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 Steven Price, Country Manager of Jamaica.

Good morning, and welcome to Liberty Latin America's Second Quarter 2023 Investor Call. At this time, all participants are in listen mode only. 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 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 reports 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, Stephen, and welcome, everyone, to Liberty Latin America's second 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 4 and our highlights for the second quarter; we continued our operational momentum with another solid quarter in broadband and mobile postpaid, adding 52,000 subscribers to our base. Another quarter of solid performance in Cable & Wireless, Caribbean, especially Jamaica and in Cable & Wireless Panama. The positive results are driven by our focus on FMC with a 2 percentage point increase in penetration in both Jamaica and Panama in the first half of the year. We are the leading grower in fixed RGUs and one of the top in broadband growth among LatAm and North American operators. We have also made substantial progress with our Giga [ph] initiative. 77% of our home pass are currently gig ready, a 9 percentage point increase versus Q4 '22, and the goal is to reach 80% of the base by the end of this year. We reported adjusted OIBDA of $445 million in the quarter for the group, representing a 4% year-over-year increase. This is underpinned by 1% year-over-year rebased revenue growth, adjusting for the discontinuation of the slightly negative margin transit business as discussed last quarter. Sequentially, our Q2 adjusted OIBDA grew by 10%, reflecting…

Thanks, Balan. I'll now take you through our financial performance in greater detail, starting with our sequential performance on the left-hand side of Slide 11. Sequentially, on a reported basis in U.S. dollars, our revenue grew by 2% and adjusted OIBDA by 10% in the second quarter as compared to Q1 with our Panamanian business feeling the step-up as we have had good operating momentum and integration progress. As we look to improved H2 performance, all of our segments contributed to sequential adjusted OIBDA growth. Moving to year-over-year performance on the right-hand side of the slide. 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 ETR. Additionally, our 2023 results include the results of Claro Panama, but do not include them in Q2 2022 as we began consolidation in last year's Q3. So a number of moving pieces, but overall, a solid performance with stable revenue and 4% rebased growth on adjusted OIBDA. As mentioned last quarter, 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 each of Q3 and Q4 until we start lapping the move next year. Adjusting for this, Q2 '23 revenue would have grown by 1% on a rebased basis year-over-year. For the full year 2023, we continue to target mid- to high single-digit rebased adjusted OIBDA growth for LLA. Slide 12 highlights our segment results. Beginning on the left with C&W Caribbean, we reported $356 million of revenue in Q2, reflecting flat performance and $146 million of adjusted OIBDA, resulting in an 8% rebased growth. Adjusting for…

[Operator Instructions] The first question today comes from Vitor Tomita from Goldman Sachs.

Two questions from our side. The first one is on Puerto Rico. The earnings release cites a reduction in handset subsidy levels that seems to have been a significant factor in results over there. Could you give me some color on that strategic shift on handset subsidies and any drivers for it? And second question would be regarding adjusted free cash flow. If you could give us just a bit more color on seasonality, in particular, when it comes to the working capital seasonality and drivers benefiting Q4.

Thanks for the questions. So the first one on Puerto Rico, and I'll ask Naji to jump in here as well, who runs our operations there. As we got towards the end of last year, there was significant promotional activity on handsets and handset subsidies, mostly in the mainland U.S.A., which kind of bled into Puerto Rico as well. And we've been kind of experimenting with subsidies. In the first half of the year, you can probably see from our numbers that we've kind of reduced the subsidy levels in that promotional activity actually to send demographic and mostly around retention. And now we've looked at the results. We've been playing around with the repeat studying and analyzing it, our plans in the second half of the year is going to be slightly different than the first half of the year as we kind of fine-tune the subsidy levels. But as you can also see from the mainland, the AT&T, Verizon Timo [ph] results for the second quarter, it would seem like the subsidy levels are starting to decline a little bit. You've got to some ridiculous levels towards the end of last year. And so we're going to be more nimble on it. And Naji, maybe if you want to add any more comments to that.

Thank you. The only comment I would add is that part of optimizing the pool of subsidy, we have shifted a lot of the promotion to our higher-end plan and providing less promotion to the lower end. So that strategic move allowed us to be able to manage well the subsidies. But as Joan mentioned, approaching as we enter H2, that dynamic will change before the end of the year, for sure.

Thanks, Naji. And then on the free cash flow, I think, I'll ask Chris to jump in here as well. But usually, in the second half, there's a lot of reversals in the working capital because the first half you like to pay vendors and you've got a lot of costs that hit you in the first half that kind of reverses itself in the second half. Chris, maybe you want to give a little bit more color [ph].

