Liberty Latin America Reports Q2 and H1 2020 Results

Latin America

Performance impacted by COVID-19, improving from April low

RGU growth driven by 47,000 broadband adds; record RGU adds for Puerto Rico

Strong cash flows from operating activities and Adjusted FCF

Announced acquisition of Telefónica’s fast-growing Costa Rica operation

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 (“Q2”) and six months (“YTD” or “H1 2020”) ended June 30, 2020.

CEO Balan Nair commented, “As anticipated, following a strong start to the year, the second quarter brought with it a number of COVID-19 related challenges for many of our operations, resulting in declining year-over-year top-line performance. The good news is that we planned extensively and were able to offset some of the impacts through early cost management actions. As we look to the rest of the year, our mobile and B2B businesses are expected to see further challenges, however we believe we are past the low point. We continue to be focused on generating positive free cash flow in 2020, and took a step towards that with our strong Q2 performance.”

“In terms of our reporting segments, Puerto Rico led with another tremendous quarter, reporting record RGU additions and we are looking forward to adding AT&T’s assets in Puerto Rico and the US Virgin Islands to further enhance our customer proposition and prospects. VTR and Cabletica also added subscribers in the period, albeit seeing more of an impact from lockdown restrictions in Chile. C&W experienced the greatest headwinds with declining RGUs driven by Panama where we experienced the most restrictive lockdowns across all of our markets. From a product perspective, consumers continue to demand high-speed connectivity and our fixed-line services have been particularly resilient.”

“Last week, we announced the exciting news that we agreed to acquire Telefónica’s Costa Rica business. We have had great success in Costa Rica with our cable operation Cabletica and are increasing our investment in the country through a complementary, fast-growing, and postpaid-weighted mobile business. The two businesses combined would create a leading full-service communications player with approximately $400 million of revenue1. This transaction comes at an attractive valuation, consistent with our disciplined approach towards M&A.”

“As part of the financing for our acquisition of Telefónica Costa Rica as well as looking to other potential opportunities across our strong pipeline, we announced a $350 million rights offering today, with all the members of our Board and my leadership team having expressed their intention to subscribe. We feel this is an appropriate step to ensure we have flexibility to participate in accretive M&A opportunities, while maintaining a prudent capital structure.”

“Overall there continues to be uncertainty due to COVID-19, however our operating and financial performance has been improving since a trough in April, and we anticipate further progress over the remainder of 2020. Looking further ahead, cash generation remains our focus. This should be bolstered by organic performance, as we drive growth and efficiency in the business, benefiting from targeted network and product investments, in addition to disciplined acquisition activity.”

Business Highlights

  • C&W Q2 results impacted by COVID-19:
    • Monthly revenue performance building from April low
    • Q2 fixed RGU net losses driven by Panama restrictions, strong additions in Jamaica
    • New build / upgrade activity added over 50,000 homes, mainly in Panama and Jamaica
  • VTR/Cabletica reported resilient commercial performance:
    • RGU growth driven by 19,000 broadband additions in Chile
    • Higher Q2 costs following capacity demand spike and FX impact on USD based costs
    • New build / upgrade activity impacted by COVID-19, over 10,000 homes added
  • Liberty Puerto Rico delivered another strong quarter:
    • Record RGU additions of 34,000 in Q2 driven by best ever broadband performance
    • Reported revenue growth of 5%
    • New build / upgrade activity added over 5,000 homes

Financial Highlights

Liberty Latin America

 

Q2 2020

 

Q2 2019

 

YoY Growth/(Decline)

 

YoY Rebase Growth/(Decline)2

 

H1 2020

 

H1 2019

 

YoY Growth/(Decline)

 

YoY Rebase Growth/(Decline)2

(in millions, except % amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

849

 

 

 

$

983

 

 

 

(13.6

%)

 

(7.7

%)

 

$

1,780

 

 

 

$

1,926

 

 

 

(7.6

%)

 

(3.0

%)

Adjusted OIBDA3

 

$

333

 

 

 

$

387

 

 

 

(14.1

%)

 

(8.1

%)

 

$

697

 

