Liberty Latin Americ -b Aktie

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 Mauricio Romero, VP of AI and Analytics, Liberty Latin America.

Good morning, and welcome to Liberty Latin America's First Quarter 2026 Investor Call. [Operator Instructions] Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com.

Following today's formal presentation, instructions will be given for a question and answer session. As a reminder, this call is being recorded.

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 disclaim 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 Investor section of our website.

I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Mauricio, and welcome, everyone, to Liberty Latin America's First Quarter 2026 Results Presentation. I will be running through our group highlights and an overview of our operating results before Chris Noyes, our CFO, reviews the company's financial performance. We'll then get straight to your questions.

As always, I'm joined by my executive team from across our operations, and 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. Our business started 2026 with a very solid performance. We added 50,000 mobile postpaid subscribers with all segments across the group contributing. Growth continues to be supported by fixed mobile convergence efforts and continuing prepaid to postpaid migration.

We reported $405 million of adjusted OIBDA in Q1 2026. This result came in ahead of our own expectations with Jamaica and Liberty Caribbean contributing significantly to this beat. While year-over-year momentum in adjusted OIBDA doesn't appear as strong as prior quarters, this reflected the combination of: 1, a full quarter of impact from Hurricane Melissa; and 2, phasing on B2B, including the timing of projects, revenues and costs at Liberty Networks. We anticipate diminishing year-over-year headwinds and revenue growth throughout the remainder of the year.

In addition, we reported Q1 adjusted free cash flow before distributions to noncontrolling interest, which was approximately $40 million higher than Q1 last year. This was a great result given the hurricane impact.

In Jamaica, our business is recovering more quickly than we had anticipated. The drivers include the speed of homes being reconnected to the residential fixed business and ongoing strength in mobile, building from our performance through the hurricane where our direct-to-sell connectivity helped grow affinity with customers on the island.

Turning to our capital structure. We have significant new developments to highlight. Today, we are announcing the intention to distribute $500 million notional amount of preferred equity in the form of a dividend, providing a rate of 9%. This will effectively divide our equity into an instrument with an attractive return and a more geared common equity. This move reflects our increasing confidence in LLA's future adjusted free cash flow profile as well as our desire to return cash to shareholders.

On that latter point, we have also been active in the market repurchasing shares this quarter for the first time since the first half of 2024. We will continue to be opportunistic with regards to future share repurchase, noting we have approximately $185 million of authorization remaining on our buyback program.

Finally, I'd like to mention the joint press release published yesterday by GCI Liberty and ourselves. GCI has announced it has acquired Searchlight's approximate 6% stake in LLA at an April 1 closing market price of $8.63 per share. We would like to thank Eric Zinterhofer and his team for their support over the years and welcome GCI as shareholders. For those unfamiliar with GCI, this is the Alaskan Communications business, formerly part of Liberty Broadband, which was spun out last year.

Importantly, our Director Emeritus, Dr. John Malone, has over 50% of the voting shares of GCI and hard control. This means that alongside his 7% direct and indirect equity in LLA, GCI Liberty, which John controls, owns another 6% of our stock, representing significant support for our company. We appreciate John's increased commitment to LLA and look forward to continuing our relationship over the coming years.

Turning now to our operations. On Slide 5, we review our Liberty Caribbean segment, which reflects this quarter a full impact of Hurricane Melissa in Jamaica, which represented an underlying negative impact of $12 million at the revenue level in Q1. On the left of the slide, we show how despite the hurricane, Liberty Caribbean's postpaid performance has continued unabated during this difficult period, adding another 15,000 postpaid subscribers, of which 11,000 was delivered in Jamaica in the first quarter and with a healthy contribution from our smaller South Caribbean markets.

Early in 2025, we stepped up the investments in our network in Jamaica, including bolstering our spectrum position. In addition, in the aftermath of the hurricane, we have reinforced customer trust helped by our direct-to- sell support and were ultimately recognized by Ookla as the fastest mobile network on the island in the second half of 2025. We are pleased with this result and we'll continue to build on this platform through 2026.

Mobile still remains a largely prepaid market in Jamaica. And as expected, we saw a seasonal drop in prepaid subs this quarter versus a stronger Q4 period, but took an opportunity to increase price and registered strong prepaid revenue growth year-over-year. Our fixed business, both residential and B2B, felt the brunt of the hurricane, but we are pleased to return to positive residential fixed broadband subscriber adds this quarter.

Moving to the middle of the slide. At the top, we are showing Jamaica's revenue evolution over the last few quarters. Our mobile business performed well post hurricane. On the other hand, while the restoration of the fixed network is taking some time, we see a quicker recovery than we had previously anticipated. At the bottom, we present the evolution of revenue-generating customers.

Through Q4, driven by Hurricane Melissa, we witnessed a drop in revenue-generating residential customers of over 110,000 or approximately 1/3 of the customer base. In the first quarter, we have added back 30,000 such customers. Looking forward, we are now more optimistic on the pace of further reconnections.

At year-end, we had taken out 60,000 customers and 133,000 homes passed from our fixed count, suggesting at that time that reconnection of these customers was unlikely in the near term. However, as power has come back to the island and following our updated network mapping, we are now increasingly optimistic in being able to reconnect a healthy number of these customers in 2026.

In terms of outlook for Jamaica, we suggested at our full year 2025 results an ambition to return to run-rate Jamaican adjusted OIBDA by year-end and for a negative FCF impact in 2026 of up to $100 million. We are now increasingly confident that we will land on the right side of these aspirations, especially on free cash flow.

On Slide 6, we review Cable & Wireless Panama, where after a strong performance in Q4, Q1 tends to be a seasonally quieter quarter for the B2B. This gives me an opportunity to talk about some of the great initiatives underway in the residential business. On mobile, we continue to see postpaid as a strong driver, reporting a 10% year-over-year subscriber growth. This performance is built on customer value management focus using data analytics to drive upsell and cross-sell opportunities. FMC continues to steadily increase, now running at over 40%. Postpaid churn is running at historically low levels.

On the prepaid side, our momentum is also good, although we felt the pinch in Q1 as the regulator pushed back on certain price increases. Notwithstanding this, we are seeing strong adoption of our loyalty program and solid growth in our value-added service offerings, including cash advances, trivia and gaming.

On the fixed side, we have continued to grow fixed broadband subscribers as well as total RGUs, which grew 7% year-over-year in Q1. We are aiming to keep the momentum rolling through 2026, looking to use the FIFA World Cup and the Panamanian National team's qualification and presence as a catalyst. Early offers include campaigns with 65-inch Samsung TVs provided on a non-subsidized finance basis. Over the coming weeks and months, we have a number of other product launches in the hopper which will showcase the quality of our network. On B2B, we see a healthy pipeline and remind investors we tend to see revenues weigh towards the back end of the year.

Turning to Slide 7 to Liberty Networks. As we show on the left, we see continued healthy underlying demand for sub-sea capacity in our wholesale business, driving rebased revenue growth of 9% year-over-year in Q1, with demand from international and regional carriers, and hyperscalers expected to continue at a healthy clip over the coming months and years.

We are running two key projects today. Manta, which is in build phase through 2027, where we see elevated CapEx and working capital through to go-live, from which time CapEx will drop to a very low run-rate levels and we will start to book revenue with high margins, OIBDA, and free cash flow.

El Salvador is our second significant project within this segment, where we are kicking off milestones which determine revenue and cost. Both of these items are lumpy, with revenue contributing positively in Q4 2025, while there was a significant cost allocation this quarter which negatively impacted our Q1 reported year-over-year adjusted OIBDA performance. On an underlying basis, excluding El Salvador, we saw an improvement in year-over-year revenue and adjusted OIBDA momentum at Liberty Networks in Q1 versus Q4.

Turning to Slide 8 and Liberty Costa Rica, which operates in our most competitive fixed market with five national players and additional regional players further compounding pressure. In this context, we are pleased to be maintaining a broadly stable fixed residential subscriber base, though there is inevitable pressure on fixed ARPU given the downward pressures on front-book pricing over the last 12 months. Notwithstanding this ARPU weakness, total residential fixed revenue declined this quarter, primarily reflected a lower share of CPE being sold under our buy-to-own model and instead being rented.

We continue to generate solid volumes on postpaid, which helped drive 2% residential mobile revenue growth in Q1 year-over-year. We are however seeing signs of more elevated competition in the early stages of this year. In this climate, we need to continue to differentiate and innovate. On the former, we aim to focus ever more so on FMC, given the majority of fixed providers we compete against can't provide such a service.

On innovation, we are delighted to announce that Liberty Costa Rica and Starlink have signed an agreement to offer, for the first time in Costa Rica, a direct-to-cell service. This will be branded Liberty Starlink, and we are working on launching this in the second half of 2026. It will allow both consumers and corporate clients to connect to data that delivers voice, video, and messaging through apps as well as text messaging from places where mobile coverage does not currently exist, such as rural, mountainous, or maritime areas, and even national parks. We aim to leverage this product to cement our strong position in the Costa Rican mobile market. Finally, we are highly focused on cost reduction initiatives in Costa Rica in 2026.

Turning to Slide 9 and Liberty Puerto Rico. On the mobile side, we have made strong progress, registering positive postpaid additions for the second consecutive quarter, supported by recent CVPs such as Liberty SIMple, a subsidy-free postpaid SIM offer. We would highlight that Q1 is traditionally a seasonally quiet quarter, and without the contribution which our postpaid base received in a commercially more active Q4 from the Boost migration.

In the center of the slide at the top, we show how our mobile NPS has improved since the migration and how it has been back into positive territory over the last 12 months. If NPS is a positive forward-looking indicator, the chart below shows how far we have already come. This shows the port-in, port-out ratio for postpaid mobile, with the latest data suggesting we have finally returned to greater than 1 in April. This means we are currently growing postpaid market share in Puerto Rico.

While there remains a lot to focus on mobile, our attention has also pivoted to residential fixed, where we are seeing a significant and positive shift in momentum in 2026. Towards the end of 2025, we really re-engage on fixed, launching a number of initiatives which played on the network strength of Liberty Puerto Rico, which resonated well with our fixed customers.

We also made significant improvements in channel productivity and in our door to door commercial activity. Since then, we have seen a significant improvement in our NPS scores on fixed, combined with a return to lower churn, close to pre-mobile migration levels. Month-over-month through year-to-date 2026, we have been seeing net fixed broadband subscriber losses diminish, and in the last couple of weeks have seen these net losses disappear almost entirely. We need to keep razor focus on our commercial offer and be mindful of competition in the market, but appear to be on a firmer footing here as we look out to the rest of 2026.

Across Puerto Rico, while we are very pleased with the recent improvement in operational trends in the business, we continue to have liquidity requirements in the business. As we have made clear for some time, this liquidity needs will continue to be met by Liberty Puerto Rico through its assets.

And with that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Thanks, Balan. I will recap our first quarter results, which were ahead of our own internal targets. Consistent with last year, we delivered revenue of $1.1 billion, reflecting a 1% rebased decline. Our relatively flat performance was due to several specific factors, including a full quarter impact of Hurricane Melissa on our Liberty Caribbean business, a change in our Costa Rican fixed residential business model for equipment and phasing of B2B projects, principally in CWP. A highlight of the quarter was performance in Liberty Networks, which led LLA.

In terms of adjusted OIBDA, we posted $405 million in Q1, which like revenue, reflects a rebased decline of 1%. The top line headwinds, as noted, were the principal drivers of this performance, including the impact from Hurricane Melissa. Additionally, we recognized costs in Liberty Networks for the El Salvador Subsea build of $7 million, which did not have corresponding revenue in the quarter. Liberty Puerto Rico meanwhile posted strong adjusted OIBDA growth of over 10% year-over-year.

Turning to Slide 12 for the C&W credit silo results. Starting on the left, LC reported $355 million in revenue and $163 million in adjusted OIBDA. As anticipated during our fiscal year 2025 call, both metrics declined year-over-year primarily as a result of the $12 million gross negative effect in revenue from the hurricane with an impact of over $8 million in fixed customer revenue and around $4 million in B2B fixed revenue. This was partially offset by the recovery of B2B revenue in Q1 '26 for services provided to certain customers in Q4 '25 that were initially believed to be uncertain of collection.

For Jamaica, a solid mobile performance continues to support the business while an increase in the anticipated pace of reconnections should bring us closer to pre-hurricane levels on fixed before year-end.

Next, moving to CWP. In Q1, both CWP revenue and adjusted OIBDA decreased 1% year-over-year on a rebased basis, reporting $176 million of revenue and $64 million of adjusted OIBDA. Positive top line performance in both fixed and mobile sustained by subscriber additions was more than offset by B2B, mainly impacted by price renegotiations of some government-related contracts in what is a seasonally much slower quarter. Additionally, operating costs are modestly higher year-over-year and sequentially. However, management has plans in place to help control rising costs.

Turning to Liberty Networks. LN generated $121 million in revenue, resulting in rebased growth of 7%, while adjusted OIBDA declined by 5% year-over-year on a rebased basis to $55 million. Q1 revenue was fueled by the sustained expansion of our wholesale business through strong capacity sales, while adjusted OIBDA was impacted by timing of direct costs related to our El Salvador project.

Aggregating all three operating segments within the C&W credit silo for Q1, we reported $631 million in revenue, resulting in flat year-over-year rebased growth and $282 million in adjusted OIBDA or a 5% year-over-year rebased decrease, mainly driven by the hurricane impact and the aforementioned El Salvador project.

Rounding out our other two credit silos, Liberty Costa Rica and Liberty Puerto Rico. On the left, we highlight LCR. We delivered Q1 revenue of $158 million and adjusted OIBDA of $57 million, representing year-over-year rebased declines of 4% and 8%, respectively. Residential mobile growth was more than offset by lower residential fixed and B2B revenue. The decline in residential fixed revenue was driven in part by ARPU pressure impacting subscription revenue and lower sales of equipment sold under our buy-to-own model, which affects non-subscription revenue. To support financial performance, we have also embarked on a comprehensive cost-out program, which is in its early days, but should be hitting its stride as we get into H2.

Concluding with Puerto Rico on the right, LPR posted Q1 revenue of $296 million, which reflects a 1% decline. Revenue is continuing to stabilize as mobile and B2B recovery is underway, while the residential fixed business has been hampered by modest increase in churn over the past year.

Turning to adjusted OIBDA. We grew 12% to $91 million. The strong performance is largely a result of the continued efforts to improve LPR's cost base over the year, which includes lower labor and bad debt costs.

Turning to LLA's adjusted OIBDA less P&E additions and adjusted FCF on Slide 14. Building upon our adjusted OIBDA performance, we invested $111 million or 10% of revenue in P&E additions in the quarter, which represents an 8% reduction compared to last year. Typically, Q1 tends to be a seasonally low quarter for us, and thus, we expect our spend to pick up over the rest of the year.

