LTRPA - Earnings call 3 2021 | Liberty TripAdvisor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Broadband 202 Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, November 4. I would now like to turn the conference over to Courtnee Chun, Chief Portfolio Officer. Please go ahead.

Courtnee Ulrich

you. Thank

XXXX. SEC. we'd statements everyone the TripAdvisor Liberty to the within Litigation Forms Act XX-Q begin, includes this Private and a to results XX-K in Reform forward-looking or and the and Broadband with certain the of those number like of we materially by uncertainties, that remind Liberty call Securities could risks Before differ events including due mentioned Actual filed meaning recent of most

change These only Broadband of any Liberty any obligation speak statement based. to events, forward-looking call, change TripAdvisor this or Liberty to in revisions Broadband expectations undertaking such or or any contained any Liberty on date statements any circumstances statement any the herein of as forward-looking conditions disclaim and disseminate and to is which Liberty or in or with reflect updates TripAdvisor's regard expressly thereto

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

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

Gregory Maffei

do will QX TripAdvisor. answer questions. not Also answer Liberty the we note Liberty all to and the questions GCI, morning call, Ron Accounting please Today be quarter. Chief have GCI; results, will to CEO you. so Wendling; TripAdvisor good to related and will reported unable Officer, CFO comment of has current Pete available and we of Principal Q&A, yet speaking Courtnee, of But you, Broadband's be to Duncan, Brian Thank will we Officer Pounds, on the Financial also on during

we and diluted to participation our Charter's looking we cash buyback flow from at reaction the meaningful fully proceeds continue the to ownership of From believe the do of $X.X the remain overbuilders. We in Broadband, LBRD repurchases over QX results at we to in reflected receive first at is the October of from against billion million our in August So received from we October, from price Liberty market Charter. the share And XX%. holding to end per $XXX.XX. overblown Charter repurchased competition, well X.X fiber period bullish August that $XXX own including shares was X positioned same an average XX, of or million

approximately at which per $X.XX to share, per to been the share that's look of price period, yesterday's close year-to-date favorably and compares over price average look-through $X.XX Charter, share. at per this you $X.XX have If an look-through of purchases

$X.X $X.X Since total have of our LBRD began investment selling charter we proceeds year, representing buyback in of received Charter. billion XX% this into earlier the billion,

of its Let that, Time share at our into of the repurchased shares XX has outstanding shares billion me note that has Charter year-to-date, legacy conversion retired $XXX.XX over well. therefore, Warner $X.X Broadband as reflects XX% $X.X and per million Liberty for billion shares. Cable

for share X.X% tax the the you at on Charter up I NAV Charter year-to-date Looking rate X%. X.X%. the our to remind that want NAV X% per share up accretion, to is do LBRD is sales about to compared XXXX

Revenue year. the increased quarter. $XXX over flow cash prior outstanding prior year. up EBITDA it million delivered Charter the at financial an in increase was was and up itself, XX% X.X% versus results of Looking the third XX%, over Free

think had we We free and $X.X opportunities. churn a adding more and relatively move growth flow. XXX,XXX despite opportunity market them we the cash gain Charter cash Charter sell get reported to environment, like quarter, more effectively flow free Charter good an which LTM quarter it generated billion XXXX. reported than third in provided sales of in customers And in subscriber all fewer when of the share. low we because broadband them, people sell has

we customer of do financially well them periods movement, sell new activity, services. opportunity but when to So less have low low

Charter added large family MNOs, XXX,XXX the savings to X high to mobile mobile. note unlimited third industry Last for per $XX and result at for take I'd in lines. pricing the new against to there plan, to compares offers in quarter, consumers. believe best that as per continue to an for more multiline Turning as new which with for value accounts in $XX Charter lines $XX that, share. X Charter can launched line month, accounts poised for line programs we pricing

