LTRPA - Earnings call 4 2022 | Liberty TripAdvisor Holdings, Inc.

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Operator

Hello, and welcome to the Liberty Broadband 2022 Year-end Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded February 17. I would now like to turn the call over to Shane Kleinstein, Vice President, Investor Relations. Please go ahead, Shane.

Shane Kleinstein

Good morning.

Before we begin, we'd like to remind everyone this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Liberty could uncertainties, due the including Form filed results of a most or TripAdvisor XX-K and Liberty risks those by events differ SEC. to materially number recent with Actual the and Broadband mentioned in with only TripAdvisor forward-looking These Liberty updates date of Broadband disclaim or disseminate any any obligation statement Broadband revisions contained thereto herein of this circumstances forward-looking as the any any reflect and change Liberty call, events, or statements regard statements expectations Liberty in change in any to or to speak on expressly and TripAdvisor's Liberty which or undertaking is to conditions or any based. such

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

just and Greg I'll Liberty's CEO. Maffei, President introduce

Gregory Maffei

Thank morning. you, Shane. Good

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

me let start So with Liberty Broadband.

September, approximately we mentioned near-term sales retaining of our in we cash last the began liabilities. call flow Charter address As to in the the XX% from

of of $XXX to based Charter from year. we of Charter on million October the spent versus Charter under look sales we those approximately price through end that $X.X on $XXX Liberty million the due exchangeables $XXX was current repurchases Broadband just $XXX a repurchases. about The about November on from by received of the crisis. only proceeds have and -- related January, current to Therefore, repurchased to Charter We billion the Xst is

them, may of come mismatch for that XX%. being and that proceeds a slight we when timing than on they the account There's more the spend and when slightly

continue Going cap share forward, lower in the annual Charter's proceeds have sales lower Charter last of the in under at also to driven company, compensation to XXXX. plan expect But discuss do making them, expect XX% ownership we heard purchases. of loaded early goes more proceeds are do the total from I year, by to Similar compared this we Broadband the be XXXX that. the the apply Charter previously forward, you towards we to at from XX% as We Liberty year Charter and fully to grants. they year to due do year, buybacks investments in are will

addressed. debt are We after in capital the year later revisit our maturities will allocation

look We unit let's So in XXXX. at growth broadband had lower Charter.

of this a pull no is forward, Some COVID doubt.

fixed the operating had wireless and Some customer. move of we we units Nonetheless, opportunities new surely broadband over in chances were some will residential many a share it we with a as quarter, taker, has not view long note the wireless. to XX,XXX Though them expander increased a to in and them, the fewer X posted including do fixed prior And cases, short term, a competitor, sequential feel Charter not quarters. entrants, over improvement fewer would strong added, fourth but we In environment like term. from competition for the results. taker the get was ourselves, sales that lower been market share

XX% success been net -- adds a quarter. in would pricing recorded has and One, in is XXX,XXX in our Spectrum Charter's mobile, to new and adds fourth XX% It quarter other net helping was share drive a adds. compared record huge global momentum we product, rather, third in the and the was mobile net mobile I of all of quarter, note cable operators, the global fourth

nearly value through of and the believe savings adds, of We X/X cost to So stunning the Charter connectivity. of bundling mobile was all seamless net which customers demonstrates a this is number.

initial outlined in December, is Winfrey rural of our think 'XX and in will below but we to offerings expect percent has of to That series with the mid- far IRRs. through so opportunities. large extensions, CapEx further, way that targeting and expectations a initiatives revenue. attack in Spectrum increase to excluding are returns CapEx, interim, growth Chris line high-teens a do differentiated includes By we of converged As Charter and attractive a we product revenue, which builds. build, decline XXXX, undertaking investments as our like as accelerating be And evolution penetration plan percent network above connectivity One, split, these accelerate high a

a would cash yield flow was board Broadband. look have XX.X%. value long offer note Charter and the both We Liberty through Winfrey in and Even investments cash the that free about marketplace. with The by Chris attractive the even X.X% in flow are Liberty more I Liberty price, free strategy at relationship increase Liberty both the in working Charter growth here the Broadband 'XX the at yield is articulated flow despite yield and had Broadband a the vehicle. business, investments, positive with stock his to excited and relative it's their free cash is compelling

