Liberty Latin America(US:LILA)2023-02-22 22:09Acquisitions and Market Expansion - The company completed the acquisition of AT&T's operations in Puerto Rico for an enterprise value of $1.95 billion, and the acquisition of Telefónica's operations in Costa Rica for $500 million, as well as América Móvil's operations in Panama for $200 million[30][31]. - The company anticipates integration plans and synergies following its acquisitions, particularly in Puerto Rico, Costa Rica, and Panama[30][31]. - The company completed the acquisition of América Móvil's operations in Panama for an enterprise value of $200 million on a cash- and debt-free basis on July 1, 2022[30]. - The acquisition of Telefónica's operations in Costa Rica was completed for an enterprise value of $500 million on a cash- and debt-free basis on August 9, 2021[30]. - The company acquired AT&T's wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands for an enterprise value of $1.95 billion on a cash- and debt-free basis on October 31, 2020[30]. Customer Base and Subscriber Metrics - As of December 31, 2022, the total number of customer relationships was 8,169,500, with 4,327,000 homes passed and 1,924,700 RGUs[40][41]. - The company reported a total of 4,104,300 mobile subscribers, including 3,507,900 prepaid and 596,400 postpaid subscribers[41]. - The company has 8,169,500 total subscribers, including 5,852,600 residential and 2,316,900 mobile subscribers[40]. - The company reported a significant increase in RGUs, with a unique premises basis counting for video, internet, and telephony services, leading to a total of three RGUs for a single residential customer subscribing to all services[47]. Network and Technology Infrastructure - The company operates an extensive subsea and terrestrial fiber optic cable network connecting approximately 40 markets in the region, enhancing connectivity solutions[35]. - C&W operates approximately 50,000 km of fiber optic cable with an activated capacity of over 10 Tbps, allowing for significant voice and data traffic handling[79]. - The company’s subsea and terrestrial fiber routes utilized less than 20% of their potential design capacity, indicating significant unused capacity[172]. - The company is focused on leveraging its full-service product suite to deliver fixed-mobile convergence offerings across its operating footprint[34]. - The company is committed to managing rapid technological changes and enhancing customer service for new and evolving products and services[32]. Service Offerings and Customer Experience - The company offers a comprehensive set of services across its operating footprint, including mobile, broadband, video, and fixed-line telephony, enhancing customer choice and retention[62]. - The company’s video services are enhanced with next-generation digital television platforms, providing features like DVR and VoD, primarily delivered over FTTH and HFC networks[70]. - The company aims to enhance its video services by developing cloud-based user interfaces and integrating OTT services into its platforms[163]. - The company’s mobile services are available on both postpaid and prepaid bases, with varying monthly fees depending on service bundling[65]. - The company aims to enhance customer retention and minimize churn through bundled service offerings[62]. Market Penetration and Competition - The company is the largest fixed-line provider of high-speed broadband and video services in Puerto Rico, Jamaica, and Trinidad and Tobago[36]. - The penetration rates for broadband internet services varied across regions, with Trinidad and Tobago at 41% and Jamaica at 19% for broadband internet subscriptions[53]. - The company faces competition in fixed-telephony services from various operators, including Digicel and Claro, which has intensified pricing pressures[174]. - The pay television service faces competition from illegal IP-setup boxes, making it difficult to maintain market share[107]. - The company is experiencing a trend of decreasing interconnection rates globally, which is also reflected in its markets[100]. Regulatory and Compliance Challenges - The company faces risks related to competitive environments, currency fluctuations, and regulatory compliance that could impact future performance[31][32]. - Regulatory compliance is crucial for C&W, as it operates under government-issued licenses that are subject to renewal and oversight in various jurisdictions[97]. - C&W Caribbean operates under various regulatory frameworks, with significant focus on price caps and interconnect charges, impacting revenue generation[100]. - The Electronic Communications Bill in ECTEL member states could materially affect C&W Caribbean's operations, with provisions on net neutrality and market dominance[104]. Employee and Corporate Social Responsibility - The company employed approximately 11,000 full-time employees as of December 31, 2022, with 42% being women and 40% in managerial positions[175]. - The total employee attrition rate for 2022 was approximately 11%, with an Employee Net Promoter Score (eNPS) of +32 indicating a passionate and engaged workforce[176]. - The company is committed to fostering a diverse and inclusive workplace, with initiatives focused on gender equity and support for women[180]. - The company contributed over 7,000 volunteer hours through its Mission Week initiative in 2022, involving more than 1,700 employees across 20 countries[187].