Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q3 2024 Earnings Presentation
28 slides from Liberty Latin America's earnings presentation, Nov 7, 2024
Slide 1: Liberty Latin America Q3 2024 Investor Call
LIBERTY LATIN AMERICA Q3 2024 INVESTOR CALL November 7, 2024 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statements and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS & DISCLAIMER ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX
Slide 4: Liberty Latin America Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES(1) ROBUST SUBSCRIBER GROWTH YTD; SEQUENTIAL FINANCIAL IMPROVEMENT ANTICIPATED IN Q4 1 2 3 4 +50K $1.2BN $1BN STRATEGIC YTD INTERNET YTD ADJUSTED NEW C&W INITIATIVES & POSTPAID OIBDA SENIOR NOTES NET ADDS Successful new C&W Wow Peru investment ~225k internet & YTD
Slide 5: C&W Caribbean: Robust Financial Performance
C&W CARIBBEAN | ROBUST FINANCIAL PERFORMANCE(1) SUBSCRIBER NET ADDS IMPACTED BY HURRICANE BERYL; CONTINUED ADJ. OIBDA GROWTH INTERNET RGU EVOLUTION REVENUE BY PRODUCT KEY MESSAGES INTERNET NET RGU ORGANIC ADDITIO NS (LO SSES) | IN THOUSANDS Q3 YTD 2 024 FIX ED MOBILE B2B YoY ADDs +2 • Fixed subscrib
Slide 6: C&W Panama: Continued Operating & Financial Progress
C&W PANAMA | CONTINUED OPERATING & FINANCIAL PROGRESS(1) SUBSCRIBER MOMENTUM; FIRST OPERATOR IN MARKET TO LAUNCH 5G INTERNET RGU EVOLUTION REVENUE BY PRODUCT KEY MESSAGES INTERNET NET RGU ORGANIC ADDITIO NS (LO SSES) | IN THOUSANDS Q3 YTD 2 024 FIX ED MOBILE B2B YoY ADDs +26 • Continued subscriber m
Slide 7: Liberty Costa Rica: Subscriber Momentum
LIBERTY COSTA RICA | SUBSCRIBER MOMENTUM(1) SUSTAINED REVENUE GROWTH DRIVEN BY SUBSCRIBER BASE EXPANSION; POSTPAID ABOVE 1 MILLION INTERNET RGU EVOLUTION REVENUE BY PRODUCT KEY MESSAGES INTERNET NET RGU ORGANIC ADDITIO NS (LO SSES) | IN THOUSANDS Q3 YTD 2 024 FIX ED MOBILE B2B YoY ADDs +11 • Stable
Slide 8: Liberty Networks: Continued Enterprise Growth
LIBERTY NETWORKS | CONTINUED ENTERPRISE GROWTH(1) PARTNERSHIP WITH GOLD DATA & SPARKLE TO CAPTURE GROWING DEMAND YoY REVENUE EVOLUTION NEW PAN- REGIONAL SUBSEA CABLE SYSTEM IN USD MILLIONS ENTERP RISE WHOLESA LE (EXCL. IRUs) IRUs ~5.6K New subsea cable system, operational by 340 338 KILOMETERS H2 20
Slide 9: Liberty Puerto Rico: Recovery Underway
LIBERTY PUERTO RICO | RECOVERY UNDERWAY(1) INTERNET IMPACTED BY ACP DISCONNECTIONS; SEQUENTIAL ADJ. OIBDA GROWTH INTERNET RGU EVOLUTION REVENUE BY PRODUCT KEY MESSAGES INTERNET NET RGU ORGANIC ADDITIO NS (LO SSES) | IN THOUSANDS Q3 YTD 2 024 FIX ED MOBILE B2B OTHER YoY ADDs +3 • Internet adds impact
Slide 10: Liberty Puerto Rico: Improving Metrics
LIBERTY PUERTO RICO | IMPROVING METRICS(1) DELIVERING BETTER PERFORMANCE CUSTOMER SALES NPS SENTIMENT AVERAGE SALES PER MONTH MOBILE POSTPAID NPS POSITIVE MONTHLY SENTIMENT PREPAID B 2C PO STP AID B2C 55% MIGRATION PERIO D LO WE ST DURING 42% MIGRATION +50 (25) 23% 2021 2022 2023 H1 2024 Q3 2024 OCT
Slide 11: Track Record of Value Creation
TRACK RECORD OF VALUE CREATION (1) DRIVING ORGANIC & INORGANIC GROWTH THROUGH SUCCESSFULLY INTEGRATED OPERATIONS ADJUSTED OIBDA EVOLUTION IN USD MILLIONS COSTA RICA 597 625 CLARO PAN TEF CR 535 ACQ. IN H2 202 2 ACQ. IN H2 202 1 473 483 228 257 220 177 200 189 203 135 55 80 2020 2021 2022 2023 LTM Q3
Slide 12: Strategic Initiative: Wow Peru
STRATEGIC INITIATIVE | WOW PERU PERU GREENFIELD VENTURE; ~3 MILLION HOMES PASSED WITH FIBER-TO-THE-HOME (FTTH) KEY INVESTMENT HIGHLIGHTS FOOTPRINT COVERAGE AREAS 200K+ HPs 50-200 k HPs <50K HP s ~3 Partnership with local team since 2021; aggressively MILLION building FTTH homes over the past four ye
Slide 13: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX
Slide 14: Group Revenue & Adjusted OIBDA
GROUP REVENUE & ADJUSTED OIBDA(1) SEQUENTIAL ADJ. OIBDA GROWTH DRIVEN BY PANAMA & PUERTO RICO SEQUENTIAL YEAR-OVER-YEAR IN USD MILLIONS IN USD MILLIONS REVENUE ADJUSTED OIBDA REVENUE ADJUSTED OIBDA (3)% +4% (4)% (6)% REPORTED REPORTED REBASED REBASED 1,118 1,089 1,126 1,089 389 403 428 403 Q2 24 Q3
Slide 15: Group P&E Additions & Adjusted FCF
