Q1 2020 Earnings Call
Which is available on T.I. liberties website, now I'd like to turn the color to G.C.N. Liberty, President and C.E.O., Greg <unk>.
Thank you.
I can courtney.
Good afternoon to all today's speaking on the call will have G.C. I lived be cheap accounting officer in principle financial officer Blind women.
G.C.I.C.S. or p. pounds.
Also be available during the <unk> to answer questions related to Liberty broadband and Liberty trip advisor.
<unk> I hope you're off safe and healthy [noise].
I'd also like to thank all of our employees a management teams for their hard work and support through this coded 19 crisis.
So let me begin by turn into G.C.I. Liberty.
At U.C. either team has been very focused on keeping alaskans connected during the pandemic.
They're strong network has withstood substantial increases in traffic they had been providing free entry level data plans for new customers and free upgrades for existing customers.
And in particular, they're offering free data plans and wife I equipment for K. 12 students and teachers.
Part of that is that there and participating in the S.P.C.'s keep Americans pledged.
Connected touch with other carriers across the nation [noise].
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 announced 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.
So turning the lending tree they reported solid first quarter results on Tuesday.
They did launch the S.D. when the marketplace to match small businesses and need we'd lenders to facilitate access to funds under the P.D.P. program.
Doing their part during the pandemic as well they announced the 1 million dollar donation to the 23 foundation for pandemic really.
Experience relatively good performance in home and insurance and Q1, and the consumer segment with more challenging.
They're diversification has helped them whether install more effectively than many others in their space.
They do have a strong balanchine recording position with 51, then the cash on hand in 370 million of capacity under their revolving credit facility.
Turning over Liberty broadband charter had an outstanding core like G.C.I., a 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.
Also opened up wipe my hot spots for public use they are proto prioritizing requests from the government health care and educational institutions for new connections upgrade and services that they try and help people get through this crisis.
The significant investment network that they've made over the last several years moving to an all digital network et cetera, upgrading to doctor three that one have allowed the 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 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 on the educational side, but the inherent growth with strong revenue was up 4.8% and.
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.
Unrecorded different charter is very well positioned as well with $2.9 billion cash and 4.7 billion availability hundred for the other and they've successfully had a couple of bond offerings in the last few roots it 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 banks are Tories of $325 million of 8% Cannibal 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 used the proceeds from Mr cars investment.
Borrowings under the variable prepaid forward and some small amount of cash on hand to pay the full amount outstanding.
<unk> marginal we have no margin loan today, and we have much better set up for the longer term with the sitars investment this investment better positions us to withstand the market volatility in economic though 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 G.C.I. liberties liquidity position here.
Quarter N.G.C.I. Liberty has consolidated cash in cash equivalence or $569 million. Let's includes 82 million of cash to tell that that you see I operating level.
The 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.
And nobody broadband and an 800 million dollar interest in lending tree, all up nicely since quarter end.
Quarter N.G.C.I. Liberty had total principle amount of debt of 3.2 billion, which includes a 1.3 billion margin learned outstanding against its liberty broadband shares which is fully drawn.
The charter Exchangeables adventures, and 1.4 million of debt, putting financially physically tower obligations that G.C. I.
[noise] Shiite language at quarter and as defined in his credit agreement was 4.4 times compared to a maximum allowable leverage at 6.5 times.
See I has 267 million of Undrawn available capacity on us revolver, that's at the end of the quarter.
The above amounts exclude the indemnification obligation and preferred stock at U.C.L. every.
Well that'll turn to call over the pizza talk about G.C. as operating results.
Thank Brian.
Starting with a curve at 19 update as Greg mentioned were 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 the department early education, and Alaskan counselor at school administrators, the health 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.
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'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 in the first quarter. This is the area that concerns me most this year.
Accordingly, we've 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 in a defensive business.
Aren't 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.
Not only to known cases of employees would totally 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 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 of the upgrade her also read do improvement for G.L.P.E. service.
Five g. materially enhance our competitive position in the wireless market.
We are on track to complete the upgrade to the vast majority of our cell sites in anchorage by the end of this year.
Now all talk through our first quarter results.
What a difference a year mix.