 

 

$

753

 

 

 

(7.5

%)

 

(2.1

%)

Operating income (loss)

 

$

(206

)

 

 

$

144

 

 

 

(243.6

%)

 

 

 

$

(98

)

 

 

$

257

 

 

 

(138.2

%)

 

 

Property & equipment additions

 

$

153

 

 

 

$

166

 

 

 

(7.7

%)

 

 

 

$

286

 

 

 

$

305

 

 

 

(6.2

%)

 

 

As a percentage of revenue

 

18

%

 

17

%

 

 

 

 

 

16

%

 

16

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted FCF4

 

$

130

 

 

 

$

68

 

 

 

 

 

 

 

$

81

 

 

 

$

116

 

 

 

 

 

 

Cash provided by operating activities

 

$

239

 

 

 

$

244

 

 

 

 

 

 

 

$

354

 

 

 

$

431

 

 

 

 

 

 

Cash used by investing activities

 

$

(116

)

 

 

$

(136

)

 

 

 

 

 

 

$

(263

)

 

 

$

(421

)

 

 

 

 

 

Cash provided by financing activities

 

$

132

 

 

 

$

281

 

 

 

 

 

 

 

$

587

 

 

 

$

320

 

 

 

 

 

 

Subscriber Growth5

 

Three months ended

 

Six months ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

Organic RGU additions (losses) by product

 

 

 

 

 

 

 

Video

(15,800

)

 

 

17,700

 

 

(11,200

)

 

 

32,600

 

Data

46,700

 

 

 

44,400

 

 

95,100

 

 

 

94,500

 

Voice

(12,200

)

 

 

4,500

 

 

(5,200

)

 

 

12,500

 

Total

18,700

 

 

 

66,600

 

 

78,700

 

 

 

139,600

 

 

 

 

 

 

 

 

 

Organic RGU additions (losses) by segment

 

 

 

 

 

 

 

C&W

(26,300

)

 

 

30,400

 

 

12,100

 

 

 

62,000

 

VTR/Cabletica

11,500

 

 

 

31,100

 

 

24,100

 

 

 

50,800

 

Liberty Puerto Rico

33,500

 

 

 

5,100

 

 

42,500

 

 

 

26,800

 

Total

18,700

 

 

 

66,600

 

 

78,700

 

 

 

139,600

 

 

 

 

 

 

 

 

 

Organic Mobile SIM additions (losses) by product

 

 

 

 

 

 

 

Postpaid

(23,000

)

 

 

8,200

 

 

(18,200

)

 

 

18,600

 

Prepaid

(287,100

)

 

 

35,900

 

 

(330,600

)

 

 

36,300

 

Total

(310,100

)

 

 

44,100

 

 

(348,800

)

 

 

54,900

 

 

 

 

 

 

 

 

 

Organic Mobile SIM additions (losses) by segment

 

 

 

 

 

 

 

C&W

(306,800

)

 

 

34,300

 

 

(349,600

)

 

 

35,100

 

VTR/Cabletica

(3,300

)

 

 

9,800

 

 

800

 

 

 

19,800

 

Total

(310,100

)

 

 

44,100

 

 

(348,800

)

 

 

54,900

 

