Liberty Broadband Corporation Q4 FY2024 earnings call

• On November 12, 2024, Liberty Broadband entered a definitive agreement to be acquired by Charter. The transaction is expected to close on June 30, 2027, and GCI will be spun off to Liberty Broadband shareholders in late Q2 or early Q3 2025.
• GCI achieved record revenue in 2024, with data revenue driving growth. Adjusted OIBDA was $362 million for the full year. CapEx in 2024 was $193 million, and 2025 CapEx is expected to be $250 million for rural connectivity improvements.

In 2024, GCI achieved record revenue exceeding $1 billion. Fourth quarter revenue increased 5% and full-year revenue was up 4% driven by data revenue strength. Adjusted OIBDA decreased 4% in the fourth quarter and was $362 million for the full year, with revenue growth offset by higher SG&A costs. In 2024, GCI spent $193 million on capital expenditures, slightly below the prior expectation of $200 million due to delays in rural fiber projects. GCI's net capital expenditures for 2025 are expected to be approximately $250 million, primarily for middle and last mile connectivity in rural Alaska.

• The acquisition by Charter is expected to close on June 30, 2027. The spin-off of GCI is anticipated in late Q2 or early Q3 2025.
• GCI's net capital expenditures for 2025 are projected to be approximately $250 million, focused on middle and last mile connectivity in rural Alaska, including fulfilling build-out requirements of the Alaska plan.

• Competitive risks: Starlink and other satellite operators pose competition, especially in rural areas where fiber outages have allowed Starlink to gain ground.
• Regulatory risks: Potential changes in government subsidies and BEAD rules could impact broadband build-outs.
• Economic risks: Volatility in the Alaskan economy, though historically countercyclical, with risks like tariffs and potential recessions.

Q: About GCI Liberty spin-off timing, competitive backdrop, and subsidies A: Spin-off expected late Q2/early Q3. Competitive landscape includes Starlink, and subsidies are crucial for capital and operations.

Q: Macro question on subsidies, economic slowdown A: Alaska is countercyclical, Starlink may qualify for subsidies, health care subsidies are material but low risk of material changes