Chris Hoare

Chris Hoare questioned the top-line trajectory in Puerto Rico, seeking color on the shape of postpaid net adds in Q4 2025 and expectations for future improvements. He also asked for more detail on the B2B weakness in Puerto Rico, its trajectory, and any further information on the company's focus on shareholder returns and potential timing for announcements.

Answer

CEO Balan Nair attributed Puerto Rico's Q4 2025 postpaid net add improvements to leadership, process fixes, system stabilization, value propositions, and a significant turnaround in NPS scores, assisted by the migration of Boost subscribers. He noted strong January 2026 performance and expects continued progress through 2026. For B2B, Mr. Nair acknowledged 2025 challenges, citing team changes and a new leader with a positive budget for 2026, indicating a turnaround will take multiple quarters. Regarding shareholder returns, Mr. Nair expressed confidence in the business and strong Q4 cash flow, suggesting potential announcements later in the year in conjunction with the board.

Chris Hoare inquired about the top-line trajectory in Puerto Rico, specifically the shape of postpaid net adds in Q4 and expectations for future improvements, as well as the weakness and trajectory of B2B revenues. He also asked for more color on the company's focus on equity value unlock and shareholder returns.

Answer

CEO Balan Nair attributed Puerto Rico's Q4 2025 postpaid net adds to business improvements, system stabilization, and the migration of Boost prepaid subscribers to postpaid. He noted continued progress in January 2026 and expects a stronger position by the end of 2026. For B2B, Mr. Nair acknowledged 2025 challenges but highlighted changes in leadership and a positive budget for 2026, anticipating a turnaround over several quarters. Regarding shareholder returns, Mr. Nair expressed confidence in the business and cash flow generation, particularly in the second half of the year, and indicated that decisions to reward shareholders would likely be announced later in the year.

Chris Hoare asked for clarification on the plan to spin out Puerto Rico, specifically which assets would be utilized for the liability management exercise. He also questioned if the remaining group would require further deleveraging post-separation before considering shareholder returns.

Answer

CEO Balan Nair declined to comment on the specifics of the liability management plan but affirmed the company has strong assets that provide financial flexibility. Regarding leverage, Nair stated the remaining company would organically delever through EBITDA growth and strong cash flow generation, creating optionality for capital returns like dividends or buybacks. CFO Chris Noyes added that the remaining debt structure is long-term, enhancing this flexibility.

Chris Hoare followed up on CapEx in Puerto Rico, questioning if the recent lower level is sustainable, and asked about the potential to use assets within Puerto Rico to strengthen its balance sheet ahead of the upcoming debt refinancing.

Answer

CEO Balan Nair explained that while reported segment CapEx for Puerto Rico seems low, group-level CapEx for shared platforms brings the region's total spend to a mid-to-high 15% range, indicating they are not underspending. CFO Christopher Noyes added that the primary focus ahead of the mid-to-late 2026 refinancing is to improve the operation's financial results, which will in turn crystallize and improve the value of the assets.

Chris Hoare from New Street Research sought clarification on the drivers of negative EBITDA growth in Kazakhstan and questioned if the full-year EBITDA guidance was conservative. He also asked about the timing and nature of the upcoming shareholder remuneration strategy.

Answer

Group CEO Kaan Terzioğlu and CFO Burak Ozer explained the Kazakhstan EBITDA trend was due to the delayed renewal of a tax rebate, which will be retroactively applied in Q3, adding ~$16M. Kaan Terzioğlu described the guidance as a 'prudent stance' and stated that an update on shareholder returns is planned for the Q3 announcement, balancing growth with remuneration.

Chris Hoare from New Street Research asked about the cause of negative EBITDA growth in Kazakhstan, the potential conservatism of the full-year EBITDA guidance, and the timing and nature of the upcoming shareholder remuneration strategy.

Answer

CEO Kaan Terzioğlu and CFO Burak Ozer clarified the Kazakhstan EBITDA decline was temporary, caused by a delayed tax rebate that has since been retroactively approved, which will create a positive ~$16 million impact in Q3. Terzioğlu described the full-year guidance as a 'prudent stance.' He confirmed that an update on shareholder remuneration is planned for Q3, which will balance returns with reinvestment in growth.

Chris Hoare from New Street Research asked for clarification on the negative EBITDA growth in Kazakhstan, whether the full-year EBITDA guidance was conservative, and for an update on the company's shareholder remuneration strategy following the completion of the buyback program.

Answer

Group CEO Kaan Terzioğlu and Group CFO Burak Ozer explained the Kazakhstan EBITDA decline was due to a lapsed tax rebate that has since been retroactively reinstated, with a ~$16 million positive impact expected in Q3. Regarding guidance, Terzioğlu stated they are taking a 'prudent stance.' He also confirmed that an update on shareholder remuneration will be provided in Q3, balancing growth investments with shareholder returns.