Q4 2023 Liberty Broadband Corp Earnings Call

February 16, 2024

Operator: Subs by www.zeoranger.co.uk Welcome to the Liberty Broadband 2023 Year-End Earnings Call. During the presentation, all participants will be in a listen-only mode.

Operator: Okay. Welcome to the Liberty Broadband 2023 Year-End Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star one on your telephone keypad. As a reminder, this conference is being recorded today, 16 February 2024. I would now like to turn the call over to Shane Kleinstein, Senior Vice President of Investor Relations. Please go ahead.

Welcome to the Liberty broadband 2023 year end earnings call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press star one on your telephone keypad. As a reminder, this conference is being recorded today February 16th 2024.

Operator: Afterward, we will conduct a question-and-answer session. At that time, if you have a question, please press star 1 on your telephone keypad. As a reminder, this conference is being recorded today, February 16, 2024. I would now like to turn the call over to Shane Kleinstein, Senior Vice President of Investor Relations. Please go ahead.

Speaker Change: I would now like to turn the call over to Shane Glenn Chin Senior Vice President of Investor Relations. Please go ahead.

Shane Kleinstein: Thank you. Before we begin, we'd like to remind everyone that this call includes 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 mentioned in the most recent Forms 10-K filed by Liberty Broadband and Liberty TripAdvisor with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Broadband and Liberty TripAdvisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband or Liberty TripAdvisor's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted OIBDA.

Shane Kleinstein: Thank you. Before we begin, we'd like to remind everyone that this call includes 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 mentioned in the most recent forms 10-K filed by Liberty Broadband and Liberty Trip Advisor with the SEC. These forward-looking statements speak only as of the date of this call, and 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 in Liberty Broadband's or Liberty Trip Advisor's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

Speaker Change: Thank you before we begin we'd like to remind everyone that this call includes 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 mentioned in the most recent forms 10-K, followed by Liberty broadband and Liberty Tripadvisor with.

Speaker Change: The SEC.

Speaker Change: These forward looking statements speak only as of the date of this call and 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 in liberty broadband or liberty tripadvisor its expectations with regard there to or any change in events conditions or a circumstance.

Speaker Change: It says on which any such statement is based.

Shane Kleinstein: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted OIDA. Information regarding the comparable GAAP metrics, along with the required definitions and reconciliations, including a preliminary note and Schedules 1 and 2, can be found in the earnings press release issued today, as well as earnings releases for prior periods, which are available on Liberty Broadband's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO. Thank you, Shane, and good morning.

Speaker Change: On today's call people will discuss certain non-GAAP financial measures for Liberty broadband, including adjusted OIBDA.

Shane Kleinstein: Information regarding the comparable GAAP metrics, along with the required definitions and reconciliations, including preliminary note and schedules 1 and 2, can be found in the earnings press release issued today, as well as earnings releases for prior periods, which are available on Liberty Broadband's website. Now I'd like to turn the call over to Greg Maffey, Liberty's President and CEO.

Speaker Change: Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and schedules one and two can be found in the earnings press release issued today as well as earnings releases from prior periods, which are available on Liberty broadband website now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Greg Maffei: Thank you, Shane, and good morning. Today, speaking on the call, we will have also Liberty Broadband's Chief Accounting Officer and Principal Financial Officer, Brian Wendling. Ron Duncan, CEO of GCI, and Pete Pounds of GCI will also be available to answer questions. During Q&A, we will also be available to answer questions related to Liberty TripAdvisor. So I'm going to begin with Liberty Broadband. We resume repurchases of our Liberty Broadband shares using proceeds from the Charter share repurchases sales in October. From 1 November, excuse me, 1 November to the end of January, we repurchased $385 million of proceeds received $385 million of proceeds from Charter sales and spent $255 million on LBRD repurchases.

Gregory B. Maffei: Thank you Shane and good morning.

Gregory B. Maffei: Today speaking on the call, we will also have Liberty Broadband's Chief Accounting Officer and Principal Financial Officer, Brian Wendling. Ron Duncan, CEO of GCI, and Pete Pounds of GCI will also be available to answer questions. During Q&A, we will also be available to answer questions related to Liberty Trip Advisor. So I'm going to begin with Liberty Broadband. We resumed repurchases of our Liberty Broadband shares using proceeds from the charter share repurchase sales in October.

Gregory B. Maffei: Today speaking on the call. We will have also liberty broadband <unk>, Chief Accounting Officer, and principal financial Officer, Brian Wendling.

Ron Duncan C O G C. I am Pete pounds of C. C. GCI will also be available to answer questions.

Gregory B. Maffei: During Q&A, we will also be available to answer questions related to Liberty trip advisor, so I'm going to begin with Liberty broadband.

