Q2 2026 Liberty Latin America Ltd Earnings Call

August 6, 2026

Operator: All participants in listen-only mode. Today's formal presentation materials can be found under 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, remarks 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 fact. Actual results may differ materially from those expressed or implied by these statements. 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.

Britta Reinhardt: All participants in listen-only mode. Today's formal presentation materials can be found under 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, remarks 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 fact.

Speaker #1: Or participants unlisten only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.la.com. Following today's formal presentation, instructions will be given for a question-and-answer session.

Speaker #1: As a reminder, this call is being recorded. Today remarks 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 fact.

Speaker #1: Actual results may differ materially from those expressed or implied by these statements. 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.

Britta Reinhardt: Actual results may differ materially from those expressed or implied by these statements. 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.Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based.

Speaker #1: Along with the associated press release. Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based.

Operator: Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. 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 investors section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Speaker #1: 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 Investors section of our website.

Britta Reinhardt: 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 investors section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Speaker #1: I would now like to turn the call over to our CEO, Mr. Balan Nair.

Speaker #2: Thank you, Britta, and welcome everyone to Liberty Latin America's second quarter 2026 results presentation. I will be running through our group highlights in an overview of our operating results before Chris Noyes, our CFO, reviews the company's financial performance.

Balan Nair: Thank you, Britta, and welcome everyone to Liberty Latin America's Q2 2026 results presentation. I will be running through our group highlights and an overview of our operating results before Chris Noyes, our CFO, reviews the company's financial performance. We'll then get straight to your questions. As always, I'm joined by my executive team from across our operations, and I'll invite them to contribute as needed during the Q&A following the prepared remarks. As a point of housekeeping, we'll both be working from slides, which you can find on our website at www.lla.com. Starting on slide four, in our highlights. The Q2 showed continued solid operational trends across large parts of the business. We added 45,000 mobile postpaid and broadband subscribers in the Q2, with all segments reporting positive contribution.

Speaker #2: We'll then get straight to your questions. As always, I'm joined by my executive team from across our operations, and I'll invite them to contribute as needed during the Q&A following a prepared remarks.

Speaker #2: As a point of housekeeping, we'll both be working from slides, which you can find on our website at www.la.com. Starting on slide 4, and I'll highlights.

Balan Nair: As a point of housekeeping, we'll both be working from slides, which you can find on our website at www.lla.com. Starting on slide four, in our highlights. The Q2 showed continued solid operational trends across large parts of the business. We added 45,000 mobile postpaid and broadband subscribers in the Q2, with all segments reporting positive contribution.

Speaker #2: The second quarter showed continued solid operational trends across large parts of the business. We added 45,000 mobile postpaid and broadband subscribers in the second quarter, with all segments reporting positive contributions.

Speaker #2: Strong postpaid mobile trends have become a feature of our results, and this quarter we will also pleased to see improvements in broadband subscriber adds, with momentum that extended across markets beyond the recovery in Jamaica.

Balan Nair: Strong postpaid mobile trends have become a feature of our results, and this quarter we were also pleased to see improvements in broadband subscriber adds, with momentum that extended across markets beyond the recovery in Jamaica. We reported 3% year-over-year rebased adjusted OIBDA growth in the Q2. This represents an acceleration on Q1 trends and sets us up for a strong H2. We also reported another improvement in adjusted free cash flow before distribution to partners which, for the H1 2026, was materially higher than in the same period last year. We already have cost efforts in flight, but we are excited additionally to have announced yesterday an AI-driven cost optimizing IT services deal with Amdocs. This agreement will help sustain continued investment in AI capabilities, innovation, and digital transformation.

Speaker #2: We also reported 3% year-over-year rebates adjusted or EBITDA growth in the second quarter. This represents an acceleration on Q1 trends and sets us up for a strong second half.

Speaker #2: We also reported another improvement in adjusted free cash flow before distribution to partners, which, for the first half of 2026, was materially higher than in the same period last year.

Balan Nair: We also reported another improvement in adjusted free cash flow before distribution to partners which, for the H1 2026, was materially higher than in the same period last year. We already have cost efforts in flight, but we are excited additionally to have announced yesterday an AI-driven cost optimizing IT services deal with Amdocs. This agreement will help sustain continued investment in AI capabilities, innovation, and digital transformation.

Speaker #2: We already have cost efforts in flight, but we are excited. Additionally, to have announced yesterday an AI-driven cost-optimizing IT services deal with MDocs. This agreement will help sustain continued investment in AI capabilities, innovation, and digital transformation.

Speaker #2: And it will help drive further material OPEX and CAPEX reductions going forward, as we strive to continue expanding both adjusted EBITDA margins and adjusted EBITDA less P&E addition margins over the coming years.

Balan Nair: It will help drive further material OpEx and CapEx reductions going forward as we strive to continue expanding both adjusted OIBDA margins and adjusted OIBDA less P&E additions margins over the coming years. We estimate the NPV value of this deal to be worth north of $250 million. Following our announced intention at the time of our Q1 earnings, we successfully completed the distribution of $500 million in preferred stock. This represents an attractive cash return for shareholders who have held onto the paper. In addition, it represents us leaning into the levered equity model as we have added gearing to the common equity. This distribution should therefore be read as an indication of our growing confidence in the prospects of our business over the coming years. Turning to share repurchases. We have continued purchasing our common equity through Q2 and more actively in July.

Speaker #2: We estimate the NPV value of this deal to be worth north of $250 million. Following our announced intention at the time of our Q1 earnings, we successfully completed the distribution of $500 million in preferred stock.

Speaker #2: This represents an attractive cash return for shareholders who have held onto the paper. In addition, it represents us leaning into the levered equity model as we have added gearing to the common equity.

Balan Nair: In addition, it represents us leaning into the levered equity model as we have added gearing to the common equity. This distribution should therefore be read as an indication of our growing confidence in the prospects of our business over the coming years. Turning to share repurchases. We have continued purchasing our common equity through Q2 and more actively in July.We continue to see a discount to fair value on our common stock.

Speaker #2: This distribution should therefore be read as an indication of our growing confidence in the prospects of our business over the coming years. Turning to share repurchases, we have continued purchasing our common equity through Q2 and more actively in July.

Speaker #2: We continue to see a discount to fair value on our common stock. In part, we feel this persists given perceived hindrance from Puerto Rico despite a clear commitment to fund Liberty Puerto Rico through local assets as exemplified by our recent financing activities.

Balan Nair: We continue to see a discount to fair value on our common stock. In part, we feel this persists given perceived headwinds from Puerto Rico, despite a clear commitment to fund Liberty Puerto Rico through local assets, as exemplified by our recent financing activities. However, we remain focused on value opportunities and appropriate capital allocation more broadly across the group, noting our recent sale agreement in Peru. Turning now to our operations. On slide five, we review our Liberty Caribbean segment. While we continue to see negative headwinds from Hurricane Melissa in Jamaica, the effect is clearly diminishing. On the top left of the slide, we show how Liberty Caribbean's postpaid subscriber base continued to expand, adding 11,000 postpaid subscribers, of which 6,000 were delivered in Jamaica in Q2, and with a healthy contribution from our South Caribbean markets.

Balan Nair: In part, we feel this persists given perceived headwinds from Puerto Rico, despite a clear commitment to fund Liberty Puerto Rico through local assets, as exemplified by our recent financing activities. However, we remain focused on value opportunities and appropriate capital allocation more broadly across the group, noting our recent sale agreement in Peru. Turning now to our operations. On slide five, we review our Liberty Caribbean segment.

Speaker #2: However, we remain focused on value opportunities and appropriate capital allocation more broadly across the group, noting our recent sale agreement in Peru. Turning now to our operations.

Speaker #2: On slide 5, we review our Liberty Caribbean segment. While we continue to see negative headwinds from Hurricane Melissa in Jamaica, the effect is clearly diminishing.

Balan Nair: While we continue to see negative headwinds from Hurricane Melissa in Jamaica, the effect is clearly diminishing. On the top left of the slide, we show how Liberty Caribbean's postpaid subscriber base continued to expand, adding 11,000 postpaid subscribers, of which 6,000 were delivered in Jamaica in Q2, and with a healthy contribution from our South Caribbean markets.In June, we were the first operator to launch 5G in Jamaica.

Speaker #2: On the top left of the slide, we show how Liberty Caribbean's postpaid subscriber base continued to expand, adding 11,000 postpaid subscribers. Of which 6,000 were delivered in Jamaica in the second quarter and with a healthy contribution from our South Caribbean markets.

Speaker #2: In June, we were the first operator to launch 5G in Jamaica. The service covers approximately 70% of the population, and is available to our postpaid subscribers both under residential and enterprise size, and should help maintain postpaid momentum.

Balan Nair: In June, we were the first operator to launch 5G in Jamaica. The service covers approximately 70% of the population and is available to our postpaid subscribers both on the residential and enterprise side and should help maintain postpaid momentum. Our market leading FMC offers continue to drive postpaid growth as we increase the penetration of our existing fixed subscriber base. We are also excited about our latest initiative in the Caribbean, Unbeatable Network, which is focused on the quality assurance of our fixed network, as well as mobile connectivity enhancements, helping to further drive FMC adoption. The Unbeatable campaign is now live in Jamaica and Cayman and coming soon to other Liberty Caribbean markets, as well as being deployed across the broader LLA group. In the Caribbean, it encompasses the unique concept of an always-on network, both in fixed and mobile.

Balan Nair: The service covers approximately 70% of the population and is available to our postpaid subscribers both on the residential and enterprise side and should help maintain postpaid momentum. Our market leading FMC offers continue to drive postpaid growth as we increase the penetration of our existing fixed subscriber base.

Speaker #2: Our market-leading FMC offers continue to drive postpaid growth as we increase the penetration of our existing fixed subscriber base. We are also excited about our latest initiative in the Caribbean unbeatable network, which is focused on the quality assurance of our fixed network, as well as mobile connectivity enhancements helping to further drive FMC adoption.

Balan Nair: We are also excited about our latest initiative in the Caribbean, Unbeatable Network, which is focused on the quality assurance of our fixed network, as well as mobile connectivity enhancements, helping to further drive FMC adoption. The Unbeatable campaign is now live in Jamaica and Cayman and coming soon to other Liberty Caribbean markets, as well as being deployed across the broader LLA group. In the Caribbean, it encompasses the unique concept of an always-on network, both in fixed and mobile.

Speaker #2: The unbeatable campaign is now live in Jamaica and Cayman, and coming soon to other Liberty Caribbean markets. As well as being deployed across the broader LLA group.

Speaker #2: In the Caribbean, it encompasses the unique concept of an always-on network both in fixed and mobile. On the one hand, fixed broadband is backed up by an automatic and seamless transition from home Wi-Fi to the mobile network to manage power outages further supported by Wi-Fi 6 and Plume Smart Wi-Fi for improved in-home connectivity.

Balan Nair: On the one hand, fixed broadband is backed up by an automatic and seamless transition from home Wi-Fi to the mobile network to manage power outages, further supported by Wi-Fi 6 and Plume smart Wi-Fi for improved in-home connectivity. On the other hand, mobile connectivity is backed up by satellite through our Starlink B2C partnership. On the bottom left of the slide, we show how the internet net adds performance have been quite consistent. It is worth noting that the net adds figures exclude offline subscribers reconnected in the period in Jamaica. As a reminder, these were offline customers we retained in our subscriber count through the outage period who are now back on the network and once again, revenue generating. In Jamaica specifically, we continue to recover revenue to its pre-hurricane levels.

Speaker #2: On the other hand, mobile connectivity is backed up by satellite through our Starlink DTC partnership. On the bottom left of the slide, we show how the internet net adds performance have been quite consistent.