With let me to discuss results. the Brian turn that, it to over

Brian Wendling

Greg. Thanks,

at a X billion. end, value and equivalents of balance our Liberty $XX take Charter November consolidated as the available close quarter cash cash total debt Broadband million, quarter loan The $XXX is which At cash had look first includes million. end during had $X based of Liberty quarter $XX Let's the price capacity margin held share down $XXX of yesterday's at sheet. at drew quarter Charter million shares of of million on At of a our and $XXX GCI. investment end, the amount on as We Charter Broadband of principal was billion. and

about Loan Term Subsequent a with its $XXX at draw. to and a available at was under refinanced GCI Term X.Xx and delever, Xx LBRD, the sales per payment down in was million million revolver A when on that to escrow Charter to its revolver interest repurchases strong largely as Pro drawdown, was quarter. and $XXX agreement, quarter This capacity GCI's to the continue discussed at still will during an $X million release. save in received and timing this new B driven and $XX the share forma earnings Loan fund its we by the fund the proceeds paid defined quarter results GCI from The was end. additional differences is drawdown revolver leverage for end, year million. given GCI share in credit Leverage expense.

-- obligation amounts exclude the indemnification stock. above the the preferred amounts and Note

million to in to QX segments business last consumer order continues of abnormally pandemic. data in been growth of core health focus down to loss that network. media to materials post flat low has deemphasized XXXX and year Turning political was broadcast the OIBDA that also Alaska X% COVID-XX the especially business company QX both revenue revenue in year-over-year, due the loss advertising. strong from time heavy which on primarily offset was year-over-year to business results. financial $XX GCI's was as marginally were the of GCI's by of QX results. in sold to Revenue across $XXX GCI's was XXXX of was expenses, and GCI positive care from due revenue million its due and

perform with consumer subscribers, X% very and and to core GCI's up business cable respectively, on X%, wireless well modems basis. a continues year-over-year

With revenue back to up Greg. up XXXX, OIBDA XX%. the Looking at call comp and a XX% I'll over to was X-year was that, turn QX

Gregory Maffei

operator, Liberty line like page. COVID-XX. XX attendees Broadband Annual We full virtually. Times our Thanks, to Brian. Meeting. be We look Please against in that, experience be questions. forward link at I'd The Thursday, the on must person in the your offered to at to register And can seeing and vaccinated Center on to our York you fully The with home interest Investor November soon continued and appreciate in-person open New be Liberty for TripAdvisor. all note, found

Operator

first Ben with Stanley. [Operator Instructions] We'll Swinburne from take Morgan our question

Benjamin Swinburne

even Greg, I'm free fiber What case, and on play maybe care. think cash footprint the see side. next half environment to the the the think Starlink going country the ramp that whether you but with flow, about devil's Or significantly a about with And Frontier's free builds risks. adds we're to of is of the not target on think guys you or net entering period market, the Charter the fixed the couple the sort of I -- just confidence reaction, you X/X cash of some folks kind it's it, maybe But from, competitive you curious of you just over think the flow, overbuild wireless advocate that slower to of we don't country. if enter the be call combined pretty the think T-Mobile just gives years? Charter Charter, how I'd I that's as broadband biggest

Charter to a looking what to it perform perspective, well over sure do can product from continues make to And try out time?

Gregory Maffei

Yes.

First operators, they fiber good of to are small. be but competitors think who are all, I there tend

at free I If they the we regardless. And do know have capabilities look fiber cash down data some our and actually at overlap looked probably can when to as how AT&T far And And it even this grow. still then acknowledge we'll against have is people is with we you but overlap, in slowly, out a how how compete. of you by think we Verizon, about And our note, there those more where and and grow fiber And have continue against that we lot here we overbuilders. surely, people from success rolled business rightly them. guys overbuild, seen we have against we slowly, perform flow there. less largest scales then

on performance fiber the overbuilders. face potential I So remain of Charter the quite financial optimistic of in even

Benjamin Swinburne

of updated numbers, mean, that millimeter How is their some. so thoughts I about you material. time T-Mobile's well? but on -- some they're market feel wave not we disclosure fixed over the wireless I as side? course huge the the on from Any mean, Verizon thoughts threat added mature got do