GROUP P&E ADDITIONS & ADJUSTED FCF(1) INVESTMENTS IN FTTH FOOTPRINT; FCF GROWTH YOY Q3 2024 P&E ADDITIONS ADJUSTED FCF IN USD MILLIONS PRODUCT & E NAB LERS CAPACITY CPE NEW B UILD & UPGRADE BAS ELINE IN USD MILLIONS DIS TRIBUTIONS TO NCI PERCENTAG E OF REVENUE 17% 16% +44 187 171 10% 10% 77 13% 13%
Slide 16: Segment Financial Results
SEGMENT FINANCIAL RESULTS(1) ROBUST ADJ. OIBDA GROWTH IN C&W CARIBBEAN & C&W PANAMA; LPR SEQUENTIAL IMPROVEMENT PUERTO RICO COSTA RICA Q3 2024 IN USD MILLIONS 360 14% 14% 9% 15% 16% AS % OF AS % OF AS % OF 308 AS % OF AS % OF REVENUE REVENUE REVENUE REVENUE REVENUE 158 188 146 110 88 51 69 59 46 51
Slide 17: Liberty Puerto Rico: 2024 Performance Deep-Dive
LIBERTY PUERTO RICO | 2024 PERFORMANCE DEEP-DIVE(1) STABILIZING TOP-LINE; DEVELOPING ADJ. OIBDA QUARTERLY 2024 REVENUE IN USD MILLIONS 327 309 308 REVENUE • Broadly flat sequential revenue in Q3 • $3m from inclusion of Boost, offset by storm credits & FCC reduction Q1 Q2 Q3 QUARTERLY 2024 ADJUSTED O
Slide 18: Balance Sheet & Liquidity Position
BALANCE SHEET & LIQUIDITY POSITION(1) C&W $1BN NEW ISSUANCE PRICED AT ATTRACTIVE LEVELS; FURTHER IMPROVING MATURITY SCHEDULE KEY METRICS MATURITY SCHEDULE(5) IN USD MILLIONS C&W LPR LCR $8.2 6.2 BILLION PERCENT 2,617 TOTAL TOTAL DEBT DEBT CASH(3) WACD OR BEYO ND DUE IN 20 27 1,904 99% 1,410 1,001 5.
Slide 19: Conclusions
CONCLUSIONS(1) POSITIONED TO ACCELERATE INTO Q4 1 2 3 OPERATIONAL CAPITAL LIBERTY PUERTO RICO MOMENTUM ALLOCATION Sequentially strong B2B & YoY Operational rebound Convertible note redemption subscriber growth underpinning progressing; expecting to improve Echostar PR & USVI acquisition Q4 expected
Slide 20: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX
Slide 21: Definitions & Additional Information
DEFINITIONS & ADDITIONAL INFORMATION ADJUSTED OIBDA MARGIN subscribers. Customers who do not pay a recurring monthly fee are excluded from our mobile telephony Calculated by dividing Adjusted OIBDA by total revenue for the applicable period. subscriber counts after periods of inactivity ranging from
Slide 22: Information on Rebased Growth
INFORMATION ON REBASED GROWTH Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a changes in estimates that might be implemented during post-acquisition periods. As we did not own or operate comparable basis for all businesses that we owned during the cu
Slide 23: Information on Rebased Growth (Cont.)
INFORMATION ON REBASED GROWTH (CONT.) Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a changes in estimates that might be implemented during post-acquisition periods. As we did not own or operate comparable basis for all businesses that we owned durin
Slide 24: Adjusted Free Cash Flow Definition & Reconciliation
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our distributions to noncontrolling interest owners. We believe that our presentation of Adjusted FCF provides operating activities, plus (i) cash payment
Slide 25: Adjusted OIBDA Definition & Reconciliation
ADJUSTED OIBDA DEFINITION & RECONCILIATION On a consolidated basis, Adjusted OIBDA, a non-GAAP measure, is the primary measure used by our chief represents a transparent view of our recurring operating performance that is unaffected by our capital structure operating decision maker to evaluate segme
Slide 26: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and net measured using swapped foreign currency rates. We believe our consolidated leverage and net leverage ratios leverage ratios (Consolidat
Slide 27: Adjusted OIBDA & Adjusted OIBDA less P&E Additions Reconciliation
ADJUSTED OIBDA & ADJUSTED OIBDA LESS PROPERTY & EQUIPMENT ADDITIONS RECONCILIATION The table below reconciles 1) Revenue, 2) Adjusted OIBDA and 3) Adjusted OIBDA less P&E Additions for the twelve months ended September 30, 2024. Adjusted OIBDA & Adjusted OIBDA less Property & Equipment Additions C&W
Slide 28: Property & Equipment Additions & Capital Expenditures
PROPERTY & EQUIPMENT ADDITIONS & CAPITAL EXPENDITURES The table below reconciles from cash paid for capital expenditures, net to property and equipment additions for the period indicated. P&E Additions Three months ended September 30, 2023 September 30, 2024 in USD millions; except for percentages C
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