Liberty Latin America Ltd.

Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. I'll now turn the call over to Rocio Lorenzo, Chief Customer Officer of Liberty Latin America.

Good morning and welcome to Liberty Latin America's second quarter 2022 investor call. At this time, all participants are in listen-only mode. Today's formal presentation materials can be found under the investor section of Liberty Latin America's website at www.lna.com. Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded and will be available under the investor section of our website. Today's remarks may include forward-looking statements including the company's expectations with respect to its outlook and future growth prospects, and other information and statements that are not historical fact. Actual results may differ materially from those expressed or implied by these statements. For more information, please refer to the risk factors discussed in Liberta Latin America's most recently filed annual report on Form 10-K and the quarterly report on Form 10-Q, most recently filed with the SEC, along with the associated press release. Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the investor section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Rocio. and welcome everybody to Liberty Latin America's second quarter results presentation. I'll begin with our group highlights and an overview of our operating results. Chris Noyes, our CFO, will then follow with a review of the company's financial performance. After that, we'll get straight to your questions. As always, I'm joined by my executive team from across the region, and I will invite them to contribute as needed during the Q&A following our prepared remarks. As a point of housekeeping, We will both be working from slides, which you can find on our website at www.lla.com. Starting on slide four and our highlights for the quarter, each of which we'll pick up in further detail during the presentation. Revenue is up by 1% on a rebase basis, which was in line with our first quarter performance. Our Q2 performance was driven by 6% year-over-year rebase growth in CNW and Panama, and Liberty, Costa Rica, which was up 10% year-over-year on a rebase basis. Our fixed internet subscriber base grew by 9,000 in the second quarter as we reported record ads in Costa Rica and an important return to growth in CNW, driven by Jamaica. In mobile, We continue to see exciting results from our commercial focus on post-paid, and Q2 was the second consecutive quarter which we delivered more than 100,000 net post-paid additions. On July 1st, we completed our acquisition of Claro Panama. We are encouraged by our initial steps in integrating the business, even though we will only combine our commercial activities early next year. Having said that, we are confident we can achieve our plan for the combined operations in the market. Finally, we further accelerated our buyback activity with $63 million of shares repurchased in the second quarter. This is our most active quarter yet, representing over 10% more purchases than in Q1. We were also pleased to release our 2021 ESG report in July. where we demonstrated significant progress in measuring and highlighting new goals with respect to our energy consumption, data privacy, and security efforts, and strengthening our commitment to positive change. Moving to slide five, we are focused on our Internet product as the lead component of our fixed consumer proposition, and here we show our broadband ads by market. Starting with cable and wireless in the upper left of the slide where, as anticipated, we returned to growth in the quarter. This was driven by Jamaica where we added 4,000 internet RGUs as we focused our sales effort and integrated new converged offerings with existing bundle propositions. Moving across to the center of the slide in Liberty, Puerto Rico. As you can see from the chart, we've delivered steady sequential growth here for a number of quarters and discontinued during Q2. furthest right on the top row to Costa Rica. This is a market where we have consistently delivered net ads. In the second quarter, we set a new record, adding 11,000 subscribers, more than 70% higher year over year, as we penetrated our expanding FTTH footprint and drove converged bundles. Moving to the lower left and CNW Panama, where we delivered a similar number of in-net ads as the prior year quarter. We now have fiber or HFC across over 90% of our network footprint in Panama, and we see a clear opportunity to increase penetration from the roughly 25% level we have today. Finally, VTR saw broadband losses of 18,000 in the second quarter of just over 1% of the subscriber base as we move to more normalized pricing following our time-limited Phoenix offers in March and April. Our commercial focus in Chile is to maintain our broadband market share, and we achieved that in this quarter. Overall, the group continued to deliver broadband ads with particularly robust results in Costa Rica and Puerto Rico. Turning to slide six and our mobile performance, we have highlighted postpaid ads as this is a driver of growth in recurring revenue, which is our focus. Postpaid ARPU is over three times prepaid ARPU. which is why we have focused on this growth, starting in the top left of Slide and CNW. We delivered another strong quarter of post-paid ads, nearly doubling the level of net ads in the prior year period and building nicely on a sequential basis. Jamaica drove the majority of Q2 performance with 9,000 ads, up more than 50% sequentially and over 100% year-over-year. Turning to Puerto Rico, as with CNW, we generated significantly more postpaid ads than the prior year quarter. Sequentially, we continue to