Liberty Latin America Ltd.

Good morning and welcome to Liberty Latin America's third quarter 2025 investor call. At this time, all participants are in listen-only mode. Today's formal presentation materials can be found under the investor relations session of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instruction will be given for a question and answer session. As a reminder, this call is being recorded. 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 historic facts. Actual results might differ materially from those expressed or implied by these statements. For more information, Please refer to the risk factors discussed in Liberty Latin America's most recent file annual report on Form 10-K and quarterly report on Form 10-Q, along with the associated press release. Liberty Latin America disclaim any obligation to update any forward-looking statement or information to reflect any change in its expectation or in the condition 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 find in the appendices to the presentation, which is accessible under the investors session of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Jenny, and welcome everyone to Liberty Latin America's third quarter 2025 results presentation. I will be running through our group highlights and an overview of our operating results by credit silo before Chris Noyes, our CFO, reviews the company's financial performance. We'll then get straight to your questions. But before we get into the details, let me start by taking a moment to recognize the hardship of our employees, customers, partners, communities, governments who bore the brunt of Hurricane Melissa in the Caribbean, especially in Jamaica. Their resilience is nothing short of amazing. Our commitment to this region is strong, and we will help with the recovery through our humanitarian and infrastructure rebuild. I will cover this in more detail in my commentary on Liberty Caribbean. As always, I'm joined by my executive team from across our operations, 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. Our core business performed very well in Q3. We added over 100,000 postpaid net ads across the group. notably driven by Costa Rica and supported by fixed mobile convergence efforts and continuing prepaid to postpaid migration. This was the strongest quarter of postpaid additions across the group in three years. We reported $1.1 billion of revenue in Q3. This represented a return to year-over-year growth driven by better trends in B2B as we had anticipated. This in turn came about through a combination of better momentum on enterprise and government-related contracts, as well as the easing of tough year-over-year comps on B2B, which we faced in the first half of the year. Residential revenue grew year-over-year this quarter as we continue to focus on innovative customer value propositions across the markets. We posted adjusted EBITDA of $433 million, reflecting a rebase year-over-year growth of 7% in the third quarter. This included rebase growth across all of our segments, including Puerto Rico. This performance was driven by good execution and cost initiatives, as well as strong customer base management. We maintain our focus on lowering capital intensity. These efforts led to a 22% expansion in adjusted OEBIDA less P&E additions year over year, bringing us to a margin of 26%. Today, and despite some recovery through this year, we continue to believe our share price does not fully reflect the intrinsic value of our underlying businesses. We remain focused on delivering organic growth and cash flow generation, which we believe is critical for share price appreciation. Additionally, as previously discussed, we continue to look across our array of assets in the group and evaluate opportunities to close the embedded discount in our stock price. Turning to slide six. I'll begin our operating review with the cable and wireless credit silo, which had another very solid quarter. This silo includes Liberty Caribbean, CNW Panama, and our Liberty Networks segment, starting with Liberty Caribbean. We reported another strong quarter. On the left of the slide, we present our mobile KPIs. Post-paid mobile additions remained strong, with mobile output showing a healthy expansion on a year-over-year and sequential basis. Moving to the center of the slide to our fixed KPIs, the broadband subscriber base remained flat in Q3, with gains in Jamaica offset by declines mainly in Trinidad. Other highlights include the launch of 5G in Barbados, becoming the second market in our Liberty Caribbean segment to offer 5G alongside Cayman. Now, turning to Hurricane Melissa. Damage is significant in the rest of the country. while the major economic hub of Kingston in the more populated east has been much less impacted. The situation remains very dynamic and impacted by the speed of power restoration on the island. Our latest data suggests that we are very thankful that 100% of our staff is marked as safe. Secondly, mobile traffic on our network is back to 80% of pre-hurricane levels. In our fixed network, over 40% of our overall customers are online, while in the major metro areas, we are at over 80%. On the power side, over 50% of Jamaica's power service customers have power, and 14 out of 15 of our own and operated stores are open now and are supplemented by 17 stores on Reels, two of which are dedicated to just our B2B customers. Jamaica is a key part of Liberty Caribbean, a region we have