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
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.
Subsequent to June 30, 2020, we repaid $213 million and $63 million
of borrowings under the revolving credit facilities at C&W and
Liberty Puerto Rico, respectively.
- Leverage ratios: Consolidated gross and net leverage ratios are
6.4x and 4.2x, respectively, as calculated on a latest two quarters
annualized ("L2QA") basis. Excluding the incremental debt to fund
the AT&T Acquisition, our consolidated gross leverage ratio
would decline to 5.5x.
- Average debt tenor6: 6.1 years, with approximately 94% not due
until 2024 or beyond. Following the VTR refinancing transactions we
concluded in July, the average debt tenor increased to 6.7
years.
- Borrowing costs: Blended, fully-swapped borrowing cost of our
debt was approximately 6.2%. When excluding the discount on the
convertible notes associated with the conversion option, the
weighted average interest rate was 5.9%.
- Cash and borrowing availability: $3,124 million of cash
(including $1,353 million of restricted cash held in escrow to fund
the AT&T Acquisition) and $765 million of aggregate unused
borrowing capacity7 under our revolving credit facilities.
Forward-Looking Statements and Disclaimer
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our strategies, priorities,
financial performance and guidance; regarding the COVID-19
pandemic, our response to such pandemic and the anticipated impact
of such crisis on our business and financial results; our customer
value propositions; product innovation and investments; the
AT&T Acquisition, including the anticipated consequences and
benefits of the transaction; the acquisition of Telefónica's Costa
Rica business; the rights offering, including who intends to
subscribe; the strength of our balance sheet and tenor of our debt;
and other information and statements that are not historical fact.
These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These risks
and uncertainties include events that are outside of our control,
such as hurricanes and other natural disasters, political or social
events, and pandemics, such as COVID-19, the uncertainties
surrounding such events and efforts to contain any pandemic, the
ability and cost to restore networks in the markets impacted by
hurricanes or generally to respond to any such events; the
continued use by subscribers and potential subscribers of our
services and their willingness to upgrade to our more advanced
offerings; our ability to meet challenges from competition, to
manage rapid technological change or to maintain or increase rates
to our subscribers or to pass through increased costs to our
subscribers; the effects of changes in laws or regulation; general
economic factors; our ability to obtain regulatory approval and
satisfy conditions associated with acquisitions and dispositions,
including the AT&T Acquisition and the acquisition of
Telefónica's Costa Rica business; our ability to successfully
acquire and integrate new businesses and realize anticipated
efficiencies from acquired businesses; the availability of
attractive programming for our video services and the costs
associated with such programming; our ability to achieve forecasted
financial and operating targets; the outcome of any pending or
threatened litigation; the ability of our operating companies to
access cash of their respective subsidiaries; the impact of our
operating companies' future financial performance, or market
conditions generally, on the availability, terms and deployment of
capital; fluctuations in currency exchange and interest rates; the
ability of suppliers and vendors (including our third-party
wireless network provider under our MVNO arrangement) to timely
deliver quality products, equipment, software, services and access;
our ability to adequately forecast and plan future network
requirements including the costs and benefits associated with
network expansions; and other factors detailed from time to time in
our filings with the Securities and Exchange Commission, including
our most recently filed Form 10-K and Form 10-Q. These
forward-looking statements speak only as of the date of this press
release. We expressly disclaim any obligation or undertaking to
disseminate any updates or revisions to any forward-looking
statement contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
This press release is for informational purposes only and does
not constitute an offer to sell or the solicitation of an offer to
buy nor will there be any sale of any securities referred to in
this press release in any state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such state or
jurisdiction. The rights offering will be made only by means of a
prospectus meeting the requirements of the Securities Act of 1933,
as amended. None of Liberty Latin America, its board of directors
or any committee of its board of directors is making any
recommendation to rightsholders as to whether to exercise or sell
their Class C rights related to the rights offering. When
available, rightsholders should carefully read the prospectus
insofar as it relates to the rights offering before making any
decisions with respect to their Class C rights.
About Liberty Latin America
Liberty Latin America is a leading communications company
operating in over 20 countries across Latin America and the
Caribbean under the consumer brands VTR, Flow, Liberty, Más Móvil,
BTC, UTS and Cabletica. The communications and entertainment
services that we offer to our residential and business customers in
the region include digital video, broadband internet, telephony and
mobile services. Our business products and services include
enterprise-grade connectivity, data center, hosting and managed
solutions, as well as information technology solutions with
customers ranging from small and medium enterprises to
international companies and governmental agencies. In addition,
Liberty Latin America operates a subsea and terrestrial fiber optic
cable network that connects over 40 markets in the region.
Liberty Latin America has three separate classes of common
shares, which are traded on the NASDAQ Global Select Market under
the symbols “LILA” (Class A) and “LILAK” (Class C), and on the OTC
link under the symbol “LILAB” (Class B).
For more information, please visit www.lla.com.
Footnotes
- Amount based upon a combination of (i) Cabletica revenue for
the year ended December 31, 2019 in accordance with U.S. GAAP as
set forth in note 19 to the consolidated financial statements
included in our 2019 Form 10-K and (ii) revenue of Telefónica's
Costa Rica operations for the same period in accordance with
Telefónica's accounting policies and International Financial
Reporting Standards.
- Rebased growth rates are a non-GAAP measure. The indicated
growth rates are rebased for the estimated impacts of (i) an
acquisition, (ii) a disposal, (iii) FX, (iv) for the C&W and
Liberty Puerto Rico segments, the impact of a small common control
transaction between these segments, and (v) for the C&W segment
and our corporate operations, the impact of the transfer of our
captive insurance operation from our C&W segment to our
corporate operations. See Non-GAAP Reconciliations below.
- Adjusted OIBDA is a non-GAAP measure that was previously
referred to as "operating cash flow" in our quarterly earnings
releases. Effective June 30, 2020, we no longer use the term
"operating cash flow" and this key performance metric is now
referred to as Adjusted OIBDA. For the definition of Adjusted OIBDA
and required reconciliations, see Non-GAAP Reconciliations
below.
- Adjusted Free Cash Flow is a non-GAAP measure. For the
definition of Adjusted Free Cash Flow (“Adjusted FCF”) and required
reconciliations, see Non-GAAP Reconciliations below.
- See Glossary for the definition of RGUs and mobile subscribers.
Organic figures exclude RGUs and mobile subscribers of acquired
entities at the date of acquisition and other nonorganic
adjustments, but include the impact of changes in RGUs and mobile
subscribers from the date of acquisition. All subscriber/RGU
additions or losses refer to net organic changes, unless otherwise
noted.
- For purposes of calculating our average tenor, total debt
excludes vendor financing and finance lease obligations.
- At June 30, 2020, we had undrawn commitments of $765 million.
At June 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 June 30,
2020 compliance reporting requirements. Subsequent to June 30,
2020, we repaid $275 million of borrowings under the revolving
credit facilities, following which we have undrawn commitments of
$1,140 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.
