Q3 2024 ATN International Inc Earnings Call
Okay.
Good day, and thank you for standing by.
Speaker Change: Welcome to the H E N International Q3, 2024 earnings conference call and webcast.
Speaker Change: At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
I ask a question during the session you will need to press star one one on your telephone you will then hear automated message of buys in your hand is right.
Speaker Change: So well draw your question. Please press star one again, please be advised that today's conference is being recorded.
Speaker Change: I'll now like to hand, the conference over to your first speaker today.
Speaker Change: Michelle She trial key corporate Treasurer. Please go ahead.
Speaker Change: Okay.
Speaker Change: Thank you operator, and good morning, everyone I'm joined today by Brad Martin Apm's, Chief Executive Officer, and Carlos Doug The only ATM Chief Financial Officer. This morning, we'll be reviewing our third quarter 2024 results and providing additional insights on the 'twenty 'twenty four outlook.
Speaker Change: As a reminder, we announced our 2024 third quarter results yesterday afternoon. After the market closed investors can find the earnings release and conference call Slide presentation on our Investor Relations website.
Speaker Change: Our earnings release and the presentation contains certain forward looking statements concerning our current expectations objectives and underlying assumptions regarding our future operations.
Speaker Change: The statements are subject to risks and uncertainties that could cause actual results to differ materially from those described.
Speaker Change: Also in an effort to provide useful information for investors. Our comments today include non-GAAP financial measures for details on these measures and reconciliations to comparable GAAP measures and for further information regarding the factors that may affect our future operating results. Please refer to our earnings release on our website.
I R. A T N I dot com or the 8-K filing provided to the SEC and now I'll turn the call over to Brad.
Brad Martin: Thank you Michele good morning, everyone and thank you for joining us for our fiscal third quarter 2024 earnings Conference call.
Brad Martin: We remain focused on executing our strategy to leverage our upgraded network assets and manage the business prudently aiming to increase cash flow drive margin improvements and deliver sustainable value to our shareholders and customers over the long term.
Brad Martin: Looking at our Q3 performance is a tale of two segments with progress in the international segment.
Brad Martin: Underperformance in our U S operations.
Brad Martin: While there are several bright spots in the third quarter, including strong free cash flow from operations.
Brad Martin: And international margin improvement driven by effective cost management.
Brad Martin: Our top and bottom line performance was affected by a few key factors.
Brad Martin: These included lower levels of non planned prepaid consumer mobility sales.
Brad Martin: Lower consumer sales execution in key U S markets.
Brad Martin: And under performance with enterprise and sales and deliveries specifically in Alaska.
Brad Martin: We had expected these revenue pipelines would offset more of the anticipated impact from the conclusion of the ACP and ETF government programs.
Brad Martin: These have not transpired at the pace projected.
Brad Martin: As a result, we are updating our full year financial outlook expectations.
Brad Martin: We are taking strategic actions to align our cost structure with current revenue levels, while focusing on margin improvement and cash flow generation.
Brad Martin: These actions include advancing cost efficiency initiatives.
Brad Martin: Optimizing value of our assets and leveraging our operating network and offerings to maintain market share and drive customer conversion to higher value services.
Brad Martin: With that let's take a look at our operational strategic highlights from the quarter within each segment.
Brad Martin: Starting with U S telecom.
Brad Martin: Based on our underperformance related to the previously mentioned dynamics.
In compression in market multiples, we reported a noncash $35 million goodwill impairment charge during the third quarter.
Brad Martin: We are assessing the best way to expand the value of the U S. Telecom segment as we focus on the growth of our business carrier and fiber fed consumer markets, while deemphasizing certain markets for consumer fixed wireless and mobility services.
Brad Martin: We believe there is significant opportunity to maximize the value of our existing and recently enhanced assets improve our underlying cost structures and augment company funded capital investments the available government funding such as the <unk> program to support a return to more normalized capital spending levels.
Brad Martin: Our reimbursable capital expenditures increased significantly year to date in Q3.
Brad Martin: This is due in part to the start of our construction phase of the previously announced grant wins totaling more than $280 million.
Brad Martin: These fiber based projects will further enhance the longevity of our assets and addressable markets to deliver future value for the business.
Brad Martin: While there is more work to do on our U S Telecom segment to stabilize and grow revenues and profitability. We are confident in our ability to leverage our position as a trusted partner with our carrier customers.
Brad Martin: Our recently strengthened executive sales leadership.
