LTRPA - Earnings call 4 2020 | Liberty TripAdvisor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Broadband 2020 Year-End Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, February 26.

I would now like to turn the conference over to Courtnee Chun, Chief Portfolio Officer. ahead. go Please

Courtnee Ulrich

good and Thank morning. you,

Act call, Liberty Before or we uncertainties, XX-K change to contained speak materially this as statement the due SEC. circumstances remind events or including Broadband Reform that change this the any TripAdvisor to of Form a TripAdvisor's disclaim any any risks mentioned undertaking like reflect which Liberty in includes on we'd Private results statement certain and date or only expressly or any differ Litigation of those to recent Liberty call meaning forward-looking in disseminate expectations the of everyone the events, any in filed based. and Broadband herein statements Actual is most of begin, with statements such to could forward-looking XXXX. forward-looking of revisions number These with Securities conditions and within and Liberty or obligation regard updates any to thereto our

today's certain X, note in including issued will reconciliations, the earnings required preliminary measures and GAAP OIBDA X adjusted schedules which metrics, today, financial discuss found available Information comparable margin. definitions non-GAAP we OIBDA Broadband's and is Broadband, along website. adjusted including Liberty can with release for be Liberty and and On call, the regarding press on

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

Gregory Maffei

TripAdvisor. Pounds, Q&A, and CEO Accounting of our and we all during Duncan, to morning have good of GCI; Thank available speaking also Brian Chief to to and CFO will be of Pete to questions Today questions. related available Officer, be Wendling. answer GCI, Principal call, Officer you, also will Liberty answer on Courtnee, listeners. Ron Liberty will Broadband's Financial Also the we

acquisition about talking On GCI we than earlier expected, by December completed start itself. Broadband XX, of Liberty the Liberty. me Let

million. for average merger. GCI of the X.X the million shareholder spent an period the of we've XX, share. price we X.X completed then, repurchased on million a after Broadband January the about $XXX Liberty $XXX of Liberty repurchases During were Since to $XXX shares December million for about at repurchases November X vote of

While in remain attractive than yesterday's price of over long-term $XXX higher to they represent period this repurchase is price LBRDK you average the bullish. may close, $XXX, yesterday's of per versus look-through we and note, an Charter closing share

basis. historic first do March into quarter, sell the in share ownership buyback in exceeded about well beginning their forward and billion $X Charter In we year so tax we XX% X.X% expect and Broadband our cadence, expect for of to Charter's north a cap this [indiscernible]. Based buyback on generate a monthly our going Liberty with Charter on to cash to sales

have attack capital, Our it. this already to approximately on Broadband, discount we ample to and at at in is at use Board liquidity $X.X the our the plan Broadband to authorization increased advantage Liberty the Liberty of With has repurchase mind, Broadband billion. plus this hand take

in 'XX, subscribers shift lone history. number exceeding company's the the in first time continuing XX% services, to business affirmed of platforms Time full margins these, XXXX the XXXX, sales, -- mix most MVP merger. of and subscribers Warner mix we online had for the with With the efficiencies half In more in its EBITDA in Broadband in shift first of place combination than the one important Charter operational calendar and Charter. a increased current resulted video star the at cable digital as consumer self-installations, the since any added self-service through combined a market. year of And year Looking Broadband Broadband, XXXX small and in

fastest-growing million its wireless lines business an X.X is the economics. Charter growth also XXXX added provider for with footprint. exciting in improving is Charter and Mobile during

In quarters, nation. Charter over XX% were cash the flow wireless Charter increased $XX the repurchased year, fastest-growing the for fact, in in several Free at and billion we player of stock.

all in all, So pretty good.

turn Santa right out for grow. perhaps to of To the climate that things, pent-up we in Whitehaven check the beaches is in Trip positioned is what Finally, of colder let's travel the announced Australia Cuba, week. investors by demand there. Liberty Beach well be It's soon believe TripAdvisor you'll thinking about best this XXXX keep led to our Beach in and TripAdvisor. continues some stuck Maria

compelling subscription half travel expect first to of Cost direct-to-consumer U.S. in market hotels addressable benefit, well travelers cetera. airline returns. in deals just at et as Plus as provides in is first adding also XXXX. out time, roll giving have XXXX travel perks, to its services, the in TripAdvisor operating Trip amenities as taken enormous. revenue of Currently, the this perks on the it we in This access The space. benefits, enabled with and leverage for through controls and the Over VIP envision about Plus, offering more kind benefits We're value experiences and we in-destination excited beta, is TripAdvisor the beginning. and more

opportunity to million for XXXX, at Trip recurring visits have unique XXX and over converting that revenue percentage implies even stream meaningful long-term small in a We monthly traffic and of Trip. growth a continued