Importantly, roughly $12 million of our spend in Q1 was associated with the Jamaican recovery. And as Balan noted, we are hyper-focused on bringing back even more fixed residential connectivity to our footprint.

The chart on the left depicts an important metric for us, which is adjusted OIBDA less P&E additions. For Q1, we delivered $294 million, reflecting an improvement of 3% year-over-year and a margin of 27% of revenue. The absolute figure was adversely impacted by Hurricane Melissa or about $20 million on a net basis.

Moving to the right side of the slide, we significantly improved our adjusted free cash flow before partner distributions, delivering negative $64 million in the quarter, which is $40 million better year-over-year. This result was driven by a combination of stronger cash flow from operating activities, and the lower capital spend just noted.

As seen in prior years, Q1 working capital is always constrained, reflecting a partial unwind from the seasonally strong Q4. As a reminder, our adjusted FCF will be highly weighted to later in the year. On an LTM basis through March 31, our adjusted FCF before partner distributions increased to $190 million from $150 million for fiscal 2025.

Next to Slide 15 and a quick review of our capital structure. On a consolidated basis, LLA had total debt of $8.4 billion and $1.5 billion of liquidity, consisting of just under $700 million in cash and almost $800 million in availability under our committed credit lines. Q1 2026 consolidated net leverage was 4.5x. And if we exclude LPR leverage, LLA leverage would decline into the mid-threes.

The middle of the slide summarizes our two credit silos of C&W and LCR. We have total debt of $5 billion in covenant leverage of 3.7x at C&W and total debt of $510 million and covenant leverage of 2x at LCR. Over 75% of borrowings are due in 2031 and beyond. During the quarter, we reduced our outstanding LCR bonds by 10% as we exercise the 103 call that we had.

On the right is our Liberty Puerto Rico credit silo, which has $3 billion of total debt and reported borrowing group net leverage of 8x, while covenant leverage of the restricted subsidiaries was 14x. During the quarter and as noted on the year-end call, LPR borrowed the remaining $50 million available under its unrestricted subsidiary facility, bringing its total unrestricted subsidiary borrowing proceeds to $250 million. This borrowing strengthened LPR's liquidity position.

The business continues to benefit from substantial flexibility in its credit documents, and we expect LPR to continue to utilize its assets to raise third-party capital to the extent that it is needed. In terms of the liability management exercise that has been ongoing since the summer, LPR is continuing to evaluate its options to maximize value, and this may or may not include direct engagement with its lenders and bondholders. We will provide further updates with respect to this process when we determine it is appropriate.

Turning to Slide 16 and building upon Balan's highlights at the start of the presentation and our increasing confidence in our underlying businesses, including our cash flow potential. We announced today the intent to dividend 9% cash pay preferred stock with a notional amount of $500 million to our equity shareholders. We are working to be able to complete this distribution before the end of Q2. This structure accomplishes several objectives, providing our shareholders with an attractive cash pay security and a regearing of our equity. LLA is obviously leaning into the levered equity model. This is backed by our conviction on future FCF generation. Over time, we believe the combination of the preferred stock and a skinnier common equity will positively impact overall value to our shareholders.

Moving to Slide 17 and our closing remarks. First, on the surface, our revenue and adjusted OIBDA were flattish, but relative to our plan, we overperformed, helped in part by a better-than-expected recovery in Jamaica and importantly, our adjusted FCF was substantially better to start the year. We are setting the stage for what we expect to be a robust finish to 2026 in the fourth quarter. Second, a significant focus remains on Jamaica, and we are encouraged by the efforts of our management team. Still lots of work to do, particularly around the fixed network, but we believe our business and brand will come out of this unfortunate event even stronger.

Third, we are excited about the preferred distribution that we discussed on the prior slide as we provide our shareholders with a consistent capital return. As we think about our equity, it was great that we could be back in the market repurchasing in Q1. As of quarter end, we had $184 million remaining under our Board authorization and LLA will be opportunistic in the forthcoming quarters.

And finally, I hope that you all saw our joint press release with GCI Liberty yesterday. GCI Liberty, which is majority controlled by Dr. Malone, announced that it purchased 12 million shares in LLA for $107 million from Searchlight Capital. GCI Liberty now owns about 6% of LLA's equity. Separately, Dr. Malone owns roughly 7% of LLA's equity. From our perspective, this incremental investment in LLA demonstrates substantial confidence in our business, our growth prospects and our cash flow generation potential.

With that, operator, we will open it up for questions.

[Operator Instructions] Your first question comes from Matthew Harrigan with Benchmark Stone X.

Congratulations on the results and the dividend, usual facile financial engineering from yourself and presumably some Dr. Malone input. I was curious, we had a couple of companies, Xfinity in the U.S. and VodafoneZiggo JV really found issues on the front book, back book issue and really have to rectify their pricing. You called that out on Costa Rica. Is that a phenomenon in some of your other markets as well? And how can you provide further value?

I mean the Ookla ratings and everything are quite positive to make sure that people are getting better price value rather than have to adjust your pricing on kind of a step function manner, which can be pretty disruptive.

Thank you, Matthew. One thing that's really good about LLA is that we actually have been very disciplined in managing our front book pricing. And the one place where we actually had lots of price increases and a very high front book was in Chile a while back. And we learned a lot from that experience as well. But I think between 2019 and 2024, we did not take any price increases anywhere. And as a result, our front book is very competitive.

Costa Rica is slightly -- it's just an aberration. As a matter of fact, even in Costa Rica, we are -- our front book is extremely competitive. We are not the highest price in Costa Rica. The company that's really being impacted by the price challenges there is the incumbent. And what we've been trying to do there is mostly in our retention desk. And certainly, if you look at our back book in Costa Rica, the back book is very solid.

So we feel pretty good about where our pricing is. Now we'll be very competitive. And one of the things we've learned as well, hanging on to market share is extremely important. And therefore, you see we'll play the ARPU game to hang on to market share. And in Costa Rica specifically, we actually grew fixed broadband. We actually grew our business ever so slightly, but nevertheless, in a highly competitive market, we're doing fine. Now eventually, the market will restore. And so having good market share is always going to be the better outcome.

Your next question comes from David Lopez with New Street Research.

I had a question on the cost structure. I was wondering if the rise in energy costs we are seeing currently has any impact on your cost structure and if you can comment on that a bit, please?

We are very focused on our cost. You can see we have actually a pretty healthy EBITDA margin in the business and more importantly, a very healthy operating free cash flow margin. We expect that there is still opportunity to increase both those metrics. And our business over the last 24 months have gone through a lot of cost reduction, but it doesn't end. This year, we also have some pretty good cost improvements, and that will continue to '27 and '28.

And by the way, we are really leaning in on AI. And we expect a lot of further cost improvements in our business through our complete embracement of AI technology, which already, by the way, on the front line, we've implemented it in our back office. We are working to implement it. And we've recently appointed an individual in our company to fully lead our AI transformation. We expect some pretty good returns.

I would add around the energy point, we continue to focus on, it's only about roughly 2% of revenue overall energy costs. So a couple of things to, I think, take note. One is the network is fiber or HFC, it's not cable -- it's not copper. That obviously uses a lot of energy. So over time, our move to improve the network topology has reduced energy costs. So we'll continue to be quite agile to the extent energy increases in the region, particularly in the islands. So we have a number of kind of mitigating strategies to reduce cost to the extent that energy moves up.

Thanks, Chris. I missed the energy section.

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

Well, thank you, operator. Well, you can clearly see, we are excited about this morning's announcement. And from what we announced, you can also draw the conclusion that we have significant confidence in our business and future free cash flow growth prospects. We are also very excited about Dr. Malone's increased investment in LLA. Overall, the future is bright, and thank you for your support.

Ladies and gentlemen, this concludes Liberty Latin America's First Quarter 2026 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 find a copy of today's presentation materials. Thank you for joining. You may now disconnect.

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 Zoe Lawrenson, Senior Director of Strategy and Corporate Development, Liberty Latin America.

Good morning, and welcome to Liberty Latin America's Full Year 2025 Investor Call. [Operator Instructions] Today's formal presentation materials can be found on the Investor Relations section of Liberty Latin America's website, www.lla.com. Following today's formal presentation, instruction will be given for a question-and-answer session. 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, 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 may 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 , Zoe, and welcome, everybody, to Liberty Latin America's Fourth Quarter and Full Year 2025 Results Presentation. I will be running through our group highlights and an overview of our operating results by Credit Silo before Chris Noyes, our CFO, reviews the company financial performance. We'll then get straight to your questions. As always, I'm joined by my executive team from across our operations, and I will invite them to contribute as needed during the Q&A following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com.

All right. Starting on Slide 4 and our highlights. Our business performed very well in 2025. We added over 225,000 mobile postpaid subscribers across the group, notably driven by Costa Rica and supported by fixed mobile convergence efforts and continuing prepaid to postpaid migrations. The postpaid adds this quarter included a positive net add contribution from Puerto Rico for the first time since the migration. We also recorded $1.7 billion of adjusted OIBDA in full year 2025, which represented 9% growth on a rebased basis.

This performance was driven by good execution of cost initiatives as well as effective customer management and came despite headwinds in the fourth quarter from Hurricane Melissa. We worked hard to drive a steep recovery in profitability in Puerto Rico as well as double-digit adjusted OIBDA growth in Cable & Wireless Panama. B2B came in very strong in the fourth quarter, which is seasonally our best B2B quarter. LLA registered P&E additions for the group at 14% as a percentage of revenue for full year 2025, in line with previously communicated intentions and representing a 2 percentage point decline versus the prior year.

With adjusted OIBDA expanding, the P&E additions falling, the adjusted OIBDA less P&E additions increased by 27% for the full year 2024. Our adjusted OIBDA after P&E additions margin came in at 24% for full year 2025. When comparing on a like-for-like basis, including adjusting for different lease accounting under the IFRS reporting, this compares very favorably to peers across the region and in the U.S., and there is still room to grow here. Finally, in Jamaica, I would like to thank all those involved in our recovery efforts following the effects of Hurricane Melissa. Against the backdrop of a Category 5 hurricane, our mobile network held up well, recovering service very quickly.

While our fixed infrastructure was more impacted by the storm, we continue to reconnect homes and B2B customers. As we rebuild in fixed and continue our network transformation in mobile, we aim to invest in an innovative and returns-focused manner. I'll cover more on this later.

Turning to Slide 6. I'll provide an update on Liberty Caribbean, which inevitably felt the impact of the hurricane in Jamaica in both Q4 and full year numbers. On the top left of the slide, we present our mobile KPIs. Postpaid mobile additions of 55,000 registered a strong cadence through 2025 and notably continued through Q4 despite the impact of hurricane. Momentum here continues to bring from rising FMC penetration and prepaid to postpaid migration, which are tailwinds we anticipate continuing over the coming periods.

On the bottom left of the slide, we show our fixed KPIs. We have managed to keep the broadband base broadly steady throughout the first 9 months of the year, with Q4 largely reflecting the impact of lost customers in Jamaica. Elsewhere, we saw some modest pressure on volumes in Trinidad and Tobacco and the Bahamas. Moving to the center of the slide. Despite headwinds from Hurricane Melissa, we held Liberty Caribbean segment revenue flat in full year 2025 at $1.5 billion.

Within this, we registered rebased residential mobile revenue growth of 4%, given structural support from postpaid additions as well as selective price increases on both prepaid and postpaid throughout the year. This offset pressures on the fixed residential business and on B2B, which mainly was due to the impact of the hurricane in the fourth quarter. Looking forward to 2026, we continue to be fully focused on rebuilding in Jamaica, which I will turn to in more detail on the next slide. In addition and looking region-wide, we aim to continue driving FMC where penetration is now within 40%, in the B2B segment, which reflects over 1/3 of segment revenue, we also see a significant opportunity to expand this revenue pool.

Turning to Slide 7. I'll provide an update on Jamaica post Melissa and outline our investment focus for 2026, during which we will be deploying proceeds from the payout under our weather derivatives program, which totaled $81 million on a net basis. First, the mobile. Our mobile network recovered quickly. And through quarter end, we were running at a higher level of mobile subscribers and carrying more data traffic over the network than prior to the hurricane. As of the latest data available through early February, this trend has been continuing. Our mobile business in Jamaica is largely prepaid, and these improving KPIs translated into higher prepaid and higher overall residential mobile revenue in Q4.

Our postpaid mobile business has also proven to be resilient. We feel good about the outlook for our mobile business in Jamaica, seeing not only the opportunity to maintain this recovery, but to further build upon it. We have been transforming our network over the course of 2025. And as a result, we have been recognized by Ookla as the fastest mobile network in the island for the second half of 2025. We will continue our transformation journey into 2026, leveraging an improved spectrum position and greater site density. With over 85% of our mobile customer base on the prepaid tariff, we see continued opportunities to migrate customers to postpaid, and we will continue to focus on attracting higher-value prepaid customers within this segment.

On the fixed side, as we have mentioned, the fixed network was materially more damaged than our mobile network, impacting both our residential fixed customers and our B2B customers who weigh more towards fixed services. As a result, we have taken out 133,000 home passed from the count, where we don't foresee a restoring of fixed service in the near term. To provide more clarity on our outlook for the fixed network, it's instructive to break down the country into 3 geographic zones. Across the country, we have over 75% of our fixed broadband customers back online today, but see significant regional differences. The capital city, Kingston is in what we term as Zone 1, an area which represents the largest driver of GDP, over half of pre-Melissa homes passed and is where the bulk of our B2B customers are based. In Zone 1, economic activity and daily life is fully restored and the vast majority of homes are back online. In Zone 2, representing 30% of pre-Melissa homes is still recovering.

Our plans are to rebuild in the Parish of St. James, where Jamaica's second city, Montego Bay is located. Once complete, this should move the needle in terms of further bringing customers back online. Meanwhile, in the West, Zone 3 felt the largest impact of the storm and just over 50% of broadband customers still remain offline. Our rebuild here is following and subject to the cadence of reconstruction of homes and businesses in the region. Through the course of the year, we will continue to restore homes and B2B customers with a focus on return on investment and innovation. We look forward to building back stronger in Jamaica and on a run rate basis, we target being back close to pre-hurricane levels of profitability by the end of 2026.

