LBRDA - Earnings call transcript Q2 2022 | Liberty Broadband Corporation

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Broadband 2022 Q2 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].

conference recorded, this X. reminder, a is August being As

conference to Courtnee go I like the ahead. over Please would now Officer. turn to Portfolio Chun, Chief

Courtnee Chun

Thank you.

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

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

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

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

Greg Maffei

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

K's. LBRDA capitalizing the July, looking repurchased X.X the million in over on our price spread been We buybacks Liberty and billion. were $XXX A's of additive cost of per X% were on share X shares period we Charter. These of to look-through from this to at XXst on This share these Broadband share Charter, Broadband, Charter for to includes at about per Xst and purchases a share bought shares an $XXX.XX. per $X So a have LBRD May compared we the NAV above average first Liberty between X%

received sales Over back share period the proceeds same Charter we of billion to $X.X Charter. from cash

the from itself, a broadbands adjusted strong of and Organic was Charter at the financial with XX%. XX%, EBITDA it XX%. Looking results, relatively Connectivity was were a revenue Program. not Affordable disconnected up XX,XXX up customers me. you exclude That disappointing quarter if X% Excuse XX,XXX

a recent XXX,XXX lines. Mobile and now The early at want new has XX% challenged than with Charter revenue market clip mobile had opportunity total remain very expand in investment wireless Spectrum year-over-year profit environment represents activity a revenue. promotion mobile and players. I stages. up remain to revenue and and is real the of over at we X% continues reiterate more and to fixed move wireless memory we've increased certain by does low with in rapid

strategic technical Charter Liberty at and the As with markets. edge far as very itself, of comfortable majority we feel vast in our position

further believe revenue opportunity the We proposition competitors. and a builds, will versus as a solidify which opportunity will on well value world mobile outlook, as the are new including our advantage, growth broadband still optimistic competitive we and extend help is

especially recovering theXXXX levels.. the We're both in and quarter reached seeing exceeding results Goldberg, by morning We who call CEO, to our July. the had with end the recovery new the on revenue caught is strongest the auction. and the were TheFork, rate up the Consolidate Matt which have Xst earnings for of levels Viator XXXX Turning U.S. in welcoming European which TripAdvisor's. started hotel Trip, the the

build M&A the second the in repeat attractive marketing costs. are ability breakeven if We relatively Viator even to basis low believe quarter believe large in very the the appealing. of and business a we economics revenue reached off

acquisition marketing retention and for strategies, well new are We brand as as Viator. on focused customer

TheFork European returning dining diners its restrictions levels. are exceeded booking have also and XXXX restaurants. eased to

the with TripAdvisor will better believe which new three announced reporting growth across growth the our Consistent segments, track results, our investors profile performance respective businesses. of stages of We to progress better and maturity areas. the above this reflect our allow

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

Brian Wendling

you, Thank Greg.

had yesterday's our shares GCI. close held cash equivalents Charter share at of and based billion. cash at was August million as includes cash price value $XXX $XX quarter At held Broadband investment end, of X $XX of Charter Liberty The approximately directly consolidated of million our which on and

X, Skyhook, of our we in consideration million, includes $XXX that's $XX subsidiary, which of May for On million escrow. sold aggregate held cash,

is loan capacity total during our At preferred above debt and our the obligation Note amount quarter $XXX and a billion. million. quarter end, available repaid the principal of had Liberty on million Broadband $XXX the stock. amounts of exclude We Qurate margin indemnification Charter to $X.X

results. flow. million during quarter. quarter Subsequent second cash $XX $XX to on down million was Liberty Now additional for using solid GCI quarter. with strong Broadband Cash $XX million quarter dividend end, the GCI to had Broadband offset an and generated a a hand. from paid the looking good GCI's by cash Company at to CapEx free operations cash

higher defined OBIDA mix million Revenue times it's Leverages under in credit at revolver. a the capacity and in margin second its agreement up of $X Adjusted due GCI revenue. XXX flat. undrawn quarter million X.Xx quarter was was better has end of was to

agreement noted prior does the XXXX seeing XXXX, positive is of effects adjusted we which roaming the are effective create at long-term fourth new a in As comparisons negative but of periods. OBIDA in quarter revenue some and year-end, to

agreement our as and which free offerings, offset data video our meaningfully Additionally, roaming not broadband decline or flow. were new as impact our video growth margin continues the well revenue. of the significantly in impacts business business This but in shrink wireless revenue, to impact business cash by does our and consumer

