Q1 2020 Earnings Call
Which is available on T.I. liberties website, now I'd like to turn to call ever to G.C.I. 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. liberties cheap accounting officer in principle financial officer Blind women.
G.C. eyes, and see if or P. pounds will also be available during the kitchenaid answer questions related to Liberty broadband and Liberty trip advisor.
I hope you all 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 call the 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 with 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].
Yeah, It's business model on the cable business model in general it's proved resilient and the first quarter results were excellent.
As a part of those were both they also now see official launch of the first five G.'s service in Anchorage, you'll hear more about that from Pete pounds and some of the results in a minute.
So turning to lending tree, they reported solid first quarter results on Tuesday.
They did launch B.S.D. or any marketplace to match small businesses in need with lenders to facilitate access to funds under the P.D.P. program.
Doing their part during the pandemic as well they not the 1 million dollar donation to the Lendingtree Foundation for pandemic release.
They experienced 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 balance sheet mcquitty position with 51, then the cash on hand, and 370 million of capacity under there with all the 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 picked prioritising request 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 over the last several years, leading 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 subscript 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 highs in our 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% image.
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 ended for Barbara and they've successfully had a couple of bond offerings in the last few weeks and very attractive rates.
[noise] 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 on 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.
<unk> margin, we have no margin loan today, and we have much better set up for the longer term with the subtleties investment this investment better positions us to withstand the market volatility in economic though totally particularly in the travel space. So would 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.
A quarter N.G.C.I. Liberty has consolidated cash in cash equivalents $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 interest 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, putting financially physically 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 exclude the indemnification obligation and preferred stock that g. salary.
I don't 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 were 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 and are working with the department early education in Alaska Council at school administrators helps 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 and suspending disconnects and waiting late fees for residential customers and small businesses, who have been impacted by curbing.
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 on our customers.
We are fortunate to be in a defensive business.
Aren't 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 have had only two known cases of employees with pills at 19, both of whom are now fully recovered.
We had implemented a number of new practices to keep our employees and customers safe, including <unk>, several retail stores and to call centres.
Moving onto the five band five G. upgrade.
We're making continued progress on our five banned by G. deployment and Amperage and are now closed the 50 per cent complete.
Customers are seeing more of ours and faster speeds upgrade has also render improvements to four G.L.P.E. service.
Five g. more materially enhance our competitive position in the wireless market.
We are 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 <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 into one of last year and the recognition of 9 million previously unrecognized revenue from 2019.
That's quite a major role in the improvement. However, there was there were 12 million dollar operational improvement due to growth invader revenue the elimination of our lower 48 on the materials business and the benefits from our restructuring last year.
On the consumer side revenue was up 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 bring service.
I expect that some of those promotional cable modem customers will continue our service after the promotional period.
Hope that 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 a G.C.I. business.
Revenue 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 tap x.
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 decoded 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.
I'll nice now hand to call back over to Greg.
Great.
Exposed to Brian and the peak.
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.
<unk>, if you'd like to ask the question. Please signal by pressing star one on your tough sad.
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 have a car I signed please go ahead.
Let me think statement question are one on <unk>.
<unk>.
<unk> I understand.
We have cable modem subscribers.
<unk>.
It came down from 1920, probably is what are the food.
<unk>.
Gregory outfit.
<unk> why we chose that Robert.
Mm.
You looked at thanks.
Sure.
This for.
We're going to handle that Pete.
Yeah. So what's the the question was on data sets of the year over year. It was breaking up a little our side.
Yeah, sorry, yeah, the nine ready and reading wireless.
Oh, Yeah, Oh <unk>.
And why way down here.
Yeah. So we we had had promotions are much like the rest of the ended three 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. They didn't start to disconnect those and so it's a it's a loss of subscriber account, but it's not.
Revenue hit.
<unk>.
Okay.
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.
Had previously had.
When when this company living trip with spun out with a full margin loan we reduce that substantially the bearable price for with.
<unk>.
Stocks I'll, we took the proceeds we received from the one time given ended trip and paid down some of that margin alone and put the unbearable place for it and took the profits from the down so that we put part about pay down Marge alone. Unfortunately.
