Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q2 2019 Earnings Presentation
21 slides from Liberty Latin America's earnings presentation, Aug 7, 2019
Slide 1: Liberty Latin America Q2 2019 Investor Call
LIBERTY LATIN AMERICA Q2 2019 INVESTOR CALL August 7, 2019 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 AND DISCLAIMER acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targets;
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q2 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Key Messages
(1) LIBERTY LATIN AMERICA | KEY MESSAGES FOLLOWING GOOD START TO 2019, COMMERCIAL MOMENTUM CONTINUED 1 Solid RGU Growth in Q2 with 67,000 Fixed and 44,000 Mobile Additions 2 Delivered 3% Rebased Revenue and 8% Rebased OCF Growth 3 Pushing Innovation; Leading Broadband Speeds & Enhancing Video 4 Upgr
Slide 5: Fixed: Delivering Powerful Propositions
(1) FIXED | DELIVERING POWERFUL PROPOSITIONS SOLID SUBSCRIBER GROWTH DRIVEN BY SUPERIOR CONNECTIVITY AND NETWORK INVESTMENTS H1 RGU ADDITIONS BY SEGMENT UPGRADING AND EXPANDING OUR FOOTPRINT IN THOUSANDS – FIXED SUBSCRIBER ADDITIONS IN THOUSANDS – HOMES PASSED BUILT & UPGRADED +80 240 +45 140 160 Q2
Slide 6: Mobile: Offering Leading Speeds & Expanding LTE
(1) MOBILE | OFFERING LEADING SPEEDS & EXPANDING LTE OPERATING ROBUST NETWORKS & OFFERING ENHANCED CUSTOMER PROPOSITIONS SUBSCRIBER PERFORMANCE IMPROVING LTE SUBSCRIBER GROWTH IN THOUSANDS – MOBILE SUBSCRIBER ADDITIONS (LOSSES) IN THOUSANDS – LTE SUBSCRIBERS PERCENTAGE – LTE SUBSCRIBERS AS % OF BASE
Slide 7: B2B: Valuable Assets with Unique Reach
(1) B2B | VALUABLE ASSETS WITH UNIQUE REACH GROWTH IN LATIN AMERICA’S BANDWIDTH DEMAND UNDERPINS B2B OPPORTUNITY B2B REVENUE DELIVERING SOLID GROWTH BREAKDOWN OF OUR B2B REVENUE IN USD MM H1 2019 5% REBASED C&W CONSUMER 65% MARKETS SIMPLICITY LCPR 4% 596 563 VTR 2% SERVICE $596 MILLION SECURITY C&W
Slide 8: Strategic Vision: Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES SETTING THE STAGE FOR 2020 GROWTH BUSINESS PRIORITIES H2 2019 FOCUS AREAS BUILD OUR TEAM 1 OFFER LEADING PROPOSITIONS DRIVE OUR PERFORMANCE 2 EXPAND OUR NETWORKS TRANSFORM OUR BUSINESS 3 DIGITAL TRANSFORMATION GROW OUR COMPANY WITH M&A 4 INTEGRATE AC
Slide 9: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q2 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 10: Q2 2019 Financial Results
(1) Q2 2019 FINANCIAL RESULTS LOWER CAPITAL INTENSITY AND OCF GROWTH DRIVE ADJUSTED FCF IMPROVEMENT YOY REVENUE OCF P&E ADDITIONS ADJUSTED FCF USD MM USD MM USD MM; AS % OF REVENUE USD MM 3% REBASED 983 922 8% REBASED 387 24% 353 17% 218 +82 166 68 Q2 18 Q2 18 Q2 19 Q2 18 Q2 19 Q2 18 Q2 19 Q2 19 (14
Slide 11: Q2 2019 Financial Operating Segment Results
(1) Q2 2019 FINANCIAL OPERATING SEGMENT RESULTS B2B & FIXED GROWTH OFFSET BY LOWER MOBILE REVENUE AT C&W; GROWTH AT VTR/CT & LIBERTY PUERTO RICO Q2 2019 RESULTS Q2 2019 RESULTS Q2 2019 RESULTS USD MM USD MM USD MM LCPR REVENUE RECOVERY 108 607 104 80 275 235 Q2 17 Q2 18 Q2 19 104 AS % OF 14% REVENUE
Slide 12: Quarterly OCF Progression
QUARTERLY OCF PROGRESSION C&W AND VTR/CT DELIVERED SEQUENTIAL OCF GROWTH IMPROVEMENT OCF PERFORMANCE OCF PERFORMANCE QUARTERLY OCF PERFORMANCE USD MM USD MM USD MM FY 2018 OCF: $1,487 H1 2019 OCF: $753 3% 428 Insurance settlement REBASED (2)% 235 6% 64 387 FCC 364 366 REBASED 3% 353 223 11 112 341 3
Slide 13: Delivering on Key Efficiency Metrics
(1) DELIVERING ON KEY EFFICIENCY METRICS POWERED BY LEVERAGING OUR SCALE BENEFITS & BUSINESS TRANSFORMATION OPEX EFFICIENCY OPPORTUNITY OCF MINUS P&E ADDITIONS OPPORTUNITY (2) OPEX / REVENUE - EXCLUDING SHARE-BASED COMPENSATION (OCF – P&E ADDITIONS) / REVENUE (110) bps 38.4% 37.3% 790 bps 23.3% 15.4
Slide 14: Balance Sheet & Financial Guidance
BALANCE SHEET & FINANCIAL GUIDANCE STRENGTHENING OF BALANCE SHEET KEY TO SUCCESS FOR LEVERED EQUITY MODEL AS AT JUNE 30, 2019 LLA FINANCIAL GUIDANCE 2019 LLA FINANCIAL GUIDANCE 2019 – UPDATE AS GIVEN ON FEBRUARY 20, 2019 OCF (4) OCF (4) 6.4% 1 > $1.525 billion 1 > $1.525 billion FULLY-SWAPPED BORROW
Slide 15: Conclusions
(1) CONCLUSIONS FOCUSED ON UNLOCKING ORGANIC & INORGANIC OPPORTUNITIES ACROSS FIXED, MOBILE AND B2B 1 Cable & Wireless’ Revamped Campaigns Driving Results 2 VTR Returned to Solid Subscriber & Financial Growth in Q2 3 H2 OCF to be Supported by Cost Savings 4 Increasing our 2019 Financial Guidance for
Slide 16: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q2 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 17: 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 18: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION REVENUE GENERATING UNIT (“RGU”) VIDEO SUBSCRIBER RGU is separately a video subscriber, internet subscriber or telephony subscriber. A home, residential A home, residential multiple dwelling unit or commercial unit that receives our video service over our multip
Slide 19: Definitions and Additional Information: Rebased Growth
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 20: OCF and OCF Minus P&E Additions Definitions and Reconciliations
OPERATING CASH FLOW AND OPERATING CASH FLOW MINUS P&E ADDITIONS DEFINITIONS AND RECONCILIATIONS As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our the performance of other companies in the same or similar industries, although our measure may not be Form 1
Slide 21: 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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