Speaker #2: It is worth noting that the net adds figures exclude offline subscribers reconnected in the period in Jamaica. As a reminder, these were offline customers we retained in our subscriber count through the outage period who are now back on the network and once again revenue generating.

Balan Nair: As a reminder, these were offline customers we retained in our subscriber count through the outage period who are now back on the network and once again, revenue generating. In Jamaica specifically, we continue to recover revenue to its pre-hurricane levels.This reflects a combination of recovery in residential fixed and B2B, as well as a stronger performance in mobile. Overall, Liberty Caribbean is anchored by great products, upgraded networks, stable markets, and Jamaica recovering.

Speaker #2: In Jamaica specifically, we continue to recover revenue to its pre-hurricane levels. This reflects a combination of recovery in residential fixed and B2B, as well as a stronger performance in mobile.

Balan Nair: This reflects a combination of recovery in residential fixed and B2B, as well as a stronger performance in mobile. Overall, Liberty Caribbean is anchored by great products, upgraded networks, stable markets, and Jamaica recovering. Both our consumer and B2B segments are in good health. On slide six, we review Cable & Wireless Panama, which as a segment provided the highest subscriber additions in the group in Q2 across postpaid and broadband. On mobile, we continue to see postpaid as a strong driver, reporting double digit year-over-year subscriber growth. FMC continues to increase, running at over 40%. While we see ongoing prepaid to postpaid migration, we are still also growing the prepaid subscriber base in Panama. With the industry having had some pushback on prepaid price increases in Q1, recent regulatory commentary has been more supportive on the broader pricing environment. In July, we initiated price increases on postpaid.

Speaker #2: Overall, Liberty Caribbean is anchored by great products, upgraded networks, stable markets, and Jamaica recovery. Both our consumer and B2B segments are in good health.

Balan Nair: Both our consumer and B2B segments are in good health. On slide six, we review Cable & Wireless Panama, which as a segment provided the highest subscriber additions in the group in Q2 across postpaid and broadband. On mobile, we continue to see postpaid as a strong driver, reporting double digit year-over-year subscriber growth. FMC continues to increase, running at over 40%. While we see ongoing prepaid to postpaid migration, we are still also growing the prepaid subscriber base in Panama.

Speaker #2: On slide 6, we review cable and wireless Panama which has a segment provided the highest subscriber additions in the group in Q2 across postpaid and broadband.

Speaker #2: On mobile, we continue to see postpaid as a strong driver reporting double-digit year-over-year subscriber growth. FMC continues to increase, running at over 40%. While we see ongoing prepaid to postpaid migration, we are still also growing the prepaid subscriber base in Panama.

Speaker #2: With the industry having had some pushback on prepaid price increases in Q1, recent regulatory commentary has been more supportive on the broader pricing environment, and in July, we initiated price increases on postpaid.

Balan Nair: With the industry having had some pushback on prepaid price increases in Q1, recent regulatory commentary has been more supportive on the broader pricing environment. In July, we initiated price increases on postpaid.Initial feedback has validated this approach, so far seeing lower customer care contact volumes and reduced churn relative to historical pricing actions. To further enhance our mobile service, in Q2, we announced a partnership with Starlink, similar to the one we previously announced in Costa Rica.

Speaker #2: Initial feedback has validated this approach, so far seeing lower customer care contact volumes and reduced churn relative to historical pricing actions. The further enhance our mobile service in the second quarter we announced a partnership with Starlink, similar to the one we previously announced in Costa Rica.

Balan Nair: Initial feedback has validated this approach, so far seeing lower customer care contact volumes and reduced churn relative to historical pricing actions. To further enhance our mobile service, in Q2, we announced a partnership with Starlink, similar to the one we previously announced in Costa Rica. On the fixed side, we have shown a sharp increase in residential broadband subscriber adds to 10,000 in Q2, reflecting successful commercial activities focused on quality first, driving higher gross adds as well as a significant decline in churn versus Q1. We also registered strong net adds to both video and voice in Q2. As with postpaid mobile, we initiated fixed price increases in July and early feedback here has also been supportive.

Speaker #2: On the fixed side, we have shown a sharp increase in residential broadband subscriber adds to 10,000 in the second quarter, reflecting successful commercial activities focused on quality-first, driving higher gross adds as well as a significant decline in churn versus Q1.

Balan Nair: On the fixed side, we have shown a sharp increase in residential broadband subscriber adds to 10,000 in Q2, reflecting successful commercial activities focused on quality first, driving higher gross adds as well as a significant decline in churn versus Q1. We also registered strong net adds to both video and voice in Q2. As with postpaid mobile, we initiated fixed price increases in July and early feedback here has also been supportive.

Speaker #2: We also registered strong net adds to both video and voice in the second quarter. As with postpaid mobile, we initiated fixed price increases in July and early feedback here has also been supportive.

Speaker #2: We look forward to the rollout of our unbeatable campaign in Panama underpinned by always-on Wi-Fi in the home and strengthened with the must Starlink launch for mobile.

Balan Nair: We look forward to the rollout of our Unbeatable campaign in Panama, underpinned by always-on Wi-Fi in the home and strengthened with the mass Starlink launch for mobile. On B2B, we continue to see a healthy pipeline, including activity around government project delivery and execution. This is our typical cycle in B2B being H2 weighted. All in all, we are growing our operating metrics, we are innovating in products, and we are setting up for a good H2 in Panama. Turning to slide seven and Liberty Networks, which recorded the best year-over-year revenue growth across the LLA group in Q2. On our wholesale business, we recorded an increase in revenue growth to 14% year-over-year, driven this quarter by a healthy contribution from our project in El Salvador.

Speaker #2: On B2B, we continue to see a healthy pipeline, including activity around government project delivery and execution. This is our typical cycle in B2B being second half weighted.

Speaker #2: All in all, we are growing our operating metrics, we are innovating in products, and we are setting up for a good second half in Panama.

Speaker #2: Turning to slide 7 and Liberty Networks, which recorded the best year-over-year revenue growth across the LLA group in Q2. On our wholesale business, we recorded an increase in revenue growth to 14% year-over-year driven this quarter by a healthy contribution from our project in El Salvador.

Balan Nair: Turning to slide seven and Liberty Networks, which recorded the best year-over-year revenue growth across the LLA group in Q2. On our wholesale business, we recorded an increase in revenue growth to 14% year-over-year, driven this quarter by a healthy contribution from our project in El Salvador.We have a strong and productive working relationship with the government of El Salvador and have continued to deliver on the milestones required for the successful completion of this project.

Speaker #2: We have a strong and productive working relationship with the government of El Salvador and have continued to deliver on the milestones required for the successful completion of this project.

Balan Nair: We have a strong and productive working relationship with the government of El Salvador and have continued to deliver on the milestones required for the successful completion of this project. More broadly in wholesale, we see continued underlying demand for subsea capacity from international and regional carriers and increasingly from hyperscalers. We are also recognizing recent changes in the geopolitical environment in Venezuela as providing opportunities to invest for further potential growth. Working alongside CANTV, we are launching Fénix, a submarine cable system that will have an extension of 378 km and will provide 14 TB of capacity utilizing the Americas II route. This is a modest investment, but will enable direct access to Caracas market, which represents about half of Venezuela's total business traffic and the country's largest concentration of enterprise and carrier demand.

Speaker #2: More broadly, in wholesale, we see continued underlying demand for subsea capacity. From international and regional carriers, an increasingly from hyperscalers. We are also recognizing recent changes in the geopolitical environment in Venezuela as providing opportunities to invest for further potential growth.

Balan Nair: More broadly in wholesale, we see continued underlying demand for subsea capacity from international and regional carriers and increasingly from hyperscalers. We are also recognizing recent changes in the geopolitical environment in Venezuela as providing opportunities to invest for further potential growth. Working alongside CANTV, we are launching Fénix, a submarine cable system that will have an extension of 378 km and will provide 14 TB of capacity utilizing the Americas II route.

Speaker #2: Working alongside CANTV, we are launching Phoenix, a submarine cable system that will have an extension of 378 kilometers and will provide 14 terabytes of capacity utilizing the America's 2 route.

Speaker #2: This is a modest investment, but will enable direct access to Caracas market which represents about half of Venezuela's total business traffic and the country's largest concentration of enterprise and carrier demand.

Balan Nair: This is a modest investment, but will enable direct access to Caracas market, which represents about half of Venezuela's total business traffic and the country's largest concentration of enterprise and carrier demand.While still early days for Venezuela, this positions Liberty Networks well with a third network connection point to support Venezuela's critical industries and a return to economic growth and broader prosperity for the country.

Speaker #2: While still early days for Venezuela, this positions Liberty Networks well with a third network connection point to support Venezuela's critical industries and a return to economic growth and broader prosperity for the country.

Balan Nair: While still early days for Venezuela, this positions Liberty Networks well with a third network connection point to support Venezuela's critical industries and a return to economic growth and broader prosperity for the country. Meanwhile, revenue growth in our enterprise business remains robust at low single digit levels. The Liberty Networks business continues to be a strong cash generator with a unique set of assets that provide a meshed and resilient grouping of network systems that we are carefully expanding with new and value-accretive routes. Turning to slide eight and Liberty Costa Rica, which remains one of our most dynamic markets and where cost-cutting efforts are starting to flow. On the fixed side, we continue to hold firm on volumes in the competitive fixed market, registering 2,000 broadband adds in Q2.

Speaker #2: Meanwhile, revenue growth in our enterprise business remains robust at low single-digit levels. The Liberty Networks business continues to be a strong cash generator with a unique set of assets that provide a meshed and resilient grouping of network systems that we are carefully expanding with new and value-accretive routes.

Balan Nair: Meanwhile, revenue growth in our enterprise business remains robust at low single digit levels. The Liberty Networks business continues to be a strong cash generator with a unique set of assets that provide a meshed and resilient grouping of network systems that we are carefully expanding with new and value-accretive routes. Turning to slide eight and Liberty Costa Rica, which remains one of our most dynamic markets and where cost-cutting efforts are starting to flow.

Speaker #2: Turning to slide 8 and Liberty Costa Rica, which remains one of our most dynamic markets and where cost-cutting efforts are starting to flow. On the fixed side, we continue to hold firm on volumes in the competitive fixed market, registering 2,000 broadband adds in the second quarter.

Balan Nair: On the fixed side, we continue to hold firm on volumes in the competitive fixed market, registering 2,000 broadband adds in Q2.Fixed ARPU remains under some pressure, though sequentially, fixed subscription revenue was relatively stable, with volume support coming also from net adds to video and voice in Q2 as we continue to nudge up our bundling ratio.

Speaker #2: Fixed ARPU remains under some pressure, though sequentially fixed subscription revenue was relatively stable with volume support coming also from net adds to video and voice in the second quarter.

Balan Nair: Fixed ARPU remains under some pressure, though sequentially, fixed subscription revenue was relatively stable, with volume support coming also from net adds to video and voice in Q2 as we continue to nudge up our bundling ratio. On the mobile side, while we have seen somewhat more elevated competition in postpaid in recent quarters, the lighter edition performance in Q2 was additionally impacted by a planned and temporary pause as we migrated to new sales channels as part of our cost savings program. The run rate in July is already back to historic levels. We are also eagerly awaiting the commercial launch of Liberty Starlink in H2 of the year to help further differentiate our mobile offering. Anticipating this launch, we recently applied a price increase to reflect the improved offer coming soon, which will be available to the majority of our customer base.

Speaker #2: As we continue to nudge up our bundling ratio. On the mobile side, while we have seen somewhat more elevated competition in postpaid in recent quarters, the lighter additions performance in Q2 was additionally impacted by a plan and temporary pause as we migrated to new sales channels as part of our cost-savings program.

