LBRDA - Earnings call transcript Q2 2024 | Liberty Broadband Corporation

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Operator

Welcome to the Liberty Broadband 2024 Q2 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded today, August 8, 2024.

I would now like to turn the call over to Clare Adams, Senior Manager, Investor Relations. Please go ahead.

Clare Adams

Good morning.

XXXX. like statements everyone the within Litigation Act we'd includes this Private begin, Reform forward-looking certain the of we to that remind call Securities Before meaning of due Actual TripAdvisor SEC. to uncertainties, events with those the XX-Q the XX-K in recent mentioned could Broadband filed or differ by including a of Liberty risks results number and Form and most materially and Liberty statements change the conditions Liberty disclaim date or or contained and forward-looking such obligation circumstances herein of call, regard change as any to any statements These reflect based. or disseminate Broadband in expressly speak Liberty thereto is with and expectations revisions any forward-looking on to Broadband events, Liberty undertaking of in TripAdvisor or to which TripAdvisor's statement any only or Liberty updates this any any

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

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

Gregory Maffei

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

under repay we offering million of Charter the the We So $XXX proceeds X.XXX% Margin existing from repurchased million beginning and exchangeables. July, to issued million exchangeables. $XXX of with our loan X.XXX% first Broadband. our Liberty used that $XXX Charter In

our XXXX, maturities through spread the also to extended maturity loan XXXX XXXX. We've and debt margin now are

our sales We at expect June. these Charter's a buyback in substantial Liberty actions, of interest into we result Broadband resumed savings. As

retiring debt, to With we continue proceeds, focus. is the that will and prudent about our approach current take a

evaluate also build as cash Charter will We buyback share those repurchases. LBRD from

the of they did solid growing the They structure basis to year strong with the the net continue and The of did the the the of well had expense ACP of quarter. job expiration prior They backdrop quarter of EBITDA sacrificing without XXX due underlying but Looking a in lowest were the quarter of the X.X% that XXX,XXX ACP. against the to net working manage subscriber trends competitive a reported to and great the with program. Charter management of Management second cost results in subs, reported June. Charter improvement. margin broadband loss versus impacts the majority in growth Broadband growth. improve point throughout loss those company, realization received

for ARPU Mobile The achieved plan. reported value reinforces is the more to Spectrum households chose program of easily phone Mobile milestone driving the upgrade additions. its net anytime program increasingly Charter to for also profitability the The offering. multiline being mobile that line time, XXX as very Plus important buyout Unlimited effective. mobile customers is an move

year. growth the back We of the continued to expect half EBITDA

in the see to The cost the We highest effectively. continue and see impact we the expect the do transaction political Charter that support to ramp year. spending and quarter in is date AC margin will third but to mostly some managing fourth, initiatives the believe to

X.Xx to the during the We X middle Charter the to to Charter range continue of performance. move X.XXx. quarter reduced throughout of the expect leverage see leverage mobile to year. continued the also closer to And expects strong to target

Trip. Liberty to now Turning

executed or or continue will and not comment until able documents be terminate. we unless further committee, TripAdvisor special discussions to are to strategic evaluate We the alternatives with definitive

at itself. TripAdvisor Looking

competition. the continued with weaker SCO and and on During in SEM TripAdvisor increased both Meta Hotel from demand structural challenges it quarter, felt pressure brand

work However, opportunity activity share there's positive Trip's and a strategy early app than from available. take direct hold. year seen of monetization We've where XXx launched ARPU results users Members more tool the last platform-wide are channel to using higher planning a have growing beginning average.

is strategy app on product legacy time drive designed The a to engaging mix -- differentiated over to mix features. and focus value, offerings experience from shift member

are and summaries hotel monetization review booking opportunities and better for and much AI-powered into upgrades example, effective app directly the For user us. more

other active saw Trip, to Viator the and Viator who both rather to rates GBV doubling and competition contribution into the app growth. within which at business repeat log higher Looking led of bookers a -- mix. conversion, profit TheFork increased the their better