Moving to Slide 8 and our C&W Panama segment. Starting on the top left of the slide. We delivered accelerating momentum in postpaid adds throughout 2025 as customers continue to migrate from prepaid, which creates more predictable revenues. We increased prices in postpaid and improved pricing plans in our prepaid business. On the bottom left of the slide, we show our fixed KPIs. We delivered another robust quarter of Internet subscriber adds, while competitive conditions caused some offset on price over the course of the year. Looking at revenue and as we show in the center of the slide, we registered rebased revenue growth of 3% for C&W Panama for full year 2025, which in turn was driven by rebased residential mobile revenue growth of 7% in 2025. Encouragingly, we also saw an improving performance in our B2B segment in 2025, with the contribution weighing more towards the end of the year.

We have registered a number of new wins, including the Ministry of Education of Panama, MEDUCA, which signed a contract with us to provide high-speed Internet to all public schools nationwide. B2B rebased revenue growth for full year 2025 was 1%, mainly driven by the fourth quarter that registered 24% growth on a year-over-year basis. Looking to 2026, we aim to build on our success in B2B and B2G and continue to drive postpaid momentum in residential segment while staying vigilant on costs and disciplined on capital investments.

Next to Slide 9 and our final segment within the C&W Credit Silo, Liberty Networks. On the left side of the slide, we present our full year 2025 revenue evolution. Wholesale revenue grew 6% on a rebased basis. Stripping out headwinds from noncash IRUs, underlying wholesale revenue growth would have been 12% year-over-year, mainly driven by revenue from a new key project win and new lease capacity sales. In December last year, we announced that we were chosen to design, construct, activate and operate El Salvador's first submarine cable. This is a 1,800-kilometer cable to connect the country to major international hubs, boosting high-speed Internet capacity and resiliency. This investment goes beyond building critical infrastructure. It lays the foundation for economic growth, innovation and opportunity for all Salvadorians. Enterprise revenue was a smaller part of the growth engine, but still showing momentum in IT-as-a-Service and connectivity solutions.

These services are helping us bring a strong base of monthly recurring revenue, which supports long-term stability and positions us well for the future. As we look forward, we remain focused on continuing to deliver growth in underlying subsea capacity as well as executing on our El Salvador project and on MANTA as well, our 5,600-kilometer joint build with Sparkle and Gold Data. On track to be operational in late 2027 or early 2028, MANTA is expected to establish a solid foundation of monthly recurring revenue, enhancing long-term profitability and positioning Liberty Networks as the region's primary data hub. Given expenditure is front-end loaded for this project, we look forward to turning current FCF headwinds into future tailwinds.

Turning to Slide 11 and Liberty Costa Rica. Starting on the top left of the slide. The postpaid business segment in Costa Rica continues to be the highlight for the LLA Group. In 2025, we added over 160,000 postpaid subscribers, representing a 16% expansion on the 2024 base. In particular, we have seen strong take-up in the lower-end postpaid segment, which is nevertheless accretive relative to our prepaid ARPU levels. Moving to the bottom left of the slide. On the fixed side, we continue to do a good job growing our subscriber base under competitive market conditions with an improved performance in the fourth quarter.

Moving to the center of the slide, we show Costa Rica registering rebased revenue growth of 1% in 2025. The driver of this was our residential mobile business, which grew revenue by 6% on a rebased basis. Despite the growing broadband base, price competition led to fixed revenue declining by 4% on a rebased basis, while we also faced a tough comparison on B2B. Looking forward, we see no immediate reason for a slowdown in the drivers of our prepaid to postpaid mobile strategy.

We expect 5G to become even more important, and Liberty was the first operator to launch 5G in Costa Rica in 2024, and we have over 300,000 customers today. Following the acquisition of 5G spectrum in 2025, we expect a continued lift as we deploy 5G stand-alone in partnership with Ericsson. Knowledging the tougher fixed market conditions, we will leverage our FMC advantage and stay innovative. In Q3 of last year, for example, we launched an offer for new and existing customers to have access to the most popular over-the-top platforms, including in their phone plan. A unique move in the Costa Rican market.

Finally, and following Sutel's rejection of the proposed merger with Tigo in Costa Rica, we have now turned our attention to costs. We believe we have a strong track record on cost reduction across the LLA Group, and we are focused on delivering similar margin benefits in Costa Rica over time.

Moving to Slide 13 and our third credit silo, Liberty Puerto Rico. Starting on the top left of the slide. In Q4, we registered the first quarter of positive postpaid mobile adds since the migration. This follows significant commercial efforts in the second half of the year, focused on the launch of Liberty Mix. This new multiline plan has captured customers' imagination, offering flexibility designing to mix and match plans within multi-bundle packages. It also has transparency with no hidden fees and value add through hotspots and roam like home, which are particularly important to our customer base. Additionally, in mobile, we are pleased to have completed the migration of our Boost MVNO customers onto our network.

These are high ARPU prepaid customers and retaining these customers while removing wholesale costs is an important milestone for the business. Our postpaid base also saw a pickup in the quarter from a small number of migrators Boost customers who opted to switch into our Liberty postpaid offering. Moving to the bottom left of the slide. On the fixed side, we continue to see competitive pressures impacting our subscriber base, though we registered lower broadband losses in the fourth quarter.

In part, this follows greater commercial efforts on the fixed side, including campaigns focusing on network quality and reliability. Moving to the center of the slide, we registered a 6% revenue decline for the year. This largely reflects a 6% decline in residential mobile revenue, in turn a function of the negative impact from the migration of customers to our mobile network and network challenges in 2024, which caused a decline in the average number of postpaid mobile subscribers.

B2B revenue declined by 16% year-over-year, in part due to similar migration factors. Residential fixed declined by 1% year-over-year with support coming from price increases early in 2025. Looking to 2026, Puerto Rico remains a competitive market, and we aim to keep laser focus on our commercial proposition. We have seen a nice lift in NPS to start the year on both fixed and postpaid side. We will continue to work hard to improve our customer propositions as we try to stabilize the fixed business and scale up in postpaid mobile.

Finally, on Slide 14, we summarize our strategic vision for Liberty Latin America as we look to 2026. Firstly, on the commercial front. You have heard me mention FMC or fixed mobile convergence a number of times on the call. We have complementary high-speed fixed and mobile infrastructure across almost all of our entire footprint, and we aim to continue to leverage this in our commercial proposition. We sometimes talk a little less about B2B, though this represents almost 1/3 of group revenue. This contribution could be higher, and we are particularly excited about our recently announced partnership with AWS to bring AWS compute and AI models to our local markets for our customers. We have a number of innovative products to be launched that will reduce our video costs to bring more resilience to our Internet service to bring 100% coverage to our mobile service and to bring more AI agents to our Care service. Operationally, we remain focused on investing in our business in a returns-focused manner.

Of key importance is our rebuild in Jamaica, both in terms of reconnecting homes, but also further transformation of our mobile network. We are excited to be pursuing 2 key projects within Liberty Networks, building connectivity on behalf of El Salvador and our ongoing MANTA project. We will be very focused on successful execution on Build through 2026, of 5G, which is now available in Puerto Rico, Panama, Costa Rica, the Cayman Islands and Barbados. This helps us maintain and enhance our commercial position in the mobile market as well as supporting FMC. We remain attuned to future opportunities to deploy 5G across our footprint. Finally, we are committed to rewarding our shareholders and have financial aspirations to deliver. I won't steal Chris' thunder, but suffice to say, cost efforts, capital investment discipline and a focus on free cash flow delivery lay at the heart of our outlook.

And with that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Thanks, Paul. Over the next slides, I will provide key highlights of our Q4 and full year results for 2025 with a focus on the fourth quarter. For Q4, we delivered revenue of $1.2 billion, reflecting 1% year-over-year rebased growth. This was fueled by double-digit top line growth at Liberty Networks and CWP, offset in large part by declines in LC, principally due to the hurricane and LPR as a result of the year-over-year decline in customers. On a full year basis, LLA revenue was slightly down on a rebased basis to $4.4 billion.

Moving to the right. We reported adjusted OIBDA of $451 million in Q4, bringing our 2025 full year adjusted OIBDA to $1.7 billion. These results reflect year-over-year rebased growth of 8% for Q4 and 9% for 2025, with both periods adversely impacted by $27 million stemming from Hurricane Melissa. For LLA, our operating focus on cost control and efficiency contributed to our roughly 300 basis point improvement in adjusted OIBDA margins in 2025. We expect our 2025 actions will continue to benefit our 2026 results.

Slide 17 recaps our Q4 results for the C&W credit silo. Starting on the left, in Q4, LC reported $356 million in revenue and $153 million in adjusted OIBDA. Both metrics declined year-over-year on a rebased basis, which was entirely due to Hurricane Melissa as the Jamaican business experienced declines of $20 million in revenue and $27 million in adjusted OIBDA in the last 2 months of Q4.

Overall, it is important to not let the hurricane detract from what was a very strong year from the LC team, especially in light of their margin improvement and 7% adjusted OIBDA rebased growth for full year 2025. With that being said, we do expect that the next quarters will be financially challenging in Jamaica and obviously, the year-over-year comps will be difficult until we lap the hurricane in Q4. Next, moving to CWP. Aided by revenue from government-related projects. In Q4, CWP posted double-digit rebased year-over-year growth for both revenue and adjusted OIBDA, reporting $230 million of revenue and $94 million of adjusted OIBDA. CWP's focus on improved gross margin contribution and content activities was reflected in expanded adjusted OIBDA margins in Q4 and full year 2025.

Turning to Liberty Networks. LN generated $129 million in revenue and $75 million in adjusted OIBDA, which accounts for year-over-year rebased increases of 14% and 21%, respectively. Results in Q4, as Balan highlighted, were fueled in part by the El Salvador build and continued ramping of its wholesale infrastructure business. Aggregating all 3 operating segments within the C&W credit silo. For Q4, we reported $693 million in revenue, reflecting a year-over-year rebased increase of 4% and $322 million in adjusted OIBDA, resulting in 5% year-over-year rebased growth. As noted earlier in LC, the results for the silo were hampered by the hurricane impact.

Rounding out our other 2 credit silos, Liberty Costa Rica and Liberty Puerto Rico. On the left, we highlight LCR. We delivered Q4 revenue of $168 million and adjusted OIBDA of $66 million, representing rebased declines of 2% for revenue and 3% for adjusted OIBDA. Residential mobile continued to deliver year-over-year growth, but was not able to offset a particularly soft quarter in B2B. With respect to full year 2025, adjusted OIBDA of $236 million was flat on a rebased basis. Importantly, the operating team has launched a comprehensive effort to improve its cost structure during 2026 and would expect momentum to build throughout the year, like we have seen in other markets. Concluding with Puerto Rico on the right, LPR posted Q4 revenue of $301 million, a slight increase from Q3 levels and which reflects a 4% rebased year-over-year decline.

The rebased decline over last year is primarily a result of the full year impact of customer losses experienced from the 2024 migration. Importantly, the business has shown stabilizing trends over the last few quarters. Turning to adjusted OIBDA. We reported $89 million in Q4, reflecting double-digit rebased growth year-over-year. LPR has significantly improved their cost structure during 2025 to align more with their current customer base and also returned to more normalized customer service levels, which have positively impacted their collection efforts and bad debt expense. These steps have been necessary to help compensate for the lower revenue base and the net impact is reflected in LPR's improving adjusted OIBDA margins.

Turning to Slide 19. Two important metrics that we are focused upon at LLA as we think about driving long-term value, adjusted OIBDA less P&E additions and adjusted FCF before partner distributions. Starting on the left, we have already briefly discussed adjusted OIBDA, but the other key input to the calculation is P&E additions. Even in light of the various commitments we had and events that occurred during the year, including new project wins and hurricane impacts, we remain disciplined during 2025. In aggregate, we invested $640 million in 2025, including $220 million in Q4 as compared to $725 million in 2024, including $240 million in Q4 of 2023. LLA's P&E additions as a percentage of revenue were 14% in 2025 versus 16% in 2024, a measurable year-over-year reduction.

Combined with our improved LLA adjusted OIBDA performance and margins, we delivered adjusted OIBDA less P&E additions of $1.1 billion in 2025, including $231 million in Q4, representing year-over-year growth for fiscal 2025 of 27% and for Q4 of 30%. Our 2025 result represents 24% of revenue, a significant improvement over 2024 levels and one we look forward to continuing to drive higher over time. Turning to adjusted free cash flow before partner distributions. We had a particularly robust Q4, delivering $278 million in the quarter, which brought our full year figure to $150 million, a 29% year-over-year increase. A key driver of this improvement was the significant expansion in adjusted OIBDA less P&E additions of $226 million over this period, which was offset somewhat by working capital and related movements.

Additionally, in Q4, we collected $81 million in net proceeds from our Parametric program, which helps to mitigate to a large extent, the physical damage and business interruption from Hurricane Melissa. As discussed earlier, we suffered financial impact in Q4 from Melissa, but a substantial amount of the adverse impact, including a large portion of the recovery investment is expected to occur in 2026. Although it will continue to evolve throughout the year, we generally expect that the 2026 adjusted FCF impact from the storm will be in the neighborhood of $100 million. Our operating goal is to be run rating near pre-hurricane levels by year-end, which should set us up for a full recovery in 2027.

Next is Slide 20 and a review of our capital structure. At the consolidated level, we have total debt of $8.4 billion and liquidity consisting of $800 million in cash and $900 million in availability under our credit lines. At year-end 2025, we had consolidated net leverage of 4.3x, an improvement from 2024 levels. If we exclude LPR leverage, which is undergoing a liability management exercise as previously discussed, LLA leverage would decline into the mid-3s. Turning to the middle of the slide, which summarizes our 2 credit silos of C&W and LCR. We have total debt at C&W of $4.9 billion and covenant leverage of 3.5x and total debt at LCR of $515 million and covenant leverage of 1.8x. As seen by the combined maturity schedule, approximately 75% of borrowings are due in 2031 and later.

Moving to the right, Liberty Puerto Rico has $2.9 billion of total debt with reported borrowing group net leverage of nearly 8x, while covenant leverage of the restricted subsidiaries was 14x as of Q4 2025. As seen today, LPR performance has stabilized over the last few quarters, but has a long road back to gain market share and expand the top line. And LPR continues to look for ways to improve its leverage profile. Of note, LPR may also need to raise additional liquidity in the near future to cover ongoing operating costs, although no definitive decisions have yet been taken in this regard. As discussed in our Q2 2025 earnings, LPR embarked on a liability management exercise with its creditors in 2025.

And as part of that, a transaction proposal was provided to the creditors' advisers in early November, and those advisers were provided with access to significant levels of information and diligence since that time. To date, while no response to such proposal has been received, the team hopes for engagement from the creditors in the near future. As previously highlighted, LPR has substantial flexibility in its credit documents that will enable the business to continue to utilize its assets to meet any near-term liquidity needs as they arise, as demonstrated by the $250 million secured financing raised through an unrestricted subsidiary of LPR that was announced in September 2025. Additionally, and consistent with our previously stated intention of separating LPR and LLA, we are actively working on this and we'll update when appropriate.

