Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. I will now turn the call over to Matt Read, Treasurer of Liberty Latin America.

Good morning, and welcome to Liberty Latin America's Third Quarter 2023 Investor Call. At this time, all participants are in listen-only mode. Today's formal presentation materials can be found under the Investors 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 and will be available under the Investors section of our website. Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook, our recently announced pending transactions 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-K and the quarterly report on Form 10-Q most recently filed with the SEC, along with the associated press release. Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the Investors section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Matt, and welcome, everyone, to Liberty Latin America's third quarter results presentation. I'll begin with our group highlights and an overview of our operating results by reporting segment. 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 am joined by my executive team from across the region, and I will invite them to contribute as needed during the Q&A following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com. Starting on slide four in our highlights for the third quarter. We had another strong operating quarter with 44,000 additions across Internet and postpaid mobile subscribers. Over the past year, we have added close to 225,000 subscribers across these two products, which shows the strength of our commercial office. We are also continuing to invest in our networks with over 100,000 homes passed, all upgraded in the quarter and 285,000 year-to-date, driven by activity in Cable & Wireless Caribbean and Panama. We reported adjusted OIBDA of $428 million in the quarter, representing a 10% year-over-year increase. This is our best rebased growth performance in two years driven by double-digit growth in all of our segments apart from Puerto Rico, which we will cover in later slides. I want to emphasize that this significant growth primarily reflect structural efficiency improvements across our operations and not one-offs. We continue to allocate capital for our buyback program with $112 million between stock and convertible repurchases in the quarter. Through the end of Q3, we have bought back $111 million of our stock, $111 million of our stock and reduced the outstanding amount of our convertible bond due next year…

Thanks, Balan. I'll now take you through our financial performance in greater detail, starting on slide 12. As a reminder, we deconsolidated our Chilean business at the start of Q4 2022 so our reported results in 2023 do not include the operating results of VTR. Revenue was 1% higher on a rebased basis at $1.1 billion in the third quarter. We saw positive commercial traction across many of our markets with performance driven by double-digit growth in C&W Panama and Liberty Networks. As mentioned in prior quarters, C&W Caribbean reported revenue was impacted by a business decision to discontinue our legacy noncore B2B voice transit arrangement in Q1 2023 which was accounting for about $10 million of quarterly revenue and will have a similar impact in Q4. Adjusting for this, Q3 group revenue would have grown by 2% on a rebased basis year-over-year. Turning to adjusted OIBDA. We reported rebased growth of 10% to $428 million, our best quarterly result in two years and reflecting structural efficiency improvements. Year-to-date, rebased growth was 5% for the group, and with further growth anticipated in Q4, we are well positioned to deliver our target of mid- to high single-digit rebased adjusted OIBDA growth for LLA this year. In the third column, our P&E additions were $187 million in Q3 or 17% of revenue. Nearly 60% of our quarterly spend was directed to CPE, new build, upgrade and capacity. We continue to step up our new build and upgrade activity sequentially, reaching over 100,000 homes in the quarter. We are on track to deliver our guidance target of 16% of revenue for 2023. In the last chart, we delivered $33 million of adjusted FCF in the quarter. As in previous years, we anticipate that our adjusted free cash flow generation for the year will…

The question-and-answer session will be conducted electronically. [Operator Instructions] Our first question goes to Michael Rollins of Citigroup. Michael, please go ahead. Your line is open.

Thanks and good morning. First, just focusing on Puerto Rico. Thanks for all the color and detail on the sequential and year-over-year changes. Can you provide a little more context in terms of how much the totality of integration and implicative TSA costs may be weighing on the OIBDA in the quarter and for the year? And maybe just talk about the journey of how the business as you get to April of next year and get fully done with the integration, how the financial performance of this segment would improve?