Gregory Maffei

I success viewed talks find because as it that interesting don't Verizon can now it I think about millimeter to date. be deemphasize and little how wave a

is because alternative, where work. brand. certain do may in will have and better Starlink a get And -- of remote acknowledge those the think it unable locations for fascinating a places to certain appeal its and Starlink to that segment I a product you're I

the in But pipe, those particularly given slower only change pretty is good to performance game to speeds, going choose it going satellite I think can don't the if it up on choice, pipe, only time. fills the consumers you're but as the guy be over town, are

So and think higher see fiber. I I is I or product don't not as that include alternatives, would against hugely niche. competitive for interesting an cable a Starlink this do -- speed

to if going a choose I Starlink satellite alternatives. have You're or you choice the suspect of other over any that.

will we to ability continue more think the our our smarter. I to on our do progress our ability products, in home, getting make to WiFi see better,

path cable. the we think see those after a to financial resilient think things for and I DOCSIS that to ability see of you'll I health ensures our is all X.X a upgrade path, upgrade as that And network helping. long-term you'll continue us

Operator

We'll take Citi. our with question Michael next Rollins from

Michael Rollins

Two questions, if I could.

The when to upper in for the penetration what who And industry the about think if get over you are broadband the the haven't through demographically? gotten they next XXs first doesn't XXs, XXX% or years? catalysts pandemic, penetration it few just is broadband have the even

secondly. then And

Liberty the Liberty that from side. Are on level? Just buying there assets would curious the to assets Broadband change about if Broadband you you stock Broadband that valuations Liberty the back at for any look could talk or actually strategy buying

Gregory Maffei

didn't Can with the I part the access question, I start behind understand of -- assets? -- second that

Michael Rollins

Assets.

Gregory Maffei

just I -- hear. was rise. to think Look, continue I I penetration didn't will

government to not going are I to the penetrated. think programs some continue have been Where people of rise.

think capacity they places or it's not or largely older where an the to as feel high-speed in where adequate get or unable are financial doesn't is I where were there constraints. tech who need savvy audience

the demography And on there be #X changing #X. that's probably #X. broadband money And being on in a and frankly, spent time attack over will

to realities week. I And move dramatically factors a about of not up. lot think do of being the of of that supply I happens it's installers, pace the that side is modems, the all to changing everything is X both the think is pace the amount penetration. demand continue and it money. all and penetrations of I that rise to point will broadband it money demographics means the continue a at increase for of don't thrown So But the reasons, in quickly, to despite those of side will think it going those pace push

As far as what assets. other look at we would

at it were a back XX% that look other the liked when discount-ish that buying would to Broadband better thought Charter. there than stock underlying alternatives Liberty think we I at we we

on more So the even Charter discounted therefore, hear buy to optimistic on Charter and via ability Broadband. being back Liberty us you optimistic

right need went if few to we're we out did market We're willing but "boy, it's for not adverse we would say, a say we But a to But we a plan. the to while give like us probably something be wait, we buy but other looking that and already alternatives, now. I hand look the there think something think and possibility. hiccups to to discount." would darn like big. XX% hold at credit, we attractive no lot that's alternative, pretty at So We have you an our never

Operator

We'll take ISI. with Evercore next James Ratcliffe question our from

James Ratcliffe

have been the noted, turn rather service the focus service wireless X. Greg, it's get handset that pricing, lower upfront kind time. promos seems are dominating mean lower to handsets, than Charter's but you to for as on I lower pricing, over from you off the big offers of harder capital

Greg, I'd handset right or like also is X to lot now, hear experience for looks hear particularly different Ron mix promos on working service Pete, your those with appropriate your your equipment, love subsidies? looks like strategies. on either been it interested has with that given And incumbent more mix the price What what thoughts high Charter? to or of carriers a