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 June
30, 2020:
Debt
Finance lease
obligations
Debt and finance lease
obligations
Cash, cash equivalents and
restricted cash
in millions
Liberty Latin America1
$
405.2
$
1.3
$
406.5
$
539.0
C&W
4,544.5
1.1
4,545.6
774.8
VTR
1,555.1
—
1,555.1
332.9
Liberty Puerto Rico2
2,352.5
—
2,352.5
1,455.0
Cabletica
123.5
—
123.5
22.0
Total
$
8,980.8
$
2.4
$
8,983.2
$
3,123.7
- 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.
Subsidiaries of Liberty Latin America that are outside our
borrowing groups rely on funds provided by our borrowing groups to
satisfy their liquidity needs.
- 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 to fund a portion of the
AT&T Acquisition.
ARPU per Customer Relationship
The following table provides ARPU per customer relationship for
the indicated periods:
Three months ended June
30,
FX-Neutral1
2020
2019
% Change
% Change
Liberty Latin America2,3
$
46.15
$
51.31
(10.1
%)
(2.8
%)
C&W2,3
$
46.92
$
47.52
(1.3
%)
0.1
%
VTR/Cabletica
$
38.34
$
47.62
(19.5
%)
(6.3
%)
VTR
CLP
30,830
CLP
33,223
(7.2
%)
(7.2
%)
Cabletica
CRC
24,730
CRC
24,708
0.1
%
0.1
%
Liberty Puerto Rico
$
77.69
$
77.05
0.8
%
0.8
%
Mobile ARPU4
The following table provides ARPU per mobile subscriber for the
indicated periods:
Three months ended June
30,
FX-Neutral1
2020
2019
% Change
% Change
Liberty Latin America2,3
$
11.49
$
14.20
(19.1
%)
(16.2
%)
C&W2,3
$
11.13
$
13.77
(19.2
%)
(18.0
%)
VTR5
$
15.22
$
19.50
(21.9
%)
(6.1
%)
- The FX-neutral change represents the percentage change on a
year-over-year basis adjusted for FX impacts and is calculated by
adjusting the current-year figures to reflect translation at the
foreign currency rates used to translate the prior-year
amounts.
- In order to provide a more meaningful comparison of ARPU per
customer relationship and ARPU per mobile subscriber, we have
reflected any nonorganic adjustments in the customer and mobile
subscriber figures used to calculate ARPU per customer relationship
and ARPU per mobile subscriber for the three months ended June 30,
2019.
- The amounts for the three months ended June 30, 2019 exclude
the revenue, customers and mobile subscribers from our operations
in the Seychelles. This allows for a more accurate comparison to Q2
2020, as these operations were sold during November 2019.
- Mobile ARPU amounts are calculated excluding interconnect
revenue.
- The mobile ARPU amounts in Chilean pesos for the three months
ended June 30, 2020 and 2019 are CLP 12,510 and CLP 13,331,
respectively.
Additional Information | Cable & Wireless Borrowing
Group
The following table reflects preliminary unaudited selected
financial results for three and six months ended June 30, 2020 and
2019 in accordance with U.S. GAAP.
Three months ended
June 30,
Change
Rebased change1
2020
2019
in millions, except %
amounts
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video
$
42.7
$
46.8
Broadband internet
70.5
65.5
Fixed-line telephony
24.2
26.7
Total subscription revenue
137.4
139.0
Non-subscription revenue
11.3
14.9
Total residential fixed revenue
148.7
153.9
(3.4
%)
(0.5
%)
Residential mobile revenue:
Service revenue
105.5
142.1
Interconnect, equipment sales and
other
17.2
22.2
Total residential mobile revenue
122.7
164.3
(25.3
%)
(21.7
%)
Total residential revenue
271.4
318.2
(14.7
%)
(11.4
%)
B2B revenue:
Service revenue
183.5
228.4
Subsea network revenue
60.4
60.0
Total B2B revenue
243.9
288.4
(15.4)
%
(11.7)
%
Total
$
515.3
$
606.6
(15.1)
%
(11.5)
%
Operating income (loss)
$
(245.6
)
$
61.3
(500.7
%)
Adjusted OIBDA
$
203.6
$
235.4
(13.5)
%
(9.5
%)
Operating income (loss) as a percentage of
revenue
(47.7
)%
10.1
%
Adjusted OIBDA as a percentage of
revenue
39.5
%
38.8
%
Proportionate Adjusted OIBDA
$
177.5
$
194.8
Six months ended
June 30,
Change
Rebased change1
2020
2019
in millions, except %
amounts
Residential revenue:
Residential fixed revenue:
Subscription revenue:
Video
$
87.6
$
90.7
Broadband internet
141.5
125.7
Fixed-line telephony
48.5
51.0
Total subscription revenue
277.6
267.4
Non-subscription revenue
28.2
29.9
Total residential fixed revenue
305.8
297.3
2.9
%
2.1
%
Residential mobile revenue:
Service revenue
236.4
277.1
Interconnect, equipment sales and
other
34.8
41.2
Total residential mobile revenue
271.2
318.3
(14.8
%)
(13.8
%)
Total residential revenue
577.0
615.6
(6.3
%)
(6.0
%)
B2B revenue:
Service revenue
396.9
439.3
Subsea network revenue
130.0
121.5
Total B2B revenue
526.9
560.8
(6.0)
%
(3.9)
%
Total
$
1,103.9
$
1,176.4
(6.2)
%
(5.0)
%
Operating income (loss)
$
(188.1
)
$
113.6
(265.6)
%
Adjusted OIBDA
$
436.4
$
457.9
(4.7)
%
(1.7
%)
Operating income (loss) as a percentage of
revenue
(17.0
)%
9.7
%
Adjusted OIBDA as a percentage of
revenue
39.5
%
38.9
%
Proportionate Adjusted OIBDA
$
378.2
$
379.0
1.
Indicated growth rates are rebased for the
estimated impacts of the UTS acquisition, the transfer of certain
B2B operations in Puerto Rico from our C&W segment to our
Liberty Puerto Rico segment, the Seychelles disposal, the transfer
of our captive insurance operations from our C&W segment to our
corporate operations and FX.
The following table details the borrowing currency and U.S.
dollar equivalent of the nominal amount outstanding of C&W's
debt, finance lease obligations and cash and cash equivalents:
June 30,
March 31,
Facility Amount
2020
2020
in millions
Credit Facilities:
Revolving Credit Facility due 2023 (LIBOR
+ 3.25%)
$
50.0
$
25.0
$
25.0
Revolving Credit Facility due 2026 (LIBOR
+ 3.25%)
$
575.0
287.5
287.5
Term Loan Facility B-5 due 2028 (LIBOR +
2.25%)
$
1,510.0
1,510.0
1,510.0
Total Senior Secured Credit Facilities
1,822.5
1,822.5
Notes:
Senior Secured Notes:
5.75% USD Senior Secured Notes due
2027
$
550.0
550.0
550.0
Senior Notes:
7.5% USD Senior Notes due 2026
$
500.0
500.0
500.0
6.875% USD Senior Notes due 2027
$
1,220.0
1,220.0
1,220.0
Total Notes
2,270.0
2,270.0
Other Regional Debt
362.3
370.8
Vendor financing
89.7
86.0
Finance lease obligations
1.1
1.6
Total debt and finance lease
obligations
4,545.6
4,550.9
Premiums, discounts and deferred financing
costs, net
(30.4
)
(31.6
)
Total carrying amount of debt and
finance lease obligations
4,515.2
4,519.3
Less: cash and cash equivalents
756.4
687.0
Net carrying amount of debt and finance
lease obligations
$
3,758.8
$
3,832.3
- In March 2020, we borrowed $313 million under the C&W
Revolving Credit Facility, which is included on our condensed
consolidated balance sheet as of June 30, 2020. Subsequent to June
30, 2020, we repaid $213 million of the amount drawn under this
facility.
