Transformation and Growth test

CEO Mauricio Ramos: Our absolute strategic focus is a two-fold reconfiguration of our business. Firstly, we are driving rapid growth in mobile data and expanding the cable footprint, to reconfigure our revenue mix towards these high growth segments as voice and SMS revenues weaken further. Second, we are reconfiguring the cost structure of the business, by enhancing our operational efficiency.

In the third quarter we made further progress in this transformation. In cable we built 180 thousand HFC homes, converting 54 thousand copper homes and adding 126 thousand new homes. Our total footprint is now close to our year-end target of 8.0 million homes passed and penetration of homes passed remain firmly on track.

In mobile we drove smartphone penetration deeper into the customer base, expanded our 4G networks and added 679 thousand 4G users in Latam, delivering the superior experience and higher value services that our customers want. Mobile data customers increased to 33.2% of our total mobile base and data ARPU continued to grow in the quarter.

Market conditions remain very challenging in several mobile markets, particularly in Colombia, our largest market, where macro-economic headwinds and continuing competitive pressures accelerated the decline in voice and SMS revenues. This significantly constrained our growth in the quarter but we are holding our price discipline, driving operational and capex efficiency gains and improving cash generation. Reflecting these changes our adjusted EBITDA margin improved to 36.1%.” (See the Earnings Release)