Gregory B. Maffei: We resumed repurchases of our Liberty broadband shares using proceeds from the charter share repurchases sales in October.

Gregory B. Maffei: From the 1st of November, excuse me, the 1st of November to the end of January, we repurchased $385 million of proceeds, received $385 million of proceeds from charter sales, and spent $255 million on LBRD repurchases. Some of the last year, under our 26% fully diluted ownership cap, the early 2024 grants the charter made slowed down their repurchases or our requirements for them to be re And therefore, we do not expect to sell into the charter buyback market in the next few months.

From the first of November.

Gregory B. Maffei: So first of all wondering November to the end of January we repurchased $385 million of proceeds received your need $5 million of proceeds from charter sales.

Gregory B. Maffei: And spent $255 million L. B R D repurchases.

Greg Maffei: Summer of last year, under our 26% fully diluted ownership cap, the early 2024 grants that Charter made slowed down their repurchases or our requirements to be repurchased, and therefore, we do not expect to sell into the Charter buyback in the next few months. Once we exceed the cap of 26%, we plan to resume the LBRD buyback. Looking at Charter itself, we certainly acknowledge there were near-term headwinds in the quarter, which impacted broadband unit growth. The Q4 was also felt to delay the impact from the Disney dispute at the end of the Q3. There's been a consistent trend in 2023 of increased competition from Fixed Wireless, but we do believe the competitive noise will lessen over time. Fixed Wireless assets will have capacity issues over the long term, and the operators have been clear on their limitations.

Gregory B. Maffei: Similar to last year under our 25, 26% fully diluted our ship cap.

Gregory B. Maffei: The early 'twenty 2020 for grants the charter made slowed down their purchases or our requirements to be repurchased and therefore, we do not expect to sell into the charter back buyback in the next few months.

Gregory B. Maffei: Once we exceed the cap of 26%, we plan to resume the LBRD buyback. Looking at Charter itself, we certainly acknowledge that we're near-term headwind and the quarter which impacted broadband unit growth. The fourth quarter also felt the delayed impact from the Disney dispute at the end of the third quarter.

Once we exceed the cap of 26% we plan to pursue the L. B R D buyback.

Gregory B. Maffei: Looking at charter itself.

Gregory B. Maffei: We certainly acknowledge there were near term headwinds.

Gregory B. Maffei: In the quarter, which impacted broadband unit growth.

Gregory B. Maffei: The fourth quarter was also.

Gregory B. Maffei: She felt the delayed impact from the Disney dispute at the end of the third quarter.

Gregory B. Maffei: Ah Theres been a consistent trend in 2023 of increased competition from fixed wireless, but we do believe.

Gregory B. Maffei: There's been a consistent trend in 2023 of increased competition for fixed wireless, but we do believe the competitive noise will lessen over time. Fixed wireless assets will have capacity issues over the long term, and the operators have been clear on their limitations, and we do believe that bandwidth demands will continue to increase among consumers, which will favor higher speeds. We are long-term shareholders. We are confident that strategic investments that Charter is making will generate excellent returns and accelerate growth over the next few periods. Charter assets will provide the highest speed and the best converged offering at the most competitive prices for consumers. Spectrum One is continuing to drive mobile growth and reduce churn; Charter was able to add 2.5 million mobile line net ads during 2023. That's nearly 50% growth over the prior year, and we saw no uptick in churn from the initial cohorts who were rolling off the promotional periods in the fourth quarter. As you would expect, internet plus mobile customers are stickier than internet-only customers.

The competitive noise will lessen over time.

Gregory B. Maffei: Fixed wireless access will have.

Gregory B. Maffei: Capacity issues over the long term and the operators have been clear on their limitations and we do believe.

Greg Maffei: We do believe that bandwidth demands will continue to increase among consumers, which will favor higher speeds. We are long-term shareholders. We are confident that strategic investments that Charter is making will generate excellent returns and accelerate growth over the next few periods. Charter assets will provide the highest speeds and the converged off of a converged offering at the most competitive prices for consumers. Spectrum One is continuing to drive mobile growth and reducing churn. Charter was able to add 2.5 million mobile line net ads during 2023. That's a nearly 50% growth over the prior year. We saw no uptick in churn from the initial cohorts who were rolling off the promotional periods in Q4. As you would expect, the internet plus mobile customers are stickier than internet-only customers. In other positive news, the rural expansion is beating penetration, RPU, and ROI targets.

Gregory B. Maffei: Bandwidth demands will continue to increase among consumers, which will favor higher speeds.

We are long term shareholders.

Gregory B. Maffei: We are confident the strategic investments that charter was making will generate excellent returns and accelerate growth.

