Liberty Broadband Corporation Q2 FY2024 earnings call

• Liberty Broadband: In July, issued $860 million of 3.125% Charter exchangeables, used proceeds to repay debt and repurchase bonds, extended margin loan maturity, resumed sales to Charter buyback. Charter had strong results with EBITDA growth, mobile profitability, and reduced leverage. - Liberty TripAdvisor: Evaluating strategic alternatives, TripAdvisor faced challenges but strategy work effective, Viator and TheFork contribution increased. - Brian Wendling: Liberty Broadband had consolidated cash and cash equivalents of $73 million, Charter investment value $16.2 billion, debt $3.7 billion; GCI revenue up $1M, adjusted OIBDA down $6M, distributed $150M to Liberty Broadband, leverage at 3.2x with undrawn capacity under revolver.

Liberty Broadband: Charter had a net subscriber loss of 149,000 broadband subs in the quarter, mostly due to ACP, but broadband trends improved with the lowest net loss in June. Charter reported solid EBITDA growth of 2.6% versus the prior year and 100 basis point margin improvement. Mobile achieved profitability and reported 557 mobile line net additions. GCI: Revenue was up $1 million over the prior year, driven by data sales strength but adjusted OIBDA decreased $6 million due to higher operating costs and SG&A expense. Over the last year, GCI consumer saw a decline of 1,000 revenue-generating wireless subs and 2,500 cable modem subscribers, mostly from ACP program expiration. GCI's revenue contribution and adjusted OIBDA contribution are part of the segment performance details.

• Expect substantial interest savings from debt actions and will continue prudent debt retirement. - Charter expects continued EBITDA growth in back half of year, AC impact in third and fourth quarters, and to move closer to 4 to 4.5x leverage range. - Liberty TripAdvisor continues to evaluate strategic alternatives.

• Debt-related risks such as potential leverage changes. - Market competition risks affecting Charter's performance. - Uncertainty in Liberty TripAdvisor's strategic alternative evaluations.

Q: There were questions about GCI wireless business device subsidies and AI phone cycles.

A: Ron Duncan said GCI as a mobile network operator has to match or be competitive with majors' device subsidies, evaluating AI phone cycle for potential share gain.

Q: About telecom competition and impact on Charter.

A: Greg Maffei said T-Mobile's actions validate need for fixed lines, Charter's combined offering is attractive.

Q: Regarding Liberty TripAdvisor's Series A preferred stock.

A: Greg Maffei said there are active discussions between Certares, TripAdvisor and themselves, can't comment on specific outcome