  • Fixed customer additions: Organic additions of 21,000 in Q2 2020.
    • Liberty Puerto Rico reported a record quarter with 20,000 customer additions, approximately five times the prior-year period’s additions.
    • Gains in VTR/Cabletica were offset by net losses in C&W, driven by Panama.
  • Product additions: Organic fixed RGU additions of 19,000 in Q2 2020 were driven by broadband subscriber growth. Mobile organic losses totaled 310,000 in the quarter.
  • C&W fixed RGUs declined by 26,000 during the quarter. This included gains of 26,000 in Jamaica, which were more than offset by losses of 45,000 in Panama, where rigorous lockdown measures, first implemented in March, continue to restrict commercial activity. Our losses in Panama include the removal of 76,000 RGUs who continue to receive services and, due to COVID-19, have not been disconnected in accordance with our normal policy for non-payment.
    • Broadband RGU additions of 2,000 were 13,000 lower year-over-year. In Jamaica, continued momentum drove record Q2 additions of 14,000, or three times the prior-year period. This performance was mostly offset by broadband RGU losses of 12,000 in Panama.
    • Video RGUs declined by 19,000, as a 3,000 RGU gain in Jamaica, where additions were 79% higher than the prior-year period, was more than offset by a reduction of 18,000 video subscribers in Panama, and net losses across our other markets.
    • Fixed-line telephony RGUs were 9,000 lower for C&W in the quarter. Jamaica, once again drove strong additions with a gain of 10,000 subscribers, eight times higher than the prior-year period, however, this was more than offset by losses of 15,000 telephony RGUs in Panama, and net losses across our other markets.
    • Mobile subscribers declined by 307,000 in Q2, driven by prepaid losses of 289,000. Panama and Jamaica mobile subscribers were 131,000 and 107,000 lower, respectively. In both cases, mobility restrictions impacted demand for mobile services and the ability of customers to top-up. In Jamaica, we also continued to see increased promotional activity from our competitor. Subscriber net adds improved in June, following April and May, which were our weakest months in the year.
  • VTR/Cabletica added 12,000 fixed RGUs during Q2. VTR added 5,000 RGUs overall, with strong broadband additions of 19,000, in-line with the prior-year period and 30% higher than Q1 2020, offset by 11,000 fixed-line telephony and 3,000 video RGU losses. Video subscriber losses at VTR followed the suspension of the Chilean soccer league. Cabletica added 6,000 RGUs in total, driven by broadband and video.
    • In mobile, VTR lost 3,000 subscribers in Q2 due to the impact of lockdown restrictions in Chile, particularly with respect to store closures leading to reduced retail activity. At June 30, 2020, 96% of VTR’s subscribers were on postpaid plans.
  • Liberty Puerto Rico reported a record 34,000 fixed RGU additions in Q2 driven by 22,000 broadband additions as demand increased for access to our high-speed network.

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)

 

 

 

 

 

Six months ended

 

Increase/(decrease)

 

 

 

 

June 30,

 

 

June 30,

 

 

2020

 

2019

 

%

 

 

 

Rebased %

 

 

2020

 

2019

 

%

 

 

 

Rebased %

 

in millions, except % amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C&W

$

515.3

 

 

 

$

606.6

 

 

 

(15.1

)

 

 

(11.5

)

 

 

$

1,103.9

 

 

 

$

1,176.4

 

 

 

(6.2

)

 

 

(5.0

)

VTR/Cabletica

227.7

 

 

 

274.5

 

 

 

(17.0

)

 

 

(3.1

)

 

 

467.8

 

 

 

551.0

 

 

 

(15.1

)

 

 

(0.9

)

Liberty Puerto Rico

109.1

 

 

 

103.8

 

 

 

5.1

 

 

 

5.1

 

 

 

213.7

 

 

 

202.4

 

 

 

5.6

 

 

 

4.2

 

Intersegment eliminations

(3.2

)

 

 

(2.0

)

 

 

N.M.

 

N.M.

 

(5.5

)

 

 

(4.2

)

 

 

N.M.

 

N.M.

Total

$

848.9

 

 

 

$

982.9

 

 

 

(13.6

)

 

 

(7.7

)

 

 

$

1,779.9

 

 

 

$

1,925.6

 

 

 

(7.6

)

 

 

(3.0

)

N.M. – Not Meaningful.

  • Our reported revenue for the three and six months ended June 30, 2020 decreased by 14% and 8%, respectively.
    • Reported revenue decline in Q2 2020 was largely driven by (1) negative impacts from COVID-19, particularly in C&W, (2) a net negative foreign exchange (“FX”) impact of $47 million, primarily related to a 20% appreciation of the U.S. dollar in relation to the Chilean peso, and (3) a $14 million reduction, as compared to the prior-year period, from the disposal of C&W’s Seychelles business. These declines were partially offset by organic growth in Liberty Puerto Rico.
    • Reported revenue decline in H1 2020 was primarily driven by (1) a net negative FX impact of $94 million, primarily related to a 20% 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.