Balan Nair: On the mobile side, while we have seen somewhat more elevated competition in postpaid in recent quarters, the lighter edition performance in Q2 was additionally impacted by a planned and temporary pause as we migrated to new sales channels as part of our cost savings program. The run rate in July is already back to historic levels. We are also eagerly awaiting the commercial launch of Liberty Starlink in H2 of the year to help further differentiate our mobile offering.

Speaker #2: The run rate in July is already back to historic levels. We are also eagerly awaiting the commercial launch of Liberty Starlink in the second half of the year.

Speaker #2: To help further differentiate our mobile offering, anticipating this launch, we recently applied a price increase to reflect the improved offer coming soon which will be available to the majority of our customer base.

Balan Nair: Anticipating this launch, we recently applied a price increase to reflect the improved offer coming soon, which will be available to the majority of our customer base.Finally, as Chris will talk to, we are beginning to see our cost reduction initiatives in Costa Rica come through in the numbers, helping drive strong year-over-year adjusted OIBDA growth.

Speaker #2: Finally, and as Chris will talk to, we are beginning to see our cost reduction initiatives in Costa Rica come through in the numbers. Helping drive strong year-over-year adjusted OIBIDA growth.

Balan Nair: Finally, as Chris will talk to, we are beginning to see our cost reduction initiatives in Costa Rica come through in the numbers, helping drive strong year-over-year adjusted OIBDA growth. Combined with our 5G mobile network, our nationwide 1 Gb per second broadband network, a good economy, and our focus on repositioning B2B in this market, we are positive on H2 of this year. Turning to slide nine and Liberty Puerto Rico. On the mobile side, we continue to advance our postpaid subscriber base, registering positive adds for the third consecutive quarter. Postpaid growth adds remain robust, while churn has improved quite significantly over the course of H1. Our postpaid port-in data continues to improve and as of end of July, show we are net gainers versus both players in the market for the first time since the migration.

Speaker #2: Combined with our 5G mobile network, our nationwide 1 gigabit per second broadband network, a good economy, and our focus on repositioning B2B in this market, we are positive on the second half of this year.

Balan Nair: Combined with our 5G mobile network, our nationwide 1 Gb per second broadband network, a good economy, and our focus on repositioning B2B in this market, we are positive on H2 of this year. Turning to slide nine and Liberty Puerto Rico. On the mobile side, we continue to advance our postpaid subscriber base, registering positive adds for the third consecutive quarter. Postpaid growth adds remain robust, while churn has improved quite significantly over the course of H1.

Speaker #2: Turning to slide 9 and Liberty Puerto Rico. On the mobile side, we continue to advance our postpaid subscriber base, registering positive adds for the third consecutive quarter.

Speaker #2: Postpaid growth adds remain robust, while churn has improved quite significantly over the course of the first half. Our postpaid port-in data continues to improve and, as of the end of July, shows we are net gainers versus both players in the market for the first time since the migration.

Balan Nair: Our postpaid port-in data continues to improve and as of end of July, show we are net gainers versus both players in the market for the first time since the migration.Volumes here are being supported by a SIM-only offer, Liberty SIMple, providing for attractive economics given the absence of subsidies. On prepaid, meanwhile, we are also seeing a more stable subscriber base, and with the Boost migration behind us, we can now turn our attention to growing this base over the coming quarters.

Balan Nair: Volumes here are being supported by a SIM-only offer, Liberty SIMple, providing for attractive economics given the absence of subsidies. On prepaid, meanwhile, we are also seeing a more stable subscriber base, and with the Boost migration behind us, we can now turn our attention to growing this base over the coming quarters. On the residential fixed business, we continue to see better momentum through Q2. We registered a further reduction in broadband churn in Q2, having steadily improved now in each of the last three quarters. Fixed churn at Liberty Puerto Rico is one of the lowest across the LLA group. Gross adds, meanwhile, are additionally beginning to benefit from rapid growth in the much smaller USVI business within this segment. At the start of Q3, we went live in an above-the-line campaign on Unbeatable Network in Puerto Rico.

Speaker #2: Volumes here are being supported by a SIM-only offer Liberty Simple, providing for attractive economics given the absence of subsidies. On prepaid, meanwhile, we are also seeing a more stable subscriber base and with the booths migration behind us, we can now turn our attention to growing this base over the coming quarters.

Speaker #2: On the residential fixed business, we continue to see better momentum through Q2. We registered a further reduction in broadband churn in Q2, having steadily improved now in each of the last three quarters.

Balan Nair: On the residential fixed business, we continue to see better momentum through Q2. We registered a further reduction in broadband churn in Q2, having steadily improved now in each of the last three quarters. Fixed churn at Liberty Puerto Rico is one of the lowest across the LLA group. Gross adds, meanwhile, are additionally beginning to benefit from rapid growth in the much smaller USVI business within this segment. At the start of Q3, we went live in an above-the-line campaign on Unbeatable Network in Puerto Rico.

Speaker #2: Fixed churn at Liberty Puerto Rico is one of the lowest across the LLA group. Gross adds, meanwhile, are additionally beginning to benefit from rapid growth in the much smaller USVI business within the segment.

Speaker #2: At the start of Q3, we went live in an above-the-line campaign on unbeatable network in Puerto Rico. Frequent power outages on the island suggest mobile backup to fixed broadband should resonate well and further cement fixed broadband's customer stickiness.

Balan Nair: Frequent power outages on the island suggest mobile backup to fixed broadband should resonate well and further cement fixed broadband's customer stickiness. We have also capitalized on our video superiority on the island. With the full lineup of local channels and a Spanish tier, we have delivered two consecutive quarters of positive video net adds. This turnaround is driven by both sides of the funnel. Gross adds are up approximately 50%, while churn has stabilized at healthier levels. On the back of this recovered base, we executed a $2 per month rate increase across the TV portfolio. This trend relies on the quality of the local content, and volume trends here are a marked contrast to current video trends seen in other markets such as the mainland US.

Speaker #2: We have also capitalized on our video superiority on the island. With the full lineup of local channels and the Spanish tier, we have delivered two consecutive quarters of positive video net adds.

Speaker #2: This turnaround is driven by both sides of the funnel. Gross adds are up approximately 50% while churn has stabilized at healthier levels. On the back of this recovered base, we executed a $2 per month rate increase across the TV portfolio.

Balan Nair: On the back of this recovered base, we executed a $2 per month rate increase across the TV portfolio. This trend relies on the quality of the local content, and volume trends here are a marked contrast to current video trends seen in other markets such as the mainland US.With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Speaker #2: This trend relies on the quality of the local content and volume trends here are a marked contrast to current video trends seen in other markets such as the mainland US.

Speaker #2: And with that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions.

Balan Nair: With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Speaker #2: Chris, thanks, Balan.

Chris Noyes: Thanks, Balan. Beginning on slide 11. Q2 2026 revenue was $1.1 billion, up 1% reported and flat on a rebased basis, while adjusted OIBDA was $436 million in the quarter, reflecting 3% rebased growth over Q2 2025. There are a number of high-level items to point out before we dig into the specific operations. Liberty Networks was our strongest performer in the quarter, including delivery of double-digit rebased revenue growth. Liberty Caribbean's results were impacted by the aforementioned Hurricane Melissa headwinds. Residential mobile service revenue expansion continues to be a bright spot across the group as we capitalize on FMC and prepaid to postpaid migration strategies. Focused savings initiatives across the group on both direct costs and OpEx are contributing to our consolidated adjusted OIBDA margin of 40% in approximate 130 basis points year-over-year improvement. Finally, both consolidated revenue and adjusted OIBDA grew sequentially over Q1 2026 results.

Speaker #1: Beginning on slide 11, Q2 2026 revenue was $1.1 billion up 1% reported and flat on a rebase basis, while adjusted OIBIDA was $436 million in the quarter reflecting 3% rebase growth over Q2 2025.

Speaker #1: There are a number of high-level items to point out before we dig into the specific operations. Liberty Networks was our strongest performer in the quarter, including delivery of double-digit rebase revenue growth.

Speaker #1: Liberty Caribbean's results were impacted by the aforementioned hurricane Melissa headwinds. Residential mobile service revenue expansion continues to be a bright spot across the group as we capitalize on FMC and prepaid to postpaid migration strategies.

Chris Noyes: Residential mobile service revenue expansion continues to be a bright spot across the group as we capitalize on FMC and prepaid to postpaid migration strategies. Focused savings initiatives across the group on both direct costs and OpEx are contributing to our consolidated adjusted OIBDA margin of 40% in approximate 130 basis points year-over-year improvement. Finally, both consolidated revenue and adjusted OIBDA grew sequentially over Q1 2026 results.

Speaker #1: Focused savings initiatives across the group on both direct costs and opex are contributing to our consolidated adjusted OIBIDA margin of 40%. In the approximate $130 basis points year over year improvement.

Speaker #1: And finally, both consolidated revenue and adjusted OIBIDA grew sequentially over Q1 2026 results. Slide 12 recaps our Q2 results for the CNW credit silo.

Chris Noyes: Slide 12 recaps our Q2 results for the C&W credit silo. Starting with Liberty Caribbean, in Q2, LC reported $362 million in revenue and $165 million in adjusted OIBDA, reflecting rebased year-over-year declines. The principal driver of declines stemmed from Hurricane Melissa, which impacted LC by roughly $6 million net across both revenue and adjusted OIBDA. Notwithstanding this headwind, our recovery continues to progress very well, and we are on tap for much improved results in Q4. A key highlight in the quarter was continued success in residential mobile, as LC delivered 4% rebased revenue growth on the back of FMC and pricing actions taken in the past quarters. Next, moving to Panama. CWP generated $177 million of revenue and $65 million of adjusted OIBDA during the quarter, with revenue flat and adjusted OIBDA down 5% year-over-year.

Speaker #1: Starting with Liberty Caribbean, in Q2 LC reported $362 million in revenue and $165 million in adjusted OIBIDA reflecting rebase year over year declines. The principal driver of declines stemmed from hurricane Melissa which impacted LC by roughly $6 million net across both revenue and adjusted OIBIDA.

Speaker #1: Notwithstanding this headwind, our recovery continues to progress very well and we are on tap for much improved results in Q4. A key highlight in the quarter was continued success in residential mobile as LC delivered 4% rebase revenue growth on the back of FMC and pricing actions taken in the past quarters.

Chris Noyes: A key highlight in the quarter was continued success in residential mobile, as LC delivered 4% rebased revenue growth on the back of FMC and pricing actions taken in the past quarters. Next, moving to Panama. CWP generated $177 million of revenue and $65 million of adjusted OIBDA during the quarter, with revenue flat and adjusted OIBDA down 5% year-over-year.

Speaker #1: Next moving to Panama, CWP generated $177 million of revenue and $65 million of adjusted OIBIDA during the quarter. With revenue flat and adjusted OIBIDA down 5% year over year.

Speaker #1: In terms of revenue, lower B2B revenue in the quarter offset modest year over year growth in both residential mobile and fixed which was supported by underlying subscriber momentum in postpaid and fixed subscribers.

Chris Noyes: In terms of revenue, lower B2B revenue in the quarter offset modest year-over-year growth in both residential mobile and fixed, which was supported by underlying subscriber momentum in postpaid and fixed subscribers. Adjusted OIBDA was impacted by lower B2B revenue and higher professional services costs, while the margin remained healthy at 37% in Q2. Turning to Liberty Networks. LN delivered $130 million in revenue and $67 million in adjusted OIBDA, representing rebased growth of 10% and 9%, respectively. Rebased wholesale revenue increased 14%, supported by the second milestone on our El Salvador subsea project and continued momentum in sales of lease capacity. Additionally, rebased enterprise revenue grew 3% with strength in IT services. Aggregating all three operating segments within the C&W credit silo. The silo generated $649 million in revenue, up 1% rebased, and $297 million in adjusted OIBDA, down 2% rebased.