Brian let to financials. talk that, it turn to with about me And over the

Brian Wendling

of credit Liberty of line $XXX the received end, from consolidated and and allow down to to Broadband in to million billion, 'XX. million $X.X GCI. $XXX of 'XX Greg. These RHC subsequent year-end. pay year-end, $XX at cash quarter cash their equivalents GCI government relating by cash At payments includes years you, payments which funding After Thank million GCI had

billion. leverage in $XX Including Liberty total investment as $XXX to $X.X of quarter a credit of of of GCI's million. At had Broadband of Broadband leverage, Liberty credit paydown at $X.X large loan from has subsequent Liberty had capacity, indemnification of GCI's Charter substantial of Broadband GCI's when delevering quarter the $XXX covenant under end, its GCI borrowing has a yesterday's amount million our amount undrawn debt amounts stock. the a of of close as has year-end was million credit maximum the and of defined obligation of Broadband Value principal following XXXX capacity impact and X.Xx, was debt line its GCI undrawn end, Xx. Liberty million on These cushion the sale. of approximately principal $XXX billion. exclude line preferred on X.Xx. leverage was agreement, this meaningful

company. on XXXX update a quick a GCI. just great for year Now the was

demand X%, debt with with OIBDA full previous million, cost-saving bad combined -- the grew expenses, costs lower XX% revenue to adjusted data health company's For care highest-ever initiatives. and grew the by year, OIBDA and associated driven bad and reduced [indiscernible] adjusted

of results had of We be the in will the impacting favorably XX-K later that year, also There's onetime our GCI's impact $XX for significant. million today. items the revenue was filed additional discussion quarter for

out quarter and added Fourth and sold reduced on they nearly core margins. modem experienced overall built growth. to business revenue Operationally, their cable and had Alaska XX% growth XX% which materials first the network competitive adjusted impact to XX,XXX TV they [indiscernible]. a subscribers and favorable their Strategically, XG time focus Alaska's revenue business network, broadcast the advantage,

in midst from trends there was top definitely impacting was number, results the a the performance team of of trying generated XXXX those there the truly solid to by macro some bottom time. that strength While favorable

new on and January more In RHC to year from a funding rates payments and of positive years ending 'XX. for On XXXX. we the June we for the gives in Alaska rate matters, the with received SEC are news, certainty providers that SEC order currently working 'XX in funding

cash delivery have going expect and period collection shorter a service to between We forward.

With turn to call Greg. over that, I'll the back

Gregory Maffei

for your Broadband Thanks, Liberty Brian, and and audience continued listening thank interest our TripAdvisor. you Liberty to in

that, And operator, I'd open like questions. the floor with to for

Operator

[Operator to first go Citi. Instructions] Rollins We'll with Michael

Michael Rollins

Liberty on I'm curious Broadband.

forward, you Liberty has Charter are in earlier Broadband the you keep referenced assets the about Liberty the Broadband and for stay just As or the simple? look-through Do in investments to can into place you fairly the other you on to it Broadband? expect going think hunt assets discussion. assets to Or Liberty price

Gregory Maffei

from XX% advantage the for basically to between and on have. we and -- discount the -- That's to the makes with we you look, capital. here proceeds balance get the of terms Charter capital will differential receive get the with the the the not what I the to our capital but that through purchase easy we question. after-tax capital do receive we that take money our the is Charter sheet payments Thank we XX% to put obvious of to place in

Charter we want If assets. Now market to -- cash our that's Charter effectively, kinds But something holding a and pretty the can part Charter the at buyback to belief might prices stand to degree discount, we Today, full uncertain for changes, in become we pace by we what and given given the attractive. be where that's view, of about more decide that's today. the the are of different. we other the doing our what's in world but where change general the buyback,

