Q1 2024 Liberty Latin America Ltd Earnings Call

Operator: 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 Daniel Neva, VP, Chief Commercial Officer of Liberty Network.

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 Daniel need about VP, Chief commercial officer of Liberty networks.

Okay.

Daniel: Good morning, and welcome to Liberty Latin America's first quarter 2024 Investor call.

Daniel Neva: Good morning and welcome to Liber Latin America's first quarter 2024 investor call. At this time, all participants are in listen-only mode.

Speaker Change: At this time, all participants are in listen only mode.

Daniel Neva: Today's formal presentation materials can be found in the investor relations section of Liberty Latin America's website at www.LLA.com. Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded. Today's comment may include forward-looking statements, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical facts. However, actual results may differ materially from those expressed or implied by this statement.

Speaker Change: Today's formal presentation materials can be found under the Investor relations sections of Liberty Latin America's website at Www Dot <unk> Dot com.

Daniel: Following today's formal presentation instructions will be given for a question and answer session. As a reminder, this call is being recorded.

Daniel: Today's remarks May include forward looking statements, including the company's expectation with respect to its outlook and future growth prospects and other information and statements that are not historical fact.

Daniel: Actual results may differ materially from those expressed or implied by these statements.

Daniel Neva: For more information, please refer to the risk factors discussed in Liberty Latin America's most recent annual report on Form 10-K and quarterly report on Form 10-Q, along with associated press releases. 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 such statements or information are based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the investor section of our website. I would like now to turn the call over to our CEO, Mr. Balan Nair.

Daniel: For more information please refer to the risk factors discussed in Liberty Latin America's Most recently filed annual report on Form 10-K, and quarterly report on Form 10-Q, along with the associated press release.

Daniel: Liberty Latin America disclaims any obligation to update any forward looking statements or information to reflect any change in its expectation or in the conditions on which such statements or information is base.

Daniel: In addition on this call we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the Pan. This is Jude this presentation, which is accessible under the investor session of <unk>.

Daniel: Our website I.

Jude: I would like now to turn the call over to our CEO, Mr. <unk> <unk> there.

Jude: Okay.

Balan Nair: Thank you, Daniel, and welcome everyone to Liberty Latin America's first quarter results presentation. I'll begin with our group highlights and an overview of our operating results by reporting segment. 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.

Speaker Change: Thank you Danielle and welcome everyone to Liberty Latin America's first quarter results presentation.

Speaker Change: I'll begin with the group highlights and an overview of our operating results by reporting segment.

Daniel: Chris Noyes, our CFO will then follow with a review of the company's financial performance.

Speaker Change: After that we will get straight to your questions.

Balan Nair: As always, I'm joined by my executive team from across the region, and I will invite them to contribute as needed during the Q&A following a prepared remark. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com. Starting on slide four, and our highlight, we grew our high-speed internet and postpaid mobile basis in the quarter, adding 45,000 subscribers in total. Once again, we added broadband subscribers across all our reporting segments, with particularly strong performance in Jamaica and Panama.

Speaker Change: As always I'm 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.

Christopher Noyes: As a point of housekeeping, we will both be working from slides, which you can find on our website at www Dot LLE dot com.

Christopher Noyes: Starting on slide four.

Christopher Noyes: Our highlights.

Christopher Noyes: We grew our high speed Internet and postpaid mobile basis in the quarter, adding 45000 subscribers in total.

Christopher Noyes: Once again, we added broadband subscribers across all our reporting segments.

Christopher Noyes: Particularly strong performance in Jamaica and Panama.

Balan Nair: In Mobile, there was some impact from migration and ECF subscriber losses in Puerto Rico, which I will cover later. But this was more than offset by growth in Costa Rica, where we recorded our best net ad for two years, as well as strong performances in Panama and Jamaica. We reported adjusted OEB Dow of $374 million in the quarter.

Christopher Noyes: In mobile there was some impact from migration and ECS subscriber losses in Puerto Rico, which I will cover later, but this was more than offset by growth in Costa Rica, where we recorded our best net adds for two years as well as strong performances in Panama and Jamaica.

Christopher Noyes: We reported adjusted OIBDA of $374 million in the quarter.

Balan Nair: This included double-digit growth in Panama and Costa Rica and high single-digit growth in cable and wireless Caribbean, positioning them as well to drive improved growth in the second half of the year. In addition, performance in Puerto Rico is poised to improve both sequentially and year-over-year in the second half as well. This reflects our comments about 2024 as a tale of two halves.

Christopher Noyes: This included double digit growth in Panama, and Costa Rica, and high single digit growth in cable and wireless Caribbean.

Christopher Noyes: Positioning us well to drive improved growth in the second half of the year.

Christopher Noyes: In addition performance in Puerto Rico is poised to improve both sequentially and year over year in the second half as well.

Christopher Noyes: This reflects our comments of 2024 as a tale of two halves.

Balan Nair: We are seeing growth in nearly all our operations in the first half and in all operations in the second half. We continue to aggressively buy back our stock as we repurchase about 5% of our outstanding shares and a significant part of our outstanding 2024 conversion. We intend to take advantage of any dislocation in training levels in the future.

Christopher Noyes: We're seeing growth in nearly all our operations in the first half.

Christopher Noyes: And in all operations in the second half.

Christopher Noyes: We continue to aggressively buyback stock SBB purchases above 5% of our outstanding shares and a significant part of our outstanding 2024 conveyed.

Christopher Noyes: We intend to take advantage of any dislocation in trading levels in the future.

Balan Nair: To that end, our board has authorized an additional $200 million of capacity for our buyback to the end of 2026. Finally, we passed a major milestone in Puerto Rico in early April, as we completed the migration of mobile customers to our new mobile core and IT platform ahead of the timeline set out on our last earnings graph. We are excited that we can now move forward with our plans to create a leading convergence player in that market.

Christopher Noyes: Did that end our board has authorized an additional $200 million of capacity for our buyback to the end of <unk> 26.

Christopher Noyes: Finally, we passed a major milestone in Puerto Rico in early April we completed the migration of mobile customers to our new mobile core and it platform.

Christopher Noyes: Head of the timeline set out on our last earnings call.

Christopher Noyes: We are excited that we can now move forward with our plans to create a leading converged player in that market.

Balan Nair: We will cover the impacts of the migration activities on Q1 performance and the factors that we anticipate will now drive improved performance in more detail during today's presentation, turning to slide five. I'll begin our operating review with cable and wireless.

Christopher Noyes: We will cover the impacts of the migration activities in Q1 performance and the fact is that we anticipate will now drive improved performance in more detail during today's presentation.

Speaker Change: Turning to slide five I'll.

Speaker Change: Ill begin our operating review with cable and wireless Caribbean.

Balan Nair: On the left of the slide, we present our Internet and Mobile Postpaid Edition. In the first quarter, we delivered consistent performance across both product categories, led by Jamaica, which is our largest market in this segment. In addition to our FMC commercial strategy, which we have previously highlighted, we have also increased fixed pricing across the majority of our markets by an average of three and a half percent so far this year. Moving to the center of the slide, this commercial momentum, combined with the solid start to the year for B2B, helped drive 3% rebate revenue growth for cable and wireless Caribbean in the quarter.

Speaker Change: On the left of the slide we present, our internet and mobile postpaid additions.

Speaker Change: In the first quarter, we delivered consistent performance across both product categories led by Jamaica, which is our largest market in this segment.

Speaker Change: In addition to our FMC commercial strategy, which we have previously highlighted we have also increased fixed pricing across the majority of our markets by an average of $3, 5%. So far this year.

Speaker Change: Moving to the center to slide this commercial momentum combined with the solid start to the year for BBB helped drive 3% Rebased revenue growth for cable and wireless Caribbean in the quarter.

Balan Nair: Overall, we delivered a strong start to the year. Looking forward, we intend to take further price increases consistent with inflation and continue to see an opportunity to reduce our cost base through additional operating efficiencies related to, for example, the shutdown of our copper network, further vendor consolidation, and digitalization of our business. Moving to slide six, and now the CNW Panama segment, starting on the left of the slide.

Speaker Change: Overall, we delivered a strong start to the year.

Speaker Change: Looking forward, we intend to take further price increases consistent with inflation and continue to see an opportunity to reduce our cost base through additional operating efficiencies related to for example, the shutdown of our copper network for the vendor consolidation and digitalization of our business.