Q2 2020 Revenue Growth – Segment Highlights

  • C&W: Reported and rebased revenue declines of 15% and 12%, respectively. The higher reported decline was driven by inclusion of our now divested C&W Seychelles business in the prior-year period and adverse currency movements.
    • B2B revenue declined 15% on a reported basis and 12% on a rebased basis. The rebased decline was driven by (i) lower revenues from fixed and mobile services due to discounts and credits related to reduced or suspended service across our markets as a result of the COVID-19 lockdowns, (ii) lower revenues from managed services, primarily driven by certain non-recurring projects in Panama that have been put on hold due to the economic uncertainty of the impact of COVID-19, and (iii) a strategic decision to reduce low margin transit revenue. These declines were partly offset by year-over-year growth in our subsea operation. On a sequential basis, subsea revenue declined in part due to$10 million of revenue recognized during Q1 2020 associated with revenue recognized on a cash basis for services provided to a significant customer.
    • Fixed residential revenue was down 3% on a reported basis and relatively flat on a rebased basis. The rebased performance resulted from growth in subscription revenue, driven by organic RGU additions (organic RGUs were 5% higher year-over-year), offset by non-subscription revenue declines in interconnect and other categories.
    • Mobile reported and rebased revenue declines of 25% and 22%, respectively. Subscription revenue was impacted by reduced recharge activity and fewer subscribers during the lockdown periods, particularly in Panama, which is C&W’s largest mobile market and also under the most restrictive conditions. Roaming revenue declined by $7 million year-over-year, also contributing to the rebased mobile performance, with the largest impact in the Bahamas.
  • VTR/Cabletica: Q2 Reported and rebased revenue declines of 17% and 3%, respectively. The higher reported year-over-year decline was driven by a 20% appreciation of the U.S. dollar in relation to the Chilean peso. The rebased revenue decline was driven by COVID-19 related impacts in VTR, primarily the suspension of the Chilean soccer league which led to $5 million of discounts for customers who had subscribed to the premium channel airing the league’s games. 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 5% was driven by broadband subscriber additions, reflecting the strength of our networks and entertainment propositions.

Operating Income (Loss)

  • Operating income (loss) was ($206 million) and $144 million for the three months ended June 30, 2020 and 2019, respectively, and ($98 million) and $257 million for the six months ended June 30, 2020 and 2019, respectively.
    • We reported operating losses during the three and six months ended June 30, 2020, compared with operating income for the corresponding periods during 2019, primarily due to (i) goodwill impairments recorded during the second quarter of 2020 in certain C&W markets 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)

 

Six months ended

 

Increase (decrease)

 

June 30,

 

 

June 30,

 

 

2020

 

2019

 

%

 

Rebased %

 

2020

 

 

2019

 

 

%

 

Rebased %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C&W

$

203.6

 

 

 

$

235.4

 

 

 

(13.5

)

 

 

(9.5

)

 

 

$

436.4

 

 

 

$

457.9

 

 

 

(4.7

)

 

 

(1.7

)

 

VTR/Cabletica

86.3

 

 

 

112.3

 

 

 

(23.2

)

 

 

(10.1

)

 

 

179.7

 

 

 

219.2

 

 

 

(18.0

)

 

 

(4.2

)

 

Liberty Puerto Rico

52.4

 

 

 

51.6

 

 

 

1.6

 

 

 

1.6

 

 

 

102.9

 

 

 

99.5

 

 

 

3.4

 

 

 

2.6

 

 

Corporate

(9.7

)

 

 

(11.9

)

 

 

(18.5

)

 

 

(8.4

)

 

 

(22.5

)

 

 

(23.4

)

 

 

(3.8

)

 

 

10.6

 

 

Total

$

332.6

 

 

 

$

387.4

 

 

 

(14.1

)

 

 

(8.1

)

 

 

$

696.5

 

 

 

$

753.2

 

 

 

(7.5

)

 

 

(2.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) margin

(24.3

)

%

 

14.6

 

%

 

 

 

 

 

(5.5

)%

 

