NASDAQ:LILA Liberty Latin America Q2 2025 Earnings Report $7.79 -0.04 (-0.51%) Closing price 04:00 PM EasternExtended Trading$7.80 +0.00 (+0.06%) As of 04:10 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. ProfileEarnings HistoryForecast Liberty Latin America EPS ResultsActual EPS-$2.12Consensus EPS $0.01Beat/MissMissed by -$2.13One Year Ago EPSN/ALiberty Latin America Revenue ResultsActual Revenue$1.09 billionExpected Revenue$1.10 billionBeat/MissMissed by -$15.44 millionYoY Revenue GrowthN/ALiberty Latin America Announcement DetailsQuarterQ2 2025Date8/7/2025TimeBefore Market OpensConference Call DateThursday, August 7, 2025Conference Call Time8:30AM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Liberty Latin America Q2 2025 Earnings Call TranscriptProvided by QuartrAugust 7, 2025 ShareLink copied to clipboard.Key Takeaways Positive Sentiment: Separation of Liberty Puerto Rico announced with a targeted completion in H1 2026 to unlock intrinsic value and support potential share buybacks or dividends. Positive Sentiment: First-half 2025 results delivered 8% rebased adjusted OIBDA growth and a 23% increase in adjusted OIBDA less P&E, lifting group margin to 25%. Positive Sentiment: Group added 70,000 high-speed broadband and postpaid mobile subscribers in H1 2025 (over 100,000 excluding Puerto Rico), driven by Costa Rica, Panama, and Jamaica. Negative Sentiment: Liberty Puerto Rico recorded a spectrum impairment and maintains unsustainable leverage at 7.9x, prompting a liability management exercise to improve its capital structure. Neutral Sentiment: Project-related B2B revenue was phased unfavourably in H1 but is expected to accelerate in H2 due to improved delivery visibility on government contracts. AI Generated. May Contain Errors.Conference Call Audio Live Call not available Earnings Conference CallLiberty Latin America Q2 202500:00 / 00:00Speed:1x1.25x1.5x2xThere are 8 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. Operator00:00:05I'll now turn the call over to Sumit Dahta, VP of Investor Relations for Liberty Latin America. Speaker 100:00:14Good morning, and welcome to Liberty Latin America's Second Quarter twenty twenty five Investor Call. At this time, all participants are in listen only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded. Speaker 100:00:42Today'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 Liberty Latin America's most recently filed annual report on Form 10 ks and quarterly report on Form 10 Q 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. Speaker 100:01:40I would now like to turn the call over to our CEO, Mr. Balan Nair. Speaker 200:01:44Thank you, Sumit, and welcome, everybody, to Liberty Latin America's second quarter and first half twenty twenty five results presentation. I'll begin with our group highlights and an overview of our operating results by credit silo. Chris Noyes, our CFO, will then follow with a review of the company's financial performance. After that, we will get straight to your questions. As always, I'm joined by my talented executive team from across our operations, and I will invite them to contribute as needed during the Q and A following our prepared remarks. Speaker 200:02:21As 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. Today, we believe our share price does not fully reflect the intrinsic value of our underlying business. To unlock this value for our shareholders, we plan to proceed with the separation of Liberty Puerto Rico from LLA. It is essential that Liberty Puerto Rico is positioned with a strong and sustainable capital structure post separation. Speaker 200:02:57To that end, we are actively working towards this goal through a targeted liability management exercise. Chris will provide more details on this in his section. We also continued to grow our high speed broadband and postpaid mobile base in the first half, adding 70,000 subscribers in total across the group. This was over 100,000 additions excluding Puerto Rico with the main contributor being Costa Rica, Panama and Jamaica. We reported GBP 2,200,000,000.0 of revenue in the 2025. Speaker 200:03:37In the same period, residential revenue was up 2% in Liberty Caribbean and Costa Rica and 8% in C and W Panama year over year on a rebased basis. We expect these businesses to continue their momentum in the second half, following the launch of new customer value propositions, which should resonate well in our markets. In addition, and after less favorable phasing through H1, we anticipate better momentum on B2B revenue in the second half across a number of regions. We posted adjusted OIBDA of $822,000,000 reflecting a rebased year over year growth rate of 8% in the first half. This includes double digit rebased growth in Liberty Caribbean, Panama and Puerto Rico. Speaker 200:04:27We maintain our focus on lowering capital intensity. These efforts led to a 23% expansion in adjusted OIBDA less P and E additions year over year, bringing us to a margin of 25% of revenue in the first half of the group and 29% excluding Puerto Rico. These are strong numbers, reflecting the focus of management on profitable growth, which is expected to drive strong cash conversion in the second half. Turning to Slide six. I'll begin our operating review with our Cable and Wireless credit silo, which had another very solid quarter. Speaker 200:05:08This silo includes Liberty Caribbean, C and W Panama and our Liberty Networks segment. Starting with our Caribbean operations, now named Liberty Caribbean. We've rebranded this segment in the second quarter with a refreshed identity and signaling a renewed focus on driving digital transformation, particularly in the B2B space. On the left of the slide, we present our mobile KPIs. Postpaid mobile ads remained strong, led by another solid quarter in Jamaica that represents 20 consecutive quarters of subscriber growth. Speaker 200:05:44Mobile ARPU reported growth both sequentially and year over year, supported by prepaid price increases implemented earlier this year and in the first half of last year. This resulted in 6% mobile rebased revenue growth in Q2 year over year. Moving to the center of the slide to our fixed KPIs. Broadband subscriber growth was flat in Q2 with gains in Jamaica offset by declines mainly in Trinidad. Trinidad is the only Caribbean market we operate in where there are three national fixed players and where we lack a mobile offering. Speaker 200:06:21Fixed ARPU per customer relationship increased both on a sequential and year over year basis, reflecting the benefit of pricing changes. Lastly, for Liberty Caribbean, besides our corporate rebranding, we launched a new residential campaign titled, Let Your Rhythm Flow. This initiative strengthens our convergence strategy with a particular emphasis on accelerating postpaid mobile adoption. The redesigned platform introduced a striking new visual identity that is both distinctive and deeply rooted in local cultures, traditions and values, enabling us to build a stronger emotional connection with our customers. Moving to Slide seven and our C And W Panama segment. Speaker 200:07:10Starting on the left of the slide, we delivered another quarter of strong postpaid ads, which supported robust mobile rebased revenue growth of 6% year over year. This performance continues to reflect the positive subscriber momentum we built following a competitor's exit from the market last year. Mobile ARPU remained stable both sequentially and year over year, impacted by lower prepaid recharges during the quarter, largely due to nationwide protests, which have since subsided. Moving to the center of the slide, we delivered a solid quarter of Internet subscriber adds. This growth reflects the effectiveness of our broadband strategy and continued demand for high speed connectivity. Speaker 200:07:56On the other hand, fixed ARPU declined both sequentially and year over year. This was primarily driven by retention discounts and lower acquisition ARPU as we responded to offers from competitors. Our go to market strategy remains focused on delivering consistent results across our high speed networks. This commitment was recently recognized by NPERF, which named as the best performing fixed network in the country. In the b to b space, I'm pleased to highlight, among other recent wins, a major milestone. Speaker 200:08:31We were awarded a contract with the Ministry of Education of Panama, Maduka, to provide high speed Internet to all public schools nationwide. This marks a significant step forward in advancing digital and educational inclusion across the country. Overall, we are building a strong platform in Panama. After a tough comparison in the first half, we are well positioned to carry better momentum into the second half of the year. Next, Slide eight and our final segment within the C and W credit silo, Liberty Networks. Speaker 200:09:11On the left of the slide, we present our first half year over year revenue evolution. While revenue declined year over year due to the acceleration of noncash IRU revenue in the 2024, our Subsea business continues to demonstrate resilience. Excluding IRUs, the underlying wholesale revenue grew 8% on a rebased basis year over year, driven by new lease capacity sales. This 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 The Dominican Republic and El Salvador. Speaker 200:09:58These services are helping us build a strong base of monthly recurring revenue, which supports long term stability and positions us well for the future. On the right of the slide, we highlight the core strength of our subsea and terrestrial infrastructure, which underpin the competitive edge of Liberty Networks. Our unique mesh network connecting over 30 countries with 50,000 kilometers of cable form the backbone of a diversified revenue portfolio, predominantly denominated in U. S. Dollars. Speaker 200:10:32Despite elevated capital expenditures associated with Project Manta, our new subsea cable system in partnership with Sparkle and Gold Data, we continue to deliver robust adjusted OIBDA less P and E additions of over 35% of revenue, reflecting the low capital intensity of the business and its ability to generate strong cash returns. Looking ahead, our focus remains on the successful execution of Project Monitor. On track for completion in 2027, the initiative is expected to establish a solid foundation of monthly recurring revenue, enhancing long term profitability and positioning Liberty Networks as the region's primary data hub. Turning to Slide 10 and Liberty Costa Rica. Starting on the left of the slide. Speaker 200:11:25Mobile continues to perform strongly with growth concentrated in the high value postpaid segment, reinforcing our leadership in the market and driving 5% rebased revenue growth year over year. According to the latest regulator report, we remain the number one mobile operator overall in Costa Rica throughout 2024. In postpaid specifically, we gained two percentage points in market share year over year. Mobile ARPU was flat sequentially but grew year over year supported by postpaid price increases and a higher proportion of postpaid subscribers. Moving to the center of the slide, we delivered modest broadband net adds and fixed ARPU declined both sequentially and year over year. Speaker 200:12:16As referenced in previous calls, the competitive