Good morning, ladies and gentlemen and thank you for standing by. Today’s call is being recorded. I’ll now turn the call over to Sean Fitzgerald, VP of Tax of Liberty Latin America.

Good morning and welcome to Liberty Latin America’s first quarter 2025 investor call. At this time, all participants are in listen-only mode. Today’s call presentation materials can be found under the Investor Relations section of Liberty Latin America’s website at www.lla.com. [Operator Instructions] As a reminder, this call is being recorded. Today’s remarks may include forward-looking statements, including the company’s expectations with respect to its outlook and future growth prospects and other information and statements that are not historical facts. Actual results may differ materially from those expressed or implied by these statements. For more information, please refer to the risk factors discussed in Liberty Latin America’s most recently filed annual report on Form 10-K and quarterly report on Form 10-Q, along with the associated press release. Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the Investors section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Sean, and welcome, everyone, to Liberty Latin America’s first quarter 2025 results presentation. I’ll begin with our group highlights and an overview of our operating results by credit silo. Chris Noyes, our CFO, will then follow with a review of the company’s financial performance. After that, we will get straight to your questions. As always, I’m joined by my executive team from across our operations. I’ll invite them to contribute as needed during the Q&A, following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com. Starting on Slide 4 and our highlights for the year. In the first quarter, we added 44,000 broadband and postpaid mobile subscribers in total. We saw notable progress on postpaid mobile in Costa Rica as well as across our Caribbean operations. Our broadband and postpaid strategy remains underpinned by our fixed mobile convergence efforts across the group. In our most successful markets, FMC penetration is now over 30%. This is driving a lower churn and a more predictable revenue profile. We reported group adjusted OIBDA rebased growth of 8% year-over-year in Q1. This was driven by double-digit growth in C&W Caribbean and C&W Panama, contributing to a very strong performance for our C&W silo. Our cost management efforts created a flywheel in driving margin expansion across the company. At the full year results, we discussed an outlook for lower capital intensity across the group in ‘25 and ‘26, and we are starting to see this coming through as well, with lower P&E additions in Q1 than prior year’s period, driving growth of adjusted OIBDA, less P&E additions of 20% year-over-year. Turning to Slide 6, I’ll begin our operating review with our Cable & Wireless credit silo, which had…

Thanks, Balan. I’ll now take you through our financial performance in greater detail, starting on Slide 14. Q1 revenue was 2% lower on a rebased basis at $1.1 billion. We saw positive momentum in C&W Panama, Liberty Costa Rica and Liberty Networks, which was more than offset by a decline in Liberty Puerto Rico. In fact, our non-Puerto Rican operations, which account for over 70% of our consolidated revenue, grew revenue by 2% year-over-year collectively on a rebased basis. Turning to adjusted OIBDA, we reported a rebased increase of 8% to $407 million, with 3 of our 5 operating segments posting year-over-year rebased growth, including Liberty Puerto Rico. Supporting our growth is operating leverage, as Balan flagged. We have embarked upon a range of cost-out activities across each of our operations, and this has positively impacted our consolidated adjusted OIBDA margin, which increased over 300 basis points compared to Q1 2024. In the third chart, we highlight an important metric for us, which is adjusted OIBDA less P&E additions. We increased this by $47 million to $286 million in Q1 or 26% of revenue as compared to 22% of revenue in last year’s Q1. The year-over-year improvement is reflective of the higher adjusted OIBDA margin and lower P&E additions, which amounted to 11% of revenue in Q1. Moving to the last section. Adjusted FCF before partner distributions was $46 million better, resulting in a negative $103 million for Q1 2025. Combined with third-party distributions to our partners, our reported adjusted FCF was a negative $133 million. Our first quarter results are always impacted by seasonal working capital movements, in part due to the phasing of spend with our vendors. Slide 15 recaps our C&W credit silo results for Q1, which consists of C&W Caribbean, CWP and Liberty Networks. Starting with…

[Operator Instructions] Our first question is from Vitor Tomita of Goldman Sachs. Your line is now open. Please go ahead.

