Sequential financial and operating improvement from Q2
Net RGU additions driven by record C&W and Puerto Rico performance
Operating income growth and Adj. OIBDA returning towards pre-COVID levels
Completed acquisition of AT&T’s Puerto Rico and USVI assets
DENVER, Colorado–(BUSINESS WIRE)–Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q3”) and nine months (“YTD”) ended September 30, 2020.
CEO Balan Nair commented, “Following a challenging second quarter, we delivered improved financial and operating performance in Q3, as the majority of our markets began to recover from the impacts of COVID-19.”
“We saw strong demand for our high-speed broadband-led propositions and achieved record quarterly fixed RGU additions in each of C&W and Puerto Rico, with over 100,000 new subscribers across both reporting segments. Our C&W markets also swung back to mobile subscriber growth following declines during Q2, and we will build on this momentum through the rest of the year. In Chile, we were impacted by severe lockdown restrictions and VTR experienced greater churn with net subscriber losses in the period although proactive operational actions led to improvements each month from July, which was our most challenging month.”
“Our financial performance also recovered in Q3 with sequential revenue growth of 5%. Growth was achieved across all reporting segments, including mobile and B2B products within C&W, and we anticipate our markets will continue to recover over time. In addition, the early actions we took to manage our cost base led to operating income growth and Adjusted OIBDA returning towards Q1 2020 pre-COVID levels.”
“We see a compelling opportunity to drive stakeholder value through our disciplined inorganic growth strategy and we are pleased that we completed the acquisition of AT&T’s assets in Puerto Rico and the USVI. We believe that the combination of these assets with our high-performing Puerto Rico operations, will create a leading integrated communications player capable of providing enhanced value to customers, generating significant synergies, and bolstering LLA’s adjusted free cash flow.”
“During the quarter, as part of the funding for our agreed acquisition of Telefonica’s Costa Rica assets, we also successfully completed our $350 million rights offering. Our balance sheet remains robust with extended maturities and significant available liquidity through cash and undrawn facilities.”
“As we approach the year-end, we are excited to begin the work of integrating our newly acquired assets in Puerto Rico and USVI, and we continue to focus on generating positive adjusted free cash flow in 2020 despite the impacts of COVID-19. Looking further ahead, we continue to invest in expanding our high-speed network footprint, building or upgrading over 230,000 homes year-to-date, and investing in innovative products and services to establish a foundation for further operational and financial growth in future years.”
Business Highlights
-
C&W operational recovery from Q2 as COVID-19 restrictions eased; Adj. OIBDA margin higher:
- Record additions of 66,000 RGUs and return to mobile net additions
- Sequential revenue growth and Adjusted OIBDA margin up by 140 bps to 40.9%
- New build / upgrade activity added over 45,000 homes, mainly in Panama and Jamaica
-
VTR/Cabletica performance impacted by COVID-19 in Chile:
- Network challenges and competition drove VTR RGU losses
- COVID-19 impact and FX impacts on USD based costs
- Added over 25,000 homes through new build activity
-
Liberty Puerto Rico delivered another record quarter:
- Highest ever quarterly RGU additions of 43,000 driven by broadband demand