backdrop in Costa Rica's fixed market remained challenging. To defend our fixed position and differentiate our offering, we have also revamped our video proposition. Since July 15, new and existing customers have access to the most popular over the top platforms included in their home plan. This bold and meaningful value proposition, unique for the Costa Rican market, is anchored by a new brand play. You want it, you got it. Speaker 200:12:49It's a promise that brings us closer to our customers, showing that we listen, we care and we deliver. Moving to Slide 12 and our third credit silo, Liberty Puerto Rico. Starting on the left of the slide, mobile performance showed signs of improvement. Postpaid losses were lower compared to Q1 with a better run rate in May and June, and mobile ARPU increased sequentially, resulting in relatively flat sequential mobile subscription revenue. We continue to be focused on the mobile segment, and I'm pleased to report that in June, we successfully expanded our network through the integration of low band 600 megahertz spectrum alongside AWS three and AWS four bands. Speaker 200:13:39This strategic enhancement marks a significant step forward in service quality, capacity, and coverage. This combination of spectrum bands is instrumental in meeting the surging demand for mobile data, ensuring we remain well positioned to support future growth. As a reminder, we were honored with both the best in class and the most reliable network awards from GWS earlier this year, further validating the strength and consistency of our network performance. Moving to the fixed sites in the center of the slide, following the price increase implemented earlier this year, we reported 7,000 in net subscriber net losses, but fixed ARPU increased both sequentially and year over year. Fixed revenue was slightly negative year over year as ARPU growth was more than offset by a lower subscriber base impacted by the discontinuation of the ACP program in Q2 twenty twenty four. Speaker 200:14:41We are now close to 20% fiber to the home and have invested to upgrade our HFC network to DOCSIS 3.1. This enhancement has significantly boosted performance and enabled us to win the fastest fixed network award from Ookla, achieving the highest speed scores and Wi Fi performance on the island. Slide 13 provides a deeper look into postpaid net adds, the evolution of mobile NPS, the launch of our new postpaid CVP, Liberty Mix and other initiatives. On the left of the slide, we break down postpaid activity into gross adds and disconnections. Gross adds over the past two quarters have remained consistent with pre migration levels, underscoring the resilience and appeal of our product offering. Speaker 200:15:33Postpaid churn continues to improve, marking the fourth consecutive quarter of positive momentum. Moving to the center of the slide, we show NPS progression, a key leading indicator of customer satisfaction and brand perception. Compared to one year ago, we've made significant strides in rebuilding customer trust with NPS showing strong recovery. While our mobile NPS have returned to positive territory, it remains below pre migration levels, indicating further room for improvement. On the top right of the slide, we wanted to share more detail on Liberty Mix. Speaker 200:16:12In July, we launched our new postpaid customer value proposition, Liberty Mix. This innovative mobile plan offers three tiers, enabling customers to tailor each line to the specific needs of individual family or group members within a multiline bundle. Liberty Mix marks the first step in our brand relaunch strategy, and we anticipate it will drive gross adds in the second half of the year. On the bottom right of the slide, now that we have strengthened our network, IT systems and internal processes, we are applying the same playbook used across the Liberty Latin America Group, where FMC has proven very successful with over 30% penetration in a number of markets to lean into convergence in Puerto Rico. Our combination of best in class fixed and wireless infrastructure should allow us to differentiate in a competitive marketplace. Speaker 200:17:07Being part of the wider group, Liberty Puerto Rico benefited from shared platforms and expertise. We've been developing solutions that use AI to improve our operations across our entire value chain, strong focus on commercial activities and top line growth. Specifically in Puerto Rico, we have been focusing on billing quality assurance and churn prediction. Moreover, we have made a significant number of changes to the management team, including leveraging experience and expertise from across the LLA footprint. Lastly, we continue to reshape the company's cost base to reflect the smaller scale of the business, conducting a disciplined review of each cost line. Speaker 200:17:49We expect additional measures will deliver greater margin impact in the second half of the year. Finally, on Slide 14, we summarize our strategic vision and outline the key drivers that sets us up for growth in H2. Firstly, the residential space where we are well positioned. We operate in countries with healthy market structures across both fixed and mobile services, and we pursue consolidation opportunities to deliver value to customers and markets. For example, last year, we agreed to acquire TIGO's business in Costa Rica, which has brought growth in that market. Speaker 200:18:29We are working with regulators to approve that transaction and now expect this to close in early twenty twenty six. Our focus on fixed mobile convergence continues to pay off with penetration rates exceeding 30% in several markets, supported by our robust fixed and mobile infrastructure. We have also introduced several new customer value propositions in recent weeks, reinforcing our commercial momentum heading into the second half. Our second area of focus is B2B, which accounts for nearly one third of group revenue. While we face year over year B2G revenue headwinds through Q2 and first half, particularly in Panama, we expect improved performance in the second half across several geographies to drive improving revenue momentum. Speaker 200:19:17Governments are investing in digitization, security, and cloud computing, and we are the right trusted partner for them. Along those lines, ICT continues to be a source of future growth opportunity as we develop more encompassing cloud and cybersecurity solutions focused on mission critical operations for our customers. We partnered with the hyperscalers to deliver computational and AI models for our customers. The MANTA build, which progressed steadily through the first half, is expected to contribute meaningfully to Liberty Networks revenue and adjusted OIBDA over the medium term. Lastly, cost. Speaker 200:19:57We have delivered strong margin progression in recent quarters, especially within our C and W silo. Across the group, we continue to see upside as we focus on higher margin residential products. Our initiatives around copper migration, digitization and AI adoption have significantly enhanced workforce efficiency leading to meaningful labor cost reductions. Additionally, we anticipate healthy synergies following the expected completion of the TIGO merger in Costa Rica. 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. Speaker 200:20:39Chris? Speaker 300:20:40Thanks, Pauline. Let me now take you through our financial performance in greater detail, starting on Slide 16. Q2 twenty twenty five revenue was 3% lower on a rebased basis totaling 1,100,000,000 This decline was primarily driven by the phasing of project related B2B revenues across several geographies. Importantly, we have good visibility into stronger delivery in the second half of the year. However, residential revenue grew 1% year over year on a rebased basis, reflecting the strength of our core consumer business. Speaker 300:21:19Turning to adjusted OIBDA, we reported a rebased increase of 7% to $415,000,000 building on the solid 8% growth in Q1. Among our segments, only Liberty Networks saw a year over year decline in adjusted OIBDA largely due to the timing of non cash IRU accelerations, Speaker 200:21:40which Speaker 300:21:40have now largely normalized. Supporting this growth is operating leverage as we continue to execute on a range of cost out initiatives across our operations. These efforts have contributed to an improvement in our consolidated adjusted OIBDA margin, which expanded by three forty basis points year over year. Moving to the last section, we highlight an important metric for us, which is adjusted OIBDA less P and E additions. This increased by 26% to $265,000,000 in Q2, representing 24% of revenue compared to nineteen percent last year. Speaker 300:22:18The year over year improvement is reflective of the higher adjusted OIBDA margin and lower capital intensity with P and E additions amounting to 14% of revenue in the quarter. Although we were up year over year on adjusted OIBDA less P and E additions, our reported adjusted FCF before partner distributions was negative $41,000,000 in Q2 as compared to negative $7,000,000 in the prior year, a decline of $34,000,000 This was attributable to working capital swings including timing on key collections from our government customers. As in previous years, we anticipate a robust second half in cash flow generation principally in the fourth quarter. Slide 17 recaps our Q2 results for the C and W credit silo, which consists of Liberty Caribbean, CWP and Liberty Networks. Starting with Liberty Caribbean. Speaker 300:23:15In Q2, we reported three sixty six million dollars in revenue with flat rebased growth year over year. This result reflects 6% growth in residential mobile offset by a rebased decline of 31% year over year in B2B and residential fixed respectively. The strength in mobile was driven by higher prepaid ARPU helped in part by selected price increases and a larger postpaid subscriber base supported by our successful FMC and prepaid to postpaid migration strategy. Fixed residential revenue declined driven by lower volumes mainly due to the impact of Hurricane Peril in Q3 twenty twenty four and lower non subscription revenue. B2B was impacted by lower project revenue, particularly in Bahamas. Speaker 300:24:04Adjusted OIBDA came in at $174,000,000 representing 11% rebased growth year over year, fueled by optimization initiatives across our island geographies and our operating cost categories, including our network and commercial expense. Our efforts have translated into an adjusted OIBDA margin improvement of nearly 500 basis points year over year reaching 47%. Next moving to Cable and Wireless Panama. CWP generated $177,000,000 of revenue and $69,000,000 of adjusted OIBDA with a 10% rebased revenue decline and 6% rebased adjusted OIBDA growth year over year. The rebased top line decline was driven by 30% lower B2B revenue, partly offset by increases of 62% in residential mobile and residential fixed respectively. Speaker 300:25:01The year over year decline in B2B revenue reflects an exceptionally strong prior year comparison driven by high volume of government project wins in Q2 twenty twenty four. We expect to catch up in the second half of the year supported by a solid pipeline. The healthy mobile revenue uplift was supported by postpaid subscriber