Good morning, ladies and gentlemen, and thank you for standing by. Today's call is being recorded. I'll now turn the call over to Jenny Chen, VP of Controls Transformation of Liberty Latin America.

Good morning, and welcome to the Liberty Latin America's Third Quarter 2025 Investor Call. [Operator Instructions] 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, instruction will be given for a question-and-answer session. As a reminder, this call is being recorded. Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook and future growth prospects, and other information and statements that are not historic facts. Actual results 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 recent filed annual report on Form 10-K 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 expectation or in the condition on which any such statement or information is based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to the 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, Jenny, and welcome, everyone, to Liberty Latin America's Third Quarter 2025 Results Presentation. I will be running through our group highlights and an overview of our operating results by Credit Silo before Chris Noyes, our CFO, reviews the company's financial performance. We'll then get straight to your questions. But before we get into the details, let me start by taking a moment to recognize the hardship of our employees, customers, partners, communities, governments who bore the brunt of Hurricane Melissa in the Caribbean, especially in Jamaica. Their resilience is nothing short of amazing. Our commitment to this region is strong, and we will help with the recovery through our humanitarian and infrastructure rebuild. I will cover this in more detail in my commentary on Liberty Caribbean. As always, I'm joined by my executive team from across our operations, and I will invite them to contribute as needed during the Q&A following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com. Starting on Slide 4 and our highlights. Our core business performed very well in Q3. We added over 100,000 postpaid net adds across the group, notably driven by Costa Rica and supported by fixed mobile convergence efforts and continuing prepaid to postpaid migration. This was the strongest quarter of postpaid additions across the group in 3 years. We reported $1.1 billion of revenue in Q3. This represented a return to year-over-year growth driven by better trends in B2B as we had anticipated. This, in turn, came about through a combination of better momentum on enterprise and government-related contracts as well as the easing of tough year-over-year comps on B2B, which we faced in the first half of the year. Residential revenue grew year-over-year…

Thanks, Bal. I'll now take you through our Q3 financial results, starting on Slide 14. We posted revenue of $1.1 billion and adjusted OIBDA of $433 million, reflecting rebased growth of 1% for revenue and 7% for adjusted OIBDA year-over-year. All of our operating businesses reported year-over-year rebased growth on both revenue and adjusted OIBDA with the exception of a decline in revenue at Liberty Puerto Rico. Sequentially, as compared to Q2, LLA's reported revenue increased 2% and adjusted OIBDA increased 4%, a solid uplift, which sets momentum into Q4. Reflecting both lower capital intensity with P&E additions at 13% of revenue in Q3 and continued adjusted OIBDA expansion, LLA posted adjusted OIBDA less P&E additions of $284 million in Q3, a 22% improvement year-over-year. Although we were up year-over-year on adjusted OIBDA less P&E additions, our reported adjusted FCF before partner distributions was $16 million in Q3, a decline year-over-year. Our cash flow performance in Q3 continues to be challenged on collections, principally from our government customers, some of which we anticipate to receive in Q4. In addition, our prior year quarter benefited by approximately $90 million due to the positive impact of handset monetization during the quarter and the proceeds from the Hurricane Barrel weather derivative payout. As mentioned previously and consistent with prior years, we expect robust free cash flow performance in Q4, even with the impact from Hurricane Melissa, which should be mitigated in part by proceeds from our parametric insurance program. Slide 15 recaps our Q3 results for the C&W credit silo, which consists of Liberty Caribbean, CWP and Liberty Networks. Starting with Liberty Caribbean. In Q3, we reported $369 million in revenue with 3% growth year-over-year on a rebased basis. This result reflects year-over-year rebased growth of 5% in residential fixed, while both residential…

[Operator Instructions] Our first question today comes from Milena Okamura of Goldman Sachs.

The first one is on timing and progress of your cost-cutting initiatives. Are they expected to be mostly done by Q4, benefiting 2026 as well? Or is it more gradual process throughout the next year? And are there any specific regions or cost lines where you expect this to be particularly relevant? And the third question, sorry, is if you could give us more color on margin drivers for Liberty Networks. You mentioned a bad debt reduction, but was that the main driver for the margin expansion? Or there were other factors that supported?