Speaker #1: Adjusted OIBIDA was impacted by lower B2B revenue and higher professional services costs while the margin remained healthy at 37% in Q2. Turning to Liberty Networks, LN delivered $130 million in revenue and $67 million in adjusted OIBIDA representing rebase growth of 10% and 9% respectively.

Speaker #1: Rebased wholesale revenue increased 14% supported by the second milestone on our El Salvador subsea project and continued momentum in sales of lease capacity. Additionally, rebase enterprise revenue grew 3% with strength in IT services.

Chris Noyes: Rebased wholesale revenue increased 14%, supported by the second milestone on our El Salvador subsea project and continued momentum in sales of lease capacity. Additionally, rebased enterprise revenue grew 3% with strength in IT services. Aggregating all three operating segments within the C&W credit silo. The silo generated $649 million in revenue, up 1% rebased, and $297 million in adjusted OIBDA, down 2% rebased.Moving to slide 13 and the Q2 results for our other two credit silos.

Speaker #1: Aggregating all three operating segments within the CNW credit silo, the silo generated $649 million in revenue up 1% rebase and $297 million in adjusted OIBIDA down 2% rebase.

Speaker #1: Moving to slide 13 and the Q2 results for our other two credit silos. On the left, Liberty Costa Rica. LCR delivered Q2 revenue of $169 million and adjusted OIBDA of $64 million in Q2.

Chris Noyes: Moving to slide 13 and the Q2 results for our other two credit silos. On the left, Liberty Costa Rica. LCR delivered Q2 revenue of $169 million and adjusted OIBDA of $64 million in Q2. Rebased revenue was flat in the quarter as residential mobile revenues growth of 6% was offset by continued year-over-year declines in both residential fixed and B2B. However, relative to Q1's rebased decline in revenue, LCR did demonstrate top-line improvement in the quarter. LCR delivered rebased adjusted OIBDA growth of 7% in Q2 and margin expansion of approximately 200 basis points to 38%. This strong result reflects, in part, the positive impact from the operating team's cost out and efficiency program. Concluding with Liberty Puerto Rico on the right.

Chris Noyes: On the left, Liberty Costa Rica. LCR delivered Q2 revenue of $169 million and adjusted OIBDA of $64 million in Q2. Rebased revenue was flat in the quarter as residential mobile revenues growth of 6% was offset by continued year-over-year declines in both residential fixed and B2B. However, relative to Q1's rebased decline in revenue, LCR did demonstrate top-line improvement in the quarter. LCR delivered rebased adjusted OIBDA growth of 7% in Q2 and margin expansion of approximately 200 basis points to 38%.

Speaker #1: Rebase revenue was flat in the quarter as residential mobile revenues growth of 6% was offset by continued year over year declines in both residential fixed and B2B.

Speaker #1: However, relative to Q1's rebase decline in revenue, LCR did demonstrate topline improvement in the quarter. LCR delivered rebase-adjusted OIBDA growth of 7% in Q2 and margin expansion of approximately 200 basis points to 38%.

Speaker #1: This strong result reflects in part the positive impact from the operating team's cost out and efficiency program. Concluding with Liberty Puerto Rico on the right.

Chris Noyes: This strong result reflects, in part, the positive impact from the operating team's cost out and efficiency program. Concluding with Liberty Puerto Rico on the right.LPR posted Q2 revenue of $288 million, representing a 5% year-over-year rebased decline as both residential mobile and fixed experienced single-digit declines, while B2B was flat year over year. Of particular note, sequentially, residential mobile subscription revenue expanded modestly from Q1 levels as postpaid subscriber momentum takes hold and given the improvement in ARPU.

Speaker #1: LPR posted Q2 revenue of $288 million representing a 5% year over year rebase decline as both residential mobile and fixed experienced single-digit declines while B2B was flat year over year.

Chris Noyes: LPR posted Q2 revenue of $288 million, representing a 5% year-over-year rebased decline as both residential mobile and fixed experienced single-digit declines, while B2B was flat year over year. Of particular note, sequentially, residential mobile subscription revenue expanded modestly from Q1 levels as postpaid subscriber momentum takes hold and given the improvement in ARPU. Adjusted OIBDA was $93 million, up 7% year over year on a rebased basis, and the adjusted OIBDA margin expanded to 32%, up from 29% last year. Turning to slide 14. On the left, P&E additions were $179 million in Q2 and $289 million year to date, representing 16% and 13% of revenue, respectively. As expected, Q2 spend was significantly higher than Q1 as a result of seasonality and phasing of key investment projects.

Speaker #1: Of particular note, sequentially expanded modestly from Q1 levels as postpaid subscriber momentum takes hold and given the improvement in our pool. Adjusted OIBIDA was $93 million up 7% year over year on a rebase basis and the adjusted OIBIDA margin expanded to 32% up from $29% last year.

Chris Noyes: Adjusted OIBDA was $93 million, up 7% year over year on a rebased basis, and the adjusted OIBDA margin expanded to 32%, up from 29% last year. Turning to slide 14. On the left, P&E additions were $179 million in Q2 and $289 million year to date, representing 16% and 13% of revenue, respectively. As expected, Q2 spend was significantly higher than Q1 as a result of seasonality and phasing of key investment projects.

Speaker #1: Turning to slide 14. On the left, P&E additions were $179 million in Q2 and $289 million year to date representing 16% and 13% of revenue respectively.

Speaker #1: As expected, Q2 spend was significantly higher than Q1 as a result of seasonality and phasing of key investment projects. We anticipate higher P&E additions in H2 compared to H1 but we still expect the full year P&E additions as a percentage of revenue to be in the same envelope as 2025.

Chris Noyes: We anticipate higher P&E additions in H2 compared to H1, we still expect the full year P&E additions as a percentage of revenue to be in the same envelope as 2025. Turning to right part of the slide, adjusted FCF before distributions increased to $83 million in Q2 and $19 million for H1. These results reflect increases of $124 million over Q2 2025 and $164 million over H1 2025, respectively. Drivers of this performance include stronger cash flow from operations, including improved working capital as well as vendor financing phasing. Important to note that adjusted FCF in 2026 for Puerto Rico was $-48 million for Q2 and $-91 million for H1. For LLA, our 2026 adjusted FCF before distributions remained significantly weighted to Q4 performance, consistent with phasing as in prior years.

Speaker #1: Turning to right part of the slide, adjusted FCF before distributions increased to $83 million in Q2 and $19 million for the first half. These results reflect increases of $124 million over Q2 2025 and $164 million over H1 2025 respectively.

Speaker #1: Drivers of this performance include stronger cash flow from operations including improved working capital, as well as vendor financing phasing. Important to note that adjusted FCF in 2026 for Puerto Rico was a negative $48 million for Q2 and a negative $91 million for H1.

Chris Noyes: Important to note that adjusted FCF in 2026 for Puerto Rico was $-48 million for Q2 and $-91 million for H1. For LLA, our 2026 adjusted FCF before distributions remained significantly weighted to Q4 performance, consistent with phasing as in prior years.However, after more favorable working capital timing in H1, H2 likely won't be as robust as last year's H2, due in part to proceeds we received in Q4 of last year from our weather derivatives program following Hurricane Melissa.

Speaker #1: For LLA, our 2026 adjusted FCF before distributions remained significantly weighted to Q4 performance consistent with phasing as in prior years. However, after more favorable working capital timing in the first half, H2 likely won't be as robust as last year's second half due in part to proceeds we received in Q4 of last year from our weather-driven program following Hurricane Melissa.

Chris Noyes: However, after more favorable working capital timing in H1, H2 likely won't be as robust as last year's H2, due in part to proceeds we received in Q4 of last year from our weather derivatives program following Hurricane Melissa. Next to slide 15. On a consolidated basis, LLA had total debt of $8.5 billion, cash of $700 million, consolidated net leverage of 4.6 times, and borrowing capacity of around $900 million. Additionally, on the slide, one can see the relevant leverage and liquidity metrics for each of our stand-alone credit silos. Importantly, if we were to exclude LPR's net leverage, LLA's consolidated net leverage would fall by roughly a turn into the mid threes.

Speaker #1: Next to slide 15. On a consolidated basis, LLA had total debt of $8.5 billion cash of $700 million consolidated net leverage of $4.6 times and borrowing capacity of around $900 million.

Chris Noyes: Next to slide 15. On a consolidated basis, LLA had total debt of $8.5 billion, cash of $700 million, consolidated net leverage of 4.6 times, and borrowing capacity of around $900 million. Additionally, on the slide, one can see the relevant leverage and liquidity metrics for each of our stand-alone credit silos. Importantly, if we were to exclude LPR's net leverage, LLA's consolidated net leverage would fall by roughly a turn into the mid threes.With respect to the Puerto Rico reporting group, the business continues to address its capital structure.

Speaker #1: Additionally, on the slide, one can see the relevant leverage and liquidity metrics for each of our standalone credit silos. Importantly, if we were to exclude LPR's net leverage, LLA's consolidated net leverage would fall by roughly a turn into the mid-threes.

Speaker #1: With respect to the Puerto Rico reporting group, the business continues to address its capital structure. During Q2, the business was able to utilize its own assets to secure additional funding for near-term liquidity needs.

Chris Noyes: With respect to the Puerto Rico reporting group, the business continues to address its capital structure. During Q2, the business was able to utilize its own assets to secure additional funding for near-term liquidity needs. Specifically, LPR raised new financing through unrestricted subsidiaries, including a $140 million 2030 revolving credit facility, which replaces the prior RCF, which was set to mature in Q1 2027, and a $200 million senior secured term loan facility, of which $150 million has been drawn and $50 million remains available. Moving to the top right of the slide. In mid-June, LLA successfully distributed roughly $500 million of notional value preferred stock to our common shareholders. This new instrument carries a 9% annual dividend payable quarterly and represents a highly attractive return for investors.

Chris Noyes: During Q2, the business was able to utilize its own assets to secure additional funding for near-term liquidity needs. Specifically, LPR raised new financing through unrestricted subsidiaries, including a $140 million 2030 revolving credit facility, which replaces the prior RCF, which was set to mature in Q1 2027, and a $200 million senior secured term loan facility, of which $150 million has been drawn and $50 million remains available.

Speaker #1: Specifically, LPR raised new financing through unrestricted subsidiaries including a $140 million 2030 revolving credit facility which replaces the prior RCF which was set to mature in Q1 2027.

Speaker #1: And a $200 million senior secured term loan facility of which $150 million has been drawn and $50 million remains available. Moving to the top right of the slide, in mid-June, LLA successfully distributed roughly $500 million of notional value preferred stock to our common shareholders this new instrument carries a 9% annual dividend payable quarterly and represents a highly attractive return for investors.

Chris Noyes: Moving to the top right of the slide. In mid-June, LLA successfully distributed roughly $500 million of notional value preferred stock to our common shareholders. This new instrument carries a 9% annual dividend payable quarterly and represents a highly attractive return for investors.In my view, the preferred is currently trading at a wide spread to both our C&W and LCR debt, and we would encourage investors to take a closer look at this security.

Speaker #1: In my view, the preferred is currently trading at a wide spread to both our CW and LCR debt, and we would encourage investors to take a closer look at this security.

