LBRDA - Earnings call 4 2023 | Liberty Broadband Corporation

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Operator

Welcome to the Liberty Broadband 2023 Year-end Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded today, February 16, 2024. I would now like to turn the call over to Shane Kleinstein, Senior Vice President of Investor Relations. Please go ahead.

Shane Kleinstein

Thank you.

Before we begin, we'd like to remind everyone that 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 Forms 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 is expectations only TripAdvisor forward-looking reflect for events, These discuss TripAdvisor's Liberty updates date thereto call, of Broadband disclaim Liberty or disseminate or on statements any any in to or Broadband obligation revisions of financial Liberty this forward-looking Liberty as change the any and contained call, will change herein regard any conditions OIBDA. adjusted which any in measures we statements Liberty including non-GAAP certain to any to based. On circumstances Broadband, or speak expressly such statement and or undertaking today's Information well earnings earnings metrics, comparable including found Liberty note with and definitions can available are required release X press Broadband's prior GAAP issued in preliminary website. on the as be and and releases as X, for reconciliations, Schedules periods, which the regarding the along today

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

Gregory Maffei

Chief Thank Officer, Officer Pounds you, good speaking Broadband's Today the and we will also GCI; GCI Shane, of answer will Duncan, Liberty also Principal to morning. call, Financial CEO Ron questions. Brian have Pete Wendling; on of and Accounting and available be

be answer related questions to to also available we TripAdvisor. will During Q&A, Liberty

the January, on repurchases proceeds million sales We November received the I'm to of grants October. -- XX%, of spent our from Charter So to end the do the Charter exceed in repurchases. Similar with $XXX requirements sales the of last or $XXX we resumed plan early $XXX buyback And Broadband and under the next of XX Charter resume few repurchases cap, into From shares be to repurchased slowed -- begin cap down we Broadband. Liberty diluted the repurchases million months. Charter proceeds buyback. million of share LBRD back to to going Liberty sell we proceeds of not using from to -- XX% that we Xst expect our their made Once XXXX our repurchased. LBRD ownership year, fully therefore, in the

will certainly a the Looking over Charter -- will increase from near-term believe the broadband fixed Disney which do wireless, increased competition were among higher demands operators term, but noise lessen limitations. at their we over competitive will growth. consumers, continue favor the itself, assets bandwidth quarter have also that time. Fixed a capacity clear the consistent acknowledge The wireless the headwinds XXXX in dispute we there long speeds. have delayed we issues at third do And will the believe impacted of trend in fourth from the impact felt end There's unit been on was been quarter. of quarter, which to and

long-term shareholders. are We

converged offering promotional are highest over mobile who We that million adds a churn Charter most Charter -- X.X the consumers. Spectrum the are year. One of fourth add making we provide for net is was at speed periods. investments during from the no over growth churn. prices the and line the next in XX% in XXXX. able periods the uptick reducing and rolling and converged returns quarter. mobile nearly cohorts off Charter to a That's will assets few And growth to excellent saw drive growth is prior initial accelerate will generate confident the the of the continuing competitive strategic

you expect, the As Internet-plus-mobile customers. are customers stickier would than Internet-only

footprint. on that evolution per course ROI about low-cost and don't replicate passing. over competitors at remains the beating news, is positive targets. $XXX believe Charter We their upgrades rural can expansion network Another fast, ARPU with penetration, The upgrade at path

has management levels. outlook materially the BEAD step to XXXX outlined, CapEx normalized expected excluding down is long-term from to As

filed touch further the me by on the unless were XXD. definitive documents those our discussions executed acquisition discussions to Board authorized comment on to are we We We an discussions, are amendment Liberty or not and Trip. terminated. will Let engage in

at and XXXX. had particularly seen and on TheFork margins. We've operating up QX revenue. and great exceeded cost-saving are In There successful itself. half. XX% were half a in seen year. nearly over -- actions, XX% revenue And the in Looking less back almost they repeat renamed was also TripAdvisor And TripAdvisor experiences which Viator XXXX the to half now allowed better-than-expected us there outperformance continue earlier margin The was with marketing at And move of rates was expansion TripAdvisor at expectations. of brand strong being at prior brand EBITDA performance. diversification TripAdvisor. XX% the improving anticipated. the results, QX than have reached brand, revenue TripAdvisor than the break-even TripAdvisor. We've to customers. profitability Viator its efficiencies recently level are were we that Viator increased of among comparison, the XXXX

over from example, results. And discuss on travelers and exceeded that, Management financials. strategic I'll to Viator, are For long-term the first booking for customers opportunities gross we with and think the Brian we GenAI-driven optimistic enhancements engagement product about the to growth, turn to QX TRIP time. repeat at tools and value it like new those drive focused is

