Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q2 2018 Earnings Presentation
19 slides from Liberty Latin America's earnings presentation, Aug 9, 2018
Slide 1: Q2 2018 Investor Call
Q2 2018 INVESTOR CALL AUGUST 9, 2018 1
Slide 2: Safe Harbor: Forward-Looking Statements and Disclaimer
“SAFE HARBOR” Forward-Looking Statements and Disclaimer acquisitions and dispositions; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; This presentation contains forward-looking statements within the meaning of the avail
Slide 3: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q2 2018 RESULTS 3 APPENDIX Liberty Latin America Investor Call | Q2 2018 | August 9, 2018 3
Slide 4: Liberty Latin America | Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES Delivered 61,000 RGU additions in Q2, driven by record broadband gains 1 C&W FIXED-LINE INITIATIVES YIELDING RESULTS; SOLID EXECUTION AT VTR 2 RESTORATION OF PUERTO RICO NEARLY COMPLETE 3 FOOTPRINT EXPANSION CONTINUES; OVER 160,000 HOMES YEAR-TO-DATE 4 ENHANCING
Slide 5: Liberty Puerto Rico Update
(1) LIBERTY PUERTO RICO UPDATE Successfully leveraging our network & products to drive growth (2) NETWORK RESTORATION NEARLY COMPLETE LIBERTY PUERTO RICO RGUs IN THOUSANDS • Restoration process in final stage 804 • 100% of nodes on-line today 739 723 711 717 • Focused on connecting remaining custome
Slide 6: Consumer | Best Connectivity & Great Entertainment
CONSUMER | BEST CONNECTIVITY & GREAT ENTERTAINMENT Investing in networks, market-leading products & services to drive sustainable growth FIXED-LINE RESIDENTIAL MOBILE RESIDENTIAL ~50% ~20% OF REVENUE OF REVENUE DELIVERING SUPERFAST BROADBAND DELIVERING SEAMLESS & UBIQUITOUS CONNECTIVITY • > 100 Mbps
Slide 7: B2B | Exploiting Our Scale & Product Portfolio
B2B | EXPLOITING OUR SCALE & PRODUCT PORTFOLIO Capitalize on our unique sub-sea, fixed & mobile networks and data centers across the region B2B – PLATFORM EVOLUTION Q2 2018 B2B REVENUE – AS % OF TOTAL REVENUE ~30% OF REVENUE Leveraging our high-speed networks to bring an enhanced suite of solutions
Slide 8: Strategic Vision | Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES Focused on building a foundation for sustainable growth LEVERAGING PRODUCT SCALE INNOVATION EXPANDING BASE B2B MANAGEMENT ENHANCED NETWORK OPPORTUNISTIC CUSTOMER INVESTMENTS M&A EXPERIENCE Liberty Latin America Investor Call | Q2 2018 | August 9, 201
Slide 9: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q2 2018 RESULTS 3 APPENDIX Liberty Latin America Investor Call | Q2 2018 | August 9, 2018 9
Slide 10: Q2 2018 Subscriber Results
(1,2) Q2 2018 SUBSCRIBER RESULTS Fixed RGU momentum continues, supported by our new build and upgrade activities Q2 2018 NET ADDITIONS BY MARKET Q2 2018 NET ADDITIONS BY PRODUCT IN THOUSANDS IN THOUSANDS • Total subscriber additions: 61,000 45 • VTR: Best broadband quarter in two FIXED 29 years; con
Slide 11: Q2 2018 Financial Results
(1) Q2 2018 FINANCIAL RESULTS Group year-over-year financial performance impacted by Hurricanes REVENUE OCF P&E ADDITIONS USD MM USD MM USD MM; AS % OF REVENUE The evolution is here (2)% REBASED 921 922 (5)% REBASED 24% 19% 362 353 218 171 Q2 2017 Q2 2018 Q2 2017 Q2 2018 Q2 2017 Q2 2018 ADJUSTED FCF
Slide 12: Q2 2018 Regional Results
(1) Q2 2018 REGIONAL RESULTS Strong VTR financial performance; Liberty Puerto Rico recovering CABLE & WIRELESS VTR LIBERTY PUERTO RICO RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH USD MM USD MM USD MM 584 $28MM GAP VS Q2 2017 260 MAINLY DUE TO HURRICANES $18MM AS % OF G
Slide 13: Conclusions
CONCLUSIONS Setting the stage for 2019 1 STRONG FIXED-LINE OPERATIONAL PERFORMANCE 2 CONTINUED SEQUENTIAL IMPROVEMENT IN PUERTO RICO 3 ENHANCING FIXED & MOBILE NETWORK CAPABILITIES 4 INVESTING IN BEST-IN-CLASS PRODUCTS & CUSTOMER SERVICE 5 REMAIN ON-TRACK TO ACHIEVE 2018 FINANCIAL GUIDANCE Liberty L
Slide 14: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q2 2018 RESULTS 3 APPENDIX Liberty Latin America Investor Call | Q2 2018 | August 9, 2018 14
Slide 15: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION B2B – Business-to-business subscription revenue represents revenue from services to certain SOHO subscribers (fixed and mobile). B2B non-subscription revenue includes business broadband internet, video, telephony, mobile and data services offered to medium to l
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Net Leverage – Our gross and net debt ratios are defined as total debt and net debt to annualized OCF of the latest quarter. Net debt is defined as total debt less cash and cash equivalents. For purposes of these calculations, debt is measured using swapped for
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Information on Rebased Growth: For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2018, we have adjusted our historical revenue and OCF for the three and six months ended June 30, 2017 to (i) include t
Slide 18: Operating Cash Flow Definition and Reconciliation
OPERATING CASH FLOW DEFINITION AND RECONCILIATION As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our Form 10-Q. OCF is the primary measure used by our chief operating decision maker to evaluate segment operating performance. OCF is also a key factor that
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-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (ii) expenses financed by an intermediar
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