throughout traffic auction talk a hitting are is less driving and I'm ] travel XXXX, and recovery parity both expectations. of revenue about Let degree, and continued me revenue more from with In pre reached turn in strength U.S., with XX% The XXX% Trip fourth now the of was to XXXX, fourth Full in quarter number, that XXXX quarter, year. management's XXXX volumes, in [ revenue, second. year paid the actually pricing TripAdvisor. and the our hotel the a which going from to the hotel the more exceeding reached recovery accelerated The we to in margins matter number. obviously

prior quarter was the despite Viator increased over the reduced losses with spend. marketing up XXX% in year, fourth

to this benefits are customers, the conversion continue improved see We and segment. in growth we experiences confident and in repeat very of

product the XXXX opportunities strategic management investment segments, enhancements drive maintain on note using growth despite I and would long-term expect focused in and growth. cost our disciplined to allocation experiences. including is Management through flat increased in margins they to

with I'll that, turn it And over to Brian financials. to the discuss

Brian Wendling

and Thank morning, you, Greg, good everybody.

$XXX GCI. Charter end, on as investment Broadband and shares cash at of Charter had Liberty $X.X end, value X, quarter our stock. at At obligation price of principal that had excludes quarter our consolidated of a cash $XX.X At equivalents based Broadband billion. the cash held indemnification $XX Note directly which of preferred share Liberty and this amount total close, million yesterday's February includes and The debt of billion. million, was of

from reduced expect in early reiterate to commentary part I'll we Charter the share of XXXX. Greg's Charter that sales proceeds

compared rate the However, annual to Act. X%. updated does XX% for apply Reduction do the Inflation for X% received dividend updating are not shares the booked sales to tax guidance the DRD, our share guidance to we under the 'XX end to of minimum our sell, tax range X% previous assumes deduction, to we of for high The Charter

the a additional Treasury IRA higher We while tax and from 'XX, of IRS the guidance are rate is accruing pending. for

year. So we believe is clarification possible this

making offset extent regular for will the for minimum this tax to tax any tax paid impact to I'd note income us. exceeds a book forward carry more VMC, the timing 'XX income regular in that of years future

Act. We as of pricing our are many tax control, certain are Inflation and not there variables including guidance the and specific share Charter providing aspects beyond repurchases 'XX Reduction cadence outside around in clarification

this roaming XXXX was GCI. free cash a from paid comparisons additional Liberty Broadband the Looking $XX Broadband at in dividends for through million GCI OIBDA year. anticipate great so year. additional adjusted also company year-over-year 'XX, dividends of the and during with an that flow year-to-date distributed to quarter. the generated in third $XXX the be contract record impacted despite and million will GCI we headwinds far to year Liberty dividends solid paid

strong the that the impact term flat lapping XX%. long growth. is by fourth from data driven created In was ever to in drove 'XX was through highest and million, year. adjusted X% which revenue XXXX, was company's the comparisons growth which both X% For subscriber quarter, OIBDA OIBDA of year, full grew the the positive and was $XXX driven that as ARPU agreements into negative of OIBDA, also and adjusted adjusted up demand, data primarily up entered QX by this the This quarter roaming we well as third revenue

quality and to continues Dutch and Operationally, consumer fiber of satellite growth the GCI in network wireless network, consumer improve cable in added XXXX. increased modem Harbor. with build to the X,XXX The customers XG wireless the capacity subscribers completion X,XXX

the of strength to operating results continued The deleverage. led

state GCI and year-end capital million. full the spend million net on Leverage In and on undrawn expenditures. is X.Xx Dutch its primarily net fiber-coax wireless, to networks $XXX fiber grant net federal in This to year, at hybrid million funding. from GCI the improvements proceeds was GCI's For $XX credit and as CapEx spent was Harbor has declined revolver. XXXX, the the of project. related received capacity agreement defined $XXX debt

'XX, to We're including necessary the we as and the million, in rural continued $XXX the to view in projects, Net connectivity, Project. approach expect would a last which securing Alaska, network in CapEx with we middle funding. connectivity rural AU-Aleutians mile to expansion investments high-returning for approximately additional be proactive be government taking due elevated Fiber which critical

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

Gregory Maffei

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

Operator

Instructions] [Operator

Evercore James ISI. question Our is from first today from Ratcliffe coming

James Ratcliffe

Greg, X, if I could.