operated in for over 150 years. We will be working tirelessly to repair and rebuild our infrastructure, leveraging the vast experience of the local and central teams, while continuing to bring in partners like PTI Under Towers, JPSM Powers, and others to quickly stand our services back up. During the hurricane's approach, we went live with a satellite partnership with Starlink Direct-to-Sell in Jamaica to offer emergency direct-to-sell connectivity for our mobile customers. This played a key role in helping customers stay connected in areas where the mobile network has been down, and we have seen more than 140,000 unique users successfully attached to this D2C technology. As recovery efforts continue, we are beginning to see customers returning to our mobile network. While it's too early to assess the full impact of the hurricane, we would remind investors that we maintain parametric insurance across the Caribbean. One of its advantages over traditional indemnity insurance is that it pays out quickly, which facilitates a more rapid repair and rebuild. Chris will provide more perspective on this in his section. Moving to slide seven in our CNW Panama segment. Starting on the left of the slide, we continue to deliver post-paid net ads as customers migrate from prepaid. While this is a deliberate strategy, we are also pleased to report a return to prepaid growth up to two consecutive quarters of decline driven by lower churn and a higher proportion of rejoining customers. Moving to the center of the slide, we delivered another solid quarter of internet subscriber additions. A more significant shift this quarter came from the B2B space. We had previously highlighted recent wins with government-related and in the enterprise space, and these deals are now beginning to flow through revenue. B2B revenue this quarter expanded 33% on a sequential basis and 14% on a year-over-year basis. Next, to slide eight. and our final segment within the CNW credit side, Liberty Networks. On the left of the slide, we present our Q3 year-over-year revenue evolution. Our strong performance in wholesale reflects the strength of our core operations and the growing demand for bandwidth across the region. Enterprise remains a key growth engine with continued momentum in IT as a service and connectivity solutions, particularly in Colombia and the Dominican Republic. These services are helping us build a strong base of monthly recurring revenue, which supports long-term stability and positions as well for the future. From an operational perspective, in August, Liberty Networks announced a major milestone with the launch of Maya 1.2, an enhanced system spanning 2,386 kilometers that doubles the capacity of the existing subsea cable Maya 1 and will continue to deliver critical capacity This strategic upgrade represents a long-term investment in regional infrastructure, strengthening international connectivity and digital resilience throughout the Caribbean and Central America. This investment will also clear the way for the installation of Manta, the new pan-regional subsea cable system. We remain on track and excited about monetizing this asset in the coming years. Turning to slide 10 and Liberty Costa Rica. starting on the left of the slide. The main driver of our top line continues to be postpaid mobile segment. Through the first nine months of the year, we have added almost 130,000 postpaid subscribers, representing a 13% expansion on the Q4 2024 base with a particularly strong Q3 performance. One of the drivers is our successful commercial strategy of migrating prepaid subscribers to postpaid and the good take-up in our Planes Libres offering. This is a lower-end postpaid plan, but it's nevertheless accretive. Prepaid to postpaid migration is supportive for ARPU and, in turn, helping to offset broader competitive tensions. Having now acquired the 5G spectrum we were awarded earlier this year, we look forward to further strengthening our mobile leadership in Costa Rica through the deployment of a standalone 5G mobile network in partnership with Ericsson. Moving to the center of the slide, on the broadband side, we continue to do a solid job maintaining our subscriber base, despite a competitive market. We continue to work on strengthening our commercial offering in the market. Early in Q3, we launched an offer for new and existing customers to have access to the most popular over-the-top platforms included in their home plans. This bold and meaningful value proposition, unique for the Costa Rican market, is anchored by a new brand claim. You want it, you got it. As we have highlighted in our 10Q, the regulator in Costa Rica, SUTEL, has issued a resolution prohibiting our proposed transaction with Millicom. This outcome was surprising given we have worked closely with the regulator over a number of months to design the appropriate remedies to address any competitive market concerns. We have filed an appeal and would expect a response shortly. In the event of appeal is denied, we intend to drive cost savings in our operation that we held off pending the combination with TIGO. We are starting to lay the foundation for that as we speak. Moving to slide 12, in our third credit silo, Liberty Puerto Rico. Starting on the left of the slide, Mobile performance showed greater stability with post-paid losses lower compared to Q2. Return tracking in the right direction. Commercial efforts in the third quarter focused on the launch of our new post-paid