You know the late March period would the down graphs, we were hustling quickly to find alternatives to remove any margin long capability or a marginal exposure. We did talk to a number of private equity firms I knew chose so <unk>, 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 one to be help on synergistic and building value at trip and therefore Liberty trip was highest and there were also able to move quickly and we were able to come up with a structure that worked with 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 if I could please the first one that you mentioned <unk> upgrades and d. related benefits that you're getting on a four g. network do away you would frame.
Incremental renting them opportunities relative to the current wireless days since revenue.
These upgrades.
Monetizing 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. that 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> for G. five d.
<unk>.
Basically by implementing a full five band radio in concert with the upgrade to five G. New radio we've very substantially expanded the tools and with available to all cellphones will for G. and G. and what we're seeing is.
Doubling and tripling the average throughput that people experience 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 helpless gradually gainshare.
The marketplace flips a 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 are trading it some discounts look I think over the long term, it's been stabilized 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 is 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 that Miss price and by the market try and take advantage of it.
Thank you.
Alright, well now take our next question from deadly costs at city. Please go ahead.
Just falling all over the last question I mean, given the strength and charter price how willing would you be two degrees of sizes of arguing mall outlived pretty broad band when.
That comes to.
Well, we I 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. Let me point out the the margin balance is low.
In terms of compared to the size of our charter investment admirably, Bob them that having been said no. We're cautious in this environment around margin loans, we saw volatility across our portfolio on margin loans spoke with live nation kind of a living trip as we just discussed I'm somewhat cautious on that 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 I'll charter is.
We believe very well position in the market looking I brought then subs are growing you'll have to how the relative decline for the moment in video subs. Other continued expansion of origin reductions of <unk>.
The continued share reduction sure can't reduction, which is all driving fruit cantaloupe assured dramatically we remain quite optimistic on charter. So we'll look to try and take advantage of that at Liberty broke down and you see I live with it.
Yeah.
Alright, when I'll be taking our last question from Michael Crowding Centrust just go ahead.
Thanks for taking my question of a question for Ron Bunk and about Alaska. It sounds like you guys are providing a 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 over a lot of 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.
What what the state governments sufficiently 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 as a good shut down the very low price of oil.
Good news is that it's or longer term.
Back and we're unlikely to see the bulk of its until next year it'll take the oil industry, a little while to spend.
Legislature recess that went home having approved.
Budget for the current fiscal year, which runs through July 21.
The rubber would really be the road next year with coach July 21.
Budgets and we'll have more color on the long run 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.
Just for another year or two until someplace rationalize we'll do a fish.
Thank you.
Great I think that's probably why what I think.
So I want to think all of our teams as I said from the great worth doing through the public 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.
<unk> concludes stays call. Thank you for your participation you may know disconnect.
[music].
Ah.
HM.
[music] yeah.
Yeah.
[music].
[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 targets you have a question. Please press star one on your telephone.
<unk> as a reminder, this conference is being recorded as of February 26, 20 to 2020, I'd now like to turn the conference over to coordinate Johnson Chief portfolio officers Senior Vice President of Investor Relations. Please go on them.
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 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 FTP.
Forward looking statements speak only as good data this call and you see I'd Liberty Liberty broadband and Liberty trip advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained herein to reflect any change in do you see our liberty Liberty broadband or Liberty trip advisor is expectations with regard to.
Or any change in events conditions or circumstances on which any such statements are based on today's call. We will discuss certain non-GAAP financial measures for do you see our liberty, including adjusted OIBDA and adjusted OIBDA margin information regarding the comparable GAAP metrics, along with required definitions and reconciliations.
We didn't preliminary note and schedule one or two can be found in the earnings press release issued today, which is available on GTR Liberty's website now I'd like to turn the call over to do you see on Liberty, President and CEO, Greg Mccarthy.
Thank you.
Thank you Corning.
Good afternoon to all today speaking on the call well, how do you see I Libbeys, Chief Accounting Officer, and principal financial Officer, Brian.
Gee ice and CFO Pete pounds.
Well also be available during the Q, maybe answer questions related to Liberty broadband at Liberty trip advisor.
Well I hope you'll see some healthy.