Michael Rollins

earlier that any share you discussion? And that don't to discussions the thoughts what I you Why around decide And as the in you this to being year, how on believe, on structure might be why the that revisited? that possible is you enforce final Or the cap this and to versus have? agreement decision? the learned with Can handle last Charter approaching in you the about it you're from it. just is future you shares maybe talked, cap didn't hold

Gregory Maffei

I moment, of and a said, of Board proposals of the about us been discussions find stock to Broadband, we the to thought about We was has the at Broadband, an what's alternative don't XX.X% the won't tax Charter didn't frankly, But Charter back, an pay alternative. we come were cap. what that we'll running rate committee X.X% our attractive from future. -- at presented purchase and a to alternatives to say the Liberty buy what discount increasing forward just back as opportunity look of the buy in versus, that of the that revisit did with the about the know been that, to will pretty attractive put was to Can't get shares. And by them have cash which independent running Liberty as as

Operator

next James go with Evercore We'll Ratcliffe to ISI.

James Ratcliffe

or comes you forward? back, XXs to it available On GCI, when cetera? And on rolling high should wireless and thereabout, capital [indiscernible] to taking advantage going to are out we talking the funding/pricing much up XQ that's recently Trip, -- take tools be normalized any this mentioned, RHC possibly discount secondly, with there use to the of at the et that about that's as it buy pretty looking

Gregory Maffei

So -- Pete GCI/RHC Brian? have on want you some do seem matter, on there. to the feedback I'll Or... Operator, or the line to let comment we

RHC? comment anything? Ron in do we'll want Brian, you Pete add Or or to let

Brian Wendling

Yes.

quarter fourth $X was through items, pretty if I onetime results the there anything Pete, the came settlement much the the normalized. on fourth want one know, Just Otherwise, in that? on there's to for are don't million quarter. you'd for that add

Peter Pounds

the it, Particularly, No, RHC there. that unusual that's nothing income impacted Brian. with statement

Gregory Maffei

volatile. it's the if a big as at price A combine and not thing. a Trip and And funny discount, Liberty On It's it's the the it's you B discount. Bs the and highly you clear look price,

Now Trip we today, to but Bs, we how is is see to a much float to a and any hard liquidity ways excess that's not I'll we acknowledge at. continue There of discounts about the at ton number of advantage think them. there see take look when in liquidity

Operator

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

Bentley Cross

what right what's out And the corporate then for you're of GCI about companies? impact minor the One, secondly, was thinking drag questions. now quarter? housekeeping the combined advertising can just you the Two flush in overhead

Gregory Maffei

you I question? Can the hear didn't you. repeat first

Bentley Cross

corporate to drag now think combined the of companies? overhead about the What's right

Gregory Maffei

one this give to I to you that? want answer Brian. Do

Brian Wendling

that's QX I release, million. in Sure. elevated Yes, as the slightly XXXX, $X.X see it's you think in

that little annualize without an could back So but to to a off reduce down would guidance, a specific I approximation that that giving bit, be bit.

Bentley Cross

have go I -- then ahead. And

Gregory Maffei

it make second heard sure well. as repeat to Maybe the just question, all we

Bentley Cross

the you in for Can GCI political advertising with advertising the impact some quarter? discuss

Gregory Maffei

cut you Ron take want that? at or Pete, do to guys a

Peter Pounds

And political minimis Yes, goes bump cable streams broadcast advertising, due we've minimis consider and a revenue de there. to after there. TV about above I'll to got business, the revenue that million grab that. Yes, would $X cable -- sale our the got the advertising relatively on what be relatively I of over we we programming de

Operator

to next with Harrigan go Benchmark. We'll Matthew

Matthew Harrigan

result some but $XX subsidies it tweak it's just $XX lost actually Firstly, FCC up lower-income gets that 'XX and morning, for to earnings areas. be some Liberty's Is have enough probably may tribal Comcast, there you make this on in could releases approved more myriad that Verizon broadband I would amenable GCI with homes, to know population to actions, the among but And -- prices. given and with it I say is terms moving XXX relationship you've you small the guess, can't not than secondly, UNF and tested you the which pieces prominently, then see Charter Comcast those definitively be Is you that in than answer, given more the XG. much maybe but Not of and with work last [indiscernible] surprising, on advance of but the do guess might material indication a before, the there? there results. here your winners. C-band cell more I Charter with the native know auction of lots were results, of I side sense Auction the