growth and higher handset sales, though prepaid was partially impacted by nationwide protests during the quarter. The residential fixed revenue rebased growth was mainly driven by broadband RGU additions. Year over year adjusted OIBDA performance was driven by improved gross margin helped in part by lower B2B project related revenue and a reduction in operating expenses year over year. Speaker 300:25:47As a result, factors led to an adjusted OIBDA margin expansion of almost 600 basis points to 39%. Turning to Liberty Networks, which delivered $150,000,000 in revenue and $61,000,000 in adjusted OIBDA, resulting in a rebased decline of 3% in both metrics. Specifically, wholesale revenue fell by 3% on a rebased basis due to an $8,000,000 reduction in non cash IRU revenue amortization as compared to the prior year. Enterprise revenue declined by 1% on a rebased basis mainly due to lower project related revenue, which more than offset gains in IT as a service and connectivity. Adjusted OIBDA was mainly impacted by the aforementioned decrease in IRU revenue. Speaker 300:26:35Aggregating all three operating segments within the C and W credit silo, we generated $636,000,000 in revenue reflecting a 3% rebased decline and $3.00 $3,000,000 in adjusted OIBDA, resulting in 7% rebased growth. Moving to Slide 18 and the Q2 results for our other two credit silos, Liberty Puerto Rico and Liberty Costa Rica. On the left, Puerto Rico. Revenue was $3.00 $1,000,000 representing a 5% year over year rebased decline. Residential fixed revenue declined 1% primarily due to lower volumes following the discontinuation of the ACP program, partially offset by higher broadband and video ARPU driven by price increases implemented earlier this year. Speaker 300:27:25Mobile residential revenue declined by 3% on a rebased basis driven by lower postpaid subscriber base post migration. This was partially mitigated by higher non subscription revenue while prepaid revenue remained broadly flat. B2B revenue declined 18% on a rebased basis mainly due to lower mobile service revenue resulting from a reduced subscriber base and ARPU decline. Adjusted OIBDA increased by 21% year over year on a rebased basis, reaching $87,000,000 The improvement was primarily driven by lower bad debt expense, the phase out of integration and TSA costs and reduced labor costs. P and E additions were $38,000,000 representing 12% of revenue, a three forty basis point decrease over prior year levels as the business actively managed its capital intensity. Speaker 300:28:20Concluding with Costa Rica on the right, we delivered Q2 revenue of $151,000,000 and adjusted OIBDA of $54,000,000 reflecting a 1% rebased revenue growth and flat rebased adjusted OIBDA growth year over year. Mobile residential revenue grew 5% on a rebased basis supported by higher postpaid volumes from our prepaid to postpaid migration strategy and strong equipment sales. Fixed revenue was down 3% year over year on a rebased basis driven by lower ARPU primarily due to our buy to own CPE model which is in turn increasing non subscription revenue. B2B revenue was down 5% year over year on a rebased basis mainly due to lower service rep. Adjusted OIBDA remained flat as revenue gains were offset by higher equipment costs and increased bad debt. Speaker 300:29:14Next to Slide 19 and our balance sheet metrics by credit silo and in aggregate for LOA as of June 30. The C and W silo accounts for approximately $5,000,000,000 of LOA's total debt of $8,200,000,000 and has covenant leverage of 3.9 times. Given the refinancings we have completed over the last nine or so months, we have linked in the silos average life to about six years. Turning to Costa Rica, we have about $500,000,000 of debt and the business has covenant leverage of 2.1 times with the debt stack due in 02/1931. Importantly, we would expect to be in position post closing the TIGO acquisition in 2026 to refinance our debt to more attractive levels given the low leverage and underlying strong performance of the business. Speaker 300:30:03And finally, Liberty Puerto Rico has $2,800,000,000 of debt, covenant leverage at 7.9 times and debt maturities largely between 2027 to 2029. We'll discuss our approach with the near dated stack on the next slide. At the consolidated level, we have no debt at the holding company and thus in aggregating our three credit silos, $8,200,000,000 of debt reflects consolidated net leverage of 4.7 times. Moving to Slide 20. Today, we wanted to highlight two key strategic initiatives that we have recently embarked upon at LLA and its operating businesses. Speaker 300:30:41Liability management at LPR and a concerted effort at LLA to unlock the underlying value of our operating assets. First, turning to the left side of the slide and building upon the balance sheet discussion from the prior slide and the commentary that we have shared over the last year. Our local operating team and LLA more broadly have been highly focused on stabilizing LPR and improving all aspects of the underlying business. As Valen noted today, we are seeing green shoots of a recovery. With that being said, it is our view that the capital structure at LPR is unsustainable both in terms of quantum of leverage and expected carry cost. Speaker 300:31:24Hence, with still more than two years until our earliest bond maturity, we believe it is the appropriate time to look to improve and right size the capital structure. This should set LPR up for long term success. Importantly, LPR has covenant flexibility in its credit documents, which will enable LPR to utilize its assets to raise incremental capital to the extent needed to fulfill near term liquidity gaps. For our team on the ground, it remains business as usual with the utmost focus on our employees, customers and vendors and ultimately growing the business. There is no specific timeline for resolving the capital structure. Speaker 300:32:07We'll look to communicate updates as necessary. Finally, LPR has appointed Moelis and Robson Gray to lead the execution of the liability management exercise. Moving to the right side of the slide, having previously reiterated the silo principle of the Liberty Latin America Group and in order to better highlight and unlock the respective value in our assets, We are announcing our intention to separate Puerto Rico from the rest of the LLA group. This will enhance our ability to better position each of the respective businesses and their positive attributes, including market position, growth opportunity and potential cash generation. The separation can be affected in several ways including a potential spin off of LPR and we are targeting to complete into the first half twenty twenty six. Speaker 300:32:59Importantly, the separation is not dependent on completing the liability management exercise. In terms of the relative size of the two groups of assets and using 2024 full year results as a proxy, revenue and adjusted OIBDA for LLA excluding Puerto Rico would have been approximately $3,200,000,000 and $1,300,000,000 respectively. After deducting the reported segment results of Puerto Rico, which reported $1,300,000,000 of revenue and $3.00 $8,000,000 of adjusted OIBDA. On the same basis and excluding Liberty Puerto Rico, LLA's adjusted FCF before distributions would have been nearly $200,000,000 or almost 70% higher than what was reported as a consolidated group in 2024. This is not necessarily reflective of the separate results, but a good indication. Speaker 300:33:52We obviously expect FCF to expand from here given the underlying operational strength of the business as we have demonstrated through H1. Additionally, the remaining LLA business would be levered roughly one turn lower from where it is today. Post separation, LLA expects to have the ability to enhance its capital return strategy, including the potential for not only share repurchases but recurring dividends, capitalizing on the FCF generation of the LLA assets, excluding Liberty Puerto Rico. Citi and Linetree are working with LLA on asset separation as well as other corporate options to help to unlock equity value at LLA and remove the embedded valuation discount that we believe has been apparent in our equity trading price. Moving to Slide 21 and our conclusions. Speaker 300:34:45In the first half, we delivered solid results. Adjusted OIBDA grew at a high single digit rate with particularly strong growth in the C and W side. We also saw a year over year decline in P and E additions. This is a reflection of our disciplined capital intensity management and improved operational efficiency. Looking ahead to the second half, we are optimistic. Speaker 300:35:06We have launched new customer value propositions aimed at sustaining residential momentum. On the B2B side, we have a good pipeline that should support stronger revenue performance. In addition to these top line drivers, we have substantial cost out initiatives in flight across each of our businesses and corporate and expect more favorable working capital trends in H2, all of which should set the stage for improved free cash flow performance as we close the year. Our operating prospects combined with the actions that we just discussed in both the liability management and separation of Puerto Rico, we believe set the stage for value creation for LOA shareholders. We look forward to updating investors over the next quarters as our projects advance and both the operating and corporate teams of LLA are hard at work to deliver continued growth, margin improvement and cash flow generation. Speaker 300:36:01With that operator, happy to take questions. Operator00:36:39The first question comes from Vito Altamita Your line is now open. Please go ahead. Speaker 400:36:48Good morning all and thanks for taking our questions. We have two from our side. They're actually on Panama. The first one is if you could give a bit more color on the B2B headwinds that you saw there. If those are related to private or government projects and if there have been any further collections issues on this B2B front? Speaker 400:37:07And the second question would also be on Panama, but on the margin side, margins improved a lot there. And to a point that EBITDA rose year on year despite the revenue headwinds, could you give more color on the OpEx reductions or efficiencies that allowed for that aside from revenue mix effects naturally? Thank you. Speaker 200:37:30Thanks. Good morning. Thanks for the question and I'll ask Rocio to join in here in a second as well. The B2B headwinds primarily won comparison to a very, very strong second quarter in 2024. But in addition to that, we did deliver a number of projects to the government in the second quarter this this year that due to a lot of the bureaucracy and signatures required, we did not recognize recognize that revenue, and so you'll start seeing that drop in the in the third quarter. Speaker 200:38:04And but for the most part, it's all b two g. It's business to government, and we who is one of our largest customers as well. So that's kinda a little bit of the headwind there. On the margin expansion, I mean, it's actually quite a quite a strong story. You'll see the real margin expansion at the operating free cash flow level. Speaker 200:38:27And the and and the way we've done that is through both efficiencies at the OpEx level and