Brian Wendling

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

conservatively updating are We to dividend Act. Reduction to received sales minimum the charter does under the book for rate annual sales DRD, our low not Charter guidance on assumes our deduction, XXXX This tax double digits. tax Inflation the for the apply

book pending. I income book of minimum XXXX tax years in future rate for the and tax, paid higher in current XXXX, not this note the specific the while treasury this from year. a we're any tax for prior minimum making guidance the will offset carry beyond with timing to accruing extent are income regular more that Consistent additional exceeds tax forward guidance to years, We is providing tax impact. tax regular IRS

Looking cash record Liberty of at the GCI, to generated $XX adjusted XXXX was million free year and a good and the OIBDA. solid distributed during dividends revenue Broadband year. company for with GCI flow

and and revenue revenue by OIBDA revenue, the declines flat quarter, year, respectively, In was fourth the X% to offset and $XXX business $XXX video adjusted full revenue, other decreased and X%. by grew the data For performance in in driven million, million adjusted OIBDA strong voice. primarily

costs government expenditures was proceeds million above GCI high-returning of XXX business primarily GCI defined we largely the of million growth, the necessary X,XXX continued with net be has important from GCI to incremental down offset X.Xx While SG&A. Operationally, continue rural for funding. including funding. And facility. In credit $XX and are in prior and rural in at its leverage million and securing by projects. to note critical back under is year-end, spent connectivity an This additional proactive modem credit expenditures with our Alaska, due was projects middle- of XXXX. in and investments federal approximately to network a subsequent expansion revolving agreement I'll grant is data cable most see under GCI's to to consumer call to last-mile Taking markets its timing capacity certain subscribers undrawn fiber revenue and XXXX added on that, year-end, million $XXX turn received We'd state its capital in paid related X,XXX Greg. as Bethel that GCI to other in this revolver. AU-Aleutians receiving in consumer in and $XXX net proceeds. expectations over customers XXXX, strong declines wireless approach in increased grant expected capital connectivity GCI's

Gregory Maffei

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

Operator

questions Instructions] come [Operator the Rollins Citi. with Our Michael first of line from

Michael Rollins

questions. Two

comments each whether to the program are on price to sell for stay into investor when secondly, not interest change or you Charter's implications needed the thoughts buyback long-term given will just then Liberty's for a shares to the ACP Charter your GCI being cap? Charter? And current expectations be what does share the of possible in And discontinued? First, your Charter, can under as XX% and on the

Gregory Maffei

ACP you talk about then, to and come expectations. buyback. Thank ACP the impact then you'd talk the potential question. to like and address impact for GCI. my I'll and about Ron, back Charter, I'll to maybe And And

to our actually of are the among ACP majority support guess and So wooly be of whether received it many a certainly or a the for states, enormous is and which world not is in congressmen proceeds. senators, many ACP an of red renewed amount into of Washington. There them knowledge, will

for assume something beyond were the for that some grown. a is bandwidth, Charter Washington have to crisp demand We but customers prior path in the have the of the only my ACP is at a unknown. is is have clearing customers that for there optimism, reason capabilities. The to -- customers So that's Many impact, that program. little ACP requirements think bandwidth trying forward there

of may that the that why is isn't One is customers not want complaints which ACP. is subsidy -- Washington helpful some among because us necessary for continue of funding, securing in most but against also reason And it. it will people getting broadband our customers bandwidth. not it's even vote a absence program, some That, in this ACP of the indicates be in is it take that correct course, -- may the to a

would cessation would it's how to hard you positive margin. Ron, ACP or ACP the have, would it's have on So want a not the impact to clearly but much speculate on anything? eliminating add of

Ronald Duncan

Most debt impact Just customers with. broadband were begin discontinuance expecting in minimal a probably anticipate to an GCI. little we churn. in at of budgeted from slight increase on And and we're customers a the of bit ACP uptick bad an ACP briefly, have

ACP than expense wireless being for the of the and create shift think they side. of to among the the and to because on will And effect bill. But to was expensive build ACP that at I -- more than do reduce half broadband the wireless GCI-plus who a the off wireless least should the be their AT&T perceptible struggle on in the I day, end of hugely for us ratio Verizon ACP. upside at wireless us the ACP Verizon from to subs wireless expensive I there's market phase doubt opportunity may with disappearance for nationwide, AT&T goes competitive offerings, churn customers less an ACP providers. of customers doing grow of of less believe the our opportunity offering the as

the on more side. the wireless wired impact see we and So of positive very from it expect out coming side little