Chris Noyes: In my view, the preferred is currently trading at a wide spread to both our C&W and LCR debt, and we would encourage investors to take a closer look at this security. Post preferred distribution and in line with our levered equity strategy, we have been active in repurchasing our common equity, including purchases through Q3 year to date. We have repurchased over $60 million of stock and have close to $140 million remaining under our authorization. No doubt we will remain opportunistic buyers of our equity. Moving to our final slide. First, as highlighted by our results today, Q2 demonstrated continued progress. LLA reported robust postpaid mobile and broadband internet net additions. We returned to adjusted OIBDA growth and delivered substantial year-over-year expansion in cash flow.

Speaker #1: Post-preferred distribution and in line with our levered equity strategy, we have been active in repurchasing our common equity including purchases through Q3 year to date we have repurchased over $60 million of stock and have close to $140 million remaining under our authorization.

Chris Noyes: Post preferred distribution and in line with our levered equity strategy, we have been active in repurchasing our common equity, including purchases through Q3 year to date. We have repurchased over $60 million of stock and have close to $140 million remaining under our authorization. No doubt we will remain opportunistic buyers of our equity. Moving to our final slide. First, as highlighted by our results today, Q2 demonstrated continued progress. LLA reported robust postpaid mobile and broadband internet net additions.

Speaker #1: No doubt we will remain opportunistic buyers of our equity. Moving to our final slide—first, as highlighted by our results today, Q2 demonstrated continued progress.

Speaker #1: LLA reported robust postpaid mobile and broadband internet net additions we returned to adjusted OIBIDA growth and delivered substantial year over year expansion in cash flow.

Chris Noyes: We returned to adjusted OIBDA growth and delivered substantial year-over-year expansion in cash flow.As we look to rest of 2026, we intend to build upon our H1 operational progress and lap the October 2025 Hurricane Melissa, all of which should set us up for a strong Q4 and positive momentum leading into 2027. Second, on product innovation and AI, we are leaning into these areas, as Balan expressed.

Speaker #1: As we look to rest of 2026, we intend to build upon our H1 operational progress and lap the October 2025 Jamaica hurricane all of which to set us up for a strong fourth quarter and positive momentum leading into 2027.

Chris Noyes: As we look to rest of 2026, we intend to build upon our H1 operational progress and lap the October 2025 Hurricane Melissa, all of which should set us up for a strong Q4 and positive momentum leading into 2027. Second, on product innovation and AI, we are leaning into these areas, as Balan expressed. Not only can they help propel our top line, but should complement our cost takeout initiatives while also supporting improved customer experiences. We discussed exciting examples today, including the launching of our Unbeatable Network proposition and the signing of our IT services agreement. Third, capital allocation remains a priority for us. As discussed in May, we made the decision to lean into the levered equity model and regear our equity through the distribution of the preferred stock.

Speaker #1: Second on product innovation and AI, we are leaning into these areas as Balan expressed. Not only can they help propel our top line but should complement our cost takeout initiatives while also supporting improved customer experiences.

Chris Noyes: Not only can they help propel our top line, but should complement our cost takeout initiatives while also supporting improved customer experiences. We discussed exciting examples today, including the launching of our Unbeatable Network proposition and the signing of our IT services agreement. Third, capital allocation remains a priority for us. As discussed in May, we made the decision to lean into the levered equity model and regear our equity through the distribution of the preferred stock.

Speaker #1: We discussed exciting examples today including the launching of our unbeatable network proposition and the signing of our IT services agreement. Third, capital allocation remains a priority for us.

Speaker #1: As discussed in May, we made the decision to lean into the levered equity model and regear our equity through the distribution of the preferred stock.

Speaker #1: This was a reflection of the confidence we have in our business, our desire to offer our shareholders a compelling cash return and belief that this would unlock value for our shareholders.

Chris Noyes: This was a reflection of the confidence we have in our business, our desire to offer our shareholders a compelling cash return, and belief that this would unlock value for our shareholders. In closing, we remain focused on carrying out our value creation strategy over the coming quarters. This includes deliver top-line performance, realize operational leverage through cost and CapEx optimization, drive free cash flow, and optimize our asset portfolio, as exemplified by our recently announced Peruvian exit. Taken together, all of these items, combined with our capital allocation approach, should help us to close what we believe is a discount to our intrinsic value and further enhance shareholder returns. With that, operator, let's open it up for questions.

Speaker #1: In closing, we remain focused on carrying out our value creation strategy over the coming quarters. This includes delivering top-line performance, realizing operational leverage through cost and capex optimization, driving free cash flow, and optimizing our asset portfolio, as exemplified by our recently announced Peruvian exit.

Speaker #1: Taken together, all of these items combined with our capital allocation approach should help us to close what we believe is a discount to our intrinsic value and further enhance shareholder returns.

Chris Noyes: Taken together, all of these items, combined with our capital allocation approach, should help us to close what we believe is a discount to our intrinsic value and further enhance shareholder returns. With that, operator, let's open it up for questions.

Speaker #1: With that operator, let's open it up for questions.

Speaker #2: The question and answer session will be conducted electronically. If you would like to ask a question regarding the company's operations, please do so by pressing star one (*) to ask a question, or star zero (0) for operator assistance.

Operator: The question and answer session will be conducted electronically. If you would like to ask a question regarding the company's operations, please do so by pressing star one to ask a question or star zero for operator assistance. If you're using a speakerphone, please make sure 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. Your first question comes from the line of Matthew Harrigan with Benchmark StoneX. Your line is open. Please go ahead.

Speaker #2: If you're using a speakerphone, please make sure 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.

Operator: We'll pause for just a moment to give everyone an opportunity to signal for questions. Your first question comes from the line of Matthew Harrigan with Benchmark StoneX. Your line is open. Please go ahead.

Speaker #2: Your first question comes from the line of Matthew Harrigan with benchmarkstonex. Your line is open. Please go ahead.

Matthew Harrigan: Thank you. I guess firstly, you kind of have, not depressed, but depression valuations in US cable stocks on account of Starlink, particularly with Charter. How is your position there differentiated? You kind of regard them as a frenemy and interesting partnership. How does that partnership evolve over time, particularly when you get version 3 coming out? Obviously, you've done some things on Spectrum already, but just a broad comment. Then I had one other question, then I'll slide back into the queue.

Speaker #3: Thank you. I guess firstly, you kind of have not depressed but depression valuations in US cable stocks on account of Starlink particularly with Charter.

Speaker #3: How is your position there differentiated? I mean, you kind of regard them as a frenemy and interesting partnership and how does that partnership evolve over time particularly when you get version three coming out?

Speaker #3: And obviously, you've done some things on Spectrum already but just to broad comment and then I had one other question I'll slide back into the queue.

Speaker #4: Sure. Thanks, Matthew. On the Sonic relationship one, we're very positive on it. It helps bolster our products and makes the customer experience so much better.

Chris Noyes: Sure. Thanks, Matthew. On the Starlink relationship, one, we are very positive on it. It helps bolster our products and makes the customer experience so much better. The way we look at this relationship is that it's an add-on to our existing product line. I think what's unique in our market compared to others is one, of course, as you pointed out, the Spectrum availability. Two, remember, we are literally one of the largest employers in many of the markets that we operate in, and the government partners that we have and local authorities understand that. They understand that companies like ours actually contribute significantly to the economy of these countries. Therefore, I think in a certain way, I think most of these markets are more ring-fenced than other markets where these satellite operators operate in.

Balan Nair: Sure. Thanks, Matthew. On the Starlink relationship, one, we are very positive on it. It helps bolster our products and makes the customer experience so much better. The way we look at this relationship is that it's an add-on to our existing product line. I think what's unique in our market compared to others is one, of course, as you pointed out, the Spectrum availability. Two, remember, we are literally one of the largest employers in many of the markets that we operate in, and the government partners that we have and local authorities understand that.

Speaker #4: The way we look at this relationship is that it's an add-on to our existing product line and I think what's unique in our market compared to others is one, of course, as you pointed out, the Spectrum availability.

Speaker #4: Two, remember we are literally one of the largest employers in many markets that we operate in and the government partners that we have and local authorities understand that and they understand that companies like ours actually contribute significantly to the economy of this businesses of this countries and therefore I think in a certain way I think most of these markets are more ringfenced than other markets where these satellite operators operate in and so I think even in the long term we see all these satellite guys as more partners and fill in the blanks type role as opposed to wholesale or large replacements of facilities actually on the ground.

Balan Nair: They understand that companies like ours actually contribute significantly to the economy of these countries. Therefore, I think in a certain way, I think most of these markets are more ring-fenced than other markets where these satellite operators operate in.I think even in the long term, we see all these satellite guys as more partners.Fill in the blank type role as opposed to wholesale or large replacements of facilities actually on the ground.

Chris Noyes: I think even in the long term, we see all these satellite guys as more partners.

Balan Nair: Fill in the blank type role as opposed to wholesale or large replacements of facilities actually on the ground.

Speaker #3: And I guess the second question, on Liberty Networks, and I know the business is lumpy as has been shown in the past and you're careful to point out to people but it just feels like the growth curve is just really accelerating now.

Matthew Harrigan: I guess the second question, on Liberty Networks, I know the business is lumpy as has been shown in the past, and you're careful to point out to people, but it just feels like the growth curve is just really accelerating now. Venezuela, obviously, in the hopper, just market by market, El Salvador. I know a few years ago, people were looking at the infrastructure investments and private equity and all that and saying, Well, you could have a high teen, mid-teen type multiple in that business. Even if you don't have a financial engineering event, it feels like you could have a really nice growth path there. Do you have any internal goals or maybe not formal goals, but any intimations on high single digit, maybe even low double-digit growth in that business for the rest of the decade?

Speaker #3: Venezuela obviously in the hopper just market by market El Salvador and I know a few years ago people were looking at the infrastructure investments and private equity and all that and saying well you could have a high teen, mid-teen type multiple in that business and even if you don't have a financial engineering event it feels like you could have a really nice growth path there.

Matthew Harrigan: Even if you don't have a financial engineering event, it feels like you could have a really nice growth path there. Do you have any internal goals or maybe not formal goals, but any intimations on high single digit, maybe even low double-digit growth in that business for the rest of the decade?It just feels like there's just a cornucopia of activity there, to say the least.

Speaker #3: I mean, do you have any internal goals or that maybe not formal goals but any innovations on high single digit maybe even low double digit growth in that business for the rest of the decade because it just feels like there's just a cornucopia of activity there to say the least.

Matthew Harrigan: It just feels like there's just a cornucopia of activity there, to say the least.

Speaker #4: You know I think your instincts are correct on that for sure. Which is why we kind of double down on a number of builds.

Balan Nair: I think your instincts are correct on that for sure, which is why we kind of doubled down on a number of builds. The one coming out of Colombia into Mexico, Panama, coming back to Florida. We also have on the Pacific side, building out the El Salvador route. As I mentioned earlier, we're building in new routes into Venezuela. We're quite bullish on that. There are other opportunistic routes that we could be looking at as well. The reason we really like this and why it's also considered infrastructure is the cash conversion on this business is extremely high. The operating contribution margins are extremely high because when we build all these new routes, yes, we do spend the CapEx on it, but it doesn't increase our OpEx significantly. We have a couple of really strong managers, of course, led by Ray Collins, Carmine, Danilo.

Speaker #4: The one coming out of Colombia into Mexico, Panama, coming back to Florida. We also have the on the Pacific side building out the El Salvador route.

Speaker #4: And as I mentioned earlier, we're building a new routes into Venezuela. We're quite bullish on that. And there are other opportunistic routes that we could be looking at as well.

Balan Nair: The reason we really like this and why it's also considered infrastructure is the cash conversion on this business is extremely high. The operating contribution margins are extremely high because when we build all these new routes, yes, we do spend the CapEx on it, but it doesn't increase our OpEx significantly. We have a couple of really strong managers, of course, led by Ray Collins, Carmine, Danilo.