- Q3 revenue growth of 10% and Adjusted OIBDA up 14%
- New build / upgrade activity added ~5,000 homes
Financial and Operating Highlights
|
Financial Highlights |
|
Q3 2020 |
|
Q3 2019 |
|
YoY |
|
YoY Rebase |
|
YTD 2020 |
|
YTD 2019 |
|
YoY |
|
YoY Rebase |
||||||||||||||||
|
(USD in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Revenue |
|
$ |
888 |
|
|
|
$ |
967 |
|
|
|
(8.2 |
%) |
|
(3.6 |
%) |
|
$ |
2,667 |
|
|
|
$ |
2,892 |
|
|
|
(7.8 |
%) |
|
(3.2 |
%) |
|
Adjusted OIBDA2 |
|
$ |
360 |
|
|
|
$ |
380 |
|
|
|
(5.1 |
%) |
|
(0.7 |
%) |
|
$ |
1,057 |
|
|
|
$ |
1,133 |
|
|
|
(6.7 |
%) |
|
(1.6 |
%) |
|
Operating income (loss) |
|
$ |
87 |
|
|
|
$ |
(70 |
) |
|
|
N.M. |
|
|
|
$ |
(12 |
) |
|
|
$ |
187 |
|
|
|
N.M. |
|
|
||||
|
Property & equipment additions |
|
$ |
157 |
|
|
|
$ |
187 |
|
|
|
(16.1 |
%) |
|
|
|
$ |
443 |
|
|
|
$ |
492 |
|
|
|
(10.0 |
%) |
|
|
||
|
As a percentage of revenue |
|
18 |
|
% |
|
19 |
|
% |
|
|
|
|
|
17 |
|
% |
|
17 |
|
% |
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Adjusted FCF3 |
|
$ |
(22 |
) |
|
|
$ |
4 |
|
|
|
|
|
|
|
$ |
59 |
|
|
|
$ |
120 |
|
|
|
|
|
|
||||
|
Cash provided by operating activities |
|
$ |
137 |
|
|
|
$ |
159 |
|
|
|
|
|
|
|
$ |
491 |
|
|
|
$ |
590 |
|
|
|
|
|
|
||||
|
Cash used by investing activities |
|
$ |
(156 |
) |
|
|
$ |
(136 |
) |
|
|
|
|
|
|
$ |
(419 |
) |
|
|
$ |
(557 |
) |
|
|
|
|
|
||||
|
Cash provided (used) by financing activities |
|
$ |
(123 |
) |
|
|
$ |
30 |
|
|
|
|
|
|
|
$ |
465 |
|
|
|
$ |
350 |
|
|
|
|
|
|
||||
|
Operating Highlights4 |
|
Q3 2020 |
|
Q3 2019 |
|
YoY |
|
YoY FX Neutral |
|||||||
|
Total Customers |
|
3,201,700 |
|
|
|
3,130,500 |
|
|
2.3 |
% |
|
|
|||
|
Organic customer adds |
|
3,200 |
|
|
|
26,000 |
|
|
|
|
|
||||
|
Total RGUs |
|
6,144,200 |
|
|
|
5,993,800 |
|
|
2.5 |
% |
|
|
|||
|
Organic RGU adds/(losses) |
|
34,500 |
|
|
|
67,300 |
|
|
|
|
|
||||
|
Broadband |
|
32,500 |
|
|
|
41,600 |
|
|
|
|
|
||||
|
Video |
|
(7,800 |
) |
|
|
19,200 |
|
|
|
|
|
||||
|
Telephony |
|
9,800 |
|
|
|
6,500 |
|
|
|
|
|
||||
|
Mobile subscribers |
|
3,378,500 |
|
|
|
3,682,100 |
|
|
(8.2 |
%) |
|
|
|||
|
Organic mobile adds |
|
68,800 |
|
|
|
12,500 |
|
|
|
|
|
||||
|
Fixed ARPU |
|
$ |
47.24 |
|
|
|
$ |
50.30 |
|
|
(6.1 |
%) |
|
(1.5 |
%) |
|
Mobile ARPU |
|
$ |
12.41 |
|
|
|
$ |
13.16 |
|
|
(5.7 |
%) |
|
(3.2 |
%) |
*N.M. – Not Meaningful.
Revenue Highlights
The following table presents (i) revenue of each of our reportable segments for the comparative periods and (ii) the percentage change from period-to-period on both a reported and rebased basis:
|
|
Three months ended |
|
Increase/(decrease) |
|
Nine months ended |
|
Increase/(decrease) |
||||||||||||||||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
% |
|
Rebased % |
|
2020 |
|
|
2019 |
|
|
% |
|
Rebased % |
||||||||||||||||
|
|
in millions, except % amounts |
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
C&W |
$ |
538.9 |
|
|
|
$ |
595.9 |
|
|
|
(9.6 |
) |
|
|
(6.0 |
) |
|
|
$ |
1,642.8 |
|
|
|
$ |
1,772.3 |
|
|
|
(7.3 |
) |
|
|
(5.3 |
) |
|
|
VTR/Cabletica |
236.9 |
|
|
|
268.4 |
|
|
|
(11.7 |
) |
|
|
(3.3 |
) |
|
|
704.7 |
|
|
|
819.4 |
|
|
|
(14.0 |
) |
|
|
(1.7 |
) |
|
||||
|
Liberty Puerto Rico |
114.4 |
|
|
|
104.3 |
|
|
|
9.7 |
|
|
|
9.7 |
|
|
|
328.1 |
|
|
|
306.7 |
|
|
|
7.0 |
|
|
|
6.1 |
|
|
||||
|
Intersegment eliminations |
(2.7 |
) |
|
|
(1.8 |
) |
|
|
N.M. |
|
N.M. |
|
(8.2 |
) |
|
|
(6.0 |
) |
|
|
N.M. |
|
N.M. |
||||||||||||
|
Total |
$ |
887.5 |
|
|
|
$ |
966.8 |
|
|
|
(8.2 |
) |
|
|
(3.6 |
) |
|
|
$ |
2,667.4 |
|
|
|
$ |
2,892.4 |
|
|
|
(7.8 |
) |
|
|
(3.2 |
) |
|
N.M. – Not Meaningful.