Last year, we had adjusted <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 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 quite a major rolling improvement. However, there was no at 12 million dollar operational improvement due to grow some data revenue.
Elimination of our lower 48 time of materials business and the benefits from our restructuring last year.
I'm a consumer sign revenue was about 40% data driving the growth.
During the quarter, we gain 1400 pain cable modem customers and provided an additional 3600 customers.
Promotional pretty service.
I expect that some of those promotional cable modem customers will continue our service after the promotional period.
I hope it 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 G.C.I. business.
And it was off about 6% after eliminating the 9 million dollar out a period R.H.C. benefit.
The growth was largely due to growth in education and healthcare revenues.
Finally cat that.
We were relatively light on contracts for the quarter as we typically are in the first quarter of the year.
We spent 23 million in the corridor and depending on how long the curve in 19 challenges persist we made found a little less than originally planned do logistical challenges.
However, our primary capital project for the year.
Dan five G. wireless and encourage is on trial.
I'll nice now hand, the 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 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.
It will not take our first question from James <unk> as a core I sized. Please go ahead.
Let me think statement question on one <unk>.
<unk>.
Yeah.
I understand yeah, we've cable modem subscribers it looks like.
On every channel.
It came down from.
Ah 1920, probably is what are the food.
<unk>.
Oh <unk>.
<unk> why we chose that Robert.
What other options you looked at thanks.
Sure.
<unk>.
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 our side.
Yeah, sorry, yeah after the nine ready generating wireless.
Oh, Yeah, Oh <unk>.
And what really down there on here.
Yeah. So we we had had promotion much like the rest of the industry to get the the mobile broadband kind of the sticks that 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 or they did start to disconnect those and so it's a it's a loss of subscriber count, but it's not a revenue hit.
Yeah.
That's great.
Helped champs.
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.
When when this company, who took was found 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 paid down some of that margin alone and pause unbearable place for that took the profits from the down so that we put part of that and pay down marginal and unfortunately.
You know the late March period would the down graphs, 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 sort atari's because we think that.
We had previously had both we interrupt that had discussions with stories about other kinds of strategic partnerships.
Targets, because really we think that their expertise in travel they have an extensive travel portfolio and the potential for a one to be help on synergistic and building value a 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. Thank you.
Thank you.
Alright, well how seats or next question from Michael Roland at City is good.
Thanks in good afternoon.
Two questions looked like could please the first one is that you mentioned about the <unk> upgrades and be related benefits that you're getting on affords you network is there a way you would frame.
Incremental revenue opportunities relative to the current wireless days of revenue.
These upgrades and you look at Monetizer thing that in becoming more competitive and then just secondly, just any thoughts on how.
Yeah, you look at the current market volatility and what it meant for D.N.A.B. did counts for T.I. Liberty and for Liberty broadband.
[noise], all that Peter or run start on the first.
I'll take a stab at the <unk> for G. five g.
<unk>.
Basically by implementing a full five band radios in concert with the upgrade to five Judy New radio we've very substantially expand the the total fat with available to all cellphones, both for G. and 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.
Learn and helpless gradually gainshare.
The marketplace sorts of substantial improvements in our competitive position.
And if you look at the Navy discounts.
They certainly for a period blew out and expanded dramatically in the liquidity crisis towards the end of March they've gradually tightened in most cases.
But still are trading it some discounts.
Look I think over the long term isn't 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 stopped back we have bloodstock back at both companies. We have issue puts it will be broadband all of those are opportunities that I think are attractive.
And we'll use we're using.
We believe in this place and by the market try and take advantage of it.
Thank you.
Right well now take our next kosher from deadly Cross that city. Please go ahead.
Just falling all over the last question I mean, given the strength and charter price how willing would you be to increase the size of arguing ball outlived rebroadcast when.
That comes to.
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 admirably, Bob then that having been said no. We're cautious in this environment around margin loans, we saw volatility across our portfolio on margin loans, both live nation kind of living trip as we just discussed so would cost was on that but will.
And then look for.
The 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 for broadband subs are growing you'll have to how the relative decline for the moment in video subs. Other continued expansion of <unk> reductions of <unk>.
What continued share reduction sure account reduction, which is all driving through castle to share dramatically. We remain quite optimistic controller. So we'll look to try and take advantage of that at Liberty bogged down and you see I would.
