LBRDA - Earnings call transcript Q1 2024 | Liberty Broadband Corporation

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Operator

Welcome to Liberty Broadband 2024 Q1 Earnings Call. [Operator Instructions] As a reminder, this conference will be recorded, May 8. I would now like to turn the call over to [ Claire Adam ], Senior Manager, Investor Relations. Please go ahead.

Unknown Executive

Good morning.

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. filed could uncertainties, due the SEC. including Forms and results of a most or and XX-K and Broadband risks those XX-Q events differ with to materially number recent Liberty Actual TripAdvisor Liberty the by mentioned in forward-looking in Broadband or Liberty circumstances change or or for of date statement we expectations to undertaking any or any measures Broadband, summate any or financial call, call, is Liberty only to which TripAdvisor's conditions of TripAdvisor will expressly revisions including thereto Liberty non-GAAP as OIBDA. and with updates discuss forward-looking based. On today's any herein Liberty change [ reflect Broadband regard in on Liberty speak certain statements such to disclaim events, statements this adjusted These the and any contained any obligation ] along release GAAP Liberty and Schedules required Information prior press earnings Broadband's be metrics, and the are can as well website. periods in X, with regarding notes which including on X releases available earnings reconciliations, issued as the for today the preliminary in comparable definitions found

Now I'd Greg Maffei, Liberty's introduce like and CEO. President to

Gregory Maffei

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

But ownership greater on also We this going into of to proceeds, due proceeds. we Charter's buyback the debt to have uses summer, sales early fully a future remain last we the the in that largely year, the Charter's in and evaluate somewhere beginning purchases gone to majority continue focus we the LBRD do diluted we So receive under near which term, grants. I resume Liberty expect will best we do Broadband. will the year, will XX% in expect to annual compensation historically expect have Similar with reduction. cap,

have buyback So the us term. of you might near see reduced some in pace a of

expiration Looking been historically high experienced rates, in loss, mortgage across XX,XXX ACP challenged EBITDA among X.X% remain things, The company historically solid with the have competition, board quarter. at experience activity growth rates. first the churn industry a continued move and lower reduce the levels. low Internet Charter growth the other elevated largely from in subscriber given, at at Charter and does across quarter. did first early from itself, the interest adds the upcoming net headwinds

anytime The spot the nicely. achieve down opportunity, We're Internet off scale. promotional bright industry the and We mobile that service largely to versus are well. Mobile, investing and which the pressures, year is due in million management, accelerated mobile Charter facing working while revenue prior comfortable management quite and can X surpassed they'll business throughout expense growth achieve quite XX% EBITDA to perform and total program despite do the mobile continues business One to expand the roll we're the see versus going churn and improving pleased prior is our as customers, EBITDA is with to the economies upgrade achieves performance, seeing lines year. we increased market and year. Spectrum stickiness with continue of lines,

Charter mobile of program X program, a to Assist Internet As free including the not retain light retention is options unfortunately, a customers, was renewed. ACP Internet XXX ACP the many of In you for that, officer year. range of product offering know, the of and Spectrum

of a Looking leverage X% the the target briefly Charter, toward year. at move the maintaining this X.X% balance while will we at sheet leverage expect buyback midpoint to do

parties. outlined the We may a do with XXD with at to third strategic this continue you we that transaction seen of briefly which have discuss Committee. Turning TRIP. morning, TripAdvisor filed discussions alternatives Many Special ceased

or terminate. to executed will documents definitive able are this not comment be on further unless discussions We

had Looking priorities Travel muted experiences TripAdvisor geopolitical call pressures. performance good to revenue on [ was at for in driven but to Viator well. experiences per this AI strength it click TripAdvisor also conversion saw guidance high did itineraries record app itself offset and higher volumes. is downloads, pricing is At itself. bookable TripAdvisor, start growth its consumers by the remain and and TRIP's hotel sustained generating continuing of quarter, meta bookings. a morning. embedded the tool and despite brand very activity lower addition XX% offer inflationary more first by scale average app ] user.