efficiencies at the CapEx level. I mean, the we we we see a significant I think from the last time, it's like almost six, seven points. And and and we think there's still plenty of room to grow as you look at some of our other operating units as well. So we are quite bullish around the margin expansion in Panama. The cash the revenue trajectory will change in the third quarter as the phasing issues of b two b. Speaker 200:39:00But I would like to highlight our mobile business that's been growing, revenue has been growing, and our fixed business grew as well. And the fixed business, you know, has, I think, even more opportunity for us because we do have the smaller market share in that market with a better network, the fiber to the home network. So with that, Rocea, would you like to add some color? Speaker 500:39:25Sure. Absolutely. So on the revenue side, for B2B, the headwinds that we were experiencing this quarter, I would say our B2B business is a tale of two cities. So one, the recurring business and the other side, the nonrecurring business, which is mostly government revenue. So on the recurring business, we are experiencing quite a strong quarter, in fact. Speaker 500:39:52Just to give you a bit of comfort, we are seeing our customer base in both in mobile and fixed services growing, middle to high single digits. So we're seeing the the recurring business progressing, continuing to progress very well with momentum. On the non recurring business, which is this type of big projects, in this case, 100% government projects. Of course, it's basically depending on the phasing. So you have one big project like we won this quarter of the Metuka project, right, that was, like, $40,000,000. Speaker 500:40:30However, until you are able to see it on your p and l, it takes time. And those, this lumpiness of the nonrecurring business is basically what you are seeing right now. And as, balance and Chris stated, it's something that we're hoping to see with a very different momentum on the second half of of the year. So so that's your your point on on revenue. On the increased profitability, I think it's basically two main levers. Speaker 500:41:01At the gross margin level, it's basically the tailwinds from our well performing recurring business, the residential business and the recurring part of the b to b business. And then at the OpEx level, we have done significant work over the last quarters in terms of streamlining our labor and our non labor OpEx, and you're starting to see the fruits of that work. So glad you noticed. Thank you. Speaker 400:41:34Thanks, Roscio. Thank you very much. Operator00:41:42The next question comes from Chris Hall of New Street Research. Chris, your line is now open. Please go ahead. Speaker 600:41:51Yes. Thank you. I just had a couple of questions on the plans around spinning out Puerto Rico. Obviously, you've mentioned that you want to use selected assets. I just wondered if you could clarify which assets in particular. Speaker 600:42:07I mean the key ones from my perspective would seem to be spectrum and the broadband network. But is there anything else that you think is material enough to be able to utilize? Speaker 200:42:20Well, you kind of highlighted a lot in the assets that we have. But we're really not commenting too much around, you know, how and we're gonna approach that liability management. The management our our team right now, we we just focus on running the business, improving the operational metrics, And, but we as you highlighted, we do have, some strong assets within the, group that that, gives us financial flexibility. Thanks. Speaker 600:42:51Okay, great. And then just a sort of follow-up then. As you also mentioned, once Puerto Rico is separated, the rest of the group leverage is significantly lower. Would you feel at that point that you would want to delever the rest of the group further? So just trying to think about sort of potential shareholder remuneration, as you mentioned, the possibility of dividends or share buyback. Speaker 600:43:18I mean, would there be a further need for delevering of the rest of the group? Or you think at that point, you have flexibility essentially around all of the cash flow to use it either a shareholder remuneration or or m and a if you if if there was something interesting from that perspective. Speaker 200:43:40I here's how I'd say it. If you look at the the the separated asset from what remains, Just look at the EBITDA growth on that, and we will organically delever. That that is kinda, you know, one point. And as Chris highlighted, the the actual free cash flow generation of the RemainCo, especially if you look at our wholesale business, subsea business, we're throwing up quite good cash. And now, certainly dividend, stock buybacks, a number of things, the the the traditional capital allocation strategy, we would, you know, we we would we would go through it. Speaker 200:44:17But we're actually really excited about the cash flow generation of the business. We think the the the debt will organically delever as we expand our EBITDA and all the operational efficiencies that we've been working on kicks in. So from that sense, I I think with you know, it's sitting pretty good. So you're gonna have a lower level balance sheet, good cash flow generation, and lot of optionality for, for management and the board to consider. Speaker 300:44:45And I and I would add Speaker 200:44:47Yep. Speaker 300:44:47That the capital structure on cable and wireless in Costa Rica is long term in nature. So over, you know, 30 80% of the debt is, you know, 2031 or beyond. Mhmm. So that provides a a huge amount of flexibility for the company. Speaker 600:45:06Yep. Thank you. Operator00:45:17The next question comes from Gabriel Vazdelima from Morgan Stanley. Your line is now open. Please go ahead. Speaker 300:45:26Hey, thanks for taking my question. Could you give me a bit more color on the impairment you had on Puerto Rico? That would be it in my end. Thank you. Speaker 200:45:38Sure. The the the the impairment is really around the, spectrum that we have here in Puerto Rico, and we had a third party assessment on that. This is the spectrum that came to us from the AT and Speaker 300:45:50T Speaker 200:45:50acquisition. And and, you know, as you know, we we recently acquired new spectrum from Dish, which required, you know, evaluation peg on the spectrum that we already own. It's, it's an accounting adjustment. Yeah. Brian, you wanna add to that? Speaker 300:46:12No. That's right. The the spectrum was impaired, you know, from the AT and T acquisition, which had a a relatively higher carrying value than the disc spectrum. So that ultimately resulted in the in the loss. Speaker 200:46:26Thank you. Thanks, Brian. Speaker 300:46:27Great. Thank you. Thank you, Gabriel. Operator00:46:34That will conclude today's question and answer session. I'd like to hand back to Balan Nair for any apologies, we do have another question from David Lopez of New Street Research. Your line is now open. Please go ahead. Speaker 700:46:51Hi, thank you for taking my question. Just a couple more on Puerto Rico. I think you mentioned a change in management team there. I was wondering if you could give a bit more color. And on your new, offer of mix and match, I know it's early days, but what's the initial impression and initial traction? Speaker 700:47:10Do customer like it? Or or what are the initial thoughts, please? Thank you. Speaker 200:47:17Sure. You know, there are a number of things we were looking at here in Puerto Rico, and the management changes really focus around three specific areas. One, our operations and processes, and this is everything from how you sell to how you collect to how you manage the back office. Second, we were really focused on our network and technology, and that was another big management change that we make made so that the network and technology, you know, improvements that we were looking for get manifested this year. If you saw, we fired up new spectrum, we improved the fixed network, and made significant improvements on our IT systems as well. Speaker 200:48:04And then finally, our commercial go to market. And the commercial go to market strategy that we had over the last year, clearly, as you can say, was underwhelming. And so we brought in some really strong talent in that area, and you you know, you can see it manifested really in the last few weeks with our first launch under this new management team, and it's catching. Our crews have actually increased. The MRC has increased over the, you know, on incoming over the base, and the proposition is catching. Speaker 200:48:38We've got more traffic into stores, etcetera. So the combination of all three resulted in better NPS, lower churn, and soon in the second half this year, you'll start seeing, you know, the the the drop in the top line as well. That that is kinda like how we've been thinking about it. This is a project that's gonna take a lot longer than than than it took to to get to everywhere at. And and but we are very focused on it, and I think we have the right team here in Puerto Rico to execute on it. Speaker 200:49:19David, thank you. Operator00:49:22That will conclude today's question and answer session. I'd like to hand back to Balan there for any additional or closing remarks. Speaker 200:49:31Thank you, operator, and thank you, everybody, in the call. We are actually quite excited about the future here, the future in Puerto Rico and the future in the rest of our businesses. Puerto Rico, things are turning. Green shoots are appearing. And as Chris indicated, you know, the capital structure is just not optimal for the business right now. Speaker 200:49:52So we're gonna work on that, and this is gonna be a really good business for LLA and future LLA shareholders. And then on the remaining business, you can see the numbers. We are very, very excited about it. The cash flow generation as well as the organic growth that we are gonna see, it's it's it's it's gonna be really clear to all of you, to our investors as well, where you can now have a clear line of sight to both these businesses. And, Chris, John, Ray, my whole management team, we are very excited about the future here and, and some of the changes we're making. Speaker 200:50:31So thank you for your support, and look forward to talking to you again. Operator00:50:39Ladies and gentlemen, this concludes Liberty Latin America's Second Quarter twenty twenty five Investor Call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America's website at www.lla.com. There, you can also find a copy of today's presentation materials.Read morePowered by Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Liberty Latin America Earnings HeadlinesLiberty Latin America Ltd. (LILA) Q2 2025 Earnings Call TranscriptAugust 8 at 7:00 PM | seekingalpha.comCritical Contrast: Liberty Latin America (NASDAQ:LILA) vs. Cambium Networks (NASDAQ:CMBM)August 8 at 2:17 AM | americanbankingnews.comGENIUS Act: Cancel Your Money?A new law called the GENIUS Act could quietly trigger the most radical shift in American finance in decades. Backed by the government but powered by private corporations, this initiative paves the way for digital dollars—programmable, trackable, and outside your control. Once embedded into apps, banks, and retail systems, opting out may no longer be possible. But there’s still time to protect your financial freedom—if you act before the system goes fully live.August 8 at 2:00 AM | Priority Gold (Ad)Liberty Latin America Reports Q2 and H1 2025 ResultsAugust 7 at 11:00 AM | finance.yahoo.comLiberty Latin America Q2 Earnings PreviewAugust 6 at 7:58 PM | msn.comLIBERTY LATIN AMERICA ANNOUNCES RETIREMENT OF EDUARDO DIAZ CORONA, SVP AND GENERAL MANAGER OF LIBERTY PUERTO RICO AND USVIJuly 15, 2025 | businesswire.comSee More Liberty Latin America Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Liberty Latin America? