LBRDA - Earnings call transcript Q1 2020 | Liberty Broadband Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the GCI Liberty 2020 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 as of April 26 2020.

to Officer conference of and like Chun, to Investor now Portfolio Chief Senior would turn over the Courtnee Relations. I Vice President ahead, go ma'am. Please

Courtnee Chun

Thank you.

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

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

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

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

Greg Maffei

questions Good Liberty Brian GCI also Q&A you, and to Today the related answer Wendling; all. Courtnee. will Pete Thank afternoon Accounting Principal TripAdvisor. CFO, Broadband Pounds during Chief be Liberty's have Thank Officer to the Liberty Financial we GCI's you. will to speaking on available and call, Officer,

work like their and all safe all and our support crisis. this thank you're to COVID-XX hard through management of teams hope healthy. I'd employees I also for and First,

GCI, So network substantial new for the WiFi for for begin GCI network Alaskans data on focused turning in Their keeping let providing teachers. offering At pandemic. and traffic. team and have withstood increases connected customers. And students been Liberty. they're entry-level in customers during by been particular, equipment the has strong existing upgrades very K-XX and to plans They me plans free free data has three

Keep Part are with resilient results GCI's of model, the proved across were cable Pledge the quarter carriers other business FCC's that that in nation. Connected general the model participating first Americans in and they and is excellent. business the has

of in As results, service they official announced of Anchorage. a those also the launch their first part XG

of Pounds from results You'll hear some in and about more that the Pete minute. a

match did first PPP So the the quarter turning SBA launch solid to access They lending with program. Tuesday. results to marketplace in to they need under LendingTree, on funds reported lenders to small facilitate businesses

a they're announced Foundation part pandemic during the the So their $X pandemic as doing relief. They million donation LendingTree for through well.

million consumer of facility. and $XX home a was storm effectively Their hand performance relatively their and others million in more credit and have QX, balance experienced do than good on weather liquidity the $XXX the has and diversification capacity challenging. cash They in segment more in space. sheet insurance revolving They their helped position under of strong with many them

offers Broadband. Liberty try students to also quarter. including and people has outstanding pandemic, Connected by crisis. through And this are and educational Americans the prioritizing Turning They over use. and and public from Charter to number to they pledged as opened WiFi help they and connections new up had government institutions the Like Keep GCI, a They Charter small and health get upgrades hotspots services during requests of crisis. medium this educators for care impacted help businesses. an committed those to for

very have last traffic, maximum well this made an and network to capability. GCI, to all-digital despite and they've that remain well DOCSIS several network X.X, perform in investments et network upgrading below in years time. cetera, the increase their substantial to significant over The levels during Like the moving network allowed

was rather They of these for residential but in to Charter strong. example, inherent offers were I at on was due those, quarter educational highest mentioned very history. added net operationally The side their XXX,XXX Part strong. customers and the above, growth SMB the the

X.X% up was adjusted up Revenue and Free cash grew XXX%. was by OIBDA flow X.X%. over

billion. shares quarter, X.X the million repurchased During Charter $X.X for

had On billion with well positioned cash availability the very $X.X liquidity under as at they front, of Charter its offerings and few and weeks in bond attractive billion the is successfully of very a $X.X couple revolver last well rates.

not released for have had Turning have their their results, I'll yet, to but they is call mention conference they which scheduled TripAdvisor. that morning. tomorrow

that. around commenting avoid I'll So

I Certares, of will Liberty announced of the by stock. cumulative -- X% lastly investment joined Liberty Greg on TripAdvisor which $XXX XX the TripAdvisor, O'Hara, an founder and preferred March comment Trip of Certares redeemable Trip Boards. million on

the against new to $XX the investment, We cash under million we variable prepaid proceeds of the variable our amount a amount small and forward loan. on outstanding also prepaid Certares margin borrowed some borrowings forward full from the hand repay and used under

we setup loan investment Certares We for positions the travel to us volatility better have longer and term better This no and have investment. the withstand economic today in space. much particularly the the volatility margin market with

Liberty's Brian I'm GCI it that, with turn to to to going financials. discuss So over

Brian Wendling

Broadband cash held includes interest at end, about At interest million end. since $X.X GCI equity was of that's in quarter the in Thanks all The GCI quarter spend $X.X cash had close, Liberty level. of GCI cash Liberty, billion, today's LendingTree, up $X.X $XXX $XXX value nicely our in minute million of liquidity securities at $XX which Greg. and the GCI an Liberty's consolidated includes talking of Charter, operating as interest and public million. position equivalents We'll here. Liberty a billion billion This

of total billion is Liberty GCI. including of its includes GCI Broadband $X.X end Charter Liberty amount debt finance the $X.X exchangeable billion, leases and obligations $X.X debentures outstanding fully tower quarter At loan margin debt, shares at which a of had billion principal against which drawn, and

as million capacity end available times its was of X.X indemnification on in GCI the Liberty. the quarter of leverage its agreement the credit revolver leverage to undrawn end exclude defined GCI's GCI Note at of quarter. maximum and obligation of the as a compared amounts has preferred that above allowable X.X stock times. at $XXX

over I'll to to turn the GCI's that, With about talk call Pete operating results.