Moving to Slide 21 and our closing remarks. As compared to 2024, we delivered robust financial performance in 2025 with nearly double-digit rebased adjusted OIBDA expansion, 27% adjusted OIBDA less P&E additions growth and adjusted FCF before partner distributions improvement of 29%. In Jamaica, we have generally recovered our mobile business and will be disciplined in our capital approach to reconnecting homes and businesses as conditions on the ground improve.

No doubt the full recovery will take time and impact our reported results in the coming quarters, but we anticipate that we will be running at a much fuller tempo by 2027. Looking forward, Balan highlighted his 2026 strategic vision on his concluding slide covering commercial, operational and financial priorities.

Without repeating, I believe they can be further summarized into our continued focus on driving organic growth within our operating businesses and cash flow improvement. We clearly have near-term headwinds, especially with the timing of the Jamaican recovery and given our planned cadence for 2026. We would expect our financial performance at LLA and across our markets to be heavily weighted to the second half of the year.

Activities related to cost out, our investments in projects like MANTA and product innovation, including our new arrangement with AWS, all speak to setting the stage for future growth. Finally, for our equity investors, certainly, 2025 did have its share of ups and downs, but trending positively at the end of the year. Management remains committed to working to unlock value, including returning capital to shareholders and we will be focused on executing Balan's 2026 priorities, which we believe will be beneficial to value creation in 2026 and beyond.

With that, operator, we will open it up for questions.

[Operator Instructions]

Our first question today will be from the line of [ Matthew Harrigan ] with [ StoneX ].

I wonder if AI will ever enable the Q&A to not be conducted electronically. Actually, 2 questions. Firstly, you have some really abusive expectations on private equity infrastructure investment at one point. That didn't materialize, but certainly, the results are really inflecting upward. Even apart from MANTA and El Salvador, just by virtue of economic growth and increased volume even at lower per bit pricing. Do you think you've got a really nice tailwind just organically from economic activity? Or is it really just going to be largely a step function of MANTA and El Salvador and whatever other discrete projects materialize? And then I have a follow-up.

On the MANTA and El Salvador project, they're actually quite different projects. The MANTA project is both building more resiliency as well as adding a huge amount of capacity on routes we think are going to be highly profitable. So -- and it's being built right now, and we'll start selling into it very soon, starting later this year, early next year. And we've got quite a bit of interest in that. The El Salvador project on the flip side, it's really a build operate transfer kind of a model with the government of El Salvador.

But it has some really good upsides for us as well, including the fact that we will be running, maintaining that network. And in the future, perhaps we could put a branching unit and add some capacity to some of the other drops. So both projects are hugely accretive and have very good margins on it. But they are very complex projects. Ray Collins, who leads our business unit there. He and his team have been really on top of it. The build and the engineering is ongoing right now. And we have a lot to deliver on here, but the team is really up for it.

And then as a follow-up, Mike Fries yesterday, this wasn't his expectation, but I think he said one of the hyperscaler executives said that it was possible that they could reduce Liberty Telecoms OpEx from $15 billion to $7 billion or $8 billion. Mike certainly didn't endorse that, but he implied that there was going to be a long run of AI and cost improvements given, obviously, telecom, you've got a lot of repetitive processes and big data lakes and network management, customer management.

Do you think you're going to have that type of improvement? Obviously, not of that scale, but do you think we're going to be seeing very, very significant prolonged margin benefits? And then I was also curious, this month, you just the other day with AWS and then Liberty Global with Google and Gemini somewhat before that, both entered into relationships. And I'm curious how the expectations are vary between Google and Amazon. And was there any clear explanation as to why they went with Google and you went with AWS?

Sure. Let me answer your last question first, and I'll get back. I really can't comment on Liberty Global's decision with Google, like Google Cloud and the work the Google team is doing. It's extremely impressive. Chris, myself or a whole bunch of my executives visited with the Google Cloud folks just 2 weeks ago in California, 3 weeks now. Our relationship with AWS is slightly different, and it's really focused on our business. Most of our models and most of our services and compute and storage is done over AWS. Most of our customers prefer AWS.

The relationship with AWS is strong for our internal usage. And certainly, it's a great product for us to partner with our customers. We have quite a number of customers today, cloud customers on our premises that are migrating, and we think the migration to AWS makes a lot of sense for them and for us. And the folks that AWS has been really great to work with as well in this partnership. So that's really kind of why we went down that path. We think it's great for ourselves internally, and it's great for our customers as well. In addition, by the way, AWS is making investments in our region with us building out what they call outposts and their wavelength product in our data centers in Panama, in Colombia. So this is not just a reseller agreement.

This is a really deep partnership between us and them. To your second question -- or your first question on AI benefits, I think we are really in the first innings here on this. This requires -- the opportunity is large. Let's be clear. I don't want to put a number on this. But clearly, as you pointed out, we have a lot of repetitive processes in our company, and we have a lot of things that perhaps we're not really good at. And AI can actually make us a lot better. It will take cost out. It will help us be more productive.

And in addition to that, it will have a better front end for us to our customers as well. And on all those fronts, we have either trials, we have implemented, we have launched, and we're just seeing the beginnings of it. I think the challenge in our company that we are challenging ourselves is how do we translate all of this into some real tangible free cash flow improvement. And that's really, as Chris pointed out, our primary goal. Everything that we work on here has to, at some point, translate to a free cash flow expansion. And we are working on it. I think if you ask the same question 2 quarters from now, I will probably have a slightly different answer with much more tangible initiatives that we are working on. I can tell you now, if you go to Costa Rica, you call our call centers right now, there's a high likelihood an AI agent will be answering the call.

The next question today will be from the line of Michael Rollins with Citi.

Curious if you could help us -- help all of us understand the fixed to mobile convergence opportunity. In your major markets or regions, can you frame what the current level of converged take rates are, where you see that potentially going on a volume basis? And to get there, do you have to do substantial discounting? Or can it be nearly as accretive as if you were getting these customers on the stand-alone services and just coincidentally package together?

The fixed mobile convergence have been a real benefit for us. Yes, there's a few ways to look at it. One, if you know, most of our markets, with the exception of Puerto Rico, it's primarily prepaid, primarily prepaid markets. So when you go to fixed mobile convergence, there's 2 things -- 2 steps here. One, you go from pre to post and then you link the post to our fixed product. And it's primarily postpaid mobile with our fixed broadband. That's really the golden product, the bullseye product we call. And this has worked quite well across our markets. And in Puerto Rico specifically, we've been looking at -- we have more than 50-some percent market share in our fixed broadband in Puerto Rico. And we have right about slightly under 20% in our mobile postpaid.

And clearly, the opportunity to link both of them is pretty high. So for every fixed broadband customer that do not have our postpaid, it's really an opportunity for us. And for any of our postpaid customers that don't have fixed broadband, also an opportunity for us. And the trick is really our systems, and we've been going through, as you know, in Puerto Rico, quite a significant upgrade in our systems and stabilizing them. We are now at a point where we can start doing a lot of this postpaid and fixed mobile -- sorry, and fixed broadband convergence. And it's really kind of -- it provides 2 things.

One, a higher ARPU in the home or that specific customer, so the customer ARPU goes up. And secondly, churn goes down. And these are proven facts across all telcos over many years. And I think we've been quite successful. We have quite a number of my general managers who are really steeped into this, focused on it, and this is really one of our growth opportunities in '26 and beyond.

Maybe just a follow-up on the revenue side. Can you give us an update when you take into account the -- what you just described in terms of the FMC opportunities, the opportunity to continue to grow in your markets, what's a fair range of annual rebased revenue growth that Liberty Latin America should operate within on a multiyear basis?

That's a great question. I've got to be careful I don't give guidance here. But here's how you look at it. Our mobile product is growing because as we move from pre to post, ARPU gets better, we attach it to our fixed and we start growing. So the mobile product, you'll see growth. It won't be in the double digits, but it will be very respectable single-digit growth annually. And that -- we have a long runway in that. On the fixed side, broadband continues to grow, however, offset by headwinds on video and voice. So as you look at the fixed product, you'll see flattish to slight growth, but it's mostly because we have some legacy products that you got to adjust for.

Eventually, will wash out and we'll get to a steady cadence. B2B has good growth as well. And the B2B growth, we are really excited now getting into more and more cloud services that we're selling. We still continue to sell connectivity. But in addition to connectivity, we're selling a lot more cloud services. But even in B2B, there is a headwind. And the headwind is mostly a lot of customers are canceling their voice products. So there's voice services that will continue to decline a bit, but it's offset by these new cloud services. And the second thing that kind of offsets our revenue going forward is roaming. -- clearly, as people travel, this is a great market for us because a lot of the cruise ships, a lot of people roam.

But clearly, with new technologies and most people getting on WiFi via WhatsApp, the roaming revenue is going to be continuously, it's going to slightly decline, and that kind of adds to a headwind to our product. So our product portfolio has a lot of really nice good products and a few headwinds that it's just the nature of where the technology is at. I think the way we look at it is we are going to invest further and deeper into all the products that are growing.

And then we're just going to manage the rest of the products that we are challenged with, voice, video, roaming, those kinds of products, we're going to just try to manage that. And I think the team has done a pretty good job. You can see it in our numbers. And that's why you can see while revenue is kind of flattish at the top, there's a significant EBITDA expansion. The EBITDA expansion comes from cost cutting, this base management and really us moving to higher-margin products. So that's kind of one way to look at it.

[Operator Instructions]

The next question today will be from the line of Chris Hoare with New Street Research.

I had a question on the top line trajectory in Puerto Rico. Obviously, great news on the inflection in postpaid net adds. I wonder if you can give sort of any color on the shape of how that sort of played out in the quarter. And obviously, what I'm trying to think of is what we should expect going forward, whether you'd expect to see further improvements in terms of postpaid net adds? And then also on the top line in Puerto Rico, obviously, that was sort of slightly offset by a bit of weakness on B2B. And I think you said that, that's a function of sort of hangover from the transition, but I'd just be interested in sort of if you can give any more color on what happened there as well and therefore, also trajectory on B2B revenues in Puerto Rico.

In '25, we had a whole bunch of headwinds there. We started the year with an outlook that's very, very different than what we ended the year with, meaning extremely positive in the way we ended the year compared to how we saw it at the beginning of the year because there were some headwinds and challenges that we did not anticipate as we came into 2025, the first quarter of '25. Here's a few things that can show the improvements. One, of course, you see financially, we're turning this business around.

And -- but it's really based on a whole bunch of things that we fixed in the business, whether it's the leadership talent, whether it's the processes in it, the stabilization of the systems and really coming out with value propositions and products that make sense to our customers. There's a huge amount of improvements in business when somebody walks into our store today than they did last year. So a number of things that I think will give us some nice tailwind into '26. The net adds you saw in the fourth quarter of '25 were driven by all these improvements, including a real big turnaround in our NPS scores. And -- but it was also assisted by the fact that we were migrating a ton of these subscribers -- we bought from DISH. They were prepaid subscribers that came to us.

But because of our really strong postpaid value proposition, a number of those prepaid subscribers actually ended up buying our postpaid product instead of moving as to prepaid. And so that drove as well some of the growth of net adds in fourth quarter '25. Now if I look into '26, January, we had a very good month in January. So without any of the Boost subscribers moving up to postpaid. So we continue to see the progress in that. But I think this is a journey that's going to take a lot more than 1 or 2 quarters. And my sense is by the end of '26, we'll be an even better state to set up for a really nice opening balance into 2027. And then back to the revenue miss, you correctly pointed out, B2B was a challenge for us in 2025.

We opened the year with a very weak opening balance coming into 2025 and struggled throughout the year. We made a number of changes in the team in the B2B team. We brought in a new leader for the group. She is extremely focused. And if I look at my budget for 2026, has a very good and a very, I think, a budget that when we hit it, I think people are going to be quite happy. So the turnaround is happening, but we have to be patient. This is going to take many quarters.

Okay. And maybe one follow-up would just be on the slide on equity value unlock where you talk about shareholder returns focus. Is there any more color you can give there in terms of either what you're thinking of or timing around when anything might be announced there?

I think things are looking on the up and up here. We feel really confident about the business. We really feel really confident about the future. As Chris pointed out, the cash flow generation in the fourth quarter looks really good. And you can see that our intention, as Chris pointed out, is we're going to expand that into '26. Now as you know, most of our free cash flow comes in, in the second half of the year. So there's a number of things that we've been thinking about. I suspect that sometime during the course of this year, we are going to come out with something that together with our Board, make some decisions that I think will reward a lot of the shareholders that's been with this.

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

Well, firstly, I'd like to say thank you for everybody that's been patient with this. Certainly, the story has got lots of moving parts, and we've had a fair share of challenges. And some of it is self-inflicted, some of it, clearly, mother nature is -- we weren't expecting that hit in Jamaica and the hurricane. But we're going to power through all of it. And one thing that's really good about this team is it's we are quite resilient. And when we see things going off, we try to fix it and we do, I think, a pretty dang good job bringing things back to where it should be.

And we'll do the same thing within Jamaica as well, as Chris pointed out, I think by the end of this year, you're going to see that Jamaica is back to where it should be, which sets us up for a great 2027 as well. But we've had our setbacks, and we say in our company, all these setbacks, great for a great comeback. And I think we are on our path to a great comeback. So thank you very much for all your support, and we look forward to talking to you again next quarter.

Ladies and gentlemen, this concludes Liberty Latin America's Full Year 2025 Investor Call. As a reminder, a replay of the call will be available inn the Investor Relations section of Liberty Latin America's website at www.lla.com. And you can also find a copy of today's presentation materials.

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 Jenny Chen, VP of Controls Transformation of Liberty Latin America.

Good morning, and welcome to the Liberty Latin America's Third Quarter 2025 Investor Call. [Operator Instructions] Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instruction will be given for a question-and-answer session. 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 historic 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 recent 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 expectation or in the condition 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 the 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, Jenny, and welcome, everyone, to Liberty Latin America's Third Quarter 2025 Results Presentation. I will be running through our group highlights and an overview of our operating results by Credit Silo before Chris Noyes, our CFO, reviews the company's financial performance. We'll then get straight to your questions.

But before we get into the details, let me start by taking a moment to recognize the hardship of our employees, customers, partners, communities, governments who bore the brunt of Hurricane Melissa in the Caribbean, especially in Jamaica. Their resilience is nothing short of amazing. Our commitment to this region is strong, and we will help with the recovery through our humanitarian and infrastructure rebuild. I will cover this in more detail in my commentary on Liberty Caribbean.

