequentially, our postpaid base relatively flat, while we experienced a similar level of losses in prepaid.
We are in a transitional phase.
Speaker 4: We plan to revamp our pre-paid strategy and launch customer centric post-paid customer value propositions as soon as migrations are complete.
We plan to revamp our prepaid strategy and launch customer centric postpaid customer value propositions as soon as migrations are completed.
Speaker 4: In this regard with the help of our commercial partners, we are working hard to build wheat-spot platforms that will enable us to be more effective in the market through custom FMC bundles and offering outlets specifically for the Puerto Rico and USVI models.
In this regard with the help of our commercial partners. We are working hard to build beautiful platform enabled us to be more effective in the market through custom FMC bundles and offering tailored specifically for the Puerto Rico and USPI market.
Moving to the incentives on slide <unk>.
Speaker 4: moving to the center of the slide. Consumer mobile is our largest product in Puerto Rico. We just under 50...
Consumer mobile is our largest product in Puerto Rico.
With just under 50% of our revenue.
Speaker 4: This is followed by our fixed person representing a third of the total and B2B at 16.
This is followed by our fixed business, representing a third of the total and <unk> at 16%.
Speaker 4: In Q2, fixed revenues, up 5% year over year driven by the steady growth in our broadband
In Q2 fixed revenue was up 5% year over year, driven by the steady growth in our broadband base.
Speaker 4: Mobile subscription revenue remains flat sequentially, however, was lower year old.
Mobile subscription revenue remained flat sequentially, however was lower year over year.
Speaker 4: Finally, to our integration update on the lower rider.
Finally, do our integration updates on the lower right now to slide <unk>.
Speaker 4: We are continuing to migrate our pre-paid customers to our new
We are continuing to migrate our prepaid customers to our new platforms on the postpaid side. We have just started to bring across our first batches of customers and the migration rate will ramp up in the coming weeks and months.
Speaker 4: on the post page side. We have just started to bring across our first batches of customers, and the migration rate will ramp up in the coming weeks.
Speaker 4: We are working closely with partners, including AT&T and Apple and expect to finalize the integration by end of.
We are working closely with partners, including AT&T, and Apple and expect to find links to integration by the end of the year.
Speaker 4: However, the process is clearly complex and we are proceeding with customer experience being off-fist and foremost priority.
However, the process is clearly complex and we are proceeding with customer experience being a first and foremost priority.
Turning to slide eight and Liberty Costa Rica.
Starting on the left of the slide our.
Speaker 4: I will fix subscriber base remain, Broddy Flatten Q2 with a small increase in turn following a price increase in...
Our fixed subscriber base remained broadly flat in Q2 with a small increase in churn following a price increase in may.
Speaker 4: In mobile, we recorded strong post-paid additions in the quality, driven by a pre-paid to post-paid migration stress.
In mobile we recorded strong postpaid additions in the quarter driven by our prepaid to postpaid migration strategy.
Speaker 4: According to the latest report by the regulator in 2022, we reconfirmed our leadership with over 46% of markets.
According to the latest support by deregulated in 2022, we reconfirm, our leadership with a 46% of market share.
Speaker 4: with post-bate market chain increasing 5 percentage points versus 2020.
Postpaid market share increasing five percentage points versus 2021.
Speaker 4: Moving to the center of the slide, consumer mobile's largest product would close to 60% share for it.
Moving to the incentive to slide <unk>.
Schumer mobile is our largest product closer to 60% share of revenue.
Speaker 4: This is followed by a consumer fixed business representing just over 30% and then a small but fast growing B2B up.
This is followed by a consumer fixed business, representing just over 30% and then a small but fast growing <unk> operations.
Speaker 4: Finally, to our integration update in the lower right of the slide. Integration activities continue to be on
Finally to our integration update in the lower right of the slide.
Integration activities continue to be on track.
Speaker 4: We expect to roll out the PSA and hit our run rate synergy target of 15 million by the end of
We expect to roll off the PSA and hit our run rate synergy target of $15 million by the end of the year.
Finally to slide nine and our Liberty networks segment.
Speaker 4: Finally, to slide nine in our Liberty Network segment. Starting from the.
Starting from the left hand side of the slide.
Speaker 4: I am pleased to announce that in Q2, we successfully completed our rebranding from CNW Network's delivery network.
I'm pleased to announce that in Q2, we successfully completed a rebranding from <unk> networks to Liberty networks, a single brand across wholesale and enterprise, providing greater scale and consistency of messaging across multiple segments.
Speaker 4: single brand across wholesale and in the price, providing greater scale and consistency on messaging across multiple segments.
Speaker 4: The new brand with its fresh look conveys customer centricity, innovation, reliability and performance which are the foundations of our competitive edge and growth.
The new brand minutes fresh look conveys customer centricity innovation reliability and performance, which are the foundations of our competitive edge and growth potential.
Speaker 4: We are driving this segment in the region and Hello in inaugural links leadership event in Mexico earlier this.
