Q1 2020 Earnings Call
Day, which is available on T.I. liberties website, now I'd like to turn the call ever to G.C.N. Liberty, President and C.E.O., Greg <unk>.
Thank you.
Thank you coordinate.
Good afternoon, Joel today's speaking on the call will have G.C. I lived be stupid counting officer in principle financial officer Blind women.
G.C. eyes, and see if or P. pounds.
Also be available during you know the Kunaev answer questions related to Liberty broadband and Liberty trip advisor.
<unk> I hope you're off safe and healthy.
I'd also like to thank all of our employees and management teams for their hard work and support through this coded 19 crisis.
Well, let me begin by turning G.C.I. Liberty.
A G.C. either team has been very focused on keeping alaskans connected during the pandemic.
Strong network has withstood substantial increases the network traffic.
They had been providing free entry level data plans for new customers in pre upgrades for existing customers.
And in particular, they're offering free data plans and wife I equipment for K. 12 students and teachers [noise].
Part of that is that they are in participating in the S.P.C.'s keep Americans pledged.
Connected touch with other carriers across the nation.
<unk> business model on the cable business model in General has proved resilient and the first quarter results were excellent.
As a part of those revoke they also enough the official launch of the first five G.'s service in Anchorage, you'll hear more about that from two pounds and some of their results in a minute.
Turning the lending tree, they reported solid for scoring results on Tuesday.
They did launch D.S. deal any marketplace to match small businesses and need with lenders to facilitate access to funds under the P.P.P. program to they're doing their part during the pandemic as well they announced a 1 million dollar donation to the Lendingtree Foundation for pandemic relief.
Experience relatively good performance in home and insurance and Q1 and the consumer said.
Challenging.
Diversification has helped them whether install more effectively than many others in their space.
They do have a strong balanchine liquidity position with 51, then the cash on hand, and 370 million of capacity under their revolving credit facility.
Liberty broadband charter had enough stand in color.
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Charter has pledged to keep Americans connected during this crisis.
And they committed to a number of offers to help those impacted by the pandemic, including students and educators and small and medium businesses. They also opened up wife my hot spots for public use they are picked a prioritizing requests from the government health care and educational institutions for new connections upgrade from services as they try and help people get through this crisis.
The significant investment network that they've made up in the last several years, leading to an all digital network et cetera, upgrading to doctor to about one have allowed their network to perform very well during this time.
Like G.C.I., despite the <unk> substantial increase in network traffic a levels <unk> levels remain well below maximum capability.
The quarter at G.C. I try to write it was very operational strong they added 580000 residential and that's and be in the customers the highest in their history part of those where do these offers I mentioned above for example, and the educational side, but the inherent growth with strong revenue was up 4.8%.
I'm interested in but it was up 8.4%.
Free cash flow grew by over 100%.
During the quarter try to repurchased 5.2 million shares for $2.6 billion.
On liquidity front chartered very well positioned as well with $2.9 billion of cash and 4.7 billion they'll build 100 per bother and they've successfully had a couple of bond offerings in the last few weeks of very attractive rates.
Turning trip advisor.
Mentioned that they have released their results.
But they have not had the conference call, yet, which is scheduled for tomorrow morning, So avoid coming on that.
Will comment lastly on trip advisor Liberty trip advisor, which on March 16th announcement investment Beiser Tories of $325 million of 8% <unk> cumulative redeemable preferred stock.
Greg O'hare the founder of Sartorius joined a trip and Liberty trip boards.
We also borrowed $40 million against the new variable prepaid forward and we use the proceeds from Mr. <unk> investment borrowings under the variable prepaid forward and some small amount of cash on hand to pay the full amount outstanding under our Lord marginal we have no margin loan today.
Much better set up for the longer term with the subtleties investment.
This investment better positions as to withstand the market volatility and economic till till the particularly in the travel space, So with that I'm going to turn over to Brian to discuss G.C.I. liberties financials.
Thanks, Greg will spend a minute talking about you see I liberties liquidity position here.
Quarter N.G.C.I. Liberty has consolidated cash and cash equivalent of $569 million. Let's includes 82 million of cash to tell that the G.C.I. operating level.
Value of the public equity Securities that G.C.I. Liberty has of today's close was 8.8 billion, which includes are 2.7 billion interesting charter 5.3 billion interest in Liberty broadband and an 800 million dollar interest in lending tree, all up nicely since quarter end.