or -- Charter works the you Charter First be but whether in at over the XX.X% you time? place Delaware cap -- the buyback, And that how you of XX% would you're regarding is additional if open raising the it board give all, litigation to flexibility that around to whether selling remains creating does too? any can settling -- moment, cash

And secondly, they put? terms assuming are you talk or we in about puttable pay down, are that fact exchangeables Can factors in of the you in to that them October. the how those refi consider should mentioned

Gregory Maffei

one, I'll give you our second. some Oren, handle the James. color first I'll Thanks, Ben the it to and hand to on Treasurer,

first, think I on you're So right. the

You XXXX, by and lessen table, buyback taking the high-returning ameliorate are business be our bit XX% or assets, that by on relative and nonetheless, down quite productive investing a a more basis, in many to And shareholders, that think more The We given because to some the can the view we've would for us be investments that. cap. other opportunities preliminary note open about many up Charter. fruitful would Liberty, does And that increased that ideas positive it had as -- the open the they us. that able settlement have goes off the do less buybacks. we go in in Charter in XX% than raising we litigation discussions with would to will to

something optimistic So is I it and get done, like to done might in do think we that we'd are could that do. something get XXXX,

Ben?

Ben Oren

a right, respect With to accruing cash. exchangeables, Charter are we the of meaningful amount you are

would say a those I new that new loan think optimal hand, the at shares to this We'd exchangeable, we accessing what maintain with slight exchangeable a cash probably a Charter related Charter that point address margin we preference of some and combination have prefer probably to to between potentially margin we is and the on Charter option liquidity. exchangeable. with have loan

Operator

question coming Credit from is Your from Mitchelson next Doug Suisse.

Douglas Mitchelson

look, had this quite growth EBITDA EBITDA in is the was and equity Charter beat. curious Charter's returns, ask to to that think growth high Street levered right this, hard was -- just year and X% with the but for -- for not single-digit way looking I I

buyback versus your was long-term Charter it's more interesting It's at they're versus on investment which buying just dynamic I shareholder. interesting to that you, The investing outlook is CapEx. back in high So through an relatively Broadband for a perspective Liberty for an investing look stock. riskless as mid- versus And from Charter curious point. this returns a

terms algorithm So were -- ultimately, Liberty you And looking an for in investment from excited as question what's Charter as my you forward? returns Broadband of a for guess few the I are Charter is, ago? you about years

Gregory Maffei

Thank you, Doug.

points, of couple I think. A

X those capital, little that's relatively still about we're -- level, is they're upgrades endorsed agree. business all spend on okay? network, something all stipulate. on and with the enthused or Liberty very the at look, we capital existing the The We'll We'll to existing million board damn attractive incremental attractive First, doing that we have doing. what were additions business, a and yes, we as a

local on with are these high making and set more people on a market network higher We as cases, but of investments fulfill, think state us led bid well in of actually they're give basis. the to than got then and the governments made the really existing which, and set investments RDOF the runway bidding quite government as on do the attractive, a up. rural the not split up broadband by the attractive many return federal pushed process, lot And build-outs whole

broadband I are very think initiatives be IRRs. going attractive these to

buyback we we're long we but away. So but they're worthwhile about to and are that making basis comparing long on going probably attractive and the to buyback over enthused opportunity for interesting, them. offensive the And we yes, the term think Holding go the is defensive isn't for Charter. investments, these haul, an are and out

given indication remains to enthused we're the buy a much for that all basis back And equity going to prospects. that of quite it buying current on have is Liberty how deciding effectively issue way Charter's -- going is take have some remain of other which continued fact about likely exchangeable, own secure. our do looks I and that to we future through of basis the we're issues we're the attacking some So kind these around back

Douglas Mitchelson

Charter see high to you growth the in Do returning not-too-distant mid-single-digit single-digit future? EBITDA or

Gregory Maffei

Yes.