We are driving this segment in the region and Hello inaugural links leadership event in Mexico earlier this year.
Speaker 4: without top 100 customers, industry and global top leaders where we discussed hot topics such as the impact of AI and Latin and the Caribbean, Fintech and Technology Disrupt.
Without top 100 customers industry and global thought leaders, maybe discuss hot topics such as the impact of AI in Latam in the Caribbean Fintech and technology disruption.
Speaker 4: Running through the wholesale enterprise highlights on the right hand side of
Running through the wholesale and enterprise highlights on the right hand side of the slide holds.
Speaker 4: wholesale accounting for three quarters of the segment's revenue delivered 3% growth in the first half, mainly driven by capacity increases and upselling our existing customers and new capacity.
Wholesale accounting for three quarters of this segment's revenue delivered 3% growth in the first half mainly driven by capacity increases and upselling, our existing customers and new capacity sales.
Speaker 4: steady growth mostly US dollar denominated revenue and low cap ex requirements underpins high cash flow can
Steady growth, mostly U S dollar denominated revenue and low capex requirements underpins high cash flow conversion.
Speaker 4: A unique multi-ring infrastructure remains a differentiating factor in relation to other networks in the region and a synonym for reliable.
Our unique multi ring infrastructure remains a differentiating factor in relation to other networks in the region and a synonym for reliability.
Speaker 4: On the bottom right and the price representing the remaining quarter revenue posted a 13% increase.
On the bottom right enterprise, representing the remaining quarter of revenue posted a 13% increase driven by higher demand for our connectivity active churn management and cross and Upselling of value added services.
Speaker 4: driven by higher demand for our connectivity, active turn management, and cross an upselling of value added service.
Speaker 4: Following our rebranding, we anticipate our solid pipeline to convert new customers in the months to come.
Following our rebranding we anticipate a solid pipeline to convert new customers in the months to come.
Overall.
Speaker 3: Q2 was never strongly quoted from a commercial and operational
Q2 was another solid quarter from our commercial and operational perspective.
Speaker 4: And we expect more progress in the second half of the years. We move to its finalization of our integration projects and drive creative free cash flow generate.
And we expect more progress in the second half of the year as we move towards Finalization of our integration projects and drive greater free cash flow generation.
Speaker 4: We also plan to continue delivering value to our shareholders to our equity buyback.
We also plan to continue delivering value to our shareholders through our equity buyback program.
Speaker 4: With that, I'll pass you over to Chris Noyes, our Chief Financial Officer. We'll talk to you through our financial performance before we take your question.
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.
Speaker 5: Thanks, Balin. I'll now take you through our financial performance in greater detail, starting with our sequential performance on the left-hand side of slide 11. Sequentially, on a reported basis in U.S. dollars, our revenue grew by 2% and adjusted OIBA DA by 10% in the second quarter as compared to Q1, with our Panamanian business feeling the step up as we have had good operating momentum and integration progress.
Thanks, Alan I'll now take you through our financial performance in greater detail, starting with our sequential performance on the left hand side of slide 11 sequentially on a reported basis in U S dollars, our revenue grew by 2% and adjusted OIBDA by 10% in the second quarter as compared to Q.
One with our Panamanian business feeling this step up as we have had good operating momentum and integration progress as we look to improved eight two performance all of our segments contributed to sequential adjusted OIBDA growth.
Speaker 6: as we look to improved H2 performance. All of our segments contributed to sequential adjusted oipa dog.
Speaker 6: Moving to year-over-year performance on the right-hand side of the slide. As a reminder, we've deconsolidated our Chilean business at the start of Q4 2022. So our reported results in 2023 do not include the operating results of VTR. Additionally, our 2023 results include the results of ChloroPanema, but do not include them in Q2 2022, as we began consolidation in last year's Q2.
Moving to year over year performance on the right hand side of the slide as a reminder, we consolidated our Chilean business at the start of Q4 2022. So our reported results in 2023 do not include the operating results of ETR.
Additionally, our 2023 results include the results of Claro, Panama, but do not include them in Q2 2022, as we began consolidation in last year's Q3, so a number of moving pieces, but overall, a solid performance with stable revenue and 4% Rebased growth on adjusted OIBDA as mentioned last quarter.
Speaker 6: So a number of moving pieces, but overall a solid performance was stable revenue in 4% rebase growth on the Justin Oyd.
Speaker 6: As mentioned last quarter, C&W Caribbean reported revenue was impacted by a business decision to discontinue a legacy non-core B2B voice transit arrangement in Q1 2020.
<unk> Caribbean reported revenue was impacted by a business decision to discontinue our legacy noncore <unk> voice transit arrangement in Q1, 2023, which was accounting for about $10 million of quarterly revenue and we will have a similar impact in each of Q3 and Q4 until we start lapping the move next year.
Speaker 6: which was accounting for about $10 million of quarterly revenue. And we'll have a similar impact in each of Q3 and Q4 until we start lapping the move next.
Speaker 6: Justine for this Q223 revenue would have grown by 1% on a rebase basis Europe .