13.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted OIBDA margin

39.2

 

%

 

39.4

 

%

 

 

 

 

 

39.1

%

 

39.1

%

 

 

 

 

  • Our reported Adjusted OIBDA for the three and six months ended June 30, 2020 decreased by 14% and 8%, respectively.
    • Reported Adjusted OIBDA decline in Q2 2020 was primarily driven by (1) negative impacts from COVID-19, particularly in C&W and VTR, (2) a net negative FX impact of $18 million, mainly related to the Chilean peso, (3) an $8 million decrease due to the impact of U.S. dollar appreciation against the Chilean peso on VTR’s non-functional U.S. dollar costs and (4) a $5 million reduction, as compared to the prior-year period, from the disposal of C&W’s Seychelles business. This was partially offset by (1) organic growth in Puerto Rico and (2) lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.
    • Reported Adjusted OIBDA decline in H1 2020 was primarily driven by (1) a net negative FX impact of $35 million, mainly related to the Chilean peso, (2) negative impacts from COVID-19, particularly in C&W, and (3) a $13 million decrease due to the impact of U.S. dollar appreciation against the Chilean peso on VTR’s non-functional U.S. dollar costs. This was partially offset by (1) organic growth in Puerto Rico and (2) lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.

Q2 2020 Adjusted OIBDA Growth – Segment Highlights

  • C&W: Reported and rebased Adjusted OIBDA declines of 14% and 10%, respectively in Q2. Our rebased performance was driven by the aforementioned rebased revenue decline, partly offset by lower direct and operating costs.
    • Reduced direct costs were due to (i) lower handset sales, as many markets faced lockdown restrictions, (ii) reduced programming expenses driven by improved year-over-year contract rates for the Premier League and reduced games during the period and (iii) lower 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 associated with third-party legal and advisory-related services.
  • VTR/Cabletica: Reported and rebased Adjusted OIBDA declines of 23% and 10%, respectively. The higher reported year-over-year decline was driven by a 20% appreciation of the U.S. dollar in relation to the Chilean peso. Our Q2 rebased Adjusted OIBDA decline was driven by the aforementioned revenue impacts, certain costs primarily related to COVID-19 and currency movements related to contracts denominated in foreign currencies.
    • Direct costs reduced overall year-over-year due to lower programming costs, including a decrease related to the renegotiation of a programming contract for soccer matches cancelled due to COVID-19 and lower equipment sales due to reduced store activity. These declines were partly offset by the foreign currency impact of programming contracts denominated in U.S. dollars.
    • Other operating costs and expenses increased compared to the prior-year quarter, primarily due to higher network-related and call center costs, as we addressed a significant spike in bandwidth demand in Chile where usage levels increased by approximately 50%. Since the initial peak, we have worked diligently to increase capacity in our network and seen reduced call center volumes and improved network performance, which we expect to drive reduced associated costs through the remainder of 2020.
    • The segment’s costs were impacted by an $8 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, which drove an impact of $6 million. Sequentially, the impact of U.S. dollar appreciation against the Chilean peso increased our non-functional currency costs by $3 million.
  • Liberty Puerto Rico: Reported and rebased Adjusted OIBDA growth of 2%, driven by the previously mentioned revenue growth, partly offset by additional programming costs and integration expenses ahead of the anticipated acquisition of AT&T’s Puerto Rico and U.S. Virgin Islands assets.

Net Loss Attributable to Shareholders

  • Net loss attributable to shareholders was $393 million and $116 million for the three months ended June 30, 2020 and 2019, respectively, and $574 million and $158 million for the six months ended June 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

 

Six months ended

 

June 30,

 

June 30,

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

in millions, except % amounts

 

 

 

 

 

 

 

 

Customer Premises Equipment

$

56.9

 

 

 

$

76.1

 

 

 

$

124.0

 

 

 

$

148.0

 

 

New Build & Upgrade

29.0

 

 

 

27.6

 

 

 

57.2

 

 

 

49.2

 

 

Capacity

22.0

 

 

 

23.9

 

 

 

28.1

 

 

 

34.8

 