<unk>.
Alright, and I'll be taking our last question from Michael <unk>. Some trust just go ahead.
Thanks for taking my question is a question for Ron Bunk and about Alaska.
Hmm sounds like you guys are providing that great service for Los Angeles like at home impacted by cool, but it's.
As far as the economy goes.
Last time, the price of oil decline with a lotta talk about austerity program at the state government level and reduction on spending and potential cancellation of state funded projects that might exacerbate impacts on the economy I just moved on an even comments on.
But you know what 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 garbage up down and agree very low price of oil.
Good news is that it's a longer term.
Back and we're unlikely to see the bulk of it until next year they'll take the oil industry, a little while to spend.
Legislature resistant with home.
Ooh.
Budget for the current fiscal year, which runs through July 21.
The rubber will really make the road next year with coach July 21 state budgets and we'll have more color on the long run the price of oil.
By them, but I suspect they'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've been at this up into US two years ago, but instead of coming out quite smartly from the recession that we've been in the last two or three years it looks like it's likely to pursue.
For another year or two until someplace rationalize where the girls fridge.
Thank you.
Great.
I think that's probably why.
So I want to think all of our teams as I said from the great worth doing through the probably crisis. Some phone calls for participating in the states call hopefully, we'll speak to safely next quarter if not before.
Thank you very much would that operate I think with them.
Since you just concludes space called Thank you for your participation you may know disconnect.
[music].
Yeah.
Yeah.
[music].
Yeah.
[noise].
[laughter].
[laughter].
[laughter].
[music].
[music].
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 it afterwards, we will conduct a question answer session and the Congress you have a question. Please press star one on your telephone.
As a reminder, this conference is being recorded as of February 26, 20 to 2020.
Now I'd like to turn the conference over to coordinate <unk> Chief portfolio Office, <unk> Senior Vice President head of Investor Relations. Please go ahead.
Thank you before we begin we'd like to remind everyone. But its call include certain forward looking statements within the meaning of the private Securities Litigation Reform Act that 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 FTC.
These forward looking statements speak only as good data this call and you see I'd Liberty Liberty broadband and Liberty Tripadvisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements 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 on which any such statements based on today's call. We will discuss certain non-GAAP financial measures for GCR 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 into.
You can be found in the earnings press release issued today, which is available and you see our liberties website now I'd like to turn the call over to do you see on Liberty, President and CEO, Greg and apart.
Thank you.
Thank you Courtney.
Good afternoon to all today speaking on the call well, how do you see I Libbeys, Chief Accounting Officer Principal financial Officer, Brian.
She sea ice and CFO Pete pounds.
Well also be available during the Q, maybe answer questions related to Liberty broadband.
The advisor.
Well I hope you all safe and healthy.
I don't like to thank all of our employees a management teams for their hard work and support to this call the banking crisis.
So let me begin by turning to G.I. Liberty.
Oh Gee I did team has been very focused on keeping alaskans connected during the pandemic.
Americans pledged.
Connected pledge with other carriers across the nation.
She she 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 were both they also announced the official launch of that first five G.'s service in Anchorage, you'll hear more about that from Pete pounds and some of their results in a minute.
Turning the lending tree they reported solid first quarter results on Tuesday.
They did launch the S.D. when the marketplace to match small businesses and need we'd lenders to facilitate access to funds under the P.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 said more challenging.
They're 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 no capacity under their revolving credit facility.
Turning over Liberty broadband charter had an outstanding color like G.C.I., a 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 reading of businesses.
Also opened up why probably hot spots for public use they are proto prioritizing requests from the government health care and educational institutions for new connections upgrade and services.
Try and help people get through this crisis.
The significant investment network that they've made over the last several years moving to an all digital network et cetera, upgrading to Doctor <unk> got one have allowed the network to perform very well during this time.
Like you see I dislike us up sprints substantial increase in network traffic.
Levels <unk> levels remain well below maximum capabilities.
The quarter at G.C. I try to rather was very operational strong. They added 580000 residential and that some people in the customers highs in their history part of those where do these offers I mentioned above for example, the educational side, but the inherent growth with strong revenue was up 4.8% and.