Adjusting for this Q2 'twenty three revenue would have grown by 1% on a rebased basis year over year for.
Speaker 6: For the full year 2023, we continue to target mid to high single digit rebased adjusted at Waipa.GRO for Allelite. Slide 12.
For the full year 2023, we continue to target mid to high single digit Rebased adjusted OIBDA growth for alloy.
Slide 12 highlights our segment results beginning on the left with <unk> Caribbean, We reported $356 million of revenue in Q2, reflecting flat performance and $146 million of adjusted OIBDA, resulting in an 8% rebased growth.
Speaker 6: Beginning on the left with CNW Caribbean, we reported $356 million of revenue in Q2, reflecting flat performance, and $146 million of adjusted oibidah, resulting in 8% rebase growth.
Speaker 6: Adjusting for the transit impact in the prior year period, revenue would have been 3% higher on a rebase base.
Adjusting for the transit impacting the prior year period revenue would have been 3% higher on a rebased basis. Our primary driver of growth was through residential mobile with service revenue expansion led by our postpaid efforts and higher inbound roaming.
Speaker 6: Our primary driver of growth was through residential mobile, with service revenue expansion led by our post-paid efforts and higher inbound roaming. Our strong adjusted Oibidah rebase growth was largely fueled by lower direct costs, including programming, and improved operating leverage across many of our islands. We finished the quarter with a margin over 41% more than 300 bases points higher than the prior year quarter.
Our strong adjusted OIBDA Rebased growth was largely fueled by lower direct costs, including programming and improved operating leverage across many of our islands. We finished the quarter with a margin over 41% more than 300 basis points higher than the prior year quarter.
Speaker 6: Moving to cable and wireless Panama, CWP contributed $181 million of revenue and $59 million of adjusted Oyba Dung Q2, reflecting 4% rebase revenue growth and 42% rebased adjusted Oyba Dung growth. Rebased top line growth was driven by residential fixed and B2B. Adjusted Oyba Dung grew strongly in Q2 as we captured value from the Chloro Panama integration.
Moving to cable and wireless Panama CW P contributed $181 million of revenue and $59 million of adjusted OIBDA in Q2, reflecting 4% Rebased revenue growth and 42% Rebased adjusted OIBDA growth Rebased top line growth was driven by residential fixed and <unk>.
Adjusted OIBDA grew strongly in Q2, as we captured value from the Claro Panama integrations.
Speaker 6: Turning to the middle column, Liberty Networks. We generated $119 million in revenue or 5% rebase growth and $72 million in adjusted oil but doff for a 2% rebase decline.
Turning to the Middle column Liberty networks, we generated $119 million of revenue or 5% rebased growth and $72 million and adjusted OIBDA for a 2% Rebased decline.
Speaker 6: Year-over-year rebase revenue growth within our wholesale operations was driven by a significant customer that is recognized on a cash basis. While we reported strong growth across enterprise-related connectivity and managed services is bound and highlighted.
Year over year Rebased revenue growth within our wholesale operations was driven by a significant customer that is recognized on a cash basis, while we reported strong growth across enterprise related connectivity and managed services as Alan highlighted.
Speaker 6: Adjusted Ovidog's experience to rebase decline year over year is cost increase to and part to higher software licenses and lower capitalizable costs.
Adjusted OIBDA experienced a rebased decline year over year as costs increased due in part to higher software licenses and lower capitalized costs importantly.
Speaker 6: Importantly, our adjusted Oibidol margin was above 60% for the quarter, and our operating free cash flow margin stood in a very robust 50% of reps.
Importantly, our adjusted OIBDA margin was above 60% for the quarter and our operating free cash flow margin stood at a very robust 50% of revenue.
Speaker 6: Second from the right Liberty Puerto Rico, Q2 revenue was $352 million reflecting a year-over-year rebased decline of 3%. Residential fix continued to be robust, delivering growth on the back of volume gains over the past 12 months, and price increases implemented in March.
Second from the right Liberty, Puerto Rico, Q2 revenue was $352 million, reflecting a year over year Rebased decline of 3% residential fixed continued to be robust delivering growth on the back of volume gains over the past 12 months and price increases implemented in March residential mobile decreased year over year.
Speaker 6: Residential mobile decreased year over year driven by lower ARPU, lower roaming revenue, reduced equipment sales, and subsidy levels were lowered, and a decline in pre-paid subscribers.
Driven by lower <unk>, lower roaming revenue reduced equipment sales as subsidy levels were lowered and a decline in prepaid subscribers.
Speaker 6: So, quencially, our mobile service revenue in RPU continued to be stable while total mobile revenue was impacted by lower equipment sales, due in part to our reduction in subsidies and seasonality facts.
Sequentially, our mobile service revenue and <unk> continued to be stable, while total mobile revenue was impacted by lower equipment sales due in part to a reduction in subsidies and seasonality factors.