At quarter N.G.C.I. Liberty have total principle amount of debt of 3.2 billion, which includes the 1.3 billion margin loan outstanding against its Liberty broadband shares which is fully drawn.
The charter Exchangeables adventures, and 1.4 million of debt, including financially physically tower obligations that G.C. I.
[noise] G.I.'s language, a quarter and as defined in his credit agreement was 4.4 times compared to a maximum allowable average of 6.5 times.
See I has 267 million of on drawn available capacity on us revolver as at the end of the quarter.
Note that the above amounts exclude the indemnification obligation and preferred stock at U.C.L. every.
That'll turn the call over to Pete to talk about G.C. as operating results.
Thanks, Brian.
Starting with a curve at 19 update.
As Greg mentioned work committed to keeping alaskans connected during this time.
We have a number of options out there to both new and existing customers for our data service.
And are working with that apartment early education in Alaska Council at school administrators, the health students and teachers stay connected during the crisis.
Along with other carriers throughout the country, you're also participating in the keep American cover connected pledge, which includes the opening up our wife I Hot spot for public use and suspending disconnects and waiting late fees for residential customers and small businesses, who have been impacted by forbid.
19.
The Alaska stayed economy has been impacted by both the code at 19 crisis and the depressed oil market.
In the last six weeks, we'd have 70000 jobless claims in a state where the workforce of just over 400000.
Small businesses and companies in the oil and tourism industries have seen significant damage.
While we did not see a meaningful slowdown in revenue or collections and the first quarter. This is the area that concerns me most this year.
Accordingly.
Increased our allowance for doubtful accounts and will continue to monitor the impact of the economic situation on our customers.
We are fortunate to be entered offensive business.
Armed services or instrumental in allowing our employees and customers to work from home safely.
Our network has been for quite a 10th of its effectiveness and has passed with flying colors.
They found a lot of planning hard work and a little luck. We have had only two known cases of employees with pills that 19, both of whom are now fully recovered.
We have implemented a number of new practices to keep our employees and customers safe, including repurchasing several retail stores and to call centres.
Moving onto the five down five g. upgrade.
We're making continued progress on our five down by G. deployment in Anchorage, Inter now close to 50% complete.
Customers are seeing more bars and faster speeds upgrade has also led to improvements to four G.L.P.E. service.
Five g. will materially enhance our competitive position in the wireless market.
We are on track to complete the upgrade the vast majority of ourselves sites in anchorage by the end of this year.
Now all talk through our fourth quarter results.
What a difference a year Manx.
Last year, we had adjusted or the <unk> 44 million in the first quarter and this year, we have 86 million.
There was a 30 million dollar net benefit from the R.H.C. appeal in in February which includes laughing. The 21 million dollar reserve, we took and Q1 of last year.
And the recognition of 9 million of previously unrecognized revenue from 2019.
Quite a major role in the improvement.
However, there was there were 12 million dollar operational improvement due to grow some data revenue the elimination of our lower 48 time, the materials business and the benefits from our restructuring last year.
I'm a consumer sign revenue was up 3% data driving the growth.
During the quarter, we gain 1400 pain cable modem customers and provided an additional 3600 customers would they promotional pretty service.
I expect that some of those promotional cable modem customers will continue our service after the promotional period.
Hope that after experiencing are excellent data services, some customers will choose to stick with us when we emerged from the crisis.
Consumer wireless revenue also increased due to customers selecting higher value plans.
Over a juicy I'd business.
Revenue was off about 6% after eliminating the $9 million out of period R.H.C. benefit.
The growth would largely due to growth in education and healthcare revenues.
Finally tax we were relatively light on contracts for the quarter as we typically are in the first quarter of the year.
We spend 23 million in the corridor.
Depending on how long the coded 19 challenges persist, we make them a little less than originally planned due to logistical challenges.
However, our primary capital project for the year.
Five band five G. wireless in Anchorage is on trial.
I'll laugh now hand, the call back over to Greg.
Great Thank spoke to Brian and Pete.
Into our listening audience. We appreciate your continued interest in D.C.I. Liberty Liberty broadband and Liberty trip advisor.
That awkward I'd like to open the line for questions.
Thank you if you'd like to ask the question the signal by pressing star one on your tells you sad.
Using a speakerphone piece make sure your you'd function is turned off to low signal to reach or equipping again I just started one to ask a question.
