LTRPA - Earnings call transcript Q1 2021 | Liberty TripAdvisor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Broadband Q1 Earnings Call.

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

Courtnee Chun

Good morning.

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

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

Greg Maffei

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

March, April Charter's Liberty began we to with on proceeds having a of price of XX%. per have shares the million to at our about about price average an our purchase $XXX.XX for now $X in Through Broadband share. We us allowing these per Liberty shareholders XX%, fully Broadband. from discount share. participating NAV nearly this Charter used February value turning share X.X we received proceeds holding $XXX of LBRD So, view creation billion had meaningful as In LBRDK through and running repurchase and diluted ownership April, at buyback, to look-through per

repurchases et quarterly cetera, of we due I match our basis. that we only or our sales exceed to receive X% timing an shares loss annual repurchases X% proceeds from and in to you, received sales Charter some While cash LBRD on Charter the to XXXX, share after-tax leakage expect we tax to of carryforwards. expect fluctuate the due remind would on tax may any

part quarter, of million We customers And Internet the growth we're year. and Bright $XXX the data Looking the up using the first are month XXX-gig total QX, usage at which into past In nearly investment. demand high our network four in customer invest selling satisfy their a average And Charter Charter, Internet-only initial to year-over-year. time there continued up prior XX% our nearly added to buyback billion ROIC. up began that month. a the per on at in cohort we $XX gain in was of terabyte two to times and Charter, to over of this The Time the gone Cable period. House. of of approaching at in mark over in now over purchase using grow. the users, we sizable more are per one than its is Warner EV through itself, And has Charter five-year Charter continues billion

choose added a up Chris meaningful grew fastest digits first XX% Charter's of years. connectivity for expanded year-over-year. noted basis QX impressive consecutive There partner revenue quarter. XXX X.X%, the Revenues full-service business the the third growth are lines, their strong mobile customers, including EBITDA considering double quarter, especially level XX.X%. And to of activity grew residential We Tom in low potential adjusted XXX,XXX savings margins which up mobile for general on and in sales During call. demonstrate level Charter is who growth. several points as were mobile. over That's the the year-over-year. cost as continues And

X% to stock So that repurchase end. to million turn new level, the a $XXX was for net Certares. of TRIP shares million repurchase quarter with the Trip. and We bond preferred after with the note Certares' funded XX% we and that of at At $XX million. delivered completed Liberty first me beginning $XXX of that, corporate TripAdvisor completed proceeds of we over in We the let TripAdvisor Liberty exchangeable and TRIP the

on security the and negative their potential. and us waived value Certares LTRP ongoing O'Hara's continuing any for preferred, their under on Importantly, continuity a creation put forward look to their Certares been TRIP Boards. past has four-year LTRP We over giving both overhang great and runway involvement eliminating partner year. a Greg and rights potential the on that

travel TRIP travel site increased traffic to US indicator the itself. leading for demand March in the levels. cost continues TRIP discipline the travel, its be operating can TripAdvisor worldwide positions domestic us vaccine rollout for continued well replicate US and on had in we first as We XXXX continued by believe quarter, US to particularly to which here. leisure countries for forward. exhibit believe global for going see successes a we led of In rising other the approached XX% leverage platform, travel. the turning have example, domestic Now,

made on Plus. direct-to-TV We progress good also our Tripadvisor offering

$XXX more average is also than priced still $XXX tandem fee. with accessed million an per we attractive March. in it a Plus the LTRP opportunistically in an market up did beta, the convertible the is bond TRIP than of bp at greater note, subscribers XX.X% While booking, bond And rate. offering, already XX only much $XX subscription in they saving

with let in the Brian So turn financials me to over little discuss a detail. that, it more to

