Liberty Latin America Ltd. Q3 FY2023 Earnings Call

Good morning, and welcome to Liberty Latin America's Third Quarter 2023 Investor Call. At this time, all participants are in listen-only mode. Today's formal presentation materials can be found under the Investors 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 and will be available under the Investors section of our website. Today's remarks may include forward-looking statements, including the company's expectations with respect to its outlook, our recently announced pending transactions 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 the quarterly report on Form 10-Q most recently filed with the SEC, along with the associated press release. Liberty Latin America disclaims any obligation to update any forward-looking statements or information to reflect any change in its expectations or in the conditions on which any such statement or information is based. In addition, on this call, we will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the Investors section of our website. I would now like to turn the call over to our CEO, Mr. Balan Nair.

Thank you, Matt, and welcome, everyone, to Liberty Latin America's third quarter results presentation. I'll begin with our group highlights and an overview of our operating results by reporting segment. 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 am joined by my executive team from across the region, 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 four in our highlights for the third quarter. We had another strong operating quarter with 44,000 additions across Internet and postpaid mobile subscribers. Over the past year, we have added close to 225,000 subscribers across these two products, which shows the strength of our commercial office. We are also continuing to invest in our networks with over 100,000 homes passed, all upgraded in the quarter and 285,000 year-to-date, driven by activity in Cable & Wireless Caribbean and Panama. We reported adjusted OIBDA of $428 million in the quarter, representing a 10% year-over-year increase. This is our best rebased growth performance in two years driven by double-digit growth in all of our segments apart from Puerto Rico, which we will cover in later slides. I want to emphasize that this significant growth primarily reflects structural efficiency improvements across our operations and not one-offs. We continue to allocate capital for our buyback program with $112 million between stock and convertible repurchases in the quarter. Through the end of Q3, we have bought back $111 million of our stock and reduced the outstanding amount of our convertible bond due next year by 45% to $220 million. Finally, we are making progress with our key business integrations. In Panama, we are already seeing the benefits of synergies, driving the Q3 adjusted OIBDA growth rate of 25%. And in Puerto Rico, over 225,000 customers have now been migrated to our platform. We anticipate the process will now run into next year. However, completing a multiyear project of this scale within a few months of our initial target is still a very good outcome. I'm also excited to highlight the two accretive transactions we announced this week. Firstly, the acquisition of spectrum and subscribers in Puerto Rico and the U.S. Virgin Islands and secondly, the sale of mobile tower infrastructure across a number of our markets. I'll cover both deals at the end of my section. Turning to slide five. I'll begin our operating review with C&W Caribbean. The recovery in tourism we initially noticed in the first-half of the year continued in Q3, despite it being the low season, full stream performance in the segment. Starting on the left of the slide with our subscriber adds, we delivered another positive quarter with 20,000 ads across Internet and mobile postpaid with more than 50% coming from Jamaica. Our FMC strategy continues to drive performance in these two product lines growing volume and improving our churn levels. Moving to the center of the slide and our revenue by product. The pie chart depicts the well-diversified nature of C&W Caribbean's revenue with B2B and consumer fixed the largest elements followed by consumer mobile. Year-over-year rebased growth of 1% was driven by internet and mobile postpaid subscriber growth where we have achieved over 100,000 net adds in the last 12-months. Adjusting for the discontinuation of the transit business that we announced earlier this year, this rebased growth rate would have been nearly 300 basis points higher. Moving to slide six in our C&W Panama segment. Starting on the left of the slide. Fixed momentum continued with almost 60,000 RGU net adds in the last 12-months across our service bundles. We have a strong network with 93% of our home staff either via FTTH or HFC and we are targeting 100% through the removal of all residual copper next year. In mobile, we reported our first quarter of postpaid losses in over three years. This was driven by a conscious decision to reduce our push into lower-value segments of the market where you can see the increased reported ARPU in Q3, as well as some impact from integration activities. Moving to the center of the slide and our revenue stream, which together drove 10% growth in the quarter. In Panama, our largest product by revenue of mobile and B2B fix is the smallest product area, but one of the fastest growing. Positive trends from the first-half of the year continued with both fixed and B2B recording strong revenue growth of 7% and 26% year-over-year, respectively. Growth in fixed revenue was supported by higher volume from our successful commercial strategy, focused on increasing penetration in our growing fiber-to-the-home network and across triple play plants. In mobile, we saw reduced churn in both prepaid and postpaid. Finally, to our integration update in the lower right of the slide. We have made significant progress with the integration of Claro Panama's operation. Our network consolidation is close to complete with 99% of overlapping sites now. This is in addition to the commercial progress, including optimization of sales channels, people, advertising and sponsorships. These actions have driven significant synergies supporting our financial growth despite integration costs peaking in the quarter. Next to slide seven and Liberty Puerto Rico. Starting on the left of the slide, we delivered