Good morning all and thanks for taking our questions. Two questions from our side. The first one is on Puerto Rico. If you could give us a bit more color on the competitive environment there, how aggressive competitors are being right now in terms of promotions and handset discounts in particular? And our second question would be on CapEx. You previously provided a guidance of – that was lowered to 14% CapEx in 2025 and 2026. Do you still expect that 14% CapEx to sales? And could you give some more color on how that might be distributed across regions? Thank you very much.

Sure. Thanks for the question. I will answer your second question first on the CapEx. The CapEx of 14% is something that we will hit in ‘25 and ‘26. And it is quite equally distributed across the business. For many reasons, it wasn’t just by luck, that’s how it played out. It’s the level of maturity in all of our businesses where we are doing both our fiber-to-the-home upgrade and our mobile upgrades are reaching to about the same point. So, we are very confident on that 14%. On the competitive environment in Puerto Rico, essentially, on the fixed side, we compete with Claro. And on the mobile, we compete with Claro and T-Mobile. And of all the three mobile operators here, clearly, T-Mobile is the most aggressive on their handset subsidies. And that’s the case across Mainland USA, as well the promotions here in Puerto Rico are similar. Our view is that – and what we have seen is that they haven’t gotten any more aggressive than what they have been. And as a matter of fact, I think with all the tariff issues, people may dial it back a bit on subsidies, but we haven’t seen that either. Right now, the subsidy issue is not what worries us at all. We are doing pretty well there. I think what we need to do is improve on both our customer service and as well as our cost structure here in Puerto Rico. That’s what we are focused on.

Clear. Thank you very much.

The next question is from Chris Hoare of New Street Research. Chris, your line is now open. Please go ahead.

Yes. Thank you and thanks for the opportunity as well. Can I just follow-up on the CapEx question, specifically in Puerto Rico? I think your CapEx there was down 30% on a year-over-year basis to sort of around 11% of service revenues. And I am just wondering if that is a sustainable level for Puerto Rico going forward or whether it’s going to trend back towards the kind of group average you talked about 14%. And then just following up on that, I appreciate you are still sort of a year, 15 months away from the refinancing in Puerto Rico. But I just wonder if you can say anything about whether or not you see the opportunity to use any of the assets within Puerto Rico to help build a stronger balance sheet as you head towards the refinancing.

Sure. On the first question on the CapEx, the way we report the segment CapEx, it’s CapEx that’s actually spent by the local operating team here in Puerto Rico. We do have CapEx spent for Puerto Rico at the group level. As an example, our digital platforms that consume CapEx as well is spent at the corporate level, but allocated to Puerto Rico is being done for Puerto Rico. There are some other spends that we also do at the corporate level, like some of the centralized platforms on like our wireless core networks, etcetera, that are allocated outside of Puerto Rico, but really, it’s Puerto Rico CapEx. So, if I look at the overall CapEx for the year, Puerto Rico is trending closer to the mid to high-15% range. So, we are not under-spending in Puerto Rico. We are actually doing a pretty good job here, I think especially in the mobile network. As a matter of fact, as you know, last year, we bought the spectrum from DISH, and we are firing that up this summer and all that 600 megahertz spectrum gets put into the network. And that also requires CapEx. So, we are not shying away from that. On your second question on the refinancing, I am going to ask Chris to jump in here and give you some color.

Yes. I mean I think as I mentioned, the focus in the business today is to improve the operations and the financial results. So, we are best positioned in ‘26 and mid to late ‘26 to look to refinance the debt. Certainly, the work that we are doing in both the mobile and the fixed business should help crystallize value and improve the value of each of those businesses. And I think that’s the focus of the management team at this point.

Okay.

The next question comes from Michael Rollins of Citigroup. Michael, your line is now open. Please go ahead.