-
Our reported revenue for each of the three and nine months ended September 30, 2020 decreased by 8%.
- Reported revenue decline in Q3 was largely driven by (1) negative impacts from COVID-19, particularly in C&W, (2) a net negative foreign exchange (“FX”) impact of $32 million, primarily related to a 10% appreciation of the U.S. dollar in relation to the Chilean peso, and (3) a $15 million reduction from the disposal of C&W’s Seychelles business in the fourth quarter of 2019. These declines were partially offset by organic growth in Liberty Puerto Rico.
- Reported revenue decline YTD was primarily driven by (1) a net negative FX impact of $126 million, primarily related to a 17% appreciation of the U.S. dollar in relation to the Chilean peso, and (2) negative impacts from COVID-19, particularly in C&W. These declines were partially offset by organic growth in Liberty Puerto Rico.
Q3 2020 Revenue Growth – Segment Highlights
-
C&W: Revenue declined on a reported and rebased basis by 10% and 6%, respectively. The higher reported decline was primarily driven by inclusion of our now divested C&W Seychelles business in the prior-year period and adverse currency movements.
-
B2B revenue declined 8% on a reported basis and 4% on a rebased basis, as compared to the prior-year period. The rebased decline was primarily due to lower revenues from fixed and mobile services mostly due to discounts and credits related to reduced or suspended service across our markets as a result of the COVID-19 lockdowns and a strategic decision to reduce low margin transit revenue.
- On a sequential basis, we grew reported revenue by 6%. This was driven by the return of certain non-recurring projects that had been put on hold due to COVID-19, and a reduction in discounts and credits offered to customers as markets began to recover.
-
Fixed residential revenue was down 4% on a reported basis and 1% lower on a rebased basis, as compared to the prior-year period. Revenue declined overall on a rebased basis as subscription revenue growth, driven by organic RGU additions, were more than offset by a decline in non-subscription revenue due to lower interconnect volumes.
- Fixed revenue was flat sequentially on a reported basis. Subscription revenue declined as ARPU was lower primarily due to temporary discounts in Panama related to COVID-19 and adverse currency movements in the Jamaican dollar. This was offset by growth in non-subscription revenue.
-
Mobile revenue declined 18% on a reported basis and 14% on a rebased basis, as compared to the prior-year period. Subscription revenue was impacted by reduced recharge activity and fewer subscribers during the COVID-19 related lockdown periods. Inbound roaming revenue declined by $6 million year-over-year, with the largest impact in the Bahamas due to a reduction in tourism as a result of COVID-19.
- On a sequential basis, reported mobile revenue grew by 7% driven by higher ARPU as prepaid recharges increased with easing of lockdown restrictions.
-
B2B revenue declined 8% on a reported basis and 4% on a rebased basis, as compared to the prior-year period. The rebased decline was primarily due to lower revenues from fixed and mobile services mostly due to discounts and credits related to reduced or suspended service across our markets as a result of the COVID-19 lockdowns and a strategic decision to reduce low margin transit revenue.
- VTR/Cabletica: Revenue declined on a reported and rebased basis by 12% and 3%, respectively. The higher reported year-over-year decline was driven by a 10% appreciation of the U.S. dollar in relation to the Chilean peso. Rebased revenue at VTR declined due to lower ARPU associated with the cancellation of live soccer matches broadcast on our premium programming, which were only partly offset by higher broadband revenue. Cabletica grew revenue on both a reported and rebased basis driven by subscriber growth over the year.