 

Baseline

26.6

 

 

 

23.3

 

 

 

46.2

 

 

 

46.6

 

 

Product & Enablers

18.8

 

 

 

15.2

 

 

 

30.7

 

 

 

26.6

 

 

Property and equipment additions

153.3

 

 

 

166.1

 

 

 

286.2

 

 

 

305.2

 

 

Assets acquired under capital-related vendor financing arrangements

(29.7

)

 

 

(15.1

)

 

 

(53.3

)

 

 

(26.0

)

 

Assets acquired under finance leases

 

 

 

(0.1

)

 

 

 

 

 

(0.2

)

 

Changes in current liabilities related to capital expenditures

(1.4

)

 

 

(15.1

)

 

 

38.5

 

 

 

16.4

 

 

Capital expenditures*

$

122.2

 

 

 

$

135.8

 

 

 

$

271.4

 

 

 

$

295.4

 

 

 

 

 

 

 

 

 

 

Property and equipment additions as % of revenue

18.1

%

 

16.9

%

 

16.1

%

 

15.8

%

 

 

 

 

 

 

 

 

Property and Equipment Additions of our Reportable Segments:

 

 

 

 

 

 

 

C&W

$

81.5

 

 

 

$

82.1

 

 

 

$

152.0

 

 

 

$

145.7

 

 

VTR/Cabletica

50.2

 

 

 

63.0

 

 

 

95.1

 

 

 

117.1

 

 

Liberty Puerto Rico

19.6

 

 

 

19.3

 

 

 

32.9

 

 

 

39.1

 

 

Corporate

2.0

 

 

 

1.7

 

 

 

6.2

 

 

 

3.3

 

 

Property and equipment additions

$

153.3

 

 

 

$

166.1

 

 

 

$

286.2

 

 

 

$

305.2

 

 

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.

Segment Highlights

  • C&W: Property and equipment additions of $82 million represented 16% of revenue in Q2 2020, an increase compared to 14% of revenue in the prior-year period, and 14% of revenue in H1 2020 compared to 12% in H1 2019. The higher year-over-year spend was driven by restoration activity following Hurricane Dorian in the Bahamas and our new build and upgrade programs. Reduced installation and equipment costs drove lower customer premise equipment costs, as compared to the prior-year period.
    • In H1 2020, new build and upgrade initiatives delivered approximately 95,000 new or upgraded homes, including over 50,000 in Q2.
  • VTR/Cabletica: Property and equipment additions of $50 million represented 22% of revenue in Q2 2020, a decline compared to 23% of revenue in the prior-year period, and 20% of revenue in H1 2020 compared to 21% in H1 2019. The decrease was primarily driven by lower customer premise equipment costs and reduced new build material and labor costs as lockdown restrictions in Chile impacted our construction activity, year-over-year. This was partly offset by higher capacity spend to address bandwidth demand growth as lockdowns were implemented in Chile.
    • In H1 2020, new build and upgrade initiatives delivered over 40,000 new or upgraded homes in Chile and Costa Rica, including over 10,000 in Q2.
  • Liberty Puerto Rico: Property and equipment additions of $20 million represented 18% of revenue in Q2 2020, a decline compared to 19% of revenue in the prior-year period, and 15% of revenue in H1 2020 compared to 19% in H1 2019.
    • In H1 2020, new build initiatives delivered over 10,000 new homes, including over 5,000 in Q2.

Leverage and Liquidity (at June 30, 2020)

  • Total principal amount of debt and finance leases: $8,983 million, including (i) debt of $1,343 million borrowed by Liberty Puerto Rico to fund the AT&T Acquisition (with the corresponding cash held in escrow) and (ii) debt of $313 million and $63 million at C&W and Liberty Puerto Rico, respectively, under the respective borrowing group’s revolving credit facilities, the proceeds of which are included in cash and cash equivalents in our condensed consolidated balance sheet as of June 30, 2020.

Contacts

Investor Relations
Kunal Patel
ir@lla.com

Corporate Communications
Claudia Restrepo
llacommunications@lla.com

Read full story here

Leave a Reply