Speaker 6: Adjusted Oyba-Daw increased from Q1 as we delivered $141 million in the second quarter, which reflected the rebased decline of 3% as compared to Q2 2022. Several factors contributed to this year over year decline, including the aforementioned decline in mobile service revenue and higher operating costs.
Adjusted OIBDA increased from Q1, as we delivered $141 million in the second quarter, which reflected a rebased decline of 3% as compared to Q2 2020 to several.
Several factors contributed to this year over year decline, including the aforementioned decline in mobile service revenue and higher operating costs.
Speaker 6: The next two quarters are a critical period for us from an integration and migration perspective as we look to cut over from AT&T and we anticipate increased costs around the migration in H2 as the bulk of the consumer activities is expected to occur over the next several months.
The next two quarters are a critical period for us from an integration and migration perspective, as we look to cut over from AT&T and we anticipate increased costs around the migration to <unk> as the bulk of the consumer activities is expected to occur over the next several months.
Speaker 6: Rapping up with Costa Rica on the far right, we delivered Q2 revenue of $135 million and adjusted Oyba-Daw $50 million, reflecting a rebased revenue decline of 1% and rebased adjusted Oyba-Daw growth of 10%. Revenue performance was impacted by declines and RPU caused by increased retention discounts and declines in higher RPU plans.
Wrapping up with Costa Rica in the far right. We delivered Q2 revenue of $135 million and adjusted OIBDA of $50 million, reflecting a rebased revenue decline of 1% and Rebased adjusted OIBDA growth of 10% revenue performance was impacted by declines in <unk> caused by increased retention discounts and <unk>.
Clients and higher Arco plans adjusted OIBDA expanded significantly year over year benefiting from lower integration spend and the year over year strengthening of the Costa Rican colon to U S. Dollar as we have certain cost denominated in U S dollars.
Speaker 6: Adjusted oibodox expanded significantly year-over-year, benefiting from lower integration spend, and the year-over-year strengthening of the Costa Rican Cologne to the US dollar, as we have certain cost-dynaminated in US dollars.
Slide 13 highlights our results for <unk> additions and adjusted FCS and reiterate our 2023 Fcs outlook.
Speaker 6: Flight 13 highlights our results for P&E editions and adjusted FCF and reiterates our 2023 FCF Out.
Speaker 7: In the second quarter, we incurred $192 million of P&E additions or 17% of revenue. We built and were upgraded 94,000 homes in the quarter led by activity in the Caribbean and Panama, taking our half year figure to over 180,000.
In the second quarter, we incurred $192 million of peony additions or 17% of revenue, we built and our upgraded 94000 homes in the quarter led by activity in the Caribbean in Panama, taking our half year figure to over 180000.
Speaker 6: As part of our upgrade in Newville program, we are also decommissioning copper plant and are on track to complete this by the end of next year.
As part of our upgraded Newbuild program. We are also decommissioning copper plant and are on track to complete this by the end of next year.
Speaker 6: During the quarter we incurred about $8 million of integration catbacks mainly in Panama and Puerto Rico and expect integration catbacks to remain elevated throughout H2. Finally year to date our catbacks as a percentage of revenue was 15% and we remain on track to deliver our 2023 target of 16% of
During the quarter, we incurred about $8 million of integration Capex, mainly in Panama, and Puerto Rico, and expect integration capex to remain elevated throughout <unk>.
Finally year to date, our Capex as a percentage of revenue was 15% and we remain on track to deliver our 2023 target of 16% of revenue.
Speaker 6: In terms of adjusted free cash flow, we posted $31 million in the quarter or $72 million before distributions to our partners in certain markets, where we do not own 100% of local business.
In terms of adjusted free cash flow, we posted $31 million in the quarter or $72 million before distributions to our partners in certain markets, where we do not own 100% of local businesses, our $41 million of distributions went to our government partners in Panama and Bahamas.
Speaker 6: Our $41 million of distributions went to our government partners in Panama and Baham.
Speaker 6: Our Q2 cash flow represents an improvement from Q1, and we expect this to continue in the second half as we progress towards meeting our four-year guidance of approximately $300 million per pre-distribution. Our 2023 cash flows will continue to be heavily weighted to Q4, as has been typical for us over the last years, given strong Q4 adjusted orbit performance and favorable working capital.
Our Q2 cash flow represents an improvement from Q1, and we expect this to continue in the second half as we progress towards meeting our full year guidance of approximately $300 million per pre distributions. Our 2023 cash flows will continue to be heavily weighted to Q4 as has been typical for us over the last years.
Given strong Q4, adjusted OIBDA performance and favorable working capital swings.
Speaker 6: Turning to slide 14. At the end of Q2, when I consulted the basis, we had $8 billion of total debt, over $600 million of cash, and $1 billion of availability under our revolving credit.
Turning to slide 14 at the end of Q2 on a consolidated basis, we had $8 billion of total debt over $600 million of cash and $1 billion of availability under our revolving credit lines important to note that 95% of our debt stack is due in 2027 or beyond and 96%.
