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Liberty Latin America Reports Fiscal 2020 Results

Continued sequential quarterly financial improvement

Strong RGU additions driven by C&W and Puerto Rico

Integration of AT&T’s Puerto Rico and USVI operations progressing well

Delivered robust cash flow from operations and Adjusted FCF in 2020

DENVER, Colorado–(BUSINESS WIRE)–Liberty Latin America Ltd. (“Liberty Latin America” or “LLA”) (NASDAQ: LILA and LILAK, OTC Link: LILAB) today announced its financial and operating results for the three months (“Q4”) and fiscal year (“2020” or “FY 2020”) ended December 31, 2020.

CEO Balan Nair commented, “Operating and financial results for the group continued to improve in the seasonally strong fourth quarter. Our markets are steadily recovering from the adverse impacts of COVID-19, however the environment remains challenging, and, given the circumstances, we were pleased to deliver robust, positive adjusted free cash flow in 2020.”

“A consistent theme during the year has been growing demand for our high-speed broadband services and this drove subscriber additions across both C&W segments and Puerto Rico during the fourth quarter, where we added over 90,000 organic RGUs in aggregate, nearly 70% more adds than Q4 2019. In Chile, we halved the number of subscriber losses in Q4 compared to Q3, as we stabilized network performance and invested in customer service initiatives, and we expect further improvement through 2021. Mobile product performance continues to improve as mobility levels increase across most of our markets.”

“Our unique combination of subsea, terrestrial fiber and mobile networks position us well to deliver leading connectivity solutions and we continue to invest across our footprint. In 2020, we upgraded or passed approximately 400,000 homes, with over 80% using fiber-to-the-home technology, and we have exciting plans to bring high-speed connectivity to more customers in 2021, aiming to upgrade or pass approximately 600,000 homes.”

“For the year, we reported $3.8 billion in revenue, $92 million of operating income and $1.5 billion in adjusted OIBDA. COVID-19 negatively impacted our financial performance overall, particularly across our mobile and B2B operations, however we produced improving results through the year and sequential revenue, operating income and adjusted OIBDA growth in Q4.”

“We remain active and disciplined in pursuing our inorganic strategy. The businesses we acquired from AT&T finished the year well and we are on-track with our integration plans, including the launch of some exciting new propositions for our customers in 2021. We are continuing to work towards a summer completion of the acquisition of Telefónica’s Costa Rica assets.”

“Overall, despite headwinds due to COVID-19, our operations and connectivity-based product offerings proved resilient in 2020. As we look to 2021, we are focused on delivering top-line growth as markets continue to recover, expanding our high-speed networks through aggressive new build programs, integrating our operations in Puerto Rico to create attractive converged propositions, and generating adjusted free cash flow over 30% higher than in 2020.”

Business Highlights

  • C&W Caribbean & Networks sequential quarterly improvement; robust 2020 results:

    • Record fixed adds in FY 2020 of over 100,000 RGUs, driven by 64,000 broadband adds
    • Q4 sequential revenue growth led by mobile recovery and fixed performance
    • New build / upgrade activity added over 70,000 homes in 2020
  • C&W Panama sequential quarterly recovery; market most negatively impacted by COVID-19:

    • RGU additions of 21,000 and mobile subscriber additions of 26,000 in Q4
    • Q4 double-digit revenue and Adj. OIBDA sequential growth; significant declines YoY
    • Investing in fixed opportunity, added / upgraded ~100,000 homes in 2020
  • VTR/Cabletica Q2/Q3 network & service challenges; Q4 operating performance improved:

    • VTR RGU losses narrowed in Q4; Cabletica added 18,000 RGUs in FY 2020
    • Investments in customer service and FX impacts in Chile drove higher costs
    • Added ~190,000 new build / upgrade homes; plan to double activity in 2021
  • Liberty Puerto Rico record year; integration of AT&T’s operations underway:

    • Broadband demand drove record FY 2020 RGU additions of 121,000
    • Reported and rebased Adj. OIBDA growth in 2020 of 36% and 12%, respectively
    • New build / upgrade activity added over 25,000 homes

LLA 2021 Financial Guidance

  • P&E additions as a percentage of revenue ~18%, including:

    • ~600,000 homes passed added or upgraded
  • ~$200 million of Adjusted FCF

Organizational Update

During Q4 2020, we completed an organizational change with respect to our C&W operations whereby management of the C&W Panama subsidiary of C&W now reports directly to the Chief Operating Officer of Liberty Latin America and no longer reports to the former C&W segment decision maker. As a result, C&W Panama is now a separate operating and reportable segment, however remains part of the C&W Borrowing Group. Accordingly, as of December 31, 2020, our reportable segments are as follows:

  • C&W Caribbean & Networks
  • C&W Panama
  • VTR/Cabletica
  • Liberty Puerto Rico

Additional information, including historic quarterly revenue, adjusted OIBDA and P&E additions under our updated reporting segments, can be found on our website at https://www.lla.com/investors.