I mean a couple of other factors. Certainly, adjusted OIBDA tends to be fairly strong in the last quarter of the year. Interest expense for us is the lowest in Q2 and Q4. And in addition, a number of our key collections of large accounts also tend to happen later in the year. And I would say the fourth point, kind of Marin what Balan said, CapEx tends to be weighted kind of towards the end of the year. So that rolls into the first part of the year when trade working capital in one. So those would be the factors. But if you look back over the years, Q4 for us has been really the sort of the cash generative quarter for several years.

Thanks, Chris.

The next question comes from Soomit Datta from New Street Research.

Just a couple from me, please. First of all, on Chile, can you confirm that there has been no cash contributed into the JV this quarter? It doesn't appear that is the case. And so of the recently announced funding round, which I think was around US$600 million. Should we assume nothing is coming from Liberty? And is there anything more broadly we can infer about the future equity ownership of that JV. That would be the first question, please. And then secondly, on Panama, really good profitability, as you highlighted. How much of that was, if you like, synergy in the context of the $70 million guidance, which we've got for that market on a full run rate basis. How much have we seen so far? Is that running ahead of expectations? And how much more can we see come through in the second half of this year?

Soomit, thanks. In Chile, we -- as to be disclosing, we can't confirm that we did not put any cash in it. And you can see from the other reporting that we did, it's mostly -- most of the contributions in the format you can say, convent at some point later, we will be sitting down with our partners on that. But the equity ownership of that business remains 50-50, and we are quite involved in that business. On the Panama part, if you look at some of the savings this year or what we just reported, synergies played a big role in it, but it's not more than like 55%, 60%, and the rest of it is from efficiencies that came out that we worked really hard on, and that's where the margin expansion came from. But synergies will contribute to it and they'll continue to contribute 2024 synergies become even larger. As we finish the store closures, full network migration, we're actually doing a customer migration in the next 10 days or so. And so a lot more activity is happening, and we've got a lot more to harvest there. But one of the good news in that expansion in margins is really also really good work by our operating teams on the ground.

Okay, great. So it sounds like there's sort of incremental savings ahead of the guided to synergies?

Yes.

The next question comes from Andres Coello from Scotiabank.

Just a follow-up on the question on Chile. So what I understood from the press release is that between you and America [ph], there will be a €600 million cash injection in Chile and that [indiscernible] will pay 50% of that. So is there something different to that? Or is it like contributing €200 million to EPR?

So the contribution is from the other release, the €600 million additional that's been put into the business. And I think if you look at our numbers that is just published, you can probably come to the conclusion that we did not put our share in it. And I think the way to look at it is that this contribution is not an equity contribution but a debt piece of paper. And so that gives everybody a chance to take a look at the business, study it, understand it, contribute to it, both especially on the operating side. And I suspect in the next couple of years, we'll be more definitive on ratings.

[Operator Instructions] The next question comes from Matthew Harrigan from Benchmark.

I think my Chile questions were answered. But your sister company over in Europe has created about $3 billion plus of value on the venture side. I know Latin America is not exactly a hot bed for new venture activity and you prefer to invest in things that weren't incubated in-house. But nonetheless, is there some potential there. I know it loves is one of the top PCs in Mexico. I think they're number 3 or number 4. And clearly, you have a lot of infrastructure that various TMT initiatives to benefit from -- and I know it's small, but I thought it was an interesting point in advance.

Sure. You -- let me see if I answer this in a way that makes sense. We have made a couple of very small venture investments, mostly to support start-ups that could be beneficial to us. So we made investments in alternative energy, made investments in fixed wireless access and -- but they're relatively small. It's not a core part of our story or is this a growth driver for us. It's really where we think there's interesting technologies that can be used in our region, and we need to support them and notate and provide some funding for them to finish the development, we would consider that. But we don't look at this as a separate business unit, a growth driver. Our business is in communications. It is in fixed broadband, it is in mobile, and we're going to try to stay very close to what we are really good at.

And needless to say, content is probably the last bucket you'd invest in because that really would be a considerable departure for leveraging your existing infrastructure, I assume?

I think that would be a very, very good assumption.

Okay. Appreciate it.

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

Thank you, operator, and thanks, everybody, for taking the time this morning on our call. You can see we are making progress. And I suspect, as you look at over the last few years and the top therapy of neighbourhood, I think we have a good path here now. And the second half should be even more exciting than the first half. So thank you so much for your support. Have a great day.

Ladies and gentlemen, this concludes Liberty Latin America's second 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. You may now disconnect your lines.