- At June 30, 2020, our total and proportionate net debt were
$3.8 billion and $3.7 billion, respectively, our Fully-swapped
Borrowing Cost was 5.6%, and the average tenor of our debt
obligations (excluding vendor financing) was approximately 6.8
years.
- Our portion of Adjusted OIBDA, after deducting the
noncontrolling interests' share, (“Proportionate Adjusted OIBDA”)
was $178 million in Q2 2020 and $195 million for Q2 2019.
- Based on Q2 results, our Proportionate Net Leverage Ratio was
4.5x, calculated in accordance with C&W's Credit Agreement. At
June 30, 2020, we had maximum undrawn commitments of $433 million,
including $121 million under our regional facilities. At June 30,
2020, the full amount of unused borrowing capacity under our credit
facilities (including regional facilities) was available to be
borrowed, both before and after completion of the June 30, 2020
compliance reporting requirements.
VTR Borrowing Group
The following table reflects preliminary unaudited selected
financial results for three and six months ended June 30, 2020 and
2019 in accordance with U.S. GAAP.
Three months ended
Six months ended
June 30,
June 30,
2020
2019
Change
2020
2019
Change
CLP in billions, except %
amounts
Revenue
158.7
165.3
(4.0
%)
324.4
328.1
(1.1
%)
Operating income
25.0
39.3
(36.4
%)
52.9
66.4
(20.3
%)
Adjusted OIBDA
60.2
68.5
(12.1
%)
124.3
131.7
(5.6
%)
Operating income as a percentage of
revenue
15.8
%
23.8
%
16.3
%
20.2
%
Adjusted OIBDA as a percentage of
revenue
37.9
%
41.4
%
38.3
%
40.1
%
The following table details the borrowing currency and Chilean
peso equivalent of the nominal amount outstanding of VTR's debt,
finance lease obligations and cash and cash equivalents:
June 30,
March 31,
2020
2020
Borrowing currency in
millions
CLP equivalent in
billions
Credit Facilities:
Term Loan Facility B-1 due 20231 (ICP2+
3.80%)
CLP
140,900
140.9
140.9
Term Loan Facility B-2 due 2023
(7.000%)
CLP
33,100
33.1
33.1
Revolving Credit Facility A due 2023
(TAB3+3.35%)
CLP
45,000
—
—
Revolving Credit Facility B due 20264
(LIBOR + 2.75%)
$
200.0
—
78.5
Total Senior Secured Credit Facilities
174.0
252.5
Senior Notes:
6.875% USD Senior Notes due 2024
$
1,260.0
1,034.8
1,075.8
Vendor Financing
68.4
67.6
Total debt
1,277.2
1,395.9
Deferred financing costs
(14.2
)
(14.3
)
Total carrying amount of debt
1,263.0
1,381.6
Less: cash and cash equivalents
273.4
180.1
Net carrying amount of debt
989.6
1,201.5
Exchange rate (CLP to $)
821.3
853.8
1. Under the terms of the credit agreement, VTR is obligated to
repay 50% of the outstanding aggregate principal amount of the Term
Loan Facility B-1 on November 23, 2022, with the remaining
principal amount due on May 23, 2023, which represents the ultimate
maturity date of the facility.
2. Índice de Cámara Promedio rate.
3. Tasa Activa Bancaria rate.
4. Includes a $1 million credit facility that matures on May 23,
2023. In June 2020, the commitment under the revolving credit
facility B was increased to $200 million and the term was extended
to June 15, 2026.
- At June 30, 2020, our Fully-swapped Borrowing Cost was 6.6% and
the average tenor of debt (excluding vendor financing) was
approximately 3.4 years. After adjusting for the July 2020 VTR
refinancing activity (as further described below), the average
tenor of debt would be approximately 7 years.
- Based on our results for Q2 2020, and subject to the completion
of the corresponding compliance reporting requirements, our
Consolidated Net Leverage ratio was 3.9x, calculated in accordance
with VTR's Credit Agreement.
- In June 2020, VTR repaid $92 million drawings under its
revolving credit facilities, it had made earlier in the year, and
increased the commitment under the VTR RCF – B facility to $200
million from $185 million and extended the term to 2026 from
2023.
- At June 30, 2020, we had maximum undrawn commitments of $200
million (CLP 164 billion) and CLP 45 billion. At June 30, 2020, the
full amount of unused borrowing capacity under our credit
facilities was available to be borrowed, both before and after
completion of the June 30, 2020 compliance reporting
requirements.
- In July 2020, we issued $600 million aggregate principal amount
of 5.125% senior secured notes due January 15, 2028 and $550
million aggregate principal amount of 6.375% senior notes due July
15, 2028. The net proceeds, together with proceeds received during
Q2 2020 from the unwinding of certain derivative instruments, were
used to refinance the $1,260 million 6.875% Senior Notes due 2024
in full, including transaction-related fees and expenses.
Liberty Puerto Rico (LPR) Borrowing
Group:
The following table details the nominal amount outstanding of
Liberty Puerto Rico's debt, cash and cash equivalents, and
restricted cash:
Facility amount
June 30, 2020
March 31, 2020
in millions
Revolving Credit Facility due 2025 (LIBOR
+ 3.50%)
$
125.0
$
62.5
$
62.5
Term Loan Facility due 2026 (LIBOR +
5.0%)
$
1,000.0
1,000.0
1,000.0
Senior Secured Notes due 2027 (6.75%)
$
1,290.0
1,290.0
1,200.0
Debt before discounts and deferred
financing costs
2,352.5
2,262.5
Discounts and deferred financing costs
(23.3
)
(25.9
)
Total carrying amount of debt
2,329.2
2,236.6
Less: cash, cash equivalents and
restricted cash
1,455.0
1,379.2
Net carrying amount of debt
$
874.2
$
857.4
- In May 2020, LCPR Senior Secured Financing Designated Activity
Company issued an additional $90 million aggregate principal
amount, at 102.5% of par, under the existing 2027 LPR Senior
Secured Notes indenture.
- In March 2020, we borrowed $63 million under the 2019 LPR
Revolving Credit Facility, which is included in cash and cash
equivalents on our condensed consolidated balance sheet as of June
30, 2020. Subsequent to June 30, 2020, we repaid in full the $63
million amount drawn under this facility.
- Based on our results for Q2 2020, and subject to the completion
of the corresponding compliance reporting requirements, our
Consolidated Net Leverage Ratio was 4.3x, calculated in accordance
with LPR’s Group Credit Agreement.