Speaker #4: These are the reason we really like this and why it's also considered infrastructure is the cash conversion on this business is extremely high. And the operating contribution margins are extremely high because when we build all these new routes, yes, we do spend the capex on it, but it doesn't increase our opex significantly.

Speaker #4: We have a couple of really strong managers, of course, led by Ray Collins, Carmine, Danilo, there's a number of really strong managers we've moved over into this business unit.

Balan Nair: There's a number of really strong managers we've moved over into this business unit because we think that not only because the opportunity is really good here, but we think as well structurally, I think this is one we're going to lean in even more, because clearly, it gives us a much better return than our existing consumer business.

Speaker #4: Because we think that, not only is the opportunity really good here, but we think as well, structurally, this is one we're going to lean into even more because clearly it gives us a much better return than our existing consumer business.

Speaker #3: Great. Thanks, Paul. Thanks, Chris.

Matthew Harrigan: Great. Thanks, Paul. Thanks, Chris.

Speaker #2: Your next question comes from the line of Ernesto Gonzalez with Morgan Stanley. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Ernesto Gonzalez with Morgan Stanley. Your line is open. Please go ahead.

Speaker #5: Hi. Thank you for taking our question. It's two. First one is on the pace of execution of the remainder of the buyback program. Any comment on your thoughts on this would be greatly appreciated.

Ernesto Gonzalez: Hi. Thank you for taking our question. It is two. First one is on the pace of execution of the remainder of the buyback program. Any comment on your thoughts on this would be greatly appreciated. The second one is on Puerto Rico. Any updates on the strategic initiatives, including the potential spinoff of the unit? Thank you.

Speaker #5: And the second one is in Puerto Rico. Any updates on the strategic initiatives including the potential spin-off of the unit? Thank you.

Speaker #4: Hello Ernesto. On the buyback as Chris pointed out, we are going to be very opportunistic there. And as you can see, we really leaned in onto it in the last month or so after the prep came out.

Balan Nair: Hello, Ernesto. On the buyback, as Chris pointed out, we are going to be very opportunistic there. As you can see, we really leaned into it in the last month or so after the prep came out. We will continue to lean into it, but we are going to be very disciplined and smart about it. If you look at our prior stock purchases, buybacks, we have been very disciplined. As a matter of fact, almost everything we have bought to date since the inception of LLA is in the money. Like I said, we will be very careful about this because there are many things in front of us, right? It is buybacks, delevering, looking at very accretive M&A opportunities. Right now, you can see from the last month, buyback remains our focus.

Speaker #4: And we'll continue to lean in into it. But we are going to be very disciplined and smart about it. If you look at our prior stock purchases, buybacks, we've been very disciplined and as a matter of fact, almost everything we've bought to date since the inception of LLA is in the money.

Speaker #4: And we are really kind of and like I said, we'll be very careful about this because there's many things in front of us, right?

Balan Nair: Like I said, we will be very careful about this because there are many things in front of us, right? It is buybacks, delevering, looking at very accretive M&A opportunities. Right now, you can see from the last month, buyback remains our focus.We really think our common equity is undervalued, and we are going to put our capital to work there. To your second question on LPR, Chris, I think kind of alluded that as well. It is work in progress. We want to be very constructive with our counterparties on the debt side, and I think a resolution could come.

Speaker #4: It's buybacks, delevering, and looking at very creative M&A opportunities. And right now, you can see from the last month, buybacks remain our focus. We really think our common equity is undervalued, and we're going to put our capital to work there.

Balan Nair: We really think our common equity is undervalued, and we are going to put our capital to work there. To your second question on LPR, Chris, I think kind of alluded that as well. It is work in progress. We want to be very constructive with our counterparties on the debt side, and I think a resolution could come. Certainly, we on the management team are working really hard to try to get to a resolution there. On the spin, we indicated previously it is just one of the options that we have in front of us. Clearly, the Puerto Rico path today has a drag on our common equity. Listen, we have been very clear. We are not putting money into Puerto Rico. It is self-funded by the Puerto Rico operations, and we have a very strong Puerto Rico management team that we have turned that business quite a bit around.

Speaker #4: Your second question on LPR. Chris, I think kind of alluded to that as well. It's work in progress. We are we want to be very constructive with our counterparties on the debt side and I think the resolution could come certainly we on the management team are working really hard to try to get to a resolution there.

Balan Nair: Certainly, we on the management team are working really hard to try to get to a resolution there. On the spin, we indicated previously it is just one of the options that we have in front of us. Clearly, the Puerto Rico path today has a drag on our common equity. Listen, we have been very clear. We are not putting money into Puerto Rico. It is self-funded by the Puerto Rico operations, and we have a very strong Puerto Rico management team that we have turned that business quite a bit around.

Speaker #4: And on the spend, we indicated previously it's just one of the options that we have in front of us. And but clearly the Puerto Rico path today has a drag on our common equity.

Speaker #4: But listen, we've been very clear. We are not putting money into Puerto Rico. It is self-funded by the Puerto Rico operations. And we have a very strong Puerto Rico management team that is we've done that business quite a bit around operationally.

Balan Nair: Operationally, it is performing. Now we just need to work with our counterparties on the debt side, and I think we can find a meeting of the minds at some point between now and next year.

Speaker #4: It is performing. And now, we just need to work with our counterparties on the debt side, and I think we can find a meeting of the minds at some point between now and next year.

Speaker #5: That's a really clear answer, just one follow-up. You mentioned potential M&A opportunities—any additional color on what types of assets you could be exploring?

Ernesto Gonzalez: Really clear. Just one follow-up. You mentioned potential M&A opportunities. Any additional color on what type of assets you could be exploring?

Speaker #4: We would only look at assets that are creative to our current free cash flow generation. So two things that we would look at. One, synergy, significant amount of synergies that can contribute to our free cash flow.

Balan Nair: We would only look at assets that are accretive to our current free cash flow generation. Two things that we would look at, one, synergy, significant amount of synergies that can contribute to our free cash flow. Two, a glide path in any of these businesses that provide for future revenue growth as well. Those two are the key things, and then we balance it against where our stock is trading and which is a better use of our capital. Right now, I can clearly tell you there is nothing out there that we see that's a better value than our own stock.

Speaker #4: And two, a glide path in any of these businesses that provide for future revenue growth as well. Those two are like the key things.

Speaker #4: And then we balance it against where our stock is trading and which is a better use of our capital. Right now, I can clearly tell you there is nothing out there that we see that's a better value than our own stock.

Speaker #5: Really clear. Thank you very much.

Ernesto Gonzalez: Really clear. Thank you very much.

Speaker #2: Your next question comes from the line of Roberto Versiani with Citigroup. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Roberta Versiani with Citigroup. Your line is open. Please go ahead.

Speaker #1: Thank you for taking our questions. First on Puerto Rico, given the recent improvement in post-pay trends, could you talk a bit more about the current competitive environment and especially in comparison to one year ago or like six months ago?

Roberta Versiani: Thank you for taking our question. First on Puerto Rico, given the recent improvement in postpaid trends, could you talk a bit more about the current competitive environment, and especially in comparison to 1 year ago or 6 months ago, and how sustainable you believe the current postpaid momentum is? On a separate topic, could you discuss a bit more the factors that drive your decisions around portfolio optimization or asset disposals? Within this context, what would be your long-term vision for the networks business? Thank you.

Speaker #1: And how sustainable do you believe the current post-pay momentum is? And on a separate topic, could you discuss a bit more of the the factors that drive your decisions around portfolio optimization or assets disposal?

Speaker #1: And within this context, what would be your long-term vision for the networks business? Thank you.

Speaker #4: Sure. On Puerto Rico, the improvements in our post-pay comes from a number of different things. One, we really had to go back and improve all of our channels all of our operations.

Balan Nair: Sure. On Puerto Rico, the improvements in our postpaid come from a number of different things. One, we really had to go back and improve all of our channels, all of our operations, and that was a project that we took on in the beginning of 2025. Our retail stores, our call center, inbound, outbound, everything got re-engineered. Second, we brought in a lot of new talent into the business, and I am very happy with the team that we've assembled there in Puerto Rico. Very commercially minded, very operationally minded. Two things that happened there. Third, our product improved quite a bit. We invested quite a bit last year in the network. We fired up new spectrum, and we really improved a lot of our network operations as well. The product is extremely stable and very good.

Speaker #4: And that was a project that we took on in the beginning of '25. And so our retail stores, our call center inbound, outbound, everything got kind of re-engineered.

Speaker #4: ed. Second, we brought in a lot of new talent into the business. And I'm very happy with the team that we've assembled there in Puerto Rico.

Speaker #4: Very commercially minded, very operationally minded. So two things that happened there. Third, our product improved quite a bit. We invested quite a bit last year in the network.

Balan Nair: Very commercially minded, very operationally minded. Two things that happened there. Third, our product improved quite a bit. We invested quite a bit last year in the network. We fired up new spectrum, and we really improved a lot of our network operations as well. The product is extremely stable and very good.With the new spectrum, we actually have the same spectrum position or volume as T-Mobile.

Speaker #4: We fired up new spectrum, and we really improved a lot of our network operations as well. So the product is extremely stable and very good.

Speaker #4: And with the new spectrum, we actually have the same spectrum position or volume as T-Mobile. As a result, once you start doing all these things—and we got innovative on the commercial front as well—we have both a subsidized product and an unsubsidized product, which are very economically viable for our customers.

Balan Nair: With the new spectrum, we actually have the same spectrum position or volume as T-Mobile. As a result, once you start doing all these things, and we got innovative on the commercial front as well, where we have both a subsidized product and an unsubsidized product that is very economically viable for our customers. Once you mix all of that, good things happen. We started to work on our churn. The operational improvements reduced churn, the commercial improvements and the network improvements improved sales, and we started turning positive. Our port in, port out ratio right now is looking very good, both against T-Mobile and against Claro. They're both formidable competitors, make no mistake, but we are holding our own right now with both of them. That's on Puerto Rico. The second question on portfolio optimization.

Balan Nair: As a result, once you start doing all these things, and we got innovative on the commercial front as well, where we have both a subsidized product and an unsubsidized product that is very economically viable for our customers. Once you mix all of that, good things happen. We started to work on our churn. The operational improvements reduced churn, the commercial improvements and the network improvements improved sales, and we started turning positive.

Speaker #4: And so once you mix all of that, good things happen. And we started to work on our churn. So the operational improvements reduced churn.

Speaker #4: The commercial improvements and the network improvements improved sales. And we started turning positive. Our 14 port-out ratio right now is looking very good. And so both against T-Mobile and against Claro.

Balan Nair: Our port in, port out ratio right now is looking very good, both against T-Mobile and against Claro. They're both formidable competitors, make no mistake, but we are holding our own right now with both of them. That's on Puerto Rico. The second question on portfolio optimization.We did announce our exit in Peru, and we feel really good about that. The counterparty there is clearly the Slim family and Claro. They're great partners. They've been our partners before, and I think it's really smart for them to consolidate that market in Peru.

Speaker #4: They both formidable competitors, make no mistake. But we are holding our own right now. And with both of them. So that's on Puerto Rico.

Speaker #4: The second question on portfolio optimization. We did announce our exit in Peru and we feel really good about that. The counterparty there is clearly the slim family and Claro.

Balan Nair: We did announce our exit in Peru, and we feel really good about that. The counterparty there is clearly the Slim family and Claro. They're great partners. They've been our partners before, and I think it's really smart for them to consolidate that market in Peru. When we went into that market, clearly we had big ambitions there, but it quickly changed because it's just too many people, too many operators in that market, and we didn't see a path to acquiring any of the mobile operations there. We said that's a market that we should probably exit. We're going to be very clear-eyed on markets that we want to participate in. It has to be rational. It has to be a market where the regulators are very pro-business or governments are pro-business. As we look at our existing portfolio, listen, this is a Liberty company.