Speaker Change: Moving to slide six and our CFW Panama segment.

Speaker Change: Starting on the left of the slide.

Balan Nair: We delivered a solid quarter of internet subscriber additions, supporting healthy growth in our fixed product revenue. We continue to have an underweight market share position but have a strong network with 95% of our footprint having high speed and predominantly FTTH, which should support further growth in coming quarters. In mobile, we reported a return to postpaid gains, and subscriber momentum should be buoyed in Q2 with the addition of customers from Digicel, whose concession ended on April 20. Moving to the center of the slide, we saw our top line increase by 2% in the quarter. Gross was driven by B2B and fixed products, which were up by 10% and 6%, respectively.

Speaker Change: We delivered a solid quarter of internet subscriber additions supporting healthy growth in our fixed product revenue.

Speaker Change: We continue to have an underweight market share position, but having a strong network with 95% of our footprint having high speed.

Speaker Change: Dominantly F Dth, which should support further growth in coming quarters.

Speaker Change: In mobile we reported a return to postpaid gains and subscriber momentum should be buoyed in Q2 with the addition of customers from Digicel, whose concession ended on April 20th.

Speaker Change: Moving to the center of the Slide we saw top line increased by 2% in the quarter.

Speaker Change: Growth was driven by <unk> and fixed products, which were up by 10% at 6% respectively.

Balan Nair: In mobile, revenue declined by 5% driven by prepaid subscriber losses over the past 12 months, partly offset by improved RPIs. We expect performance to improve through the year, driven by subscriber ads. We also anticipate price increases in both fixed and mobile, consistent with inflation and the value of our product offerings. The prepaid business here has one of the lowest ARPUs in the region, and we expect to climb the value ladder in the second part of this year. And finally, the integration of Clara's operations in Panama is now complete.

Speaker Change: And mobile revenue declined by 5% driven by prepaid subscriber losses over the past 12 months, partly offset by improved ARPA.

Speaker Change: We expect performance to improve through the year driven by subscriber ads.

Speaker Change: We also anticipate price increases in both fixed and mobile consistent with inflation and the value of our product offerings.

Speaker Change: The prepaid business here is one of the lowest <unk> in the region and we expect declines to value added second part of this year.

Speaker Change: Finally, the integration of <unk> operations in Panama is now complete and we will see the year over year benefits continued to drive adjusted EBITDA growth through 2024.

Balan Nair: And we will see the year-over-year benefits continue to drive adjusted OEBDA growth through 2024. Turning to slide seven and Liberty, Puerto Rico. Starting on the left of the slide.

Speaker Change: Turning to slide seven and Liberty, Puerto Rico.

Speaker Change: Starting on the left of the slide.

Balan Nair: We delivered another quarter of internet and total RGU additions driven by two-play and three-play digital off. Our momentum in FIX remains robust. In Mobile, our subscriber performance was impacted by the final stages of migration and the withdrawal of ECF funding for schools in Puerto Rico. We saw lower gross ads as our sales force focused on migration activities rather than new sales. This is now turning, and we are starting to see some commercial green shoots with improved additions sequentially in March and April.

Speaker Change: We delivered another quarter of Internet and total <unk> additions driven by deeply in AAA digital office.

Speaker Change: Our momentum in fixed remains robust.

Speaker Change: In mobile our subscriber performance was impacted by the final stages of migration and withdrawal of ECF funding for schools in Puerto Rico.

Speaker Change: We saw lower gross adds as our sales force focus on migration activities, rather than new sales.

Speaker Change: This is now turning and we are starting to see some commercial green shoots when improve addition sequentially March and April.

Balan Nair: As we flagged in our previous earnings announcement, we were also impacted by the withdrawal of ECF funding for schools in Puerto Rico. This drove 22,000 subscriber losses in Q1, and we anticipate a further headwind of approximately 40,000 subscribers in Q2. Our pool for these customers is less than half our average across the base. In the center of the slide, we show the revenue mixed by product in Puerto Rico. We reported a 10% decline year over year, driven primarily by lower mobile equipment sales due to the impact of migration activities on gross assets.

Speaker Change: As we flagged in our previous earnings announcement, we were also impacted by the withdrawal of ECF funding for schools in Puerto Rico.

Speaker Change: This drove 22000 subscriber losses in Q1, and we anticipate a further headwind of approximately 40000 subscribers in Q2.

Speaker Change: Our pool for these customers is less than half our average across the base.

Speaker Change: And the incentive to slide we showed the revenue mix by product in Puerto Rico.

Speaker Change: We reported a 10% decline year over year.

Speaker Change: Given primarily by lower mobile equipment sales due to the impact of migration activities on gross adds.

Balan Nair: We plan to drive equipment sales in the second half. Chris will cover the financial puts and takes in greater detail within his section. In Puerto Rico, while we are incurring increased costs related to the final stages of customer migration and transitioning to new IT systems and a wireless core network, we believe we have the right strategic assets and team to be successful. We expect adjusted OEBDA expansion in the second quarter, but the full effect of synergies and cost savings should show up in the third and fourth quarters this year.

Speaker Change: We plan to drive equipment sales in the second half.

Speaker Change: Chris will cover the financial puts and takes in greater detail within his section.

Speaker Change: In Puerto Rico, while we are incurring increased costs related to the final stages of customer migration and transitioning to new it systems and a wireless core network.

Speaker Change: We believe we have the right strategic assets and team to be successful.

Speaker Change: We expect adjusted OIBDA expansion in the second quarter, but the full effect of synergies and cost savings should show up in the third and fourth quarter. This year.

Balan Nair: We expect that synergies, operating cost improvements, and top-line sequential growth with FMC will drive adjusted OEBDA to more than $45 million per month at some point in the second half and set us up for significant expansion in adjusted OEBDF for 2025. Turning to Slide 8 and Liberty Costa Rica.

Speaker Change: We expect that synergies operating cost improvements in top line sequential growth with FMC will drive adjusted OIBDA to more than 45 million per month at some point in the second half.

Speaker Change: And sets us up for significant expansion in adjusted OIBDA for 2025.

Speaker Change: Turning to slide eight and Liberty study.

Balan Nair: On the left of the slide, we re-delivered a robust fixed subscriber performance in the quarter against what continues to be a challenging competitive backdrop in CoStudy. In Mobile, we reported our strongest quarter in two years, with more than double the prior year's quarter's post-paid additions and showing continued momentum in post-paid additions. As previously mentioned, we have conducted 5G trials and are prepared to be at the forefront of this

Speaker Change: Starting on the left of the slide.

Speaker Change: We delivered a robust fixed subscriber performance in the quarter against what continues to be a challenging competitive backdrop in Costa Rica.

Speaker Change: In mobile we reported our strongest quarter in two years with more than double the prior year's quarters postpaid additions and showing continued momentum in postpaid.

Speaker Change: As previously mentioned, we have conducted <unk> trials and are prepared to be at the forefront of this development.

Balan Nair: Moving to the center of the slide, we've reported 8% rebase revenue growth in the quarter, led by growth in mobile. We continue to grow our B2B operations from a small base in Namarka. On a reported basis, revenue was 18% higher in the quarter.

Speaker Change: Moving to the incentive to slide we reported 8% Rebased revenue growth in the quarter led by growth in mobile.

Speaker Change: We continue to grow our <unk> operations from a small base in the market.

Speaker Change: On a reported basis revenue was 18% higher in the quarter adjusted.

Balan Nair: Adjusted OEB that grew by double digits as we are improving cost efficiencies and taking price increases while still remaining one of the lowest cost providers in the country. Finally, to slide nine in our Liberty Networks segment. This is a great business, with exceptional cash flow generation. However, there's some volatility from quarter to quarter driven by non-recurring and often non-cash factors.

Speaker Change: Adjusted OIBDA grew by double digits.

Speaker Change: Improving cost efficiencies and taking price increases while still remaining one of the lowest cost providers in the country.

Speaker Change: Finally to slide nine and our Liberty networks segment.

Speaker Change: This is a great business with exceptional cash flow generation. However, there is some volatility from quarter to quarter, driven by nonrecurring and often noncash factors.