- Liberty Puerto Rico: Reported and rebased revenue growth of 10% was driven by strong subscriber growth as we added approximately 100,000 RGUs over the last twelve months, including over 60,000 new broadband RGUs.
Operating Income (Loss)
-
Operating income (loss) was $87 million and ($70 million) for the three months ended September 30, 2020 and 2019, respectively, and ($12 million) and $187 million for the nine months ended September 30, 2020 and 2019, respectively.
- We reported operating income during the three months ended September 30, 2020, compared with operating loss for the corresponding period during 2019 as the 2019 period was negatively impacted by goodwill impairments. This comparable benefit was slightly offset by a decline in Adjusted OIBDA, as further discussed below.
- We reported operating loss during the nine months ended September 30, 2020, compared with operating income for the corresponding period during 2019, primarily due to (i) higher goodwill impairments recorded during the second quarter of 2020 in certain C&W markets, compared to the comparative period, and (ii) lower Adjusted OIBDA, as further discussed below.
Adjusted OIBDA Highlights
The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the comparative periods and (ii) the percentage change from period-to-period on both a reported and rebased basis:
|
|
Three months ended |
|
Increase (decrease) |
|
Nine months ended |
|
Increase (decrease) |
||||||||||||||||||||||||||||
|
|
September 30, |
|
|
September 30, |
|
||||||||||||||||||||||||||||||
|
|
2020 |
|
|
2019 |
|
|
% |
|
Rebased % |
|
2020 |
|
|
2019 |
|
|
% |
|
Rebased % |
||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
C&W |
$ |
220.4 |
|
|
|
$ |
236.2 |
|
|
|
(6.7 |
) |
|
|
(3.3 |
) |
|
|
$ |
656.8 |
|
|
|
$ |
694.1 |
|
|
|
(5.4 |
) |
|
|
(2.2 |
) |
|
|
VTR/Cabletica |
92.9 |
|
|
|
108.5 |
|
|
|
(14.4 |
) |
|
|
(6.4 |
) |
|
|
272.6 |
|
|
|
327.7 |
|
|
|
(16.8 |
) |
|
|
(5.0 |
) |
|
||||
|
Liberty Puerto Rico |
58.1 |
|
|
|
50.8 |
|
|
|
14.4 |
|
|
|
14.4 |
|
|
|
161.0 |
|
|
|
150.3 |
|
|
|
7.1 |
|
|
|
6.6 |
|
|
||||
|
Corporate |
(11.2 |
) |
|
|
(15.8 |
) |
|
|
29.1 |
|
|
|
25.8 |
|
|
|
(33.7 |
) |
|
|
(39.2 |
) |
|
|
14.0 |
|
|
|
5.0 |
|
|
||||
|
Total |
$ |
360.2 |
|
|
|
$ |
379.7 |
|
|
|
(5.1 |
) |
|
|
(0.7 |
) |
|
|
$ |
1,056.7 |
|
|
|
$ |
1,132.9 |
|
|
|
(6.7 |
) |
|
|
(1.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Operating income (loss) margin |
9.8 |
|
% |
|
(7.2 |
) |
% |
|
|
|
|
|
(0.4 |
) |
% |
|
6.5 |
|
% |
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Adjusted OIBDA margin |
40.6 |
|
% |
|
39.3 |
|
% |
|
|
|
|
|
39.6 |
|
% |
|
39.2 |
|
% |
|
|
|
|
||||||||||||
-
Our reported Adjusted OIBDA for the three and nine months ended September 30, 2020 decreased by 5% and 7%, respectively.
- Reported Adjusted OIBDA decline in Q3 was primarily driven by a net negative FX impact of $12 million, mainly related to the Chilean peso, and a $5 million reduction, from the net impact of acquisitions and disposals. Organic declines were driven by lower revenue at C&W and VTR/Cabletica, partially offset by increases at LPR, each as discussed above, which were partially offset by lower costs including lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.
- Reported Adjusted OIBDA decline YTD was primarily driven by a net negative FX impact of $47 million, mainly related to the Chilean peso. Organic declines were driven by lower revenue at C&W and VTR/Cabletica, partially offset by increases at LPR, each as discussed above, which were partially offset by lower costs including lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.