Gregory Maffei

subsidy potential the tribal guys talk meaning about Pete you and GCI? of impact for to So or the Ron, holds want a do it in $XX areas

Ronald Duncan

and substantial provider have is believe broadband into be will already GCI subsidy. side, I'll on fairly set we programs take to that quickly up a morph the voice that. quick well we cut a the at lifeline positioned

As area, is Greg Alaska a the $XX applies of so there, implied all state-wide. tribal subsidy

high, some more I the pandemic there's from our also for penetration fact GCI. But that look year. exceedingly so is even broadband that, So to the think after also to have last at believe, effects upside you I

limited, probably supporting driving a it and stream. is probably have upside the debt further positive bad income on the will although So the effect down

Gregory Maffei

think cost spectrum. And you're $XX include was as looking stunned many mid-XXs high the C-band Charter, prices. when the the to sort observers, of and by billion Liberty, auctions running far at I the as you of the Obviously, like

think the of CBRS It's we participate particularly the at but carriers, we Verizon each attractive the and of spent did like a a $XXX something CBRS numbers. very with were million basis paid something the larger some And pop big T, look like or also amounts our X/X that alternative I auction. cost of about of price Charter per that in, that.

get of the make MVNO the of that are and I'd they going have really where is spending do whatever point beneficiaries in we the recently Verizon of other there we're MVNO The latest to has. get. with because renewed Verizon terms our get we relationship they greatest We and benefit

which economics I honest, the prices network their the Charter on economics choose to get be a think a their are. perfectly it's is for way owner stream rental based at we fraction we of price all around So upgraded continuing with in where where retail we a win what CBRS get and downward on

look they stapling much as those on certain companies So less larger going of do bigger in debt to -- alternatives of frankly, markets and in. probably probably, some to is at cause we're might some participate them and to the

consider result good I pretty for it Charter. a So

Matthew Harrigan

of moving historically But that, But mess advantages I something Or I all the is table that Charters network. specifically, Verizon small agreement, you something wasn't let I'm still the as powering on that that place? that work and is Can know have as contemplated? that I cell a the with reluctant side and that it's same that to Or access the you target? in expand, far was has Comcast take out future? your is with something the in know -- the new just a maybe for it just that off while? specifically sure probably and could is been that

Gregory Maffei

I you think make. the point it's

out yet, We that rolled CBRS. our haven't

mobile last road, the providing certainly one we to We larger I where capacity as -- our But the other of why for We network provide don't owner on access know so as well. our provide plenty could mile well. yet. haven't anywhere carriers, down backhaul the like out rolled places economics really imagine the do

Operator

[ CLC Michael to Capital ]. next Beamer go with We'll

Unknown Analyst

couple questions. a of have I

approximately cable [indiscernible] bill the me which the that, know at penetration and thoughts on on the this. that really go last I'd average to the announced the their about And it's penetration? is relative total XX% what lot, with to are passed, appreciate homes around the a for $XXX on at it fund monthly the $XXX. Looking What increase rent, And of U.S.? think Sorry, is Did thinking spending when you opportunity is to inflation? do terms roughly purchasing I Charter, are also, across average you is the in the looks of thinking price about was end please through? discuss your you How by but to Charter. what that? And month year a touch it that your are you X,XXX about thoughts ability

Gregory Maffei

Bible grow up going I to have if when the we're here. ultimately, But also share I'm Yes. look, X/X our of we're -- the we'll final write the believe chapter he ask you Tom of to more think better going -- to would Rutledge, that, relatively have and provide network of service because upgrade, positioned. the the are our even perhaps we so parts in can we best we large time at X/X and where of market a low-cost really or over well market customer done

continue taken the In has switch nation. Charter that great we that a to and a players is you but it X%. it's the among that out perhaps what some than something not has share think dial really because it price and the In have the has price when taker, at rather a if uniform, contract the largely by of and the not price Charter to volume where kind price in than and job management say hard need the cable market. turn we better than at not take as available It's than we of rolls been up big some I leave offer. is today. across gained is price increases, a others the road We've dial we plan And faster that general, anyone yes, work plan goes and volume really rather been share Charter less and It we've new a to on general, everything is they're doing else customer's seen, plans lower of offering something taker. under I've analysis most at the looked done team what got down where do and turn share