Balan Nair: On the left side of the slide, we present revenue for the current and prior year quarters. We have shown the impact of IRU amortization to highlight that this non-cash revenue is decreasing, and our underlying business is growing. We expect the IRU aspect to continue falling over time and therefore create a headwind for near-term reported revenue. Enterprise has been the faster area of growth, up 9% on a rebase basis, driven by increased volume market share as we draw sales of our value-added services in cloud and cybersecurity solutions, focus on mission critical operations for our customers. In other words, customers are trusting their most valuable operations to Liberty Network. Wholesale revenue also grew steadily, excluding the impact of additional non-cash IRU amortization in the prior year period.

Speaker Change: On the left side of the slide we present revenue for current and prior year quarters.

Speaker Change: We have shown the impact of <unk> amortization to highlight that this noncash revenues decreasing.

Speaker Change: Our underlying business is growing.

Speaker Change: We expect the IRR you expect to continue falling over time, and therefore create a headwind for near term reported revenue.

Speaker Change: Enterprise had been faster area of growth up 9% on a rebased basis, driven by increased volume and market share as we drove sales of our value added services and cloud and cyber security solutions focus on mission critical operations for our customers.

Speaker Change: In other words customers trusting their most valuable operations to Liberty networks.

Speaker Change: Wholesale revenue also grew steadily excluding the impact of additional noncash <unk> amortization in the prior year period.

Balan Nair: We continue to build our network capabilities, and as highlighted in the lower right of the slide, we have expanded our presence in Central America with the opening of two new points of presence this year. These strategic locations mark another step forward in our company's growth strategy. This new PoP will serve as vital hubs for our services, providing IP transit, connectivity, and MPLS capabilities to our customers in the region, reinforcing our commitment to delivering high-quality, reliable network services while extending our reach.

Speaker Change: We continued to build our network capabilities and that's highlighted in the lower right of the slide we have expanded our presence in Central America with the opening of two new point of presence this year.

Speaker Change: These strategic locations Mark another step forward in our company's growth strategy.

Speaker Change: This new point of presence will surface vital hubs for services, providing IP transit connectivity and mpls capabilities to our customers in the region reinforcing our commitment to delivering high quality reliable network services, while extending our reach.

Balan Nair: And finally, in the center of the slide, we show our usual revenue graph. However, we also wanted to highlight the strong financial performance of the business. Our Liberty Network segment has an adjusted OEB margin above 50%, and given its relatively low capital intensity, a mid-40s operating fee cash flow dropped. To summarize my presentation, With the completion of the Puerto Rico migration, we finally have our last major integration behind us, and now operations are headed in the right direction with improved commercial offerings and a strong and secure network.

Speaker Change: Finally incentive to slide we show our usual revenue graphic.

Speaker Change: However, we also wanted to highlight the strong financial performance of the business. Our Liberty networks segment has an adjusted OIBDA margin above 50% and given its relatively low capital intensity, our mid forties operating free cash flow drops to summarize my presentation.

Speaker Change: With the completion of the Puerto Rico migration, we finally have our last major integration behind us.

Speaker Change: And our operations are headed in the right direction with improved commercial offerings and strong and secured networks.

Balan Nair: We are positioned for meaningful expansion in our financial results, which when combined with our share repurchases, should deliver stakeholder value. With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will walk you through our financial performance before we take your questions.

Speaker Change: Our position for meaningful expansion in our financial results, which when combined with our share repurchases.

Speaker Change: Should deliver stakeholder value.

Speaker Change: That.

Speaker Change: I'll pass you over to Chris Noyes, Our Chief Financial Officer, who will talk to you through our financial performance before we take your questions Chris.

Christopher Noyes: Thanks Balan. I'll now take you through our financial performance in greater detail, starting on slide 11. Revenue was 1% lower on a rebase basis at $1.1 billion in the first quarter. We saw positive momentum in Costa Rica, CNW Caribbean, and Panama, which was more than offset by the aforementioned declines in Puerto Rico. Turning to adjusted OEBDA, we reported a rebase decline of 7% to $374 million. Our operating segments of C&W Panama and Liberty Costa Rica were our strongest performers with double-digit rebase growth. C&W Caribbean also had a good quarter, posting high single-digit rebase growth.

Christopher Noyes: Thanks, Paul I'll now take you through our financial performance in greater detail starting on slide 11 revenue was 1% lower on a rebased basis at $1 1 billion in the first quarter, we saw positive momentum in Costa Rica, CFW Caribbean in Panama, which was more than offset by the aforementioned.

Christopher Noyes: Declines in Puerto Rico.

Christopher Noyes: Turning to adjusted OIBDA, We reported a rebased decline of 7% Q3 hundred $74 million, our operating segments of CDW, Panama and Liberty Costa Rica were our strongest performers with double digit rebased growth CFW Caribbean also had a good quarter posting high single digit rebased growth.

Christopher Noyes: Similar to revenue, the positive performance of these segments was more than offset by declines in Liberty Puerto Rico, where migration and other integration-related costs heavily impacted Q1 numbers. In the third section, our P&E additions were $135 million in Q1, or 12% of revenue. About 65% of our quarterly spend was across CPE, capacity, and new build upgrade activities. In fixed, we added or upgraded 73,000 homes in Q1.

Speaker Change: Similar to revenue the positive performance of these segments was more than offset by declines in Liberty, Puerto Rico, where migration and other integration related costs heavily impacted Q1 numbers.

Speaker Change: In the third section our <unk> additions were $135 million in Q1 or 12% of revenue about 65% of our quarterly spend was across CPE capacity and new build upgrade activities in fixed we added or upgraded 73000 homes in Q1 and in mobile we continue to invest in capacity and.

Christopher Noyes: And in mobile, we continue to invest in capacity and have kicked off some 5G trials. In the last section, we posted negative $150 million of adjusted FCS in the quarter, $100 million lower compared to the prior year quarter. This was driven by a combination of factors, including higher interest in tax payments year over year, including $34 million in one-time VAT and income tax impacts of the Tower transaction that was completed at the end of last year, as highlighted in our Q4 materials, and an adverse vendor financing impact, including incremental paydowns in Panama.

Speaker Change: It kicked off some <unk> trials.

Speaker Change: And the last section, we posted negative $150 million of adjusted FCS in the quarter $100 million lower compared to the prior year quarter. This was driven by a combination of factors, including higher interest and tax payments year over year, including $34 million onetime VAT and income tax impacts of the tower.

Speaker Change: <unk> that was completed at the end of last year as highlighted in our Q4 materials.

Speaker Change: And an adverse vendor financing impact, including incremental paydowns in Panama.

Christopher Noyes: Slide 12 recaps our segment results for Q1. Starting with CNW Caribbean, we reported $364 million of revenue in Q1, reflecting 3% rebase growth. Specifically, we achieved growth in all three business categories, posting 2% in fixed, 5% in mobile, and 2% in B2B on a rebase basis. The main drivers of higher residential revenue were year-over-year subscriber growth and increased ARPUs following price increases across a number of markets. We posted adjusted OEBDA of $151 million, representing 8% rebase growth, largely fueled by revenue growth along with reductions in direct costs, especially with respect to interconnect and programming expenses. As a result, adjusted OEBDA margin improved by over 150 basis points year-over-year to 41%. Next, moving to cable and wireless Panama.

Speaker Change: Slide 12 recaps our segment results for Q1, starting with CDW Caribbean, We reported $364 million of revenue in Q1, reflecting 3% Rebased growth specifically, we achieved growth in all three business categories, posting 2% in fixed 5% in mobile and 2% in <unk>.

Speaker Change: On a rebased basis, the main drivers of higher residential revenue, where our year over year subscriber growth and increased Rps following price increases across a number of markets. We posted adjusted OIBDA of $151 million, representing 8% rebased growth largely fueled by revenue growth along with reductions indirect cause.

Speaker Change: Especially with respect to interconnect in programming expenses as a result, adjusted OIBDA margin improved by over 150 basis points year over year to 41%.

Christopher Noyes: CWP generated $169 million of revenue and $57 million of adjusted OEBDA in Q1, reflecting 2% rebased revenue growth and 31% rebased adjusted OEBDA growth. Rebased top-line growth was driven by 10% growth in B2B on the back of new project wins and a 6% increase in residential fixed as a result of RGU-based expansion over the last year. Offsetting this in part was a 5% decline in residential mobile, primarily due to a decrease in prepaid RGUs, partly offset by higher ARPU and postpaid additions driven by FMC. Our adjusted OEBDA performance year-over-year was helped by value capture from the 2022 CLARO acquisition. This led to an adjusted OEBDA margin expansion of over 7 percentage points to 34%.