As always, I'm joined by my executive team from across our operations, and I will invite them to contribute as needed during the Q&A following our prepared remarks. As a point of housekeeping, we will both be working from slides, which you can find on our website at www.lla.com.

Starting on Slide 4 and our highlights. Our core business performed very well in Q3. We added over 100,000 postpaid net adds across the group, notably driven by Costa Rica and supported by fixed mobile convergence efforts and continuing prepaid to postpaid migration. This was the strongest quarter of postpaid additions across the group in 3 years.

We reported $1.1 billion of revenue in Q3. This represented a return to year-over-year growth driven by better trends in B2B as we had anticipated. This, in turn, came about through a combination of better momentum on enterprise and government-related contracts as well as the easing of tough year-over-year comps on B2B, which we faced in the first half of the year.

Residential revenue grew year-over-year this quarter as we continue to focus on innovative customer value propositions across the markets. We posted adjusted OIBDA of $433 million, reflecting a rebased year-over-year growth of 7% in the third quarter. This included rebased growth across all of our segments, including Puerto Rico.

This performance was driven by good execution on cost initiatives as well as strong customer base management. We maintain our focus on lowering capital intensity. These efforts led to a 22% expansion in adjusted OIBDA less P&E additions year-over-year, bringing us to a margin of 26%.

Today, and despite some recovery through this year, we continue to believe our share price does not fully reflect the intrinsic value of our underlying businesses. We remain focused on delivering organic growth and cash flow generation, which we believe is critical for share price appreciation. Additionally, as previously discussed, we continue to look across our array of assets in the group and evaluate opportunities to close the embedded discount in our stock price.

Turning to Slide 6. I'll begin our operating review with the Cable & Wireless credit silo, which had another very solid quarter. This silo includes Liberty Caribbean, C&W Panama and our Liberty Networks segment.

Starting with Liberty Caribbean. We reported another strong quarter. On the left of the slide, we present our mobile KPIs. Postpaid mobile additions remained strong with mobile ARPU showing a healthy expansion on a year-over-year and sequential basis.

Moving to the center of the slide to our fixed KPIs, the broadband subscriber base remained flat in Q3 with gains in Jamaica offset by declines mainly in Trinidad. Other highlights include the launch of 5G in Barbados, becoming the second market in our Liberty Caribbean segment to offer 5G alongside cable.

Now turning to Hurricane Melissa. Damage is significant in the rest of the country, while the major economic hub of Kingston in the more populated east has been much less impacted. The situation remains very dynamic and impacted by the speed of power restoration on the island. Our latest data suggests that we are very thankful that 100% of our staff is marked as safe.

Secondly, mobile traffic on our network is back to 80% of pre-hurricane levels. In our fixed network, over 40% of our overall customers are online, while in the major metro areas, we are at over 80%. On the power side, over 50% of Jamaica's power service customers have power, and 14 out of 15 of our owned and operated stores are open now and are supplemented by 17 stores on wheels, 2 of which are dedicated to just our B2B customers.

Jamaica is a key part of Liberty Caribbean, a region we have operated in for over 150 years. We will be working tirelessly to repair and rebuild our infrastructure, leveraging the vast experience of the local and central teams while continuing to bring in partners like PTI under Towers, JPS and Powers and others to quickly stand our services back up.

During the hurricanes approach, we went live with a satellite partnership with Starlink Direct to Cell in Jamaica to offer emergency Direct to Cell connectivity for our mobile customers. This played a key role in helping customers stay connected in areas where the mobile network has been down, and we have seen more than 140,000 unique users successfully attached to this D2C technology.

As recovery efforts continue, we are beginning to see customers returning to our mobile network. While it's too early to assess the full impact of the hurricane, we would remind investors that we maintain parametric insurance across the Caribbean. One of its advantages over traditional indemnity insurance is that it pays out quickly, which facilitates a more rapid repair and rebuild. Chris will provide more perspective on this in his section.

Moving to Slide 7 and our C&W Panama segment. Starting on the left of the slide. We continue to deliver postpaid net adds as customers migrate from prepaid. While this is a deliberate strategy, we are also pleased to report a return to prepaid growth after 2 consecutive quarters of decline driven by lower churn and a higher proportion of rejoining customers.

Moving to the center of the slide. We delivered another solid quarter of Internet subscriber additions. The more significant shift this quarter came from the B2B space. We have previously highlighted recent wins with government-related and in the enterprise space, and these deals are now beginning to flow through revenue. B2B revenue this quarter expanded 33% on a sequential basis and 14% on a year-over-year basis.

Next to Slide 8 and our final segment within the C&W credit silo, Liberty Networks. On the left of the slide, we present our Q3 year-over-year revenue evolution. Our strong performance in wholesale reflects the strength of our core operations and the growing demand for bandwidth across the region.

Enterprise remains a key growth engine with continued momentum in IT as a service and connectivity solutions, particularly in Colombia and the Dominican Republic. These services are helping us build a strong base of monthly recurring revenue, which supports long-term stability and positions us well for the future.

From an operational perspective, in August, Liberty Networks announced a major milestone with the launch of MAYA-1.2, an enhanced system spanning 2,386 kilometers that doubles the capacity of the existing subsea cable MAYA-1, and will continue to deliver critical capacity. This strategic upgrade represents a long-term investment in regional infrastructure, strengthening international connectivity and digital resilience throughout the Caribbean and Central America. This investment will also clear the way for the installation of Manta, the new pan-regional subsea cable system. We remain on track and excited about monetizing this asset in the coming years.

Turning to Slide 10 and Liberty Costa Rica. Starting on the left of the slide. The main driver of our top line continues to be postpaid mobile segment. Through the first 9 months of the year, we have added almost 130,000 postpaid subscribers, representing a 13% expansion on the Q4 2024 base with a particularly strong Q3 performance.

One of the drivers is our successful commercial strategy of migrating prepaid subscribers to postpaid and the good pickup in our Planes Libre offering. This is the lower-end postpaid plan, but is nevertheless accretive.

Prepaid to postpaid migration is supportive for ARPU and churn helping to offset broader competitive tensions. Having now acquired the 5G spectrum we were awarded earlier this year, we look forward to further strengthening our mobile leadership in Costa Rica through the deployment of our standalone 5G mobile network in partnership with Ericsson.

Moving to the center of the slide. On the broadband side, we continue to do a solid job maintaining our subscriber base despite a competitive market. We continue to work on strengthening our commercial offering in the market.

Early in Q3, we launched an offer for new and existing customers to have access to the most popular over-the-top platforms, included India Home Plan. This bold and meaningful value proposition unique for the Costa Rican market is anchored by a new brand claim: you want it, you got it.

As we have highlighted in our 10-Q, the regulator in Costa Rica, Sutel, has issued a resolution prohibiting our proposed transaction with Millicom. This outcome was surprising, given we have worked closely with the regulator over a number of months to design the appropriate remedies to address any competitive market concerns. We have filed an appeal and would expect a response shortly.

In the event our appeal is denied, we intend to drive cost savings in our operation that we held off pending the combination with TiVo. We are starting to lay the foundation for that as we speak.

Moving to Slide 12 in our third credit silo, Liberty Puerto Rico. Starting on the left of the slide. Mobile performance showed greater stability with postpaid losses lower compared to Q2, with churn tracking in the right direction. Commercial efforts in the third quarter focused on the launch of our new postpaid value proposition, Liberty Mix.

Early results have been supportive. Momentum on gross adds have picked up modestly through Q3 with an improving port-in port-out ratio. Perhaps more significant at this stage has been the support to gross adds ARPU with the higher tiering subscriber blend leading to a 40% increase in September versus the month prior to launch.

On the fixed side, we continue to see some competitive pressure impacting our subbase, though ARPU is sequentially stable and up on a year-over-year basis following price increases earlier this year. We launched a new commercial campaign on our fixed offer with a central theme of reliability with 3 distinct components.

Firstly, recognizing that many homes in Puerto Rico have generators given the frequent power outages on the island, we launched a product that allows our fixed service to be up and running during these power outages by defaulting to the mobile network. We also offer new software in our devices that drives a stronger Wi-Fi experience in the home. Confident in the reliability of our network, we are also incorporating a 30-day network guarantee for customers.

As we look out over the coming months, we will continue to ramp up commercial efforts on our fixed mobile convergence offer, Liberty Loop. Given FMC penetration across a number of markets in the LLA Group, we know that Puerto Rico is a laggard at just 23%, of which only 10% are real FMC customers who have converged products and are receiving a financial or experience benefit from them. Our focus on FMC is increasing, and we expect this to be a good driver into 2026.

With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris?

Thanks, Bal. I'll now take you through our Q3 financial results, starting on Slide 14. We posted revenue of $1.1 billion and adjusted OIBDA of $433 million, reflecting rebased growth of 1% for revenue and 7% for adjusted OIBDA year-over-year. All of our operating businesses reported year-over-year rebased growth on both revenue and adjusted OIBDA with the exception of a decline in revenue at Liberty Puerto Rico.

Sequentially, as compared to Q2, LLA's reported revenue increased 2% and adjusted OIBDA increased 4%, a solid uplift, which sets momentum into Q4. Reflecting both lower capital intensity with P&E additions at 13% of revenue in Q3 and continued adjusted OIBDA expansion, LLA posted adjusted OIBDA less P&E additions of $284 million in Q3, a 22% improvement year-over-year.

Although we were up year-over-year on adjusted OIBDA less P&E additions, our reported adjusted FCF before partner distributions was $16 million in Q3, a decline year-over-year.

Our cash flow performance in Q3 continues to be challenged on collections, principally from our government customers, some of which we anticipate to receive in Q4. In addition, our prior year quarter benefited by approximately $90 million due to the positive impact of handset monetization during the quarter and the proceeds from the Hurricane Barrel weather derivative payout. As mentioned previously and consistent with prior years, we expect robust free cash flow performance in Q4, even with the impact from Hurricane Melissa, which should be mitigated in part by proceeds from our parametric insurance program.

Slide 15 recaps our Q3 results for the C&W credit silo, which consists of Liberty Caribbean, CWP and Liberty Networks. Starting with Liberty Caribbean. In Q3, we reported $369 million in revenue with 3% growth year-over-year on a rebased basis. This result reflects year-over-year rebased growth of 5% in residential fixed, while both residential mobile and B2B increased by 2%. Revenue performance was supported by continued growth in FMC as evidenced by the postpaid additions over the last year, selected price increases across geographies and products and a favorable comparison to the storm impacted Q3 2024.

Adjusted OIBDA came in at $173 million, representing 10% rebased growth year-over-year. Besides revenue contribution, a key driver of the strong Q3 rebased growth was lower operating costs, reflecting the continued impact of Liberty Caribbean's comprehensive efficiency and savings program, and relatively flat direct costs on a higher revenue base. For Q3, Liberty Caribbean's adjusted OIBDA margin improved nearly 300 basis points year-over-year, reaching 47%.

Building upon Balan's points relating to Hurricane Melissa, we are in the early stages of assessing the operational, financial and economic impact of the storm. There are a number of dependencies, including the timing of the return of power to parts of Jamaica, which will influence our ability to provide service to customers. We anticipate adverse impacts to RGUs revenue and adjusted OIBDA in Q4. As a point of reference, Jamaica generated about $108 million of revenue in Q3, which is less than 10% of LLA revenue.

Next, moving to Cable & Wireless Panama. CWP delivered $199 million of revenue and $72 million of adjusted OIBDA with year-over-year rebased growth of 6% and 4% respectively. The top line increase was driven by 14% higher B2B revenue year-over-year, which reflects the solid pipeline we had in Q2, and we continue to see good B2B momentum into year-end. Adjusted OIBDA growth reflected the lower margin B2B project revenue, while we also realized improvement in network and labor costs over last year's Q3.

Turning to Liberty Networks. We generated $117 million in revenue and $65 million in adjusted OIBDA with a year-over-year rebased increase of 6% and 10% respectively. The rebased growth rates are our strongest in about 2 years. Each of our 2 business segments experienced solid year-over-year revenue growth with 5% rebased for wholesale, driven by subsea capacity revenue and 6% rebased for enterprise, reflecting continued growth in managed services and higher B2B connectivity.

Our adjusted OIBDA growth reflects the positive impact of the revenue increase as well as lower bad debt year-over-year. Aggregating all 3 operating segments within the C&W credit silo, we generated $662 million in revenue, reflecting a year-over-year rebased increase of 4% and $309 million in adjusted OIBDA, resulting in an 8% year-over-year rebased growth.

Moving to Slide 16 and the Q3 results for our 2 credit silos: Liberty Puerto Rico and Liberty Costa Rica. On the left, Liberty Puerto Rico. Q3 revenue was $298 million with a 5% year-over-year rebased decline. The primary drivers of this decline are a 7% rebased decrease in mobile residential revenue and a 16% decrease in B2B, both of which primarily relate to subscriber losses stemming from the mobile network migration completed last year.

Adjusted OIBDA of $96 million in Q3 reflects 7% rebased growth. Mitigating the revenue decline over the last year, a key factor behind the year-over-year adjusted OIBDA growth this quarter is a comprehensive cost reduction plan the business has undertaken in order to rightsize and streamline its operations given the lower revenue and subscriber base. Additionally, the business also benefited from lower bad debt expense year-over-year.

Concluding with Costa Rica on the right, we delivered Q2 revenue of $155 million and adjusted OIBDA of $56 million, representing a 3% rebased revenue growth and 7% rebased adjusted OIBDA growth year-over-year. Performance was driven by our residential mobile business, which grew 7% on a rebased basis year-over-year and was fueled by higher postpaid volumes and strong equipment sales. In addition, the operating team has been focused on controlling costs, which supported margins this quarter and is in the process of working through a more comprehensive plan for 2026.

Next to Slide 17 and our Q3 balance sheet metrics for LLA. We had $8.4 billion of total debt, $600 million of cash and $900 million of borrowing capacity at September 30, of which our Puerto Rican group accounted for $2.9 billion of debt, around $120 million of cash and roughly $170 million of borrowing capacity.

On an LLA consolidated basis, we posted net leverage of 4.6x, a slight improvement from Q2, helped by the higher adjusted OIBDA in Q3 from across our operations. If we exclude Puerto Rico from the leverage calculation, our net leverage would fall about a turn to the mid-3s.

With respect to Puerto Rico, there are 2 balance sheet developments to highlight. One, the Puerto Rican business successfully raised a $250 million secured financing, of which $200 million was borrowed during Q3 via an unrestricted subsidiary approach. This provided the business with near-term liquidity to continue investing in operations and more than half of the proceeds were used to repay a significant portion of its fully drawn RCF.