And our existing fiber based network assets to improve performance.
Brad Martin: Turning now to our international segment.
Brad Martin: While revenue remained flat, we achieved double digit growth in adjusted EBITDA.
Brad Martin: We experienced growth in sales for consumer and business fixed customers as well as business mobility.
Brad Martin: This was offset by consumer mobility revenue declines in Guyana, primarily due to competitive headwinds impacting low arco prepaid customers.
Brad Martin: Operationally, we saw continued strength in our international markets with the conversion of subscribers onto our high speed network with high speed data subscribers up 4% compared with last year.
International mobility, we continue to make progress on the quality of our subscriber base by transitioning customers to higher margin services, which we believe will make them more resilient.
Brad Martin: This progress is reflected in combined postpaid and prepaid plan revenue growth of five 7% quarter over quarter, and 28, 3% year over year.
Brad Martin: We have now launched <unk> in two of our international markets and in Q3, 60% of our total mobility revenue came from these two new <unk> capable networks.
Brad Martin: These upgrades were essential to the improvements in the quality of shifts we've seen in our subscriber base.
Brad Martin: A major milestone we achieved in Q3 and an important strategic step in our evolution with the launch of our new unified brand in our largest international market.
Brad Martin: One communications was rolled out in Guyana to drive a common brand strategy inefficiencies across our Caribbean markets. We expect the centralized go to market approach will enable the HCN international teams have further strengthened our already dominant number one or number two market position in mobile and in fixed two common technology architecture.
Brad Martin: And while continuing to improve profitability and cash flow.
Brad Martin: Before turning the call to Carlos I want to reiterate that our priorities have not changed.
Brad Martin: <unk> focused on capitalizing on our enhanced network capabilities and localized operations to capture high value revenue opportunities.
Brad Martin: While managing the business carefully to expand margins and free cash flows.
Brad Martin: As we near the end of our three year first of fiber in glass and steel investment cycle, we're reducing capital expenditures, although we continue to fund targeted network expansions through both internal resource.
Brad Martin: In government grant programs.
Brad Martin: Additionally, we remain committed to a disciplined approach to manage our balance sheet with a long term goal of gradually reducing leverage.
Brad Martin: While we are adjusting our expectations for 2024, we remain focused on executing our long term strategy, while acting nimbly to adapt to the near term headwinds.
Brad Martin: We're committed to positioning the company for sustainable long term growth and value creation for our shareholders.
Brad Martin: Cannot achieve this without the dedicated and hard working ATM team as well as the continued trust of our customers and partners.
Speaker Change: That I will hand, the call over to you Carlos.
Carlos Doug: Thank you Brian.
Carlos Doug: Good morning, everyone and thanks for joining us today.
Carlos Doug: Our focus remains on managing the business with an emphasis on optimizing value by improving cash flow and expanding margins through cost management driving positive returns on our high quality assets.
Carlos Doug: Although we faced topline headwinds primarily in our domestic markets.
Carlos Doug: There were some highlights in the quarter.
Carlos Doug: Most notably stronger year over year free cash generation from operations and improve margins in our international segment.
Carlos Doug: Let's review, our third quarter financial results in more detail.
Carlos Doug: Total company revenue of $178 5 million was down 7% compared with the same period in 2023.
Carlos Doug: The step down in revenue primarily reflects the conclusion of the emergency productivity and.
Carlos Doug: And affordable care programs, mostly impacting the U S telecom segment as well as a year over year reduction in construction revenues.
Carlos Doug: Operating loss in the third quarter was $38 4 million versus operating income of $6 8 million in Q3 of 223.
Carlos Doug: The operating loss includes a noncash $35 3 million goodwill impairment charge, we took in the quarter, which reflects the current U S market dynamics, Brad spoke about and the compression on market multiples.
Carlos Doug: Q3 operating income was also impacted by $3 8 million in transaction is related to our previously announced debt refinancing in Alaska.
Carlos Doug: $2 3 million of restructuring and reorganization expenses relates to the cost management efforts mentioned during our Q2 call.
Carlos Doug: Net loss was $32 7 million or $2 26 per share.
This compares with the prior year's net loss of $3 6 million or 31 cents per share.
Carlos Doug: The difference was mostly driven by the aforementioned factors as well as an increase in interest expense.
Carlos Doug: Adjusted EBITDA for the third quarter was $45 7 million down 5% from the year ago period, primarily as a result of the decline in revenues and margins in the U S Telecom segment.