Pete Pounds

Brian. Starting Thanks, with COVID-XX update. the

we're Alaskans As during connected to Greg mentioned, committed keeping this time.

of there crisis. during and Council a have students out and service of help We of Education the offers our Alaska School Early number data Administrators existing customers working and the stay both for to Department connected are with to teachers and new

Keep our WiFi hotspots country, been also includes public which by up fees Americans and carriers other with are businesses, use customers we have impacted late opening Pledge, throughout residential Along the and Connected who suspending for for small COVID-XX. disconnects in and participating the waiving

a state tourism XX,XXX weeks, of by both in economy in jobless been claims crisis industries businesses we've Alaska In just with XXX,XXX. has the companies a and last COVID-XX damage. six oil have workforce significant seen had The over the the oil impacted depressed and the state market. and Small

first While we area or me a concerns revenues did this year. the not this see most that meaningful quarter, in collections the is slowdown in

economic our continue situation to Accordingly, allowance we'll for the the and accounts of impact monitor we doubtful on increased our customers. have

business. We in defensive a are fortunate be to

work our employees in services safely. are home to and instrumental customers Our allowing from

has has and colors. network passed with of flying through Our been effectiveness quite test its a

only known of work hard of COVID-XX, with are a lot and luck, two little have a recovered. on we of cases Based now employees whom planning fully had both

practices We call a retail several new our centers. safe into have and implemented customers of employees number stores to keep repurposing including,

are upgrade. to now enhance We're complete. band XG X XG on more XG our service. the and making will the are faster competitive to Moving led close speeds as LTE to to XX% XG band X progress Anchorage on also improvement market. in the Customers has position wireless and seeing in materially our continued upgrade bars deployment

majority to the Anchorage We to the end year. are of track vast on our sites of upgrade in complete by cell this the

Now, of a appeal have I'll That What in $XX previously unrecognized a improvement. quarter adjusted the played benefit the year XXXX. makes. $X the had from our results. $XX we million first talk million net this through we of year year million the of $XX difference in win million. and took which million recognition OIBDA we Last RHC includes, year role first the in lapping from There revenue of last was in a a $XX major QX February, reserve quarter and

year. was still our growth of million due there to Lower XX improvement last business and However, $XX materials the a revenue, from operational restructuring in our elimination and the benefit time data

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

discontinue crisis. selecting and after the services that paying a some value data we I us excellent cable X,XXX also modem the after cable will provided we stick free of customers promotional promotional wireless those Consumer an X,XXX During when period, gained service will modem from expect emerge our service. with higher quarter, our customers hope but choose promotional that customers customers due increased the to to customers with experiencing revenue plans. some additional

business, growth health due and Over The was in care RHC revenue growth largely after GCI eliminating million was about out-of-period benefit. the up $X to education X% to revenues.

spent due quarter We we the on We Finally we relatively $XX challenges. for how a light planned million the were long in depending COVID-XX than on spend as little the year. the logistical are in persist, and CapEx. of originally quarter less may typically first challenges CapEx quarter, the to

is project on the band X for capital However, Anchorage track. our year in XG wireless primary

hand now the call back I'll Greg. to over

Greg Maffei

Brian Great. interest to audience. our appreciate Liberty Pete to your TripAdvisor. We and to continued in both GCI Thanks and Liberty and listening Broadband

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

Operator

from Thank ahead. you. question Evercore James ISI. [Operator our at Instructions] go now first Ratcliffe take We'll Please

James Ratcliffe

could. Thanks GCI One for if on L-Trip one I taking the on and question.

generation you to looks On from highlight like have What why It the GCI are drop was XXXX. front, those? down they subscribers. cable on understand XXXX And free that did the the modem they non-revenue year-on-year? I came

Thanks. front, us can on give chose just options you you context and other Greg dispensing what L-Trip you that at? the And why looked route around some

Greg Maffei

you Why have Sure. don't You Pete. ahead can that and go start?

Pete Pounds

Yes.

year-over-year? on So was little It question our subs breaking a side. was on was up the -- data

James Ratcliffe

Yes.

they non-revenue -- Sorry. Yes why the generating subs which were year-over-year? wireless down

Pete Pounds

Yes.

customers like had have to money thing the giving kind sort get put iPad the rest cost you sticks laptops much or the started did promotional broadband that, we to when them they were to on that of, of the start disconnect those. and and we in a promotions away the basis mobile of industry those So your

that James? count, And so a it's hit. it's not subscriber of revenue loss but a Does help

James Ratcliffe

Greg on context... L-Trip just And Yes. and

Greg Maffei

in we unfortunately Certares caught got continuous -- we On downdraft. yes, really a

had price We We with seen we variable when a substantially reduced company a we full that where have -- out spun Liberty forward. had this Trip was had margin previously loan.

price out paid margin profits forward and dividend to of one-time spun the received stocks the and loan took – variable that that on we and Trip closed downs. from some proceeds the we the took As the from the down

and or remove find the We margin Unfortunately, down part period loan. we downdrafts of alternatives put paid with quickly our any that loan were capability to margin the in to late loan margin exposure. hustling March