I'd also like to thank all of our employees a management teams for their hard work and support to this called the banking crisis.
So let me begin by turning the G.I. Liberty.
Oh Gee I had the team has been very focused on keeping alaskans connected joined the pandemic.
There are strong that work has withstood substantial increases in that with Robert Baird.
They had been providing free entry level data plans for new customers and pre upgrades to existing customers.
And in particular, the Walker Threed data plans and Whiteside equipment for K 12 students and teachers.
Part of that is that they are participating in the Fccs keep Americans pledged.
Connected tied with other carriers across the nation.
<unk> business model on the cable business model in general it's proved resilient in the first quarter results export.
As a part of those were but they also announced the official launch of the first Fiveg surrogates in Anchorage, you'll hear more about that compete comps and some of their results in a minute.
So turning to Lendingtree, they reported solid first quarter results on Tuesday.
They did launch the S being running marketplace that small businesses in need would lenders to facilitate access to funds under the PPP problem. So theyre doing more part.
During the pandemic as well they announced the $1 million donation to the Lendingtree Foundation for pandemic relief.
They experienced relatively good performance in home and in charge in Q1, and the consumer segment more challenging.
There are diversification has helped them whether install more effectively than many others and their space.
<unk>.
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 proto prioritizing crushing the government health care and educational institutions for new connections upgrade and 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 moving turn 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 our 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 charter repurchased 5.2 million shares for $2.6 billion.
On liquidity front charters, very well positioned as well with $2.9 billion of cash and 4.7 billion availability hundred for bother and they've successfully had a couple of bond offerings in the last few roots of very attractive rates.
Turning trip advisor.
Mentioned that they have released their results.
But they have not had their conference call, yet, which is scheduled for tomorrow morning, So avoid coming on that.
Will comment lastly on trip advisor Liberty trip, the budget, which on March 16th announce investment banks are Tories of $325 million of 8% <unk> cumulative redeemable preferred stock.
Grigol hair, the founder of stories joined a trip and Liberty trip boards.
We also borrowed $40 million against the new gave a 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 repaying the full amount outstanding.
<unk> margin, we have no margin loan today, and we have much better set up for the longer term with the <unk> investment this investment better positions as to withstand the market volatility and 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.
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.
The 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 interesting charter 5.3 billion interest.
And Liberty broadband and an 800 million dollar interest in lending tree, all up nicely since quarter end.
Quarter, and you see 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 billion of debt, including financially Susan tower obligations that G.C. I.
She she always language a quarter and as defined in its credit agreement with 4.4 times compared to a maximum allowable leverage at 6.5 times G.C.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.I. Liberty.
Well that'll turn the call over to Pete to talk about G.C. as operating results.
Thanks, Brian.
Starting with a covert 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 to help students and teachers stay connected during the crisis.
Along with other carrier throughout the country. We're also participating in the keep American <unk> connected pledge, which include the opening up our wife I Hot spot for public use.
Sending 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 seemed 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 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 entered offensive business.
Our services are instrumental in allowing our employees and customers to work from home safely.
Our network has been for quite a test of its effectiveness and is 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 pill 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 down five you deployment in Anchorage and are now close to 50% complete.
Customers are seeing more bars and faster speeds it'd be 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're 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 results.
What a difference a year Max.
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.F. deal in 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.
That's quite a major role in the improvement.
However, there was villa 12 million dollar operational improvement due to growth invader revenue the elimination of our lower 48 time, the materials business and the benefits from our restructuring last year.
On the consumer side 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 bring service.
I expect that some of those promotional cable modem customers will did continue our service after the promotional period.
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 business.
Revenue was up 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, calf X., 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 quarter and depending on how long the curve in 19 challenges persist, we make them a little less than originally planned due to logistical challenges.
However, our primary capital project for the year.
<unk> wireless and encourage is on trial.
Online now have to call back over to Greg.
Great Thank spoke to Brian and the Pete.
Into our listening on the kids. We appreciate your continued into N.G.C.I. Liberty Liberty broadband and living trip advisor.
That operator, I like to open the line for questions.
<unk>, if you'd like to ask the question. Please signal by pressing started one on your tells you said.