Thank you for the question. So let me talk about our cost cutting. We embarked on this about literally about 20 months ago, and we're starting to see the benefits now certainly this year. And we anticipate it to follow through in 2026 as well. Our cost cutting continues through the end of this year and into the first half of next year as well. And there's a number of things that we look at. Clearly, cost of goods sold, the way we do COGS, there's a number of line items in there that we focused on. We also focused on other OpEx costs, including the tower leases. And of course, we also focused on labor. Where it makes sense, we've taken a very sharp look at the labor in our business. So my sense is that in 2026, there will be more opportunities in especially in the first half. But you see us also focus on revenue, and that's the other part of where we look at our margin expansion. Now on Liberty Networks margin drivers, there's a number of things that drove some of the margin expansion as we get off a lot of our IRUs acceleration, there's a lot of work that we've been doing. Bad debt has improved, as you pointed out. And

Apologies, ladies and gentlemen, we have lost connection to the management team's line. Please be on pause till we resumed the call. Thank you. Please proceed.

I'm sorry, I think we lost our connection. I'm not sure at what point or where we dropped. Do you know where we dropped?

You are at Liberty Networks, Balan. Liberty Networks, I would do again.

Okay. Yes, on the Liberty Networks, I think we were talking about margins on both sides in the OCF and OFCF level. And at an OCF level, as you pointed out that that has improved. There's a lot of things that we've done there, and we've also gone more and more to our monthly recurring revenue, taken off a lot of our -- coming to an end a lot of our IOU acceleration. And then, of course, at an OFCF level, our expenditure on project Manta is starting to grow. And the numbers are where we like it to be. We remain very bullish on this segment.

Our next question of today comes from Ernesto Gonzalez of Morgan Stanley.

So it's 2 from our end. The first one is on Puerto Rico. Could you please talk about room for additional margin expansion in the unit? And also on your cash uses outside of Puerto Rico, any details that you can share on priorities across deleveraging, buybacks, dividends and also any details on timing are greatly appreciated.

Okay. On the first part, you'll continue to see margin expansion in Puerto Rico as we continue to recover the business. This year, our focus in Puerto Rico has been on the cost side, a significant focus on both the OpEx line, CapEx line, cost of goods line. Every single line item in that business was scrutinized, and we are running it, I think, very, very efficiently. The second stage of our margin expansion there comes from revenue growth. And you can start seeing already the numbers are coming in, even though we didn't post a revenue growth number this quarter. I anticipate next year, we'll start to see some positive uptick from a lot of the hard work that's going in this year. Systems have improved. Our processes have improved. Our store process have improved. Our sales teams productivity has improved. In addition to that, we've started the launch of our FMC. And there are questions as to why have we waited so long for FMC. Well, there were a lot of things that we had to do to fix, especially on our IT systems. We continue to have 2 different billing systems on fixed and mobile, but we had to do a lot of work on the mobile side. And now we're able to completely link it. This is our lowest FMC penetration in all of LLA, and we see some really bright future. And in addition to that, our channels are also improving, and we've got lower cost channels coming in, in 2026 as we embark on more digital sales. So there's a lot of really positive things that will happen to improve the margins. Now your second question, I think you were talking about our cash position in LLA in general outside of Puerto Rico. I didn't quite catch your question.

Sorry, it was on your uses of cash. So what do you expect to do across using the cash you're generating or you will generate for deleveraging buybacks, dividends and also any details on timing?

Okay. Great question. Well, of course, our capital allocation strategy, we revisit it constantly. You'll see a lot of our cash generation comes in towards the back end of the year in the fourth quarter. As Chris pointed out, we are very confident on our fourth quarter cash generation. And together with our Board, we will determine the traditional ways of looking at our capital allocation, whether it's stock buyback, paying down our debt or even considering issuing a dividend. Everything is on the table as we look at the deployment of that cash.

Our next question comes from David Lopez of New Street Research.

A couple of questions, please. On Puerto Rico on the fixed business, I was wondering if you can comment on competition. I think you mentioned a bit more competition this quarter. Is it coming from traditional cable or fibre? Or is it fixed wireless access who is getting more traction? And the second question is on Jamaica. I don't know if you can maybe tell us what's the proportion of the network that needs to be rebuilt and the proportion of the network that needs to be repaired. And if you can give a bit more color on the deal with Starlink that you mentioned in the press release.

