LTRPA - Earnings call transcript Q2 2020 | Liberty TripAdvisor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the GCI Liberty 2020 Q2 Earnings call.

During the presentation all participants will be in a listen-only mode. After afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded August 10. to Officer conference of and like Chun, to Investor now Portfolio Chief Senior would turn over the Courtnee Relations. I Vice President ahead. go Please

Courtnee Chun

Thank you.

website. in definitions circumstances including reflect Liberty conditions any and reconciliations, earnings and adjusted financial margins. to required OIBDA regarding including or herein comparable issued today, Before or found the the of certain release TripAdvisor's including Liberty Liberty, Forms SEC. as press expressly on recent our Private and GAAP undertaking contained today's that Litigation XX-K any or Reform based. non-GAAP any a two call, or we with remind speak of filed forward-looking like measures with with Liberty's On to any change regard number expectations or Liberty will obligation forward-looking XXXX. risks and only updates along statement within differ These Securities Liberty, we preliminary available or adjusted discuss the note most revisions of this those XX-Q Actual statements materially, can and call of Liberty on TripAdvisor statement GCI such schedules includes to events metrics date the statements one of uncertainties, any the to Information call could be thereto OIBDA change any mentioned disseminate GCI certain and everyone and meaning Liberty the disclaim is Act GCI Broadband begin, we'd in results for forward-looking Broadband and events is which this in GCI in which to due

Maffei. President over like turn to CEO, Greg Now, call to I'd Liberty the and

Greg Maffei

only Brian call, you, will Officer, GCI Courtnee, will GCI GCI and Broadband Liberty, Pounds. the Last have: Chief related we the stock-to-stock announced and Today to to a Liberty on available Principal and in Accounting Financial GCI's And TripAdvisor. we answer all. during to not Wendling; Thursday, Liberty CFO, Q&A, Officer and Liberty combine Thank but Broadband be Liberty's, we'll questions merger. also you speaking Pete Liberty morning good that

We will the to first delays. subject COVID-XX-related potential of combination half XXXX expect close in this

you information I at of replay call. to on the on more would the If encourage to our like you combination, we and do the slides listen look website posted the

revenue will to to and the the community. perform continues the starting both GCI these quarter, the despite and grew network Now bit a a In second to support Liberty. had The team more challenging second on GCI well. moment. revenue quarter to results another detail service in total strong providing backdrop. discuss in excellent Alaskan XX%. stayed OIBDA committed This Adjusted with Pete business grew has quarter consumer results X% up. with

continued the We – Anchorage year. five XX XX sites more upgrade already XG just go XG with with and turned to this on

and the the good financials We announced at company focus capacity business relatively on sale had we televisions undrawn $XXX business that will GCI. forward. GCI, great to results the GCI million July immaterial contributors cash were of The television is credit sold going transaction under allow also core senior on million and of broadcasting liquidity business connectivity for facilities. XX, $XX solid with The position its in to

the another services Charter bringing that was and we network find below increased remains note June, But do remains family authorization our Turning capacity $X.X it $X well. from billion. communities to authorization distance max total it It residential during enable well supporting this At working difficult discount usage In has quarter. data Broadband. quarter. perform the Liberty had time delivering the remote that XX% billion and buyback telehealth focused up to the attractive. services fourth by continues communications. widened level, to learning on outstanding corporate the and We

very XXX,XXX metrics over subscriber in quarter and operational Charter the grown strong. second X.X customers Charter lines the added and XX video has residential Internet second and customers metrics quarter. million XXX,XXX by The last months. customers were over XXX,XXX SMB mobile Internet

and Our consolidated X.X% nearly billion. was the some under free despite challenges of the its liquidity $X.X and with revenue in facility. Charter $X.X was with to enterprise good and cash quarter EBITDA grew availability flow of $X.X the advertising business. Adjusted billion finished credit up revolving up market X.X% cash billion XX%

ability during at repurchased billion issued share. Charter quarter debt average $X also billion grow million for of very operating team's is shares several for over this the $X.X and products the a rates. per price testament service the attractive and connectivity X.X year strategy to past customers an We years. new of investments Charter's high-yield at in to of significant quality July existing $X.XX

also their by diversification They executed demonstrate The strong backdrop. cost compared led structure. business. The their financing liquidity is LendingTree. cash in profit despite nearly a and benefits insurance year positive last challenged. both well Trip free the to of hand of discipline schemes this businesses to the and through segment home prior and managing have program in consumer flow. continue grew Turning quarter exceeded of a in on and bolster understandably excuse generate Tree The mortgage results $XXX and a and to July the revenue Adjusted time. flexible me, team's today cash reflection second challenging and completed – cash expenses to EBITDA guidance million was various