Looking now at the segment's performance.
Beginning with our international segment.
Carlos Doug: Revenues of $94 3 million or essentially flat compared with the third quarter of last year as the softness in consumer mobility revenues related to competitive pressures were offset by solid fixed revenue gains and business, obviously the revenue growth.
Carlos Doug: Adjusted EBITDA grew to $32 2 million compared with $27 5 million in the third quarter of last year, an increase of 17, 3%.
Carlos Doug: This growth.
Carlos Doug: <unk> the continued benefit from previous restructuring efforts, which we expect to favorably impact year over year Q4 results in the international segment.
Carlos Doug: Our quarter was also impacted by one time rebranding investments we made in support of our common Brian launching Guyana as well as hurricane related costs.
In our domestic segment.
Carlos Doug: Third quarter revenues were $84 2 million.
Carlos Doug: 13% year over year.
Carlos Doug: Primarily due to the conclusion of the ECF on ACP government programs as well as a reduction in construction revenues.
Carlos Doug: Adjusted EBITDA for the domestic segment was $17 7 million down 34, 1% compared with the prior year, primarily due to the revenue related headwinds.
Carlos Doug: Direct costs.
Carlos Doug: Moving onto the balance sheet and cash flow highlights.
Carlos Doug: We ended the quarter with a net debt ratio of 239 times on total debt outstanding of $561 million.
Carlos Doug: Our net cash provided by operating activities was strong at 97 4 million for the first nine months of 2024.
Carlos Doug: Up from the $89 5 million in the prior year period.
Carlos Doug: This was driven primarily by our efforts to improve our working capital position to attention to cash collection cycles.
Carlos Doug: The transaction related fees I mentioned earlier are associated with the August refinancing of our Alaska facility.
The market conditions allowed us to increase our availability and extend the maturity through 2029.
Turning now to capital expenditures.
Carlos Doug: Capex during the first nine months of the year totaled $85 7 million.
Carlos Doug: Net of $71 8 million.
Carlos Doug: Ill Reimbursable capital expenditures.
Carlos Doug: This compares with $126 6 million.
Carlos Doug: Net up $14 $3 million in Reimbursable capital expenditures in the prior year.
Carlos Doug: It is important to point out that as you can see from the numbers. We continue to see government support is an important component.
Carlos Doug: The enhancement of our infrastructure and their rural U S.
Carlos Doug: During Q3, we returned capital to our shareholders through $3 6 million in dividends.
Carlos Doug: With that let's move to our guidance for the remainder of 2024.
Carlos Doug: Today, we are updating our outlook for full year 'twenty 'twenty four.
Carlos Doug: Reflect current expectations for near term operating performance.
Carlos Doug: Revenues for the full year are now expected in the range of $720 million to $730 million compared with our previous range of $730 to $750 million.
Carlos Doug: Adjusted EBITDA is now expected in the range of 82.
Carlos Doug: $488 million for the full year.
Carlos Doug: Compared with our previous range of kind of $90 million to $200 million.
Carlos Doug: We continue to expect capital expenditures in the range of $100 million to $110 million net of reimbursed amounts.
Carlos Doug: And with our revised adjusted EBITDA expectations, we now expect to exit the year with a net debt ratio of two three to $2 six times.
Carlos Doug: We continue to monitor that net debt ratio with the objective to bring down leverage closer to two times over the medium term.
Carlos Doug: In conclusion.
Carlos Doug: We continue to see positive momentum in our international business.
Carlos Doug: We believe that basis is solid and well positioned to recover from the competitive dynamics experienced in the past two quarters.
Carlos Doug: In the U S. We remain focused on driving margin and cash flow improvement.
Carlos Doug: As we navigate headwinds.
Carlos Doug: We are confident we are taking the appropriate strategic actions to solidify our execution in the U S market and adapt the business to the evolving market environment.
Carlos Doug: Thank you gave for your time today, and we look forward to updating you on our progress in the coming months.
Speaker Change: Now hand, the call back over to Brad.
Brad Martin: Thanks Carlos.
Brad Martin: We are confident that our strategy will enable ATM to deliver value to our shareholders employees customers partners and local communities for the long term.
Brad Martin: Our upgraded and expanded footprint skilled team and dedication to our mission empower us to provide a central connectivity to our customers expanding our markets and achieve profitable growth increased cash flow and value creation for our shareholders.