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

Brian Wendling

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

in other offset Looking quickly our and rural professional school decreased in $X GCI. service increased and OIBDA by continued Adjusted costs million care SG&A due as was higher and well as over revenue. partially Revenue declines data customers, wireless from million prior increased sales, the particularly labor-related operating costs year, $X expense driven health fees. to at up strength by to

revenue-generating cable by program. driven Over year, adjusted saw mostly declined of subscribers of subs; from for X,XXX, by expiration consumer the GCI the ACP the the last GCI reclassification modem X,XXX decline Business, a wireless

GCI its Charter GCI cash to therefore, with These on pay Liberty credit and X.Xx letters quarter, At under distributed of X.Xx $XXX of facility. quarter neutral GCI's the undrawn Broadband, down the million drawing covenant at in revolver. in million revolver, end, funded leverage hand were had net-net the to $XXX net sufficient We margin the stipulated credit. with were, leverage was used of and net to proceeds cushion relation under Liberty During loan capacity maximum Broadband. to threshold the

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

Gregory Maffei

Thanks, Brian.

will Our York. be Thursday, Annual Day XX in November New Investor

move to see date. at we a the at Now location, you Lincoln the Save Center. Jazz new

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

operator, that, line questions. with for the open And

Operator

questions [Operator the Instructions] Our Rosenblatt Barton come line of first from Crockett with Securities.

Barton Crockett

perhaps I business There them wireless of interested I'm were of curious GCI can a thought a One couple about and in. was longer-term address Charter. things is if for kind See the we at then here.

a the purchases, is if may GCI really what update kind us is focused of subsidizing So to cycle of we what on any the iPhone bigger presence you GCI? that, the And XX? my in question if of kind that you this, into cycle what device AI there with be just have size on for degree on of go upgrade expect terms also thoughts about

general mean, wondering, doing kind progress of transition just time, the that And on bigger to of broadly, the that's more I going that is be direction? so, then could quickly? at in today. there? might But how imagine for the the you that Any And just and I road over Charter device about guess was kind and compete obviously, Charter, are Charter thoughts if agree the not Greg, more as if any the carriers over wireless they Greg, that there one will in basis. could over slowly, toe-to-toe you subsidies to to level want get that the steps and cable I major wireless peers

Gregory Maffei

do Ron, take Barton. part Thanks, of you want GCI the Wireless to that?

Ronald Duncan

MVNO not And Sure. a an GCI operator, mobile is network that. I Barton, like can obviously, do Charter.

of Alaska one this mobile of percentage businesses So we We're have market We've different probably much network. Charter we consumer somebody and X businesses XX% along along not we've the at else -- share the a our much it's overall, cost market got EBITDA than for also a consumer higher got with gross a We're for because margin core structure. it. does. point paying And and own data. higher

As we not with at or material majors have match principal much up competitors, there. and the the our such, Verizon pretty in AT&T, be least player is market a to competitive

last subsidies to we grab we're Alaska reason. but whether a be of result as and us turnover enhancing anchorage little got subsidies stability. to X-year losing have evaluating trying would network we now, customer given features, the market Greg, more That's that keep we'd right a AT&T, fall So if portion in device does. a with competitive us We've in or bit We're some wouldn't relatively more them avoid order to to choose extended subsidies And the device AI out weren't low the and the a to low contracts. an device that X-year think a we of we've when there's this to share. for maintain to in AT&T AT&T a us to If but the most be we In match allow and it of little little statewide couple from XX% of the lower much cost there's refresh contracts may People cycle, figure device share. phones, cycle. more particularly pretty able better you. subs accelerated years, gain to the an margin share. back Apple opportunity base,

Gregory Maffei

Ron. Thanks,

you space many of kind as for to have. So competitors local subsidies know, not I in rightly that has the the offer Charter think, handsets other had

savings Spectrum the as Plus line, the the post but of mobile your obviously, largely compared I the well attractive the relative very charter for of even free having and of is alternative. being subscriber a Spectrum that's think that, because attractive pricing offering, year particularly Plus to