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

Brian Wendling

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

note GCI. OIBDA at both in in other were or driven in impact in video primarily -- Looking does offset in margins flow. flat decline GCI's revenue. revenue cash the the and business consumer declines does free other by video and generate that by business We'd adjusted in though the data revenue declines quickly not meaningfully Growth The side. what revenue not first quarter. was revenue. was

the strong $XX adjusted revolver and consumers for subs And using X.Xx. of million last letters net quarter added GCI GCI facility down revenue-generating decline GCI's charter credit from million net to under margin down quarter Broadband. million cable $XXX undrawn with of capacity, the pay distributed to turn its defined X,XXX was loan $XXX cash Subsequent the therefore reclassification with neutral X.Xx revolver on Liberty as with of call was letters revolver. leverage its back and year, and of under used GCI's just Business. over wireless GCI payment, of agreement funded credit the during customers. were were I'll a hand quarter had GCI Pro cash forma by end, leverage proceeds small dividend broadband XXX modem $XXX Greg. to saw capacity its its that, to credit. end, undrawn million These the of the delivery debt under At drawing by net Over operations. of for from credit. And paid

Gregory Maffei

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

Operator

Our today [Operator Swinburne of question from Ben Instructions] Stanley. first comes Morgan

Benjamin Swinburne

here you I'm that remarks the Extension of generation. if look kick argument. here. you that probably like don't didn't know any could prepared is might I better rates right Yesterday, on relative stock Senate, Liberty there's the agree, introduced of not, the would for -- minute curious you flow have this the in to curious think that mention I'm last front, save probably price make deleveraging buying the in your an maybe I if be senators kind cash and if on group ray Greg, just what equity bipartisan a there a Charter, interest your a And be some obviously. free the markets any anything questions and given couple company's what about you don't when there lens you on then credit ACP. of was on Charter. but an on now of back ACP -- position if Act Similarly, hope stock know than would value

Gregory Maffei

know extension. the have Don't on bit little I much to only it. about just I the [indiscernible] say to ACP heard comment beyond a

is there might certainly are extending think many and get but -- tied it consensus Republicans it, we I among on Democrats there issues that seems always up there's certainly while therefore, and hope, also to some be a it. both there why can't count is for procedural

its ] I middle the to both at think, [ to On to that heard level flow you to have may debt the charter ] our more near that down to the range. Broadband. have through comments get Charter that use from of cash noticed to leverage also may term, X.X of question, expect think expect that closer ] Liberty buybacks the you X.X [ [ I And our from reduce we we the in take X Ben, leverage

the think show we're the to can overall degree that levels at while you, company we're these have feel heard that sites the going We at I support think they to and the some just least of companies. marketplace do leverage. So the interest, to of reduce cost I work responsive both debt, both higher to

Operator

from next Jeff of Wlodarczak Group. comes question Research Pivotal The

Jeffrey Wlodarczak

think to larger your about do is on going footprint or also most It's thoughts, Charter's ACP those of on -- repurchases? the expansion I'll and hit just EBITDA of has share that keeping does cheap maybe idea second think discount in freeing then do happen, up sort it the Charter be most And third wondering about the telcos how ARPU of it's you as down Charter. some assuming Charter to that with the valuation tools if and seeing telcos to been. quarter cash slowing focus is a Greg, and in the not to its ever successful as subs.

Gregory Maffei

wishing the given I and under question, other the look, think towards but more attractive versus to general free that they them flow have are the question opportunities programs, these The about of being are see for -- market line on and Jeff. Thanks move the alternatives beat slowdown, they given thoughtful cash extension. the

the not which be declines have revenue ASP to there had mitigate So given of are customers very and Matt programs average to I should approach. a are think thoughtful, likely what able are what a many in programs have do customer those I balanced rightly think we how ], Chris team have achieve. [ and things attractive we we loss. they big there I to think ACP, are and or and per do bunch anticipate, On

Operator

next Barton of Rosenblatt Crockett comes The Securities. question from

Barton Crockett

bright is Greg, to Okay. some growth TV some be put the cable there's kind programs the of the up on success on and right the Buy industry broadband on and which mobile that. the of ask Charter certainly now pay X by I at moment. free in with wanted And headwinds been to X arguments the or a seems the of question, of thoughts you, spot also about Get great conversion

it's years kind to Just quicker really I'm there's still to growth your material, opportunity more Do just in to providers small, but great mobile mobile pursue dominant pretty you're you thoughts old where companies like cable material the scope fashion Do that? mobile with in telephone do are of be interesting. they there plain were you invest think to the not past. sentiment. Greg, wondering terms make it of future that there's an not investor more So would a that needle think moving story, your to in move given perspective, is that from