Brad Martin: With that operator, we'd like to open it up for questions.
Thank you so much.
Speaker Change: At this time, we will conduct a question answer session.
Speaker Change: As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced.
Speaker Change: Jay Your question. Please press star one one again.
Speaker Change: Please standby, while we compile the Q&A roster.
Our first question comes from the line of Ric Prentiss with Raymond James Your line is now open.
Ric Prentiss: Thanks, Good morning, everybody.
Speaker Change: Hi, Rick.
Ric Prentiss: Obviously, a tough quarter on the U S telecom side.
Speaker Change: You mentioned addressing margins on that side should we think of <unk> is this like horse cuts. So we're going to see a.
Speaker Change: Kind of a restructuring charge coming or what kind of timeframe.
Speaker Change: Does it take to kind of address and right size the cost given the revenues ever.
Speaker Change: Haven't really replace the ACP.
Speaker Change: And the ECF programs.
Speaker Change: A rig.
Speaker Change: Carlos I'll I'll take this one thanks for the question.
Speaker Change: As we talked about it in Q2 and.
Speaker Change: We are re dairy.
Speaker Change: A little bit this quarter.
Speaker Change: Saudi effort that we have been pursuing across the different segments.
Speaker Change: <unk> already tab, reflecting into the numbers.
Speaker Change: You saw some of the restructuring and reorganization charges.
Speaker Change: The efforts that are related to the USS segment are embedded there.
Speaker Change: And some of the benefits that we did in the in international as well you saw them not flowing through the numbers as well.
Speaker Change: In terms of some of the more structural.
Speaker Change: Change is that we are pursuing those.
Speaker Change: It's really take a little more time on.
We expect to see more of those benefits into 2025 and beyond.
Speaker Change: So.
Speaker Change: That's kind of the process we're pursuing.
Speaker Change: Okay.
Speaker Change: Then.
Speaker Change: I think it will continue.
Speaker Change: Continuing policy of de emphasis on fixed wireless and mobility.
Speaker Change: Spectrum.
Speaker Change: There's certainly an asset we've seen U S. Cellular proposal sale of a third of that spectrum to T mobile in that merger.
Speaker Change: The announcement of Verizon buying.
Speaker Change: Proposing the bias significant chunk of low band spectrum from U S. M. How should we think about your spectrum position.
Speaker Change: Is that something that might be an asset to monetize them ballpark wise I think we had you guys down at somewhere North of 100 million megahertz Pops, Let me just talk a little bit about spectrum asset.
Rick: So Rick yes, so spectrum certainly has been a key piece of our business within our U S market being our legacy mobile operator.
Rick: We're always looking at opportunities and how we can we can take advantage of nonstrategic assets.
Rick: We've talked about a deal last quarter, a small deal for spectrum.
Rick: Divestitures, so it's something that we're always looking at how do we extract the highest value from.
Rick: We obviously are still using spectrum.
Rick: For for certain service lines.
Rick: But certainly the exit of our <unk> mobility.
Rick: Which is something that that is in process as we speak.
Rick: It will certainly be something that we look at and something that we.
Rick: We are always looking to how we can optimize.
Rick: That particular asset base.
Speaker Change: As a way to kind of size, how much spectrum, you have or how much might be.
Speaker Change: Noncore, not supporting items or some way to kind of ballpark goalposts on it.
Speaker Change: No I'm not not directly Richard that's an evolving dynamic so that's not something we have here.
Speaker Change: Okay.
Speaker Change: And Carlos you mentioned that the.
Carlos Doug: Construction revenues were down year over year, it's fairly low margin business, but how should we think about first net or other construction projects as.
Carlos Doug: As far as what's left to go the rest of this year as we look into 'twenty five.
Carlos Doug: I think at this point right we have approximately.
Carlos Doug: $8 million.
Carlos Doug: Remaining revenues, there, but given some of the I believe.
Carlos Doug: Publicly known dynamics with some of the equipment choices et cetera.
Carlos Doug: Our <unk>.
Carlos Doug: The impact of the timing we see.
Carlos Doug: Most of that.
In 'twenty five.
Carlos Doug: Okay.
Carlos Doug: On the international front, our Walmart U S side.
Speaker Change: You mentioned.
Speaker Change: Leaders, our sales leadership change.
Speaker Change: What does that person bringing to the table.