But it will not take our first question from James Reckless.
Right. So please go ahead.
Let me think statement question on one <unk>.
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Yeah.
Yeah.
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It came down from 1920 problems what are the food.
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<unk> why we chose that Robert things.
If you worked out thanks.
Sure.
<unk>.
We're going to handle that Pete.
Yeah. So what's the the question was on data times, a year over year. It was breaking up a little our side.
Yeah, sorry, you have to the nine <unk> generating wireless.
Oh, Yeah Oh.
And why way down here on here.
Yeah. So we we had had promotion much like the rest of the ended three to get the the mobile broadband kind of the sticks that you put it in your laptops or the the I pads that sort of thing and we were giving them away on a promotional basis and.
When when node started to cost customers money. They did start to disconnect those and so it's a it's a loss of subscriber account, but it's not a revenue hit.
<unk>.
Okay.
Mmm.
Oh and great just on health <unk>, Yeah, we we we unfortunately, we really got caught in a continuous downdraft you know we have seen where we.
Had previously had.
Company flipped spun out with a full margin loan we reduce that substantially the variable price for would.
<unk>.
Oh, we took the proceeds we received from the one time, giving them to trip and pay down some of that margin loan and close unbearable place for them took the profits from the down so that we put part of that and pay got margin loan. Unfortunately.
You know the late March period would the downdraft, we were hustling quickly to find alternatives to remove any margin loan capability or a margin long exposure.
We did talk to a number of private equity firms a new chose so Tories because we think that and we had previously had both we interrupt that had discussions with stories about other kinds of strategic partnerships and we chose from targets because really we think that their expertise and travel they had an extensive travel portfolio.
And the potential for a them to be help on synergistic and building value at trip in there for a living trip was highest and they were also able to move quickly and you were able to come up with a structure that worked for the two of us.
Great Okay.
Okay.
Alright somehow seats or next cushion from Michael Roland at city is good.
Thanks, Good afternoon.
Two questions that they could please the first one is that you mentioned about the <unk> upgrades and be related benefits that you're getting on afford she's network do away with frame.
Incremental revenue opportunities relative to the current wireless things since revenue.
Moved upgrades.
Monetizing that in becoming more competitive.
And then just secondly, just any thoughts on how you you look at the current market volatility and what it meant for D.N.A.B.D. accounts for T.I. Liberty and for Liberty broadband.
[noise] <unk>, Peter or run started on the first.
Oh I'll take a stab at the.
Fortunately buggy.
Fish.
Basically by implementing a four or five band radios in concert with the upgrade to five Judy New radio we've very substantially expanded the tools and with available to all cellphones both for G.N.G.
And what we're seeing is.
Doubling or tripling the average throughput that people experience on their on there for g. phones that moves us from the back of a pack in the marketplace in terms of network performance to the front of the pack. Even if you only have afford you boys device and we think it will both reduced.
Earn hopeless gradually gang share in the marketplace sorts of substantial improvements are competitive position.
And if you look at the N.A.B. discounts.
They certainly for a period blew out an expanded dramatically in the liquidity crisis towards the end of March they've gradually tightened in most cases.
But still it's ready made some discounts.
Look I think over the long term as we stabilize the business that's an opportunity for G.I. Liberty and frankly with your broadband to take advantage of that discount and either so puts against it I stop back we have bloodstock back at both companies. We happy she puts it liberty broadband all of those are opportunities that I think are attractive.
And we'll use we'll use the.
We believe the miss pricing by the market trying to take advantage of it.
Thank you.
Right well now take our next question from Medley Cross City. Please go ahead.
Just falling all over the last question I mean, given the strength <unk>, how willing would you be to increase the size of arguing bone outlet pretty broad band width.
That comes due.
Well, we just to be clear, we <unk>, we could increase it probably at any time, we haven't flown the full amount what's available to us and as you rightly pointed out the the margin balance is low.
In terms of compared to the size of our charter investment will be Bob then that haven't been said no. We're cautious in this environment around margin loans, we saw volatility across our portfolio on margin loans spoke of live nation kind of living trip as we've just discussed so we're cautious or not but we'll we'll pay attend.
And then look for.
The right time to take advantage of that we are very competent and charters results charter is.
We believe very well position in the market, you're looking I brought Ben subject growing you'll have to how the relative decline for the moment in video subs. Other continued expansion of <unk>. We'll continue chair reduction sure account with action, which is all driving from capital to share dramatically, we remain quite a lot.