value proposition, Liberty Mix. Early results have been supportive. Momentum on gross ads have picked up modestly through Q3 with an improving port-in-port-out ratio. Perhaps more significant at this stage has been the support to gross ads output. with the higher tiering subscriber blend leading to a 40% increase in September versus the month prior to launch. On the fixed side, we continue to see some competitive pressure impacting our sub-base, though ARPU is sequentially stable and up on a year-over-year basis following price increases earlier this year. We launched a new commercial campaign on a fixed offer with a central theme of reliability with three distinct components. Firstly, Recognizing that many homes in Puerto Rico have generators, given the frequent power outages on the island, we launch a product that allows our fixed service to be up and running during these power outages by defaulting to the mobile network. We also offer new software in our devices that drives a stronger Wi-Fi experience in the home. Confident in the reliability of our network, we are also incorporating a 30-day network guarantee for customers. If we look out over the coming months, we will continue to ramp up commercial efforts on our fixed mobile conversions offer, Liberty Loop. Given FMC penetration across a number of markets in the LLA group, we know that Puerto Rico is a laggard at just 23%, of which only 10% are real FMC customers who have converged products and are receiving a financial or experience benefit from them. Our focus on FFC is increasing, and we expect this to be a good driver into 2026. With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Thanks, Val. I'll now take you through our Q3 financial results starting on slide 14. We posted revenue of $1.1 billion and adjusted EBITDA of $433 million, reflecting rebase growth of 1% for revenue and 7% for adjusted EBITDA year-over-year. All of our operating businesses reported year-over-year rebase growth on both revenue and adjusted EBITDA, with the exception of a decline in revenue at Liberty Puerto Rico. Sequentially, as compared to Q2, LLA's reported revenue increased 2% and adjusted EBITDA increased 4%, a solid uplift which sets momentum into Q4. Reflecting both lower capital intensity with P&E additions at 13% of revenue in Q3 and continued adjusted EBITDA expansion, LLA posted adjusted EBITDA less P&E additions of $284 million in Q3, a 22% improvement year-over-year. Although we were up year-over-year on adjusted EBITDA less P&E additions, Our reported adjusted FCF before partner distributions was $16 million in Q3, a decline year over year. Our cash flow performance in Q3 continues to be challenged on collections principally from our government customers, some of which we anticipate to receive in Q4. In addition, our prior year quarter benefited by approximately $90 million due to the positive impact of handset monetization during the quarter and the proceeds from the hurricane barrel weather derivative payout. As mentioned previously and consistent with prior years, we expect robust free cash flow performance in Q4, even with the impact from Hurricane Melissa, which should be mitigated in part by proceeds from our parametric insurance program. Slide 15 recaps our Q3 results for the CNW credit silo, which consists of Liberty Caribbean, CWP, and Liberty Networks. Starting with Liberty Caribbean, in Q3, we reported $369 million in revenue with 3% growth year-over-year on a rebase basis. This result reflects year-over-year rebase growth of 5% in residential fixed, while both residential mobile and B2B increased by 2%. Revenue performance was supported by continued growth in FMC, as evidenced by the postpaid additions over the last year, selected price increases across geographies and products, and a favorable comparison to the storm-impacted Q3 2024. Adjusted EBITDA came in at $173 million, representing 10% rebase growth year-over-year. Besides revenue contribution, a key driver of the strong Q3 rebase growth was lower operating costs. reflecting the continued impact of Liberty Caribbean's comprehensive efficiency and savings program and relatively flat direct costs on a higher revenue base. For Q3, Liberty Caribbean's adjusted OIVDA margin improved nearly 300 basis points year over year, reaching 47%. Building upon balance points relating to Hurricane Melissa, we are in the early stages of assessing the operational, financial, and economic impact of the storm. There are a number of dependencies, including the timing of the return of power to parts of Jamaica, which will influence our ability to provide service to customers. We anticipate adverse impacts to RGU's revenue in Q4. As a point of reference, Jamaica generated about $108 million of revenue in Q3, which is less than 10% of LLA revenue. Next, moving to Cable Wireless Panama. CWP delivered $199 million of revenue and $72 million of adjusted EBITDA with year-over-year rebates growth of 6% and 4% respectively. The top line increase was driven by 14% higher B2B revenue year-over-year, which reflects the solid pipeline we had at Q2, and we continue to see good B2B momentum into year end. Adjusted EBITDA growth reflected the lower margin B2B project revenue, while we also realized improvement in network and labor costs over last year's Q3. Turning to Liberty Networks, we generated $117 million in revenue and $65 million in adjusted EBITDA with a year-over-year rebase increase of 6% and 10% respectively. The