another very robust quarter in net additions. Continuous investments in our network and commercial activities have supported a 6% subscriber growth over the past year. Turning to mobile. We maintained a relatively stable postpaid base with 7,000 net losses across a total of 900,000 subscribers. We anticipate being able to grow share from our number two position in the market once migration activities have been completed. Our announced acquisition of Spectrum will further support these growth plans. Moving to the center of the slide and our highlights for the segment. We recorded 11% year-over-year fixed revenue growth in the quarter driven by gains across all fixed services. In mobile, we continued with our subsidy optimization strategy, targeting investments toward high-value customers in connection with the new iPhone 15 launch having previously reduced subsidy levels in the first-half of the year. Our sales volume were more than 50% higher than the iPhone 14 launch in the previous year. Finally, to our integration update. We have been progressing with our migration activities and have now moved approximately 225,000 customers to our new IT platform, which is fully operational and being used to sell prepaid and postpaid products to our customers. The migration itself has slowed down due to many factors, such as data quality, compatibility issues in a number of Android devices, the iPhone 15 launch complexity, and sudden software issues in our IT stack. These have been addressed or we have a solution that will be delivered in the near-term. We continue to monitor and manage these technologies as we scale the platform. However, there will be an impact to our costs under the TSA, third-party contractors, and doubling of software license costs. In addition, we have invested in more equipment replacement, additional hiring to handle migrations, and additional staff in our call centers. These decisions result in one-time expenditures to ensure the best possible customer experience and to minimize churn from migration. We now anticipate integration activities will conclude by April 2024. As I mentioned earlier, we do not regard this as a material shift in the context of such a large and important project. Turning to slide eight and Liberty Costa Rica. Starting on the left of the slide. We returned to Internet subscriber growth in Q3, showing encouraging stabilization in our most competitive fixed market. In mobile, we reported our strongest quarter of the year in terms of net adds with postpaid subscribers increasing by 27,000. FMC has been steadily growing, and we are now above 20% penetration in our fixed base. Moving to the center of the slide. Consumer mobile remains our largest product with close to 60% share of revenue. This is followed by our consumer fixed business, representing just over 30%, and then a small but fast-growing B2B operation. Finally, our integration activities are now substantially complete with some smaller TSA supported activities anticipated to be migrated early next year. Moving to slide nine and our Liberty Networks segment. Running through the revenue performance in the middle of the slide. Wholesale accounting for 70% of the segment's revenue delivered 8% rebased growth in Q3, driven by a significant customer recognized on a cash basis and higher affiliate capacity usage. Typically, the wholesale operations deliver steady low single-digit top line growth, mostly USD-denominated revenue, and have lower CapEx requirements, which underpins high cash flow conversion. Our unique multi-ring infrastructure, as shown on the left of the slide, remains a differentiating factor in relation to the other networks in the region and, importantly, brings through liability. Enterprise, representing the remaining 30% of revenue, posted a 14% increase, driven by higher demand for our connectivity solutions and IT as a service product. This is a high-growth area for the group with significant opportunities across our markets, particularly in Latin America, where we have a low market share, and there's low penetration of services generally. Moving to the right of the slide and some highlights for this segment. Following our successful branding to Liberty Networks in Q2, we were recently awarded the best marketing team accolade at the Global Carrier Awards. We also continue to deploy innovative solutions to support the resiliency and redundancy of our network. For example, we successfully deployed data Google Moonshot technology. Finally, to slide 10, a summary of the transactions we have announced in the past weeks. Firstly, the acquisition of Spectrum and subscribers from DISH. Our commitment to Puerto Rico and the U.S. Virgin Islands is further reflected in this deal to acquire a combination of 100 megahertz of spectrum and approximately 120,000 Boost subscribers. Upon completion, this transaction will provide us with valuable spectrum that will allow us to add more capacity, increase speed, and further strengthen our leading 5G mobile network, as well as increase our scale in the prepaid market. Important to note that the purchase consideration will be spread across four annual payments from the date of closing, which we expect to take place next year. We expect funding for these payments to come from local sources. Secondly, we are pleased to have announced an agreement with a high-quality partner in Phoenix Towers that crystallizes the value of approximately 1,300 of our mobile tower infrastructure assets at a very attractive cash flow multiple. We will enter into long-term lease agreements with PTI upon close, which will enable us to continue delivering leading mobile services to our customers and support network expansion, including future 5G deployment plans across the Caribbean and Latin America. We anticipate using the transaction proceeds to reduce third-party debt and buy back shares. Overall, we feel very positive as we approach the end of the year with many of our businesses delivering good top line and adjusted OIBDA growth. We remain focused on finalizing the integrations in Panama and Puerto Rico, which will further add to our momentum and contribute to cash flow growth in the coming years. As the transactions I have just talked through, we, as a management team, feel that the business has lots of opportunities for growth ahead. 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.