Second, as highlighted in early August, the liability management process is underway, and the business is actively engaging with its various stakeholders. As you can appreciate, given the ongoing discussions with stakeholders in the business, we are not in a position to provide further updates at this stage as regards to both the expected outcome and the timing thereof.

Turning to how we protect our assets from nat cat events. We use a robust parametric program across our C&W and LPR credit silos. Our weather derivative was triggered and should help us mitigate losses from property damage, business interruption and other impacts from Hurricane Melissa. We expect to receive $81 million in third-party proceeds before year-end.

Moving to Slide 18 and to wrap up our prepared remarks. As a recap, Q3 was a very good quarter at the operating level with top line expansion and improved adjusted OIBDA. No doubt, it will take time to recover from Hurricane Melissa and Jamaica, but I do know our employees are resilient and up to the task.

We remain focused on getting key communications up for our customers and are encouraged by the quick progression in lighting up service since the event. As I highlighted on the last slide, the payout from our parametric program will be invaluable to our Jamaican recovery and should go a ways to mitigating the overall financial impact.

As we look to finish the year, several important points to reiterate. One, our commercial plans remain robust on both B2B and residential, and we will be focused on the seasonally strong holiday selling season across many of our markets. Two, our cost reduction and efficiency programs across LLA continue to deliver, which will support and underpin our adjusted OIBDA and cash flow as we move into 2026. And three, cash flow is expected to be strong in Q4, and we continue to work hard across all of our businesses to deliver on that objective.

And finally, we at LLA remain focused on improving value for our shareholders as we fundamentally believe the share price doesn't reflect the value of our businesses. We are focused on organically growing the business, pursuing strategic initiatives and optimizing capital allocation. These 3 components will be helpful in unlocking incremental shareholder value.

With that, operator, please open it up for questions.

[Operator Instructions] Our first question today comes from Milena Okamura of Goldman Sachs.

The first one is on timing and progress of your cost-cutting initiatives. Are they expected to be mostly done by Q4, benefiting 2026 as well? Or is it more gradual process throughout the next year? And are there any specific regions or cost lines where you expect this to be particularly relevant? And the third question, sorry, is if you could give us more color on margin drivers for Liberty Networks. You mentioned a bad debt reduction, but was that the main driver for the margin expansion? Or there were other factors that supported?

Thank you for the question. So let me talk about our cost cutting. We embarked on this about literally about 20 months ago, and we're starting to see the benefits now certainly this year. And we anticipate it to follow through in 2026 as well. Our cost cutting continues through the end of this year and into the first half of next year as well.

And there's a number of things that we look at. Clearly, cost of goods sold, the way we do COGS, there's a number of line items in there that we focused on. We also focused on other OpEx costs, including the tower leases. And of course, we also focused on labor. Where it makes sense, we've taken a very sharp look at the labor in our business. So my sense is that in 2026, there will be more opportunities in especially in the first half. But you see us also focus on revenue, and that's the other part of where we look at our margin expansion.

Now on Liberty Networks margin drivers, there's a number of things that drove some of the margin expansion as we get off a lot of our IRUs acceleration, there's a lot of work that we've been doing. Bad debt has improved, as you pointed out. And

Apologies, ladies and gentlemen, we have lost connection to the management team's line. Please be on pause till we resumed the call.

Thank you. Please proceed.

I'm sorry, I think we lost our connection. I'm not sure at what point or where we dropped. Do you know where we dropped?

You are at Liberty Networks, Balan. Liberty Networks, I would do again.

Okay. Yes, on the Liberty Networks, I think we were talking about margins on both sides in the OCF and OFCF level. And at an OCF level, as you pointed out that that has improved. There's a lot of things that we've done there, and we've also gone more and more to our monthly recurring revenue, taken off a lot of our -- coming to an end a lot of our IOU acceleration. And then, of course, at an OFCF level, our expenditure on project Manta is starting to grow. And the numbers are where we like it to be. We remain very bullish on this segment.

Our next question of today comes from Ernesto Gonzalez of Morgan Stanley.

So it's 2 from our end. The first one is on Puerto Rico. Could you please talk about room for additional margin expansion in the unit? And also on your cash uses outside of Puerto Rico, any details that you can share on priorities across deleveraging, buybacks, dividends and also any details on timing are greatly appreciated.

Okay. On the first part, you'll continue to see margin expansion in Puerto Rico as we continue to recover the business. This year, our focus in Puerto Rico has been on the cost side, a significant focus on both the OpEx line, CapEx line, cost of goods line. Every single line item in that business was scrutinized, and we are running it, I think, very, very efficiently.

The second stage of our margin expansion there comes from revenue growth. And you can start seeing already the numbers are coming in, even though we didn't post a revenue growth number this quarter. I anticipate next year, we'll start to see some positive uptick from a lot of the hard work that's going in this year. Systems have improved. Our processes have improved. Our store process have improved. Our sales teams productivity has improved.

In addition to that, we've started the launch of our FMC. And there are questions as to why have we waited so long for FMC. Well, there were a lot of things that we had to do to fix, especially on our IT systems. We continue to have 2 different billing systems on fixed and mobile, but we had to do a lot of work on the mobile side. And now we're able to completely link it. This is our lowest FMC penetration in all of LLA, and we see some really bright future. And in addition to that, our channels are also improving, and we've got lower cost channels coming in, in 2026 as we embark on more digital sales. So there's a lot of really positive things that will happen to improve the margins.

Now your second question, I think you were talking about our cash position in LLA in general outside of Puerto Rico. I didn't quite catch your question.

Sorry, it was on your uses of cash. So what do you expect to do across using the cash you're generating or you will generate for deleveraging buybacks, dividends and also any details on timing?

Okay. Great question. Well, of course, our capital allocation strategy, we revisit it constantly. You'll see a lot of our cash generation comes in towards the back end of the year in the fourth quarter. As Chris pointed out, we are very confident on our fourth quarter cash generation. And together with our Board, we will determine the traditional ways of looking at our capital allocation, whether it's stock buyback, paying down our debt or even considering issuing a dividend. Everything is on the table as we look at the deployment of that cash.

Our next question comes from David Lopez of New Street Research.

A couple of questions, please. On Puerto Rico on the fixed business, I was wondering if you can comment on competition. I think you mentioned a bit more competition this quarter. Is it coming from traditional cable or fibre? Or is it fixed wireless access who is getting more traction?

And the second question is on Jamaica. I don't know if you can maybe tell us what's the proportion of the network that needs to be rebuilt and the proportion of the network that needs to be repaired. And if you can give a bit more color on the deal with Starlink that you mentioned in the press release.

Okay. I'll start with the Puerto Rico part. Our fixed business there last year -- sorry, last year. This year, earlier this year, we took a price increase, and we saw churn bump up post the price increase. And in addition to that, of course, competitive pressures have increased in Puerto Rico. Our sense is that for the most part, our churn, by the way, still remains quite low, but the churn that we're seeing, we are mostly going to other fixed operators. They're not going to fixed wireless. That's where the churn -- our product is actually very competitive, both from a price standpoint. And from a speed standpoint, we are actually doing really well.

And here's why we're excited about our fixed business going forward. We've launched a number of new products there. We've revised our pricing, like I said, with our FMC bundle, but we've also launched a couple of new products. One of it is our always-on product, we call it Kepon in Puerto Rico. And that was one of our disadvantage beginning of this year with a lot of power outages in Puerto Rico, where a competitor with fibre would probably not experience the outage if they have generators at home. Yet in the HFC plant, you would see an outage. But with this new Kepon product, the customer doesn't miss a beat at all. And we're quite excited about that.

In addition to it, we've also improved our Wi-Fi in the home with a software upgrade that now makes us really one of, if not the best Wi-Fi in the home. So we feel really good between our FMC, our new products, our always-on product, and high reliability, and that's why we've also launched a 30-day moneyback guarantee to customers -- new customers that come into our network. So that's on the Puerto Rico phase.

In Jamaica, we're still studying it. There's a number of things that we're looking at, right? A quite a bit of our outages right now is because of power or the lack of it. And as of today, the Jamaica power company, JPS, is about 50% back on in Jamaica. To our network specifically, it's more closer in the 40s, the mid-40s to our network where JPS has power too. So as the power comes back, you'll see our network recover.

Now having said that, the hurricane did go through the west part of the island quite seriously and has damaged a number of our towers. But as you recall, we have -- we did a deal with Phoenix Tower, where with that deal PTI is responsible for the rebuild, and they've been great partners. They've put people on the ground, and they are rebuilding those towers on our behalf. So there will be some work, but there's more to come. I think we're still in the early days of evaluating both the network damage as well as what is really done because of power. And as power comes back, I think you'll see our network come back up as well.

Yes, there was a third question on Starlink. Let me say it this way, they have been great partners. And the product that we launched, we did it in literally like 72 hours, which is the DTC product. And this was actually very, very well received by our customers. So the way it works is when you do not have access to our cell power, and so you don't have network access in your mobile phone, you can do text and very low bandwidth data like WhatsApp, low bandwidth WhatsApp through Starlink. And this kept a lot of our customers with full connectivity. So we felt really good about the product.

The second part of what we're using Starlink for is in our B2B customers, we fired up Starlink as a backup to our fixed product. So where our fixed product is down, Starlink comes up. Now where there's no power into that business, then it doesn't matter what the method of connectivity is. But for the most part, we are already building up a lot of our B2B or fixed network because most of our B2B customers are in Kingston, and that's coming up. The second concentration of B2B customers is in Mobi up north, northwest. And in that area, power is still out. There's a lot of challenges there, but we are slowly rebuilding that part as well. And Starlink has been a really, really good partner of ours.

Our next question comes from Matthew Harrigan of the Benchmark Company.

We all know it's dangerous to draw inferences from the U.S. mobile market. Looking at your markets, people can't run out and buy an iPhone 17 Pro on a whim and conversely, favorably, you have a lot more penetration upside, particularly on postpaid. But 2 things in the U.S. market.

T-Mobile is really doing well because they have such a high switching share because they have a better network. And in fact, if you run the numbers, the whole industry can slow down a lot and they can still grow nicely on account of the superior switching share. And then the cable operators, of course, have FMC advantages with the MVNO that they have with Verizon. And you arguably could be positioned for both of that as you get these good postpaid numbers in the Caribbean markets in particular. But would you say that's a factor? Would you say that even though people aren't buying the highest price point phones that there's some device innovation that's a factor because clearly, you're putting up really nice postpaid numbers.

And then on the parametric insurance, because Melissa just had those record wind speeds and all that, and I know it's very precise and exactly where the speeds were recorded and all that, but it feels like you could get quite a disparity between the damage incurred and the payout. And it also feels like the insurance companies have to constantly appraise their approach in doing that because it feels like you could get some quirky results, bad and good for you or the insurance companies, depending where you get the wind speeds and where you get the actual damage because I'm sure you know at this point how fickle damage and both for life and property can be from a hurricane.

Thanks and congratulations on the progress. And I'm very sorry in Jamaica. I've been there a number of times, a beautiful country.

Matthew, thanks for your comments. I agree with the first part of your comment that as we get more and more postpaid, there is a lot of stability in that revenue. And that's why we've been focusing a lot on that, and you get out of a lot of the washing machine of the prepaid business, even though we do love the prepaid business as well. And in most of our markets, you'll see our COGS is not as high because it's not an equipment-driven market. So it's really a great business for us on postpaid.

On insurance, I'm going to let Chris comment, but I'll tell you, Chris and his team did a tremendous job. This is -- there's some luck involved clearly because of the path of the hurricane. But the way the hurricane parametric insurance was designed with the concentric rings, it was very thoughtful. And in this case, the path of the hurricane triggered the Westside ring and it triggered one of the other layers of the concentric rings from Kingston as well. We feel really good about this.

And one of the great things that Chris did as well is that the payout is quick. So the NPV on this insurance is really good. But I'll ask Chris to give you a bit more color.

Yes. Nice to hear from you, Matt. I mean I think as we look at the parametric, I mean, it's highly, highly analytical and studied over hundreds of years of storms, and we focus on where the value in our business resides so that it is protected. So if it does go over an urban center that there is a recovery to help mitigate the damage on both BI and property. But it's always evolving each year. We continue to get smarter on trying to figure out the best ways to protect risk for our business. And we have a decade plus of knowledge here of continuing to evolve this particular parametric program.

Thank you. We have no further questions. So that will conclude today's question-and-answer session. I'd like to hand the call back over to Balan Nair for any additional or closing remarks.

Thank you, operator, and thank you, everybody, on the call for your support. We are very pleased with our results this quarter, and we see it continuing in this trend. All our initiatives are kicking in. And as you can see, it's starting to yield very nicely. We feel the future is really bright here in LLA. Thank you very much again for your support.

Ladies and gentlemen, this concludes Liberty Latin America's Third 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, where you can also find a copy of today's presentation materials.

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 Soomit Datta, VP of Investor Relations for Liberty Latin America.

Good morning, and welcome to Liberty Latin America's Second Quarter 2025 Investor Call. [Operator Instructions]. .

Today's formal presentation materials can be found under the Investor Relations section of Liberty Latin America's website at www.lla.com. Following today's formal presentation, instructions will be given for a question-and-answer session. As a reminder, this call is being recorded. Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook and future growth prospects and other information and statements that are not historical fact. Actual results may differ materially from those expressed or implied by these statements. For more information, please refer to the risk factors discussed in Liberty Latin America's most recently filed 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 Investor section of our website.

I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Soomit, and welcome, everybody to Liberty Latin America's Second Quarter and First Half 2025 Results Presentation. I'll begin with our group highlights and an overview of our operating results by [indiscernible]. 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 talented executive team from across our operations, and I will invite them to contribute as needed during the Q&A following our prepared remarks.

That's 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. Today, we believe our share price does not fully reflect the intrinsic value of our underlying business. The unlock is value for our shareholders. We plan to proceed with the separation of Liberty Puerto Rico from LLA. It is essential that Liberty Puerto Rico is positioned with a strong and sustainable capital structure post separation. To that end, we are actively working towards this goal through a targeted liability management exercise. Chris will provide more details on this in his section. We also continued to grow our high-speed broadband and postpaid mobile base in the first half, adding 70,000 subscribers in total across the group. This was over 100,000 additions Puerto Rico with the main contributor being Costa Rica, Panama and Jamaica. We reported $2.2 billion of revenue in the first half of 2025. In the same period, residential revenue was up 2% in Liberty Caribbean and Costa Rica and 8% in C&W Panama year-over-year on a rebased basis. We expect these businesses to continue the momentum in the second half following the launch of new customer value propositions, which should resonate well in our markets. In addition, and after less favorable phasing through H1 we anticipate better momentum on B2B revenue in the second half across a number of regions.