Over Germany by in in gig its non-Alaska believe speeds remote of of country. sub-adds GCI year. Alaska. the the in miles Last including completed fiber XXX the gig wireless of the of cable subs mile the many year deployment the year. arrived to to and X quarter are of the speeds added We The will AU-Aleutians of X,XXX X,XXX that these GCI modem revenue-generating the some directly games journey these announced plus has XXX across launch gig communities speeds and expecting end is internet subsea bring in for second last fiber our broadband in has revenue-generating over to project company communities on X the fiber most attributable customers, this residential Alaska. XX,XXX from the week, X

turn the over I'll that to call Greg. With back

Greg Maffei

Thank Brian. you,

the I New some November remind save York. Thursday, Please who XX, be want of may you not to will in our Day know Investor date. Annual

details to Additional We soon. will provided see be you of many hope there.

We also appreciate Liberty Liberty your and continued in Broadband TripAdvisor. interest

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

Operator

course. you. Instructions]. Of [Operator Thank

we'll take go Ratcliffe and first go with ahead Please And our Evercore ahead. question James ISI. from

James Ratcliffe

on M&A, in ones strategic Can for about to give you a assets, recently competitor I in wireless I of for for what a interest also cable increase the attention same And terms M&A fixed as and uncertainty read seems looks you're and and what now us at saw of on you like XX be Greg, a also the GCI? in Is in we two in sense cable antitrust one relevant opportunity Greg seeing there the seeing investors? consolidation? And of Thanks. of at discussion amongst lot the the moment. Ron, time, significant financial greater it for Ron, environment the your general. could. potential if regulatory or right have cable are lower related environment,

Greg Maffei

So I'll go you, thank first. James.

could the to level. them I think attractive series our that consistent has ability more our value perspective of customer be bring our efficient of be price add run of at nationwide more and scale on assets are a synergies, in ability a There effective basis and terms been consolidators on to a ability a touch, right Charter's we consistent.

think I that's changed. don't

potentially I It's scale FCC. we about think look we is very the deal. really But there. what a obviously out you there's could that's on of stuff on I the The at down, regulatory you're make and buyer. lot the going more a believe which obviously cash a come in think we to a interesting would and unclear been something environment if DOJ, of some what's prices have opportunity defend talking FTC, have changes that were of -- any of between

So to comfortable, could discuss but if rumored. certainty, Ron? with it's a been publicly those we'll hard predict optimistic anyone transaction we see, do to I'm

Ron Duncan

reasons. principal Alaska. aggressive roam our provider us fixed operate Alaska. lower is you. the Thank XX Alaska to for probably answer own to the They who The is fixed in in no two in wireless network facilities short its most is wireless in doesn't on relevant T-Mobile

So Alaska cover connectivity long retail important have other because still from there's haul does in Alaska. the not spectrum state. the Verizon, no not we T-Mobile C-band principal did C-band direct competitor C-band use and The for auction competition in satellite

the doing some using significant have millimeter dense Alaska So to which auction fixed access, make They locations Verizon the for doesn't principle any nearly wireless are in FCC but and frequency, are C-band in that wave, C-band wireless from is is excluded fixed the competitors. access. Alaska enough millimeter wave

and don't So expect haven't anything we front to. on that seen

Operator

go ahead move from and Barton Securities. with Crockett we'll Please And question next go our onto ahead. Rosenblatt

Barton Crockett

into the desirable ask taking combination would Is still you seems for where might back about but potential and wondering you're they're we've buying and of settled what a think steady of what Liberty characterize pattern the wanted about this think now? perspective interesting. be Greg, I'm possibility and or you just that evergreen thinking buying Charter a a stock you're the not your could stock kind just there I about point? some that back, of at, pretty current It any equilibrium. question. to like from seems is Broadband question, bigger some thanks the how perspective But Charter. the that pretty your be like at merits of happy kind to of sitting Hi, reason remains kind

Greg Maffei

right, for think the that attractive you're I equilibrium us. is

We the continue advantage net of taking than of share at Charter our to discount, that rate of taxes. because per increase faster even NAV

oversight our governance better and by and and We the being our understanding our on also involvement there. business role the of side like