Speaker Change: Our percent that that youre looking for them to change what's kind of the top missions for the new sales leadership.
Speaker Change: Yes, so sort of as I mentioned in our prepared remarks, I mean, we have had some challenges with with execution on both delivery and pipeline conversion.
Speaker Change: So we are really looking for and we have multiple new physicians.
Speaker Change: Filled around enterprise and carrier sales. So that's an area of driving disciplined process driving disciplined pipeline management.
Speaker Change: We're in a very mature enterprise market.
So and so we are bringing in new resourcing to help enhance our overall, our capacity and capability to deliver.
Speaker Change: Last one for me I think you mentioned.
On the international front.
Speaker Change: This is part of it but there could be some beneficial items coming into <unk> versus <unk>, because you had some hurricane, causing some rebranding costs can you help us kind of size what kind of <unk>.
Improvements, we might see in <unk> versus <unk> on the international side.
Speaker Change: I would say the way we think about it is that.
Speaker Change: There were over.
Speaker Change: $1 million of expenses related to some of the.
Speaker Change: The quarter specific items that we mentioned.
During our remarks.
Speaker Change: But in terms of that.
Speaker Change: Q4, we don't specifically give guidance on segment by segment what are order.
Speaker Change: The numbers you see that there is.
Speaker Change: The benefits from some of the effort that we pursue it.
Speaker Change: And those are included in the guidance.
Okay very good thanks.
Speaker Change: Thank you so much.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Greg Burns with Sidoti. Your line is now open.
Speaker Change: Good morning in the U S.
Speaker Change: You I guess characterize the demand environment.
Speaker Change: Relative to maybe where you thought it was.
Speaker Change: Six to 12 months ago. So I'm, just trying to kind of maybe better understand how much of this is just execution on your part or maybe versus maybe a shift in the market dynamics, which you arent werent expecting where maybe competitors are getting more competitive on pricing our offering.
Speaker Change: But what's not.
Speaker Change: Yes, so so really I think there is to distinguish between the two key areas consumer and enterprise.
Speaker Change: There are again very different dynamics happening in those.
Speaker Change: In those markets. So on the maybe on the enterprise carrier and wholesale.
Speaker Change: A lot of the debt, we do see strong demand and that is something a lot of the delays that we've had our misses that we've had have been more on delayed deals has not necessarily been the majority of certainly the delayed deals not sorry lost deals. We obviously you had some lost deals, but we do see the demand for broadband service.
Speaker Change: <unk>.
Speaker Change: Wholesale side.
<unk> two <unk> to grow so that's something that is encouraging for the business moving forward on the consumer side, Greg there are lot of dynamics in those specifically speak to the southwest.
Speaker Change: Where we had the larger largest impact on the ACP shutdown.
Speaker Change: That is there are couple of dynamics. One we are we have been in the process of deemphasizing and shutting down some of our legacy fixed wireless.
Speaker Change: Broadband service area as part of that is due to R&R part of that is just due to the remote nature and the profitability of certain sites. So that has been that has been a unique focus for us to rationalize where we have network and rationalize operations.
Speaker Change: A.
Competitive market it has changed.
Speaker Change: Fixed wireless.
Speaker Change: Access progress you see from the major carriers.
Speaker Change: That is a product set that as a new competitive dynamic as they overbuilt a.
Speaker Change: Dynamic for us as we actually get to participate in that because we sell to our carrier managed services services to those carriers, who can provide backhaul tower lease that flows through our enterprise and carrier lines.
Speaker Change: Surface. So that's.
Speaker Change: That's an area, where we are trying to focus where we have what we consider nextgen fixed wireless technology. This is north of 100 Megabits to 500 Megabits to Gigabits style solutions. We think those are very competitive with the <unk> fixed wireless service offerings. So when we talk about refocusing our efforts since it's where we have superior.
Speaker Change: <unk>, because it's very difficult to compete with with an inferior technology against the quality of those brands.
Speaker Change: If that makes sense got it yes, yes, and then I guess maybe this.
Speaker Change: Some of what you just said kind of leads to my next question, but I just want to understand the dynamic between I see the highest speed data subscribers are growing but.
Speaker Change: Total broadband subscribers are declining so is that due to this dynamic of network optimization.
Speaker Change: That's exactly it yes, we have it's a combination not only of fixed wireless network rationalization, but even fix we have legacy copper network that has been shutting down.
Speaker Change: As we have built overbuilt with fiber and some of our markets.