Speaker 6: Important to note that 95% of our debt stack is due in 2027 or beyond and 96% has fixed interest rates.
<unk> has fixed interest rates the long maturity and fixed interest features of our balance sheet, coupled with significant liquidity, resulting in a robust capital structure for the group in terms of leverage we have made good progress reducing levels in the first half through principally adjusted OIBDA growth, we have reduced our net consolidated leverage from $4.
Speaker 6: The long maturity and fixed interest features of our balance sheet coupled with significant liquidity result in a robust capital structure for the group. In terms of leverage, we have made good progress reducing levels in the first half. Through principally adjusted Oiva Doug Rowe, we have reduced our net consolidate the leverage from 4.6 times at year end to 4.3 times at June 30th, while also aggressively continuing to repurchase our equity.
Six times at year end to four three times at June 30, while also aggressively continuing to repurchase our equity <unk>.
Speaker 6: Continue to adjust the Ovedag growth and pre-cash flow expansion should further improve our net leverage ratio over the coming quarter.
Continued adjusted EBITDA growth and free cash flow expansion should further improve our net leverage ratio over the coming quarters in.
Speaker 6: In the bottom right of the slide, it shows our equity and convertible repurchase activity over.
In the bottom right of the slide it shows our equity and convertible repurchase activity over time in each one we repurchased a combined $181 million as Bob highlighted earlier. This includes $132 million in Q2 and $50 million in Q1, our convert purchases in Q2 of <unk>.
Speaker 6: In H1, we repurchased to combine $181 million as Ballon highlighted earlier. This includes $132 million in Q2 and $50 million in Q1. Our convert purchases in Q2 were facilitated by $69 million in three-year borrowings at a compelling 6.5% fixed rate. And we applied the proceeds to repurchase the convert at attractive discounts to par.
<unk> by $69 million in three year borrowings at a compelling six 5% fixed rate and we applied the proceeds to repurchase the convert at attractive discounts to par.
Speaker 6: Since quarter and we have been able to further reduce the outstanding balance to below 300 million.
Since quarter end, we have been able to further reduce the outstanding balance to below $300 million.
Speaker 6: Moving to the final slide and our closing remarks, we continue to add subscribers and key focus areas of broadband internet and post-paid mobile, while also building our B2B business in the second quarter. Selective strategic price increases have been executed in our markets, and together with volume growth, should form a good foundation for further top line progress.
Moving to the final slide and our closing remarks, we continue to add subscribers in key focus areas of broadband Internet and postpaid mobile while also building our <unk> business in the second quarter selective strategic price increases have been executed in our markets and together with volume growth should form a good foundation for <unk>.
Further top line progression.
Speaker 6: Integration execution continues to be a primary focus for both our corporate and local operating.
Integration execution continues to be a primary focus for both our corporate and local operating teams. We are reaching a key period across a number of projects as we seek to deliver our value capture goals and look forward to reporting further progress in the next earnings call.
Speaker 6: We are reaching a key period across a number of projects as we seek to deliver our value capture goals and look forward to reporting for the progress in the next earnings call.
Speaker 6: Turning to capital allocation, we significantly increased equity activity in the second quarter as the market pricing of both our equity and to virtual bull notes provided us with what we thought were highly accretive opportunities to deploy our excess capital.
Turning to capital allocation, we significantly increased equity activity in the second quarter as the market pricing of both our equity and convertible notes provided us with what we thought were highly accretive opportunities to deploy our excess capital. We will continue to evaluate these opportunities as we progress in <unk> and <unk>.
Speaker 6: We'll continue to evaluate these opportunities as we progress in H2.
Speaker 6: And finally, we remain confident in delivering on our adjusted Oype.Capback's adjusted free cash flow targets for 2023. With that operator, please open it up.
Finally, we remain confident in delivering on our adjusted OIBDA Capex adjusted free cash flow targets for 2023 with that operator, please open it up for questions.
Thank you.
Speaker 1: The question and answer session will be conducted electronically. If you would like to ask a question regarding the company's operations, please do so by pressing the star or asterisk key, follow about the digit one under touch time telephone. If you are using a speaker phone, please make sure the mute function is turned off to allow your signal to reach our equipment. We'll pause for just a moment to give everyone an opportunity to signal for questions.
<unk> and answer session will be conducted electronically if you would like to ask a question regarding the company's operations. Please do so progressing the style extra risky followed by the digit one on your Touchtone telephone if you were using a speaker phone. Please make sure. The mute function is turned off to allow your signal to reach our equipment, we'll pause for just a moment to give everyone an opportunity to signal for questions.
The first question today comes from <unk> from Goldman Sachs. Your line is open. Please go ahead.
Speaker 1: The first question today comes in by total to meet from government facts. I told you all I was open. Please go ahead.
Hello, Good morning, all and thanks for taking my questions two questions from our side. The first one is on Puerto Rico. The earnings release cites a reduction in handset subsidy levels.
Speaker 8: Two questions from our side. The first one is on Puerto Rico. The early release site's a reduction in handset sub-video levels.