Sure. Thanks, Michael. We had signaled a 70 million type synergy for Puerto Rico and we are still going to get that. It's kind of slightly delayed, but perhaps a couple of quarters due to the delays in migration. And so the way we think about it is the -- there is definitely an impact. There's a few impacts here on the cash for us. One, because of the delay in the migration, we are now not only paying AT&T for the services but we've also stood up our own platforms, both the network and the IT stack, and we're already paying licenses for all that. So we kind of like doubled up in costs during this period. The second part is, as we looked at the migration, there were a few things that we -- over the last six months or so have come to the conclusion where there's just a whole bunch of handsets that's just not feasible for us the software upgrade. These are handsets like Android devices that on an Android past that is really determined by AT&T and those software pushes come up from AT&T. They don't come up from Samsung as an example. So when a Samsung release comes out, it's on a different floor as the one with AT&T. And in some cases, we've just decided, you know what, it's going to be a terrible customer experience where we do the migration and certainly the devices do not work. And so we've also taken the decision to start replacing proactively handsets during these migrations. So that's also going to hit us in a cost that we certainly didn't even budget for. So there's a number of things that you'll see impact us towards the end of the year and certainly bleed a little…

Thank you. It was. And I'm looking back at slide 13, where you lay out the financial performance in the quarter by segment. And I'm looking at the stronger rebased OIBDA growth in C&W in Panama, in Liberty Networks and Costa Rica, can you just give us a sense of how much of those OIBDA levels are considered run rate versus maybe any impact that might be a seasonal point of strength or a transitory source of strength to the extent that there were some like onetime benefits or some things that maybe costs that you avoided that need to come back at some point. So just trying to think about the durability of these new adjusted OIBDA levels that you're hitting in these other parts of your business?

Sure. So the OIBDA that we're hitting is actually kind of our new run rate. So we've already taken a lot of the synergies in Panama, in Costa Rica, and when you look at the OIBDA in Cable and Wireless, it also included not necessarily synergies, but some serious cost reductions that are permanent. So what would that be? One would be programming. We restructured a lot of our content costs in Cable & Wireless that give us some really good upside on the OIBDA line. In addition to that, the one other area that give us incremental OIBDA as well is the increment in roaming. Our roaming has returned not to the levels of pre-COVID, but people are starting to travel again. Cruise ships are out there. And so we're getting that upside as well. Now you can say that roaming may go up and down over the years, but we think we've kind of hit that kind of a steady state there. It's never going to come back to pre-COVID levels, but it's certainly an expansion over last year. So between those two, you saw quite a bit of an OIBDA expansion there and in addition to revenues. As Chris pointed out, the revenue growth is actually larger than what is showed here on a year-to-year basis. because of some of the transit traffic that had zero margins in it. So that was helpful. And as a matter of fact, when I look at the overall LLA, there are a couple of things here that actually we showed a 1% increase at the LLA level. It should be close to like 3%, because there's about a couple of one-offs from last year, like FCC funding that we got last year that don't exist this year. So that went away. That was quite a hit to us. So I think if you normalize for some of the things across LLA as well, we actually grew more than 1%. And that's why I feel really good about the OIBDA contribution margin has expanded and so you would normally look at it, operating wise, about a 3% growth and the top line of 10% growth on the bottom line, which is kind of a healthy way to run an operation.

Thank you very much.

Thank you. And the next question go to Vitor Tomita of Goldman Sachs. Vitor, please go ahead. Your line is open.

Hello, good morning and thanks for taking our questions. Two questions from our side. The first one is also on the Puerto Rico integration. If you could give us a bit more color on how on how the decision was taken and why now the decision to extend the time frame for Puerto Rico. In particular, if anything came up that you did not expect during the course of the integration and on how comfortable you are with completing the integration under the new time frame? And our second question would be also on Puerto Rico, if you could give us an update on the competitive scenario, specifically for mobile and on how you have been navigating it in terms of offerings and promotions since I recall, this was a major topic in of the previous conference calls and was still a bit of a difficult competitive environment.