Brian Wendling

with Thank at quarter equivalents consolidated cash $X.X Broadband and billion end, value end debt had and Broadband revolver at has led agreement $XX credit as GCI million Broadband preferred $X.X of of GCI of of of credit. its line on you the of defined in and as of stock. Liberty Liberty margin cushion And Note amount delevering results which $XXX maximum cash under million yesterday's million Greg. loan At million obligation a of principal Broadband at billion. total close undrawn leverage investment the above $XX GCI's amounts was covenant has quarter, billion. of The Liberty in GCI. its has cash our indemnification of strong Charter Liberty the of current capacity GCI's $XXX $XXX the quarter X.Xx. paydown undrawn capacity X.Xx. to exclude substantial meaningful leverage and had the includes

care demand business $XX grew consumer and prior GCI ever Revenue revenue-generating last lower related services adjusted bad onetime OIBDA highest GCI Turning costs modem grew to and divisions QX, and in X% OIBDA adjusted for results. debt had the subscribers Adjusting savings cable great combined that expenses driven first cost and onetime prior included the quarterly XXXX Note for have $X reduced consumer million million company's with associated year by to OIBDA of to a XX% and provided adjusted year. XXXX. over quarter. across health with XX% revenue XXXXX the data would revenue-generating by X% wireless added Operationally, over benefit X,XXX initiatives. consumer and this revenue subscribers and grown respectively. GCI's

our health used in the payments front, the to years XXXX million $XXX we which On and received pay during June quarter to ended revolver. we care the related XX, XXXX funding down rural

on We the rates continue the FCC payments work for to ending X/XX/XXXX. and year funding with

quarter, call period expect mentioned January between 'XX and Alaska rate that that for to received funding we FCC cash years Greg. 'XX. the back collection over I'll delivery As in certainty a going And in forward. turn to last gives have to ending service and providers With June a shorter we new order

Greg Maffei

listening Broadband continued for I'd questions to And Liberty please. To and line TripAdvisor. the with operator you, your Thank like Liberty the appreciate we in Brian. open interest that audience

Operator

Instructions] ahead. [Operator go with We Please start our from James first ISI. Evercore Ratcliffe question

open. is line Your

James Ratcliffe

also, Thank spread GCI you. On gets of infrastructure? and tackle Greg Greg GCI; or margin you Ron and then And been for And a you shall can But what how of you? way potential Any history to to potential is a on And we benefits I my risks me recent is generally of Trip. the tailwinds there on know see eventful options sort Two the support more spread Certares get that broadly one And loans to spread? Pete math structures emergency other much broadband for and LTRP government program? Thanks. just that you the for increased on priority are with cash Liberty broadband about for that from the the talk what has say. use? XX%-plus. say. you

Ron Duncan

you the Do take were yours you want in want asked to Greg go order first? or to they

Greg Maffei

Ron. great sounds That Sure.

If want a great. you would be guys take to that shot

Ron Duncan

right. All

say. the in be many you you and because broadband subscribers. use a of have led their that. substantial many upside a new subscribers last problem something way substantial of that would broadband that generalized a industry-wide in Wireline hard so subscribers cautious Ultimately, will a add so shortage there a in first broadband month number We're been credit the will like emergency of we've $XX is the how a two-part Alaska to the program I a as how will many from program a question that. terms a program with participant chip of suspect months also expect that's done modem a coming and which caveat little by customers to added growth throw has to to the who Lifeline shortage. benefit. modems. expect consumer very How COVID. uptick of pandemic in any limit telephone impacted the one I from Sort much are new out substantial some XX we there. Ordinarily, from on program for to to and in strong really just I'm hit in who program adds has number for well to a The the

available some industry into an to the under have acts but workforce nationwide more rates, and reality. on growth the absorbed the capacity. my some won't fiber industry is getting at problem. knowing I we amounts simply that industry-wide actual With to pace deployment. seem out modem money can through than in And But don't the orders. by cable delivery deploy get there's people should even be are. we I front concern third that's $XXX flowing expect be long expectations money isn't current if delivered to way a billion results congressional pending continue quarter the There from really the we're capacity new to of of get amount much about respect than our what potential We think enough expanding. components, And Those of worry more at