Mr Controller, So we'll look to try and take advantage of up at Liberty bogged down N.G.C. I would.
<unk>.
Alright, and I'll be taking our last question from Michael crowded Centrust just go ahead.
Thanks for taking my question is a question for Ron Duncan about Oh last it sounds like you guys are providing that great service for Alaska stuck at home impacted by colds it but.
The economy goes last time, the price of oil decline over a lotta talk about austerity program at the state government level and reduction on spending and potential cancellation of state funded projects. It.
Exacerbate impacts on the economy I just.
If your comments on.
But not with the state governments.
Right now as it relates to dealing with the lower price of oil.
<unk> the <unk>.
Stayed obviously gets caught a double whammy both between the economic impact of the covert shut down and agree very low price of oil.
Good news is good it's a longer term impact and we're unlikely to see the bulk of its until next year they'll take the oil industry, a little while to spend the state legislature recess that went home having approved.
Budget for the current fiscal year, which runs through July of 21.
The rubber would really make the road next year with post July 21 state budget, and we'll have more color on the long run the price of oil.
By them, but I suspect they'll be some for the cutbacks we've already done a lot of cutting back and pulled in a lot. So it won't be as bad as it would've been at this up into it was two years ago, but instead of coming out quite smartly from the recession that we've been into the last two or three years it looks like it's likely to pursue.
For another year, if we would go someplace rationalize where the girls place.
Thank you.
Great.
I think that's probably why.
So I want to think all of a r. teams as I said from great worth doing through the probably crisis. Some phone calls for participating states call hopefully, we'll stick to safely next quarter if not before.
Thank you very much would that operate I think with them.
Essentially just concludes stays call. Thank you for your participation you may know disconnect.
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Ladies and gentlemen, thank you for standing by welcome to the C.G. <unk> Liberty Twentytwenty Q1 earnings call. During the presentation, all participants will be in listen only mode. After afterwards, we will conduct a question answer session and not the Congress you have a question. Please press star one on your telephone.
As a reminder, this conference is being recorded on February 26, 20 to 2020 I'd now like to turn the conference over to coordinate <unk> portfolio office <unk> Senior Vice President of Investor Relations. Please go ahead.
Thank you before we begin we'd like to remind everyone that this call include certain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995 actual events or results could differ materially due to a number of risks and uncertainties, including those much ended our most recent form 10-K and form 10-Q filed with the FCC.
These forward looking statements speak only as good date of this call and you see our Liberty Liberty broadband and Liberty trip advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statement contained herein to reflect any change and you see our liberty Liberty broadband or Liberty trip advisor is expectations with regard there too.
Or any change in events conditions or circumstances under which any such statement. It's based on today's call. We will discuss certain non-GAAP financial measures for D.C.I. Liberty, including adjusted OIBDA and adjusted OIBDA margin information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and scheduled one or two.
It can be found in the earnings press release issued today, which is available on T.I. Liberty's website now I'd like to turn the call Libertad do you see I Liberty, President and CEO, Greg and apart.
Thank you.
Thank you Corning.
Good afternoon to all today speaking on the call well, how do you see I Libbeys, Chief Accounting officer in principle financial Officer, Brian.
GC eyes, and CFO Pete pounds.
Well also be available during now the Cunego answer questions related to Liberty broadband.
The advisor.
Well I hope you'll see some healthy.
I'd also like to thank all of our employees and management teams for their hard work in support to just called imagine crisis.
So let me begin by turning to G.I. Liberty.
Oh Gee I had the team has been very focused on keeping alaskans connected during the pandemic.
They're strong that work has withstood substantial increases in that were rather.
Pledged.
Connected pledge with other carriers across the nation.
Do you see eyes business model on the cable business model in General has proved resilient and the first quarter results were excellent.
As a part of those results. They also now see official launch of the first five G.'s service in Anchorage, you'll hear more about that compete pounds and some of the results in a minute.
Turning the lending tree they reported solid first quarter results on Tuesday.
They did launch the S.D. wanting marketplace to match small businesses in need with lenders to facilitate access to funds under the P.P. program. So they're doing their part.
During the pandemic as well they announced a 1 million dollar donation to the Lendingtree Foundation for pandemic relief.
Experience relatively good performance in home and insurance and Q1 and the consumer segment was more challenging.