Financial and Operating Highlights

Financial Highlights

 

Q4 2020

 

Q4 2019

 

YoY

Growth/(Decline)

 

YoY

Rebase

Decline1

 

FY 2020

 

FY 2019

 

YoY

Decline

 

YoY

Rebase

Decline1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(USD in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,097

 

 

$

975

 

 

12.6

%

 

(1.4

%)

 

$

3,765

 

 

$

3,867

 

 

(2.6

%)

 

(2.7

%)

Adjusted OIBDA2

 

$

428

 

 

$

409

 

 

4.8

%

 

(3.7

%)

 

$

1,485

 

 

$

1,541

 

 

(3.7

%)

 

(2.3

%)

Operating income

 

$

103

 

 

$

167

 

 

N.M.

 

 

 

$

92

 

 

$

354

 

 

N.M.

 

 

Property & equipment additions

 

$

188

 

 

$

229

 

 

(18.0

%)

 

 

 

$

631

 

 

$

722

 

 

(12.5

%)

 

 

As a percentage of revenue

 

17

%

 

24

%

 

 

 

 

 

17

%

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted FCF3

 

$

89

 

 

$

103

 

 

 

 

 

 

$

148

 

 

$

223

 

 

 

 

 

Cash provided by operating activities

 

$

149

 

 

$

328

 

 

 

 

 

 

$

640

 

 

$

918

 

 

 

 

 

Cash used by investing activities

 

$

(2,032)

 

 

$

(78)

 

 

 

 

 

 

$

(2,451)

 

 

$

(635)

 

 

 

 

 

Cash provided (used) by financing activities

 

$

(194)

 

 

$

1,189

 

 

 

 

 

 

$

271

 

 

$

1,540

 

 

 

 

 

Operating Highlights4

 

Q4 2020

 

Q4 2019

 

YoY

Growth/(Decline)

 

YoY FX-

Neutral

Growth/

(Decline)5

 

 

 

 

 

 

 

 

 

Total Customers

 

3,204,600

 

 

3,150,100

 

 

1.7

%

 

 

Organic customer adds

 

18,600

 

 

31,900

 

 

 

 

 

Total RGUs

 

6,186,300

 

 

6,047,200

 

 

2.3

%

 

 

Organic RGU adds

 

57,800

 

 

76,400

 

 

 

 

 

Broadband

 

28,300

 

 

45,200

 

 

 

 

 

Video

 

6,500

 

 

15,200

 

 

 

 

 

Telephony

 

23,000

 

 

16,000

 

 

 

 

 

Mobile subscribers

 

4,451,300

 

 

3,658,500

 

 

21.7

%

 

 

Organic mobile adds

 

47,800

 

 

56,500

 

 

 

 

 

Fixed ARPU

 

$

48.76

 

 

$

48.49

 

 

0.6

%

 

1.6

%

Mobile ARPU

 

$

12.68

 

 

$

13.31

 

 

(4.7

%)

 

(3.3

%)

*N.M. – Not Meaningful.

Revenue Highlights

The following table presents (i) revenue of each of our segments and corporate operations for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:

 

Three months ended

 

Increase/(decrease)

 

Year ended

 

Increase/(decrease)

 

December 31,

 

 

December 31,

 

 

2020

 

2019

 

%

 

Rebased %

 

2020

 

2019

 

%

 

Rebased %

 

in millions, except % amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C&W Carib & Networks

$

428.2

 

 

$

457.5

 

 

(6.4)

 

 

(4.0)

 

 

$

1,706.8

 

 

$

1,812.8

 

 

(5.8)

 

 

(3.2)

 

C&W Panama

130.8

 

 

161.2

 

 

(18.9)

 

 

(18.9)

 

 

500.2

 

 

582.7

 

 

(14.2)

 

 

(14.2)

 

VTR/Cabletica

244.3

 

 

254.4

 

 

(4.0)

 

 

(2.9)

 

 

949.0

 

 

1,073.8

 

 

(11.6)

 

 

(2.0)

 

Liberty Puerto Rico

296.0

 

 

105.4

 

 

180.8

 

 

14.6

 

 

624.1

 

 

412.1

 

 

51.4

 

 

9.9

 

Corporate

2.7

 

 

 

 

N.M.