while to in that and high and Europe. of completed clearly shown it facility, to its saw by to GCI Trip with in early little bond restaurant minimum they time challenging improvements I'm results credit ratio notable successful has net Monthly position the that, signs XXXX further. prudent results the liquidity. liquidity Lastly, from particularly TripAdvisor a a financial Brian its traffic Liberty's a yield detail. amending a July's strengthens at Liberty better traffic user leverage and the discuss With team financial recovery lows, covenant efficiency performance over travel in the TripAdvisor, with for preserve actions business, undertaken April it's to offering. increase in has improved revolving estimates more through liquidity turn going September replacing also

Brian Wendling

of a Greg, which everyone. $XXX operating which at Pete Friday's a stock. obligation leverage liquidity results. Thank morning, cash equivalents billion $XX was GCI against of GCI Broadband of of to Charter million over securities billion, quarter of of end X.X times. as was The compared allowable of At includes a the the $XX.X strong agreement million, defined and had and its is position. more exchangeable GCI held end credit and as at tower cash held debt debentures; that, quarter good value close to the amounts public which Liberty consolidated equity including in you, in GCI. GCI is and that drawn; Liberty This cash capacity above directly exclude Note leases debt has finance interest quarter Charter, our of turn a includes quarter. $X.X LendingTree. includes last it its principal $XXX amount and about billion billion Broadband, preferred quarter had to directly GCI's unchanged and billion at interest interest from talk loan leverage At $X.X outstanding are billion in Liberty Liberty $X.X $X.X which end, in shares, $X.X total of GCI X.X obligations borrowing I'll maximum end, Liberty which GCI. indemnification at relatively margin million billion, fully in $X.X With puts as undrawn GCI's times the

Peter Pounds

experienced data benefited have situation time ensuring Brian. of not demands Thus the we monitoring the positive health our connectivity outcomes any uptick while we our COVID-XX meet expense remain all increasing same debt from care and COVID-XX the for update. needs resulted Starting thus far closely. has at of to have Thanks, with we financial as This far We've seen committed in bad we been network customers. the lower costs. in

to Alaskan ensure We I'd have the for work this Alaska students facilities to work we they support need through the be like and thank continue dedication work will with to them opening to of many the connectivity time. as virtually. community their educational as to shortly, schools employees access difficult hard that

to upgrade. on XG five-band Moving the

deployment noticing our Alaska later XX% We are numbers the are our And Anchorage our them as in making and progress now to We're on five-band upgrade are of this XG network. complete. XG network. to moving improved over Anchorage more continued residents complete our show, year. on are track

OIBDA costs I'll on and time quarter materials match and strong and $XX side. from walk for care our by move continued results. revenue initiatives, like has margin both dollar-for-dollar and Now second through Revenue enabled adjusted the products increased our us to away demand growth lower and video our million. health adjusted cost lower containment customer OIBDA data Significant

was On X% the side, revenue driving growth. up data with the consumer

higher-value earlier as as customers. overwhelmingly rapidly customers. modem cable the paying X,XXX quarter we that the to in gained up have spot. second Anchorage part X,XXX saw quarter large paying wireless promotional we improving quarter bright as in continue to XG first a signed the another with Thanks business, last growth quarter lower Over X% quarter the selecting to than health counts was new revenue plans. second During in The is customers network, well GCI Consumer subscriber elected government, lines due versus in The first due in education at growth customers and year. this wireless the up X%. wireless revenue-generating of revenues. about was to Even increased year, slightly largely revenue

revenue business on be July our Due sold reduced will business this forward. in we mentioned, video slightly going Greg television XXst. As GCI transaction broadcast to

However, adjusted the immaterial broadcast business to OIBDA. was

continue the are connectivity allow business. our it core We to with to will as us Alaskan on transaction, pleased focus

XXXX. million far CapEx. Finally, $XX in We've spent thus

Anchorage Our primary in capital is project XG well. for five-band wireless going year the

are the with demand. over continuing increased now we to keep our projects to Greg. hand back to data I'll Additionally, spend on call up

Greg Maffei

Great. Brian Pete. Thank and you,

this November TripAdvisor; virtual both Liberty November cover on calendars. over mark GCI decided On will Media run provided Friday, that we and so XX from two be year and days. days. be split XX, Liberty. please our Broadband Investor XX, ongoing Liberty Given Liberty's sessions will to XX on we pandemic, Thursday, the Day and details These on will website, Qurate, and be Eastern will your will Liberty More will have we cover

always, interest to Liberty Liberty, As continued Liberty I'd like your open Broadband TripAdvisor. floor GCI and that in with operator, appreciate questions. for And the we

