Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q3 2018 Earnings Presentation
20 slides from Liberty Latin America's earnings presentation, Nov 8, 2018
Slide 1: Liberty Latin America Q3 2018 Investor Call
LIBERTY LATIN AMERICA Q3 2018 INVESTOR CALL NOVEMBER 8, 2018 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 acquisitions and dispositions; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2018 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Key Messages: Return to Rebased Growth
LIBERTY LATIN AMERICA | KEY MESSAGES RETURN TO REBASED GROWTH 01 Q3 rebased top-line growth of 3% and OCF growth of 4% 02 42,000 RGU adds powered by robust broadband gains 03 Expanding high-speed footprint; > 260,000 homes YTD 04 Launched “Moments that Matter” campaign in Panama 05 Completed acquisi
Slide 5: Fixed: Investing in High-Speed Networks
FIXED | INVESTING IN HIGH-SPEED NETWORKS(1) ~50% DELIVERING LEADING SPEEDS ACROSS MARKETS OF REVENUE GROWING RGU ADDITIONS UPGRADING AND EXPANDING FOOTPRINT INCREASING DEMAND FOR SPEED IN THOUSANDS IN THOUSANDS >100 Mbps <100 Mbps 2% +40% 30% 136 465 98% 70% 353 94 97 Q3 2017 Q3 2018 266 69% 81% 31%
Slide 6: Mobile: Driving LTE Adoption
MOBILE | DRIVING LTE ADOPTION(1) ~20% REFRESHED PROPOSITIONS TO DRIVE ENHANCED CUSTOMER EXPERIENCE OF REVENUE TOTAL LTE SUBSCRIBERS ON-THE-GO APPLICATIONS IN THOUSANDS +29% 1,115 865 430 Q4 2016 Q4 2017 Q3 2018 • Continued strong LTE subscriber growth • Top-up and pay bills instantly through app • L
Slide 7: B2B: Leveraging Networks and Innovation
B2B | LEVERAGING NETWORKS AND INNOVATION(1) ~30% BUILDING OUR CUSTOMER SUCCESS FROM CONNECTIVITY TO SOLUTIONS OF REVENUE B2B DELIVERING SOLID GROWTH SUCCESSFUL SEGMENTS FOR B2B PREMIER (SUB-SEA) NETWORK USD MM 7.5% REBASED 284 Government Finance Retail Hospitality 264 BUILDING SCALABLE B2B OPERATION
Slide 8: Advancing Our Inorganic Strategy
ADVANCING OUR INORGANIC STRATEGY(1) ACQUISITIONS OF LCPR MINORITY AND CABLETICA ACQUIRED MINORITY STAKE IN LCPR OPERATIONAL RECOVERY ACQUISITION OF 80% STAKE IN A LEADING BILLABLE RGUS IN THOUSANDS COSTA RICAN CABLE OPERATOR 699 647 • Acquired 40% interest from Searchlight Capital • Issued 9.5mm sha
Slide 9: Strategic Vision: Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES 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 | Q3 2018 INVESTOR CALL | NOVEMBER 8, 2018 | 9
Slide 10: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2018 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 11: Q3 2018 Financial Results
Q3 2018 FINANCIAL RESULTS(1) REBASED REVENUE GROWTH DRIVEN BY VTR AND PUERTO RICO Q3 RGU ADDITIONS REVENUE OCF IN THOUSANDS USD MM USD MM 3% REBASED +42 4% REBASED 908 925 352 364 22 17 3 VTR C&W LCPR Q3 2017 Q3 2018 Q3 2017 Q3 2018 Q3 MOBILE ADDITIONS / (LOSSES) P&E ADDITIONS ADJUSTED FCF IN THOUSA
Slide 12: Q3 2018 Regional Results
Q3 2018 REGIONAL RESULTS(1) REBASED REVENUE AND OCF GROWTH ACROSS ALL THREE REGIONS RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH USD MM USD MM USD MM 581 246 227 AS % OF 16% REVENUE AS % OF 100 20% REVENUE 100 93 AS % OF 25% REVENUE 49 50 25 REVENUE OCF P&E ADDITIONS RE
Slide 13: Robust Balance Sheet
ROBUST BALANCE SHEET(1) EXTENSIVELY HEDGED DEBT POSITION WITH LONG DATED MATURITY PROFILE DEBT BREAKDOWN 27% VTR 6.3% 15% LCPR WEIGHTED AVERAGE DEBT MATCHED TO $6.7BN COST OF DEBT OCF FUNCTIONAL CURRENCY 85% TOTAL 58% CABLE & WIRELESS $1.5BN ~97% DEBT(2) LIQUIDITY(3) INTEREST FIXED MATURITY SCHEDULE
Slide 14: Conclusions
CONCLUSIONS HIGH-SPEED BROADBAND CONNECTIVITY & B2B LEADING THE CHARGE 01 Operating momentum continues 02 Investing in innovation & superior networks 03 Launched exciting fall campaigns 04 Integration of Cabletica in full swing 05 Confirming full-year 2018 financial guidance LIBERTY LATIN AMERICA |
Slide 15: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q3 2018 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION ARPU broadcast directly via satellite. Average revenue per unit refers to the average monthly subscription revenue (subscription revenue excludes interconnect, mobile handset sales and late fees) per average customer relationship or mobile ENHANCED VIDEO SUBSCR
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION INTERNET (BROADBAND) SUBSCRIBER contain one or more RGUs. For example, if a residential customer in Chile subscribed to our enhanced A home, residential multiple dwelling unit or commercial unit that receives internet services over our video service, fixed-line
Slide 18: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION INFORMATION ON REBASED GROWTH policies and those of the Carve-out Entities and (d) other items we deem appropriate. We do not adjust For purposes of calculating rebased growth rates on a comparable basis for all businesses that we pre-acquisition periods to eli
Slide 19: 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 resulted in certain pension-related credits being reclassified from SG&A expense to non-operating Form 10-Q. OCF is the primary measure used by our chief
Slide 20: Adjusted Free Cash Flow Definition and Reconciliations
ADJUSTED FREE CASH FLOW DEFINITION(1) AND RECONCILIATIONS We define Adjusted FCF as net cash provided by our operating activities, plus (i) cash payments for third- presentation of Adjusted FCF provides useful information to our investors because this measure can be party costs directly associated w
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