As far as see. where it go, can we'll

you -- going for a never the head As a whether where see use, own businesses rent, is thought be because service a the rise. and a are for it's of alternatives, increasingly world have don't it will property, increased or remote demand value how people look against of personal cases, broadband lot to I have have small you people to likely number in their or at homes, my in really businesses. looked about particularly average we at or rental it not businesses, in

ahead. think Broadband it think But increasing I much I has XXXX, -- to necessarily do that businesses against value alike and started the in as about shown the has I consumers So years increasing don't I to don't rents. out, product, in dissipate expect shown

Unknown Analyst

follow-up I Can with just [indiscernible]

Gregory Maffei

Sure.

Unknown Analyst

of you to flow across but recent Broadband. Acquisition Broadband shareholder your own think Liberty because The high-class excess you. success you company? about create obviously is the attempting treat of every to Liberty free in going Media have Media the properly do clearly, a from How are interest at Liberty essentially repurchase capital not entity? Liberty thinking the just its How problem and And is conflict Corp, you the for cash

Gregory Maffei

Yes.

a So things. of couple

that market Charter opportunity to the I Broadband. front our underlying cash Charter grow its see And opportunity I of continues we're belief talked and flow, in its grow about the its and its dividend. today pretty looks grow attractive in revenue, Liberty and the of pursuing prices we shrink think given given equity, at us, as value the first primary in

that. So we're about pretty enthused

be in has been the been that's likely motor that haven't been likely seem to And issue. this of go Media lot natural Liberty conflict If Sirius. waived cases if that's we music, go at interest. of to X. If seen homes. really something an into a and we've Curate. see that's Now to probably spun Formula something And e-commerce, fact, into probably we from to of each their time that's specifically long something probably in There has go just to sports, a we companies Liberty around where likely see see around

the Now conflict. waive in of SPAC, the case Media its Liberty did not

decide in offered we're the whether We the team, me, John will sees any that gets the created in we the the to Formula it the not in whether and LMAC because, as is he'll goes likely Acquisition So who opportunities media. Liberty be But fit to see unlikely if management matter that one going doesn't be motor well, and excuse a I Malone see X. it very effectively not it's first it's sports, be large decide may delivery SPAC. position again, well Liberty Media. in unless management we that a he to -- where a team, too SPAC in see be Media something will If something one it's practical be think really particularly to scale,

and So that and because fact, we've with the have we well those be We've motives. we're we to was at it diversify good years. had alternatives one we purer created to And not about entities this unless conflict in the never there in shareholders the we was in -- to transparent may so reasons effect a today. really general, issue we an the our had not reason. pretty look I in among create plays try really have try to explain for fit that diverse of portfolio SPAC And have think

Operator

[indiscernible]. comes from with Our Heron ] [ last Mike question

Unknown Analyst

One, of that holds the I more change that us quick sub to correct you to and shares reasoning GCI ones. with looks parent. question explains structure? wondering GCI of second Charter the to was two it have implications like the video give just some segment. the that in business for moved in if the has on org from revenue. color I the transfer the the that the do Can change the My up segment from subsidiary and consumer is

Gregory Maffei

take I'll one. the second

comment primary was was want goal. any or do allocation I'll want you our -- -- to tax on you And Pete, the to is on sub Brian, case it do in let often changes the and motivated, in comment any that or video As Liberty, positioning?

Brian Wendling

for Pete, you that. go

Peter Pounds

sold Yes, go play. because the the Yes, change video It business into just stream stream. I'll GCI so as TV more we revenue. to broadcast the revenue, the business unit that bit to it's took used we revenue broadcast business, a to broadcast, when elected the we the advertising that with Without viewed a revenue and more consumer of seemed follow the --

the from So that's it Michael, why, the just residential, and it's advertising the business moved to revenue.

Gregory Maffei

Yes, thank you.

I think that's Liberty our for their not all listeners sooner. We last speak question. our quarter, our in teams, you Broadband hope employees, Thanks thanks to interest the next to Liberty management TripAdvisor. if thanks to and and with to

Operator

conference. today's participation. We conclude your you does thank This for

Liberty TripAdvisor (LTRPA) 26 Feb 212020 Q4 Earnings call transcript