Yesterday, 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, <unk>, very well positioned as well with $2.9 billion of cash and 4.7 billion they'll build 100 for bother and they've successfully had a couple of bond offerings in the last few weeks and very attractive rates.
Turning trip advisor.
Mentioned that they have released their results.
But they have not had a conference call yet which is scheduled for tomorrow morning, So avoid coming around that.
Will comment lastly on trip advisor Liberty trip advisor, which on March 16th announcement investment Beiser Tories of $325 million at 8%.
<unk> cumulative redeemable preferred stock.
Grigol hair, the founder of so towers joined a trip and Liberty trip boards.
We also borrowed $40 million against the new variable prepaid forward and we use the proceeds from the <unk> investment borrowings under the variable prepaid forward and some small amount of cash on hand to pay the full amount outstanding under our loved margin on that we have no margin loan today.
Much better set up for the longer term with the sitars investment this investment better position system to stand the market volatility in economic though till the 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 GCR liberties liquidity position here.
Quarter N.G.C.I. Liberty has consolidated cash in cash equivalents $569 million, which 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 interests and charter 5.3 billion interest in Liberty broadband and an 800 million dollar interest in lending tree, 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 learned 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.
[noise] G.C. library to court around as defined in his credit agreement was 4.4 times compared to a maximum allowable average at 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 excludes the indemnification obligation and preferred stock that you see I Liberty.
That'll turn the call over the Pizza talk about G.C. as operating results.
Thank 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 School administrators helps students and teachers stay connected during the crisis.
Along with other carriers throughout the country, you're also participating in the keep Americans <unk> connected pledge, which includes opening up our wide high 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 Cove 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 in 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 on our customers.
We are fortunate to be in a defensive business.
Our services are 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 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 and to call centres.
Moving onto the five band five G. upgrade.
We're making continued progress arfive banned by G. deployment, and Amperage and are now close to 50% complete.
Customers are seen more of ours and faster speeds upgrade has also read do improvement for G.L.P.E. service.
Five g. materially enhance our competitive position in the wireless market.
Ontrack 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 results.
What a difference a year Manx.
Last year, we had adjusted or the 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 when in February which include laughing. The 21 million dollar reserve, we took into one 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 still at 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 side revenue with the 3% with data deriving the growth.
During the quarter, we gave 1400 paying cable modem customers and provided an additional 3600 customers with a promotional pretty service.
I expect it some of those promotional cable modem customers will continue our service after the promotional period.
For 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.
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 cat that.
We were relatively light on contracts for the quarter as we typically are in the first quarter of the year.
We've spent 23 million in the corridor.
Depending on how long the curve in 19 challenges persist, we make them a little less than originally planned do logistical challenges.
However, our primary capital project for the year.
Five band five G. wireless and encourage is on trial.
Alright, now hand to call back over to Greg.
Great Thank spoke to Brian and the Pete.
Into our listening on the kids. We appreciate your continued interest in G.C.I. Liberty Liberty broadband and wouldn't be trip advisor.
That awkward I'd like to open the line for questions.
Thank you if you'd like to ask the question. Please signal by pressing star one on your tells you said.
Using a speaker phone piece make sure your you'd function is turned off to lower signal to reach or equipping again I just started one to ask a question.
Right when I'll take our first question from James Reckless.
Right size. Please go ahead.
[noise]. They stayed the question I one <unk>.
<unk>.
Yeah.
Yeah.
We'd kill a subscribers.
<unk>.
<unk>.
It came down from.
20 problems what are the food.
<unk>.
And <unk>.
<unk> why we chose that Robert things.
She's worked out thanks.
Sure.
Why don't you can just for.
You can handle that Pete.
Yeah. So was the the question was on data so the year over year. It was breaking up a little our side.
Yeah, sorry, yeah, the nine ready generating wireless subs.
Oh, Yeah, Oh, what reason why we're down here.
Yeah. So we we had had promotions are much like the rest of the industry to get the the mobile broadband kind of the sticks that 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 those started to cost customers money or they didn't start to disconnect those and so it's a it's a loss of subscriber count, but it's not a revenue hit.
Mm.
<unk>.
<unk>.
Mmm.