Speaker #4: They're great partners. They've been our partners before, and I think it's really smart for them to consolidate that market in Peru. When we went into that market, clearly, we had big ambitions there.

Balan Nair: When we went into that market, clearly we had big ambitions there, but it quickly changed because it's just too many people, too many operators in that market, and we didn't see a path to acquiring any of the mobile operations there. We said that's a market that we should probably exit. We're going to be very clear-eyed on markets that we want to participate in. It has to be rational. It has to be a market where the regulators are very pro-business or governments are pro-business.

Speaker #4: But it quickly changed because it's just too many people, too many operators in that market. And we didn't see a path to acquiring any of the mobile operations there.

Speaker #4: So we said that's a market that we should probably exit. We're going to be very clear-eyed on markets that we want to participate in.

Speaker #4: It has to be rational. It has to be a market where the regulators are very pro-business or governments are pro-business. And so as we look at our existing portfolio, listen, this is a liberty company.

Balan Nair: As we look at our existing portfolio, listen, this is a Liberty company.Everything's for sale at the right price. We've got inbounds on a number of things, if it works, we'll do stuff. Not just on the sell side, we are also actively looking at opportunities where we can deploy capital as well. We are going to be very clear about both capital allocation and asset allocation.

Speaker #4: Everything's for sale. At the right price. And so we've got inbounds on a number of things. But if it works, we'll do stuff. And but not just on the sell side, but we are also actively looking at opportunities where we can deploy capital as well.

Balan Nair: Everything's for sale at the right price. We've got inbounds on a number of things, if it works, we'll do stuff. Not just on the sell side, we are also actively looking at opportunities where we can deploy capital as well. We are going to be very clear about both capital allocation and asset allocation.

Speaker #4: So we are going to be very, very clear about both capital allocation and asset allocation.

Speaker #1: Thank you very clear. Just a quick follow-up. In this context of optimization, what is your long-term vision for the networks business? Is that a part of the business you would be looking to consolidate, for example?

Roberta Versiani: Thank you. Very clear. Just a quick follow-up. In this context of optimization, what is your long-term vision for the networks business? Is that a part of the business you would be looking to consolidate, for example?

Speaker #4: You know, I think on the networks business, clearly it has a much higher multiple on some of the parts. And it's not a higher multiple just because it's infrastructure.

Balan Nair: I think on the networks business, clearly it has a much higher multiple on the sum of the parts, it's not a higher multiple just because it's infrastructure. It deserves a much higher multiple because of the cash conversion. On an free cash flow yield basis, that should create something in the teens for sure as a standalone. Clearly, Chris and myself and our board will constantly think about how do we bring real clarity to the valuation of that business. I can also tell you that there are opportunities, both organically, like we are doing right now, building new routes and partnering with governments and building more routes and building more access into new cities, or inorganically, where there are other assets out there that we could look at potentially for acquisition as well.

Speaker #4: It deserves a much higher multiple because of the cash conversion. So, on a pre-cash flow yield basis, that should trade in the teens, for sure.

Speaker #4: And so as a standalone. And clearly, Chris and myself and our board will constantly think about how do we bring real clarity to the valuation of that business.

Speaker #4: Now, I can also tell you there are opportunities both organically, like we are doing right now, building new routes. And partnering with governments and building more routes and building more access into new cities.

Balan Nair: I can also tell you that there are opportunities, both organically, like we are doing right now, building new routes and partnering with governments and building more routes and building more access into new cities, or inorganically, where there are other assets out there that we could look at potentially for acquisition as well.This is a business that we are quite excited about, led by a very good team.

Speaker #4: Or inorganically, where there are other assets out there that we could look at potentially for acquisition as well. But this is a business that we are quite excited about, and led by a very good team.

Balan Nair: This is a business that we are quite excited about, led by a very good team.

Speaker #1: Got it. Thank you so much.

Roberta Versiani: Got it. Thank you so much.

Speaker #2: Your next question comes from the line of David Lopez. With new street research, your line is open. Please go ahead.

Operator: Your next question comes from the line of David Lopes with New Street Research. Your line is open. Please go ahead.

Speaker #5: Hi. Thank you for the opportunity and congratulations on the robust quarter. A couple of questions, please. The first one would be on your partnership with Amdocs.

David Lopes: Hi. Thank you for the opportunity, and congratulations on the robust quarter. A couple of questions, please. The first one would be on your partnership with Amdocs and the $250 million NPV you mentioned in the release. I was wondering if you can give a bit more color on this, and especially on the timing and the phasing for this NPV. The second question would be on free cash flow. Generation was quite strong this quarter. I was wondering if you can comment on the remaining of the year. How are you thinking about the momentum? Is there some timing issue, or you still expect a very strong Q4 as usual? Thank you.

Speaker #5: And the 250 million NPV you mentioned in the release. I was wondering if you can give a bit more color on this and especially on the timing and the phasing for this NPV.

Speaker #5: And the second question would be on the free cash flow. Generation was quite strong this quarter. I was wondering if you can comment on the remainder of the year—how you're thinking about the momentum, is there some timing issue, or do you still expect a very strong Q4 as usual?

David Lopes: The second question would be on free cash flow. Generation was quite strong this quarter. I was wondering if you can comment on the remaining of the year. How are you thinking about the momentum? Is there some timing issue, or you still expect a very strong Q4 as usual? Thank you.

Speaker #5: Thank you.

Speaker #4: Sure. I'll get to the Amdocs question. I'll ask Chris to think about the free cash flow answer as well. On the Amdocs, this is really good work by my chief technologist as well as our IT team.

Balan Nair: Sure. I'll get to the Amdocs question. I'll ask Chris to think about the free cash flow answer as well. On the Amdocs, this is really good work by my chief technologists as well as our IT team. We've been looking at our systems, and most systems, back office systems, kind of act like a utility in a telecoms company. In many ways, it's made up of lots of legacy system with old code and it becomes an operational project as opposed to a transformational project. What we were looking for is a partner that's done this in other places where they can take a lot of legacy system, transform it, help us not only transform the technology, but transform our processes as well. Clearly with AI right now, we were looking with partners that are really leaning into AI.

Speaker #4: We've been looking at our systems, and most systems, back-office systems, kind of act like a utility in a telecoms company. In many ways, they're made up of lots of legacy systems with old code.

Speaker #4: And it becomes an operational project as opposed to a transformational project. And what we were looking for is a partner that's done this in other places, where they can take a lot of legacy systems, transform it, and help us not only transform the technology, but transform our processes as well.

Balan Nair: What we were looking for is a partner that's done this in other places where they can take a lot of legacy system, transform it, help us not only transform the technology, but transform our processes as well. Clearly with AI right now, we were looking with partners that are really leaning into AI.Amdocs, who by the way, have been a partner with us, they are in our network, they understand our business really well. They are in telecoms. They have their own language models that are certainly just focused on the telecom industry.

Speaker #4: And clearly, with AI right now, we are looking for partners that are really leaning into AI, and Amdocs—who, by the way, have been a partner with us.

Balan Nair: Amdocs, who by the way, have been a partner with us, they are in our network, they understand our business really well. They are in telecoms. They have their own language models that are certainly just focused on the telecom industry. This is a very domain-specific AI transformation, and you want someone with domain-specific knowledge, both not only from a technology standpoint, but from an operational standpoint. Many reasons drove us to Amdocs. Clearly from that sense, we get to capture the cost savings. Instead of my management team working on that cost savings and working on that transformation, we find a partner that can almost guarantee us that cost savings and this transformation. It'll make our company better. It takes cost out of our business. It de-risks my legacy systems. There's very little to not like about it.

Speaker #4: They are in our network. They understand our business really well. They are in telecoms. They have their own language models that are certainly just focused on the telecom industry.

Speaker #4: This is a very domain-specific AI transformation. And you want someone with domain-specific knowledge both not only from a technology standpoint, but from an operational standpoint.

Balan Nair: This is a very domain-specific AI transformation, and you want someone with domain-specific knowledge, both not only from a technology standpoint, but from an operational standpoint. Many reasons drove us to Amdocs. Clearly from that sense, we get to capture the cost savings. Instead of my management team working on that cost savings and working on that transformation, we find a partner that can almost guarantee us that cost savings and this transformation.

Speaker #4: So many reasons drove us to Amdocs. And clearly, from that sense, we get to capture the cost savings instead of my management team working on that cost savings and working on that transformation.

Speaker #4: We find a partner that can almost guarantee us that cost savings and this transformation. So, it’ll make our company better. It takes costs out of our business.

Balan Nair: It'll make our company better. It takes cost out of our business. It de-risks my legacy systems. There's very little to not like about it.In many ways, when you do something like this, you just have to pick someone who's trusted, who knows how to do this, who has been in the mobile business, has been in the fixed business, understands subscription billing. It's a very different world. I think my team and my colleagues did a very good job with that. The timing on it is just in Q4 is when we begin the transition.

Speaker #4: It de-risks my legacy systems. There's very little to not like about it. And in many ways, when you do something like this, you just have to pick someone who's trusted.

Balan Nair: In many ways, when you do something like this, you just have to pick someone who's trusted, who knows how to do this, who has been in the mobile business, has been in the fixed business, understands subscription billing. It's a very different world. I think my team and my colleagues did a very good job with that. The timing on it is just in Q4 is when we begin the transition. We announced it within the company. A lot of our employees are going to move over to Amdocs. There's a period where there's a handoff, but the immediate benefits and savings we'll start seeing Q4 this year already.

Speaker #4: Who knows how to do this? Who has been in the mobile business, has been in the fixed business, understands subscription billing? It's a very different world.

Speaker #4: And I think the team my team and my colleagues did a very good job with that. The timing on it, is this in the fourth quarter is when we begin the transition.

Speaker #4: We announced it within the company. A lot of our employees are going to move over to Amdocs. There's a period where there's a handoff.

Balan Nair: We announced it within the company. A lot of our employees are going to move over to Amdocs. There's a period where there's a handoff, but the immediate benefits and savings we'll start seeing Q4 this year already.On the free cash flow, I can't tell you how happy I am with the numbers, the work that my team and I have been working on cost takeout, improving our operating margins, refocusing our products into more profitable products. There's a lot of positive things to do. Going forward, I'll let Chris give you his commentary on that.

Speaker #4: But the immediate benefits and savings will start being seen in the fourth quarter this year already. On the free cash flow, I can't tell you how happy I am with the numbers.

Balan Nair: On the free cash flow, I can't tell you how happy I am with the numbers, the work that my team and I have been working on cost takeout, improving our operating margins, refocusing our products into more profitable products. There's a lot of positive things to do. Going forward, I'll let Chris give you his commentary on that.

Speaker #4: The work that my team and I have been working on—on cost takeout, improving our operating margins, refocusing our products into more profitable products—so there's a lot of positive things to do.

Speaker #4: And going forward, I'll let Chris give you his commentary on that.

Speaker #3: Yes. I mean, no doubt H1 was indeed strong and much improved relative to last year. We've continued to work on the working capital side.

Chris Noyes: Yes. No doubt H1 was indeed strong and much improved relative to last year. We've continued to work on the working capital side, we've been able to smooth out the phasing of that during the course of the year. We are generating some cash earlier than we have typically had in the last number of years. In my prepared remarks, in terms of what I had communicated around H2, no doubt Q4 is seasonally strong. It's always been strong for LLA. I did make a pointed remark that we would expect H2, in terms of free cash flow to be likely to be less robust than last year's H2, in part because if folks recall, we did receive $81 million in weather derivative receipts in cash in Q4 last year. We are comping against that.

