LIBERTY LATIN AMERICA’S Q2 REPORTS REVEAL REVENUE LOSSES

Liberty Latin America announced its financial and operating report for Q2. and six months' worth of “YTD” or H1 2020, ending 30th June 2020. “As anticipated, following a strong start to the year, the second quarter brought with it a number of COVID-19 related challenges for many of our operations, resulting in declining year-over-year topline performance," CEO Balan Nair said. "The good news is that we planned extensively and were able to offset some of the impacts through early cost management actions."

Liberty Latin America's operating income suffered a loss of USD 206 million and USD 144 million during the quarter's the three months, which ended 30th June 2020, and 2019. It also saw a USD 98 million loss, and an additional USD 257 million for the six months to end. The company's net loss, attributable to shareholders, costs USD 393 million and USD 116 million during the three months, which ended on 30th June and 2019. USD 574 million and USD 158 million for the six months ended 30th June 2020, and 2019. The officially reported revenue for a duration of three and six months ended June 30, 2020, decreased by 14% and 8%. The company's operating income loss was USD 206 million and USD144 million for the three months ended June 30, 2020, and 2019 and USD98 million) and USD 257 million for the six months ended June 30, 2020, and 2019.

The reported revenue decline in Q2 2020 was largely driven by negative impacts from the Covid-19 pandemic, particularly in C&W, a net negative foreign exchange (“FX”), which suffered  impact of USD 47 million, primarily related to a 20% appreciation of the U.S. dollar in comparison with the Chilean peso, and a USD14 million reduction.

C&W: reported its revenue declines of 15% and 12%. The higher reported decline was driven by the inclusion of our now divested C&W Seychelles business in the prior-year period and adverse currency movements. B2B revenue declined 15% on a reported basis and 12% on a rebased basis. C&W Monthly revenue for Q2 experienced performance building from April low Q2 fixed RGU net losses driven by Panama restrictions, strong additions in Jamaica.

Liberty Latin America recently acquired Telefónica's Costa Rica business, following its cable operation success in the region, allowing investment increases. As part of the acquisition, it also announced a USD 350 million rights offering today, with all the members of our Board and a leadership team had expressed their intention to subscribe.

VTR/Cabletica reported improvements in the commercial performance, with RGU growth driven by 19,000 broadband additions in Chile. Higher Q2 costs following capacity demand spike and FX impact on USD based costs. The two businesses combined would create a leading full-service communications player with approximately $400 million of revenue 1. This transaction comes at an attractive valuation, consistent with our disciplined approach towards M&A," Nair said.