Gregory Maffei

Thanks cable in aggressive been Charter space think for the note I the right Barton. mobile pursuer you're to really Look, companies. the spot. among has that the And that question, bright most has a been

So more just their stores. into I'm not sure how reduced there's they gas. foot on The coming put the in -- general, I activity think much can

just of that All it's a -- slower there's been process.

probably take do remain see future of they to share. right getting And to long as able their and mobile continuing they're mobile on Charter be push continue out that success are they'll I to can bullish as I So they quite product growth much in how now. and

Barton Crockett

an ask Okay. there cable this opportunity that And opportunity the there cable assets given kind the up and just generally, Liberty gears Is switch to some door all Broadband could closed at moment? is I of for thought Broadband, look Liberty valuations really there? for companies over then on place, the depressed other at if rolling is on

Gregory Maffei

are or that charter it's we're trying but synergies directly. I one attractive I that would I never. -- given through Charter are in general, closed, that most you say given think But an synergies. we'd that an to Barton, think now doing the or pursue makes with don't can't appetite one think Charter quite it Charter be better Charter's than door off cases, There could it number there in the general, for be more us even appealing but enormous is opportunity, is or But has be for in available reason I sense that aligned likely. another less

Operator

next Michael of question from is Citi. Rollins The

Michael Rollins

prioritizing that and do think on discount the are assessing. that another driving Just currently of factors Broadband, discuss shrinking the is use that discount the the the can regarding you the Liberty And that. methods NAV discount? broader What just do you you possibility are way Board to want that question to you're that

Gregory Maffei

Yes.

pace fewer participants On are bit it's is market mitigation comes at or incremental that. Media the Liberty higher Expedia There and borrow SXM a the talked DIRECTV, those there what that's with cost that's we by with some We're opco And what generally, stock. we things. really I buyback or the that have with number think eventually [ do funds spun in a spin would of There's talked peers we've combine discounts and not We've repurchase done we slowed more fully are how we're ] past. cash we combine which what but doing about arbitrage buyback, if usually about up our do share on holdco that here. our attractive. of all key end fewer somehow ] the Charter's Obviously, doing, it to risen what fuel form that of though of the opportunity. did El valued on also. flow to where with these be with and [ itself. free the in doing we Expedia with we've we GCI and primary or the get did discounted judge, and LSXM get discount we already a little ultimate what and find the for

the the And that's interim, take and primary So to in ultimate try is of advantage means share it. repurchase resolution. the

Michael Rollins

is of Broadband mindful terms the or that there be investors resolution, significant that should case OpEx of in amount of of? other And in considerations a synergy Liberty

Gregory Maffei

eliminated suspect, effective efficient overhead, be of more transaction. be and any elements more a which GCI synergies Broadband GCI be do in would Liberty a I more stand-alone that between has GCI's Well, do of of than to some Charter purchases ability there, programming, kind can basis. effective And and on would any corporate probably would network purchases

synergies probably yes, So are there. there some

Operator

of today Cove last from Capital. Bronchick comes Jeff ] Our question [ Street

Unknown Analyst

paramount you be what that's really think shareholders? where is up I talk And not to L from in ] would the that interest [ my going the resistance and for relevant? about like control do TRIP. is, call, I'm have to is quick you -- question Or a a, taking taken negotiation the buying all situation Trip meeting

Gregory Maffei

I I enough say committee. on about discussions with or paramount had what or there. the only what's the going not can't productive on I I know is can analogy not. special going I we read. don't make read as

Trip about have We really seen there the continue we've I kind tension I premium don't think I any further TRIP. the versus that. to in that think don't discussions. tension is Fred, than of Liberty And can't comment

Unknown Analyst

stake offer Paramount, where, Redstone would obviously, and someone reference. shareholders other buy would I my have to all like to anything the be

Gregory Maffei

thank In and IP to last we treat all haven't big not and once you disadvantaged. shareholders. With best if we forward all from sure point, you for mean, again, transaction sought premium operator, audience Broadband speaking worked thank make look possible again try and interest general, listening some level have thought in And Liberty sooner. just and try our I to and And fairly that and we're make Trip. think quarter, for that, position, we you to the with next Liberty hard we done. this I to I not certainly And your shareholders

Operator

This concludes conference. today's

may your you this at disconnect time. You lines participation. for Thank your

Liberty Broadband (LBRDP) 8 May 242024 Q1 Earnings call transcript