Okay. I'll start with the Puerto Rico part. Our fixed business there last year -- sorry, last year. This year, earlier this year, we took a price increase, and we saw churn bump up post the price increase. And in addition to that, of course, competitive pressures have increased in Puerto Rico. Our sense is that for the most part, our churn, by the way, still remains quite low, but the churn that we're seeing, we are mostly going to other fixed operators. They're not going to fixed wireless. That's where the churn -- our product is actually very competitive, both from a price standpoint. And from a speed standpoint, we are actually doing really well. And here's why we're excited about our fixed business going forward. We've launched a number of new products there. We've revised our pricing, like I said, with our FMC bundle, but we've also launched a couple of new products. One of it is our always-on product, we call it Kepon in Puerto Rico. And that was one of our disadvantage beginning of this year with a lot of power outages in Puerto Rico, where a competitor with fibre would probably not experience the outage if they have generators at home. Yet in the HFC plant, you would see an outage. But with this new Kepon product, the customer doesn't miss a beat at all. And we're quite excited about that. In addition to it, we've also improved our Wi-Fi in the home with a software upgrade that now makes us really one of, if not the best Wi-Fi in the home. So we feel really good between our FMC, our new products, our always-on product, and high reliability, and that's why we've also launched a 30-day moneyback guarantee to customers -- new customers that…

Our next question comes from Matthew Harrigan of the Benchmark Company.

We all know it's dangerous to draw inferences from the U.S. mobile market. Looking at your markets, people can't run out and buy an iPhone 17 Pro on a whim and conversely, favorably, you have a lot more penetration upside, particularly on postpaid. But 2 things in the U.S. market. T-Mobile is really doing well because they have such a high switching share because they have a better network. And in fact, if you run the numbers, the whole industry can slow down a lot and they can still grow nicely on account of the superior switching share. And then the cable operators, of course, have FMC advantages with the MVNO that they have with Verizon. And you arguably could be positioned for both of that as you get these good postpaid numbers in the Caribbean markets in particular. But would you say that's a factor? Would you say that even though people aren't buying the highest price point phones that there's some device innovation that's a factor because clearly, you're putting up really nice postpaid numbers. And then on the parametric insurance, because Melissa just had those record wind speeds and all that, and I know it's very precise and exactly where the speeds were recorded and all that, but it feels like you could get quite a disparity between the damage incurred and the payout. And it also feels like the insurance companies have to constantly appraise their approach in doing that because it feels like you could get some quirky results, bad and good for you or the insurance companies, depending where you get the wind speeds and where you get the actual damage because I'm sure you know at this point how fickle damage and both for life and property can be from a hurricane. Thanks and congratulations on the progress. And I'm very sorry in Jamaica. I've been there a number of times, a beautiful country.

Matthew, thanks for your comments. I agree with the first part of your comment that as we get more and more postpaid, there is a lot of stability in that revenue. And that's why we've been focusing a lot on that, and you get out of a lot of the washing machine of the prepaid business, even though we do love the prepaid business as well. And in most of our markets, you'll see our COGS is not as high because it's not an equipment-driven market. So it's really a great business for us on postpaid. On insurance, I'm going to let Chris comment, but I'll tell you, Chris and his team did a tremendous job. This is -- there's some luck involved clearly because of the path of the hurricane. But the way the hurricane parametric insurance was designed with the concentric rings, it was very thoughtful. And in this case, the path of the hurricane triggered the Westside ring and it triggered one of the other layers of the concentric rings from Kingston as well. We feel really good about this. And one of the great things that Chris did as well is that the payout is quick. So the NPV on this insurance is really good. But I'll ask Chris to give you a bit more color.

Yes. Nice to hear from you, Matt. I mean I think as we look at the parametric, I mean, it's highly, highly analytical and studied over hundreds of years of storms, and we focus on where the value in our business resides so that it is protected. So if it does go over an urban center that there is a recovery to help mitigate the damage on both BI and property. But it's always evolving each year. We continue to get smarter on trying to figure out the best ways to protect risk for our business. And we have a decade plus of knowledge here of continuing to evolve this particular parametric program.

Thank you. We have no further questions. So that will conclude today's question-and-answer session. I'd like to hand the call back over to Balan Nair for any additional or closing remarks.

Thank you, operator, and thank you, everybody, on the call for your support. We are very pleased with our results this quarter, and we see it continuing in this trend. All our initiatives are kicking in. And as you can see, it's starting to yield very nicely. We feel the future is really bright here in LLA. Thank you very much again for your support.

Ladies and gentlemen, this concludes Liberty Latin America's Third Quarter 2025 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, where you can also find a copy of today's presentation materials.