Thanks, Balan. I'll now take you through our financial performance in greater detail, starting on slide 12. As a reminder, we deconsolidated our Chilean business at the start of Q4 2022, so our reported results in 2023 do not include the operating results of VTR. Revenue was 1% higher on a rebased basis at $1.1 billion in the third quarter. We saw positive commercial traction across many of our markets with performance driven by double-digit growth in C&W Panama and Liberty Networks. As mentioned in prior quarters, C&W Caribbean reported revenue was impacted by a business decision to discontinue our legacy noncore B2B voice transit arrangement in Q1 2023, which was accounting for about $10 million of quarterly revenue and will have a similar impact in Q4. Adjusting for this, Q3 group revenue would have grown by 2% on a rebased basis year-over-year. Turning to adjusted OIBDA, we reported rebased growth of 10% to $428 million, our best quarterly result in two years and reflecting structural efficiency improvements. Year-to-date, rebased growth was 5% for the group, and with further growth anticipated in Q4, we are well positioned to deliver our target of mid- to high single-digit rebased adjusted OIBDA growth for LLA this year. In the third column, our P&E additions were $187 million in Q3 or 17% of revenue. Nearly 60% of our quarterly spend was directed to CPE, new build, upgrade, and capacity. We continue to step up our new build and upgrade activity sequentially, reaching over 100,000 homes in the quarter. We are on track to deliver our guidance target of 16% of revenue for 2023. In the last chart, we delivered $33 million of adjusted FCF in the quarter. As in previous years, we anticipate that our adjusted free cash flow generation for the year will be substantially weighted to Q4 reflecting our seasonally strong financial performance and favorable working capital swings. Our adjusted FCF target remains at approximately $300 million before distribution to non-controlling interests. Several factors have materialized recently which add variability to the target this year, including the delay in timing of the Puerto Rico migration and dependency on large payments, particularly in Panama, due from B2G and B2B customers that could fall into next year.

Sure. Thanks, Michael. We had anticipated a $70 million synergy for Puerto Rico, and we are still on track for that, although it may be slightly delayed by a couple of quarters due to migration delays. We recognize there are impacts on our cash flow. The delay has caused us to not only continue paying AT&T for services but also to maintain our own platforms, including both the network and IT systems, for which we are incurring license costs. As a result, we are experiencing doubled expenses during this timeframe. Additionally, in evaluating the migration over the past six months, we've concluded that many handsets, particularly Android devices that rely on AT&T for software updates, are not feasible to upgrade. When Samsung releases come out, they follow a different schedule than AT&T's releases. Therefore, we have decided that proceeding with the migration could lead to a poor customer experience, so we are proactively replacing handsets during the migration process, leading to unexpected costs. You'll see several impacts late this year, extending into the first and second quarters. However, looking ahead to next year, the focus will shift from handsets to the increased costs associated with the TSA and our internal licensing fees. After April, the TSA will not fully conclude as we will still maintain a contract with AT&T for a couple more months for access to DS systems, leading to reduced costs but not complete elimination. This arrangement is necessary for customer inquiries regarding past billing and records, which we need access to. By June, we expect to be completely off the TSA. On the operations side, starting in January, we will exclusively sell all our devices and postpaid plans using our own system, which will significantly benefit us. This shift allows us to undertake various FMC initiatives, enhances our agility in promotions, and allows us to make offering changes without needing to coordinate with AT&T. This increased flexibility will also lead to cost reductions in the following months. I hope that clarifies everything.