benefit, although to a lesser extent, from a government initiative incentivizing mobile data access for teachers and students. Moving to the right of the slide in Costa Rica, our largest mobile operations in terms of subscribers. We added 30,000 postpaid subscribers in the second quarter and were confirmed as the number one mobile player in the market by the regulator in their latest report, which is a testament to our service levels and propositions in the market. On the bottom left of the slide, we present Panama's performance. We added 28,000 postpaid subscribers in the second quarter, sustaining our strong Q1 numbers and taking our postpaid ads in the last four quarters to 86,000. Post-paid subscription revenue continues to grow strongly and was up by nearly 40 percent as compared to the prior year period. Lastly, in Chile, our ads were driven by the competitive Phoenix plans we first launched in March. Overall, we were pleased to deliver post-paid subscriber growth across all our reporting segments and another quarter above 100,000 ads in aggregate. Next is slide seven and our B2B operations. Starting on the left of the slide, we delivered another strong quarter in B2B as our markets continue to recover from the impacts of COVID-19. Our revenue was 8% higher overall in Q2 with growth across B2B services and our networks and lifetime businesses within CNW. In B2B services, we grew our fixed internet and mobile subscription revenue and had a strong quarter for project awards, particularly in Panama. Networks and LATAM had another solid quarter with underlying growth and recurring revenue year over year. Above the chart, we have highlighted the gross revenue generated by our networks and LATAM operations. This is the sum of the reported totals in the bars for the respective periods, plus intercompany eliminations that are removed in our consolidated financials. You can see that total revenue increased by about $75 million in 2021 and $40 million in the first half of this year when looking at the networks and LATAM business through this lens. I want to take a moment here to also update you on our strategic review for the networks and LATAM business, which includes our subsea networks and B2B operations in markets where we don't have a consumer-facing product, such as Colombia. As discussed on previous calls, we believe that these assets are not accurately reflected in our public valuation. We can confirm that we tested the market and received strong indicative responses. This was the right track, but given recent market conditions, including the financial markets and macro uncertainty, we have decided to put things on hold for now. We are excited about this business And from our strategic review, we will continue to invest and grow this highly cash-generative, infrastructure-based business. On the right of the slide, we've outlined some of the key products and solutions that we offer to our B2B customers, ranging from connectivity solutions to security, collaboration, and IT infrastructure products. Finally, to slide eight, where we want to share some updates on our inorganic activities. We expect these transactions will drive significant stakeholder value through free cash flow growth, starting on the left of the slide with our closed deals, which include Panama as of 1st of July. In aggregate, these deals are expected to drive over $150 million of synergy value to the group, which will include a significant uplift to our FCF in the coming years. We are in the early stages in Panama, but we are excited about the potential for our combined business. As I mentioned before, we will be combining the commercial activities at the start of next year due to regulatory requirements. However, we have been free to combine the network and back office from the day we close. As with most acquisitions, there are dissynergies in the initial phase post-close, and Chris will pick up on the short-term financial impacts in his section. Once we are through this period, we anticipate significant upside with $70 million of free cash flow benefiting synergies across costs and CapEx. In Puerto Rico and Costa Rica, we continue to be on track with our plans. Both operations in Costa Rica were rebranded to the Liberty name in June this year, coinciding with the nation's qualifications for the FIFA 2022 Football World Cup, for which we have exclusive mobile streaming rights. Puerto Rico is benefiting from converged bundle offers, with all stores now selling both fixed and mobile products, and we have also begun to deliver FMC for our customers in Costa Rica. Finally, we passed a significant milestone in Puerto Rico with our new mobile core becoming operational. We'll continue to test the platform ahead of customer migration as we move into 2023. Moving to the right of the slide, we remain confident that we will complete our 50-50 joint venture with Claro Chile this year. Chile is an extremely competitive environment with multiple operators. However, we expect good long-term prospects for that market. This transaction should facilitate market repair in addition to generating significant synergy value in excess of $180 million. These synergies will help fund and grow the combined business. Overall, we believe that through our operational and inorganic progress, we are set to deliver meaningful adjusted free cash flow growth in the coming years. particularly as synergies are achieved. And it is hard to contemplate any M&A with better risk-adjusted returns than the current opportunity to repurchase our own securities. With that, I'll pass you over to Chris Noyes, our Chief Financial Officer. We'll talk you through our financial performance before we take your questions. Chris? Thanks, Balan.