Speaker #3: So we've been able to smooth out the phasing of that during the course of the year. So we are generating some cash earlier than we have typically had in the last number of years.

Speaker #3: In my prepared remarks, in terms of what I had communicated around the second half, no doubt Q4 is seasonally strong. It's always been strong for LLA.

Speaker #3: But I did make a pointed remark that we would expect H2 in terms of free cash flow to be likely to be less robust than last year's second half.

Chris Noyes: I did make a pointed remark that we would expect H2, in terms of free cash flow to be likely to be less robust than last year's H2, in part because if folks recall, we did receive $81 million in weather derivative receipts in cash in Q4 last year. We are comping against that.In addition, I'd expect I would amortize and pay down some vendor financing in H2. We feel very good about just cash flow generation in the business as we set ourselves up for 2027.

Speaker #3: In part because, if folks recall, we did receive $81 million in weather derivative receipts in cash in the fourth quarter last year. So, we are comping against that.

Speaker #3: And in addition, I'd expect I would amortize and pay down some vendor financing in the second half. But we feel very good about just cash flow generation in the business.

Chris Noyes: In addition, I'd expect I would amortize and pay down some vendor financing in H2. We feel very good about just cash flow generation in the business as we set ourselves up for 2027.

Speaker #3: And as we set ourselves up for 2027.

Speaker #4: Thank you, Chris.

Balan Nair: Thank you, Chris.

Speaker #5: Very clear. Thank you.

David Lopes: Very clear. Thank you.

Speaker #2: Your next question comes from the line of Matthew Harrigan with Benchmark Stonex. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Matthew Harrigan with Benchmark StoneX. Your line is open. Please go ahead.

Speaker #5: Thank you. One more dangling question, if you don't mind. Jamaica, one of my favorite countries. Can you update us on where you are relative to what was 100 million dollar free cash flow?

Matthew Harrigan: Thank you. One more dangling question, if you don't mind. Jamaica, one of my favorite countries. Can you update us on where you are relative to what was $100 million free cash flow, Albatross, and the return that your run rate on the way down? Secondly, you listen to the news and you probably have more funky weather, bad weather stories than even Iran war stories right now, really everywhere, Europe and all that, and now concerns in El Niño. When you look at Melissa, how confident are-- I know you have to deal with hurricanes as a given, but do you have any concerns about insurance, and do you think you're going to have the availability of the parametric insurance, as you pointed out? That contributed substantially your Q4 cash flow last year. Obviously, those funds were subsequently used to rebuild Jamaica.

Speaker #5: Albatross and the return that your run rate on OIBDA. And then secondly, you listen to the news and you probably have more funky weather bad weather stories than even a ran war stories right now.

Speaker #5: Really everywhere Europe and all that. And now concerns in El Niño. When you look at Melissa, I mean, how confident are I know you have to deal hurricanes as a given.

Matthew Harrigan: When you look at Melissa, how confident are-- I know you have to deal with hurricanes as a given, but do you have any concerns about insurance, and do you think you're going to have the availability of the parametric insurance, as you pointed out? That contributed substantially your Q4 cash flow last year.

Speaker #5: But do you have any concerns about insurance? And do you think you're going to have the availability of the parametric insurance as you pointed out that contributed substantially to your Q4 cash flow last year?

Matthew Harrigan: Obviously, those funds were subsequently used to rebuild Jamaica.Just any thoughts on the run rates and then any existential concerns on the weather? I know it's kind of an unfair question, it's particularly relevant to your Caribbean business. Thanks.

Speaker #5: Obviously, those funds were subsequently used to rebuild Jamaica. But just any thoughts on the run rates and then any existential concerns on the weather?

Matthew Harrigan: Just any thoughts on the run rates and then any existential concerns on the weather? I know it's kind of an unfair question, it's particularly relevant to your Caribbean business. Thanks.

Speaker #5: I know it's kind of an unfair question, but it's particularly relevant to your Caribbean business. Thanks.

Speaker #4: Hey, Matthew. Sure, happy to give you a perspective on Jamaica. One, the actual business operations themselves are improving, and we are getting very close to getting back to full strength.

Balan Nair: Hey, Matthew. Sure. Happy to give you a perspective on Jamaica. One, the actual business operations itself is improving, and we are getting very close to getting back to full strength. As a matter of fact, our mobile business have improved coming out of this, and our market share have improved coming out of this. Our ARPU have improved coming out of this. Our fixed business, we continue to rebuild. We are not yet back at 100% on our fixed business, but we anticipate to get pretty close to that. I think there are some homes that we will not rebuild back to, and it's just gone. For the most part, we think we can get back to a pretty high level of penetration. On our B2B, we're pretty much back.

Speaker #4: As a matter of fact, our mobile business have improved coming out of this. And our market share have improved coming out of this. Our ARPU have improved coming out of this.

Speaker #4: Our fixed business continues to— we continue to rebuild. We are not yet back at 100% on our fixed business, but we anticipate getting pretty close to that.

Speaker #4: I think there are some homes that we will not rebuild back to. And it's just gone. And but for the most part, we think we can get back to a pretty high level of penetration.

Balan Nair: I think there are some homes that we will not rebuild back to, and it's just gone. For the most part, we think we can get back to a pretty high level of penetration. On our B2B, we're pretty much back.On our B2B, most of our customers, the thing that we managed through our B2B is really the bad debt, and that's actually pretty much under control right now. Net-net, you can see from the Q2 numbers, Jamaica is getting closer and closer to where it was pre-hurricane. I suspect by the time we get to the Q3, we will get even better.

Speaker #4: And then, on our B2B, we're pretty much back. On our B2B, most of our customers—the thing that we managed to do on our B2B is really the bad debt.

Balan Nair: On our B2B, most of our customers, the thing that we managed through our B2B is really the bad debt, and that's actually pretty much under control right now. Net-net, you can see from the Q2 numbers, Jamaica is getting closer and closer to where it was pre-hurricane. I suspect by the time we get to the Q3, we will get even better. We're on a good trajectory there, and it's no small part to the efforts of our team on the ground, led by a very capable young man, manager there, and my team in Miami as well, also led by an amazing young lady that's just completely focused on Jamaica for 2026.

Speaker #4: And that's actually pretty much under control right now. So, net-net, you can see from the Q2 numbers, Jamaica is getting closer and closer to where it was pre-hurricane.

Speaker #4: And I suspect by the time we get to the third quarter, we will get even better. And so we are in good trajectory there.

Balan Nair: We're on a good trajectory there, and it's no small part to the efforts of our team on the ground, led by a very capable young man, manager there, and my team in Miami as well, also led by an amazing young lady that's just completely focused on Jamaica for 2026.On the weather, I'll talk a little bit about the weather and then I'll pass it on to Chris to talk about the insurance, because as you pointed out, everything we have, we've got appropriate coverage, and Chris indicated the payout from last year, just to remind everybody, that we did get paid for the damage in Jamaica.

Speaker #4: And it's not in small part due to the efforts of our team on the ground, led by a very capable young man, the manager there, and my team in Miami as well.

Speaker #4: Also led by an amazing young lady that's just completely focused on Jamaica for 2026. Now on the weather, I'll talk a little bit about the weather and then I'll pass it on to Chris to talk about the insurance.

Balan Nair: On the weather, I'll talk a little bit about the weather and then I'll pass it on to Chris to talk about the insurance, because as you pointed out, everything we have, we've got appropriate coverage, and Chris indicated the payout from last year, just to remind everybody, that we did get paid for the damage in Jamaica. On the weather front, it's something that we track very closely. My team and I starting in July, the NOAA website is like a permanent fixture on all of our screens. As a matter of fact, next week, I'm taking my whole leadership team up to the NOAA headquarters up in Boulder and meeting with a lot of climatologists and hurricane experts. We actually understand the weather patterns better. There's some things just beyond our control. The right way to handle this is through hedging it.

Speaker #4: Because as you pointed out, everything we have we've got appropriate coverage. And Chris kind of indicated the payout from last year just to remind everybody.

Speaker #4: That we did get paid for the damage in Jamaica. On the weather front, it's something that we track very closely. I mean, my team and I I mean, starting in July, the NOAA website is like a permanent fixture on all of our screens.

Balan Nair: On the weather front, it's something that we track very closely. My team and I starting in July, the NOAA website is like a permanent fixture on all of our screens. As a matter of fact, next week, I'm taking my whole leadership team up to the NOAA headquarters up in Boulder and meeting with a lot of climatologists and hurricane experts.

Speaker #4: And, as a matter of fact, next week I'm taking my whole leadership team up to the NOAA headquarters up in Boulder and meeting with a lot of climatologists and hurricane experts.

Speaker #4: So we actually understand the weather patterns better but there's something just beyond our control. The right way to handle this is through hedging it.

Balan Nair: We actually understand the weather patterns better. There's some things just beyond our control. The right way to handle this is through hedging it.Our parametric insurance plans have been actually very good. I don't see any issues with that going forward, but I'm going to let Chris talk about it.

Speaker #4: And our parametric insurance plans have actually been very good. I don't see any issues with that going forward, but I'm going to let Chris talk about it.

Balan Nair: Our parametric insurance plans have been actually very good. I don't see any issues with that going forward, but I'm going to let Chris talk about it.

Speaker #3: Yeah. So hi, Matt. Yeah. I mean, for upcoming season, we are fully locked in terms of the parametric. I think we were one of the kind of key global issues of the parametric.

Chris Noyes: Yes. Hi, Matt. Yeah. For upcoming season, we are fully locked in terms of the parametric. I think we are one of the kind of key global issuers of the parametric. We were able to do it even with the event we had in Jamaica with a very cost-effective cover, similar to prior years. We feel good about what we have for the upcoming season. It's been done for several months, to be honest.

Speaker #3: So we were able to do it in a even with the event we had in Jamaica with a very cost-effective cover. Similar to prior years.

Speaker #3: So I think we feel good about what we have for the upcoming season. It's been done for several months, to be honest.

Speaker #4: Thanks, Chris.

Balan Nair: Thanks, Chris.

Speaker #2: That will conclude today's question-and-answer session. I'd like to hand back to Balan Nair for any additional or closing remarks.

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

Speaker #4: Thank you, operator. And thank you, everybody this morning for jumping on this call. We feel really positive about the business. Our focus on free cash flow and our focus on running the operations efficiently and very balanced against the needs of our customers and the needs of our shareholders.

Balan Nair: Thank you, operator. Thank everybody this morning for jumping on this call. We feel really positive about the business. Our focus on free cash flow and our focus on running the operations efficiently and very balanced against the needs of our customers and the needs of our shareholders. I think we've struck that, and we feel really good about the future. If you look at our Q2, we delivered positive net adds in both broadband and mobile postpaid. We delivered OIBDA growth. We delivered free cash flow growth. We're paying out dividends. We're buying back stock. This team is very focused on our shareholders and very focused on value creation. I want to thank you for your support.

Speaker #4: And I think we've struck that. And we feel really good about the future. If you look at our second quarter, we delivered positive net ads in both broadband and mobile postpaid.

Speaker #4: We delivered OIBDA growth. We delivered free cash flow growth. Paying out dividends. We're buying back stock. This team is very focused. Very focused on our shareholders and very focused on value creation.

Balan Nair: We delivered OIBDA growth. We delivered free cash flow growth. We're paying out dividends. We're buying back stock. This team is very focused on our shareholders and very focused on value creation. I want to thank you for your support.

Speaker #4: And I want to thank you for your support.

Speaker #2: Ladies and gentlemen, this concludes Liberty Latin America's second quarter 2026 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.

Operator: Ladies and gentlemen, this concludes Liberty Latin America's Second Quarter 2026 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.

Q2 2026 Liberty Latin America Ltd Earnings Call

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