Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q3 2019 Earnings Presentation
19 slides from Liberty Latin America's earnings presentation, Nov 6, 2019
Slide 1: Q3 2019 Investor Call
LIBERTY LATIN AMERICA Q3 2019 INVESTOR CALL November 6, 2019 Part of Liberty Latin America LIBERTY LATIN AMERICA | Q3 2019 INVESTOR CALL | NOVEMBER 6, 2019
Slide 2: Safe Harbor: Forward-Looking Statements and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America LIBERTY LATIN AMERICA | Q3 2019 INVESTOR CALL | NOVEMBER 6, 2019
Slide 4: Liberty Latin America Key Messages
(1) LIBERTY LATIN AMERICA | KEY MESSAGES EXECUTING STRATEGY OF OPERATIONAL EXCELLENCE & INORGANIC GROWTH 1 Continued subscriber momentum with 80,000 additions in Q3, >270,000 YTD 2 Generated $967mm revenue & $380mm OCF in Q3; 2019 guidance reconfirmed 3 Product innovation key: upcoming launch of vid
Slide 5: Fixed: Strong Momentum
(1) FIXED | STRONG MOMENTUM CONTINUED SUBSCRIBER GROWTH DRIVEN BY TAILORED PROPOSITIONS & LEADING NETWORKS Q3 RGU ADDITIONS BY SEGMENT THOUSANDS – FIXED SUBSCRIBER ADDITIONS +71 Q3 +19 207 35 Recovery from Hurricanes Q3 +23 26 136 Q2 -16 Q2 22 +26 17 67 Q1 Q1 42 6 3 Q3 18 Q3 19 Q3 18 Q3 19 Q3 18 Q3
Slide 6: Mobile & B2B: Improving Networks & Execution
(1) MOBILE & B2B | IMPROVING NETWORKS & EXECUTION MOBILE SUBSCRIBER TRACTION & SIGNIFICANT B2B OPPORTUNITY MOBILE SUBS PERFORMANCE IMPROVING LTE SUBSCRIBER GROWTH CONTINUED B2B REVENUE GROWTH THOUSANDS – MOBILE SUBSCRIBER ADDITIONS (LOSSES) THOUSANDS – LTE SUBSCRIBERS USD MM PERCENTAGE – LTE SUBSCRI
Slide 7: Acquisition Highlights
ACQUISITION HIGHLIGHTS LLA TO ACQUIRE AT&T’S OPERATIONS IN PUERTO RICO & USVI(1) LEADING MOBILE PLAYER Announced acquisition of leading mobile operator in Puerto Rico & USVI $1.95 BILLION TRANSACTION RESILIENT INFRASTRUCTURE VALUE(2) Superior mobile network with extensive reach 1.1 MILLION and stron
Slide 8: Strategic Vision: Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES DELIVERING ON OUR VISION BUSINESS PRIORITIES BUILD DRIVE TRANSFORM GROW STRENGTHEN OUR OUR OUR OUR COMPANY OUR BALANCE TEAM PERFORMANCE BUSINESS WITH M&A SHEET POSITIONED FOR SOLID Q4 2019 & BEYOND LIBERTY LATIN AMERICA | Q3 2019 INVESTOR CALL | NOVE
Slide 9: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America LIBERTY LATIN AMERICA | Q3 2019 INVESTOR CALL | NOVEMBER 6, 2019
Slide 10: Q3 & YTD 2019 Financial Results
(1) Q3 & YTD 2019 FINANCIAL RESULTS RECONFIRMING OUR FINANCIAL GUIDANCE FOR 2019 DESPITE IMPACT OF DORIAN REVENUE OCF USD MM USD MM Q3 YTD Q3 YTD (1)% REBASED 2% REBASED 1% REBASED 6% REBASED 2,757 2,892 1,058 1,133 925 967 364 380 Q3 18 Q3 19 YTD 18 YTD 19 Q3 18 Q3 19 YTD 18 YTD 19 P&E ADDITIONS AD
Slide 11: Financial Operating Segment Results
(1) FINANCIAL OPERATING SEGMENT RESULTS REBASED GROWTH RATES IMPACTED BY DORIAN / FCC FUNDING; SUSTAINED GROWTH AT VTR/CT Q3 2019 RESULTS Q3 2019 RESULTS Q3 2019 RESULTS QUARTERLY OCF PERFORMANCE USD MM USD MM USD MM USD MM Hurricane Dorian FY 2018 OCF: $1,487 YTD 2019: $1,133 596 428 Insurance sett
Slide 12: Balance Sheet & Financing Update
BALANCE SHEET & FINANCING UPDATE EXTENDED AVERAGE DEBT TENOR REFINANCING HIGHLIGHTS ▪ Completed $2.2 billion AT&T acquisition financing and LPR refinancing ▪ Credit ratings upgraded ▪ Pro forma average tenor from 5.5 years to 6.4 years ▪ Increased LLA US dollar revenue and debt weighting ADJUSTED(1)
Slide 13: Conclusions
(1) CONCLUSIONS OPERATIONAL EXECUTION & DISCIPLINED M&A SETTING STAGE FOR SUSTAINED FCF GROWTH 1 Operational momentum continuing with strong subscriber adds 2 Targeting strong finish to 2019 3 Announced FCF accretive AT&T acquisition 4 Reconfirming our 2019 Financial Guidance (1) See Appendix for de
Slide 14: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America LIBERTY LATIN AMERICA | Q3 2019 INVESTOR CALL | NOVEMBER 6, 2019
Slide 15: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION FIXED-LINE CUSTOMER RELATIONSHIPS MOBILE SUBSCRIBERS The number of customers who receive at least one of our video, internet or telephony services that we Our mobile subscriber count represents the number of active subscriber identification module (“SIM”) count
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION TWO-WAY HOMES PASSED Homes passed by those sections of our networks that are technologically capable of providing two-way services, including video, internet and telephony services. U.S. GAAP Generally accepted accounting principles in the United States. VIDEO
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION INFORMATION ON REBASED GROWTH identified all adjustments necessary to present their revenue and OCF on a basis that is comparable to For purposes of calculating rebased growth rates on a comparable basis for all businesses that we the corresponding post-acquisi
Slide 18: Operating Cash Flow Definition and Reconciliations
OPERATING CASH FLOW DEFINITION AND RECONCILIATIONS As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our directly comparable to similar measures used by other public companies. OCF should be viewed as a Form 10-Q. OCF is the primary measure used by our chief
Slide 19: Adjusted Free Cash Flow Definition and Reconciliations
ADJUSTED FREE CASH FLOW DEFINITION AND RECONCILIATIONS We define Adjusted FCF as net cash provided by our operating activities, plus (i) cash payments for third- replace the property and equipment that was damaged or destroyed as a result of the Hurricanes. We party costs directly associated with su
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