Greg Maffei

thank you. Ron,

limited and So relatively in being you premium is have a And on when discount. various times the structure LTRP fluctuated still a from that has complicated from trouble forward reduced And which was back Trip by margin through restructured we discount go in downside it and away had encouraging Liberty uncertainty We at Liberty once Certares. as And remember and TRIP the made actually LTRP. of a it if both more variable around you to spun to there know pandemic. the of the through it a manage ran large once balances at Ventures our dividend was our loan. and it we into try bottom the yet twice volume

excited the capital put upside our very about because what restructuring relatively we've in in cautious in Certares. the place we increased at it's are we have TRIP with we So, We're feel bulletproof. after our And potential structure.

with cleaning think things we is of that more the and I we structure educating look up forward it do going at to us going runway lot we aligning the about removed. alternatives alignment that better has capital improved clearing But a and uncertainty market about how discount. up can be after the how that on are will TRIP with positioned and So, appropriately,

James Ratcliffe

Great. Thank you.

Operator

TD Our Cross next Bentley Securities. is question from

open. is go line Your Please ahead.

Bentley Cross

them a Wondering of little and to I be more Greg. was what be upside view what rest again lot you. program. little then lot allowed more if for or better aggressively most your RDOF first in and the Charter been view originally here? participated merger Charter docs. the on on aggressive there. a And in what's than GCI, difference industry a the or may Wondering maybe XXXX bit between on Two, and the to the then aggressively had takes was a contemplated and kind thoughts quarter of in than results the puts secondly Thank seemed what this from major the your more

Gregory Maffei

So of I think function it's on a of couple RDOF, really things. a

have management how rural of to effectively their these First, shown connect, cost their to and I cost in think to Charter many service. know operate to team drive terms attractively and in of the markets their cost their ability

so opportunity to go these some after attractive. of And was their

growth a it. because our base, be understands of capital appreciates us the growth allowed the structure and we that being we've shareholder flexibility for got Secondly, runway more and to has rewarded and aggressive which had extend we seen and have it candidly as

were All of effective. very those

caught I do And aggressive competition as at program. Third, think able people they the provided given be the they new were they I kind think that prices, incentives would napping. under of create RLEC RDOF subscribers they the to not thought of some as were. attractive

think things, all an I opportunity. create So those of

see we Charter of broadband some watch may the more and bidders We'll opportunities incentives We'll be flux. there And RDOF that of other we'll forward. how opportunity the Some for to RDOF's are more being Biden nominal opportunities There the still ahead. if proposed out. in administration's winners yet that see see with are go as growth plays is challenged.

Ronald Duncan

then. second the of mine half that is guess I

get back forward growth GCI's that see taken We going the probably think there is of rural are situation I regulatory healthcare improved up really important here surrounding substantial recoveries when drive the to a rate turnaround improvement components. most of we performance, one the The key first impact and business in that's terms for long-term the and continue with and environment stable two a In rendering the that they the that to the that That fact rate and in reductions strongly rate our for have write-offs reasonably the a forward. platform going overhang we we healthcare of rural able services XXXX. and accommodate some are certainty degree good that came had the then very to and us now feel good XXXX as between paid that the business. we're will customers to a to that help continued I had

cautious benefits their debt through out huge the not phase and The out I the vacancy the harder from also household for demand XXXX, a drove being in formation rate stimulus is improvement paying much and people evicted to reduced think How volumes. And pandemic cable drove modems. we apartments. see. their consumer protections for out, of is the how the being increased that from rate because the of or course, pandemic-related. substantially our evicted side it down on the XXXX bad thus second turn plays figure growth that be Obviously, weren't with once to of people It And and cable all are because to increased data modems. stimulus have the is

for difficult weak what me but it's will to on post-pandemic So we're the impact is because strong of performance hidden economy. a call GCI beneath stimulus the the Alaska cautious veil be,

wireless about little a bullish I'm I cautious forward. growth am of continued going So there.

superior what's networks other vastly wireless being to is Alaska wireless in network here the XG growth. and up that's Our all in the reflected

kind So bag mixed there. a of

Gregory Maffei

I Yes. If I Ron is could add think underselling.

offering non-core team on the good business, improved the a I businesses, exiting stimulus, expense some its of demand job reductions, think broadband all focus were done pandemic regulatory, big GCI management clearly has While factors the focusing network And strongest also wireless Alaska improved demand. the with far to just and did note created have in the up there as opportunities. on business capitalize a better hardened to strength Ron prepared