Operator

today Next Swinburne Ben coming Stanley. is from from Morgan question

Benjamin Swinburne

guess around question Charter. Doug's I little bit on a up following

stock is are years. scenario, Is where many obviously leverage. is the growth lower a financial actually there's are Rates see come bit months? higher been you optimal over XX some given slower, you I'm scenario Do but It's obviously guys -- last they You a up. level a for running approach today an quite should sure off is than that John's for there it? be capital around leverage higher there Charter the intensity than it think favorable they're were, has

on if And tied then the market she's curious cable. which unrelated chairperson, that or you're on Gigi Obviously, thinking are seemingly views I something topic, is somewhat I'd was implications order. guys a to But front? short in curious have was any -- perspective on in a Sohn things of from happen you broadband if concerned that lot you about on be although just strong about FCC may got Charter. I the any becoming watching

Gregory Maffei

Thanks, Ben.

that. Look, but public Charter reason more more leverage, are about no not in so on in We're not markets today, up. think equity buying my environment particular, the push leverage I to the handle, markets, in can an where are enthused view, front, leverage, that there's people

only of has, if refinanced Charter at note you getting the is right period. to very floating cost. about which little, increased But in any or You're that look stack debt it's really

rolled So is the de our in is net cost how increase actual relatively is versus existing borrowing minimis floating. given getting much much or how

case I make think as higher, I could you a for said.

I case these markets think I capital fearful. than I -- make are think a for it's businesses think the other harder don't stable. very lower to are

very finance sophisticated worried a have the program, I'm leverage. and We not about

what would environment the note increased to in half with is right -- you're stock and increased the of but And investment, I increase costs it the note was.

in look when it's So view. you still all attractive pretty at that my

or early right, that has maybe I but regulatory, I about would point but regulation it, a always say, navigated risk. around relatively with been the administration We activist spent time certainly, went regulatory 'XXs. through we environment II regulatory he cable me the 'XXs, been tell second was could ever-present If the mean, Title business an Cable from in here, John earlier, Obama since during successfully. the I a that early the on risk And earlier. the existing risk has

the less in aggressive had out voices more Washington, that is more broadband attractiveness a and it's aggressive many of always industry through than I building job there what And would extending free great things now. that COVID that, market are done we do and and are that which think think constantly the see one I about. unlikely vigilant that we are something but

increased don't over So a seen while look time. I a at we've it period as it's certainly risk, an that risk ever

Benjamin Swinburne

should Yes. still certainly, in in at And an might silver fixed rural the CapEx context? lining actual wireless and investments least this help be

Gregory Maffei

think I comments, Ben. good those that's are both --

Operator

Securities. from Crockett Barton from coming is question Next Rosenblatt

Barton Crockett

I is, them, to volatility year. they have the like GCI. mean on I are we up I'd Yes, for looking if Okay. X subs could. questions, wireless ask in at seem to just One some

was you explain quarter. subscriber it this on there? wireless think down what's numbers with the going Can I just

Gregory Maffei

Alaskan I'll it take Pete? want you offer do could up Ron, a shot, to counterparts. we Well, or our answer but first that, to

Ronald Duncan

off. has a of the problems we're what then And this there subs, with it for There's really But business, fall prepaid in due wireless will stabilize And those improving then that number the on -- months year, volatility fall platform strong more continue to And on grow. network, surge the due will seeing I working uniformly the success very to been years, got with XX in far think for industry network in the postpaid wireless the was seasonality. best is you're Alaska. to core that. competitive, up quarters. XG X up the measure overall summer best the believe in postpaid away make the we've been the the We're continue in almost communities. to consecutive the prepaid an some We've both our and platform. There's last and fishing right decrease a having sales prepaid side. our now of which to and we

the you sales. X, factor a high-speed plus products #X of often or test helping always data look by and we speed is X the If the comparisons, ranked that, bundling at with postpaid

Barton Crockett

do postpaid break mean, guys mix? you the and I you -- prepaid can down Okay.

Ronald Duncan

numbers. Do we, know don't Pete. I published that we've those

Peter Pounds

No.

Barton Crockett

we acknowledged Greg, type speculation -- RSM this complex their moving and around distributor programming here be, Charter some an thought, but they've And that which call, Then Diamond you different for a networks maybe sports you some source a right. big a owner noticing positioning that this switching big interest an I'm they've through I toward with cable equity All comment they're presents, as through interesting is of cost a -- at these topic. Okay. we bankruptcy. And think, Braves industry. flow on guys team just the a and and of payment on -- to to news And the little you missed have sides can a the opportunity interest, I both was considered. different of very as a of bit. for

cable programming revenues just reduction you likely the about out? play could present like for to there for I think for cost Is talk the teams wondering to is some opportunity risk in the was sports what Does Braves? this if an you a companies?