Sure. Thanks for those questions. So the decision to expand the migration was -- we made that decision in the September time frame -- August, September time frame. And at that point, we were still hoping that we could close some of it. And let me give you a little bit of color to this migration. The migration is made up of multiple migrations. So we have windows between us and AT&T where each window -- and the window is a day where we can actually push subscribers through. So it's really kind of like if you think of a regular basis, a put out. So it would be a port out from AT&T and a port into ourselves. So that's kind of like the migration. And we were anticipating to do about 10,000 a day in that migration in each window. And over the period, we've discovered two things. One, there was a whole bunch of folks that we would want to migrate. We decided not to migrate because of the handset issues. These guys some were not on the right releases. And even with the iPhones, not just the Android, we have a feature of voice over Wi-Fi when you get to your room into your house, you go to over Wi-Fi. That specific feature on our stack required a software release of like 16.5 and above. And a lot of iPhones, a lot of users have not migrated to that software release. So as we learn all of these things, we said, okay, do we optimize for our customer, just ran everything through or do we optimize for the experience of our customers. And we said, let's optimize the experience of the customers, not only because we're such good guys or anything. But if it's a terrible…

Thank you, Vitor. Our next question go to Cesar Medina of Morgan Stanley. Cesar, please go ahead. Your line is open.

Thank you. The first question is regarding your guidance. You mentioned that there is now a little bit more variability on that on that target. Can you please maybe quantify what is the magnitude of potential viability and the direction of it over lever? And then second, regarding Panama, several moving parts in the sense that you have a very positive uplift for B2B. Is that sustainable? And then there is process in the country, plus the freight of the terror digital on that country.

Sure. I'll answer these questions, and then I'm going to ask Chris to jump in as well when I'm done. On the guidance, as Chris pointed out, there's two things. One, this whole migration thing. We may end up spending more on handsets. We're going to be very flexible on it. Right now, the reason we're not changing guidance, we think we're going to hit it. But there is a few things and we thought we are at like just keep everybody a heads up. One, the equipment and two, as Chris highlighted, in Panama, we have a very large B2B customer that at the end, a lot of the bills gets paid in the month of November and December. And we see light at the end of the tunnel, but we thought maybe we should highlight that. If that doesn't come in, it will come in, in January. It's just a timing issue. And Chris will give you more color on that. In Panama, the business itself, the B2B business, that's where a lot of the growth, a B2B business, there’s about two-third monthly recurring and one-third non-recurring revenue. And a lot of the non-recurring revenue comes in, in the third and fourth quarter. A lot of government contracts, large enterprise contracts, and we closed those deals usually in the second-half of the year and then we write it the following year. And every year, it's kind of like the same cadence that way. And -- but we feel fairly confident. It's about a $300 million business to B2B. I don't know if we break that segment, I'll tell you, it's about a $300 million B2B business. It's about $100 million of NRR and our sales team there led by actually one of our best salesperson. And we -- that team delivers every year. So I'm not that worried about the variability of that business on the B2B segment. On the protest, it is what it is in Panama. It has impacted us a bit. Our shops have been -- one of our key shops are because a number of other shops to foot traffic have dropped quite a bit. And as you know, in these regions, a lot of our sales happens at the retail level, and it happens at the door-to-door level as well. So a lot of these protests have kind of ramp in a little bit. But I did check on our sales. We go through our sales numbers every week. And sales -- while it slowed down our backlog installs have been increasing. So as soon as this process is done, the installs gets out there and we should recover. So it's a temporary blip with the protest. I don't expect much of much of a hit to us financially. With that, I'll pass to Chris.

Yes. Maybe just a little bit of color as the potential headwind we would see, in particular around the delay in the migration, there's kind of two key points. One is the inventory since we have both our new stack, which is getting up and running and then we have the AT&T platform. We basically have double handset inventory than one would normally carry going into the holiday season. And then second, we have obviously monthly TSA costs and additional costs related to the migration. I mean, I would say just conceptually, the headwind around that would be greater than sort of $30 million on the free cash flow side. But we are working hard driving our businesses across the group to continue to produce and strive to meet our target that we had given at the start of the year.