Gregory Maffei

all are I'd that just likely and have Spectrum wireless Charter One with the to we're our same add on the that, affected impact statements those program. pushing how or about impact

amount share that. And the price buyback to on buying the LBRD to issue, the also interest sell to we're Charter, not the discount the use raise because proceeds think for the underlying a of at long-term Charter look, On LBRD via debt we is -- substantial from at LBRD at -- capital you -- to incentives believe, I reduction today price to Charter's to of repurchase and us of cap reality or and majority leakage. it's shares of than the about LBRD, the set continue use repurchases. case, We've continue in whether discount I the our much same or the and is larger therefore for so the LBRD the the Charter think, raise capital own cap the to back seen rather raise question buy tax seek some spending the our have because still see LBRD on than we in

So I'm our it program. changes actually not sure

Operator

Securities. come Our of Rosenblatt next Crockett the from questions with Barton line

Barton Crockett

media a I on in of appropriateness skinny another of new big the about companies for nuts an some bundles and or are then from and streaming bigger-picture emerging terms of is the bundles your I question, guess Greg, perspective. or X things. in Greg One, picture of thought just numbers. legality the kind The the bolts on that kind antitrust curious was

a specifically, offer antitrust the include I Comcast from been about streaming network on kind have some skinny there. not? are Bro.s, Paramount there? Similarly, Warner bundle So you the think bundle discussing lot same services of There's believe there And Fox, or some NBC, combining antitrust, to networks, perhaps questions there's do kind do that a sports of at video market you Charter have And efforts. rights and prohibition I CBS. streaming the the questions that content of FCC Disney, think, ownership the their any broadcast guess and dual reports from would

an feel later ends And kind you about come up affects then just how the that a issue with of you do question. I'll numbers think small So this? question. being that's that And So antitrust? big-picture do back

Gregory Maffei

I'm Barton. big only Okay, the picture. good on

for of without than own. The those -- a long-term as So that for that observers as to dug is how -- And also But I risk. -- sure and as and I've with there not created making the bundles, And think are an about for I'm firm bundle shift. question knowledgeable that my a have we Charter, heard on are antitrust we you really drive skinny I packages I've both uncertain thank is. bundles demand enough starting that. distributor positive skinny are we're The continuing opportunity broadband implications. opine. not margin about and potentially -- sides of that to view into it I'm

think seen it certainly Charter full of made I it's and -- where have of in evaluation a go. the all So we -- while it at will not

the both as economic it positive drives and me to as which On something opportunity broadband. an margin, feels

Barton Crockett

to just that. then then the on shares. tax sure be I numbers the for of just million comparable $XXX on comparable When wanted I'm this is And commentary Or that And the clear. question. year, is a on CapEx Charter make say would actual There's you your million? and expansion Great. $XXX number something sales different? the rate to Okay. that

I'm us not Just there. a I quite mean, number? just a rate give you I assume what can for followed sure like should I tax --

Brian Wendling

Yes.

tax... the On

Gregory Maffei

or -- go yes, Brian. you. Brian Ron ahead, Thank

Brian Wendling

giving That's it's you just million this yes, We're digits then Barton. a number, the right. low the at CapEx, And $XXX double $XXX on point, comparable to the million.

Operator

come line questions Ben next of with the Morgan Swinburne Our from Stanley.

Benjamin Swinburne

I so are picture, you. these big think for I think

Gregory Maffei

you. those me Thank Come details. Don't scare with on, Ben.

Benjamin Swinburne

level. question in still the X.Xx you asked on right John ask the I Charter, which back leverage I is why November is

is, think Charter thinking they're where what spoken, I has I your on now, at market know answer obviously, -- the least for but what they on stock.

a broadband actually that's then So in leverage and is Do it you I'd on think prepared looking Disney that where subs. the has back their on be on think objectives dispute, the that if you worth disruption outsized And the agreement been business. video what extracted by net of an was some you optimal. And there's impact the the curious mentioned weighed sort versus Charter and in Charter from lower business? scenario that of your again, stock remarks adds have

So just wondering reflect that. how you on

Gregory Maffei

rates movement with mean. lower start open the are for has course -- The of scenarios and leverage right what question Well, shown high I'll in maturities, some -- general. question, I moment, certainly in team obviously, better certainly, sense merits. likely the with the Board, that Charter that of But in we're interest have weighing asking most multiple the the scenarios, relative we're shareholders management leverage about leverage. It's X.Xx the is, part. confident at we leverage think, to question pretty off or a the might the have given the we length even the shareholders that that's holding the we in responsive maturities, diversity our the we're the under And

views their think -- for can speaking think the I them, but holder of probably correctly XX% house. XX% I for say holder I in and -- relaying advance not the for the