- At June 30, 2020, we had maximum undrawn commitments of $63
million. At June 30, 2020, the full amount of unused borrowing
capacity under our revolving credit facility was available to be
borrowed, both before and after completion of the June 30, 2020
compliance reporting requirements.
Cabletica Borrowing
Group:
The following table details the borrowing currency and Costa
Rican colón equivalent of the nominal amount outstanding of
Cabletica's debt and cash and cash equivalents:
June 30,
March 31,
2020
2020
Borrowing currency in
millions
CRC equivalent in
billions
Term Loan B-1 Facility due 20231 (LIBOR +
5.00%)
$
49.2
28.6
28.6
Term Loan B-2 Facility due 20231 (TBP2 +
6.00%)
CRC
43,177.4
43.2
43.2
Revolving Credit Facility due 2023 (LIBOR
+ 4.25%)
$
15.0
—
—
Debt before discounts and deferred
financing costs
71.8
71.8
Deferred financing costs
(1.9
)
(1.3
)
Total carrying amount of debt
69.9
70.5
Less: cash and cash equivalents
12.8
7.9
Net carrying amount of debt
57.1
62.6
Exchange rate (CRC to $)
581.1
581.0
1.
Under the terms of the credit agreement,
Cabletica is obligated to repay 50% of the outstanding aggregate
principal amounts of the Cabletica Term Loan B-1 Facility
and the Cabletica Term Loan B-2 Facility on April 5,
2023, with the remaining respective principal amounts due on
October 5, 2023, which represents the ultimate maturity date
of the facilities.
2.
Tasa Básica Pasiva rate.
- As part of the VTR refinancing activity mentioned above,
Liberty Latin America also announced its intention to contribute
its 80% stake in Cabletica S.A. into the VTR Finance N.V. credit
pool. The contribution is expected to be completed in Q1 2021.
Subscriber Tables
Consolidated Operating Data —
June 30, 2020
Homes Passed
Two-way Homes
Passed
Fixed-line Customer
Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Total Mobile
Subscribers
C&W:
Panama1
654,500
654,500
173,400
90,900
129,500
134,800
355,200
1,381,600
Jamaica
581,100
581,100
279,700
123,700
236,600
227,500
587,800
946,700
The Bahamas
120,900
120,900
36,400
6,300
23,500
35,500
65,300
180,300
Trinidad and Tobago
331,700
331,700
158,300
107,400
138,200
84,800
330,400
—
Barbados
140,400
140,400
82,000
31,900
67,400
71,400
170,700
113,300
Other
331,700
311,900
238,100
77,800
171,100
120,800
369,700
386,200
C&W Total
2,160,300
2,140,500
967,900
438,000
766,300
674,800
1,879,100
3,008,100
VTR/Cabletica:
VTR
3,725,700
3,298,000
1,536,800
1,096,500
1,350,000
529,100
2,975,600
301,600
Cabletica
612,000
606,100
263,700
209,800
205,700
22,500
438,000
—
Total VTR/Cabletica
4,337,700
3,904,100
1,800,500
1,306,300
1,555,700
551,600
3,413,600
301,600
Liberty Puerto Rico2
1,124,600
1,124,600
430,100
225,300
381,600
220,700
827,600
—
Total
7,622,600
7,169,200
3,198,500
1,969,600
2,703,600
1,447,100
6,120,300
3,309,700
Organic Subscriber Variance
Table — June 30, 2020 vs March 31, 2020
Homes Passed
Two-way Homes
Passed
Fixed-line Customer
Relationships
Video RGUs
Internet RGUs
Telephony RGUs
Total RGUs
Total Mobile
Subscribers
C&W:
Panama1
12,200
12,200
(21,400
)
(18,000
)
(11,800
)
(15,300
)
(45,100
)
(131,100
)
Jamaica
8,400
16,000
11,800
2,500
13,900
9,600
26,000
(107,300
)
The Bahamas
—
—
(2,600
)
100
300
(1,200
)
(800
)
(19,100
)
Trinidad and Tobago
1,500
1,500
(300
)
(1,400
)
(200
)
500
(1,100
)
—
Barbados
—
—
(600
)
400
(100
)
(900
)
(600
)
(9,800
)
Other
—
—
(3,400
)
(2,900
)
(400
)
(1,400
)
(4,700
)
(39,500
)
C&W Total
22,100
29,700
(16,500
)
(19,300
)
1,700
(8,700
)
(26,300
)
(306,800
)
VTR/Cabletica:
VTR
4,200
4,900
12,100
(2,600
)
18,600
(10,900
)
5,100
(3,300
)
Cabletica
7,100
7,100
4,700
2,400
4,900
(900
)
6,400
—
Total VTR/Cabletica
11,300
12,000
16,800
(200
)
23,500
(11,800
)
11,500
(3,300
)
Liberty Puerto Rico2
6,200
6,200
20,300
3,700
21,500
8,300
33,500
—
Total Organic Change
39,600
47,900
20,600
(15,800
)
46,700
(12,200
)
18,700
(310,100
)
Q2 2020
Adjustments:
Net Adjustments
—
—
—
—
—
—
—
—
Net Adds
39,600
47,900
20,600
(15,800
)
46,700
(12,200
)
18,700
(310,100
)
Mobile Subscribers
Consolidated Operating Data —
June 30, 2020
Q2 Organic Subscriber
Variance
Prepaid
Postpaid
Total
Prepaid
Postpaid
Total
C&W:
Panama1
1,263,100
118,500
1,381,600
(113,600
)
(17,500
)
(131,100
)
Jamaica
926,800
19,900
946,700
(107,100
)
(200
)
(107,300
)
The Bahamas
151,900
28,400
180,300
(20,700
)
1,600
(19,100
)
Barbados
84,500
28,800
113,300
(9,300
)
(500
)
(9,800
)
Other
343,500
42,700
386,200
(38,200
)
(1,300
)
(39,500
)
C&W Total
2,769,800
238,300
3,008,100
(288,900
)
(17,900
)
(306,800
)
VTR
11,700
289,900
301,600
1,800
(5,100
)
(3,300
)
Total / Net Adds
2,781,500
528,200
3,309,700
(287,100
)
(23,000
)
(310,100
)
1.
RGU balances do not include 75,800 fixed RGUs and 17,400 mobile
subscribers that, due to the impact of COVID-19, have not been
disconnected in accordance with our normal disconnect policy for
non-payment and continue to receive services. Accordingly,
organic changes set forth above reflect the impact of removing
these RGUs from our subscriber count.
2.
RGU balances do not include 4,400 fixed RGUs representing
customers that, due to the impact of COVID-19, have not been
disconnected in accordance with our normal disconnect policy for
non-payment and were moved to an "essential services plan", a basic
service plan. Accordingly, organic changes set forth above reflect
the impact of removing these RGUs from our subscriber count.