Q3 2020 Adjusted OIBDA Growth – Segment Highlights
-
C&W: Adjusted OIBDA declined on a reported and rebased basis by 7% and 3%, respectively. Our rebased performance was driven by the aforementioned rebased revenue decline, partly offset by lower direct and operating costs. Adjusted OIBDA margin at 40.9% improved by 140 basis points sequentially.
- Reduced direct costs were due to (i) lower handset sales, as many markets still faced lockdown restrictions during the quarter, (ii) reduced programming expenses driven by improved year-over-year contract rates for certain premium and basic channels, and lower sports content costs and (iii) lower costs associated with declines in transit revenue.
- Other operating costs and expenses were lower year-over-year, primarily due to (i) reduced personnel costs due in part to benefits from ongoing restructuring activities, (ii) a decrease in marketing and sales costs and (iii) lower professional services costs.
-
VTR/Cabletica: Adjusted OIBDA declined on a reported and rebased basis by 14% and 6%, respectively. The higher reported year-over-year decline was driven by a 10% appreciation of the U.S. dollar in relation to the Chilean peso. The Q3 rebased Adjusted OIBDA decline was driven by the aforementioned revenue impacts, higher other operating costs and expenses and declines in direct costs.
- Direct costs were lower compared to the prior-year as equipment sales declined due to reduced store activity and interconnect costs. These declines were partly offset by higher programming costs due to the net effect of an increase from foreign currency impact of contracts denominated in U.S. dollars and a decrease due to renegotiation of a contract related to live soccer matches.
- Other operating costs and expenses increased year-over-year, primarily due to higher costs in Chile following a spike in bandwidth demand resulting from mobility restrictions associated with COVID-19. Network-related costs, as compared to the prior-year period, increased as we expanded our field force to react more quickly to customer requests, and initiated a project to proactively visit customers and ensure their in-home WiFi service is optimally configured. These actions, together with capacity investments made since the initial peak in demand, have driven significant reductions in call center volumes related to technical topics (32% lower in Q3 2020 as compared to Q2 2020), however they remain higher year-over-year.
- The segment’s costs were impacted by a $5 million increase year-over-year due to the impact of U.S. dollar appreciation against the Chilean peso on VTR’s non-functional U.S. dollar costs, primarily in programming.
- Liberty Puerto Rico: Reported and rebased double-digit Adjusted OIBDA growth of 14%, driven by the previously mentioned revenue growth, partly offset by additional programming costs and integration expenses incurred ahead of the acquisition of AT&T’s Puerto Rico and USVI assets, which was completed on October 31, 2020.
Net Earnings (Loss) Attributable to Shareholders
- Net earnings (loss) attributable to shareholders was ($85 million) and $35 million for the three months ended September 30, 2020 and 2019, respectively, and ($658 million) and ($122 million) for the nine months ended September 30, 2020 and 2019, respectively.
Property and Equipment Additions and Capital Expenditures
The table below highlights the categories of the property and equipment additions for the indicated periods and reconciles those additions to the capital expenditures that are presented in the condensed consolidated statements of cash flows included in our Form 10-Q.