Oh and great just on hopefully <unk>, yeah. We we we unfortunately, we really got caught in a continuous downdraft you know we have seen where we.
[noise] had previously had when when this company Liberty Triple spun out with a full margin loan we reduce that substantially the variable price forward.
And that the stock Oh, we took the proceeds we received from the one time, giving them to trip and paid down some of that margin alone and pause unbearable place for them took the profits from the downside.
We put part of that and pay down margin loan. Unfortunately.
The late March period, with the down graphs, 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 your trolleys about other kinds of strategic partnerships and we chose from targets because really we think that their expertise and travel.
An extensive travel portfolio and the potential for.
Them to be help on synergistic and building value a trip in there for Liberty trip was highest and they were also able to move quickly and we were able to come up with a structure that worked for the two of us.
Great Okay.
Okay.
Oh, Wow teeth or next cushion from Michael Roland City. Please go ahead.
Thanks.
<unk>.
Two questions that they could please the first one is that you mentioned about a five <unk> upgrades and be related benefit that you're getting on afford she's network do away with frame.
Incremental renting them opportunities relative to the current wireless base of revenue.
You'd upgrades and you look at monetizing that in becoming more competitive.
And then just secondly, just any thoughts on how and you look at the current market volatility and what it meant for D.N.A.B. that counts or G.T.I. Liberty and for Liberty broadband.
[noise], Oh, what Peter or Ron started on the first.
<unk>.
For G. five g.
Fish.
Basically by implementing a full five band radio in concert with the upgrade to five Judy New radio, we 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 the 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.
Earn hopeless gradually gang share in the marketplace sorts of substantial improvements are competitive position.
And if you look at the Navy 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 a trading it some discounts.
Look I think over the long term, it's been stabilized the business, that's an opportunity for G.T.I. Liberty and frankly with your broadband to take advantage of that discount and either so puts against it I stopped back we have bloodstock back at both companies. We have is she puts it will be brought then 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 try and take advantage of.
Thank you.
Right well now take our next question from definitely cross that city just go ahead.
Just falling all over the last question I mean, given the strength and charter price how willing would you be to increase the size of arguing mall outlived pre broadband when.
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 that's available to us and you let me point 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 loan spoke live nation in living trip as we just discussed so would cost was on that but we'll we'll pay attend.
And then look for.
The right time take advantage of that we are very competent and charters results I charter is.
We believe very well position in the market looking I brought Ben subs are grown you'll have to how the relative decline for the moment in video subs public continued expansion of <unk> reductions of <unk>. The continued share reduction sure account reduction, which is all driving free cash flow for sure dramatically we remain quite.
Mr Controller, So we'll have to try and take advantage of Wap at Liberty bogged down M.G.C. I would.
Did you.
Alright, and I'll be taking our last question from Michael <unk> <unk> just go ahead.
Thanks for taking my question is a question for Ron Duncan about Alaska. It sounds like you guys are provided that great service for Alaska stuck at home impacted by cool, but it's.
As far as the economy goes.
Last time, the price of oil decline over a lot of talk about austerity programs that the state government level and.
Options spending and potential cancellation of state funded projects it might exacerbate impacts on the economy I just couldn't even comments on.
What what the state governments.
Right now as it relates to dealing with the lower price of oil.
That's the.
Data, obviously gets caught in a double whammy both between the economic impact of Nicole good shut down and agree very low price of oil.
Good news is good it's or longer term impact and we're unlikely to see the bulk of it until next year they'll take the oil industry, a little while the spend state legislature recess that went home having approve the budget. So the current fiscal year, which runs through July of 21.
And rubber will really make the road next year with coach July 21 State budget, Yeah, we'll have more color on the long run price of oil.
But I suspect will 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 us two years ago, but instead of coming out.
Smartly from the recession that we've been in the last two or three years. It looks like it's likely to persist for another year until someplace rationalize when the oil space.
Thank you.
Great I think that's probably why but I think so I want to think all of a r. teams as I've said from the great worth doing through the probably crisis. Some phone calls for participants they'd call hopefully we'll speak to safely next quarter, if not before thanks very much would that offered I think with them.
Essentially just concludes space called thank you for your participation you may know disconnect.
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