Glossary
ARPU – Average revenue per unit refers to the average
monthly subscription revenue (subscription revenue excludes
interconnect, mobile handset sales and late fees) per average
customer relationship or mobile subscriber, as applicable. ARPU per
average customer relationship is calculated by dividing the average
monthly subscription revenue from residential fixed and SOHO fixed
services by the average of the opening and closing balances for
customer relationships for the indicated period. ARPU per average
mobile subscriber is calculated by dividing the average monthly
mobile service revenue by the average of the opening and closing
balances for mobile subscribers for the indicated period. Unless
otherwise indicated, ARPU per customer relationship or mobile
subscriber is not adjusted for currency impacts. ARPU per average
RGU is calculated by dividing the average monthly subscription
revenue from the applicable residential fixed service by the
average of the opening and closing balances of the applicable RGUs
for the indicated period. Unless otherwise noted, ARPU in this
release is considered to be ARPU per average customer relationship
or mobile subscriber, as applicable. Customer relationships, mobile
subscribers and RGUs of entities acquired during the period are
normalized.
Consolidated Net Leverage Ratio (VTR) – Defined in
accordance with VTR's indenture for its senior notes, taking into
account the ratio of its outstanding indebtedness (including the
impact of its cross-currency swaps) less its cash and cash
equivalents to its annualized EBITDA from the most recent two
consecutive fiscal quarters.
Consolidated Net Leverage Ratio (LPR) – Defined in
accordance with LPR's Group Credit Agreement, taking into account
the ratio of its outstanding indebtedness (excluding any
indebtedness collateralized by escrow cash) less its cash and cash
equivalents (excluding any escrow cash) to its annualized EBITDA
from the most recent two consecutive fiscal quarters.
Customer Relationships – The number of customers who
receive at least one of our video, internet or telephony services
that we count as RGUs, without regard to which or to how many
services they subscribe. To the extent that RGU counts include
equivalent billing unit ("EBU") adjustments, we reflect
corresponding adjustments to our customer relationship counts. For
further information regarding our EBU calculation, see Additional
General Notes below. Customer relationships generally are counted
on a unique premises basis. Accordingly, if an individual receives
our services in two premises (e.g., a primary home and a vacation
home), that individual generally will count as two customer
relationships. We exclude mobile-only customers from customer
relationships.
Fully-swapped Borrowing Cost – Represents the weighted
average interest rate on our debt (excluding finance leases and
including vendor financing obligations), including the effects of
derivative instruments, original issue premiums or discounts, which
includes a discount on the convertible notes issued by Liberty
Latin America associated with a conversion option feature, and
commitment fees, but excluding the impact of financing costs.
Homes Passed – Homes, residential multiple dwelling units
or commercial units that can be connected to our networks without
materially extending the distribution plant, except for DTH homes.
Certain of our homes passed counts are based on census data that
can change based on either revisions to the data or from new census
results. We do not count homes passed for DTH.
Internet (Broadband) RGU – A home, residential multiple
dwelling unit or commercial unit that receives internet services
over our network.
Leverage – Our gross and net leverage ratios are defined
as total debt (total principal amount of debt and finance lease
obligations outstanding, net of projected derivative
principal-related cash payments (receipts)) and net debt to
annualized Adjusted OIBDA of the latest two quarters. Net debt is
defined as total debt (including the convertible notes) less cash,
cash equivalents and restricted cash held in escrow at Liberty
Puerto Rico that will be used to fund the AT&T Acquisition. For
purposes of these calculations, debt is measured using swapped
foreign currency rates, consistent with the covenant calculation
requirements of our subsidiary debt agreements.
Mobile Subscribers – Our mobile subscriber count
represents the number of active subscriber identification module
(“SIM”) cards in service rather than services provided. For
example, if a mobile subscriber has both a data and voice plan on a
smartphone this would equate to one mobile subscriber.
Alternatively, a subscriber who has a voice and data plan for a
mobile handset and a data plan for a laptop (via a dongle) would be
counted as two mobile subscribers. Customers who do not pay a
recurring monthly fee are excluded from our mobile telephony
subscriber counts after periods of inactivity ranging from 30 to 60
days, based on industry standards within the respective country. In
a number of countries, our mobile subscribers receive mobile
services pursuant to prepaid contracts.
NPS – Net promoter score.
Adjusted OIBDA Margin – Calculated by dividing Adjusted
OIBDA by total revenue for the applicable period.
Property and Equipment Addition Categories
- Customer Premises Equipment: Includes capitalizable equipment
and labor, materials and other costs directly associated with the
installation of such CPE;
- New Build & Upgrade: Includes capitalizable costs of
network equipment, materials, labor and other costs directly
associated with entering a new service area and upgrading our
existing network;
- Capacity: Includes capitalizable costs for network capacity
required for growth and services expansions from both existing and
new customers. This category covers Core and Access parts of the
network and includes, for example, fiber node splits,
upstream/downstream spectrum upgrades and optical equipment
additions in our international backbone connections;
- Baseline: Includes capitalizable costs of equipment, materials,
labor and other costs directly associated with maintaining and
supporting the business. Relates to areas such as network
improvement, property and facilities, technical sites, information
technology systems and fleet; and
- Product & Enablers: Discretionary capitalizable costs that
include investments (i) required to support, maintain, launch or
innovate in new customer products, and (ii) in infrastructure,
which drive operational efficiency over the long term.
Proportionate Net Leverage Ratio (C&W) – Calculated
in accordance with C&W's Credit Agreement, taking into account
the ratio of outstanding indebtedness (subject to certain
exclusions) less cash and cash equivalents to EBITDA (subject to
certain adjustments) for the last two quarters annualized, with
both indebtedness and EBITDA reduced proportionately to remove any
noncontrolling interests' share of the C&W group.
Revenue Generating Unit (RGU) – RGU is separately a video
RGU, internet RGU or telephony RGU. A home, residential multiple
dwelling unit, or commercial unit may contain one or more RGUs. For
example, if a residential customer in Chile subscribed to our video
service, fixed-line telephony service and broadband internet
service, the customer would constitute three RGUs. RGUs are
generally counted on a unique premises basis such that a given
premises does not count as more than one RGU for any given service.
On the other hand, if an individual receives one of our services in
two premises (e.g., a primary home and a vacation home), that
individual will count as two RGUs for that service. Each bundled
video, internet or telephony service is counted as a separate RGU
regardless of the nature of any bundling discount or promotion.
Non-paying subscribers are counted as RGUs during their free
promotional service period. Some of these subscribers may choose to
disconnect after their free service period. Services offered
without charge on a long-term basis (e.g., VIP subscribers or free
service to employees) generally are not counted as RGUs. We do not
include subscriptions to mobile services in our externally reported
RGU counts. In this regard, our RGU counts exclude our separately
reported postpaid and prepaid mobile subscribers.
SOHO – Small office/home office customers.
Telephony RGU – A home, residential multiple dwelling
unit or commercial unit that receives voice services over our
network. Telephony RGUs exclude mobile subscribers.
Two-way Homes Passed – Homes passed by those sections of
our networks that are technologically capable of providing two-way
services, including video, internet and telephony services.
U.S. GAAP – Generally accepted accounting principles in
the United States.