We we had – we previously did – discussions and number firms we Certares strategic talk a private of equity Trip other and think kinds chose that about partnerships. Certares had because we with to both and had of

and have we we because able to of portfolio really were the structure us. that a expertise we they they up highest. be potential travel an extensive the and chose value also to and was able Trip Certares for Trip their quickly at synergistic in think them to helpful and come building And in two for therefore were worked travel Liberty that with And move

James Ratcliffe

you. Thank

Operator

our Michael Rollins We'll ahead. Please next from go now Citi. at take question

Michael Rollins

questions Thanks afternoon. good if and I please. could, Two

monetizing is becoming would there getting that from of is you're the the a related these upgrades The opportunities the XG current on And space you you wireless relative and frame revenue look mentioned as and more at you XG the one that the competitive? revenue incremental first benefits upgrades way about network. to that

and And any meant secondly Liberty you for what look at thoughts and GCI on market just then for Broadband? just for the it's Liberty volatility the current how discounts NAV

Greg Maffei

Ron on start first. Pete let or the I'll

Ron Duncan

experience the we're band radio take the throughput by what stab their a all five very concert piece. with a doubling XG cellphones people XG upgrade both radio, available substantially the to is new in and of we that at to average phones. XG implementing the bandwidth the XG to Basically XG a seeing I'll total tripling on and full expanded XG

the of a will the back have performance moves marketplace you and in pack the terms XG in And from it churn front of help that us even in the device. of if both network gradually So share pack, marketplace. reduce the us we to the gain think only

So substantial our competitive it's position. in improvement a

Pete Pounds

they trading discounts of in the some NAV tightened the end crisis March. at still are and for look liquidity gradually cases They've certainly a dramatically but out you discounts. expanded if And in most period towards blew at the

that's frankly term Look advantage back. long to opportunity that we either I an over puts Liberty GCI think the business take by Broadband stock discount for it the as so stabilize of and Liberty and against

We have stock both back both at companies.

at issued puts have Liberty We Broadband.

of the it. opportunities that market are advantage use, All by we and I mispricing those take attractive the of believe are think trying to we'll

Michael Rollins

you. Thank

Operator

our Citi. Please from We'll now ahead. at take next question [indiscernible] go

Unidentified Analyst

Just following I due? the how you price, with margin Liberty strength loan the on last would given size that the comes the Charter of mean Broadband question. increase at be when willing to in

Greg Maffei

time. to be could we just Well – we at probably it any clear increase

the that's compared charter the is margin the haven't amount at investment full And Broadband. point our of terms drawn of – available Liberty you as us. out size in low to balance to We rightly

this having volatility at as loans. Live our at margin Liberty margin across cautious saw Trip discussed. around We That just portfolio been loans we're Nation in on environment both we said, and

So on but we're look we'll take cautious the right to pay time for advantage attention that. of that and

the results. in positioned Charter's is believe well in are we Charter market. very We confident very

growing. You are how at subs broadband look

You the dramatically. continued per the how share the relative free driving for reduction, decline reduction moment CapEx, subs, flow optimistic Charter. share share count video the on all cash – reduction quite expansion remain the look margins of at is We in which of continued

Broadband advantage So of Liberty to Liberty. we'll try GCI look and take at and

Unidentified Analyst

you. Thank

Operator

Kerrane go Please ahead. at our taking We'll SunTrust. Michael now question from last be

Michael Kerrane

taking my Ron about question. for question for Alaska. Duncan Thanks A

the the service Sounds the potential I like the it right great government's by a of as dealing oil and might declined impacted who was spending about time you of are at with price of just to relates far price at home in But economy. as if comment what was guys Alaskans, reduction are state the projects and on as you position state-funded could is exacerbate government wondering for providing goes, that level cancellation impacts austerity on lot programs stuck lower there of COVID. state economy the a talk now last oil.

Ronald Duncan

in XXXX. for meet the of year through cutting then, further the fiscal state obviously impact that, approved post in both price went really and next the the some more double will the current between low next oil budget of pulled down. which whammy economic cutbacks. and the budget of the The caught runs year. see to news color already by XXXX have oil We've Thanks. back it's little take and I bulk is very gets of the The longer good on shutdown oil. COVID a a legislature of and and while state impact road a we'll will July state home term the run it unlikely with price we're but spin until long The there'll having July be of the the lot done It industry a suspect to rubber And lot. year recessed

be some it had recession coming happened would instead from been as we've this three it as another two the year to last the space. been now the of for two in bad But us until it's persist oil for to years So things in it that ago. or quite rationalize out have years won't likely looks like smartly

Michael Kerrane

you. Thank

Greg Maffei

Great.

question. last our that's think I

quarter doing safely participating call. thank all and said operator done. we'll we're the before. much. today's with think you to as you great want And if you not I crisis next I teams all So, for through Hopefully, Thank speak of I the of that in work our to thank COVID very for

Operator

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

disconnect. now You may

Liberty Broadband (LBRDP) 9 May 202020 Q1 Earnings call transcript