Christopher Noyes: Next moving to cable and wireless Panama, CW P generated $169 million of revenue and $57 million of adjusted OIBDA in Q1, reflecting 2% Rebased revenue growth and 31% Rebased adjusted OIBDA growth Rebased top line growth was driven by 10% growth in <unk> on the back of New project wins.

Christopher Noyes: And a 6% increase in residential fixed as a result of our <unk> base expansion over the last year offsetting in part with a 5% decline in residential mobile primarily due to a decrease in prepaid <unk>, partly offset by higher <unk> and postpaid additions driven by FMC.

Christopher Noyes: Our adjusted OIBDA performance year over year was helped by value capture from the 2022 Claro acquisition. This led to adjusted OIBDA margin expansion of over seven percentage points to 34%.

Christopher Noyes: Turning to Liberty Networks, we generated $109 million in revenue and $59 million in adjusted OEBDA, resulting in rebate declines of 3% and 8%, respectively. As Balan highlighted, wholesale revenue declined due to a roughly $7 million decrease in non-cash IRU amortization and accelerations year over year, which was partially offset by high single-digit growth in enterprise driven by growth in connectivity and IT as a service, mostly in Colombia, the Our year-over-year decline in adjusted OEBD was due in large part to the aforementioned lower IRU revenue. Second from the right, Liberty Puerto Rico.

Christopher Noyes: Turning to Liberty networks, we generated $109 million in revenue and $59 million and adjusted OIBDA, resulting in rebased declines of 3% and 8% respectively. As <unk> highlighted wholesale revenue declined due to a roughly $7 million decrease in noncash <unk> amortization and.

Christopher Noyes: <unk> year over year, which was partially offset by high single digit growth in enterprise driven by growth in connectivity and it is a service mostly in Colombia, Dominican Republic and Honduras.

Christopher Noyes: Our year over year decline in adjusted EBITDA was due in large part to the aforementioned lower IOU revenue second from the right Liberty, Puerto Rico, Q1 revenue was $327 million, reflecting a 10% rebased decline year over year residential fixed revenue was up 2% on the back of volume gains in the past 12 months.

Christopher Noyes: Q1 revenue was $327 million, reflecting a 10% rebase decline year over year. Residential fixed revenue was up 2% on the back of volume gains in the past 12 months. Mobile, however, declined by 20% on a rebase basis, driven by a $26 million reduction in equipment sales, due in part to migration impacting commercial activities, as Balan highlights. Subscription revenue was also lower, driven by a decrease in mobile subscribers.

Christopher Noyes: Mobile however declined by 20% on a rebased basis, driven by a $26 million reduction in equipment sales due in part to migration impacting commercial activities as <unk> highlighted.

Christopher Noyes: <unk> revenue was also lower driven by a decrease in mobile subscribers adjusted OIBDA decreased substantially from Q4, as we reported $69 billion in Q1, which reflected a rebased decline of 46% as compared to Q1 2023 as.

Christopher Noyes: Adjusted OEBDOT decreased substantially from Q4, as we reported $69 billion in Q1, which reflected a rebase decline of 46% as compared to Q1 2023. As anticipated, the negative performance was impacted by lower revenue and higher costs related to migration and other integration activities.

Christopher Noyes: As anticipated the negative performance was impacted by lower revenue and higher costs related to the migration and other integration activities.

Christopher Noyes: Concluding with Costa Rica on the far right. We delivered Q1 revenue of $152 million and adjusted OIBDA of $58 million, reflecting 8% Rebased revenue growth and Rebased adjusted OIBDA growth of 18%.

Christopher Noyes: We delivered Q1 revenue of $152 million and adjusted OEBDA of $58 million, reflecting 8% rebased revenue growth and rebased adjusted OEBDA growth of 18%. All three business lines contributed to the positive top line performance, with the main driver of organic growth being mobile revenue, which was 10% higher year over year on a rebase basis. Supported in part by our revenue growth, adjusted OEBDA expanded significantly year-over-year. However, rebase growth was also helped by certain costs being denominated in U.S. dollars, and the U.S. dollar has continued to weaken against the Costa Rican colón.

Christopher Noyes: All three business lines contributed to the positive topline performance with the main driver of organic growth being mobile revenue, which was 10% higher year over year on a rebased basis.

Christopher Noyes: Ported in part by our revenue growth adjusted OIBDA expanded significantly year over year Rebased growth was also helped by certain costs being denominated in U S dollars in the U S. Dollar has continued to weaken against the Costa Rican colon.

Christopher Noyes: Moving to slide 13, I will present a detailed review of our financial performance in Puerto Rico. First, on the previous slide, we went through our revenue of $327 million. Importantly, our mobile subscriber base and revenue suffered during the course of the migration, and this was amplified in Q1 when the bulk of the migration occurred. Sales were reduced as our frontline was focused on assisting our customers with the migration, and churn was much higher, as expected during this transition. With that being said, we now have the flexibility and customer-level information to drive targeted offers and capitalize on our FMC cross-sell advantage. Post-migration, we have already begun to see NPS improve.

Christopher Noyes: Moving to slide 13, I will present, a detailed review of our financial performance in Puerto Rico first on the prior slide we went through our revenue of $327 million importantly, our mobile subscriber base and revenue suffered during the course of the migration and this was amplified in Q1 when the bulk of the migration occurred sales were reduced as our fraud.

Christopher Noyes: Line was focused on assisting our customers with the migration and churn was much higher as expected. During this transition with that being said, we now have the flexibility and customer level information to drive targeted offers and capitalize on our FMC Cross sell advantage post migration, we have already begun to see NPS improve we will be strategic and <unk>.

Christopher Noyes: We will be strategic on timing and expect key campaigns to launch in the near term, setting this up for expanded second-half top-line performance. Turning to costs, in the quarter, we reported $258 million in direct and operating costs. Of these costs, TSA, integration-specific costs, and inventory-related adjustments totaled roughly $40 million. We incurred $18 million in TSA costs with AT&T in Q1. This is on track to fall by more than half in Q2, and then it should be less than $1 million in Q3, and then fairly insignificant thereafter.

Christopher Noyes: Timing and expect key campaigns to launch in the near term setting this up for expanded second half top line performance.

Christopher Noyes: Turning to costs in the quarter, we reported $258 million in direct operating costs of these cost TSA integration specific costs and inventory related adjustments totaled roughly $40 million, we incurred $18 million in TSA costs with AT&T. In Q1. This is on track to fall by more than half in Q2.

Christopher Noyes: And then should be less than $1 million in Q3, and then fairly insignificant thereafter, we reported $14 million of integration related costs in Q1, reflecting our most intense quarter to date into Q2. These costs should decline substantially although we do have residual customer support and systems.

Christopher Noyes: We reported $14 million of integration-related costs in Q1, reflecting our most intense quarter to date. Into Q2, these costs should decline substantially, although we do have residual customer support and systems improvements to make during the quarter. After Q2, our expectation is that these costs will continue to run down. In terms of the $9 million in inventory-related items, these were costs associated with replacing handsets for customers that had incompatible devices and specific inventory that we ultimately were not able to use on our network, along with other aged inventory write-offs.

Christopher Noyes: Improvements to make during the quarter. After Q2, our expectation is that these costs will continue to run down in terms of the $9 million in inventory related items. These were costs associated with replacing handsets for customers that had <unk> compatible devices and specific inventory that we ultimately we're not able to use on our network along with <unk>.

Christopher Noyes: Other aged inventory write offs. These inventory costs related primarily to the migration and we don't expect them to recur. Additionally, we recently announced a major labor restructuring in Puerto Rico, which should be completed during Q2, and thus realize savings beginning in Q3 together with other cost improvement initiatives that are in <unk>.

Christopher Noyes: These inventory costs were related primarily to the migration, and we don't expect them to recur. Additionally, we recently announced a major labor restructuring in Puerto Rico, which should be completed during Q2 and thus realize savings beginning in Q3. Together with other cost improvement initiatives that are in flight, and our revamped commercial plans, we're well on our way to deliver our target-adjusted OEBDA in H2. Turning to slide 14.

