Liberty Broadband Corporation Q4 FY2024 earnings call

• On November 12, 2024, Liberty Broadband entered a definitive agreement to be acquired by Charter, with shareholder approval received on February 26, 2024, and the transaction expected to close on June 30, 2027. - Liberty Broadband will spin off GCI prior to the transaction close, expected late Q2 or early Q3 2024. - GCI in 2024 had record revenue, solid adjusted OIBDA and free cash flow, and distributed $150 million in dividends to Liberty Broadband. - At quarter end, Liberty Broadband had consolidated cash and restricted cash of $229 million, including $75 million at GCI, and GCI had $342 million of undrawn capacity under its revolver. - The value of Liberty Broadband's Charter investment based on February 1 share price was $15.9 billion, and Liberty Broadband had $3.7 billion in total principal amount of debt.

In 2024, GCI achieved record revenue exceeding $1 billion. Fourth quarter revenue increased 5% and full-year revenue rose 4%, driven by data revenue. Adjusted OIBDA decreased 4% in the fourth quarter but was up $1 million to $362 million for the full year, with revenue growth offset by higher SG&A expenses. 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 Charter acquisition is expected to close on June 30, 2027, unless otherwise agreed. - 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 spin-off of GCI is expected to be completed in late Q2 or early Q3 2024.

• Potential disruptions in rural Alaska due to backbone fiber outages leading to competition from Starlink. - Uncertainty regarding BEAD grant adjustments and changes in government subsidies affecting GCI's rural connectivity projects. - Impact of economic slowdown or changes in energy policies in Alaska on GCI's operations.

Q: About GCI Liberty's competitive backdrop, spin-off timing, and subsidies A: Ronald Duncan discussed that in Alaska, the wireless market has GCI competing mainly with AT&T, and wireline has GCI and ACS as main competitors. Spin-off of GCI is expected late Q2/early Q3. Regarding subsidies, Alaska has an April deadline for BEAD applications with ~$1 billion targeted, and there's uncertainty around grant adjustments and Starlink's potential role.

Q: About subsidies, economic slowdown, and Alaska's economy A: Ronald Duncan mentioned Alaska is countercyclical to recessions due to energy economy. There's potential for more upside from Trump's focus on domestic energy. On subsidies, Starlink may qualify for grants, but GCI's fiber is preferred for enterprise users. Ben Oren also touched on Alaska's economic dynamics related to energy policies