|
|
Three months ended |
|
Nine months ended |
||||||||||||||||
|
|
September 30, |
|
September 30, |
||||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
|
|
in millions, except % amounts |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Customer Premises Equipment |
$ |
61.4 |
|
|
|
$ |
72.7 |
|
|
|
$ |
185.4 |
|
|
|
$ |
220.7 |
|
|
|
New Build & Upgrade |
15.7 |
|
|
|
30.2 |
|
|
|
72.9 |
|
|
|
79.4 |
|
|
||||
|
Capacity |
40.5 |
|
|
|
33.8 |
|
|
|
68.6 |
|
|
|
68.6 |
|
|
||||
|
Baseline |
25.8 |
|
|
|
35.6 |
|
|
|
72.0 |
|
|
|
82.2 |
|
|
||||
|
Product & Enablers |
13.5 |
|
|
|
14.6 |
|
|
|
44.2 |
|
|
|
41.2 |
|
|
||||
|
Property and equipment additions |
156.9 |
|
|
|
186.9 |
|
|
|
443.1 |
|
|
|
492.1 |
|
|
||||
|
Assets acquired under capital-related vendor financing arrangements |
(27.2 |
) |
|
|
(32.7 |
) |
|
|
(80.5 |
) |
|
|
(58.7 |
) |
|
||||
|
Assets acquired under finance leases |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
||||
|
Changes in current liabilities related to capital expenditures |
17.2 |
|
|
|
(17.6 |
) |
|
|
55.7 |
|
|
|
(1.2 |
) |
|
||||
|
Capital expenditures* |
$ |
146.9 |
|
|
|
$ |
136.6 |
|
|
|
$ |
418.3 |
|
|
|
$ |
432.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Property and equipment additions as % of revenue |
17.7 |
|
% |
|
19.3 |
|
% |
|
16.6 |
|
% |
|
17.0 |
|
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
Property and Equipment Additions of our Reportable Segments: |
|
|
|
|
|
|
|
||||||||||||
|
C&W |
$ |
82.1 |
|
|
|
$ |
119.2 |
|
|
|
$ |
234.1 |
|
|
|
$ |
264.9 |
|
|
|
VTR/Cabletica |
49.3 |
|
|
|
49.1 |
|
|
|
144.4 |
|
|
|
166.2 |
|
|
||||
|
Liberty Puerto Rico |
19.4 |
|
|
|
16.9 |
|
|
|
52.3 |
|
|
|
56.0 |
|
|
||||
|
Corporate |
6.1 |
|
|
|
1.7 |
|
|
|
12.3 |
|
|
|
5.0 |
|
|
||||
|
Property and equipment additions |
$ |
156.9 |
|
|
|
$ |
186.9 |
|
|
|
$ |
443.1 |
|
|
|
$ |
492.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Property and Equipment Additions as a Percentage of Revenue by Reportable Segment: |
|
|
|
|
|
|
|
||||||||||||
|
C&W |
15.2 |
|
% |
|
20.0 |
|
% |
|
14.3 |
|
% |
|
14.9 |
|
% |
||||
|
VTR/Cabletica |
20.8 |
|
% |
|
18.3 |
|
% |
|
20.5 |
|
% |
|
20.3 |
|
% |
||||
|
Liberty Puerto Rico |
17.0 |
|
% |
|
16.2 |
|
% |
|
15.9 |
|
% |
|
18.3 |
|
% |
||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
New Build and Homes Upgraded by Reportable Segment: |
|
|
|
|
|
|
|
||||||||||||
|
C&W |
47,400 |
|
|
51,700 |
|
|
144,000 |
|
|
197,600 |
|
||||||||
|
VTR/Cabletica |
26,500 |
|
|
61,600 |
|
|
69,100 |
|
|
166,500 |
|
||||||||
|
Liberty Puerto Rico |
4,800 |
|
|
3,200 |
|
|
18,100 |
|
|
13,800 |
|
||||||||
|
∗ |
The capital expenditures that we report in our condensed consolidated statements of cash flows do not include amounts that are financed under capital-related vendor financing or finance lease arrangements. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid. |
Q3 2020 Property and Equipment Additions and Capital Expenditures – Segment Highlights
- C&W: The year-over-year decrease, on a reported basis, was primarily driven by reduced Customer Premises Equipment (CPE) spend as COVID-19 restrictions impacted customer acquisition activity, particularly in Panama, as well as increased new build activity in the prior-year period following Hurricane Dorian in the Bahamas.
- VTR/Cabletica: Property and equipment additions were flat year-over-year on a reported basis. Increased capacity spend in Chile was offset by lower customer premise equipment costs, and reduced new build material and labor costs as lockdown restrictions impacted our construction activity.
- Liberty Puerto Rico: The year-over-year increase is primarily driven by customer additions, which resulted in increased CPE and installation costs.