Christopher Noyes: Our revamped commercial plans, we are well on our way to deliver our targeted adjusted OIBDA and <unk>.

Christopher Noyes: Turning to slide 14 at the end of Q1 on a consolidated basis, we had $8 1 billion of total debt $700 million of cash and $900 million of availability under our revolving credit lines. We have gross leverage of five times and net leverage of four six times, which was up modestly from Q4, we expect.

Christopher Noyes: At the end of Q1, on a consolidated basis, we had $8.1 billion of total debt, $700 million of cash, and $900 million of availability under our revolving credit lines. We had gross leverage of five times and net leverage of 4.6 times, which was up modestly from Q4. We expected the quarterly leverage ratio to increase for Q1 given Puerto Rico's performance and lower cash on hand, which was impacted by our large stock repurchase activity. As adjusted OEBDA recovers and cash generation improves for the group, we are positioned to see leverage decrease in the second half. As mentioned earlier, we repurchased $81 million of our convertible bond at a slight discount.

Christopher Noyes: This leaves just under $140 million outstanding, which we intend to fully redeem this July. In terms of our stock repurchase program, we bought back $60 million in Q1, our second highest quarter in terms of activity. March also represented our highest ever monthly total.

Christopher Noyes: The quarterly leverage ratio to increase for Q1, given Puerto Rico performance and lower cash on hand, which was impacted by our large stock repurchase activity as adjusted OIBDA recovers and cash generation increase for the group we are positioned to see leverage decreased in the second half.

Christopher Noyes: As mentioned earlier, we repurchased $81 million of our convertible bonds at a slight discount. This leaves just under $140 million outstanding, which we intend to fully redeem. This July in terms of our stock repurchase program, we bought back $60 million in Q1, our second highest quarter in terms of activity March also.

Christopher Noyes: Our highest ever monthly total.

Christopher Noyes: Since Q1, we have continued repurchasing equity. And, as seen yesterday in our earnings release, our board approved an additional $200 million repurchase authorization. To recap, we maintained solid broadband and post-paid subscriber volumes in Q1. We recorded broadband additions in all our segments, and our post-paid base grew in all segments except for Puerto Rico.

Christopher Noyes: Since Q1, we have continued repurchasing equity and has seen yesterday in our earnings release, our board approved an additional $200 million repurchase authorization.

Christopher Noyes: To recap we maintained solid broadband in postpaid subscriber volumes in Q1, we recorded broadband additions in all our segments and our postpaid base grew in all segments, except for Puerto Rico. This is a testament to the attractiveness of our FMC bundles and enhanced customer value propositions as well as favorable market.

Christopher Noyes: This is a testament to the attractiveness of our FMC bundles and enhanced customer value propositions, as well as favorable market penetration opportunities. As highlighted on previous calls, the completion of the customer migration in Puerto Rico has been a primary focus for both our corporate and local operating teams, and we are excited to move on to the next phase of recovery and growth. There is still work for us to do in our customer experience, systems environment, and back office stemming from the migration, but the largest obstacle is now behind us.

Christopher Noyes: Tracing opportunities as highlighted on previous calls the completion of the customer migration in Puerto Rico has been a primary focus for both our corporate and local operating teams and we are excited to move on to the next phase of recovery and growth. There is still work for us to do on our customer experience systems environment and back office stemming from the migration, but the law.

Christopher Noyes: Just obstacle is now behind US this milestone allows us to move off the AT&T systems dramatically improving our operating flexibility. Our team is motivated deliberate <unk> adjusted OIBDA target and the plans are geared to methodically to reach this goal finally to capital allocation, we channel of $141 million into our equity in <unk>.

Christopher Noyes: This milestone allows us to move off the AT&T systems, dramatically improving our operating flexibility. Our team is motivated to deliver its H2 Adjusted OEBDA target, and the plans are geared to methodically reach this goal. Filing a capital allocation, we channeled $141 million into our equity and convert buyback in Q1. As seen by our recent activity, it is safe to assume we'll be disciplined but opportunistic in our approach to deploying excess capital. With that operator, please open it up for questions.

Christopher Noyes: Buyback in Q1 as seen by our recent activity. It is safe to assume we will be disciplined but opportunistic in our approach to deploying excess capital with that operator. Please open it up for questions.

Operator: 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 star one to ask a question or star zero for operator assistance. In order to accommodate everyone, we request that you ask only one question with one follow-up, if needed. We're using a speaker phone. Your 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 comes from the line of Michael Rollins with Citigroup. The line is now open.

Speaker Change: Question and answer session will be conducted electronically.

Christopher Noyes: If you would like to ask a question regarding the company's operations. Please do so by pressing star one to ask a question.

Operator: Star Zero for operator assistance.

Michael Rollins: In order to accommodate everyone. We request that you ask only one question with one follow up if needed.

Operator: If you are using a speaker phone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment.

Michael Rollins: Well pause for just a moment to give everyone an opportunity to signal for questions.

Operator: The first question comes from the line of Michael Rollins with Citigroup. Your line is now open.

Michael Rollins: Thanks and good morning. First, I'm curious if you could break out maybe more explicitly the restructuring and integration costs that you're dealing with, just to have a sense of how that affected the 1Q results. And then when you look at Puerto Rico specifically and the goal to get to $45 million per month at some point in the second half, how do we put that into context? Is that a run rate?

Michael Rollins: Thanks, and good morning, I'm curious first if you could break out maybe more.

Michael Rollins: Excuse me the explicitly the restructuring and integration costs that youre dealing with just to have a sense of how that.

Michael Rollins: The effect of the <unk> results and then when you look at Puerto Rico, specifically and the goal to get to a $45 million per month at some point in the second half how do we put that into context is that a run rate at some point. It's 45 million times 12 is kind of the annual.

Michael Rollins: So, at some point, $45 million times 12 is kind of the annual run rate where OYBDA can get to, or is there just some way to kind of frame the larger annual opportunity in Puerto Rico from where you are today? has to do in the business from where you are today to get there. Thanks, Michael. Good morning.

Michael Rollins: Run rate, where OIBDA can get to or.

Michael Rollins: Is there some way to kind of frame the larger annual opportunity in Puerto Rico from where you are today and then what you have to do in the business from where you are today to get there. Thanks.

Balan Nair: Thanks, Michael. Good morning.

Speaker Change: Thanks, Michael Good morning, so.

Balan Nair: So the way we've been working on this is that, if you saw, you know, Chris's comments, the first quarter was unusually hit by a lot of one-off costs and some recurring costs that we were carrying for the longest time, and that was the AT&T payments through the TSAs. And Chris quoted the number of about $18 million there. So if you take the numbers of TSA costs, that would go to pretty much zero after July, very minimal. So that's one that just drops to the editor line.

Michael Rollins: The way we've been working on that is that if you saw hit Christmas.

Speaker Change: Chris's comments. This first quarter was unusually hit by a lot of one off costs and some recurring costs that we were carrying for the longest time and thats the AT&T payments through the TSA and Chris quoted the number of about 18 million.

Balan Nair: <unk>.

Balan Nair: So if you take those numbers of TSA costs that would pretty.

Balan Nair: Pretty much zero after July very minimal. So that's one that just drops to the EBITDA line. Then there is a lot of one off integration costs, where we were paying up for additional labor because we bring a lot of labor into our stores and our call centers in tier two tier three tech support to handle the migration.

Balan Nair: Then there are a lot of one-off integration costs where we were paying up for additional labor because we were just bringing a lot of labor into our stores and our call centers and our tier two and tier three tech support to handle the migration. But those costs also start winding down. As Chris indicated, in the second quarter, you'll see that wind down happening, and it's quite aggressive, but it doesn't go to zero. Then, in the third and fourth quarters, it pretty much disappears.

Balan Nair: Those costs also starts winding down.

Balan Nair: As Chris indicated in the second quarter, Youll see that wind down happening and it's quite aggressive but it doesn't go to zero then in the third and fourth quarter pretty much disappears and Thats, where the EBITDA expansion happens now the $45 million. It's a monthly EBITDA number that you have.

Balan Nair: And that's where the EBITDA expansion happens. Now, the $45 million, it's a monthly evident number that if you just, you know, take the first quarter and do the monthly math that, you know, we're in the 20s right now, and so our plan is to expand it to $45, and it comes from both the savings and the TSA, the integration one-off cost that drops, labor savings, Chris has indicated that as well, we'll be picking out about, 100 Employees, the payroll.