Speaker 8: that seems to have been a significant factor in results over there. Could you give me a some caller on that strategic shift on handset subsidies and any drivers for it? And second question would be regarding adjusted free cash flow. If you could give us just a bit more caller on seasonality in particular when it comes to the working capital seasonality and drivers benefiting queue for. Thank you.
That seems to have been a significant factor in our results over there could you give me some color on that strategic shifts on handset subsidies and any drivers far it and second question would be regarding your adjusted free cash flow. If you could give us just a bit more color on seasonality in particular when it comes to the working <unk>.
Capital seasonality and drivers benefiting Q4, thank you.
Sure.
Good morning.
Thanks for the question.
Speaker 4: So the first one on Puerto Rico and our last, you know, Naji could jump in here as well, who runs our operations there. You know, as we got to the end of last year, there was significant promotional activity on handsets and handsets subsidies. Mostly in the mainland USA, which kind of blood into Puerto Rico as well.
So the first one on Puerto Rico and I'll ask.
Just to jump in here as well who runs.
Our operations there.
As we got towards the end of last year, those significant promotional activity on handsets and handset subsidies, mostly in the mainland USA, which kind of bled into Puerto Rico as well.
Speaker 4: And we've been experimenting with subsidies. In the first half of the year, you can probably see from our numbers that we've kind of reduced the subsidy level.
We've been kind of experimenting with subsidies and.
In the first half of the year, you can probably see from our numbers that we've kind of reduce the subsidy levels.
Speaker 9: and in that promotional activity, actually to ascend demographic and mostly around retention. And now we've looked at the results, we've been playing around with it, we've been studying and analyzing it, right? You know, our plans in the second half of the year is going to be slightly different in our first half of the year as we kind of fine tune the subsidy levels.
And.
In the promotional activity actually to a certain demographic and mostly around retention.
And now we've looked at the results we've been playing around with it we've been studying and analyzing it.
Our plans in the second half of the year, it's going to be slightly different and there are puts and half of the year as we kind of fine tune the subsidy levels, but as you can also see from the mainland.
Speaker 4: You can also see from the mainland, the AT&T Verizon Timo results for second quarter.
The AT&T Verizon Deamer results for the second quarter, it would seem like the subsidy levels.
Speaker 4: like the subsidy levels are starting to decline a little bit. You brought to some ridiculous levels to the end of last year. And so we're going to be more nimble on it. And Naji, maybe if you want to add any more comments to that.
Starting to decline a little bit.
But to some ridiculous levels towards the end of last year.
So so we're going to be more nimble on it and 19, maybe if you want to add any more comments to that.
Speaker 10: Yes, good morning, thank you. About the only comment I would add is that part of optimizing, you know, the pull of subsidy, we have shifted a lot of the promotion to our higher end plan and providing less promotion to the lower end. So that strategic move allowed us to be able to manage well, you know, the subsidies. But as you all mentioned, approaching, you know, as we enter H2, that dynamical change before the end of the year for sure.
Good morning, Thank you Bob.
On the comment I will Doug Parker optimizing.
The pool of subsidy, we have shifted a lot of the promotion to our higher end plan.
Im providing less promotion to the lower end, so that strategic move allows us to be able to manage.
The subsidies.
Because you mentioned approaching as we enter it's too dynamic will change.
Before the end of the year for sure.
Speaker 4: And then on the free cash flow thing, I'll ask Chris the jumping years, Rob, but usually in the second half, there's a lot of reversals in the working capital because the first half you like to be a vendor, and you've got a lot of...
Thanks, and then on the free cash flow.
Chris to jump in here as well, but usually in the second half there's a lot of reversals on the working capital because the first half.
Vendors and you've got a lot of cost that hits you in the first half that kind of reverses itself in the second half, Chris maybe you want to give it a little bit a couple of other factors.
Speaker 4: that hits you in the first half that kind of reverses itself in the second half. Chris, maybe you want to give a little bit more. Yeah, I mean, a couple other factors. Certainly adjusted away the dot tends to be fairly strong in the last quarter of the year.
Adjusted OIBDA tends to be fairly strong in the last quarter of the year.
Speaker 4: Interest expense for us 10th is the lowest in Q2 and Q4.
Interest expense for us.
Is the lowest in Q2 and Q4.
Speaker 4: And in addition, a number of our key collections of large accounts also tend to happen later in the year. And I would say the fourth point, Mary and LeBallon said, CapEx tends to be weighted kind of towards the end of the year so that rolls into the first part of the year when when trade working capital on one. So
And in addition, a number of our key collections of large accounts also tend to happen later in the year.
And I would say the fourth point kind of marrying Labonte said capex tends to be weighted.
Towards the end of the year, so that rolls into the first part of.
Of the year, when when trade working capital unwind so.
Speaker 11: be the factors. But if you look back over the years, Q4 for us has been really the cash generative quarter for some.
It would be the factors, but if you look back over the year as Q4 for US has been really that's sort of the cash generative quarter.
For for several years.