Operator

Zach [Operator question B. from first Riley. with comes Instructions] Silver And our

Zach Silver

the for taking Thanks question. Great. Okay.

versus it smaller pro first how entity The stake. is Obviously, of going at piece big a a around the forma of was GLIB.A. just to piece one LendingTree be the

what intentions that you Just could be that at strategic for point stake. is investment wondering this how Tree think and your

Greg Maffei

and Tree think job amazing a done has good I position. an has

worth got good I over and Today team. IAC was they've at we bottom in space think They're XXXX, and it million. Lebda done $XX it's billion. when well the the Credit a in his to Doug worth $X stake well from in it.

its of but So we'll the Tree stake of Liberty like Obviously, focus and so also primary it. cable form GCI connectivity it. performed how businesses has we'll the Charter Broadband watch weigh in we

Zach Silver

you're Okay. you'd couple buyback aggressive And on be up comfortable increase closes and think Alaskan is willing at of the And I to for the has announced, think go the there get one the How in when window? which Also this on GLIB.A for business Broadband. with GLIB.A visibility ramping this call then how last for file. at last about buyback during where authorization we broadband the buybacks at week's muted said, the enough just been both now proxies quarters? on the second is point, that window the buyback you should obviously of

Greg Maffei

– we'll now The – once is watch start can – buying I'll we that Well out. this. proxy

and renewed many been has I a in not of the gotten business many look obviously strength of the only think connectivity confidence Alaskan better like we've regulatory and – but enhanced issues lot the businesses increased business, renewed. the

much $XX value the the dominates confidence us in That asset. well GCI the of Broadband-GCI over So – all value combined give of Charter more of the stake said GCI. the Liberty, having the in Liberty been those company really billion

it about really Charter that discount. the be the buy strength we primarily and will So at fact can that of

it. how GCI not gained we'll going we where to I of But we'll aggressive have of don't in locked as we take it. And that business the we're not As confidence in advantage or we have think arrangements, know only some forward. but will I take these see. of measure advantage

Zach Silver

Got it. Greg. That’s helpful. Thanks,

Operator

We'll go Securities. next TD to Bentley Cross of

Bentley Cross

better bit little regulatory a front. having on touched the just on visibility Greg

of around wondering, if get you the front for there's regulatory is kind if we see that Just at least. we being anything or time corner the on what see what the

Greg Maffei

that would said I better should say Well, apt had front. we've visibility and we've I should less articulate – description. results Better the regulatory some say be be had probably something would on I

more further one are if area. one job enthused not there some good somebody might if and the I'll as It's It's the about and done other and or of is forces enthused rural add through certain them high. always like let a And visibility I But the Renee like. subsidies complicated think GCI they're a you they'd we don't where aligned, know, we there them. Ron I which are that team work about are very managing would has forces where – are not guess to else comment try those anything. it. are it. or less it's

Ron Duncan

I still an The line. is think it's time resolution ultimate uncertain undetermined.

to now. not So much add

Bentley Cross

Thank you, Ron.

Operator

And Matthew to we'll next of go Harrigan Benchmark.

Matthew Harrigan

has economy do some All see for mean, I been of their cable the at And everyone discredited light the to where path speed you operators. price QoS you in a better up at has increases years, But use among wants the given in everything objectively dinosaur a path of at room. you. there's high COVID see when to off politically about feel you. kind growth happened the lot living variance XK in consumption. over But will pricing. logarithmic fees time. of two been a and Thank speed? next work-from-home, some the five and you least, including over push outlier. the push a price broadband for base has product and the if correlation lot that's not get home the realized do the the the at at We Thank Charter been look we I are know look idea. pricing field speed think But of real on always reticent pricing levers between you to usage

Greg Maffei

Thank you, Matthew.