 

N.M.

 

2.7

 

 

 

 

N.M.

 

N.M.

Intersegment eliminations

(4.8)

 

 

(3.9)

 

 

N.M.

 

N.M.

 

(18.2)

 

 

(14.4)

 

 

N.M.

 

N.M.

Total

$

1,097.2

 

 

$

974.6

 

 

12.6

 

 

(1.4)

 

 

$

3,764.6

 

 

$

3,867.0

 

 

(2.6)

 

 

(2.7)

 

N.M. – Not Meaningful.

  • Our reported revenue for the three months and year ended December 31, 2020 increased by 13% and declined by 3%, respectively.

    • Reported revenue growth in Q4 was driven by the addition of $174 million in revenue from the AT&T Acquired Entities, which were acquired on October 31, 2020, and double-digit growth in our legacy Liberty Puerto Rico operations. These increases were partially offset by (1) negative impacts from COVID-19, particularly in C&W Panama, and (2) a net negative foreign exchange (“FX”) impact of $11 million.
    • Reported revenue decline for FY 2020 was primarily driven by (1) a net negative FX impact of $137 million, primarily related to a 12% appreciation of the U.S. dollar in relation to the Chilean peso, and (2) negative impacts from COVID-19, particularly in C&W Panama, C&W Caribbean & Networks and VTR/Cabletica. These declines were partially offset by revenue from the AT&T Acquired Entities and growth in our legacy Liberty Puerto Rico operations.

Q4 2020 Revenue Growth – Segment Highlights

  • C&W Caribbean & Networks: Revenue declined on a reported and rebased basis by 6% and 4%, respectively. The higher reported decline was primarily driven by adverse currency movements and the November 2019 disposition of our operations in the Seychelles.

    • B2B revenue declined 5% on a reported basis and 3% on a rebased basis, as compared to the prior-year period. The rebased decline was primarily due to lower revenue from fixed and mobile services mostly due to discounts and credits related to reduced or suspended service across our markets as a result of a decline in economic activity following COVID-19 restrictions. This was partly offset by growth in subsea capacity sales as demand for data connectivity grew year-over-year.

      • On a sequential basis, revenue was flat in Q4.
    • Fixed residential revenue was flat on a reported basis and 2% higher on a rebased basis, as compared to the prior-year period. Revenue grew on a rebased basis as we added over 100,000 subscribers across our expanding high-speed footprint in the year, mostly in Jamaica, with customers demanding broadband connectivity to support work and education from home. This was partially offset by a decline in non-subscription revenue due to lower interconnect volumes.

      • Fixed revenue grew by 1% sequentially, on a reported basis.
    • Mobile revenue declined 17% on a reported basis and 14% on a rebased basis, as compared to the prior-year period. Subscription revenue was lower as outbound roaming, recharge activity and subscriber numbers fell following lockdown restrictions related to COVID-19. Inbound roaming revenue declined by $6 million year-over-year, with the largest impact in the Bahamas due to a reduction in tourism as a result of COVID-19.

      • On a sequential basis, reported mobile revenue was 6% higher, driven by continued recovery in prepaid recharges.
  • C&W Panama: Revenue declined by 19% on a reported basis as our operations in Panama continued to be impacted by the most stringent lockdown restrictions across LLA’s markets.

    • B2B revenue was 24% lower, primarily due to reduced non-recurring revenue compared to the prior-year period where there was an increased level of Government-related projects.

      • On a sequential basis, we grew revenue by 19%. This was driven by the closing of several projects for the Government of Panama and certain other large enterprise customers.
    • Fixed residential revenue was 4% lower as compared to the prior-year period. While subscription revenue was stable, non-subscription revenue drove the decline, primarily due to lower payphone usage.

      • Fixed revenue was 10% higher sequentially as demand for broadband drove subscriber growth and ARPU increased as customers moved away from lifeline and other discounted plans.
    • Mobile revenue declined 19%. Subscription revenue was impacted by reduced recharge activity and fewer subscribers year-over-year following COVID-19 lockdowns through 2020. Competitive intensity also increased as mobility restrictions were lifted.