Bentley Cross

your comments. with agree I you. Thank

Operator

next Rollins, Our Mike is Citi. from question

Your line ahead. is Please open. go

Mike Rollins

questions. and morning. Two Thanks good

at And cap Liberty XX% you First, of Liberty is view curious directly cap shares ownership or being Broadband, would of through there you XG. discussion to just structure and Broadband? then enforced whether an does opportunity you the And instead Charter? own rather revisit Charter just mentioned with also influence the not how the

any XG from days of describe you're new could cases early customers seeing network? you If in your the Thanks. use if the

Greg Maffei

So a XG in Ron I'll the moment. let on touch

like cap, to We looked the the XX% down increase We at paying to we X% say at the nothing cap. the revisit XX% have of offered we the discount discussions XX% were X% at some a some a did we stock as to On moment, to own discussions. underlying repurchasing to those relative unattractive own our There's can't alternatives those repurchasing at tax discount. But our Charter. and stock road.

why that's choose LBRD ask exactly should it. think you one I over So Charter?

You're the Charter us the to discount purchasing see and at you a to underlying XX% accrete. opportunity have

count its share to or As basis attractively add and accretes repurchase. decreases a share a count we own its Charter have discounted leveraged its accretes share on opportunity hopefully, share price with more even more the

we Charter. So like LBRD. really We like

Ron Duncan

spite be On cases. than less the from of of the to used devices any population in population new I The it's the industry, XG relative still to impact hype early XG, XX%. overall think is wireless material seeing

happen, accelerate the and now. what's speed it's or XG That doesn't the won't devices. as mean sales in point revenue, and as And faster using of XX users of most for faster our seeing faster some XG dramatic new as much the our blazingly evolve. of and cases times think I driving right But as today. speed a it terms population get of we are use won't speed quality We're it that's that is the network our not denser selling driving users. what's

Mike Rollins

Thank you.

Operator

Harrigan Please question ahead. is last Our Benchmark. from go from Matthew

open. line Your is

Matthew Harrigan

the when share actually you're that are exhaust amusingly I Greg as leakage on that you buyback the an point net vantage you is activity. already my guess napkin call from for apart that tax answered thing? I mean, But effect effect, per you disappear slight only a intermediate the that still motivate point of result buyback that could regulatory question. on from the in increasing to very the get relative least. owned made you. number later? NOL? in everything moving there favorable that Ron is period in something shares LBRDA anything always the of of this then have to Charter the the last Thank done to forward say Does a math, you going tax that or been vantage early nebulous savvy have but point a just sooner very than know rather John or Washington I short-term administration, And Malone very the pretty and XG is

Greg Maffei

Thank the you and question for the compliment.

think rate, the to One always but mind current price. tip relative be marginally still very have On And you attractive low second your take We of Charter. a mind will minds. discount. of will be from advantage to up the tax the of year When share share what we is of a will the it that advantage advantage to is repurchase, know certainly do in it's two price up. NAV you $X take moment discount, we capital approaching get a are take and discount for own the happy stock billion large flow XXXX

as to can hopefully the this understand at pretty simple as creator. it a it to market So be said I And get we even like you we because napkin will too. value they're get look and creators, value likely napkin a

discounted the lean at repurchase well, re-evaluate all -- going at and value to got. alternatives. continuing about we it talk value. But we in about And we're the enthused degree with we're to moment to this other So can shrinks,

Matthew Harrigan

far as then And as…?

Greg Maffei

have what's but anticipate rates. what flux. happen doing of impact idea tax in lot will certainly be Biden I on we're not major to to the It a no seems a it there's overall do have I going fog. to all

Matthew Harrigan

Thanks Greg. Thanks.

Greg Maffei

sooner. And we're speak you not listeners. your Thank today. for next the think you. with hope again Thank again And if quarter with that done Liberty you you all we operator to of interest the I companies. for in to Thank

Operator

today's call. you for This concludes participation. your Thank

now may You disconnect.

Liberty TripAdvisor (LTRPA) 9 May 212021 Q1 Earnings call transcript