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Liberty Latin America and other key companies, straight to your email. Email Address About Liberty Latin AmericaLiberty Latin America (NASDAQ:LILA), together with its subsidiaries, provides fixed, mobile, and subsea telecommunications services. The company operates through C&W Caribbean, C&W Panama, Liberty Networks, Liberty Puerto Rico, and Liberty Costa Rico segments. It offers communications and entertainment services, including video, broadband internet, fixed-line, telephony, and mobiles services to residential and business customers; and business products and services that include enterprise-grade connectivity, data center, hosting, and managed solutions, as well as information technology solutions for small and medium enterprises, international companies, and governmental agencies. The company also operates a sub-sea and terrestrial fiber optic cable network that connects approximately 40 markets. It provides its services under the brands of C&W, Liberty Costa Rica, Liberty Communications, BTC, Flow, and Mas Móvil. The company was incorporated in 2017 and is based in Hamilton, Bermuda.View Liberty Latin America ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Airbnb Beats Earnings, But the Growth Story Is Losing AltitudeDutch Bros Just Flipped the Script With a Massive Earnings BeatIs Eli Lilly’s 14% Post-Earnings Slide a Buy-the-Dip Opportunity?Constellation Energy’s Earnings Beat Signals a New EraRealty Income Rallies Post-Earnings Miss—Here’s What Drove ItDon't Mix the Signal for Noise in Super Micro Computer's EarningsWhy Monolithic Power's Earnings and Guidance Ignited a Rally Upcoming Earnings SEA (8/12/2025)Cisco Systems (8/13/2025)Alibaba Group (8/13/2025)Applied Materials (8/14/2025)NetEase (8/14/2025)Deere & Company (8/14/2025)NU (8/14/2025)Petroleo Brasileiro S.A.- Petrobras (8/14/2025)Palo Alto Networks (8/18/2025)Home Depot (8/19/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 8 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. Operator00:00:05I'll now turn the call over to Sumit Dahta, VP of Investor Relations for Liberty Latin America. Speaker 100:00:14Good morning, and welcome to Liberty Latin America's Second Quarter twenty twenty five Investor Call. At this time, all participants are in listen only mode. Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded. Speaker 100:00:42Today'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 Liberty Latin America's most recently filed annual report on Form 10 ks and quarterly report on Form 10 Q 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. Speaker 100:01:40I would now like to turn the call over to our CEO, Mr. Balan Nair. Speaker 200:01:44Thank you, Sumit, and welcome, everybody, to Liberty Latin America's second quarter and first half twenty twenty five results presentation. I'll begin with our group highlights and an overview of our operating results by credit silo. Chris Noyes, our CFO, will then follow with a review of the company's financial performance. After that, we will get straight to your questions. As always, I'm joined by my talented executive team from across our operations, and I will invite them to contribute as needed during the Q and A following our prepared remarks. Speaker 200:02:21As 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. Today, we believe our share price does not fully reflect the intrinsic value of our underlying business. To unlock this value for our shareholders, we plan to proceed with the separation of Liberty Puerto Rico from LLA. It is essential that Liberty Puerto Rico is positioned with a strong and sustainable capital structure post separation. Speaker 200:02:57To that end, we are actively working towards this goal through a targeted liability management exercise. Chris will provide more details on this in his section. We also continued to grow our high speed broadband and postpaid mobile base in the first half, adding 70,000 subscribers in total across the group. This was over 100,000 additions excluding Puerto Rico with the main contributor being Costa Rica, Panama and Jamaica. We reported GBP 2,200,000,000.0 of revenue in the 2025. Speaker 200:03:37In the same period, residential revenue was up 2% in Liberty Caribbean and Costa Rica and 8% in C and W Panama year over year on a rebased basis. We expect these businesses to continue their momentum in the second half, following the launch of new customer value propositions, which should resonate well in our markets. In addition, and after less favorable phasing through H1, we anticipate better momentum on B2B revenue in the second half across a number of regions. We posted adjusted OIBDA of $822,000,000 reflecting a rebased year over year growth rate of 8% in the first half. This includes double digit rebased growth in Liberty Caribbean, Panama and Puerto Rico. Speaker 200:04:27We maintain our focus on lowering capital intensity. These efforts led to a 23% expansion in adjusted OIBDA less P and E additions year over year, bringing us to a margin of 25% of revenue in the first half of the group and 29% excluding Puerto Rico. These are strong numbers, reflecting the focus of management on profitable growth, which is expected to drive strong cash conversion in the second half. Turning to Slide six. I'll begin our operating review with our Cable and Wireless credit silo, which had another very solid quarter. Speaker 200:05:08This silo includes Liberty Caribbean, C and W Panama and our Liberty Networks segment. Starting with our Caribbean operations, now named Liberty Caribbean. We've rebranded this segment in the second quarter with a refreshed identity and signaling a renewed focus on driving digital transformation, particularly in the B2B space. On the left of the slide, we present our mobile KPIs. Postpaid mobile ads remained strong, led by another solid quarter in Jamaica that represents 20 consecutive quarters of subscriber growth. Speaker 200:05:44Mobile ARPU reported growth both sequentially and year over year, supported by prepaid price increases implemented earlier this year and in the first half of last year. This resulted in 6% mobile rebased revenue growth in Q2 year over year. Moving to the center of the slide to our fixed KPIs. Broadband subscriber growth was flat in Q2 with gains in Jamaica offset by declines mainly in Trinidad. Trinidad is the only Caribbean market we operate in where there are three national fixed players and where we lack a mobile offering. Speaker 200:06:21Fixed ARPU per customer relationship increased both on a sequential and year over year basis, reflecting the benefit of pricing changes. Lastly, for Liberty Caribbean, besides our corporate rebranding, we launched a new residential campaign titled, Let Your Rhythm Flow. This initiative strengthens our convergence strategy with a particular emphasis on accelerating postpaid mobile adoption. The redesigned platform introduced a striking new visual identity that is both distinctive and deeply rooted in local cultures, traditions and values, enabling us to build a stronger emotional connection with our customers. Moving to Slide seven and our C And W Panama segment. Speaker 200:07:10Starting on the left of the slide, we delivered another quarter of strong postpaid ads, which supported robust mobile rebased revenue growth of 6% year over year. This performance continues to reflect the positive subscriber momentum we built following a competitor's exit from the market last year. Mobile ARPU remained stable both sequentially and year over year, impacted by lower prepaid recharges during the quarter, largely due to nationwide protests, which have since subsided. Moving to the center of the slide, we delivered a solid quarter of Internet subscriber adds. This growth reflects the effectiveness of our broadband strategy and continued demand for high speed connectivity. Speaker 200:07:56On the other hand, fixed ARPU declined both sequentially and year over year. This was primarily driven by retention discounts and lower acquisition ARPU as we responded to offers from competitors. Our go to market strategy remains focused on delivering consistent results across our high speed networks. This commitment was recently recognized by NPERF, which named as the best performing fixed network in the country. In the b to b space, I'm pleased to highlight, among other recent wins, a major milestone. Speaker 200:08:31We were awarded a contract with the Ministry of Education of Panama, Maduka, to provide high speed Internet to all public schools nationwide. This marks a significant step forward in advancing digital and educational inclusion across the country. Overall, we are building a strong platform in Panama. After a tough comparison in the first half, we are well positioned to carry better momentum into the second half of the year. Next, Slide eight and our final segment within the C and W credit silo, Liberty Networks. Speaker 200:09:11On the left of the slide, we present our first half year over year revenue evolution. While revenue declined year over year due to the acceleration of noncash IRU revenue in the 2024, our Subsea business continues to demonstrate resilience. Excluding IRUs, the underlying wholesale revenue grew 8% on a rebased basis year over year, driven by new lease capacity sales. This 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 The Dominican Republic and El Salvador. Speaker 200:09:58These services are helping us build a strong base of monthly recurring revenue, which supports long term stability and positions us well for the future. On the right of the slide, we highlight the core strength of our subsea and terrestrial infrastructure, which underpin the competitive edge of Liberty Networks. Our unique mesh network connecting over 30 countries with 50,000 kilometers of cable form the backbone of a diversified revenue portfolio, predominantly denominated in U. S. Dollars. Speaker 200:10:32Despite elevated capital expenditures associated with Project Manta, our new subsea cable system in partnership with Sparkle and Gold Data, we continue to deliver robust adjusted OIBDA less P and E additions of over 35% of revenue, reflecting the low capital intensity of the business and its ability to generate strong cash returns. Looking ahead, our focus remains on the successful execution of Project Monitor. On track for completion in 2027, the initiative is expected to establish a solid foundation of monthly recurring revenue, enhancing long term profitability and positioning Liberty Networks as the region's primary data hub. Turning to Slide 10 and Liberty Costa Rica. Starting on the left of the slide. Speaker 200:11:25Mobile continues to perform strongly with growth concentrated in