Diversification has helped them whether installing more effectively than many others in their space.
They do have a strong balance sheet liquidity position with 51, then the cash on hand, and 370 million of capacity under their revolving credit facility.
In order to Liberty broadband charter had an outstanding core.
<unk>.
Charter has pledged to keep Americans connected during this crisis.
And they committed to a number of offers to help those impacted by the pandemic, including students and educators and small and medium businesses. They also opened up wipe my hot spots for public use they are packed prioritising requests from the government health care and educational institutions for new connections upgrade from services.
Fine how people get through this crisis.
The significant investments network that they've made up in the last several years moving to an all digital network et cetera, upgrading doctorates. We've got one have allowed the network to perform very well during this time.
Like G.C.I., despite the subscript substantial increase in network traffic a levels.
<unk> levels remain well below maximum capability.
The quarter at G.C. I try to rather was very operational strong. They added 580000 residential and that's and be in the customers. The highest in their history part of those where do these offers I mentioned above for example, and the educational side, but the inherent growth with strong revenue was up 4.8% and it just.
But it was up 8.4%.
Free cash flow grew by over 100%.
During the quarter trucker repurchased 5.2 million shares for $2.6 billion.
On liquidity front charters, very well positioned as well with $2.9 billion, a cash and 4.7 billion or they'll build ended for bother and they've successfully had a couple of bond offerings in the last few weeks and very attractive rates.
Turning trip advisor.
They have released their results.
But they have not had a conference call yet which is scheduled for tomorrow morning, So avoid coming on that.
Will comment lastly on trip advisor Liberty trip advisor, which on March 16th announce investment Beiser Tories of $325 million at 8% <unk> cumulative redeemable preferred stock.
Greg O'hare the founder of stories joined a trip and Liberty trip boards.
We also borrowed $40 million against the new variable prepaid forward and we use the proceeds from Mr colleagues investment.
Borrowings under the variable prepaid forward and some small amount of cash on hand to pay the full amount outstanding onto our Lord margin. We have no margin loan today, and we are much better set up for the longer term with the sitars investment.
This investment better positioned says to withstand the market volatility in economic though totally particularly in the travel space. So we've been I'm going to turn over to Brian to discuss G.C.I. liberties financials.
Thanks, Greg will spend a minute talking about G.C.I. liberties liquidity position here.
A quarter N.G.C.I. Liberty has consolidated cash in cash equivalents $569 million.
Clues 82 million of cash to tell that the G.C.I. operating level.
Value of the public equity securities that G.C.I. Liberty as of today is close was 8.8 billion, which includes are 2.7 billion interest in charter 5.3 billion interest in Liberty broadband and an 800 million dollar interest in Lendingtree, all up nicely since quarter end.
Quarter N.G.C.I. Liberty have total principle amount of debt of 3.2 billion, which includes a 1.3 billion margin loan outstanding against its Liberty broadband shares which is fully drawn.
The charter Exchangeables adventures, and 1.4 million of debt, including financially Susan tower obligations that G.C. I.
She she always leverage a quarter end as defined in its credit agreement was 4.4 times compared to a maximum allowable average at 6.5 times.
See I has 267 million of Undrawn available capacity on us revolver, that's at the end of the quarter.
Note that the above amounts exclude the indemnification obligation and preferred stock that G.C.I. Liberty.
That'll turn to call over the Pizza talk about G.C. as operating results.
Thank Brian.
Starting with a curve at 19 update.
Greg mentioned work committed to keeping alaskans connected during this time.
We have a number of offers out there to both new and existing customers for our data service.
Are working with the Department early education in Alaska Council at school administrators help students and teachers stay connected during the crisis.
Along with other carrier throughout the country, you're also participating in the keep American cover connected pledge, which includes opening up our wife I Hot spot for public use.
Ending disconnects and waiting late fees for residential customers and small businesses, who have been impacted by forbid 19.
The Alaska stayed economy has been impacted by both the code at 19 crisis and the depressed oil market.
In the last six weeks, we've had 70000 jobless claims in a state where the workforce of just over 400000.
Small businesses and companies in the oil and tourism industries have seen significant damage.
While we did not see a meaningful slowdown in revenues or collections and the first quarter. This is the area that concerns me most of this year.
Accordingly, we've increased our allowance for doubtful accounts and will continue to monitor the impact of the economic situation our customers.