Speaker Change: Thank you.
Speaker Change: Thank you so much.
Speaker Change: As a reminder to ask a question you will need to press star one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Speaker Change: One moment for our next question please.
Speaker Change: Our next question comes from the line of Hanmi question with Dws Financial Your line is now open.
Speaker Change: Hey, good morning.
Speaker Change: Just some follow up here.
Speaker Change: I think all year, you've been talking about this.
Speaker Change: Loss of the ECF and ACP programs.
Speaker Change: So if you could just.
Speaker Change: Help me understand.
Speaker Change: Why that impact that you've been talking about all year now all of a sudden.
Speaker Change: You Werent ready for subscriber losses.
Speaker Change: Softness in consumer.
Speaker Change: So sorry, but yes, so maybe distinguish between the two programs so.
Speaker Change: <unk> was a program that went away.
Speaker Change: Earlier this year, we spoke about.
Speaker Change: The failure to fill that pipeline to.
Speaker Change: To backfill that pipeline on some deals.
Speaker Change: One of our markets so that has been.
Speaker Change: The ability to backfill that pipeline is one of the dynamics, we've been working towards all year.
So thats a distinguished between ACP ACP generally we have from a.
Speaker Change: Fiber.
Speaker Change: Maintenance of subscriber base through that transition actually roughly came in line with our expectations of dynamic with ACP that we did not predict our largest market, which is in the southwest of ACP subscribers.
Speaker Change: Which which lost about 28% of their of their consumer subscriber base.
Speaker Change: We are projecting keeping about keeping about losing about 30%. So we're actually a little better than we had planned but we did not plan for was the amount of work required to retain those customers. There was a four month period, where we were out reaching out to every customer renewing them and that had an impact on the ability to sell new so that was something.
Speaker Change: We did not foresee as it as impactful.
Speaker Change: And one of our southwest market so.
Speaker Change: That's a distinction between ECP and.
Speaker Change: In DCF.
Speaker Change: But they were ultimately big programs ACP was really announced after the start of the year. Our ECS, we knew about late last year.
Speaker Change: So that was something we were planning for.
And if that is still a dynamic of filling that significant pipeline both revenue and EBITDA.
Speaker Change: It's something that we're working towards.
Speaker Change: Okay, and then specifically to Alaska.
Speaker Change: Do you feel like.
Speaker Change: Market is just too mature and saturated with competition.
Speaker Change: Two.
Speaker Change: When more enterprise customers there.
Speaker Change: No. We don't we the market dynamics or market dynamics that we like we've got really great assets in that market, we've got great relationships in that market.
Speaker Change: We don't see that as the challenge, we see that the challenge as some execution challenges delivery delays has been a big dynamic there has been a challenge in that market.
Speaker Change: That's been the biggest impact on the performance to date and through the forecasted year.
Speaker Change: Okay. My last question is on Guyana.
Speaker Change: I remember talking about.
Re strategizing your approach to mobile there is it still a focus on postpaid.
Speaker Change: Or are you just focusing more on higher <unk> subscribers.
Speaker Change: Yes, so the focus in that market is continuing to upgrade the customer base to higher service isn't the primary focus is is data. So we talk about our plan based revenue. These are these are data plan customers that are getting a component of data along with their voice and that's where we've seen significant.
Speaker Change: <unk>.
Speaker Change: In the last year. So we are seeing the quality and importantly, we're seeing the consumption of data for market like Guyana, I mean, that's a really important data that we're seeing the consumption of data and Guyana really going up.
Speaker Change: That is where I think we're very well positioned.
Speaker Change: The quality of the network, we delivered there and.
And broadly the demand for ubiquitous data access is a very good market dynamic that we are we're happy seeing the results. What we are continuing to lose or very low <unk> voice customers too.
Speaker Change: <unk>.
Speaker Change: A new competitor in that market.
Speaker Change: And that's something that is we do think that that will the impact of that will we will start to limit as we get into 'twenty five but ultimately thats. The dynamic that we're we're fighting and I think ultimately we believe that data consumption trend is a great trend for us.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you so much.
Speaker Change: Showing no further questions at this time.
Speaker Change: I would now like to turn the call back over to Brad Martin for closing remarks.
Brad Martin: Thank you operator, thank you all for joining US today, we look forward to speaking with many of you in the months ahead. Thank you again for your time.
Brad Martin: Have a good day.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker Change: Yeah.
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