Thanks, Chris.
Okay, great. Thank you.
Yes.
The next question comes from <unk> <unk> from New Street Research. Your line is open. Please go ahead.
Speaker 1: The next question comes from Simea Data from New Street Research. Simea, your line is open, please go ahead.
Speaker 12: Yeah, hi guys. Thanks for the question. Just a couple from me, please. First of all, on Chile, can you confirm that there has been no cash contributed into the JV? This quarter doesn't appear that is the case. And so of the recently announced...
Yes, hi, guys. Thanks for the question just a couple from me. Please first of all on <unk>.
Can you confirm that.
Seeing no cash contributed into the JV this quarter. It doesn't appear that is the case.
And so of the recently announced.
Speaker 12: funding round, which I think was around 600 million US models. Should we assume nothing is coming from liberty, and is there anything?
Funding round, which I think was around 600 million use model should we assume nothing is coming from Liberty and is there anything.
Speaker 12: more broadly we can infer about the future equity ownership of that JB. That would be the first question.
More broadly we can infer about.
The future equity ownership of the JV that would be the first question. Please.
Speaker 12: Please. And then secondly, on Panama, really good profitability as you highlighted. And how much of that was, if you like, synergy in the context of the 70 million dollar guidance, which we've got for that market on a full run rate basis, how much of we...
Please and then secondly on Panama really good profitability as you as you highlighted.
How much of that was if you like synergy in the context of the of the $70 million guidance, which we've got for that.
Market on a on a full run rate basis, how much have we seen so far.
Speaker 12: Is that running a hundred big patients? And, you know, how much more can we see come through in the second half of this year? Thank you very much.
Is that running ahead of expectations.
How much more can we see it come through in the second half of this year. Thank you very much.
Thanks.
Speaker 4: You know, on Chile, we, as S3 disclosure, we can confirm that we did not put any cash in it. And you can see from the other reporting that we did, mostly most of the contributions in the form of the container convert. And in that, at some point later,
Really.
We will be disclosing we can confirm that we did not but.
Any cash in that and you can see from the other reporting that we did mostly most of the contributions in the fall months it can take in but.
And that at some point later.
We will be sitting down with our partners on that but the equity ownership with that business remained 50 50, and we are quite involved.
Speaker 9: you know, be sitting down with our partners on that. But the equity ownership of that business remained 50-50 and we have quite involved in that business.
In that business.
Speaker 4: On the Panama part, you know, if you look at some of the savings this year, or the what we just reported.
On the on the Panama, but if you look at some of the savings this year.
What we just reported.
Speaker 4: You know, synergies played a big role in it, but it's not more than like 55-60% and the rest of it is from efficiencies that came out.
Synergies played a big role in it, but it's not more than $55, 60% and the rest of it is from efficiencies that came out that we worked really hard on and Thats, where the margin expansion came from but synergies will contribute to it and they will continue to contribute 2024.
Speaker 4: that we worked really hard on, and that's where the margin expansion came from. But synergies will contribute to it, and they'll continue to contribute, you know, 2024 synergies become even larger.
<unk> become even larger.
Speaker 4: as we finish the store closures, never full network migration. We're actually doing a customer migration in the next 10 days.
Finish the store closures.
Full network migration, we are actually doing the customer migration in the next 10 days or so.
Speaker 4: So a lot more activity is happening and we've gotten a lot more to harvest then. But one of the good news in that expansion in margins is really also a really good work by our operating teams on the ground.
And so a lot more activities happening and we've got more to harvest there, but but one of the good news in that expansion in margins. It's really also really good work by our operating teams on the ground.
Speaker 12: Okay great so sounds like there's sort of incremental savings ahead of the guided to synergies. Yes.
Okay, great. So it sounds like the sort of incremental savings ahead of the guided two synergies.
Yes.
Yes, Okay. That's great. Thank you.
The next question comes from Andres Coello from Scotiabank. Your line is open. Please go ahead.
Speaker 1: from Ardresco.co. from ScorsiorBank. And try as your line is open. Please go ahead.
Speaker 13: Yeah, thank you just to follow up on the question on Chile. So what I understood from the press release is that between you and America mobile, there will be a 600 million cash injection in Chile. And that I like will pay 50% of that. So if there's something different to that, or I like to contribute in 200 million to 3TR. Thanks.
Yes. Thank you just a follow up on the question on Chile, So what I understood from that from the press release is that.
Between you and America mobile there will be a 600 million cash injection Chile.
Like we pay 50% of that so.
There is something.
Different to that.
It contributed 200 million to VCR.
Speaker 14: So the contribution is from the other release, the 600 million additional that's been put into the business. And
So the contribution is from that other releases that $600 million. Additionally, thats been put into the business.
<unk>.
Speaker 4: I think if you look at our numbers that just published, you can probably come to the conclusion that we did not put out, out sharing it. And I think the way to look at it is that, you know, this contribution is not an equity contribution, but a debt piece.
I think if you look at our numbers that was just published you can probably come to the conclusion that we.