We are fortunate to being a defensive business.
Our services or instrumental in allowing our employees and customers to work from home safely.
Our network has been for quite a test of its effectiveness and has passed with flying colors.
They found a lot of planning hard work and a little luck. We have had only two known cases of employees with pills that 19, both of whom are now fully recovered.
We had implemented a number of new practices to keep our employees and customers safe, including re purposes, several retail stores into call centres.
Moving onto the five band five G. upgrade.
We're making continued progress on our five band five g. deployment in Anchorage inner now close to 50% complete.
Customers are seeing more bars and faster speeds that'd be upgrade her also led to improvements to four G.L.P.E. service.
Five g. materially enhance our competitive position in the wireless market.
We are on track to complete the upgrade the vast majority of our cell sites in anchorage by the end of this year.
Now all talk through our fourth quarter revolt.
What a difference a year Manx.
Last year, we had adjusted or the <unk> 44 million in the first quarter and this year, we have 86 million.
There was a 30 million dollar net benefit from U.R.H.C. appeal in in February which include laughing. The 21 million dollar reserve. We took in Q1 of last year and the recognition of 9 million of previously unrecognized revenue from 2019.
That played a major role in the improvement. However, there was villa 12 million dollar operational improvement due to growth in beta revenue.
Elimination of our lower 48 time, the materials business and the benefits from our restructuring last year.
I'm a consumer sign revenue was up 3% with data driving the growth.
During the quarter, we gain 1400 pain cable modem customers and provided an additional 3600 customers with a promotional pretty service.
I expect that some of those promotional cable modem customers will did continue our service after the promotional period.
I hope it after experiencing R.X., one data services, some customers will choose to stick with us when we emerged from the crisis.
Consumer wireless revenue also increased due to customers selecting higher value plans.
Over and you see I've business.
And it was off about 6% after eliminating the $9 million out of period R.H.C. benefit.
The growth was largely due to growth in education and healthcare revenues.
Finally, calf X., we were relatively light on contracts for the quarter as we typically are in the first quarter of the year.
We spend 23 million in the corridor and depending on how long the curve in 19 challenges persist, we make bend a little less than originally planned due to logistical challenges.
However, our primary capital project for the year five band five G. wireless and encourage is on trial.
I'll nice now hand to call back over to Greg.
Great Thank supposed to Brian and the Pete.
Into our listening on the kids. We appreciate your continued interest in D.C.I. Liberty Liberty broadband and Liberty trip advisor.
That operator, I'd like to open the line for questions.
Thank you if you'd like to ask the question. Please signal by pressing store one on your.
<unk>.
She was using a speaker phone just make sure. Your function is turned off to low signal to reach or equipping again I just started one to ask a question.
I'll take our first question from James plus I'd have a core I signed please go ahead.
Let me think statement question are one <unk>.
<unk>.
Yeah.
Yeah, we had cable modem subscribers.
<unk>.
Definitely.
It came down from 1920, probably is what are the food and why do they drop you on your.
Oh <unk>.
<unk> why we chose that Robert things or whatever option he worked out thanks.
Sure.
Why don't you can just for.
Yeah.
We can handle that Pete.
Yeah. So was the the question was on data the year over year. It was breaking up a little on our side.
Yeah, sorry, yeah, the nine ready generating wireless.
Oh, Yeah, Oh <unk>.
And why way down here.
Yeah. So we we had had promotion much like the rest of the ended three to get the the mobile broadband kind of the sticks, but you put in your.
Laptops or the the I pads that sort of thing and we were giving them away on a promotional basis and when when node started to cost customers money. They did start to disconnect those.
It's a it's a loss of subscriber count, but it's not a revenue hit.
Yeah.
<unk>.
Okay.
Mmm.
Oh and great just on health <unk>, Yeah, we we we unfortunately, we really got caught in a continuous downdraft.
We have seen where we.
Had previously had.
<unk> company living trip with spun out with a full margin loan we reduce that substantially the <unk> is that the stocks out we took the proceeds we received from the one time, giving them to trip and pay down some of that margin loan and pause unbearable place for it and took the profits from the downside.
We put part about okay got marginal and unfortunately.
You know the late March period, with the Downdraft, we were hustling quickly to find alternatives to remove any margin long capability or a margin long exposure. We did talk to a number of private equity firms I knew chose sort atari's, because we think that.