Thank you. It was. And I'm looking back at slide 13, where you lay out the financial performance in the quarter by segment. And I'm looking at the stronger rebased OIBDA growth in C&W in Panama, in Liberty Networks, and Costa Rica. Can you just give us a sense of how much of those OIBDA levels are considered run rate versus maybe any impact that might be a seasonal point of strength or a transitory source of strength to the extent that there were some like one-time benefits or some things that maybe costs that you avoided that need to come back at some point. So just trying to think about the durability of these new adjusted OIBDA levels that you're hitting in these other parts of your business?

Sure. So the OIBDA that we're hitting is actually our new run rate. So we've already taken a lot of the synergies in Panama and Costa Rica, and when you look at the OIBDA in Cable and Wireless, it also included not necessarily synergies, but some serious cost reductions that are permanent. So what would that be? One would be programming. We restructured a lot of our content costs in Cable & Wireless that give us some really good upside on the OIBDA line. In addition to that, the one other area that gave us incremental OIBDA as well is the increment in roaming. Our roaming has returned not to the levels of pre-COVID, but people are starting to travel again. Cruise ships are out there. And so we're getting that upside as well. Now you can say that roaming may go up and down over the years, but we think we've kind of hit that steady state there. It's never going to come back to pre-COVID levels, but it's certainly an expansion over last year. So between those two, you saw quite a bit of an OIBDA expansion there in addition to revenue. As Chris pointed out, the revenue growth is actually larger than what is shown here on a year-to-year basis because of some of the transit traffic that had zero margins in it. So that was helpful. And as a matter of fact, when I look at the overall LLA, there are a couple of things here that actually we showed a 1% increase at the LLA level. It should be close to 3%, because there's about a couple of one-offs from last year, like FCC funding that we got last year that don't exist this year. So that went away, and that was quite a hit to us. So I think if you normalize for some of the things across LLA as well, we actually grew more than 1%. And that's why I feel really good about the OIBDA contribution margin has expanded, and so you would normally look at it, operating-wise, about a 3% growth and the top line of 10% growth on the bottom line, which is kind of a healthy way to run an operation.

Hello, good morning and thanks for taking our questions. Two questions from our side. The first one is also on the Puerto Rico integration. If you could give us a bit more color on how the decision was taken and why now the decision to extend the time frame for Puerto Rico. In particular, if anything came up that you did not expect during the course of the integration and on how comfortable you are with completing the integration under the new time frame? And our second question would be also on Puerto Rico, if you could give us an update on the competitive scenario, specifically for mobile and on how you have been navigating it in terms of offerings and promotions since I recall, this was a major topic in previous conference calls and was still a bit of a difficult competitive environment.