Video RGU – A home, residential multiple dwelling unit or
commercial unit that receives our video service over our network
primarily via a digital video signal while subscribing to any
recurring monthly service that requires the use of
encryption-enabling technology. Video RGUs that are not counted on
an EBU basis are generally counted on a unique premises basis. For
example, a subscriber with one or more set-top boxes that receives
our video service in one premises is generally counted as just one
RGU.
Additional General Notes
Most of our operations provide telephony, broadband internet,
data, video or other B2B services. Certain of our B2B service
revenue is derived from SOHO customers that pay a premium price to
receive enhanced service levels along with video, internet or
telephony services that are the same or similar to the mass
marketed products offered to our residential subscribers. All mass
marketed products provided to SOHO customers, whether or not
accompanied by enhanced service levels and/or premium prices, are
included in the respective RGU and customer counts of our
operations, with only those services provided at premium prices
considered to be “SOHO RGUs” or “SOHO customers.” To the extent our
existing customers upgrade from a residential product offering to a
SOHO product offering, the number of SOHO RGUs and SOHO customers
will increase, but there is no impact to our total RGU or customer
counts. With the exception of our B2B SOHO customers, we generally
do not count customers of B2B services as customers or RGUs for
external reporting purposes.
Certain of our residential and commercial RGUs are counted on an
EBU basis, including residential multiple dwelling units and
commercial establishments, such as bars, hotels, and hospitals, in
Chile and Puerto Rico. Our EBUs are generally calculated by
dividing the bulk price charged to accounts in an area by the most
prevalent price charged to non-bulk residential customers in that
market for the comparable tier of service. As such, we may
experience variances in our EBU counts solely as a result of
changes in rates.
While we take appropriate steps to ensure that subscriber and
homes passed statistics are presented on a consistent and accurate
basis at any given balance sheet date, the variability from country
to country in (i) the nature and pricing of products and services,
(ii) the distribution platform, (iii) billing systems, (iv) bad
debt collection experience and (v) other factors add complexity to
the subscriber and homes passed counting process. We periodically
review our subscriber and homes passed counting policies and
underlying systems to improve the accuracy and consistency of the
data reported on a prospective basis. Accordingly, we may from time
to time make appropriate adjustments to our subscriber and homes
passed statistics based on those reviews.
Non-GAAP Reconciliations
We include certain financial measures of Liberty Latin America
and its reportable segments in this press release that are
considered non-GAAP measures, including; (i) Adjusted OIBDA,
Adjusted OIBDA Margin and Adjusted OIBDA less P&E Additions;
(ii) Adjusted Free Cash Flows; and (iii) rebased revenue and
rebased Adjusted OIBDA growth rates. The following sections set
forth reconciliations of the nearest GAAP measure to our non-GAAP
measures as well as information on how and why management of the
Company believes such information is useful to an investor.
Adjusted OIBDA and Adjusted OIBDA less P&E
Additions
Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a
non-GAAP measure, are the primary measures used by our chief
operating decision maker to evaluate segment operating performance.
Adjusted OIBDA and Adjusted OIBDA less P&E Additions are also
key factors that are used by our internal decision makers to (i)
determine how to allocate resources to segments and (ii) evaluate
the effectiveness of our management for purposes of incentive
compensation plans. As we use the term, Adjusted OIBDA is defined
as operating income or loss before share-based compensation,
depreciation and amortization, provisions and provision releases
related to significant litigation and impairment, restructuring and
other operating items. Other operating items include (i) gains and
losses on the disposition of long-lived assets, (ii) third-party
costs directly associated with successful and unsuccessful
acquisitions and dispositions, including legal, advisory and due
diligence fees, as applicable, and (iii) other acquisition-related
items, such as gains and losses on the settlement of contingent
consideration. Our internal decision makers believe Adjusted OIBDA
and Adjusted OIBDA less P&E Additions are meaningful measures
because they represent a transparent view of our recurring
operating performance that is unaffected by our capital structure
and allows management to (i) readily view operating trends, (ii)
perform analytical comparisons and benchmarking between segments
and (iii) identify strategies to improve operating performance in
the different countries in which we operate. We believe our
Adjusted OIBDA and Adjusted OIBDA less P&E Additions measures
are useful to investors because they are one of the bases for
comparing our performance with the performance of other companies
in the same or similar industries, although our measures may not be
directly comparable to similar measures used by other public
companies. Adjusted OIBDA and Adjusted OIBDA less P&E Additions
should be viewed as measures of operating performance that are a
supplement to, and not a substitute for, operating income or loss,
net earnings or loss and other U.S. GAAP measures of income. A
reconciliation of our operating income (loss) to total Adjusted
OIBDA and Adjusted OIBDA less P&E Additions are presented in
the following table:
Three months ended
Six months ended
June 30,
June 30,
2020
2019
2020
2019
in millions
Operating income (loss)
$
(206.0)
$
143.5
$
(98.2)
$
256.8
Share-based compensation expense
23.5
15.4
47.3
30.1
Depreciation and amortization
216.4
222.0
429.9
439.3
Impairment, restructuring and other
operating items, net
298.7
6.5
317.5
27.0
Adjusted OIBDA
332.6
387.4
696.5
753.2
Property and equipment additions
153.3
166.1
286.2
305.2
Adjusted OIBDA less P&E additions
$
179.3
$
221.3
$
410.3
$
448.0
Operating income (loss) margin1
(24.3
)%
14.6
%
(5.5
)%
13.3
%
Adjusted OIBDA margin2
39.2
%
39.4
%
39.1
%
39.1
%
Adjusted Free Cash Flow Definition and Reconciliation
We define Adjusted Free Cash Flows (Adjusted FCF), a non-GAAP
measure, as net cash provided by our operating activities, plus (i)
cash payments for third-party costs directly associated with
successful and unsuccessful acquisitions and dispositions, (ii)
expenses financed by an intermediary, (iii) insurance recoveries
related to damaged and destroyed property and equipment, and (iv)
certain net interest payments (receipts) incurred or received,
including associated derivative instrument payments and receipts,
in advance of a significant acquisition, less (a) capital
expenditures, (b) distributions to noncontrolling interest owners,
(c) principal payments on amounts financed by vendors and
intermediaries and (d) principal payments on finance leases. As a
result of the pending AT&T Acquisition, we have changed the way
we define Adjusted FCF effective December 31, 2019 to adjust (i)
for pre-acquisition interest incurred on the incremental debt
issued in advance of the AT&T Acquisition, (ii) to exclude
pre-acquisition interest earned related to the AT&T Acquisition
Restricted Cash that will be used to fund a portion of the AT&T
Acquisition and (iii) the impact of associated pre-acquisition
derivative contracts. As the debt was incurred directly as a result
of the pending acquisition and will be supported by cash flows of
the acquisition from the date of the closing, we believe this
results in the most meaningful presentation of our Adjusted FCF. We
believe that our presentation of Adjusted FCF provides useful
information to our investors because this measure can be used to
gauge our ability to service debt and fund new investment
opportunities. Adjusted FCF should not be understood to represent
our ability to fund discretionary amounts, as we have various
mandatory and contractual obligations, including debt repayments,
which are not deducted to arrive at this amount. Investors should
view Adjusted FCF as a supplement to, and not a substitute for,
U.S. GAAP measures of liquidity included in our condensed
consolidated statements of cash flows.