      • On a sequential basis, mobile revenue grew by 1%, driven by higher subscribers as restrictions eased relative to prior quarters.
  • VTR/Cabletica: Revenue declined on a reported and rebased basis by 4% and 3%, respectively. The higher reported year-over-year decline was driven by appreciation of the U.S. dollar in relation to the Chilean peso. Rebased revenue at VTR, our most competitive fixed market, was lower, as compared to the prior-year period, primarily due to net subscriber losses in H2 2020 from network and customer service challenges following a spike in bandwidth demand related to usage patterns during COVID-19 mobility restrictions. Cabletica grew revenue by 6% and 12% on a reported and rebased basis, respectively, driven by subscriber and ARPU growth over the year.
  • Liberty Puerto Rico: Revenue grew by 181% and 15% on a reported and rebased basis, respectively. Reported growth benefited from the inclusion of the AT&T Acquired Entities for two months of the quarter, adding $174 million. Revenue growth in our legacy Puerto Rico business was driven by 121,000 RGU additions and increased ARPU over the last twelve months.

Operating Income

  • Operating income was $103 million and $167 million for the three months ended December 31, 2020 and 2019, respectively, and $92 million and $354 million for the year ended December 31, 2020 and 2019, respectively.

    • We reported lower operating income during Q4 2020, as compared with the corresponding period during 2019, primarily due to the net effect of (i) an increase in depreciation and amortization expense, (ii) an increase in impairment, restructuring and other operating items, net, and (iii) and an increase in Adjusted OIBDA as further discussed below.
    • We reported lower operating income during the year ended December 31, 2020, as compared with the prior year, primarily due to (i) higher goodwill impairments recorded during the second quarter of 2020, (ii) the negative impacts of COVID-19 on our business resulting in lower Adjusted OIBDA in 2020 as further discussed below, and (iii) increases in depreciation, amortization and stock-based compensation expenses.

Adjusted OIBDA Highlights

The following table presents (i) Adjusted OIBDA of each of our reportable segments and our corporate category for the periods indicated and (ii) the percentage change from period-to-period on both a reported and rebased basis:

 

Three months ended

 

Increase (decrease)

 

Year ended

 

Increase (decrease)

 

December 31,

 

 

December 31,

 

 

2020

 

2019

 

%

 

Rebased %

 

2020

 

2019

 

%

 

Rebased %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C&W Carib & Networks

$

182.2

 

 

$

206.8

 

 

(11.9)

 

 

(9.6)

 

 

$

713.2

 

 

$

732.1

 

 

(2.6)

 

 

1.1

 

C&W Panama

51.4

 

 

58.8

 

 

(12.6)

 

 

(12.6)

 

 

177.2

 

 

227.6

 

 

(22.1)

 

 

(22.1)

 

VTR/Cabletica

89.3

 

 

105.9

 

 

(15.7)

 

 

(14.5)

 

 

361.9

 

 

433.6

 

 

(16.5)

 

 

(7.5)

 

Liberty Puerto Rico

115.9

 

 

52.9

 

 

119.1

 

 

21.7

 

 

276.9

 

 

203.2

 

 

36.3

 

 

12.4

 

Corporate

(10.8)

 

 

(15.9)

 

 

32.1

 

 

30.0

 

 

(44.5)

 

 

(55.1)

 

 

19.2

 

 

12.8

 

Total

$

428.0

 

 

$

408.5

 

 

4.8

 

 

(3.7)

 

 

$

1,484.7

 

 

$

1,541.4

 

 

(3.7)

 

 

(2.3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income margin

9.4

%

 

17.1

%

 

 

 

 

 

2.4

%

 

9.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted OIBDA margin

39.0

%

 

41.9

%

 

 

 

 

 

39.4

%

 

39.9

%

 

 

 

 

  • Our reported Adjusted OIBDA for the three months and year ended December 31, 2020 increased by 5% and decreased by 4%, respectively.