Gregory Maffei

start Yes, like say strategy. I'll I and our

on but can mobile profitable it our we're pull deals unclear upfront. opportunities. continuing really broadband well. time to when articulated basis to attractive, know look lines the the broadband what we're given I pricing less us with for think outlay. profitable of you hand. handset free We and coupled some MNO and capital and over will I flow it. noted, with It's yet very like has cash management our And still me like what Charter We that's upfront team getting that offer a as

optimistic So for the Charter and opportunity all very of really on cable. remain we for mobile

or comment don't second on guys I'll Pete, Ron let want why part? the to you

Ronald Duncan

patently of play handset right. subsidies. that laid like market space we're there Verizon We're network very the MVNO. confident thick not of more our network. with much flows the We're that's free rollout, We're more XG those do up based the on we back. customers. our are version Charter's the with got cash in deals. lined the to a a aggressive, good the in up most the and We're wireless And You're bit little primarily probably than in here advantage We've selling discernible MNO clear

driving it's XX% at what's market to which to our already to think in us I market mainstream, here, for growth. continue to that's the to us up play it's handset requires for important XX% continue we're in important But the our subsidies. play since the share wireless a the

we're handset going I know that that those life -- confident don't that with to continue, over cash AT&T cost allocated deals. is X-year reducing average even free the by I know on its its our of is subsidy customers. there's extending long life how but flow prior customer

Operator

last Matthew Our comes Benchmark. question with Harrigan from

Matthew Harrigan

coming I Really are on growing you if would rational question, just real and very, of at Is an out there that's more high that long do shares people the the very getting like How mean, extension are much of of a consuming stop Ben's a anything could costs some it's Star mean installed I but of right about pause you reasonably still utility as but blocks. low year. and talking that people I the level attractive basis, price you mean, real disruption service. worry you unnerving? look now the about XX%, are at gives practically very pricing, upstarts Starlink, not broadband, XX% A like as the look units

any do for or is little of on the also, you Zone And a any being bit named GG folks? disappointment FCC, have issues which comments some to a

Gregory Maffei

worry cost we I in said ability to with competition good upgrade Matthew. and competition territories our operate you have, relatively about the price don't our I we thing. I think thank the X.X. them. as very X before, I you And dismiss do about certainly, about low through technological always we always the -- question, for But feel and We that Look, worry challenges is opportunity

builds about feel with partly new good forward move our I path. to RDOF, growth by fueled ability Our

for want dismissive And to again, of out believe will profile radically that's Charter. change I But don't technological it be do not competition there. I the

As the Chair going as of questioned forward. a Jessica what do see somebody Rosenworcel GG operate think who's she's permanent great we'll far to forward, and lot industry. done, FCC happens. we're respect what has got as of with step Zone, Rosenworcel excited the a for a Obviously, appointment the Ms. is I

question There's out X One more more I question, think. there.

Operator

Bunyaner Our TLF comes Capital. last from question Michael with

Unknown Analyst

understand to what following. thoughts of are a trying little economics just bit the your I'm the about

XX% month broadband $XX roughly of $XXX wireless. ARPU, at about of and versus in have penetration We that's in that's competing and business Charter the per

as what the good business. what Ratcliffe [ ] dollars we less alluded on Can So what we do of your gaining thoughts this the today? have essentially incremental versus to you profitability of different the is Mr. competition. Or that with have us market cable of sort to in very share just Is is of is this, basic economics we than XX% available terms as can? share this can

Gregory Maffei

Yes.

business in the we is things. I a we will profitability think But same business I mobile think have not of the that broadband business. stand-alone the which a have couple

First, that profitability increase with scale.

ability Second, the and this on profitability you that operate basis business But incremental where market-by-market a economics go to to are importantly, have increase particularly as a customer, relationships their is profitability. products a more we margin to and MVNO most lines, to we both do will broadband incremental broadband incremental with further being way only customer, buyer versus only are your it, the to business positive. who churn. we and lines, churn the we because a we Not mobile hopefully revenue a customers mobile less reduce and drive from it's buy likely get multiple broadband

margin. but a particularly it's There the are at look can't think in some really it around, at a this all I I remember the ways. is as way ways remembering X I you it's all morning, win when win probably So other least on this think

your Liberty operator, think you we're in interest Broadband. for I that, With Thank done.

virtually. November on Day we forward well. until then, look be you on in person seeing our Investor XX As or I And said, to

Operator

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

You now disconnect. may

Liberty TripAdvisor (LTRPA) 4 Nov 212021 Q3 Earnings call transcript