The following table provides the reconciliation of our net cash
provided by operating activities to Adjusted FCF for the indicated
periods:
Three months ended
Six months ended
June 30,
June 30,
2020
2019
2020
2019
in millions
Net cash provided by operating
activities
$
238.7
$
243.6
$
353.6
$
431.4
Cash payments for direct acquisition and
disposition costs
2.8
1.9
4.2
0.6
Expenses financed by an intermediary1
19.6
25.5
52.1
56.8
Capital expenditures
(122.2
)
(135.8
)
(271.4
)
(295.4
)
Recovery on damaged or destroyed property
and equipment
—
—
—
33.9
Distributions to noncontrolling interest
owners
—
(2.5
)
(0.7
)
(2.5
)
Principal payments on amounts financed by
vendors and intermediaries
(47.9
)
(63.6
)
(91.7
)
(105.9
)
Pre-acquisition net interest payments2
39.2
—
36.2
—
Principal payments on finance leases
(0.5
)
(1.1
)
(1.1
)
(2.5
)
Adjusted FCF
$
129.7
$
68.0
$
81.2
$
116.4
- For purposes of our condensed consolidated statements of cash
flows, expenses, including value-added taxes, financed by an
intermediary are treated as hypothetical operating cash outflows
and hypothetical financing cash inflows when the expenses are
incurred. When we pay the financing intermediary, we record
financing cash outflows in our condensed consolidated statements of
cash flows. For purposes of our Adjusted FCF definition, we add
back the hypothetical operating cash outflows when these financed
expenses are incurred and deduct the financing cash outflows when
we pay the financing intermediary.
- Amount primarily represents interest paid on pre-acquisition
debt related to the AT&T Acquisition, net of interest received
on the AT&T Acquisition Restricted Cash.
Rebase Information
Rebase growth rates are a non-GAAP measure. For purposes of
calculating rebased growth rates on a comparable basis for all
businesses that we owned during 2020, we have adjusted our
historical revenue and Adjusted OIBDA (i) to include the
pre-acquisition revenue and Adjusted OIBDA of UTS that was acquired
during 2019 in our rebased amounts for the six months ended June
30, 2019, (ii) to exclude the revenue and Adjusted OIBDA of our
Seychelles operations that was disposed of during 2019 from our
rebased amounts for three and six months ended June 30, 2019, (iii)
to reflect the translation of our rebased amounts for three and six
months ended June 30, 2019 at the applicable average foreign
currency exchange rates that were used to translate our results for
three and six months ended June 30, 2020, and (iv) with respect to
each of our reportable segments, to reflect (a) the April 1, 2019
transfer of a small B2B operation in Puerto Rico from our C&W
segment to our Liberty Puerto Rico segment, and (b) the January 1,
2020 transfer of our captive insurance operation from our C&W
segment to our corporate operations. We have reflected the revenue
and Adjusted OIBDA of UTS in our 2019 rebased amounts based on what
we believe to be the most reliable information that is currently
available to us (generally pre-acquisition financial statements),
as adjusted for the estimated effects of (a) any significant
differences between U.S. GAAP and local generally accepted
accounting principles, (b) any significant effects of acquisition
accounting adjustments, (c) any significant differences between our
accounting policies and those of the acquired entities and (d)
other items we deem appropriate. We do not adjust pre-acquisition
periods to eliminate nonrecurring items or to give retroactive
effect to any changes in estimates that might be implemented during
post-acquisition periods. As we did not own or operate UTS during
the pre-acquisition periods, no assurance can be given that we have
identified all adjustments necessary to present their revenue and
Adjusted OIBDA on a basis that is comparable to the corresponding
post-acquisition amounts that are included in our historical
results or that the pre-acquisition financial statements we have
relied upon do not contain undetected errors. In addition, the
rebased growth percentages are not necessarily indicative of the
revenue and Adjusted OIBDA that would have occurred if these
transactions had occurred on the dates assumed for purposes of
calculating our rebased amounts or the revenue and Adjusted OIBDA
that will occur in the future. The rebased growth percentages have
been presented as a basis for assessing growth rates on a
comparable basis and should be viewed as measures of operating
performance that are a supplement to, and not a substitute for,
U.S. GAAP reported growth rates.
The following tables provide the aforementioned adjustments made
to the revenue and Adjusted OIBDA amounts for three and six months
ended June 30, 2019 to derive our rebased growth rates. Due to
rounding, certain rebased growth rate percentages may not
recalculate.
The following tables set forth the reconciliations from reported
revenue to rebased revenue and related change calculations.
Three months ended June 30,
2019
C&W
VTR/Cabletica
Liberty Puerto Rico
Intersegment
eliminations
Total
(In millions)
Revenue - Reported
$
606.6
$
274.5
$
103.8
$
(2.0
)
$
982.9
Rebase adjustments:
Acquisition
—
—
—
—
—
Disposal
(14.3
)
—
—
—
(14.3
)
Foreign currency
(10.3
)
(39.6
)
—
—
(49.9
)
Revenue - Rebased
$
582.0
$
234.9
$
103.8
$
(2.0
)
$
918.7
Reported percentage change1
(15.1
)%
(17.0
)%
5.1
%
N/A
(13.6
)%
Rebased percentage change2
(11.5
)%
(3.1
)%
5.1
%
N/A
(7.7
)%
Six months ended June 30,
2019
C&W
VTR/Cabletica
Liberty Puerto Rico
Intersegment
eliminations
Total
(In millions)
Revenue - Reported
$
1,176.4
$
551.0
$
202.4
$
(4.2
)
$
1,925.6
Rebase adjustments:
Acquisition
34.0
—
—
—
34.0
Disposal
(29.2
)
—
—
—
(29.2
)
Foreign currency
(17.6
)
(79.0
)
—
—
(96.6
)
Other1
(2.7
)
—
2.7
—
—
Revenue - Rebased
$
1,160.9
$
472.0
$
205.1
$
(4.2
)
$
1,833.8
Reported percentage change2
(6.2
)%
(15.1
)%
5.6
%
N/A
(7.6
)%
Rebased percentage change3
(5.0
)%
(0.9
)%
4.2
%
N/A
(3.0
)%
- Represents the April 1, 2019 transfer of a small B2B operation
in Puerto Rico that was transferred from our C&W segment to our
Liberty Puerto Rico segment.
- Reported percentage change is calculated as current period
revenue less prior period revenue divided by prior period
revenue.
- Rebased percentage change is calculated as current period
revenue less rebased prior period revenue divided by prior period
rebased revenue.
The following tables set forth the reconciliations from reported
Adjusted OIBDA to rebased Adjusted OIBDA and related change
calculations.