Thanks, Chris.

Thank you. Very careful, [Indiscernible]. Sorry we've missed that.

Thank you. Our next question goes to Soomit Datta of New Street Research. Soomit, please go ahead. Your line is open.

Hi, Balan and Chris. Thanks for the call. Yes, a couple, please. And then also, I don't think we got an answer on the Puerto Rico mobile competition. I'd be interested if you could set back on that. So I mean, that was a previous question. But just first of all, on -- just thinking about free cash flow, looking into next year, I think, Balan, you mentioned the 70 million of synergies in Puerto Rico is still intact. But as we look forward, should we think about those synergies layering in from here as well as some of the kind of extra costs we've seen at the moment falling away? So is the uplift kind of 70 million plus a little bit more? And then secondly, as well kind of looping into the same theme, how much of the synergies are now coming through in Panama? So how much more can we think about coming in from that market as well. Just trying to get a feel for what sort of cash flow uplift we can think about on a run rate basis once this integration process is completed, please? That's the first question. I'll maybe come back in a second.

Sure. I'll come back to the PR mobile. But on the free cash flow, I don't anticipate us changing our synergy guidance on Costa Rico. It would be about $70 million annualized. Clearly, next year because of the bleed in cost will probably not to the full $70 million next year. In Panama, the incremental synergies is not that significant anymore going forward. So you'll see the synergies that we've captured a lot this year. And next year, there's an incremental -- I'm going to try the number like $5 million or so, probably that won't exceed $10 million next year, over and above what we've captured this year. That's the number in the top my head from my last reviews. On Puerto Rico Mobile?

Yes, that was a question.

So we actually feel pretty good about it. We spent -- there's 2 things that happened there. At the end of last year, when T-Mobile really went aggressive on their subsidies. I mean, they were offering iPhone 14 to AirPods being $600 million to -- sorry, $600 buyout contract. We have matched it through the end of last year -- and of course, Chris and I were not very happy with the free cash flow implications of matching that. So in the first-half of this year, we kind of slowed down the subsidies. And subsequently, you can see that our net assets plan. It gets us the right flat is slightly south, but kind of noise. So you can say it's just flat. And then what happened in the second half of this year is we did a number of changes in our executive team in Puerto Rico on the product side. And so we've been looking at it through a new lens. And with the iPhone 15, we've come back into the subsidy game quite aggressively both on the iPhones as well as non-Apple devices as well. And my sense is, next year, you're going to see postpaid do better. You're going to see prepaid do better as well. We just launched a new prepaid promotion that I think will capture attention. It's a four by 20 plan, and you get four lines, $20 each. It's very aggressive. And the reason we couldn't do some of these things before is we didn't have our IT stack. So I did indicate earlier that in January, we'll have our own postpaid, where we will exclusively sell on our own postpaid stack, but on the prepaid side, we stood that up already. So as of last week, we can just do whatever promotions we want. And so we're going to get aggressive in the prepaid. And as you look at our mobile business and the number -- and the lines that we've lost, most of it is on the prepaid side. So this will now short the prepaid with the Boost transaction with DISH, which we should call sometime next year. That will give us more channels on the prepaid. So we feel like the prepaid will get back to a good place. And then on the postpaid side, we're back in the subsidy gain. The returns are actually quite good on that. We've kind of stretched it in a way that I think works really well for us. So we'll get back into the Catcher business. And you should look at us in '24 and '25 after we have our own stack running on our own network that we will be the attacker in Puerto Rico. And that's our mobile play going forward.

Just a quick follow-up as -- just on the tower deal, that's a great deal, which has just been announced. Could you give any -- you said it was a great free cash flow multiple. Any kind of steer as to what the multiple will be? What sort of free cash flow will kind of fall out as a result of that transaction. And I just wondered, are there more towers to come? Or is there potentially sort of other infrastructure you're looking to monetize at this time as well?