Summary of Debt, Finance Lease Obligations, Cash and Cash Equivalents & Restricted Cash
The following table details the U.S. dollar equivalent balances of the outstanding principal amounts of our debt and finance lease obligations, and cash, cash equivalents and restricted cash at September 30, 2020:
|
|
Debt |
|
Finance lease |
|
Debt and |
|
Cash, cash equivalents |
||||||
|
|
in millions |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
Liberty Latin America1 |
$ |
405.0 |
|
$ |
1.2 |
|
$ |
406.2 |
|
|
$ |
833.3 |
|
|
C&W |
4,322.5 |
|
0.6 |
|
4,323.1 |
|
|
586.7 |
|
||||
|
VTR |
1,461.5 |
|
— |
|
1,461.5 |
|
|
162.1 |
|
||||
|
Liberty Puerto Rico2 |
2,290.0 |
|
— |
|
2,290.0 |
|
|
1,385.2 |
|
||||
|
Cabletica |
120.3 |
|
— |
|
120.3 |
|
|
15.6 |
|
||||
|
Total |
$ |
8,599.3 |
|
$ |
1.8 |
|
$ |
8,601.1 |
|
|
$ |
2,982.9 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Consolidated Leverage and Liquidity Information: |
September 30, 2020 |
|
June 30, 2020 |
|
|
|
|
||||||
|
Consolidated gross leverage ratio3 |
6.2x |
|
6.4x |
|
|
|
|
||||||
|
Consolidated net leverage ratio3 |
4.1x |
|
4.2x |
|
|
|
|
||||||
|
Average debt tenor4 |
6.4 years |
|
6.1 years |
|
|
|
|
||||||
|
Fully-swapped borrowing costs |
6.2% |
|
6.2% |
|
|
|
|
||||||
|
Unused borrowing capacity (in millions)5 |
$1,063.2 |
|
$765.0 |
|
|
|
|
||||||
|
1. |
Represents the amount held by Liberty Latin America on a standalone basis plus the aggregate amount held by subsidiaries of Liberty Latin America that are outside our borrowing groups. |
|
2. |
Debt amount includes $1,343 million borrowed by Liberty Puerto Rico to fund the AT&T Acquisition. Cash amount includes $1,353 million of restricted cash held in escrow that was used to fund a portion of the AT&T Acquisition. |
|
3. |
Consolidated leverage ratios are non-GAAP measures. For the definitions of our consolidated leverage ratios and required reconciliations, see Non-GAAP Reconciliations below. |
|
4. |
For purposes of calculating our average tenor, total debt excludes vendor financing and finance lease obligations. |
| 5. |
At September 30, 2020, the full amount of unused borrowing capacity under our subsidiaries’ revolving credit facilities was available to be borrowed, both before and after completion of the September 30, 2020 compliance reporting requirements. Subsequent to September 30, 2020, we repaid $100 million of certain borrowings under our revolving credit facilities, following which we have undrawn commitments of $1,163 million. For information regarding limitations on our ability to access this liquidity, see the discussion under “Material Changes in Financial Condition” in our most recently filed Quarterly Report on Form 10-Q |
.
|
|
Organic Subscriber Variance Table — September 30, 2020 vs June 30, 2020 |
|||||||||||||||||||||||||||||
|
|
Homes |
|
Two-way |
|
Fixed-line |
|
Video RGUs |
|
Internet |
|
Telephony |
|
Total |
|
|
Total Mobile |
||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||
|
C&W: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Panama1 |
23,900 |
|
|
23,900 |
|
|
17,000 |
|
|
|
7,500 |
|
|
|
19,000 |