Balan Nair: Yeah.

Balan Nair: Take the first quarter endured the monthly math that premiums.

Balan Nair: Premiums right now and so our plan is to expand it to 45 and it comes from both the savings and the TSA the integration one off costs that drops.

Balan Nair: Labor savings, Chris It indicated that as well will be picking up about.

Balan Nair: 300 employees.

Balan Nair: And that number would probably stay around that. And I think we will be done with a lot of that labor reduction exercise this quarter, most of it happens in the second. And then the third and fourth is, you know, when we see the cost savings show up.

Balan Nair: Zero.

Balan Nair: And that number would probably.

Balan Nair: Stay around them.

Balan Nair: And I think we will be done with a lot of that labor reduction exercise this quarter, which most of it happens in the second and then the third and fourth.

Balan Nair: We see the cost savings show up the $45 million on a monthly basis, I think what I've been saying, it's going to be.

Balan Nair: The $45 million on a monthly basis. I think what I've been saying is it's going to be greater than $45 million. And but $45 million is our target on a monthly basis. So you take that month from, let's say 45 million happens in the month of August. And then from August on, it's 45 million and more. 45 million is not the target. 45 million is where we want to get to, and clearly, we plan on exceeding that by the end of the year.

Speaker Change: Great and then $45 million.

Balan Nair: But $45 million as our target on a monthly basis or your big that month from let's say $45 million happens in the month of.

Balan Nair: Yes.

Balan Nair: From August <unk> is 45 million and more $45 million is not the target $45 million, where we would get to.

Balan Nair: Clearly.

Balan Nair: We plan on exceeding that by the end of the year.

Speaker Change: Very much that makes sense Mike.

Balan Nair: Great.

Michael Rollins: Very helpful. Thank you.

Speaker Change: Very helpful. Thank you.

Speaker Change: Thank you.

Vitor Tomita: Your question comes from the line of Vitor Tomita with Goldman Sachs. Your line is now open.

Speaker Change: The next question comes from the line of <unk> <unk> with Goldman Sachs. Your line is now open.

Balan Nair: Hello, good morning, all. And thanks for taking our questions. Two quick questions from our side. The first one is if you could confirm and reiterate if guidance for the next three years is maintained. And our second question would be on the prepaid dynamics for Panama. If you could give us a little more color on that, and if the volumes that were lost amid some disruptions in Q4 are still a key issue, and if you could give us some more detail on how you expect that to improve in the second half of the year. Thank you very much.

Vitor Tomita: Hello, Good morning, all and thanks for taking my questions. Two quick questions from our side. The first one is if you could confirm and reiterated guidance for the next three years is maintained.

Balan Nair: And our second question would be on.

Balan Nair: On the prepaid the dynamics for Panama, if you could give us a little more color on that in the volumes that were lost some disruptions in Q4 are still a key issue.

Balan Nair: If you could give us some more detail on how you expect that is true to improve in the second half of the year. Thank you very much.

Balan Nair: And I'll ask my colleague, Rocio, to jump in here in a second, as well, to give you a bit more color on Panama. I'll start with the guidance. We are reiterating our guidance. It's over 24 to 26.

Speaker Change: Sure and I'll ask my colleagues to jump in here in the second as well and give you a bit more color on Panama.

Rocio: I'll start with the guidance, we are reiterating our guidance.

Balan Nair: Okay.

Balan Nair: For 2006 1 billion in free cash flow accumulated mid to high single digit OIBDA and we intend to keep our capex flat at 16%.

Rocio: We feel really comfortable that the numbers and.

Rocio: In Sydney.

Rocio: Exceeded as well.

Balan Nair: It's $1 billion in free cash flow cumulative, mid to high single digits or EBITDA, and we intend to keep our capex flat at 16%. We feel really comfortable with the numbers and certainly hope to exceed them as well. In Panama, I'll start with this. We've made a number of changes there, in management and in our proposals as well. And you'll probably start to see a trajectory change there in Panama, specifically on mobile.

Balan Nair: Panama.

Rocio: I'll start with this.

Balan Nair: <unk>.

Rocio: We've made a number of changes there.

Balan Nair: And management and our propositions as well.

Balan Nair: You'll start to see probably a trajectory changed in Panama.

Balan Nair: Specifically on mobile.

Balan Nair: And without giving too much color in the month of April, I can just tell you that, you know, given the digital shutdown, things have changed for the much better, and our teams on the ground have been extremely successful in capturing our share of the customers that became available. So I see a very, very bright future there. The first quarter was a little bit noisy, and I'll ask Rocio to give a little bit more color on the prepaid numbers in the first quarter. Rocio.

Balan Nair: And without giving too much color on the month of April I can just tell you that.

Balan Nair: Given the did you sell shutdown things.

Balan Nair: Thanks.

Rocio: The change for the much better.

Rocio: And our teams on the ground has been extremely successful in capturing our.

Balan Nair: Sure.

Rocio: This customers that became available so I see a very very bright future. There. The first quarter was a little bit noisy and I'll ask let's see or that gives a little bit more color on the prepaid numbers, but this quarter this year.

Rocio: Thanks, Balan. Indeed, you have seen a little bit of loss in in Q1. I think it was basically driven from the past trajectory. The underlying strategy was right, which was basically to push customers to migrate from prepaid to postpaid. However, we're seeing some leakage, or we were seeing some leakage coming in, and I think the operational improvements we're making are going to allow us to continue to push for pre- to post-migration, which is, of course, fantastic in terms of predictability, in terms of ARPA increase.

Rocio: Thanks, Marilyn Index, you have seen a little pickup launch in in.

Rocio: In Q1, I think it was basically driven from day as trajectory the underlying strategy right, which is basically.

Rocio: Push customers to migrate from prepaid to postpaid.

Rocio: However, we are seeing some.

Rocio: Certainly we're seeing some acres coming in and I think the operational improvements, we're making is going to allow us to continue to push for pre to post migration, which is quarters from that.

Rocio: In terms of predictability in terms of the increase so I think a strategic way it.

Rocio: So, strategic-wise, it was the right strategy. Now we need to get it executed as we are in the right way, and, of course, adding new customers from the digital side, which is, I think, going to be much clearer in the numbers for Q2. So, as Balan said, we're happy about how it is going.

Rocio: It was the right strategy now we need to get it executed as we are in the right way and of course, adding new customers from the digital side.

Rocio: <unk>.

Rocio: Which is I think going to be much more clear in the numbers for Q2, so as long as it were.

Rocio: We're happy about how it gets going.

Vitor Tomita: Thank you, see you later. Very clear, thank you very much.

Rocio: Thanks.

Speaker Change: Very clear thank you very much.

Unknown Executive: you. The next question comes from the line of Andres Coelho with Scotiabank and is now open.

Rocio: The next question comes from the line of Andreas <unk> with Scotiabank. Your line is now open.

Balan Nair: Yes, thank you for taking my question. I'm wondering about the potential impact of the shutdown of the Affordable Connectivity Program, or ACP. We are noticing an impact on cable companies in the US, and I'm wondering if you are exposed to this program in Puerto Rico, or perhaps this is the same thing as the school subsidies. I'm not sure if we're talking about the same thing. So if you have any guidance on the ACP impact, please. Thank you.

Unknown Executive: Yes. Thank you for taking my question.

Unknown Executive: I'm wondering about the potential impact of the shutdown of the affordable connectivity program or ACP.

Balan Nair: Noticing an impact on cable companies in the U S and I'm wondering if you are exposed to these program in Puerto Rico.

Balan Nair: Or perhaps you see the same thing.

Balan Nair: The school subsidy side I'm not sure you were talking about it same thing. So if you have any guidance on the ACP impact. Thank you.

Balan Nair: Thank you, Andres. That's a good question. You know, in Puerto Rico, our share of the ACP is actually quite low. It's about 600, some thousand. ACP subscribers, and our share is under 100,000 around there. And so the numbers are pretty small relative to the larger, you know, base in Puerto Rico. And in mobile, I think our numbers are like less than 5,000, I think, so pretty small. So the impact is, it's not as significant.

Speaker Change: Thank you Andreas.

Speaker Change: It's a good question.