Will I we Don't today be remain always But So positive. a to a that. on we are something think flexible know, contemplating condition? forever it change. it's not

advantage GCI Expedia, never. think transaction, we whether a DIRECTV, we be call; it time, take I of lot are thought right the historically to when the of say the it never you was on actions earlier so have taken

Barton Crockett

much more the the barn for that the and just your competitive hear I companies And something kind so that the have not and if about talk the really that to you hot companies issue in time? could reorganization telecom industrial with these might then, about done of where come another that that each And would and are about a contemplated is involve And that over Or what back? course potential evolution that about telecom day think ask kind for mergers I as wireless companies Okay. once is even perspective space We Is companies, that cable an days. don't that scenarios. of as Charter left cable be companies do note other. of question, some industry. potential mostly was of button in large curious and

Greg Maffei

Yes.

own we're progress wireless there or the bought national in difficulty been broadband one making the our broadband, have offer issues don't broadband we national be attractive, for to player. have wireless combine the the look if relative is we road territories the or think us if a the at and of some in were unattractiveness down be those merged very case which convergence wireless, wireless would on of logic the -- I could we where to you

but together. and wireless broadband Maybe both We there So good hand we people down combination prospects hand our active we isn't the broadband. bought somewhere that not attractive imagining That's extending say wireless in about our change our that there footprint. on road. our solves where might capabilities, been they're And in a cable in feel to us. like problem, very for converged like have the really broadband in combinations our

Operator

our from go ahead. ahead go last Michael with and take Citi. Rollins question we'll Please And

Michael Rollins

comfortable Two in morning. you made opening majority strategic Greg, good of you the talk position. you're comments your and first, about and in comment vast the Thanks technical when markets, that a topics, the Charter's

terms ACP, be And is systems you Just more I'm getting comfortable? Ron, something ACP easier this And toolbox period you wouldn't of you what tool in gears could maybe curious, the customers the to share risk about for characteristics markets haven't a of it during program instruct which recession does this then what switching in to tougher before have able as experience, how would your qualify? help the you for customers of to the had or to state you just Thanks. could some? curious try being and be be of in if that

Greg Maffei

go first. I'll Yes.

that. competition? -- more strategic I think better. not misheard feel enough and think we do maybe was where I the and articulate That's happy DSL you What technical I better share Yes. against most places have or like that other we like I position the is our less fiber our me. gain I'm Obviously, where and technologies edges

non-fiber but well against we competitors. against think I competing obviously I prefer compete fiber,

Ron Duncan

All right.

the I'm done, Were ACP, ACP -- sorry. Greg? been you the On has

Greg Maffei

and Yes, was. Thank I you go ahead.

Ron Duncan

Okay.

emergency want ACP is And in very, powerful, has success to tool the, off. the subs for very broadband grow industry. of ACP from a slowdown in one the think spite broadband program. continue in Don't been I very checking. you the program cut our rest subsidy reasons we protection powerful the the that to transferring of to one of is Just prior customers of GCI. The

a last would've note We that as I down is did in a of would been Alaska this quarter traditionally growth land. whole tribal have good spite denoted as quarter.

we've -- the for aggressively It a of into to for instead customers So the our customers tool we wireline and converting very wireless lifeline subsidy over on the program. it been us, lifeline qualify important including subsidy marketed the ACP. $XX has marketplace, very, $XX ACP

on a wireless benefit it's So for both us the and side. broadband

would for probably customers material because swath the it most a any eligible are is they're typically recessionary think difficult ones ACP. by in of to or covered that And the effect economic a churn there's that very I offset And a it environment. broad

particular a of consumer as So the a strength kind program been our we of six last it's on the for see it marketing key component side months.

Michael Rollins

the legislation be that follow-up. Does Thanks. for other any one or proposed And investors Broadband implications have should Liberty just mindful tax GCI of? specific either

Greg Maffei

believe want Tim to have Albert who don't anything? do we but or there add so, I

Brian Wendling

the No, they're that room, not. in but aware not They're not we're of.

Greg Maffei

Yes. Yes.

Greg Maffei

I much to summer. and not Thank was see to sooner, you you you in in Liberty great our many with November TripAdvisor. at think a We next hope again very your hope Liberty Broadband last that of Investor very Day. you if have our for your question. speak of continued interest quarter, Thank and much and rest

Operator

And with that call. you that, Thank today's your for participation. conclude does

may You now disconnect.

Liberty Broadband (LBRDP) 5 Aug 222022 Q2 Earnings call transcript