We posted adjusted OIBDA of $822 million reflecting a rebased year-over-year growth rate of 8% in the first half. This includes double-digit rebased growth in Liberty Caribbean, Panama and Puerto Rico. We maintain our focus on lowering capital intensity. These efforts led to a 23% expansion in adjusted OIBDA less P&E additions year-over-year, bringing us to a margin of 25% of revenue in the first half of the group and 29% excluding Puerto Rico. These are strong numbers, reflecting the focus of management on profitable growth, which is expected to drive strong cash conversion in the second half. Turning to Slide 6. I I'll begin our operating review with our cable and wireless credit silo, which had another very solid quarter. This silo includes Liberty Caribbean, C&W Panama and our Liberty Network segment. Starting with our Caribbean operations, now named Liberty Caribbean. We've rebranded this segment in the second quarter with a refreshed identity and signaling a renewed focus on driving digital transformation, particularly in the B2B space. On the left of the slide, we present our mobile KPIs. Postpaid mobile ads remained strong, led by another solid quarter in Jamaica that represents 20 consecutive quarters of subscriber growth. Mobile ARPU reported growth both sequentially and year-over-year, supported by prepaid price increases implemented earlier this year and in the first half of last year. This resulted in 6% mobile rebased revenue growth in Q2 year-over-year. Moving to the center of the slide to our fixed KPIs. Broadband subscriber growth was flat in Q2, with gains in Jamaica, offset by declines mainly in Trinidad. Trinidad is the only Caribbean market we operate in, where there are 3 national fixed players and where we lack a mobile offering.

Fixed ARPU per customer relationship increased both on a sequential and year-over-year basis, reflecting the benefit of pricing changes. Lastly, for Liberty Caribbean, besides our corporate rebranding we launched a new residential campaign title, [indiscernible]. This initiative strengthens our convergence strategy with a particular emphasis on accelerating postpaid mobile adoption. The redesigned platform introduced a striking new visual identity that is on distinctive and deeply rooted in local cultures, traditions and values, enabling us to build a stronger emotional connection with our customers. Moving to Slide 7 and our C&W Panama segment. Starting on the left of the slide. We delivered another quarter of strong postpaid adds which supported robust mobile rebased revenue growth of 6% year-over-year. This performance continues to reflect the positive subscriber momentum we built following a competitor's exit from the market last year. Mobile ARPU remained stable both sequentially and year-over-year, impacted by lower prepaid recharges during the quarter, largely due to nationwide protests, which have since subsided. Moving to the center of the slide. We delivered a solid quarter of internet subscriber adds. This growth reflects the effectiveness of our broadband strategy and continued demand for high-speed connectivity -- on the other hand, fixed ARPU declined both sequentially and year-over-year. This was primarily driven by retention discounts and lower acquisition ARPU as we responded to office from competitors.

Our go-to-market strategy remains focused on delivering consistent results across our high-speed networks. This commitment was recently recognized by Amber, which named as the best-performing fixed network in the country. In the B2B space, I'm pleased to highlight among other recent rents, a major milestone. We were awarded a contract with the Ministry of Education of Panama, Maduka to provide high-speed and net of all public schools nationwide. This marks a significant step forward in advancing digital and educational inclusion across the country. Overall, we are building a strong platform in Panama. After a tough comparison in the first half, we are well positioned to carry better momentum into the second half of the year. Next, Slide 8 in our final segment within the C&W credit silo, Liberty Networks. On the left of the slide, we present our first half year-over-year revenue evolution. While revenue declined year-over-year due to the acceleration of noncash IRU revenue in the first half of 2024, our subsea business continues to demonstrate resilience. Excluding IRUs, the underlying wholesale revenue grew 8% on a rebased basis year-over-year, driven by new lease capacity sales. This reflects the strength of our core operations and the growing demand for bandwidth across the region. Enterprise remains a key growth engine with continued momentum in IT as a service and connectivity solutions, particularly in the Dominican Republic, and El Habito. These services are helping us build a strong base of monthly recurring revenue, which supports long-term stability and positions us well for the future. On the right of the slide, we highlight the core strength of our subsea and terrestrial infrastructure, which underpin the competitive edge of Liberty networks. Our unique mesh network connecting over 30 countries with 50,000 kilometers of cable form the backbone of a diversified revenue portfolio, predominantly denominated in U.S. dollars. Despite elevated capital expenditures associated with Project Manta, our new subsea cable system in partnership with Sparkle and Gold Data, we continue to deliver robust adjusted OIBDA less P&E additions of over 35% of revenue. reflecting the low capital intensity of the business and its ability to generate strong cash returns. Looking ahead, our focus remains on the successful execution of Project Manta.

On track for completion in 2027, the initiative is expected to establish a solid foundation of monthly recurring revenue, enhancing long-term profitability and positioning Liberty Networks as the region's primary data hub. Turning to Slide 8 and Liberty Costa Rica. Starting on the left of the slide. Mobile continues to perform strongly with growth concentrated in the high-value postpaid segment, reinforcing our leadership in the market and driving 5% rebased revenue growth year-over-year.

According to the latest regulator report, we remain the #1 mobile operator overall in Costa Rica throughout 2024. In postpaid specifically, reaching 2 percentage points in market share year-over-year. Mobile ARPU was flat sequentially but grew year-over-year ordered by postpaid price increases and a higher proportion of postpaid subscribers. Moving to the center of the slide. We delivered modest broadband net adds and fixed ARPU decline was sequentially and year-over-year. As referenced in previous calls, the competitive backdrop in Costa Rica's fixed market remained challenging. To defend our fixed position and differentiate our offering, we have also revamped our video proposition. -- since July 15, new and existing customers have access to the most popular over-the-top platform included in their home plan. This bold and meaningful value proposition unique for the Costa Rican market is anchored by a new brand play. You want it, you got it. It's a promise that brings us closer to our customers, showing that we listen, we care and we deliver. Moving to Slide 12 and our third credit side, Liberty Puerto Rico. Starting on the left of the slide, mobile performance showed signs of improvement. Postpaid losses were lower compared to Q1, with a better run rate in May and June and mobile ARPU increased sequentially, resulting in relatively flat sequential mobile subscription revenue. We continue to be focused on the mobile segment, and I'm pleased to report that in June, we successfully expanded our network through the integration of low-band 600 megahertz spectrum alongside AWS 3 and AWS all bands. This strategic enhancement marks a significant step forward in service quality, capacity and coverage. This combination of spectrum bands is instrumental in meeting the surging demand for mobile data, ensuring we remain well positioned to support future growth.

As a reminder, we were honored with both the best-in-class and the most reliable network awards from GWS earlier this year, further validating the strength and consistency of our network performance. Moving to the fixed side in the center of the slide. Following the price increase implemented earlier this year, we reported 7,000 Internet subscriber net losses, a fixed ARPU increased both sequentially and year-over-year. Fixed revenue was slightly negative year-over-year as ARPU growth was more than offset by a lower subscriber base, impacted by the discontinuation of the ACP program in Q2 2024. We are now close to 20% fiber to the home and have invested to upgrade our HFC network to DOCSIS 3.1. This enhancement has significantly boosted their performance and enable us to win the fastest fixed network award from Ookla, achieving the highest speed scores and WiFi performance on the island. Slide 3, provides a deeper look into postpaid net adds, the evolution of mobile NPS, the launch of our new postpaid CBP, Liberty Mix and other initiatives. On the left of the slide, we break down postpaid activity into gross adds and disconnections. Gross adds over the past 2 quarters have remained consistent with pre-migration levels. underscoring the resilience and appeal of our product offering.

Postpaid churn continues to improve, marking the fourth consecutive quarter of positive momentum. Moving to the center of the slide. we show NPS progression, a key leading indicator of customer satisfaction and brand perception. Compared to 1 year ago, we've made significant strides in rebuilding customer trust with NPS showing strong recovery. While our mobile NPS have returned to positive territory, it remains below pre-migration levels, indicating further room for improvement. On the top right of the slide, we wanted to share more detail on Liberty mix. In July, we launched our new postpaid customer value proposition, Liberty mix, this innovative mobile plan offers treat tiers enabling customers to tailor each line to the specific needs of individual family of group members within the multiline bundle. Liberty Mix marked first step in our brand relaunch strategy and we anticipate it will drive gross adds in the second half of the year. On the bottom right of the slide, now that we have strengthened our network, IT systems and internal processes we are applying the same playbook used across the Liberty Latin America Group, where FMC has proven very successful, over 30% penetration in a number of markets to lean into convergence in Puerto Rico. Our combination of best-in-class fixed and wireless infrastructure should allow us to differentiate in the competitive marketplace. Being part of the wider group, Liberty Puerto Rico benefited from shared platforms and expertise. We've been developing solutions that use AI to improve our operations across our entire value chain, strong focus on commercial activities and top line growth. Specifically in Puerto Rico, we have been focusing on billing quality assurance and churn prediction. Moreover, we have made a significant number of changes to the management team, excluding leveraging experience and expertise from across the LLA footprint. Lastly, we continue to reshape the company's cost base to reflect the smaller scale of the business, conducting a disciplined review of each cost line.

We expect additional measures will deliver greater margin impact in the second half of the year. Finally, on Slide 14, we summarize our strategic vision and outline the key drivers that sets us up for growth in H2. Firstly, the residential space where we are well positioned reoperating countries with healthy market structures across both fixed and mobile services, and we pursue consolidation opportunities to deliver value to customers and markets. For example. Last year, we agreed to acquire Tigo's business in Costa Rica, which support growth in that market. We are working with regulators to approve that transaction and now expect this to close in early 2026. We -- our focus on fixed mobile convergence continues to pay off, with penetration rates exceeding 30% in several markets, supported by our robust fixed and mobile infrastructure. We have also introduced several new customer value propositions in recent weeks, reinforcing our commercial momentum heading into the second half.

Our second area of focus is B2B, which accounts for nearly 1/3 of group revenue. While we face year-over-year B2G revenue headwinds through Q2 and first half, particularly in Panama, we expect improved performance in the second half across several geographies to drive improving revenue momentum. Governments are investing in digitization, security and cloud computing, and we are the right trusted partner for them. Along those lines, ICT continues to be a source of future growth opportunity as we develop more encompassing cloud and cyber security solutions, focused on mission-critical operations for our customers. We partnered with the hyperscalers to deliver computational and AI models for our customers. The Manta bill, which progressed steadily through the first half, is expected to contribute meaningfully to Liberty Networks revenue and adjusted OIBDA over the medium term. Lastly, costs. We have delivered strong margin progression in recent quarters, especially within our C&W silo. Across the group, we continue to see upside as we focus on higher-margin residential products. Our initiatives around copper migration, digitization and AI adoption have significantly enhanced workforce efficiency leading to meaningful labor cost reductions. Additionally, we anticipate healthy synergies following the expected completion of the TiVo merger in Costa Rica.

With that, I'll pass you over to Chris Noyes, our Chief Financial Officer, who will take you through our financial performance before we move on to your questions. Chris? .

Thanks, Bob. Let me now take you through our financial performance in greater detail, starting on Slide 16. Q2 2025 revenue, was 3% lower on a rebased basis, totaling $1.1 billion. This decline was primarily driven by the phasing of project-related B2B revenues across several geographies. Importantly, we have good visibility into stronger delivery in the second half of the year. However, residential revenue grew 1% year-over-year on a rebased basis, reflecting the strength of our core consumer business. .

Turning to adjusted OIBDA. We reported a rebased increase of 7% to $415 million, building on a solid 8% growth in Q1. Among our segments, only Liberty Networks saw a year-over-year decline in adjusted OIBDA, largely due to the timing of noncash RU accelerations, which have now largely normalized. Supporting this growth is operating leverage as we continue to execute on a range of cost out initiatives across our operations. These efforts have contributed to an improvement in our consolidated adjusted OIBDA margin, which expanded by 340 basis points year-over-year. Moving to the last section, we highlight an important metric for us, which is adjusted OIBDA less P&E additions. This increased by 26% to $265 million representing 24% of revenue compared to 19% last year. The year-over-year improvement is reflective of the higher adjusted OIBDA margin and lower capital intensity with P&E additions amounting to 14% of revenue in the quarter. Although we were up year-over-year on adjusted OIBDA less P&E additions, our reported adjusted FCF before partner distributions was negative $41 million in Q2 as compared to negative $7 million in the prior year, a decline of $34 million. This was attributable to working capital swings, including timing on key collections from our government customers.

As in previous years, we anticipate a robust second half in cash flow generation, principally in the fourth quarter. Slide 17 recaps our Q2 results for the C&W credit silo, which consists of Liberty Caribbean, CWP and Liberty Networks. Starting with Liberty Caribbean. In Q2, we reported $366 million in revenue, with flat rebased growth year-over-year. This result reflects 6% growth in residential mobile, offset by a rebased decline of 3% and 1% year-over-year in B2B and residential fixed, respectively. The strength in mobile was driven by higher prepaid ARPU helped in part by selected price increases in a larger postpaid subscriber base, supported by our successful FMC and prepaid to postpaid migration strategy. Fixed residential revenue decline driven by lower volumes, mainly due to the impact of Hurricane Barrel in Q3 2024 and lower nonsubscription revenue. was impacted by lower project revenue, particularly in Bahamas. Adjusted OIBDA came in at $174 million, representing 11% rebased growth year-over-year fueled by optimization initiatives across our Island geographies and our operating cost categories, including our network and commercial expenses. Our efforts have translated into an adjusted OIBDA margin improvement of nearly 500 basis points year-over-year, reaching 47%. Next moving to Cable & Wireless Panama, generated $177 million of revenue and $69 million of adjusted OIBDA with a 10% rebased revenue decline and 6% rebased adjusted OIBDA growth year-over-year.

The rebased top line decline was driven by 30% lower B2B revenue, partly offset by increases of 6% and 2% in residential mobile and residential fixed, respectively. The year-over-year decline in B2B revenue reflects an exceptionally strong prior year comparison driven by high volume of government project wins in Q2 2024. We expect to catch up in the second half of the year, supported by a solid pipeline. The healthy mobile revenue uplift was supported by postpaid subscriber growth and higher handset sales. So prepaid was partially impacted by nationwide protest during the quarter.

The residential fixed revenue rebased growth was mainly driven by broadband RGU additions. Year-over-year adjusted OIBDA performance was driven by improved gross margin, helped in part by lower B2B project-related revenue and a reduction in operating expenses year-over-year. As a result, these factors led to an adjusted OIBDA margin expansion of almost 600 basis points to 39%. Turning to Liberty Networks, which delivered $115 million of revenue and $61 million in adjusted OIBDA, resulting in a rebased decline of 3% in both metrics. Specifically, wholesale revenue fell by 3% on a rebased basis due to an $8 million reduction in noncash IRU revenue amortization as compared to the prior year. Enterprise revenue declined by 1% on a rebased basis, mainly due to lower project-related revenue, which more than offset gains in IT as a Service and Connectivity.

