LBRDA - Earnings call transcript Q4 2020 | Liberty Broadband Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Broadband 2020 Year-End Earnings Call.

During the presentation, all parties 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, February 26. to Officer. conference like Chun, to now Portfolio Chief would turn over the Courtnee I ahead. go Please

Courtnee Chun

Thank you, morning. and good

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

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

Greg Maffei

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

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

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

yesterday's sales on sell and note, to share their Liberty we look-through close, Broadband While March average yesterday's this attractive buyback Charter's expect the repurchase over we expect in year and period ownership monthly with our an $XXX they Charter into you to we the price Charter basis. long-term of going billion generate LBRDK price cash on so this is bullish. quarter, in Charter a remain a $XXX, cap and well higher closing north [indiscernible]. beginning represent of do cadence, our X.X% share to tax in versus buyback In of may per historic XX% forward than $X exceeded Based first to about for

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

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

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

all, So all pretty in good.

in benefits This beginning. Plus, Plus more kind more giving et TripAdvisor. the investors It's by about direct-to-consumer keep the as is for compelling led for best through XXXX Maria The deals soon XXXX value at experiences and about excited roll beaches week. Currently, leverage benefit, in travel To that you'll well perks Cuba, Beach colder in in Cost announced this positioned with well TripAdvisor expect provides access check travel VIP returns. also controls demand right Over the in offering this travelers and there. Beach continues revenue in Santa taken market of it first the U.S. in be have operating Australia we travel to as the services, Whitehaven let's space. of the cetera. in-destination and time, out is Trip Finally, TripAdvisor to as Liberty we benefits, in half adding is enabled to first turn we We're subscription beta, its Trip our and out things, the of stuck on to some of hotels pent-up grow. TripAdvisor addressable perks, amenities what and airline XXXX. believe thinking is climate the enormous. perhaps just envision

revenue visits with it have talk a in monthly financials. to small a XXX converting We of recurring traffic for and continued and opportunity long-term me stream even Trip. at over implies let to the XXXX, to Trip over And unique that, million percentage turn growth about that Brian meaningful

Brian Wendling

capacity cash at After of GCI's GCI year-end, Broadband payments cash GCI consolidated Broadband GCI's million of had end, on a $XXX from from defined billion. has allow subsequent relating to Thank received equivalents GCI's of government was stock. years cushion million line 'XX the to had its covenant year-end. These credit capacity, has principal to close investment and under of X.Xx. in funding includes maximum of GCI million which 'XX. Liberty a loan has the meaningful Liberty billion, of sale. and down leverage of $XXX Broadband you, GCI. our pay line Greg. million and million GCI credit credit its X.Xx, cash payments the a yesterday's at amount when following Broadband These of undrawn this RHC $X.X and substantial large exclude At $XX borrowing debt of was debt $XX as end, to of Including principal Xx. total of of pay de-levering their end, $XXX Liberty $XXX had agreement, million of Charter million. by $X.X preferred year-end Liberty the amounts subsequent Value quarter impact $XXX obligation Liberty was the At leverage, $X.X Broadband credit line of as on amount down quarter of in billion. approximately indemnification leverage XXXX quarter undrawn

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

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

filed adjusted We of they time to Strategically, be built results the margins. the to XX-K Operationally, competitive additional revenue on will sold items year, network, and had nearly materials also quarter later a XX% and business overall that out our modem focus onetime favorable revenue favorably XX,XXX growth. discussion There's their network revenue the and the GCI's XG had XX% core for was their added $XX Fourth they experienced million TV the in impacting impact impact growth first significant. for quarter broadcast of subscribers reduced business cable advantage, and Alaska Alaska's which [indiscernible]. today.

In was the from definitely a midst XXXX time. and a the number, rate strength that the matters, received While performance RHC of gives January trying for impacting to the the of years ending in SEC providers payments and SEC working bottom that we generated to XXXX. the certainty news, those positive Alaska from truly on by rates are order funding with for of 'XX. was there in 'XX macro more favorable currently solid new in results we some year there trends top On funding team June

and the call expect We collection to shorter forward. Greg. that, back to between have turn going I'll over service period With a delivery cash

Greg Maffei

to Thanks, Brian, I'd Liberty Broadband in for questions. audience Liberty that, and operator, listening our your open And continued you the floor for with and interest like TripAdvisor. to thank

Operator

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

Michael Rollins

curious I'm Liberty Broadband. on

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

Greg Maffei

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

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

Michael Rollins

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

Greg Maffei

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

Operator

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

James Ratcliffe

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

Greg Maffei

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

Brian Wendling

Yes.

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

Pete Pounds

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

Greg Maffei

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

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

Operator

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

Bentley Cross

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

Greg Maffei

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

Bentley Cross

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

Greg Maffei

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

Brian Wendling

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

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

Bentley Cross

I ahead. then And -- go have

Greg Maffei

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

Bentley Cross

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

Greg Maffei

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

Pete Pounds

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

Operator

Harrigan Matthew with next Benchmark. go We'll to

Matthew Harrigan

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

Greg Maffei

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

Ron Duncan

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

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

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

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

Greg Maffei

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

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

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

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

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

it So pretty for I a good consider Charter. result

Matthew Harrigan

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

Greg Maffei

make. you point the it's think I

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

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

Operator

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

Unidentified Analyst

questions. couple a have of I

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

Greg Maffei

customer's taker, contract under is at we we've what leave we road work got at the and at I I've something plans offer. our a the and big ultimately, and most share a share write you today. grow something do been of X/X of if in done a ask or we But market. is volume In is best of final better job goes continue to -- of else think and We've largely the upgrade, general, analysis on done X/X yes, the really when -- you Charter parts than the customer our out up seen, we gained if where market price as what not low-cost Tom network look, have that can where rather we Charter by plan uniform, been perhaps the to And nation. than than here. is lower a we'll and they're that taken over at really some and we going kind would and believe that share not players Rutledge, available say chapter among Bible the less Charter price dial rolls great price have has not It's that we're need we're turn think plan of looked switch and to share he time it's management It because Yes. that, we cable offering really in so of perhaps even more and some service provide when positioned. rather others but across price the to I'm take everything to large I In new team the than a of relatively also dial doing hard down where market have because going the turn it the it the up has taker. faster the X%. anyone the are well increases, has general, better volume a price to

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

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

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

Unidentified Analyst

[indiscernible] I Can just follow-up with

Greg Maffei

Sure.

Unidentified Analyst

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

Greg Maffei

Yes.

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

enthused pretty about we're So that.

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

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

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

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

Operator

Our last question [indiscernible]. comes from

Unidentified Analyst

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

Greg Maffei

second I'll the take one.

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

Brian Wendling

that. for go you Pete,

Pete Pounds

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

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

Greg Maffei

you. thank Yes,

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

Operator

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

Liberty Broadband (LBRDK) 26 Feb 212020 Q4 Earnings call transcript