the high value postpaid segment, reinforcing our leadership in the market and driving 5% rebased revenue growth year over year. According to the latest regulator report, we remain the number one mobile operator overall in Costa Rica throughout 2024. In postpaid specifically, we gained two percentage points in market share year over year. Mobile ARPU was flat sequentially but grew year over year supported by postpaid price increases and a higher proportion of postpaid subscribers. Moving to the center of the slide, we delivered modest broadband net adds and fixed ARPU declined both sequentially and year over year. Speaker 200:12:16As referenced in previous calls, the competitive backdrop in Costa Rica's fixed market remained challenging. To defend our fixed position and differentiate our offering, we have also revamped our video proposition. Since July 15, new and existing customers have access to the most popular over the top platforms included in their home plan. This bold and meaningful value proposition, unique for the Costa Rican market, is anchored by a new brand play. You want it, you got it. Speaker 200:12:49It's a promise that brings us closer to our customers, showing that we listen, we care and we deliver. Moving to Slide 12 and our third credit silo, Liberty Puerto Rico. Starting on the left of the slide, mobile performance showed signs of improvement. Postpaid losses were lower compared to Q1 with a better run rate in May and June, and mobile ARPU increased sequentially, resulting in relatively flat sequential mobile subscription revenue. We continue to be focused on the mobile segment, and I'm pleased to report that in June, we successfully expanded our network through the integration of low band 600 megahertz spectrum alongside AWS three and AWS four bands. Speaker 200:13:39This strategic enhancement marks a significant step forward in service quality, capacity, and coverage. This combination of spectrum bands is instrumental in meeting the surging demand for mobile data, ensuring we remain well positioned to support future growth. As a reminder, we were honored with both the best in class and the most reliable network awards from GWS earlier this year, further validating the strength and consistency of our network performance. Moving to the fixed sites in the center of the slide, following the price increase implemented earlier this year, we reported 7,000 in net subscriber net losses, but fixed ARPU increased both sequentially and year over year. Fixed revenue was slightly negative year over year as ARPU growth was more than offset by a lower subscriber base impacted by the discontinuation of the ACP program in Q2 twenty twenty four. Speaker 200:14:41We are now close to 20% fiber to the home and have invested to upgrade our HFC network to DOCSIS 3.1. This enhancement has significantly boosted performance and enabled us to win the fastest fixed network award from Ookla, achieving the highest speed scores and Wi Fi performance on the island. Slide 13 provides a deeper look into postpaid net adds, the evolution of mobile NPS, the launch of our new postpaid CVP, Liberty Mix and other initiatives. On the left of the slide, we break down postpaid activity into gross adds and disconnections. Gross adds over the past two quarters have remained consistent with pre migration levels, underscoring the resilience and appeal of our product offering. Speaker 200:15:33Postpaid churn continues to improve, marking the fourth consecutive quarter of positive momentum. Moving to the center of the slide, we show NPS progression, a key leading indicator of customer satisfaction and brand perception. Compared to one year ago, we've made significant strides in rebuilding customer trust with NPS showing strong recovery. While our mobile NPS have returned to positive territory, it remains below pre migration levels, indicating further room for improvement. On the top right of the slide, we wanted to share more detail on Liberty Mix. Speaker 200:16:12In July, we launched our new postpaid customer value proposition, Liberty Mix. This innovative mobile plan offers three tiers, enabling customers to tailor each line to the specific needs of individual family or group members within a multiline bundle. Liberty Mix marks the first step in our brand relaunch strategy, and we anticipate it will drive gross adds in the second half of the year. On the bottom right of the slide, now that we have strengthened our network, IT systems and internal processes, we are applying the same playbook used across the Liberty Latin America Group, where FMC has proven very successful with over 30% penetration in a number of markets to lean into convergence in Puerto Rico. Our combination of best in class fixed and wireless infrastructure should allow us to differentiate in a competitive marketplace. Speaker 200:17:07Being part of the wider group, Liberty Puerto Rico benefited from shared platforms and expertise. We've been developing solutions that use AI to improve our operations across our entire value chain, strong focus on commercial activities and top line growth. Specifically in Puerto Rico, we have been focusing on billing quality assurance and churn prediction. Moreover, we have made a significant number of changes to the management team, including leveraging experience and expertise from across the LLA footprint. Lastly, we continue to reshape the company's cost base to reflect the smaller scale of the business, conducting a disciplined review of each cost line. Speaker 200:17:49We expect additional measures will deliver greater margin impact in the second half of the year. Finally, on Slide 14, we summarize our strategic vision and outline the key drivers that sets us up for growth in H2. Firstly, the residential space where we are well positioned. We operate in countries with healthy market structures across both fixed and mobile services, and we pursue consolidation opportunities to deliver value to customers and markets. For example, last year, we agreed to acquire TIGO's business in Costa Rica, which has brought growth in that market. Speaker 200:18:29We are working with regulators to approve that transaction and now expect this to close in early twenty twenty six. Our focus on fixed mobile convergence continues to pay off with penetration rates exceeding 30% in several markets, supported by our robust fixed and mobile infrastructure. We have also introduced several new customer value propositions in recent weeks, reinforcing our commercial momentum heading into the second half. Our second area of focus is B2B, which accounts for nearly one third of group revenue. While we face year over year B2G revenue headwinds through Q2 and first half, particularly in Panama, we expect improved performance in the second half across several geographies to drive improving revenue momentum. Speaker 200:19:17Governments are investing in digitization, security, and cloud computing, and we are the right trusted partner for them. Along those lines, ICT continues to be a source of future growth opportunity as we develop more encompassing cloud and cybersecurity solutions focused on mission critical operations for our customers. We partnered with the hyperscalers to deliver computational and AI models for our customers. The MANTA build, which progressed steadily through the first half, is expected to contribute meaningfully to Liberty Networks revenue and adjusted OIBDA over the medium term. Lastly, cost. Speaker 200:19:57We have delivered strong margin progression in recent quarters, especially within our C and W silo. Across the group, we continue to see upside as we focus on higher margin residential products. Our initiatives around copper migration, digitization and AI adoption have significantly enhanced workforce efficiency leading to meaningful labor cost reductions. Additionally, we anticipate healthy synergies following the expected completion of the TIGO merger in Costa Rica. 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. Speaker 200:20:39Chris? Speaker 300:20:40Thanks, Pauline. Let me now take you through our financial performance in greater detail, starting on Slide 16. Q2 twenty twenty five revenue was 3% lower on a rebased basis totaling 1,100,000,000 This decline was primarily driven by the phasing of project related B2B revenues across several geographies. Importantly, we have good visibility into stronger delivery in the second half of the year. However, residential revenue grew 1% year over year on a rebased basis, reflecting the strength of our core consumer business. Speaker 300:21:19Turning to adjusted OIBDA, we reported a rebased increase of 7% to $415,000,000 building on the solid 8% growth in Q1. Among our segments, only Liberty Networks saw a year over year decline in adjusted OIBDA largely due to the timing of non cash IRU accelerations, Speaker 200:21:40which Speaker 300:21:40have now largely normalized. Supporting this growth is operating leverage as we continue to execute on a range of cost out initiatives across our operations. These efforts have contributed to an improvement in our consolidated adjusted OIBDA margin, which expanded by three forty basis points year over year. Moving to the last section, we highlight an important metric for us, which is adjusted OIBDA less P and E additions. This increased by 26% to $265,000,000 in Q2, representing 24% of revenue compared to nineteen percent last year. Speaker 300:22:18The year over year improvement is reflective of the higher adjusted OIBDA margin and lower capital intensity with P and E additions amounting to 14% of revenue in the quarter. Although we were up year over year on adjusted OIBDA less P and E additions, our reported adjusted FCF before partner distributions was negative $41,000,000 in Q2 as compared to negative $7,000,000 in the prior year, a decline of $34,000,000 This was attributable to working capital swings including timing on key collections from our government customers. As in previous years, we anticipate a robust second half in cash flow generation principally in the fourth quarter. Slide 17 recaps our Q2 results for the C and W credit silo, which consists of Liberty Caribbean, CWP and Liberty Networks. Starting with Liberty Caribbean. Speaker 300:23:15In Q2, we reported three sixty six million dollars in revenue with flat rebased growth year over year. This result reflects 6% growth in residential mobile offset by a rebased decline of 31% year over year in B2B and residential fixed respectively. The strength in mobile was driven by higher prepaid ARPU helped in part by selected price increases and a larger postpaid subscriber base supported by our successful FMC and prepaid to postpaid migration strategy. Fixed residential revenue declined driven by lower volumes mainly due to the impact of Hurricane Peril in Q3 twenty twenty four and lower non subscription revenue. B2B was impacted by lower project revenue, particularly in Bahamas. Speaker 300:24:04Adjusted OIBDA came in at $174,000,000 representing 11% rebased growth year over year, fueled by optimization initiatives across our island geographies and our operating cost categories, including our network and commercial expense. Our efforts have translated into an adjusted OIBDA margin improvement of nearly 500 basis points year over year reaching 47%. Next moving to Cable