We did not but.
Sure.
And I think the way to look at it as debt.
This contribution is not an equity contribution, but the debt piece of paper.
Speaker 9: And so that gives everybody a chance to take a look at their business, study it, understand it, contribute to it, both especially on the operating side. And I suspect in the next couple of years, we'll be more definitive on where things stand.
And so that gives a.
Body.
Tends to take a look at that business steady it understand it contribute to it.
Especially on the operating side.
I suspect in the next couple of years.
Be more definitive on.
Thanks, Dan.
Okay. Thank you.
As a reminder, that star followed by one on your telephone keypad to ask a question.
Speaker 1: that star followed by one on the telephone keypad to ask a question.
Speaker 1: The next question comes from Matthew Harrigan from Benchmark. Matthew Yelana's open, please go ahead.
The next question comes from Matthew Harrigan from Benchmark Matthew Your line is open. Please go ahead.
Speaker 15: Thank you. I think my chili questions were answered. But your sister company over in Europe has created about three three billion pluses of value. On adventure side, I know Latin America is not exactly a hotbed for new venture activity. And you prefer to.
Thank you.
My questions were answered, but your sister company over in Europe has created about three 3 billion plus a value an adventure side I know Latin America is not exactly a hotbed.
For new venture activity and you prefer to.
Speaker 15: investment things that weren't incubated in house. But nonetheless, if there's some potential there, I know that all of these is one of the top VCs in Mexico. I think they're number three or number four. And clearly you have a lot of infrastructure that, you know, various TMT initiatives benefit from. And I know it's small, but I thought it was an interesting point. Thanks in advance.
There are some things that weren't an incubator and <unk>.
But nonetheless.
So there I know, it's all of these as one of the top <unk> in Mexico.
I think there are a number three or number four and clearly you have a lot of infrastructure that.
Various TMT initiatives.
Looked at.
And I know, it's small, but I thought it was an interesting point.
Vince.
Sure Hey.
Thank you.
Speaker 9: Thank you. Let me see if I answered this in a way that makes sense. We have made a couple of very small venture investments, mostly to support a startup that could be beneficial to us. So we've made investments in alternative energy, made investments in fixed wireless access.
Let me see if I answer this.
That makes sense, we have made a couple of very small venture investments mostly to support our startup startups that could be beneficial to us. So we've made.
Investments in.
Alternative energy investments.
Investments in fixed wireless access.
Speaker 4: and but they're relatively small. It's not a core part of our story, nor is this a gross driver for us. It's really where we think there's interesting technologies that can be used in our region, and we need to support them and nurture it and provide some funding for them to finish the development.
But theyre relatively small it's not a core part of our story nor is this a growth driver for us it's really where.
Where we think thats interesting technologies that can be used to now reach.
And we need to support them.
Mitch Ed and provide some funding for them to finish the development, we would consider that.
Speaker 4: We would consider that, but we don't look at this as a separate business unit.
But we don't look at this.
A separate.
Business unit.
Sure.
Speaker 4: a growth driver. Our business is in communications, it is in fixed broadband, it is in mobile, and we try to stay very close to what we really good at.
Gross driver our business is in communications. It is in fixed broadband and mobile and we're going to try to stay very close to what we are really good at.
Speaker 15: And needles to say content is probably the last bucket you'd invest in because that really would be a considerable departure from leveraging your existing infrastructure. I think that would be a very.
And needless to say content is probably last bucket.
Using <unk> because that really would be a considerable departure from leveraging your existing infrastructure.
I think that would be a very very good assumption.
Speaker 15: Okay, thanks, Paul. Appreciate it. You bet.
Okay. Thanks.
Thanks, Paul appreciate it.
You bet.
That will conclude today's question and answer session I would like to hand back to Helen <unk> for any additional or closing remarks.
Speaker 1: That will conclude today's question and answer session. I'd like to hand back to Colin Near for any additional or closing remarks.
Speaker 4: Thank you, Operator, and thanks everybody for taking the time this morning on a call. You can see we are making progress. And I suspect as you look at over the last few years and the top seat therapy of our neighborhood, I think we are in a good path here now. And the second half should be even more exciting than the fifth half. Thank you so much for your support. Have a great day.
Thank you operator, and thanks, everybody for taking the time. This morning on our call you can see we are making progress.
I suspect.
As you look at over the last few years.
The Topsy turvy.
Neighborhood.
I think we're on a good path now in the second half should be even more exciting than the first half. So thank you so much for your support.
Good day.
Speaker 1: Ladies and gentlemen, this concludes Liberty Latin America's second quarter 2023 Invest Co. As a reminder, a replay of the Coal will be available in the Investor Relations section of Liberty Latin America's website at www.lla.com. There you can also find a copy of today's presentation materials. You may now disconnect your line.
Ladies and gentlemen, this concludes Liberty Latin America's second quarter 2023, Invesco 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.
Can also find a copy of today's presentation materials you may now disconnect your lines.
Speaker 16: So.
Okay.