Using a speaker phone piece make sure your you'd function is turned off to lower signal to meet your equipment again I just started one to ask a question.
I'll take our first question from James plus I'd have a car I sized just go ahead.
Let me think statement question are one <unk>.
<unk> okay.
Yeah.
Yeah, we've killed a lot of subscribers.
<unk>.
It came down from.
20, probably is what are the food and why would they drop you on your own.
Oh <unk>.
<unk>.
Which is that Robert cool things.
You look that thanks [noise].
Sure.
Why don't you can vote just for.
We're going to have about Pete.
Yeah. So what's the the question was on data sounds a year over year. It was breaking up a little our side.
Yeah, sorry, yeah, the non ready generating wireless.
Oh, Yeah, Oh <unk>.
And why way down there on 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 nodes 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.
<unk>.
<unk>.
Mmm.
Oh and Gray 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.
<unk> company living Triple spun out with a full margin loan we reduce that substantially the variable price for would.
That the stock.
We took the proceeds we received from the one time, giving into trip and paid down some of that margin alone and pause unbearable place for it and took the profits from the down so we.
We put part of that you pay down margin loan. 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 marginal exposure.
We did talk to a number of private equity firms I knew 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 with an extensive travel portfolio.
And the potential for won't be help on tend to just took and building value at trip in there for a living trip was highest and they were also able to move quickly and we were able to come up with the structure that worked with the two of us.
Great. Thank you.
Thank you.
Yeah.
Alright, well how seats or next cushion from Michael Roland City. Please go ahead.
Thanks in the 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 things since revenue.
From these upgrades and you look at not in the typing that in becoming more competitive.
And then just secondly, just any thoughts on how you look at the current market volatility and you know what it's meant for D.N.A.B. that counts for T.I. Liberty and for Liberty broadband.
[noise] or what Peter or run started on the first.
Oh I'll take a stab at the.
For G. five g.
Fish.
Basically by implementing a full five band radio in concert with the upgrade to five Judy New radio we've very substantially expanded the total bandwidth available to all cell phones, both for G. and G. and what we're seeing is.
A doubling or tripling the average throughput that people experience on there.
Oh for G. phones that little just 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 reduce churn helpless gradually gang share.
In the marketplace flips a 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 at some discounts look I think over the long term it's been stabilized the business, that's an opportunity for G.I. Liberty and frankly would be broadband to take.
<unk> and either so puts against it I stopped back we have bloodstock back at both companies. We have issue 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 Deadly Cross City. Please go ahead.
Just falling all over the last question I mean, given the strength and charter price how willing would you be two degrees of sizes of arguing mall outlived pre brogden when.
That comes due.
Discussed I'm somewhat cautious on that but we'll we'll pay attention and 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 look at how broadband subject grown look at how the relative decline for the moment in video subs.
You need expansion of <unk> reductions of <unk> that continued share reduction sure cat reduction, which is all driving free cash flow per share dramatically.
We remain quite optimistic controller, so we'll look to try and take advantage of that at Liberty bogged down N.G.C. I already.
<unk>.
Alright.
<unk> our last question from Michael <unk> Centrust just go ahead.
Thanks for taking my question is a question for Ron Duncan about Alaska. It sounds like you guys are providing and great service for Alaska or a second impacted by code but.
As far as the economy goes.
Last time, the price of oil decline over a lotta talk about austerity program at the state government level and.
<unk> spending and potential cancellation of state funded projects it might exacerbate impacts on the economy I just wondering if your comments on.
What you know with the state governments.
Right now as it relates to a dealing with the lower price of oil.
<unk> the <unk>.
Stayed obviously it gets caught in a double whammy folks between the economic impact of the corporate shuts down and agree very low price of oil.
Good news is good it's or longer term.
Back and we're unlikely to see the bulk of its until next year they'll take the oil industry, a little while the spend.
Legislature recess that went home having to prove.
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 price of oil.
By then 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 happened to 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 first.
Just for another year or two until some friends rationalize when the Royals place.
Thank you.
Great I think that's our land.
So I want to think all of a r. teams as I said from the great work doing to the public crisis. Some phone call. It you pour 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 today, it's called thank you for your participation you may know disconnect.