We had previously had both we interrupt that had discussions with your trolleys about other kinds of strategic partnerships.
<unk>, because really we think that their expertise and travel they have an extensive travel portfolio and the potential for a them to be help on synergistic and building value at trip and therefore Liberty trip was highest and they were also able to move quickly and you were able to come up with a structure that worked for the two of us.
Great. Thank you.
Thank you.
Alright, well how things are next question from Michael Roland at City is good.
Thanks in good afternoon.
Two questions up I could please the first one is that you mentioned about the <unk> upgrades and be related benefits that you're getting on afford she'd network do away with frame.
Incremental revenue opportunities relative to the current wireless days since we're avenue.
These upgrades and you look at nine to tie thing that in becoming more competitive and then just secondly, just any thoughts on how.
Yeah, you look at the current market volatility and you know what it's meant for D.N.A.B. did counts or G.T.I. Liberty and for Liberty broadband.
[noise], all that Peter or run start on the first.
Oh I'll take a stab at the.
<unk>.
<unk>.
Sickly by implementing a full five band radio in concert with the upgrade to five Judy New radio we've very substantially expand the the total bandwidth available to all cellphones will for G.N.G.
What we're seeing is a doubling or tripling the average throughput that people experience on their on there for g. phones that moves us from the back of a pack in the marketplace in terms of network performance to the front of the pack you, but if you only have afford you boys device.
And we think it will both reduced churn and hopeless gradually gained share in the marketplace. So it's a substantial improvements are competitive position.
So put against did buy stock back we have bought stock back at both companies. We have issue puts at Liberty broadband all of those are opportunities that I think are attractive and you'll use we'll use the.
We believe the miss pricing by the market trying to take advantage of it.
Thank you.
Gary will now take our next question from that lacrosse at Citi. Please go ahead.
Yes.
Just following on the last question I mean, given.
The strength in charter price, how willing would you be to increase the size of the margin mall at Liberty broadband when that comes due.
Well, we just to be clear, we could be could increase it probably at any time, we haven't trial in the full amount.
Thats available to us and as you rightly point out that the margin balance is low.
In terms of compared to the size of our charter investment at Liberty broadband that having been said we're cautious in this environment around margin loans.
We saw volatility across our portfolio on margin loans, both live nation and.
Every trip as we just discussed.
So we're cautious on that but we'll we'll pay attention and look for the Oh, the right time take advantage of that.
We are very competent new charters results on charter is.
We believe very well positioned in the market you look at our broadband subs are growing you'll look at how the relative decline for the moment in video subs as a continued expansion of margins the reductions of Capex.
The continued share reduction share count reduction, which is all driving free cash flow per share dramatically.
We remain quite optimistic on charter so we'll look to try and take advantage of that at Liberty broadband NGC annually.
Thank you.
I will now be taking our last question from Michael Crony Suntrust. Please go ahead.
Hey, Thanks for taking my question is a question for Ron Duncan about Oh, Alaska and it sounds like you guys are providing a great service for Alaska, Youre stuck at home and impacted by quarter, but.
As far as the economy goes no last time the price of oil decline. There was a lot of talk about austerity programs at the state government level and reduction on spending and potential cancellation loves state funded projects it might exacerbate impacts on the economy I just was wondering.
You could comment on what a network of state governments physician is right now as it relates to our dealing with a lower price of oil.
Thanks the.
State, obviously gets caught in a double whammy both between the economic impact is a good shutdown and very very low price of oil. The good news is good it's a longer term.
Back and were unlikely to see the bulk of it until next year they'll take the oil industry a little while this trend down the state legislature research that went home have an approved.
Budget for the current fiscal year, which runs through July of 21.
And the rubber will really make the road next year with post July 21 state budgets and we'll have more color on the long run price of oil.
By them, but I suspect there'll be some further cutbacks we've already done a lot of cutting back and pulled in a lot. So it won't be as bad as it would have been at this happened to us two years ago, but instead of coming out quite smartly from the recession that we're going into the last two or three years it looks like it's likely to pursue.
Just for another year or two until someplace rationalize when the oil space.
Thank you.
Great I think that turned laugh when I think.
So I want to thank all of our teams as I said from a great weren't doing through the probably crisis and thank all of you for participating in today's call hopefully will speak to safely next quarter, if not before and thank you very much and with that operator, I think with them.
Thank you. This concludes today's call. Thank you for your participation you may now disconnect.