Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q1 2018 Earnings Presentation
19 slides from Liberty Latin America's earnings presentation, May 9, 2018
Slide 1: Q1 2018 Investor Call
Q1 2018 INVESTOR CALL MAY 9, 2018 Liberty Latin America Investor Call | Q1 2018 | May 9, 2018 1
Slide 2: Safe Harbor: Forward-Looking Statements and Disclaimer
“SAFE HARBOR” Forward-Looking Statements and Disclaimer successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive This presentation contains forward-looking statements within the meaning of programming for our vide
Slide 3: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q1 2018 RESULTS 3 APPENDIX Liberty LibertyLatin LatinAmerica AmericaInvestor InvestorCall Call| Q1 | Q12018 2018| May | May9,9,2018 2018 3
Slide 4: Liberty Latin America | Key Q1 Messages
LIBERTY LATIN AMERICA | KEY Q1 MESSAGES Establishing foundation for sustainable growth 1 ENCOURAGING C&W RESULTS, CONSISTENT GROWTH IN VTR 2 LIBERTY PUERTO RICO DELIVERED SUBSTANTIAL IMPROVEMENT FROM Q4 3 LAUNCHING NEW PRODUCTS & MARKET-LEADING BUNDLES ACROSS REGION 4 OVER 80,000 HOMES BUILT / UPGRA
Slide 5: Puerto Rico Update
(1) PUERTO RICO UPDATE Product leadership is driving our gross additions back to pre-hurricane levels (2) NETWORK RESTORATION LARGELY COMPLETED LIBERTY PUERTO RICO RGUs IN THOUSANDS • Over $110m invested in network rebuild 804 • ~900k homes serviceable 752 729 723 723 • Service available in nearly a
Slide 6: Network Leadership | Fixed, Mobile & Sub-Sea
NETWORK LEADERSHIP | FIXED, MOBILE & SUB-SEA Investing in our superior networks to drive sustainable growth FIXED NETWORK SPLIT BY TECHNOLOGY MOBILE PLATFORM FOR GROWTH UNIQUE SUB-SEA NETWORK +87% 10% ADSL/VDSL 28% FTTX 3% HFC1 WAY 8% % OF 6.5MM 15% SUBSCRIBERS HP USING LTE1 HFC2 WAY 79% Q1 17 Q1 18
Slide 7: Enhancing Customer Proposition & Experience
ENHANCING CUSTOMER PROPOSITION & EXPERIENCE Bringing product innovation to our markets FIXED-LINE – INVESTING IN INNOVATION IMPROVING CUSTOMER EXPERIENCE VTR TRINIDAD RETENTION CENTER OF EXCELLENCE • Successful launch of Replay TV NO CONTACT CENTER (CC) INITIAL CC RETENTION CC ASSIGNED RETENTION RET
Slide 8: Strategic Vision | Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES Creating a platform for sustainable rebased OCF and Free Cash Flow growth LEVERAGING PRODUCT SCALE INNOVATION EXPANDING BASE B2B MANAGEMENT ENHANCED NETWORK OPPORTUNISTIC CUSTOMER INVESTMENTS M&A EXPERIENCE Liberty Latin America Investor Call | Q1 20
Slide 9: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q1 2018 RESULTS 3 APPENDIX Liberty LibertyLatin LatinAmerica AmericaInvestor InvestorCall Call| Q1 | Q12018 2018| May | May9,9,2018 2018 9
Slide 10: Q1 2018 Subscriber Results
(1) Q1 2018 SUBSCRIBER RESULTS Continued fixed RGU momentum; improving mobile results Q1 2018 NET ADDS BY MARKET Q1 2018 NET ADDS BY PRODUCT IN THOUSANDS IN THOUSANDS • Total subscriber additions: 33,000 37 • VTR: Solid broadband gains; video 25 FIXED 24 additions up year-over-year • C&W: Gains acro
Slide 11: Q1 2018 Financial Results
(1) Q1 2018 FINANCIAL RESULTS YoY comparisons impacted by Hurricanes Irma and Maria REVENUE – YEAR-OVER-YEAR & SEQUENTIAL OCF – YEAR-OVER-YEAR & SEQUENTIAL USD MM USD MM (4)% REBASED +60 911 910 910 (5)% REBASED +50 850 348 341 (2) 341 291 Q1 2017 Q1 2018 Q4 2017 Q1 2018 Q1 2017 Q1 2018 Q4 2017 Q1 2
Slide 12: Q1 2018 Regional Results
(1) Q1 2018 REGIONAL RESULTS Strong OCF performance at both Cable & Wireless and VTR; LCPR rebuilding CABLE & WIRELESS VTR LIBERTY PUERTO RICO RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH USD MM USD MM USD MM 586 $45MM AS % OF 264 GAP VS Q1 2017 MAINLY DUE TO $62MM 113%
Slide 13: Conclusions
CONCLUSIONS Investing in innovation and networks to bring ubiquitous connectivity & great entertainment 1 BUILDING OPERATIONAL MOMENTUM 2 RECOVERY OF OUR BUSINESS IN PUERTO RICO PROGRESSING 3 FOCUSED ON DRIVING FREE CASH FLOW IMPROVEMENT 4 CLOSING OF CABLETICA DEAL EXPECTED IN EARLY H2 5 ON-TRACK TO
Slide 14: Agenda
AGENDA 1 EXECUTIVE SUMMARY 2 Q1 2018 RESULTS 3 APPENDIX Liberty LibertyLatin LatinAmerica AmericaInvestor InvestorCall Call| Q1 | Q12018 2018| May | May9,9,2018 2018 14
Slide 15: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Basic Video Subscriber - A home, residential multiple dwelling unit or commercial unit that receives our video service over our broadband network either via an analog video signal or via a digital video signal without subscribing to any recurring monthly servic
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION Impact of Hurricanes on Subscribers During September 2017, Hurricanes Irma and Maria caused significant damage to our operations in Puerto Rico, as well as certain geographies within C&W, including the British Virgin Islands and Dominica, resulting in disruptio
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 months ended March 31, 2017 to (i) include the pre-
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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