Three months ended June 30,
2019
C&W
VTR/Cabletica
Liberty Puerto Rico
Corporate
Total
(In millions)
Adjusted OIBDA - Reported
$
235.4
$
112.3
$
51.6
$
(11.9)
$
387.4
Rebased adjustments:
Acquisition
—
—
—
—
—
Disposal
(5.4)
—
—
—
(5.4)
Foreign currency
(3.4)
(16.4)
—
—
(19.8)
Other1
(1.3)
—
—
1.3
—
Adjusted OIBDA - Rebased
$
225.3
$
95.9
$
51.6
$
(10.6)
$
362.2
Reported percentage change2
(13.5)
%
(23.2)
%
1.6
%
(18.5)
%
(14.1)
%
Rebased percentage change3
(9.5)
%
(10.1)
%
1.6
%
(8.4)
%
(8.1)
%
Six months ended June 30,
2019
C&W
VTR/Cabletica
Liberty Puerto Rico
Corporate
Total
(In millions)
Adjusted OIBDA - Reported
$
457.9
$
219.2
$
99.5
$
(23.4)
$
753.2
Rebased adjustments:
Acquisition
6.9
—
—
—
6.9
Disposal
(11.0)
—
—
—
(11.0)
Foreign currency
(5.8)
(31.7)
—
—
(37.5)
Other1
(3.8)
—
0.7
3.1
—
Adjusted OIBDA - Rebased
$
444.2
$
187.5
$
100.2
$
(20.3)
$
711.6
Reported percentage change2
(4.7)
%
(18.0)
%
3.4
%
(3.8)
%
(7.5)
%
Rebased percentage change3
(1.7)
%
(4.2)
%
2.6
%
10.6
%
(2.1)
%
- Represents the April 1, 2019 transfer of a small B2B operation
in Puerto Rico that was transferred from our C&W segment to our
Liberty Puerto Rico segment, and the January 1, 2020 transfer of
our captive insurance operation from our C&W segment to our
corporate operation.
- Reported percentage change is calculated as current period
Adjusted OIBDA less prior period Adjusted OIBDA divided by prior
period Adjusted OIBDA.
- Rebased percentage change is calculated as current period
Adjusted OIBDA less rebased prior period Adjusted OIBDA divided by
prior period rebased Adjusted OIBDA.
The following tables set forth the reconciliations from reported
revenue by product for our C&W segment to rebased revenue by
product and related change calculations.
Three months ended June 30,
2019
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
(In millions)
Revenue by product - Reported
$
153.9
$
164.3
$
318.2
$
288.4
$
606.6
Rebase adjustments:
Acquisition
—
—
—
—
—
Disposal
(2.6)
(5.9)
(8.5)
(5.8)
(14.3)
Foreign currency
(1.8)
(1.7)
(3.5)
(6.8)
(10.3)
Other1
—
—
—
—
—
Revenue by product - Rebased
$
149.5
$
156.7
$
306.2
$
275.8
$
582.0
Reported percentage change2
(3.4)
%
(25.3)
%
(14.7)
%
(15.4)
%
(15.1)
%
Rebased percentage change3
(0.5)
%
(21.7)
%
(11.4)
%
(11.7)
%
(11.5)
%
Six months ended June 30,
2019
Residential fixed
revenue
Residential mobile
revenue
Total residential
revenue
B2B revenue
Total revenue
(In millions)
Revenue by product - Reported
$
297.3
$
318.3
$
615.6
$
560.8
$
1,176.4
Rebase adjustments:
Acquisition
10.3
10.8
21.1
12.9
34.0
Disposal
(5.2)
(11.7)
(16.9)
(12.3)
(29.2)
Foreign currency
(3.0)
(2.9)
(5.9)
(11.7)
(17.6)
Other1
—
—
—
(2.7)
(2.7)
Revenue by product - Rebased
$
299.4
$
314.5
$
613.9
$
547.0
$
1,160.9
Reported percentage change2
2.9
%
(14.8)
%
(6.3)
%
(6.0)
%
(6.2)
%
Rebased percentage change3
2.1
%
(13.8)
%
(6.0)
%
(3.9)
%
(5.0)
%
- Represents the April 1, 2019 transfer of a small B2B operation
in Puerto Rico that was transferred from our C&W segment to our
Liberty Puerto Rico segment.
- Reported percentage change is calculated as current period
revenue less prior period revenue divided by prior period
revenue.
- Rebased percentage change is calculated as current period
revenue less rebased prior period revenue divided by prior period
rebased revenue.
Non-GAAP Reconciliations for Borrowing Groups
We provide certain financial measures in this press release of
our borrowing groups. The financial statements of each of our
borrowing groups are prepared in accordance with U.S. GAAP. We
include certain financial measures for our borrowing group in this
press release that are considered non-GAAP measures, including: (i)
Adjusted OIBDA; (ii) Adjusted OIBDA Margin; and (iii) Proportionate
Adjusted OIBDA.
Adjusted OIBDA by Borrowing Group
Adjusted OIBDA and proportionate Adjusted OIBDA at a borrowing
group level are non-GAAP measures. Adjusted OIBDA is defined as
operating income or loss before share-based compensation,
depreciation and amortization, related-party fees and allocations,
provisions and provision releases related to significant litigation
and impairment, restructuring and other operating items.
Proportionate Adjusted OIBDA is defined as Adjusted OIBDA less the
noncontrolling interests' share of Adjusted OIBDA. We believe these
measures at the borrowing group level are useful to investors
because they are one of the bases for comparing our performance
with the performance of other companies in the same or similar
industries, although our measures may not be directly comparable to
similar measures used by other public companies. These measures
should be viewed as measures of operating performance that are a
supplement to, and not a substitute for, operating income or loss,
net earnings or loss and other U.S. GAAP measures of income.
A reconciliation of C&W's operating income (loss) to total
Adjusted OIBDA and Proportionate Adjusted OIBDA is presented in the
following table:
Three months ended
Six months ended
June 30,
June 30,
2020
2019
2020
2019
in millions
Operating income (loss)
$
(245.6
)
$
61.3
$
(188.1
)
$
113.6
Share-based compensation expense
7.9
5.2
15.3
8.9
Depreciation and amortization
155.9
155.7
303.5
306.3
Related-party fees and allocations
6.8
7.8
17.8
15.7
Impairment, restructuring and other
operating items, net
278.6
5.4
287.9
13.4
Total Adjusted OIBDA
203.6
235.4
436.4
457.9
Noncontrolling interests' share of
Adjusted OIBDA
26.1
40.6
58.2
78.9
Proportionate Adjusted OIBDA
$
177.5
$
194.8
$
378.2
$
379.0
A reconciliation of VTR's operating income to total Adjusted
OIBDA is presented in the following table:
Three months ended
Six months ended
June 30,
June 30,
2020
2019
2020
2019
CLP in billions
Operating income
25.0
39.3
52.9
66.4
Share-based compensation expense
1.6
1.0
3.2
1.9
Related-party fees and allocations
1.9
1.4
5.7
3.6
Depreciation
30.2
26.6
59.5
52.6
Impairment, restructuring and other
operating items, net
1.5
0.2
3.0
7.2
Total Adjusted OIBDA
60.2
68.5
124.3
131.7
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200805006025/en/
Investor Relations Kunal Patel ir@lla.com Corporate
Communications Claudia Restrepo llacommunications@lla.com
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