you agreement think number. from we're to pay certainly received would that to at the attention, pushback that X.X% degree I in think was I don't massive with the we've yet. proposal there want it. And that we look But right management's shareholders

are a into rolling net we a a of bundle. more is on we're that with leverage. Disney, long-term a I a to whether a happened the than occurs, than make get growth But that by align the questions exacerbated it if quarter when by be having be how role think these and received feel -- same with I a can what's price perception of aligned think in but that still I It play distributor on may And -- a doing to Disney. and we right you or of them, not like that the margin. rather leverage, having same -- on marketplace we're occurs we where think bet. think And competitively the stock sports the have long rather function it we've or role think it's argument stable long-term the having business and impacting bleeding as people function. management partnered the can it's And I the ourselves and quarter in broadband a offerings stands page. having how the I is view, video just to look, second we strategy where over-the-top the It's for term. I

Operator

from next line Alex the Nordhagen Our questions come of with Balyasny.

Alexander Nordhagen

question think at plan to to now. really And you'd around just the to of Trip what discussions XX.XXs, coupon, any I kind that market the that coupon not? plan any I involved, to the cash half isn't first low acquisition transaction? was the March second of callable are sort 'XX, on be disclosed obviously, deal would if then with to right one, I theory, is balance base need in had have assuming put from the that X with cap respect need on the given Certares place those, would But the stack. in there or had was with the Liberty case a

Gregory Maffei

our the Do Ben, you want are there? you on touch plans. to --

go evaluating. all. going Ben, want you add? would to we're not to think But We're what I reveal

Ben Oren

Yes.

strategies repayment maturity. different But not at for into the think or Alex. an are time. this probably we a think I go to we're those securities detail either what of going of monitor regularly, it extension We about addressing

Gregory Maffei

I I further, or say I comment about the just or and I -- is made the only XXD disclosure we'll the disclosure offer being is until disclosure with today make think we're really what comment wouldn't on under beyond think And rules. Certares but who think, we obligated, any approached and what to we said I'll not whether made reveal we're further going anybody else we the

Alexander Nordhagen

a may ask if then. I And follow-up Okay. just

callable being to any stock X weeks month, depressed you away, the intention With have next call it? do from

Gregory Maffei

as until I we at our we're if we -- We're we comments alternatives. But going earlier. to looking to things. not all all time do, Ben's refer are these not think disclose our make I'd going evaluating would that such and We're move, to not we intention. --

Alexander Nordhagen

All right. Appreciate that.

Gregory Maffei

Sorry to at unsatisfying, know least I but tried. you be

Operator

last will Rosenblatt question Our of come the with Barton Securities. from line Crockett

Barton Crockett

Greg, I back. took for come -- So big hopefully, opportunity the as this picture qualifies just just to you.

that that of is a but now before of longer that pretty are fixed have would of becomes the source out curious, wireless competitive that cable. feeling Just low-price over long of Can kind there win you think and consumers ceases constraints. competitive become any for stretched is to be there's thinking of back statement be sticky fixed kind in a -- wireless a you term. service, your I for the sense do and there's mind more I it lot pretty just technical how won't say but

timing here? So is what do you the think

Gregory Maffei

certainly say wireless need. for way stated I the fixed Barton, that I you -- believe the think wireless home isn't would they fixed competitive, premise would that customers is they I are that differently. say would I answer there initially the

be less has attractive or users set time that as performance broadband grow performant. network more less is becomes demands less as will FWA and as potentially over that think reduced and interesting customer I

binary saying bandwidth. relative thinking consumers increased not the more relative the attractiveness It's relative and thing. the of among for a a network for I'm attractiveness it's that bandwidth, and needs relative I'm thing. it's So need relative

to there's it you that shift I little, out I the of it seems your our amount Thank they're T-Mo constrained, quickly We've think less how is go FWA. I rate you what in then that your for about you for when today. to not when pretty has how has clear what but call. slow over and mean, not to in is, our -- that, they're T-Mobile increase the down. is. question But this Verizon will end time. And argue, would can willing today's FWA, Broadband operator, capacity limitation, been about judge Liberty a which for about in those they're judgment with, that of what favor to is on plans capacity and seen and we've on lot clear begin at margin reasonable less make an has Liberty if already that last recognizing been expectations of slow you already look prices their been suggest own And clear. seen a starts I could all run unlimited Thank the space. Verizon for believe with joining. question all TripAdvisor. we you interest that many

Operator

does Thank conclude you. today's We participation. teleconference. This your appreciate

disconnect may Enjoy this time. lines at your day. You the your of rest

Liberty Broadband (LBRDK) 16 Feb 242023 Q4 Earnings call transcript