|
|
|
18,100 |
|
|
|
44,600 |
|
|
|
|
54,200 |
|
|
|
Jamaica |
19,400 |
|
|
19,400 |
|
|
5,900 |
|
|
|
2,700 |
|
|
|
9,900 |
|
|
|
6,500 |
|
|
|
19,100 |
|
|
|
|
19,100 |
|
|
|
The Bahamas |
— |
|
|
— |
|
|
(1,100 |
) |
|
|
600 |
|
|
|
1,500 |
|
|
|
(1,100 |
) |
|
|
1,000 |
|
|
|
|
(1,200 |
) |
|
|
Trinidad and Tobago |
1,400 |
|
|
1,400 |
|
|
(900 |
) |
|
|
(1,400 |
) |
|
|
100 |
|
|
|
500 |
|
|
|
(800 |
) |
|
|
|
— |
|
|
|
Barbados |
— |
|
|
— |
|
|
(100 |
) |
|
|
1,000 |
|
|
|
700 |
|
|
|
(400 |
) |
|
|
1,300 |
|
|
|
|
3,300 |
|
|
|
Other |
— |
|
|
— |
|
|
(3,700 |
) |
|
|
(600 |
) |
|
|
2,100 |
|
|
|
(1,000 |
) |
|
|
500 |
|
|
|
|
4,100 |
|
|
|
C&W Total |
44,700 |
|
|
44,700 |
|
|
17,100 |
|
|
|
9,800 |
|
|
|
33,300 |
|
|
|
22,600 |
|
|
|
65,700 |
|
|
|
|
79,500 |
|
|
|
VTR/Cabletica: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
VTR |
11,400 |
|
|
11,400 |
|
|
(42,100 |
) |
|
|
(21,400 |
) |
|
|
(33,500 |
) |
|
|
(21,800 |
) |
|
|
(76,700 |
) |
|
|
|
(10,700 |
) |
|
|
Cabletica |
15,300 |
|
|
15,300 |
|
|
2,000 |
|
|
|
(2,000 |
) |
|
|
5,400 |
|
|
|
(600 |
) |
|
|
2,800 |
|
|
|
|
— |
|
|
|
Total VTR/Cabletica |
26,700 |
|
|
26,700 |
|
|
(40,100 |
) |
|
|
(23,400 |
) |
|
|
(28,100 |
) |
|
|
(22,400 |
) |
|
|
(73,900 |
) |
|
|
|
(10,700 |
) |
|
|
Liberty Puerto Rico2 |
5,200 |
|
|
5,200 |
|
|
26,200 |
|
|
|
5,800 |
|
|
|
27,300 |
|
|
|
9,600 |
|
|
|
42,700 |
|
|
|
|
— |
|
|
|
Total Organic Change |
76,600 |
|
|
76,600 |
|
|
3,200 |
|
|
|
(7,800 |
) |
|
|
32,500 |
|
|
|
9,800 |
|
|
|
34,500 |
|
|
|
|
68,800 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Q3 2020 Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
VTR Adjustments3 |
— |
|
|
— |
|
|
— |
|
|
|
(1,600 |
) |
|
|
(500 |
) |
|
|
(8,500 |
) |
|
|
(10,600 |
) |
|
|
|
— |
|
|
|
Net Adds |
76,600 |
|
|
76,600 |
|
|
3,200 |
|
|
|
(9,400 |
) |
|
|
32,000 |
|
|
|
1,300 |
|
|
|
23,900 |
|
|
|
|
68,800 |
|
|
|
|
Mobile Subscribers |
|||||||||||||||||||
|
|
Consolidated Operating Data — September 30, 2020 |
|
Q3 Organic Subscriber Variance |
|||||||||||||||||
|
|
Prepaid |
|
Postpaid |
|
Total |
|
Prepaid |
|
Postpaid |
|
Total |
|||||||||
|
C&W: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Panama1 |
1,314,400 |
|
|
121,400 |
|
|
1,435,800 |
|
|
51,300 |
|
|
|
2,900 |
|
|
|
54,200 |
|
|
|
Jamaica |
944,400 |
|
|
21,400 |
|
|
965,800 |
|
|
17,600 |
|
|
|
1,500 |
|
|
|
19,100 |
|
|
|
The Bahamas |
150,100 |
|
|
29,000 |
|
|
179,100 |
|
|
(1,800 |
) |
|
|
600 |
|
|
|
(1,200 |
) |
|
|
Barbados |
87,400 |
|
|
29,200 |
|
|
116,600 |
|
|
2,900 |
|
|
|
400 |
|
|
|
3,300 |
|
|
|
Other |
346,000 |
|
|
44,300 |
|
|
390,300 |
|
|
2,500 |
|
|
|
1,600 |
|
|
|
4,100 |
|
|
|
C&W Total |
2,842,300 |
|
|
245,300 |
|
|
3,087,600 |
|
|
72,500 |
|
|
|
7,000 |
|
|
|
79,500 |
|
|
|
VTR |
11,800 |
|
|
279,100 |
|
|
290,900 |
|
|
100 |
|
|
|
(10,800 |
) |
|
|
(10,700 |
) |
|
|
Total / Net Adds |
2,854,100 |
|
|
524,400 |
|
|
3,378,500 |
|
|
72,600 |
|
|
|
(3,800 |
) |
|
|
68,800 |
|
|
Contacts
Investor Relations
Kunal Patel
ir@lla.com
Corporate Communications
Claudia Restrepo
llacommunications@lla.com
Read full story here