upgrade the of and COVID work-from-home actually connectivity has things. work do due the the of the think installs able better we and only their is a competitors. part Charter's remote strategy of push those to think it been that such I not XXX,XXX far to cable and to benefit were Charter -- huge of services than residential and been appeal adds. do to do strength showed plan. plant to ability many why to demand, quarter remotely. why has installs able a The its shown to value couple crisis I had It's with upgrades more we the but its capabilities an the amazing that's that manage reason has And think is of

a has that and I And Charter's time the to great that not that potentially. has down try you're probably strategy said a been the such service, of political to an raising grow essential think also be All and environment faster capability have prices. is pricing the road it's as

monitor think reasons than that and everybody is that higher think it those multiple opportunity be to road to faster carefully. deserve down working. anybody take is than strategy able for CableONE they'll growing I the in they than core I price So They're They're And cable other the else may and it. they else. an

hurting that I attractive And more initiatives same trying environment see are provide rural now be pricing. obviously to to probably to price many Americans to the have wise -- for increases. and there education not that many from these ensure are are they thinking time It's particularly home think the people the most where there And in political doing they're are at connectivity, of more like. and the bandwidth way. you about in a attempts things

your done it's customers well. that well I trying and lifetime think to very a has you're serve Charter

So that's I'm onboard. to think and time I entirely you

Matthew Harrigan

Thanks Greg.

Operator

comes Our Melo Truist. of next from John question

John Melo

the could Good pro like Liberty combination comment the with forma look will if on structure Broadband. you morning. I wondering capital what after was

Greg Maffei

larger that It and those structure I a equity. The Broadband has less a the ways. slides. percent be to with you or capital GCI several a has as the Liberty go against in in -- we and would stronger at encourage put much slides will base look think forward assets flow Liberty free measured as and I debt of cash asset a

going encourage it's both to we at last go look So But week. to by sides. some posted slides strengthen measure the on you I

John Melo

bonds? there Thank any there the any GCI - planned And actions regarding LLC you. are are

Greg Maffei

will you sure to actions When be we we let have know.

John Melo

you… Thank

Greg Maffei

to today. Nothing account

Operator

And mute question of button David Capital. open, Thomas please from our line Mr. first. your next Thomas your [ph] Avalon is comes check

Unidentified Analyst

share as Thanks you you. to calls its through in both one shrink would buybacks. on in prior Greg like to thank Liberty Formula been for my count guys, open the that guys Charter Broadband and Hey higher accrete taking question. raise the Charter so you've that cap see level Charter broadband can XX% ownership continues a

timeframe to far consented doing if documents and we're However I'm if the by cap. it Charter looks -- the you're accelerating this run under the Charter's And like like pulling correct that Board doesn't hit which correctly math I'm seem And like forward -- by me, broadband to reading year looks has rate it that. so the on on but about this is wrong is going at merger, a of it it base. by buyback XX% my based kind

you have the So going in just transaction the confirmation lift before not the Why the for I'm of ahead Board certainty and to position the very potential we the gives wait raise and what cap. the the cap on timeframe the with selling to without broadband Thanks from deal? putting they're going until Charter that curious much. accelerate confidence do

Greg Maffei

things. Yes. A couple of

with and of becomes forced shareholder week year would to as sought not that not the the their cap attractive to dialogue had approval formal have of we having But a on utilized fact issue. outlined We the largest sell to out it capital the being and it we -- probably many is have I have is last have similar worked. in XX% many of And they have to have But independents. them find Liberty. buyback view think XX% all that before holders go it of attractive to still strategic an many not be a in productive your issues public us call

are the merging question GCI Liberty Your about to about going these whether of discussion documents stake we timeline attribution to was already given we there accelerating are because to the read. two is the open Broadband how be

So we forced And of we any an outlined it X% scenario I are you're I the to lastly we're going bit to worst rate little last stock as And by as the making be call as some a that pay exceeding means. sell discount less against week, if capital we that's clear on to buyback sound -- -- have. we're to it's basis to our received think which going is deduction XX%. or dividend as a tax at able not is currently utilize

So or Liberty while our value forced shareholder horrible it is not Charter, desire were Broadband we sell from outcome not currently to a sell if a net that's intent perspective. to asset

Operator

our Michael of And from question TLF comes next Capital. Bunyaner

Michael Bunyaner

have a more I per Good total and and couple. installation per customer Would account? the the your XG effect from just or you ARPU lessons the on the morning, of gentlemen. importantly share uptake learned customer

Greg Maffei

or Ron, a that? you at I'll take let Pete cut

Ron Duncan

All right.

believe again capacity time first speeds a while. the increased significant. quite started continues We've the And XG installation to implementation, very, marketplace that speed supplement principal to in is network sell. for XG The We've lines XG greatly positive increase our the reception. that lesson demand wireless the and think for translated very in radios as to moved and and and XG postpaid in the date network XG very side. on adding we increase the consumer we particularly the I performance on is speed that seen the substantial network the has a into the a

competition think that's also and ahead very bit with So the that that. of helpful. we're we're the a market in little pleased implementation We with