Sure. Thanks for those questions. So the decision to expand the migration was made in the September timeframe—August, September timeframe. And at that point, we were still hoping that we could close some of it. And let me give you a little bit of color on this migration. The migration is made up of multiple migrations. So we have windows between us and AT&T where each window—and the window is a day where we can actually push subscribers through. So it's really kind of like if you think of a regular basis, a port out from AT&T and a port into ourselves. So that's kind of like the migration. And we were anticipating to do about 10,000 a day in that migration in each window. And over the period, we've discovered two things. One, there was a whole bunch of folks that we would want to migrate. We decided not to migrate because of the handset issues. These guys, some were not on the right releases. And even with the iPhones, not just the Android, we have a feature of voice over Wi-Fi that requires a software release of like 16.5 and above. A lot of iPhones, a lot of users have not migrated to that software release. So as we learn all of these things, we said, okay, do we optimize for our customer, just run everything through, or do we optimize for the experience of our customers? We said, let's optimize the experience of the customers, not only because we're such good guys or anything but if it's a terrible experience, your churn is going to really mess you up. So we optimize for, let's make this as smooth as possible. And we went back to AT&T and said we needed more windows. The problem—the second problem is that we were getting to Thanksgiving and the Christmas holidays, and then, of course, there was the iPhone 15 launch in September, which AT&T shut down all the windows. Rightfully so, we didn't argue with them. We just said, okay, now we've lost 14 windows because of the iPhone 15. There we lost a whole bunch of windows—almost 14 windows during the Thanksgiving period. We're going to lose like almost 18 windows during Christmas. And then when you do the math, you go, okay, let's methodically do this; we'll need to get into January and February. We think we're going to beat the April timeline, but we want to make sure that we have enough runway to get to the end of April and get this thing done methodically, but if you do the backward math in January, February, March, and April and the number of windows we have, we're going to like easily close this. Our engineering teams, our operating teams, and a whole bunch of people are just working really hard on all facets of this. Setting up a new network, turning up a whole new IT stack. It's quite unusual in the migration. Usually, you're migrating customers to your own billing system because you buy a company, and it comes with a mobile core and everything. In this case, you didn't get that from AT&T. AT&T still supported us on the network. We have the radios. We own the radios; we own the towers, but we didn't have the core. And then we had to stand up a whole new mobile stack because we didn't have a mobile network in Puerto Rico. The other complexity is that we couldn't use any of our other IT stacks or core from the rest of our network because Puerto Rico is part of the United States, and we have a whole bunch of U.S. regulations and U.S. privacy and security laws that we have to comply with that puts us in kind of a situation where our core has to be Puerto Rico and our redundancy in Miami, as an example. So we could not use any of our other elements. This thing is really complex. But I tell you, I'm really proud of the team. I've been on many—I used to be a CTO, and you can talk to any of the CTOs in North America, Europe, or Asia when you run one of these IT migration projects. Usually, either you never get to where you—you're missing it by a year, 1.5 years, or you abandon the project altogether. In this case, we're really going to come within months. And I tell the team, this is actually quite magical.

Thank you. The first question is regarding your guidance. You mentioned that there is now a little bit more variability on that target. Can you please maybe quantify what is the magnitude of potential variability and the direction of it over lever? And then second, regarding Panama, several moving parts in the sense that you have a very positive uplift for B2B. Is that sustainable? And then there is process in the country, plus the freight of the terror digital on that country.

Sure. I'll answer these questions, and then I'm going to ask Chris to jump in as well when I'm done. On the guidance, as Chris pointed out, there are two things. One, this whole migration thing. We may end up spending more on handsets. We're going to be very flexible on it. Right now, the reason we're not changing guidance is we think we're going to hit it. But there are a few things, and we thought we are at like just keep everybody heads up. One, the equipment, and two, as Chris highlighted, in Panama, we have a very large B2B customer that a lot of the bills get paid in November and December. We see light at the end of the tunnel, but we thought maybe we should highlight that. If that doesn't come in, it will come in in January. It's just a timing issue. And Chris will give you more color on that. In Panama, the business itself, the B2B business, that's where a lot of the growth is, a B2B business; there's about two-thirds monthly recurring and one-third non-recurring revenue. A lot of the non-recurring revenue comes in, in the third and fourth quarters. A lot of government contracts, large enterprise contracts, and we closed those deals usually in the second-half of the year and then we write it the following year. And every year, it's kind of like the same cadence that way. And—we feel fairly confident. It's about a $300 million business to B2B. I don't know if we break that segment; I'll tell you it's about a $300 million B2B business. It's about $100 million of NRR and our sales team there led by actually one of our best salespeople. And that team delivers every year. So I'm not that worried about the variability of that business on the B2B segment. On the protest, it is what it is in Panama. It has impacted us a bit. Our shops have been—one of our key shops are because a number of other shops to foot traffic have dropped quite a bit. And as you know, in these regions, a lot of our sales happen at the retail level, and it happens at the door-to-door level as well. A lot of these protests have kind of ramped a little bit. But I did check on our sales. We go through our sales numbers every week. And sales—while it slowed down, our backlog installs have been increasing. So as soon as this protest is done, the installs get out there and we should recover. So it's a temporary blip with the protest. I don't expect much hit to us financially. With that, I'll pass to Chris.