    • Reported Adjusted OIBDA increase in Q4 2020 was driven by the addition of $56 million contributed by the AT&T Acquired Entities acquired in October 2020, double-digit growth in our legacy Liberty Puerto Rico operations and lower costs including lower bonus-related expenses in the current year related to certain amounts that will be settled with shares. These increases were partially offset by (1) negative impacts from COVID-19, particularly in VTR/Cabletica and C&W Panama, (2) the net negative impact of $13 million, resulting from non-recurring cost impacts at C&W Caribbean & Networks and (3) a net negative foreign exchange (“FX”) impact of $4 million.
    • Reported Adjusted OIBDA decline in FY 2020 was primarily driven by a net negative FX impact of $52 million, mainly related to the Chilean peso. Organic declines were driven by lower revenue at C&W Panama and VTR/Cabletica, partially offset by an increase at Liberty Puerto Rico, each as discussed above. These declines were partially offset by lower costs, including lower bonus-related expenses in the current year related to certain amounts that will be settled with shares.

Q4 2020 Adjusted OIBDA Growth – Segment Highlights

  • C&W Caribbean and Networks: Adjusted OIBDA declined on a reported and rebased basis by 12% and 10%, respectively. Our rebased performance was driven by the aforementioned rebased revenue decline, partly offset by lower aggregate costs. In Q4 2020 we faced a significant headwind driven by $13 million of negative net non-recurring direct and indirect cost impacts.

    • Direct costs increased primarily due to higher programming costs compared to the prior-year period where we had a higher benefit from certain settlements related to programming agreements. This was partially offset by (i) lower handset sales, driven by lower demand during lockdown restrictions and reduced subsidies, and (ii) lower costs associated with reduced transit revenue.
    • Other operating costs and expenses were lower year-over-year, primarily due to (i) reduced personnel costs due in part to benefits from ongoing restructuring activities, (ii) reduced bad debt expense in the Bahamas due to improved collections in the current period and provisions in the prior-year related to Hurricane Dorian and (iii) a decrease in marketing costs. These reductions were partly offset by a non-recurring benefit in the prior-year period from a decrease in withholding tax related to third-party supplier services.
  • C&W Panama: Adjusted OIBDA declined by 13% on a reported basis. Our performance was driven by the aforementioned revenue decline, partly offset by lower direct and operating costs. Adjusted OIBDA margin at 39.3% improved by 310 basis points sequentially.

    • Reduced direct costs were primarily due to (i) certain non-recurring projects that have been put on hold due to economic uncertainty related to COVID-19, and (ii) lower handset sales due to lockdown restrictions.
    • Other operating costs and expenses were lower year-over-year, primarily due to higher bad debt provisions in the prior-year period.
  • VTR/Cabletica: Adjusted OIBDA declined on a reported and rebased basis by 16% and 15%, respectively. The higher reported year-over-year decline was driven by an appreciation of the U.S. dollar in relation to the Chilean peso. The rebased Adjusted OIBDA decline was driven by the aforementioned revenue impacts, higher direct costs, and higher other operating costs and expenses.

    • Programming drove higher direct costs for the segment in the period. VTR costs increased due to the foreign currency impact of contracts denominated in U.S. dollars and a greater number of live soccer matches in Q4 2020. This was partially offset by lower interconnect costs and equipment sales due to reduced store activity.
    • Other operating costs and expenses increased as VTR continued to make targeted investments in its networks and customer service initiatives following challenges earlier in the year after a spike in bandwidth demand resulting from mobility restrictions associated with COVID-19. These actions have led to lower technical-related call volumes, fewer truck rolls and improving customer retention metrics.
    • The segment’s costs were impacted by a $3 million year-over-year increase due to the impact of U.S. dollar appreciation against the Chilean peso on VTR’s non-functional U.S. dollar costs, primarily in programming.
  • Liberty Puerto Rico: Reported and rebased Adjusted OIBDA growth of 119% and 22%, respectively. Reported growth was driven by the inclusion of the AT&T Acquired Entities, for two months of the quarter, adding $56 million. Rebased growth was driven by the previously mentioned revenue growth, partly offset by (i) annual increases in programming rates, (ii) higher commissions associated with increased sales and (iii) integration expenses related to the AT&T Acquired Entities of $3 million.

Net Earnings (Loss) Attributable to Shareholders

  • Net earnings (loss) attributable to shareholders was ($29 million) and $42 million for the three months ended December 31, 2020 and 2019, respectively, and ($687 million) and ($80 million) for the year ended December 31, 2020 and 2019, respectively.

     

Property and Equipment Additions and Capital Expenditures

The table below highlights the categories of the property and equipment additions (P&E Additions) for the indicated periods and reconciles to cash paid for capital expenditures.