Michael Bunyaner

the in we is lessons What for could for a And elsewhere of terms you this you lessons uptake, follow-up that business the of installations, are probably this the U.S.? as not and/or but Charter in point also view, a be elsewhere? for Greg, when the use what either evaluated marketplace can implementation GCI, think for the in about from additional of and learned,

Greg Maffei

it the not at I But, I'm And with the you a positively, is Charter. realizing be ways, impressive only it lines. it's question. can potential for the our we sure an shows that for for in the just It that see lessons platform that during we've that with the own force shown from combine at opportunity excellent bandwidth a that think, top and and increased Verizon table right our what sets very say it's that are is know will has capabilities all nationwide can cable of to what mobile increase in to regional bandwidth very offers the and with least in with that for you well of MVNO for that cable effective XXX,XXX adds you at carrier think, XG added us is XG interesting many the do of attractive I mobile lines really in Thank carrier. the is see and that we combine got When up all at the customers. to platform Charter Charter that the very -- any quarter, Charter just relationship we receiving build-out most locations, be puts mobile.

Michael Bunyaner

about incremental? thoughts in effect basis any a on terms the ARPU of total And

Greg Maffei

generally of reluctant been mostly, because I've of I say because this the dissipated that competition, view to that, away. am gets

with what to that or we'll imagine, happens or but most look ARPU. we're reluctant major the XG seen And degree to XG, increases and XG increased of not in some you I'm did somewhat XG LTE equivalent, you've that have If going to in see. result

Michael Bunyaner

value the a XG, the clearly, of network and Is for obvious. specifically, backbone, now is that correct? broadband the network, And, as

Greg Maffei

I say I you're right-- now way love it's the you obvious and hope it

Michael Bunyaner

you. To Well to you. To you.

Greg Maffei

if think it's don't being I thesis. agree with obvious. I I But proven your think hopefully know it's and I now But

Michael Bunyaner

Thank you. And one last one.

any business the between will Did and the congratulations most GCI going read company. First to there's change? team the not correctly terms from of in I two merger important manage and to the be and stay that continue

Greg Maffei

correctly. Yes, you read that

Greg Maffei

success. for you work and all the you continued hard thank and Thank

Operator

next of And ISI. we'll to Ratcliffe Evercore James go

James Ratcliffe

if the coupon I you of paying L-Trip about preferred. shares PIK-ing? sort on base sources And in the there wanted of could. of above cash do pay Trip in think are one How pay $XX forward terms are notably versus price in going cash to now the you down liquidity going potential Hi, the preferred forward?

Greg Maffei

Again thank you.

are suspect but a holding see I other way. company noncash most we but to the flowing choices we'll most I And sources, given potential have I alternative. would But that's PIK the we're PIK likely say likely what it. is there think along --

Michael Bunyaner

Great. Thank you.

Operator

And we'll go next to Bentley Cross with TD Securities.

Bentley Cross

Thanks the you for you the worth what are forma? Number two in assuming the follow-up. pro see because is Greg at XX%. discount just is opened And calculations? door, your those one stake mentioned that you you GCI number

Greg Maffei

Yes, of a pro And that have we is forma. values. range

So, -- going But lock the just in we do over somewhere on down that. it's let to XX% range. value. -- We GCI the marketplace XX% the I'm not

Bentley Cross

Okay. Thank you.\

Operator

last of our Earnings. question And comes from [Indiscernible] Wesley and Whitehead Life Education

Unidentified Analyst

A X.XX ratio Class was is the the with I why GCI be insight get same to A voting GCI when B transaction Broadband? shares the some Class for their Liberty losing rights will morning. into Good the through if and Liberty goes Liberty shares hoping of

Greg Maffei

question. both the the the you GCI the since committee independent independent Broadband Liberty the two have fairest done they independent which and I case Thank this for the was committee that liquidity. Liberty believe shareholders higher at see at committees believe by was

be and independent it to and two at was really B they thought by committees. this is but They sides. the size to of was believe I our strength viewed vote not think I'm driven guessing the -- were both votes made meaningful the fair view the Given I decisions A

Unidentified Analyst

you. Thank

Greg Maffei

Thank for continued We speaking forward can. want listeners the not all thank before with businesses. summer if healthy. the our again That as you quarter to you, best is rest Thank last in you of believe stay I interest you. Liberty and to operator. I their is next look of question our Enjoy and

Operator

And appreciate disconnect. participation you today again conclude now may today's everyone's does and this call. We

Liberty TripAdvisor (LTRPA) 10 Aug 202020 Q2 Earnings call transcript