Hi. Good morning. Thank you for taking the questions. This is Jose Herrera on Mike Rollins’ team. First question was within the prior multiyear guide provided, how much of that growth was coming from Puerto Rico relative to the rest of the asset portfolio? And then secondly, if the Puerto Rico business needs additional funding, will Liberty Latin America fund the business from the parent balance sheet, or does Puerto Rico need to fund it within its own capital structure? Thank you.

Sure. On the free cash flow, we are not breaking down the percentages for each segment in our business. Suffice to say, you can see from the operating results that the rest of Liberty Latin America is on fire. And so when we did the guidance a year ago, we did not anticipate some of the challenges in Puerto Rico and at least to the extent that we actually experienced it. And then when we got into the end of the year, we kind of indicated that because we had a lot of buffers in our free cash flow beyond the $1 billion, but it got kind of eaten up over the year in ‘24. And when we got into the beginning of the year, as we looked at our budgets, etcetera, we were very close. So, everything had to be priced to perfection, and we came out and said, you know what, we still think it’s right there. But then the – as the first quarter started to progress, we looked at some of the numbers and trajectory out the first quarter, the net add performance and we go, everything needs to be priced to perfection, and it’s not working to perfection here in Puerto Rico, not right now. We are still pretty optimistic in the second half of turning around a lot of things. But clearly, having that information on where things are at Puerto Rico, we decided, let’s pull the guidance. But I can tell you that the rest of our business and even Puerto Rico over time, it’s going to get – Puerto Rico is going to get better and the rest of the businesses are throwing off cash. You can see that in our numbers. And your second question around the capital structure. Listen, we have the silos for a reason. We paid up for the silos. And we are going to treat these all as separate credit silos. And the parent will decide strictly on the capital allocation methodology that we have in the Liberty Way. And then we will make decisions on funding, whether it’s a credit silo or funding a buyback or funding anything based strictly on how we look at the different opportunities in front of us. And I know I am being cryptic, but you should hang on to the fact that it is a separate credit silo, and we treat it as such.

[Operator Instructions] The next question is from Matthew Harrigan of The Benchmark Company. Matthew, your line is now open. Please go ahead.

Thanks Balan. I think a number of years ago, people were quite happy with how Puerto Rico was performing in the context of all the headlines on net migration and the debt issues and some of the political issues. And I know you can’t just do an econometric model on a country and figure out where our telecom business is going to fare. But when you look at Federal subsidies, given everything going on with the Trump administration and net migration and on the positive side, Puerto Rico has a very nice manufacturing base relative to some other – obviously, it’s a territory rather than the state, but relative to other U.S. states, how helped or hindered are you by the macro outlook in Puerto Rico? And I suspect you are not going to give a definitive number, but any sense for what you are trying to motivate your operating guys to achieve on a monthly EBITDA level aspirationally, even if it’s not guidance relative to where you were before? Thank you.

Sure. Thanks Matt. Let’s start with the Puerto Rico macros. It is actually a good market. Competitively, like I said, 2-player fixed, 3-player mobile and very rational value and value creation type focused competitors. So, you want to be in a market like that. It’s all U.S. dollars, obviously. And if you look at the net population, it’s held steady. And it’s a robust great functioning state of the United States, even though it’s not formally a state, so all that good. Your question on back ‘21, ‘22, by the way, the FCCs we have – and AT&T, when we bought this business had a lot of FCC funding. And that slowly declined over the last 2 years, 3 years. It’s part of the revenue decline. Not all of our revenue declines happened because of mobile losses. There were a lot of FCC revenues that declined as well. And we are really, at this point, not too dependent on any government subsidies, even though there are still some kind of like the RDOF in the United States, it’s called Uniendo here in Puerto Rico. And so we do have some RDOF type funding, but we are putting in capital into those projects. So, in many ways, great market, great macros, great competitive environment, we are not too dependent on the government here, and the business is it is what it is today. Now, what could it be, with that kind of a macro environment, and by the way, we have the best mobile network here. You go anywhere, we have the best coverage. And like I said, we are going to fire up some 600 megahertz spectrum here in a couple of months. We will have even bigger and deeper penetration with that spectrum. We have the best fixed network.…