rebase growth rates are our strongest in about two years. Each of our two business segments experienced solid year-over-year revenue growth with 5% rebates for wholesale driven by subsea capacity revenue and 6% rebates for enterprise, reflecting continued growth in managed services and higher B2B connectivity. Our adjusted OIBADA growth reflects the positive impact of the revenue increase as well as lower bad debt year over year. Aggregating all three operating segments within the C&W credit silo, we generated $662 million in revenue reflecting a year-over-year rebase increase of 4% and $309 million in adjusted EBITDA resulting in 8% year-over-year rebase growth. Moving to slide 16 and the Q3 results for our two credit silos, Liberty Puerto Rico and Liberty Costa Rica. On the left, Liberty Puerto Rico. Q3 revenue was $298 million with a 5% year-over-year rebase decline The primary drivers of this decline are a 7% rebase decrease in mobile residential revenue and a 16% decrease in B2B, both of which primarily relate to subscriber losses stemming from the mobile network migration completed last year. Adjusted EBITDA of $96 million in Q3 reflects 7% rebase growth. Mitigating the revenue decline over the last year, a key factor behind the year-over-year adjusted EBITDA growth this quarter is a comprehensive cost reduction plan the business has undertaken in order to right-size and streamline its operations given the lower revenue and subscriber base. Additionally, the business also benefited from lower bad debt expense year-over-year. Concluding with Costa Rica on the right, we delivered Q3 revenue of $155 million and adjusted EBITDA of $56 million, representing a 3% rebase revenue growth and 7% rebase adjusted EBITDA growth year-over-year. Performance was driven by our residential mobile business, which grew 7% on a rebase basis year over year and was fueled by higher postpaid volumes and strong equipment sales. In addition, the operating team has been focused on controlling costs, which supported margins this quarter, and is in the process of working through a more comprehensive plan for 2026. Next to slide 17 in our Q3 balance sheet metrics for LOA. We had $8.4 billion of total debt, $600 million of cash, and $900 million of borrowing capacity at September 30, of which our Puerto Rican group accounted for $2.9 billion of debt, around $120 million of cash, and roughly $170 million of borrowing capacity. On a LLA consolidated basis, we posted net leverage of 4.6 times, a slight improvement from Q2, helped by the higher adjusted EBITDA in Q3 from across our operations. If we exclude Puerto Rico from the leverage calculation, our net leverage would fall about a turn to the mid threes. With respect to Puerto Rico, there are two balance sheet developments to highlight. One, the Puerto Rican business successfully raised a $250 million secured financing of which $200 million was borrowed during Q3 via in unrestricted subsidiary approach. This provided the business with near-term liquidity to continue investing in operations, and more than half of the proceeds were used to repay a significant portion of its fully drawn RCF. Second, as highlighted in early August, the liability management process is underway, and the business is actively engaging with its various stakeholders. As you can appreciate, given the ongoing discussions with stakeholders in the business, We are not in a position to provide further updates at this stage as regards both the expected outcome and the timing thereof. Turning to how we protect our assets from NACCAT events, we use a robust parametric program across our CMW and LPR credit silos. Our weather derivative was triggered and should help us mitigate losses from property damage, business interruption, and other impacts from Hurricane Melissa. We expect to receive $81 million in third party proceeds before year end. Moving to slide 18 and to wrap up our prepared remarks. As a recap, Q3 was a very good quarter at the operating level with top line expansion and improved adjusted . No doubt it will take time to recover from Hurricane Melissa in Jamaica, but I do know our employees are resilient and up to the task. We remain focused on getting key communications up for our customers and are encouraged by the quick progression and lighting up service since the event. As I highlighted on the last slide, the payout from our parametric program will be invaluable to our Jamaican recovery and should go a ways to mitigating the overall financial impact. As we look to finish the year, several important points to reiterate. Our commercial plans remain robust on both B2B and residential, and we will be focused on the seasonally strong holiday selling season across many of our markets. Two, our cost reduction and efficiency programs across LLA continue to deliver, which will support and underpin our adjusted EBITDA and cash flow as we move into 2026. And three, cash flow is expected to be strong in Q4, and we continue to work hard across all of our businesses to deliver on that objective. And finally, we at LLA remain focused on improving value for our shareholders as we fundamentally believe the share price doesn't reflect the value of our businesses. We are focused on organically growing the business, pursuing strategic initiatives, and optimizing capital allocation. These three components will be helpful in unlocking incremental shareholder value. With that operator, please open it up for questions.