Yes. Maybe just a little bit of color as the potential headwind we would see, in particular around the delay in the migration. There are kind of two key points. One is the inventory since we have both our new stack, which is getting up and running, and then we have the AT&T platform. We basically have double handset inventory than one would normally carry going into the holiday season. And then second, we have obviously monthly TSA costs and additional costs related to the migration. I mean, I would say just conceptually, the headwind around that would be greater than about $30 million on the free cash flow side. But we are working hard, driving our businesses across the group to continue to produce and strive to meet our target that we had given at the start of the year.

Hi, Balan and Chris. Thanks for the call. I have a couple of questions. First, I’d like to know more about the mobile competition in Puerto Rico if you could provide an update on that. Also, regarding free cash flow for next year, Balan, you mentioned that the $70 million in synergies for Puerto Rico remains intact. Should we expect those synergies to increase along with the reduction of some current additional costs? So, are we looking at an uplift of around $70 million plus a bit more? Additionally, how much of the synergies are now being realized in Panama, and what further contributions can we expect from that market? I'm trying to gauge the potential cash flow uplift on a run rate basis once the integration is fully completed.

Sure. I'll come back to the Puerto Rico mobile. But on the free cash flow, I don't anticipate us changing our synergy guidance on Costa Rica. It would be about $70 million annualized. Clearly, next year because of the bleed in cost will probably not be the full $70 million next year. In Panama, the incremental synergies are not that significant anymore going forward. So you'll see the synergies that we've captured a lot this year. Next year, there's an incremental—I'm going to try the number like $5 million or so, probably that won't exceed $10 million next year, over and above what we've captured this year. That's the number in the top of my head from my last reviews. On Puerto Rico Mobile?

Thank you. Speaking of good ones, the per megahertz pop price on the second transaction seems really favorable, particularly for that quality spectrum. I understand it might be a discount compared to the U.S., but if you exclude the 120,000 mobile customers, it appears to be a great deal for you. Could you provide more details on the pricing and the input for Puerto Rico in comparison to the States?

Puerto Rico typically trades at a slight discount compared to the mainland due to a couple of reasons. First, the potential buyers are limited, and second, it operates as a somewhat captive market. As a result, it tends to have a slightly lower market value, as building additional towers there is easier compared to solely depending on spectrum. That said, our team has done an excellent job, and I believe this is beneficial for both us and DISH. It’s advantageous for them since they won't have to invest in infrastructure in Puerto Rico; we will handle the build-out responsibilities there. This saves them considerable capital expenditure, allowing them to focus on the mainland. Our General Counsel recently presented at the SEC and the Justice Department, effectively outlining the deal's rationale alongside DISH executives, and we are optimistic about it. This arrangement is advantageous for DISH and certainly beneficial for us as well. It demonstrates our confidence in Puerto Rico and underlines our commitment to competing directly with T-Mobile, a much larger company, in the mobile market. We are fully committed to Puerto Rico. Thank you, operator. You can clearly see, I'm very happy with our earnings results for this quarter. And I think the growth that you see here, it's really good. I think fourth quarter is looking pretty good as well. And then next year, as we go to next year, we will go in with a base of OIBDA and revenue that I think we can build nicely on as well. The business is in a good place. I know there will be a lot of concerns about Puerto Rico, and it's a phase. We'll get to the migrations. The network has stood up. It's running really well. The IT stack has stood up. We need to finish the migration. We get off the cost in a year; nobody will remember the migration and all that. And this is fundamentally a really strong, good business. The fixed network is growing really well. The prepaid business is going to grow. The postpaid business, I think our plans are really good. The spectrum acquisition we just made. The prepaid business we just bought, I think we're going to be in a good place. So between that in a good place, our C&W business is operating really well. Panama, onto big and better things. Costa Rica is doing very well. Liberty Networks is doing really well. I think we've got a good franchise here, and I'm really excited about it. So thank you so much for all your support, and have a great day.