I'll answer the last question first. No, we're not looking at any other infrastructure to monetize at this point. Of course, you know we will be very opportunistic. But that's not what we're looking at. This -- our deal is we kind of like bundled up a lot of the towers that we thought we should put in the days and any more towers, what we thought we should transact. We've included in this whole cohort. And we feel really good about it. I'm glad you asked the question because the press release went out right before the call. Literally, we were closing the final points on the deal until like 5:00 this morning, 5:30, and then about 6:00 still getting some governance issues resolved. And that's why it was very late on the press release coming out. But we are really excited to hear about it. You asked about the multiple. We agreed with the -- sorry, with the buyer that we wouldn't talk too much about the multiples. But you can imagine, it's highly accretive. It's very, very happy with it. The headline price is that the EBITDA -- Chris, John, can I talk about the EBITDA numbers, no. Okay, just check in my general counsel, yes, we probably won't say the EBITDA hit on it, but you can clearly imagine it's not that significant.

Great. Okay, thank you.

Yes, we're excited about it, Soomit. That power deal is a good one.

Thank you. And our next question goes to Matthew Harrigan of Benchmark. Matthew, please go ahead. Your line is open.

Thank you. Speaking of good ones, per megahertz pop price on the second transaction with this seems really good, especially for that quality spectrum. I know it would be a discount to the U.S., but you really -- if you take out the 120,000 mobile customers, you're also getting -- it looks like it was just a really good deal for you. Can you elaborate a little bit more on the pricing and the input for Puerto Rico relative to the -- relative to the States?

Sure. Puerto Rico always straight in the auctions. There's a slight discount against Mainland for a couple of reasons. One, the potential buy is -- they're limited. Two, it's kind of a captive market. And so it's always traded at a slight discount because it's easy to build a lot more towers there as opposed to just relying on spectrum. Now having said that, the team has done a tremendously good job. I think it's a win-win for both us and DISH on that. It's quite accretive for them, accretive for us. It's accretive for them because they don't have to build out in Puerto Rico. We are going to take on the build-out obligations over there in Puerto Rico. And so it saves a lot of CapEx that they can focus in Mainland -- our General Counsel was at the SEC yesterday at the Justice Department and did a tremendous job explaining the rationale for the deal together with the executives from DISH -- and so we feel positive about it. I think it's a good deal for DISH. It's certainly a good one for us as well. It shows two things. One, our confidence in Puerto Rico. And secondly, T-Mobile is the huge longest company, 30 times our size, that we're going to go up head-to-head with them day in, day out. We are all in, in Puerto Rico in mobile.

Great. Thanks, Balan.

Thank you. That will conclude today's question-and-answer session. I'd like to hand back to Balan Nair for any additional or closing remarks.

Thank you, operator. You can clearly see, I'm very happy with the -- with our earnings results for this quarter. And I think the growth that you see here, it's really good. I think fourth quarter is looking pretty good as well. And then next year, as we go to next year, we will go in with a base of OIBDA and revenue that I think we can build nicely on as well. The business is in a good place. I know there will be a lot of concerns about Puerto Rico, and it's a phase. We'll get to the migrations. The network has stood up. It's running really well. The IT stack has stood up. We need to finish the migration. We get off the cost in a year, nobody will remember about the migration and all that. And this is fundamentally a really strong, good business. The fixed network is growing really well. Prepaid business is going to grow. Postpaid business, I think our plans are really good. The spectrum acquisition we just made. The prepaid business we just bought, I think we're going to put in a good place. So between that in a good place, our C&W business operating really well. Panama, onto big and better things. Costa Rica is doing very well. Liberty Networks is doing really well. I think we've got a good franchise here, and I'm really excited about it. So thank you so much for all your support, and have a great day.

Thank you. Ladies and gentlemen, this concludes Liberty Latin America's third quarter 2023 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. Thank you all for joining. You may now disconnect your lines.