and Wireless Panama. CWP generated $177,000,000 of revenue and $69,000,000 of adjusted OIBDA with a 10% rebased revenue decline and 6% rebased adjusted OIBDA growth year over year. The rebased top line decline was driven by 30% lower B2B revenue, partly offset by increases of 62% in residential mobile and residential fixed respectively. Speaker 300:25:01The year over year decline in B2B revenue reflects an exceptionally strong prior year comparison driven by high volume of government project wins in Q2 twenty twenty four. We expect to catch up in the second half of the year supported by a solid pipeline. The healthy mobile revenue uplift was supported by postpaid subscriber growth and higher handset sales, though prepaid was partially impacted by nationwide protests during the quarter. The residential fixed revenue rebased growth was mainly driven by broadband RGU additions. Year over year adjusted OIBDA performance was driven by improved gross margin helped in part by lower B2B project related revenue and a reduction in operating expenses year over year. Speaker 300:25:47As a result, factors led to an adjusted OIBDA margin expansion of almost 600 basis points to 39%. Turning to Liberty Networks, which delivered $150,000,000 in revenue and $61,000,000 in adjusted OIBDA, resulting in a rebased decline of 3% in both metrics. Specifically, wholesale revenue fell by 3% on a rebased basis due to an $8,000,000 reduction in non cash IRU revenue amortization as compared to the prior year. Enterprise revenue declined by 1% on a rebased basis mainly due to lower project related revenue, which more than offset gains in IT as a service and connectivity. Adjusted OIBDA was mainly impacted by the aforementioned decrease in IRU revenue. Speaker 300:26:35Aggregating all three operating segments within the C and W credit silo, we generated $636,000,000 in revenue reflecting a 3% rebased decline and $3.00 $3,000,000 in adjusted OIBDA, resulting in 7% rebased growth. Moving to Slide 18 and the Q2 results for our other two credit silos, Liberty Puerto Rico and Liberty Costa Rica. On the left, Puerto Rico. Revenue was $3.00 $1,000,000 representing a 5% year over year rebased decline. Residential fixed revenue declined 1% primarily due to lower volumes following the discontinuation of the ACP program, partially offset by higher broadband and video ARPU driven by price increases implemented earlier this year. Speaker 300:27:25Mobile residential revenue declined by 3% on a rebased basis driven by lower postpaid subscriber base post migration. This was partially mitigated by higher non subscription revenue while prepaid revenue remained broadly flat. B2B revenue declined 18% on a rebased basis mainly due to lower mobile service revenue resulting from a reduced subscriber base and ARPU decline. Adjusted OIBDA increased by 21% year over year on a rebased basis, reaching $87,000,000 The improvement was primarily driven by lower bad debt expense, the phase out of integration and TSA costs and reduced labor costs. P and E additions were $38,000,000 representing 12% of revenue, a three forty basis point decrease over prior year levels as the business actively managed its capital intensity. Speaker 300:28:20Concluding with Costa Rica on the right, we delivered Q2 revenue of $151,000,000 and adjusted OIBDA of $54,000,000 reflecting a 1% rebased revenue growth and flat rebased adjusted OIBDA growth year over year. Mobile residential revenue grew 5% on a rebased basis supported by higher postpaid volumes from our prepaid to postpaid migration strategy and strong equipment sales. Fixed revenue was down 3% year over year on a rebased basis driven by lower ARPU primarily due to our buy to own CPE model which is in turn increasing non subscription revenue. B2B revenue was down 5% year over year on a rebased basis mainly due to lower service rep. Adjusted OIBDA remained flat as revenue gains were offset by higher equipment costs and increased bad debt. Speaker 300:29:14Next to Slide 19 and our balance sheet metrics by credit silo and in aggregate for LOA as of June 30. The C and W silo accounts for approximately $5,000,000,000 of LOA's total debt of $8,200,000,000 and has covenant leverage of 3.9 times. Given the refinancings we have completed over the last nine or so months, we have linked in the silos average life to about six years. Turning to Costa Rica, we have about $500,000,000 of debt and the business has covenant leverage of 2.1 times with the debt stack due in 02/1931. Importantly, we would expect to be in position post closing the TIGO acquisition in 2026 to refinance our debt to more attractive levels given the low leverage and underlying strong performance of the business. Speaker 300:30:03And finally, Liberty Puerto Rico has $2,800,000,000 of debt, covenant leverage at 7.9 times and debt maturities largely between 2027 to 2029. We'll discuss our approach with the near dated stack on the next slide. At the consolidated level, we have no debt at the holding company and thus in aggregating our three credit silos, $8,200,000,000 of debt reflects consolidated net leverage of 4.7 times. Moving to Slide 20. Today, we wanted to highlight two key strategic initiatives that we have recently embarked upon at LLA and its operating businesses. Speaker 300:30:41Liability management at LPR and a concerted effort at LLA to unlock the underlying value of our operating assets. First, turning to the left side of the slide and building upon the balance sheet discussion from the prior slide and the commentary that we have shared over the last year. Our local operating team and LLA more broadly have been highly focused on stabilizing LPR and improving all aspects of the underlying business. As Valen noted today, we are seeing green shoots of a recovery. With that being said, it is our view that the capital structure at LPR is unsustainable both in terms of quantum of leverage and expected carry cost. Speaker 300:31:24Hence, with still more than two years until our earliest bond maturity, we believe it is the appropriate time to look to improve and right size the capital structure. This should set LPR up for long term success. Importantly, LPR has covenant flexibility in its credit documents, which will enable LPR to utilize its assets to raise incremental capital to the extent needed to fulfill near term liquidity gaps. For our team on the ground, it remains business as usual with the utmost focus on our employees, customers and vendors and ultimately growing the business. There is no specific timeline for resolving the capital structure. Speaker 300:32:07We'll look to communicate updates as necessary. Finally, LPR has appointed Moelis and Robson Gray to lead the execution of the liability management exercise. Moving to the right side of the slide, having previously reiterated the silo principle of the Liberty Latin America Group and in order to better highlight and unlock the respective value in our assets, We are announcing our intention to separate Puerto Rico from the rest of the LLA group. This will enhance our ability to better position each of the respective businesses and their positive attributes, including market position, growth opportunity and potential cash generation. The separation can be affected in several ways including a potential spin off of LPR and we are targeting to complete into the first half twenty twenty six. Speaker 300:32:59Importantly, the separation is not dependent on completing the liability management exercise. In terms of the relative size of the two groups of assets and using 2024 full year results as a proxy, revenue and adjusted OIBDA for LLA excluding Puerto Rico would have been approximately $3,200,000,000 and $1,300,000,000 respectively. After deducting the reported segment results of Puerto Rico, which reported $1,300,000,000 of revenue and $3.00 $8,000,000 of adjusted OIBDA. On the same basis and excluding Liberty Puerto Rico, LLA's adjusted FCF before distributions would have been nearly $200,000,000 or almost 70% higher than what was reported as a consolidated group in 2024. This is not necessarily reflective of the separate results, but a good indication. Speaker 300:33:52We obviously expect FCF to expand from here given the underlying operational strength of the business as we have demonstrated through H1. Additionally, the remaining LLA business would be levered roughly one turn lower from where it is today. Post separation, LLA expects to have the ability to enhance its capital return strategy, including the potential for not only share repurchases but recurring dividends, capitalizing on the FCF generation of the LLA assets, excluding Liberty Puerto Rico. Citi and Linetree are working with LLA on asset separation as well as other corporate options to help to unlock equity value at LLA and remove the embedded valuation discount that we believe has been apparent in our equity trading price. Moving to Slide 21 and our conclusions. Speaker 300:34:45In the first half, we delivered solid results. Adjusted OIBDA grew at a high single digit rate with particularly strong growth in the C and W side. We also saw a year over year decline in P and E additions. This is a reflection of our disciplined capital intensity management and improved operational efficiency. Looking ahead to the second half, we are optimistic. Speaker 300:35:06We have launched new customer value propositions aimed at sustaining residential momentum. On the B2B side, we have a good pipeline that should support stronger revenue performance. In addition to these top line drivers, we have substantial cost out initiatives in flight across each of our businesses and corporate and expect more favorable working capital trends in H2, all of which should set the stage for improved free cash flow performance as we close the year. Our operating prospects combined with the actions that we just discussed in both the liability management and separation of Puerto Rico, we believe set the stage for value creation for LOA shareholders. We look forward to updating investors over the next quarters as our projects advance and both the operating and corporate teams of LLA are hard at work to deliver continued growth, margin improvement and cash flow generation. Speaker 300:36:01With that operator, happy to take questions. Operator00:36:39The first question comes from Vito Altamita Your line is now open. Please go ahead. Speaker 400:36:48Good morning all and thanks for taking our questions. We have two from our side. They're actually on Panama. The first one is if you could give a bit more color on the B2B headwinds that you saw there. If those are related to private or government projects and if there have been any further collections issues on this B2B front? Speaker 400:37:07And the second question would also be on Panama, but on the margin side, margins improved a lot there. And to a point that EBITDA rose year on year despite the revenue headwinds, could you give more color on the OpEx reductions or efficiencies that allowed for that aside from revenue mix effects naturally? Thank you. Speaker 200:37:30Thanks. Good morning. Thanks for the question and I'll ask Rocio to join in here in a second as well. The B2B headwinds primarily won comparison to a very, very strong second quarter in 2024. But in addition to that, we did deliver a number of projects