Liberty Broadband Corporation Q1 FY2025 earnings call

• Acquisition of Liberty Broadband by Charter was approved by shareholders on February 26, expected to close on June 30, 2027. - Liberty Broadband is on track to spin off the GCI business this summer, with GCI Liberty planning a virtual investor event prior to the spinoff. - At quarter end, Liberty Broadband had consolidated cash and restricted cash of $565 million, including $149 million at GCI. - GCI's first quarter of 2025 was its best quarter ever with revenue and adjusted OIBDA growth. - Consumer services were partially disrupted due to the Quintillion Fiber failure in the Beaufort Sea ice, expected to be repaired by late summer. - GCI refinanced its senior credit facility in March, providing good liquidity. - GCI spent $49 million on CapEx in the first quarter, with net CapEx for 2025 expected to be $250 million and elevated in 2026. - Work on Universal Service Fund matters, including Supreme Court arguments and potential legislative solutions. - GCI completed connecting Bethel with fiber from Anchorage, launching residential services in May.

In the first quarter of 2025, GCI had revenue of $266 million and adjusted OIBDA of $111 million. Revenue increased by 9% and adjusted OIBDA by 23% compared to the prior year. Adjusted OIBDA margin was 42%. The bulk of GCI's revenue and OIBDA comes from enterprise services provided to healthcare corporations and schools in rural Alaska, while consumer services are the minority of the company's revenue and OIBDA.

• Acquisition of Liberty Broadband by Charter is expected to close on June 30, 2027. - GCI spinoff is expected to be completed this summer. - GCI Liberty plans a virtual investor event prior to the spinoff. - GCI's net CapEx for 2025 is expected to be $250 million, with CapEx remaining elevated in 2026 to fulfill build out requirements under the Alaska Plan.

• Quintillion Fiber in the Beaufort Sea ice failed again, disrupting consumer services until late summer. - Uncertainty regarding the Supreme Court's ruling on the Universal Service Fund, with contingency plans in place to react to potential rulings.

Q: A number of cable companies have or are in the process of reimagining their strategies, and for GCI, whether there's a need to shift operating and pricing strategy or if current momentum makes it unnecessary, and also about changes in consumer or business customer behaviors due to macro uncertainty.

A: On behavior, it's a flat marketplace with a bit of competition from Starlink around the edges, no real changes on broadband front and slow but steady growth on consumer wireless. On strategy, GCI is in tune with the industry looking at ways to differentiate and solidify customer proposition, reevaluating pricing and product mix, with enterprise services being the bulk of revenue and OIBDA, and moving towards bundling wireless with broadband like Lower 48 companies but with its own wireless network.