Balan Nair: In Puerto Rico, our share of the ECB is actually quite low it's about 600.

Balan Nair: ACB subscribers and our share is under 100000 around there.

Balan Nair: And.

Balan Nair: So the numbers are pretty small relative to the larger.

Balan Nair: Based in Puerto Rico, and in mobile I think our numbers.

Balan Nair: Less than 5000, I think some pretty small so the impact is not as significant of course, we are doing everything we can do retain those customers.

Balan Nair: Of course, we are doing everything we can to retain those customers. And at this point, I think the number we have because they have to opt in going forward, we have more than 97% of our ACP customers have already decided to opt in and stay with us. So I think from that perspective, it's good.

Balan Nair: Point I think.

Balan Nair: The number we have because we have to opt in going forward, we have to make more than 90, some percent of our ACP customers, who have already decided to opt and stayed with us. So I think from that sense. It's great. It's slightly different than the other programs that I described which is ECS.

Balan Nair: It's slightly different than the other program that I described, which is ECF. ECF is strictly a mobile subsidy program. It doesn't impact the fixed business. So on the ACP, for us, it's mostly on the fixed side. On the ECF, this is a Department of Education subsidy that provides for students and schools to give out free modems. Data Access. It was not used very much. It's a very low R-proof, and the subsidy came to an end.

Balan Nair: It's strictly a mobile subsidy program doesn't impact the fixed business. So on the ACP for it's mostly on the fixed side.

Balan Nair: The Etfs. This is a department of education subsidy that provided for students and schools to do.

Balan Nair: Give out free modems to be the access.

Balan Nair: It was not very much it's a very low <unk> and subsidy came down then.

Balan Nair: But what we did was, every modem that got disconnected through this plan would be a disconnect, so we showed that it's a postpaid B2B disconnect on a mobile service. So that kind of distorted the whole net ad numbers in mobile for the first quarter. And as we indicated, in the second quarter, you'll see that distortion also happening again. It's about 40,000, I think, which is how it distorts it in the second quarter. But it is like a modem service. It's not a hands-off voice service.

Balan Nair: But what we did was every modem that got disconnected to the blend would be a disconnect. So be sure that it's approved postpaid b to b disconnect.

Balan Nair: Mobile service, so that kind of like we started the whole net add numbers in mobile for the first quarter and as we indicated in hundreds in the second quarter Youll see that distortion also happening again, it's about 40000 I think it probably starts in the second quarter, but it but it is like a modem so that it doesn't have it.

Balan Nair: Hence our voice service, so that hopefully that helps and maybe my colleague Eduardo in Puerto Rico.

Balan Nair: So hopefully that helps. And maybe my colleague Eduardo in Puerto Rico. Eduardo, would you like to add any more color?

Speaker Change: Would you like to add any more color.

Eduardo: Thank you, Balan. And thank you, Andres, for your question.

Speaker Change: Thank you Marilyn.

Eduardo: Thank you Andrew for your question I would just reiterate the fact that we have.

Eduardo: I would just reiterate the fact that we have a low share of ATP customers, about less than 100,000, as Balan said, mostly fixed. Over 95% of those have already opted in to continue with our services, and we're actively working through the rest of the base to make sure that they continue with us. So I would say that we see that as a very low risk, although it is important to mention that there are at least two or three different actions being taken in Congress to sustain and maintain an ACP in the future, and certainly, we're following those very closely.

Eduardo: Our low share of ATB customers about.

Eduardo: 100000 is balance had mostly fixed.

Eduardo: Over 95% of those have already opted in to continue with our services and we're working through actively.

Eduardo: The rest of the base to make sure that they continue with us. So I would say that that we see that as a very low risk. Although it is important to mention that there is at least two or three different.

Eduardo: Actions being taken in Congress to sustain and maintain and ACP in the future and certainly we're following those very closely but right now we're working under the assumption that the that the program ends at the end of May with the partial subsidy and therefore.

Eduardo: But right now, we're working under the assumption that the program ends at the end of May with a partial subsidy, and therefore, you know, we believe that the customer base that we have will continue with us in the future.

Eduardo: We believe that the customer base that we have will be.

Eduardo: We'll continue with us in the future.

Unknown Executive: That was very clear. Thank you, Eduardo.

Speaker Change: That was very clear thank you Eduardo.

Speaker Change: Thank you.

Soomit Datta: The next question comes from the line of Soomit Datta with New Street Research. Your line is now open.

Eduardo: The next question comes from the line of Sumit Datta with New Street Research. Your line is now open.

Soomit Datta: Yeah, hi guys, I have a couple of questions for you please. Can I just go back to the...

Soomit Datta: Yes, Hi, Hi, guys couple of questions from me please.

Soomit Datta: Can I just go back quickly to the.

Balan Nair: So the Puerto Rico slide, looking to the 45 million of monthly adjusted OIDA, I think it's slide 13. Just trying to get a sense, if we kind of add back those one-off integration costs, um we don't we don't quite get to the 45 million I think you mentioned there's a bit of headcounts as well coming out just curious how much um do you need to get revenues moving again to get towards the 45 million um monthly OIDA and then again if we thinking into 2025 um, Presumably, you would view that as a base and would be looking to move beyond that given you would expect to continue to, I assume, improve revenue momentum in Puerto Rico.

Soomit Datta: So the Puerto Rico slide.

Soomit Datta: Looking to the 45 million.

Soomit Datta: Monthly adjusted OIBDA on slide 13.

Balan Nair: Just trying to get a sense if.

Balan Nair: We if we can kind of add back those one off integration costs.

Balan Nair: We don't we didn't quite get to the $45 million I think you mentioned, there's a bit of head.

Balan Nair: Head count as well coming out just curious how much.

Balan Nair: Do you need to get revenues moving again to get towards the 45 million.

Balan Nair: Luckily with and then again, if we can.

Balan Nair: Thinking into 2025.

Balan Nair:

Balan Nair: Presumably you would view that as a base.

Balan Nair: Looking to move.

Balan Nair: Beyond that given you would expect to continue to.

Balan Nair: Improved revenue.

Balan Nair: Two in Puerto Rico, So why is.

Balan Nair: So is that the right way to be thinking about 2025, OIDA, kind of that as a base, but you'd be building on some additional things as well? Maybe I'll leave that there. That's the first question, please. Thanks.

Balan Nair: Is that the right way to be thinking about 2025.

Balan Nair: Kind of how does the base.

Balan Nair: We will be building on some some.

Balan Nair: <unk> as well.

Speaker Change: Maybe I'll leave the first question please.

Speaker Change: I think thats, the right way to think cement.

Balan Nair: I think that's the right way to do it. Thank you, Soomit.

Balan Nair: Clearly when you do the math on bids we're already back into the one hundreds just just based on the slides.

Balan Nair: You know, clearly, when you do the math on this, you're already.., the hundreds just just based on Chris's slides here just on that in the second quarter we're already in the hundreds um maybe the low hundreds on that so to get to 45 you're really in the 130s it's kind of where the EBITDA should land for the quarter and um so two things need to happen in addition to this one and I'll tell you what what they are the first one is it's um we we are planning a price increase as well so that's going to drop directly to the EBITDA line Secondly, of course, the business will need to recover. We'll need to start growing the top line. And especially in our mobile, as you can see, our fixed business continues to grow. So the mobile business will grow. And we've already seen green shoots, I think. Chris, can I allude it to that?

Balan Nair: On that in the second quarter, we already in the hundreds on EBITDA low hundreds on that so to get to 45 year really into 130 <unk>.

Balan Nair: The EBITDA for the quarter.

Balan Nair: So two things need to happen. In addition to this one and I'll tell you what.

Balan Nair: First one is.

Balan Nair: We are planning a price increase as well so that's going to drop directly to the EBITDA line Secondly of course, the business, we'll need to recover.

Balan Nair: We need to start growing the top line and.

Balan Nair: Especially in our mobile as you can see our fixed business continues to grow so the mobile business.

Balan Nair: We grew in.

Balan Nair: We're already seeing green shoots I think.

Balan Nair: It's going to alluded to that.

Balan Nair: You know, I'll tell you our April number without giving you our second quarter. You know, our April numbers are looking much better. In prepaid, we are already doing, I think, one of our better quarters, better months since we acquired the business. So things are on the up.

Chris: I'll tell you our April number without giving out second quarter.