Adjusted OIBDA was mainly impacted by the aforementioned decrease in IRU revenue. Aggregating all 3 operating segments within the C&W credit silo. We generated $636 million in revenue, reflecting a 3% rebased decline and $303 million in adjusted OIBDA, resulting in 7% rebased growth. Moving to Slide 18 and the Q2 results for our other 2 credit silos, Liberty Puerto Rico and Liberty Costa Rica. On the left, Liberty Puerto Rico. Revenue was $301 million, representing a 5% year-over-year rebased decline. Residential fixed revenue declined 1%, primarily due to lower volumes following the discontinuation of the ACP program. partially offset by higher broadband and video ARPU driven by price increases implemented earlier this year. Mobile residential revenue declined by 3% on a rebased basis, driven by lower postpaid subscriber base post migration. This was partially mitigated by higher non-subscription revenue, while prepaid revenue remained broadly flat. B2B revenue declined 18% on a rebased basis mainly due to lower mobile service revenue resulting from a reduced subscriber base and ARPU decline.

Adjusted OIBDA increased by 21% year-over-year on a rebased basis, reaching $87 million. The improvement was primarily driven by lower bad debt expense, the phase out of integration and TSA costs and reduced labor costs. P&E additions were $38 million, representing 12% of revenue, a 340 basis point decrease over prior year levels as the business actively managed its capital intensity. Concluding with Costa Rica on the right, we delivered Q2 revenue of $151 million and adjusted OIBDA of $54 million, reflecting a 1% rebased revenue growth and flat rebased adjusted OIBDA growth year-over-year. Mobile residential revenue grew 5% on a rebased basis, supported by higher postpaid volumes from our prepaid to postpaid migration strategy and strong equipment sales. Fixed revenue was down 3% year-over-year on a rebased basis, driven by lower ARPU, primarily due to our buy to own CPE model, which is, in turn, increasing nonsubscription revenue. B2B revenue was down 5% year-over-year on a rebased basis, mainly due to lower service rep. Adjusted OIBDA remained flat as revenue gains were offset by higher equipment costs and increased bad debt. Next to Slide 19 and our balance sheet metrics by credit silo and in aggregate for LOA as of June 30. The C&W silo accounts for approximately $5 billion of LLA's total debt of $8.2 billion and has covenant leverage of 3.9x. Given the refinancings we have completed over the last 9 or so months, we have linked in the silos average life to about 6 years. Turning to Costa Rica. We have about $500 million of debt and the business's covenant leverage of 2.1x with the debt stack due in 2031. And Importantly, we would expect to be in position post closing the TiVo acquisition in 2026 to refinance our debt to more attractive levels given the low leverage and underlying strong performance of the business.

And finally, Liberty Puerto Rico has $2.8 billion of debt, covenant leverage at 7.9x and debt maturities largely between 2027 to 2029. We will discuss our approach with the near-dated stack on the next slide. At the consolidated level, we have no debt at the holding company and thus in aggregating our 3 credit silos our $8.2 billion of debt reflects consolidated net leverage of 4.7x. Moving to Slide 20. Today, we wanted to highlight 2 key strategic initiatives that we have recently embarked upon at LLA and its operating businesses. Liability management at LPR and a concerted effort at LLA to unlock the underlying value of our operating assets. First, turning to the left side of the slide an ability upon the balance sheet discussion from the prior slide and the commentary that we have shared over the last year. Our local operating team and LLA more broadly have been highly focused on stabilizing LPR and improving all aspects of the underlying business. As Balan noted today, we are seeing green shoots of a recovery. With that being said, it is our view that the capital structure at LPR is unsustainable both in terms of quantum of leverage and expected carry cost. Hence, with still more than 2 years until our earliest bond maturity, we believe it is the appropriate time to look to improve and rightsize the capital structure. This should set LPR up for long-term success. Importantly, LPR has covenant flexibility in its credit documents, which will enable LPR to utilize its assets to raise incremental capital to the extent needed to fulfill near-term liquidity gaps.

For our team on the ground, it remains business as usual with the utmost focus on our employees, customers and vendors. -- and ultimately growing the business. There is no specific time line for resolving the capital structure. We'll look to communicate updates as necessary. Finally, LPR has appointed Moelis and Ropes & Gray to lead the execution of the liability management exercise. Moving to the right side of the slide, having previously reiterated the silo principle of the Liberty Latin America Group and in order to better highlight and unlock the respective value in our assets. we are announcing our intention to separate Puerto Rico from the rest of the LOE. This will enhance our ability to better position each of the respective businesses and their positive attributes, including market position, growth opportunity and potential cash flow generation. The separation can be affected in several ways, including a potential spin-off of LPR, and we are targeting to complete into the first half 2. Importantly, the separation is not dependent on completing the liability management exercise. In terms of the relative size of the 2 groups of assets and using 2024 full year results as a proxy, revenue and adjusted OIBDA for LOA excluding Puerto Rico, would have been approximately $3.2 billion and $1.3 billion, respectively. After deducting the reported segment results of Puerto Rico, which reported $1.3 billion of revenue and $300 million of adjusted EBITDA. On the same basis, and excluding Liberty Puerto Rico, LLA's adjusted FCF before distributions would have been nearly $200 million or almost 70% higher than what was reported as a consolidated group in 2024. This is not necessarily reflective of the separate results but a good indication.

We obviously expect FCF to expand from here given the underlying operational strength of the business as we have demonstrated through Additionally, the remaining LLA business would be levered roughly one turn lower from where it is today. Post separation, LOA expects to have the ability to enhance its capital return strategy, including the potential for not only share repurchases but recurring dividends, capitalizing on the FCF generation of the LLA assets excluding Liberty Puerto Rico. Citi and LionTree are working with LLA on asset separation as well as other corporate options to help to unlock equity value at LA and remove the embedded valuation discount that we believe has been apparent in our equity trading price.

Moving to Slide 21 and our conclusions. In the first half, we delivered solid results. Adjusted OIBDA grew at a high single-digit rate with particularly strong growth in the C&W silo. We also saw a year-over-year decline in P&E additions. This is a reflection of our disciplined capital intensity management and improved operational efficiency. Looking ahead to the second half, we are optimistic. We have launched new customer value propositions aimed at sustaining residential momentum. On the B2B side, we have a good pipeline that should support stronger revenue performance. In addition to these top line drivers, we have substantial cost-out initiatives and flied across each of our businesses and corporate and expect more favorable working capital trends in all of which should set the stage for improved free cash flow performance as we close the year. Our operating prospects, combined with the actions that we just discussed on both the liability management and separation of Puerto Rico, we believe set the stage for value creation for LA shareholders. We look forward to updating investors over the next quarters as our projects advance and both the operating and corporate teams of LA are hard at work to deliver continued growth, margin improvement and cash flow generation.

With that, operator, happy to take questions.

The first question comes from Vitor Tomita of Goldman Sachs.

We have 2 from our side. They're actually on Panama. The first 1 is if you could give a bit more color on those are related to private or government projects and if there have been any actions issues on this B2B front, -- and the second question would also be on Panama, but on the margin side, margins in profit a lot improved a lot there. And to a point that EBITDA rose year-on-year despite the revenue [indiscernible]. Could you give more color on the OpEx reductions or efficiencies that allowed for that aside from revenue mix effects naturally?

Thanks for the question, and I'll ask [indiscernible] to join in here in a second as well. The B2B headwinds, primarily on comparison to a very, very strong second quarter. But in addition to that, we did deliver a number of projects to the government in the second quarter this year. that due to a lot of the bureaucracy and signatures required, we did not recognize that revenue. And so you'll start seeing that drop into in the third quarter. But for the most part, it's all BTG, it's business to government. And we post 1 of our largest customers as well.

So that's kind of a little bit of a headwind there. On the margin expansion, I mean, it's actually quite a strong story. You'll see the real margin expansion at the operating free cash flow level. And -- and the way we've done that is through both efficiencies at the OpEx level and efficiencies at the CapEx level. I mean the -- we see significant, I think, from the last time, it's like almost 7 points. And we think there's still plenty of room to grow as you look at some of our other operating units as well. So we are quite bullish around the margin expansion in Panama. The cash -- the revenue trajectory will change in the third quarter as the phasing issues of B2B. But I would like to highlight our mobile business that has been growing. Revenue has been growing and our fixed business grew as well. And the fixed business has, I think, even more opportunity for us because we do have a smaller market share in that market with a better network or fiber to the home network. So with that, Rocio, would you like to add some color? .

Sure. Absolutely. So on the revenue side for B2B, the headwinds that we were experiencing this quarter, I would say our B2B business is a tale of 2 cities. So one, the recurring business and the other side and nonrecurring business, which is mostly government revenue. So on the recurring business, we are experiencing quite a strong quarter, in fact. Just to give you a bit of comfort, we are seeing our customer base in -- both in mobile and fixed services, growing middle to high single digits.

So we're seeing the recurring business progressing -- continuing to progress very well with momentum. On the nonrecurring business, which is this type of big projects, in this case, 100% government projects, of course, it's basically depending on the phasing. So you have 1 big project like we won this quarter of the Maduka project rate, that was like $40 million.

However, until you are able to see it on your P&L, it takes time. and those -- this lumpiness of the nonrecurring business is basically what you are seeing right now. And as balances stated is something that we are hoping to see with a very different momentum on the second half of the year. So that's your point on revenue. On the increased profitability I think, is basically 2 main levers. At the gross margin level, it's basically the tailwinds from our well-performing recurring business, the residential business and the recurring part of the B2B business. And then at the OpEx level, we have done significant work over the last quarters in terms of streamlining our labor and our nonlabor OpEx and you're starting to see the fruits of that work. So glad you noticed.

The next question comes from Chris Hoare of New Street Research.

I just had a couple of questions on the plans around spinning out Puerto Rico. Obviously, you've mentioned that you want to use selected assets. I just wanted Wondered if you could clarify which assets in particular. I mean the key ones from my perspective would seem to be spectrum and the broadband network. But is there anything else that you think is material enough to be able to utilize.

Well, you've kind of highlighted a lot in the assets that we have, but we're really not commenting too much around how we can approach that liability management. The management -- our team right now, we just focus on running the business, improving the operational metrics, and -- but we -- as you highlighted, we do have some strong assets within the group that gives us financial flexibility. .

Okay. Great. And then just a sort of follow-up then. As you also mentioned, once Puerto Rico is separated, the rest of the group leverage is significantly lower. Would you feel at that point that you would want to delever the rest of the group further. So just trying to think about sort of potential shareholder remuneration, as you mentioned, the possibility of dividend or share buyback. I mean would there be a further need for delevering of the rest of the group? Or you think at that point, you have flexibility essentially around all of the cash flow to use it either shareholder remuneration or M&A, if there was something interesting from that perspective?

Here's how I'd say, if you look at the separated asset from what remains, just look at the EBITDA growth on that, and we will organically delever. That is kind of 1 point. And as Chris highlighted, the actual free cash flow generation of the RemainCo, especially if you look at our wholesale business, our subsea business, we're truing up quite good cash. And now certainly, dividend, stock buybacks and a number of things.

The traditional capital allocation strategy, we would go through it. But we're actually really excited about the cash flow generation of the business. We think the debt will organically delever as we expand our EBITDA and all the operational efficiencies that we've been working on kicks in. So from that sense, I think it's sitting pretty good. So you're going to have a lower levered balance sheet, good cash flow generation and a lot of optionality for management and the board to consider. .

And I would add that the capital structure on Cable & Wireless in Costa Rica is long term in nature. So over -- 80% of the debt is one or beyond. So that provides a huge amount of flexibility for the company.

The next question comes from Gabriel Baselina from Morgan Stanley.

Could you give a bit more color on the impairment you had on Porto Rico? That would be my [indiscernible]

Sure. The impairment is really around the spectrum that we have here in Puerto Rico, and we had a third-party assessment on that. This is a spectrum that came to us from the AT&T acquisition. And as you know, we recently acquired new spectrum from DISH, which required a valuation pegged on the spectrum that we already own. It's an accounting adjustment. Brian, do you want to add to that?

No, that's right. The spectrum was compared from the AT&T acquisition, which had a relatively higher carrying value than the [indiscernible] spectrum, so that ultimately resulted in the loss.

That will conclude today's question-and-answer session. I'd like to hand back to Balan Nair for any -- apologies. We do have another question from David Lopez of New Street Research.

Just a couple more on Portico. I think you mentioned a change in management team there. I was wondering if you could give a bit more color. And on your new offer mix and match, I know it's holidays, but what's the initial impression and initial traction, no customer like it or what are the initial thoughts, please?

Sure. There are a number of things we were looking at here at Puerto Rico and the management change is really focused around 3 specific areas. One, our operations and processes. And this is everything from how you sell to how you collect to how you manage the back office. Second, we will really focus on our network and technology, and that was another big management change that we made so that the network and technology improvements that we were looking for get manufactured this year. As you saw, we filed our new spectrum, we improved the fixed network and made significant improvements on our IT systems as well. And then finally, our commercial go-to-market. And the commercial go-to-market strategy that we had over the last year Clearly, as you say, was underwhelming.

And so we brought in some really strong talent in that area. And you can see it manifested really in the last few weeks with our first launch under this new management team. and it's catching. ARPUs have actually increased. MRCs increased over the -- on incoming over the base. And the proposition is catching. We've got more traffic into stores, et cetera. So the culmination of all 3 resulted in better NPS lower churn. And soon in the second half of this year, you'll start seeing the drop in the top line as well. That is kind of like how we've been thinking about it. This is a project that's going to take a lot longer than it took to get to where we're at. And -- but we are very focused on it, and I think we have the right team here in Puerto Rico to execute on it.

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

Thank you, operator, and thank you, everybody, on the call. We are actually quite excited about the future here. The future in Puerto Rico and the future and the rest of our businesses. Puerto Rico, things are turning, green shoots are appearing. And as Chris indicated, the capital structure is just not optimal for the business right now. So we're going to work on that. And this is going to be a really good business for LLA and future LLA shareholders. And then on the remaining business, you can see the numbers. We are very, very excited about it. The cash flow generation as well as the organic growth that we are going to see, it's going to be really clear to all of you to our investors as well where you can now have a clear line of sight to both these businesses. And Chris, John, Ray, my whole management team, we are very excited about the future here and some of the changes we're making. So thank you for your support and look forward to talking to you again. .

Ladies and gentlemen, this concludes Liberty Latin America's Second 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.