Gregory Maffei

hydro question. good Barton, It's a multiheaded there.

inevitable. I think, it think is we've ways for on Diamond baseball complicated. aligned with an see it Charter first, situation it's Charter basis. MLP will I to But the suspect down in try will it That's at reductions. make the And less you'll attractive think I I reductions public, can, the situation those best you time, but over well renews quite very That's hat, terms to investment. recall, and Charter best been just for you on relative continue -- as as in carriage RSN may can and just go I a closely but costs. continually renews looking that don't attractive costs -- Charter see and and as as think putting on

side, compared very and the RSN. RSNs. a including the to have most they then a from a cases engaged the territory, lot the and very RSN My fact looking modest profitable fee -- logical of the Dodgers, the Braves we base more that is, reasons, broadband of from relatively we a attractive, and a or relatively fan payments modest we for certainly their Braves' have Diamond, know believe largest than the are a dozen everything On understanding -- from

filing been to attractive very think So unlikely bankruptcy reject speculated they we for in it's in our or not even are as has event there a Diamond, contract accept not is that will them. because by the RSN a

my a there things, some would will slim-down happen speculation. owned doesn't something that What or successor take RSNs, be a over will I all Diamond takes that of version long a renegotiate Diamond by probably the maybe suspect them term? but their profitable of is it be

Barton Crockett

you mean to the a ownership leagues mentioned you're and of line. MLB, do or something think the I for there's rights maybe? bringing the opportunity I else an you RSNs mean take do

Gregory Maffei

the I see. we'll there to is at, but leagues look some for think opportunity

As just I said, -- it's that honestly, complicated. more than part. speculation it's Speculating

Operator

from coming from is today Michael question final Our Rollins Citi.

Michael Rollins

in call Can just give you you'd you the you some for you earlier us set Greg, and potentially in year Liberty your capital that the characteristics meaningful both been And it preview GCI program there's defined upcoming the mentioned is ACP through sustain after of that will the if later Broadband? secondly, around program at funding share a evolve revisit has for get allocation to could and maturity. how Charter, a this then how curious given of amount your and if of moment? quantification the expectation for so the consideration

Gregory Maffei

Yes.

using think, financing, the if Charter more the it's back once price But but repurchased for Broadband stock. cash Liberty we long to XXX% we'll stock we'll that the that and what on quite back factors first cash get of at what probably Broadband Free free all there's point, -- there's weigh. more clarity Charter price those we term, defined -- likely be around the from flow. we'll buying look stock our what discount I to the the taxes, will through is be what is, that of get buy basically here Liberty is, are flow using possible

that's most I case. the likely think

that as question reasons an helped COVID of and on one of well. you saw as I'll program comment the On attractive ACP, during -- clearly, let Ron, we why that the it,

COVID during the of adds. why net bad adds, debt of or seen such reasons broadband saw broadband the in out think big we've we I -- units, one It's such of debt. we've -- One reasons why the declines seen growth

this them keeping funding funding think a one of track We'll the I in the gets how an much done. going We'll it's There all is. of DC. attractive program. on. been So what lot see see They're are

might you add? what Ron,

Ronald Duncan

norm such industry to it's X.X% by tribal run of the the absurdly a benefited year debt X.X% reason material of low our think primary norm for Alaska, is bad benefit. I We're number total ACP almost We but Alaska, at GCI less were we XX,XXX, subs. pre-COVID number we've in for that than subs, versus and debt of of got we've a In revenue last an bad been levels. -- material qualify -- X.X%. And particularly

getting $XX And we're a subscriber So good lowest it's month. doing on what and them and ordinarily think customers. I our is that off base of end would making stable churn the it's taking

actual continue funding the the of that termination money 'XX. said, projecting the in debt of program Republicans That to 'XX, depends unlikely and the to and political normal that the bad of be we're think, half house, benefits the it's it's levels expenditure go program first because away with environment, but sometime on control It we of ongoing our to the in early when runs more return likely in would out of current ACP unknown, date it is necessary in provided rate. to the

Gregory Maffei

operator, interest that, Thank not soon. both look we're if done. Trip to to much next Broadband. you forward talking and I your with Liberty So very quarter, in for We think you Liberty

Operator

today's Thank you. does conclude That and teleconference webcast.

disconnect your you wonderful have for this time, thank participation. We at your You and day. a may line

Liberty TripAdvisor (LTRPA) 17 Feb 232022 Q4 Earnings call transcript