Apart from the FCC subsidies, which is – it sounds like it’s de minimis or not that big a deal at this point. Are you very concerned about the Trump administration withholding support for the economy of the island given how maverick Trump can be, I honestly don’t know how much Federal support there is to Puerto Rico, not on an FCC basis, but in terms of just upholding the general economy.

We don’t see it here. By the way, the Governor of Puerto Rico is a strong Trump supporter. I am going to be visiting with them here soon. Listen, there is a lot of things with the Federal government that really I can’t predict here, and I don’t think anybody can. They will do what they need to do, but I haven’t heard anything officially or even unofficially other than rumors in the media about them wanting or not wanting to help Puerto Rico. We don’t see that on the ground. I am here a lot, and we don’t see that. Nobody talks about it here on the ground either.

Sorry, I just try to make you play Treasury Secretary or whatever. Thanks.

The next question is from Leonardo Curtidor of Scotiabank. Leonardo, your line is now open. Please go ahead.

Hi. Thank you for taking my questions. I have two. The first, work-based compensation was up 26% year-over-year at $34 million. I was just wondering if you are expecting SBC for the full year to trend in line with Q1 and if there will be some buybacks to offset the new shares? Additionally, my second question, there was significant refinancing activity this quarter and average borrowing costs were slightly up to 6.5% from 6.2%. Do you have an estimate on cash interest expenses this year, considering that it was close to $620 million last year? Thank you.

Yes. Go ahead Chris.

Yes. On the interest, the weighted average is higher. That reflects the refinancings. We did $3.3 billion of refinancing over the last nine months, including a couple of deals in Q1 on the Cable & Wireless credit silo. So, the average rate did tick up. So, that would be – as you think about interest expense impact, it would be higher on a year-over-year basis. But I would focus you as well to look at the swap portfolio. So, we are hedged on floating rate exposure. And you can factor that in beyond just the cash interest. There is an offset. And then as it relates to stock comp, we typically have grants happened in the first half of the year. And I mean what – how I would look at it is continue to kind of run it out, not dissimilar to prior years, okay.

That is perfect. Thank you.

The important part about the refinancing is really the tenor. And Chris and the treasury team have done a tremendous job pushing the wall out. Any other?

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

Thank you, operator and thank you everybody on the call. The business is doing really well. You can see it from the numbers. Now, we did hold guidance, and I know there will be a reaction to that. But I think it’s – this is important for us that when we look at stuff and as soon as we know it, we want to make sure our credibility is also strong. And I know to a certain degree, there has been challenges in our Puerto Rico business. And over the last year, it was very hard for us internally to predict some of the trajectory of that business. But we are getting – this is, we are getting a strong handle on everything here, and now we see things very clearly, and we see a very clear path as well. It is going to take time, though. We have to be patient. And in Puerto Rico, it’s going to take time. But you can see from the rest of our businesses, there was a time when Panama was not doing great. Cable & Wireless, the Caribbean Islands was not doing great. Any one of our operations, and we focus on it and operating-wise, we fix it, and they become really strong flywheels. And I see the same thing here for Puerto Rico. Yes, we got into a jam. We are going to get out of this jam, and we are going to really grow this business. And I am quite positive about that. So, with that, I want to thank you again for your support, and we will talk to you the next quarter.

Ladies and gentlemen, this concludes the Liberty Latin America’s first quarter 2025 investor call. As a reminder, a replay of the call will be available in the Investor Relations section of Liberty Latin America’s website at www.lla.com. There you can also find a copy of today’s presentation materials.