 

Three months ended

 

Year ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

 

in millions, except % amounts

 

 

 

 

 

 

 

 

Customer Premises Equipment

$

71.5

 

 

$

64.7

 

 

$

256.9

 

 

$

285.4

 

New Build & Upgrade

19.0

 

 

49.7

 

 

91.9

 

 

129.1

 

Capacity

19.1

 

 

36.7

 

 

87.7

 

 

105.3

 

Baseline

61.7

 

 

38.7

 

 

133.7

 

 

120.9

 

Product & Enablers

16.7

 

 

39.6

 

 

60.9

 

 

80.8

 

Property and equipment additions

188.0

 

 

229.4

 

 

631.1

 

 

721.5

 

Assets acquired under capital-related vendor financing arrangements

(18.6)

 

 

(37.4)

 

 

(99.1)

 

 

(96.1)

 

Acquisition of intangible assets

7.8

 

 

 

 

7.8

 

 

 

Assets acquired under finance leases

 

 

 

 

 

 

(0.2)

 

Changes in current liabilities related to capital expenditures

(29.7)

 

 

(34.9)

 

 

26.0

 

 

(36.1)

 

Capital expenditures*

$

147.5

 

 

$

157.1

 

 

$

565.8

 

 

$

589.1

 

 

 

 

 

 

 

 

 

Property and equipment additions as % of revenue

17.1

%

 

23.5

%

 

16.8

%

 

18.7

%

 

 

 

 

 

 

 

 

Property and Equipment Additions of our Reportable Segments:

 

 

 

 

 

 

 

C&W Carib & Networks

$

65.0

 

 

$

105.5

 

 

$

246.8

 

 

$

305.8

 

C&W Panama

18.1

 

 

25.1

 

 

70.4

 

 

89.7

 

VTR/Cabletica

52.0

 

 

56.5

 

 

196.4

 

 

222.7

 

Liberty Puerto Rico

45.0

 

 

32.0

 

 

97.3

 

 

88.0

 

Corporate

7.9

 

 

10.3

 

 

20.2

 

 

15.3

 

Property and equipment additions

$

188.0

 

 

$

229.4

 

 

$

631.1

 

 

$

721.5

 

 

 

 

 

 

 

 

 

Property and Equipment Additions as a Percentage of Revenue by Reportable Segment:

 

 

 

 

 

 

 

C&W Carib & Networks

15.2

%

 

23.1

%

 

14.5

%

 

16.9

%

C&W Panama

13.8

%

 

15.6

%

 

14.1

%

 

15.4

%

VTR/Cabletica

21.3

%

 

22.2

%

 

20.7

%

 

20.7

%

Liberty Puerto Rico

15.2

%

 

30.4

%

 

15.6

%

 

21.4

%

 

 

 

 

 

 

 

 

New Build and Homes Upgraded by Reportable Segment:

 

 

 

 

 

 

 

C&W Carib & Networks

17,600

 

24,600

 

75,000

 

94,800

C&W Panama

9,800

 

38,600

 

96,500

 

166,000

VTR/Cabletica

121,000

 

54,300

 

189,900

 

220,800

Liberty Puerto Rico

7,900

 

8,800

 

26,000

 

22,600

Cash paid for capital expenditures does not include amounts that are financed under capital-related vendor financing or finance lease arrangements. Instead, these amounts are reflected as non-cash additions to our property and equipment when the underlying assets are delivered and as repayments of debt when the principal is repaid.

Q4 2020 Property and Equipment Additions and Capital Expenditures – Segment Highlights

  • C&W Caribbean & Networks: The year-over-year decrease in quarterly property and equipment additions, was primarily driven by (i) higher new build activity in the prior-year period following Hurricane Dorian in the Bahamas, (ii) phasing of capacity investments which were accelerated earlier in FY 2020 to address demands related to COVID-19, and (iii) our initiatives to reduce expenditure.
  • C&W Panama: Property and equipment additions were lower year-over-year due to (i) reduced CPE expenditures as gross adds declined, unit pricing improved and refurbishment levels increased, (ii) lower cost per home for new build expansion and slower build rate due to COVID-19, and (iii) our initiatives to reduce expenditure.
  • VTR/Cabletica: Property and equipment additions declined year-over-year. This decrease was driven by reduced spend at VTR where lower product development and new build unit costs in the quarter was partly offset by increased CPE spend related to the rollout of services on our fiber network.

Contacts

Investor Relations

Kunal Patel

ir@lla.com

Corporate Communications

Claudia Restrepo

llacommunications@lla.com

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