Balan Nair: Our April numbers are looking much better prepaid we're already doing.

Balan Nair: In one of our better quarters better months.

Balan Nair: Since we acquired the business so I think.

Balan Nair: On the up.

Balan Nair: And the other thing that Chris mentioned that I don't know was picked up very well is that we actually kind of paused a lot of our sales in the first quarter. All our team, everybody in the stores, and call centers, would just focus on migrating customers. And this migration was a little complicated because we had to, like, migrate people, not just physically there, you know, to our network and our IT systems, but their handsets needed to be upgraded to the latest versions of Android. We had a whole bunch of questions about billing.

Balan Nair: The other thing that Chris mentioned I don't know its picked up very well is that we actually kind of pause a lot of our sales in the first quarter.

Balan Nair: All of our team everybody in the stores call centers would just focus on migrating customers and this migration, it's a little complicated because we have to migrate people not just physically do on <unk>.

Balan Nair: Breaking our it systems for the handsets needs to be upgraded to the latest versions of Android we had a whole bunch of questions in billings and you know when you move billing system errors do happen and we incentive all our sales teams do it.

Balan Nair: And, you know, when you move billing systems, errors do happen. And we incented all our sales teams to spend most, if not all, their time assisting customers and not selling. As a matter of fact, as part of our one-time cost in the first quarter, we paid all of our sales team 100% commission, even though they weren't selling, our customers in the migration. So, when we get into the second half, Eduardo and his team have already put together some really good plans, and some of the plans that they've already implemented, certainly in prepay, because that was the first migration that was completed, are yielding already.

Balan Nair: And most if not all the time on assisting customers and not selling it as a matter of fact as part of a one time cost in the first quarter repaid all of our sales team of 100% Commission, even though they would.

Balan Nair: Selling.

Balan Nair: For our customers.

Balan Nair: In the migration.

Balan Nair: So when we get into the second half.

Balan Nair: <unk> and his team have already put together some really good plans and some of the plans that they've already implemented.

Balan Nair: And prepaid cards that was the first migration that was completed.

Balan Nair: So it's a combination of cost pickup. It's a combination of integration being done. Combination of TSA checks being stopped. It's Pricing Creatures, and it's recovery in our mobile business. It's very clear to us how we get there.

Balan Nair: Is yielding already so it's a combination of cost break up it is a combination of integration being gone with.

Balan Nair: Combination of DSA checks being stopped.

Balan Nair: It's price increases its recovery in our mobile business.

Balan Nair: It's very clear to us on how we get there.

Balan Nair: Yeah.

Soomit Datta: Okay, that's very clear. Thank you, Balan. And then maybe a quick one for Chris, please, just on kind of refinancing. I guess since you put out the midterm guide, there's been some kind of moves in yields, etc., in the market. Just curious, is anything, I know the midterm guide is still in place. I just wondered if there's anything changed in terms of your perspectives on timing or all kinds of financial implications of refinancing over the next couple of years. Thank you.

Balan Nair: Okay.

Speaker Change: Very clear thank you Bob.

Balan Nair: And then maybe.

Speaker Change: A quick one for.

Speaker Change: Chris Please just on kind of a refinancing I guess since you put out the mid term guidance is being.

Chris: Some kind of moves in yields et cetera in the market. Just curious is anything I know the midterm guidance still in place I just wanted to do with anything changed in terms of your perspectives on either timing or condo.

Soomit Datta: Financial implications.

Chris: A brief financing over the next couple of years. Thank you.

Christopher Noyes: No, thanks for the question. No, rates backed up a little bit over the last maybe two months, but it looks like they're recovering from no real change in terms of our, I've called it, our assumptions over the forecast period. You know, we're going to be opportunistic on refinancing the debt stack, which is 27 to 29. So we still have a number of years before we need to go into the market.

Speaker Change: No. Thanks for the question.

Chris: No I mean rates backed up a little bit over the last maybe two months.

Christopher Noyes: And it looks like they're recovering.

Christopher Noyes: No real change in terms of our I'll call it our assumptions over the.

Christopher Noyes: The forecast period, now we're going to be opportunistic.

Christopher Noyes: <unk>.

Christopher Noyes: On refinancing the debt stack, which is 27% to 29, so we have still a number of years.

Christopher Noyes: Before we need to go into the market I would think that at this point.

Christopher Noyes: I would think that at this point, you know, as markets become more favorable and open, most likely, we'll be out with, you know, just starting cable and wireless on that debt stack over the next, I'd call it, 12 months. You know, you'll see us at some point in the market, maybe, you know, several times. So we're just waiting for the right opportunity. We have great momentum in cable and wireless at this time, and I think the credit's only going to get better as we go.

Christopher Noyes: As markets become more favorable and open then we most likely will be out with yet to start in cable and wireless on that debt stack over the next I'd call. It 12 months.

Christopher Noyes: Yes, you'll see us at some point in the market maybe several times.

Christopher Noyes: So we're just waiting for the right opportunity, we have great momentum in cable and wireless at this time.

Christopher Noyes: I think the credit is only going to get better as we go similarly, as we've mentioned on Puerto Rico, I think that will probably be later in the refinancing horizon for us just given the recovery.

Christopher Noyes: Similarly, as we've mentioned in Puerto Rico, I think that will probably be, you know, later in the refinancing horizon for us, just given the recovery, and we'll wait to, you know, have the financial metrics in a better zone before we approach the market. OK.

Christopher Noyes: Wait.

Christopher Noyes: The financial metrics and a better zone before we approach the market.

Soomit Datta: Okay, great, thank you.

Speaker Change: Okay, great. Thanks, guys.

Speaker Change: Thank you.

Operator: That will conclude today's question and answer session. I would like to hand the microphone back to Balan Nair for any additional or closing remarks.

Speaker Change: That will conclude today's question and answer session.

Balan Nair: Thank you, operator. And maybe I can summarize it in a few things.

Soomit Datta: I would like to hand back to Balin Nair for any additional or closing remarks.

Balan Nair: One, we are really excited that we have done with the migration in Puerto Rico, and it sets us up for a really good path, and if you look at all of our other operations, whether it's in the Caribbean, it's in Panama, in Costa Rica, and even our Liberty Networks operations. Things are looking really good, and so we've got the whole operation moving. We fixed up Puerto Rico.

Balan Nair: Thank you operator.

Balan Nair: And maybe if I can summarize it.

Balan Nair: Few things one.

Balan Nair: We are really excited that we are done with that.

Balan Nair: We are really excited with the.

Balan Nair: The completion of the migration in Puerto Rico, and it sets us up for a really good path and if you look at all of our other operations, whether it's in Liberty Caribbean, It's in Panama, and Costa Rica, and even our Liberty networks.

Balan Nair: Subsidiary I tell you what things are looking really good.

Balan Nair: The second half is going to be, I think, very positive. And then you'll see, you know, all the pistons firing here. And when you look at the last quarter, you really see that our aggressive stock buyback shows the confidence that Chris and I and my whole management team feel about the business. You saw some of the insider buying as well in the first quarter. We think the future is really bright here, and certainly not in the next 24, 36 months, but actually by the end of this year, you'll start seeing some really nice print from LLA. So, thank you so much for all your support, and have a great day. Ladies and gentlemen,

Balan Nair: And so we've got the whole operations moving.

Balan Nair: Fixed up Puerto Rico, the second half is going to be I think very positive and then you'll see all pistons firing him.

Balan Nair: And when you look at the last quarter really saw our aggressive stock buyback shows the confidence that Chris and I and my whole management team feel about the business.

Balan Nair: Some of the insider buying as well in the first quarter, we think the futures really bright.

Balan Nair: And certainly not in the next 24 36 months, but actually by the end of this year, you'll start seeing some really nice print from.

Balan Nair: So thank you so much for all your support and have a great day.

Operator: Ladies and gentlemen, this concludes Liberty Latin America's first quarter 2024 investor call. As a reminder, a replay of the call will be available in the investor relations section of Liberty Latin America's website at www.lla.com. There you can also find a copy of today's presentation materials.

Speaker Change: Ladies and gentlemen, this concludes Liberty Latin America's first quarter 2024 investor call.

Balan Nair: 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.

Operator: Dot com.

Operator: You can also find a copy of today's presentation materials.

Operator: You can also find a copy of today's presentation materials.