to the government in the second quarter this this year that due to a lot of the bureaucracy and signatures required, we did not recognize recognize that revenue, and so you'll start seeing that drop in the in the third quarter. Speaker 200:38:04And but for the most part, it's all b two g. It's business to government, and we who is one of our largest customers as well. So that's kinda a little bit of the headwind there. On the margin expansion, I mean, it's actually quite a quite a strong story. You'll see the real margin expansion at the operating free cash flow level. Speaker 200:38:27And the and and the way we've done that is through both efficiencies at the OpEx level and efficiencies at the CapEx level. I mean, the we we we see a significant I think from the last time, it's like almost six, seven points. And and and we think there's still plenty of room to grow as you look at some of our other operating units as well. So we are quite bullish around the margin expansion in Panama. The cash the revenue trajectory will change in the third quarter as the phasing issues of b two b. Speaker 200:39:00But I would like to highlight our mobile business that's been growing, revenue has been growing, and our fixed business grew as well. And the fixed business, you know, has, I think, even more opportunity for us because we do have the smaller market share in that market with a better network, the fiber to the home network. So with that, Rocea, would you like to add some color? Speaker 500:39:25Sure. Absolutely. So on the revenue side, for B2B, the headwinds that we were experiencing this quarter, I would say our B2B business is a tale of two cities. So one, the recurring business and the other side, the nonrecurring business, which is mostly government revenue. So on the recurring business, we are experiencing quite a strong quarter, in fact. Speaker 500:39:52Just to give you a bit of comfort, we are seeing our customer base in both in mobile and fixed services growing, middle to high single digits. So we're seeing the the recurring business progressing, continuing to progress very well with momentum. On the non recurring business, which is this type of big projects, in this case, 100% government projects. Of course, it's basically depending on the phasing. So you have one big project like we won this quarter of the Metuka project, right, that was, like, $40,000,000. Speaker 500:40:30However, until you are able to see it on your p and l, it takes time. And those, this lumpiness of the nonrecurring business is basically what you are seeing right now. And as, balance and Chris stated, it's something that we're hoping to see with a very different momentum on the second half of of the year. So so that's your your point on on revenue. On the increased profitability, I think it's basically two main levers. Speaker 500:41:01At the gross margin level, it's basically the tailwinds from our well performing recurring business, the residential business and the recurring part of the b to b business. And then at the OpEx level, we have done significant work over the last quarters in terms of streamlining our labor and our non labor OpEx, and you're starting to see the fruits of that work. So glad you noticed. Thank you. Speaker 400:41:34Thanks, Roscio. Thank you very much. Operator00:41:42The next question comes from Chris Hall of New Street Research. Chris, your line is now open. Please go ahead. Speaker 600:41:51Yes. Thank you. I just had a couple of questions on the plans around spinning out Puerto Rico. Obviously, you've mentioned that you want to use selected assets. I just wondered if you could clarify which assets in particular. Speaker 600:42:07I mean the key ones from my perspective would seem to be spectrum and the broadband network. But is there anything else that you think is material enough to be able to utilize? Speaker 200:42:20Well, you kind of highlighted a lot in the assets that we have. But we're really not commenting too much around, you know, how and we're gonna approach that liability management. The management our our team right now, we we just focus on running the business, improving the operational metrics, And, but we as you highlighted, we do have, some strong assets within the, group that that, gives us financial flexibility. Thanks. Speaker 600:42:51Okay, great. And then just a sort of follow-up then. As you also mentioned, once Puerto Rico is separated, the rest of the group leverage is significantly lower. Would you feel at that point that you would want to delever the rest of the group further? So just trying to think about sort of potential shareholder remuneration, as you mentioned, the possibility of dividends or share buyback. Speaker 600:43:18I mean, would there be a further need for delevering of the rest of the group? Or you think at that point, you have flexibility essentially around all of the cash flow to use it either a shareholder remuneration or or m and a if you if if there was something interesting from that perspective. Speaker 200:43:40I here's how I'd say it. If you look at the the the separated asset from what remains, Just look at the EBITDA growth on that, and we will organically delever. That that is kinda, you know, one point. And as Chris highlighted, the the actual free cash flow generation of the RemainCo, especially if you look at our wholesale business, subsea business, we're throwing up quite good cash. And now, certainly dividend, stock buybacks, a number of things, the the the traditional capital allocation strategy, we would, you know, we we would we would go through it. Speaker 200:44:17But we're actually really excited about the cash flow generation of the business. We think the the the debt will organically delever as we expand our EBITDA and all the operational efficiencies that we've been working on kicks in. So from that sense, I I think with you know, it's sitting pretty good. So you're gonna have a lower level balance sheet, good cash flow generation, and lot of optionality for, for management and the board to consider. Speaker 300:44:45And I and I would add Speaker 200:44:47Yep. Speaker 300:44:47That the capital structure on cable and wireless in Costa Rica is long term in nature. So over, you know, 30 80% of the debt is, you know, 2031 or beyond. Mhmm. So that provides a a huge amount of flexibility for the company. Speaker 600:45:06Yep. Thank you. Operator00:45:17The next question comes from Gabriel Vazdelima from Morgan Stanley. Your line is now open. Please go ahead. Speaker 300:45:26Hey, thanks for taking my question. Could you give me a bit more color on the impairment you had on Puerto Rico? That would be it in my end. Thank you. Speaker 200:45:38Sure. The the the the impairment is really around the, spectrum that we have here in Puerto Rico, and we had a third party assessment on that. This is the spectrum that came to us from the AT and Speaker 300:45:50T Speaker 200:45:50acquisition. And and, you know, as you know, we we recently acquired new spectrum from Dish, which required, you know, evaluation peg on the spectrum that we already own. It's, it's an accounting adjustment. Yeah. Brian, you wanna add to that? Speaker 300:46:12No. That's right. The the spectrum was impaired, you know, from the AT and T acquisition, which had a a relatively higher carrying value than the disc spectrum. So that ultimately resulted in the in the loss. Speaker 200:46:26Thank you. Thanks, Brian. Speaker 300:46:27Great. Thank you. Thank you, Gabriel. Operator00:46:34That will conclude today's question and answer session. I'd like to hand back to Balan Nair for any apologies, we do have another question from David Lopez of New Street Research. Your line is now open. Please go ahead. Speaker 700:46:51Hi, thank you for taking my question. Just a couple more on Puerto Rico. I think you mentioned a change in management team there. I was wondering if you could give a bit more color. And on your new, offer of mix and match, I know it's early days, but what's the initial impression and initial traction? Speaker 700:47:10Do customer like it? Or or what are the initial thoughts, please? Thank you. Speaker 200:47:17Sure. You know, there are a number of things we were looking at here in Puerto Rico, and the management changes really focus around three specific areas. One, our operations and processes, and this is everything from how you sell to how you collect to how you manage the back office. Second, we were really focused on our network and technology, and that was another big management change that we make made so that the network and technology, you know, improvements that we were looking for get manifested this year. If you saw, we fired up new spectrum, we improved the fixed network, and made significant improvements on our IT systems as well. Speaker 200:48:04And then finally, our commercial go to market. And the commercial go to market strategy that we had over the last year, clearly, as you can say, was underwhelming. And so we brought in some really strong talent in that area, and you you know, you can see it manifested really in the last few weeks with our first launch under this new management team, and it's catching. Our crews have actually increased. The MRC has increased over the, you know, on incoming over the base, and the proposition is catching. Speaker 200:48:38We've got more traffic into stores, etcetera. So the combination of all three resulted in better NPS, lower churn, and soon in the second half this year, you'll start seeing, you know, the the the drop in the top line as well. That that is kinda like how we've been thinking about it. This is a project that's gonna take a lot longer than than than it took to to get to everywhere at. And and but we are very focused on it, and I think we have the right team here in Puerto Rico to execute on it. Speaker 200:49:19David, thank you. Operator00:49:22That will conclude today's question and answer session. I'd like to hand back to Balan there for any additional or closing remarks. Speaker 200:49:31Thank you, operator, and thank you, everybody, in the call. We are actually quite excited about the future here, the future in Puerto Rico and the future in the rest of our businesses. Puerto Rico, things are turning. Green shoots are appearing. And as Chris indicated, you know, the capital structure is just not optimal for the business right now. Speaker 200:49:52So we're gonna work on that, and this is gonna be a really good business for LLA and future LLA shareholders. And then on the remaining business, you can see the numbers. We are very, very excited about it. The cash flow generation as well as the organic growth that we are gonna see, it's it's it's it's gonna be really clear to all of you, to our investors as well, where you can now have a clear line of sight to both these businesses. And, Chris, John, Ray, my whole management team, we are very excited about the future here and, and some of the changes we're making. Speaker 200:50:31So thank you for your support, and look forward to talking to you again. Operator00:50:39Ladies and gentlemen, this concludes Liberty Latin America's Second Quarter twenty twenty five Investor Call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America's website at www.lla.com. There, you can also find a copy of today's presentation materials.Read morePowered by