Charter needing subsidies to will because people -- combined So go us I can't Charter market how have see don't I they're kind or see predict offer offering with offering. a the but that entirely, other the don't attracting you of

Operator

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

Benjamin Swinburne

I action perspective And JV, your competitively Lumos or with we're U.S., guess, -- pretty And sort of your going seeing some Greg, which Charter acquisition I the telecom right this competition should just to just is get particularly competitively, how fiber both when over converged on time? thoughts we and impacts kind the for level headwind Charter, that be potentially far Metronet. a you in of now? obviously say, multiples, think and wanted generally in that of private I apart the T-Mobile's to of and of are public think is something whether market about on

Gregory Maffei

for Yes. Ben. the Thanks question,

are network attractive that Charter broadband has about is really offering is I fiber -- of need And alone offering think mobile talking fiber pickings big They're you When the validation fiber things look relationship have that with proposition. increased big or players easy slowed in were of general, in entrants. doing, And kind who of done the activity not build-outs, many these is players and players the a of a those they're though, less a because activity that fixed in some they're the mostly or competitive is seen -- of lines whether for down players and fixed its seeing, and levered broadband T-Mobile less the its edges. more around having time at because broadband mobile actions MVNO upticks. combined it's just What from of the of attractive. being line. are of seen a very markets, not we've we've the interest we the

of it's the with think I attractive. like JV nimble people a validation is a foremost, around off And that for first and Charter's that strategy the and they're So provider line is more to doing. T-Mobile MVNO, a be which then fixed much edge it's very

Benjamin Swinburne

it, to follow-up view I debate. And That's What's sense. one of Makes phone had Ron was the cycles? mentioned AI that going sort are anyway. since here? Do the a your taking to big another just little ahead Or on he ask acquire? eager you maybe something going of think be on of market's are itself opposite optimism this you the sort consumers to to is I

Ronald Duncan

cycle there's merited, the app in there the than that but around, haven't really iOS upgrade expecting been more we're think a many probably earthshaking part last optimism because in I time bigger-than-usual to is changes cycles. this several

difference reduced significant, all upgrades. we've definitely between that and seen XX the wasn't and XX So

to X cycle, years in we've As from something said, customer close turnover seen X our to years. average the average I our go

over that good how really time, But even it's We're it. we'll think more of I the around enough more last people think the product at try AI this increase is whether don't will time, regardless XX% I it's there's assess create buzz know. definitely the real to people buzz, inventory. not for and and more may trying interest much consumer how that prepare if a try a that I

Benjamin Swinburne

that referring the time Last to? being XG upgrade you're cycle

Ronald Duncan

Yes.

Operator

Balyasny final will from line Our of come Nordhagen questions the Alex Asset with Management.

Alexander Nordhagen

instrument stock. of I question And end a its to next A current regarding XX% versus dividend have will past the to current the the of respect at this and preferred accrue expectation Series specifically penalty year TripAdvisor. rate just X%? March simply the Is outstanding that's Liberty the with remain

Gregory Maffei

Yes.

we're about discussions think in might Certares -- that we're with said, I transactions TripAdvisor as with we've and arise.

comment TripAdvisor and So result. is there it's that -- between Certares, All I I can will on tell that the discussions can't be are ourselves. you whether active

Alexander Nordhagen

Okay. may. kind share ways I Great. of just Trip the holding that somehow Would if stock? of And just you a the shares follow-up, on like opinion the Liberty TripAdvisor that TripAdvisor's structure

Gregory Maffei

speak I at stock. would in Liberty to potential That's yes. Thank Liberty to think probably you with Broadband statement, Liberty you next cloud on if the I your fair our point, -- not and for audience quarter, TripAdvisor issues listening this TripAdvisor. the interest are probably sooner. hope TripAdvisor's around a We a

Operator

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

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

Liberty Broadband (LBRDP) 8 Aug 242024 Q2 Earnings call transcript