New Street Research Communications analysts Chris Hoare and David Lopes will be hosting a call to discuss their recent survey of the Puerto Rican Mobile and Broadband market, and also broader themes affecting both the equity and debt raised in our recent notes HERE and HERE. This follows the recent announcement that the company is raising senior debt in PR.
Given how poor disclosure is this survey drives a much better understanding of market structure, competition, operators' strengths/weaknesses and much more. We will discuss our Key conclusions in more details, and especially our conclusions on Liberty LA. Although there are still some issues, Liberty is probably the natural number 2 in mobile, which suggests a good opportunity to turn the business around medium term. There are many challenges for Liberty Puerto Rico as we wrote HERE, but this survey increases our confidence that a turnaround is achievable, and that our current forecasts may prove conservative, suggesting there is equity value against the market value of debt. The equity remains a top pick for us, and we also remain constructive on the debt at current levels.