Gregory B. Maffei: Over the next few periods.

Gregory B. Maffei: Charter assets will provide the highest speeds and the converged off of a converged offering at the most competitive prices for consumers.

Gregory B. Maffei: Spectrum, one is continuing to drive mobile growth and reducing churn.

Gregory B. Maffei: Charter was able that $2 5 million mobile line net adds during 2023.

Gregory B. Maffei: Nearly 50% growth over the prior year.

Gregory B. Maffei: And we saw no uptick in churn from the initial cohorts, who are rolling off the promotional periods in the fourth quarter.

Gregory B. Maffei: As you would expect the Internet plus mobile customers are stickier than internet only customers.

Gregory B. Maffei: In other positive news, Charter's world expansion is beating penetration, ARPU, and ROI targets. The network evolution of Charter remains on course, with fast, low-cost upgrades at about $100 per pass. We don't believe competitors can replicate that upgrade path over their full footprint. As management has outlined, the long-term CapEx outlook, excluding BEED, is expected to maturely step down from 2027 to a normalized level when we touch on Liberty Trip. We filed an amendment to our 13D.

Gregory B. Maffei: The other positive news the rural expansion is beating penetration <unk> and ROIC targets.

Greg Maffei: The network evolution at Charter remains on course with fast, low-cost upgrades at about $100 per passing. We don't believe competitors can replicate that upgrade path over their footprint. As management has outlined, the long-term CapEx outlook, excluding BEAD, is expected to materially step down from 2027 to normalized levels. Let me touch on Liberty Trip. We filed an amendment to our 13D. We were authorized by the board to engage in acquisition discussions, and we will not comment further on those discussions unless definitive documents are executed or discussions are terminated. Looking at TripAdvisor itself, TripAdvisor had strong 2023 operating results, particularly in the back half. Q4 revenue was up 10% over the prior year. Q4 EBITDA and margin expansion exceeded expectations. There was outperformance at the recently renamed brand TripAdvisor.

Gregory B. Maffei: The network evolution of charter remains on course with fast low cost upgrades at about $100 per passing.

Gregory B. Maffei: We don't believe competitors can replicate that upgrade path over their footprint footprint.

Gregory B. Maffei: As management has outlined.

Gregory B. Maffei: The long term capex outlook, excluding bead.

Gregory B. Maffei: Expect it to materially stepped down from.

Gregory B. Maffei: From 2027 to normalized levels.

Gregory B. Maffei: Let me touch on Liberty trip.

Gregory B. Maffei: We filed an amendment to our 13D.

Gregory B. Maffei: Okay.

Gregory B. Maffei: We were authorized by the board to engage in acquisition discussions, and we will not comment further on those discussions unless definitive documents are executed or discussions are terminated. Looking at TripAdvisor itself, TripAdvisor had a strong 2023 operating. Results, particularly in the back half; Q4 revenue was up 10% over the prior year before EBITDA and margin expansion exceeded expectations. There was outperformance at the recently renamed brand TripAdvisor. Viator's breakeven profitability was reached earlier than anticipated.

Gregory B. Maffei: We were authorized by the board to engage in acquisition discussions.

Gregory B. Maffei: And we will not comment further on those discussions unless definitive documents are executed or discussions or terminated.

Gregory B. Maffei: Looking at Tripadvisor itself.

Gregory B. Maffei: Tripadvisor had a strong 2023 operating <unk>.

Gregory B. Maffei: Results, particularly in the back half.

Gregory B. Maffei: Q4 revenue was up 10% over the prior year.

Gregory B. Maffei: Q4, EBITDA and margin expansion exceeded exceeded expectations.

Gregory B. Maffei: There was outperformance at the recently renamed brand to Tripadvisor.

Greg Maffei: The Viator break-even profitability was reached earlier than anticipated, and there were marketing efficiencies at brand TripAdvisor and Viator that allowed us to have better than expected performance. We continue to move on cost-saving actions, which are improving margins. We've seen great, successful diversification of the revenue at TripAdvisor, with the Viator in the forefront nearly being 50% of 2023 revenue. In comparison, they were less than 10% in 2015, and its experiences are now almost half the level of brand TripAdvisor. We've also seen increased repeat rates among customers. For example, at Viator, the Q4 gross booking value from repeat customers exceeded new travelers for the first time. Management is focused on long-term strategic opportunities and Gen AI-driven product enhancements like TripTools to drive engagement and growth, and we are optimistic about those results. And with that, I'll turn it over to Brian to discuss the financials.

Gregory B. Maffei: The via towards breakeven profitability was reached.

Gregory B. Maffei: Earlier than anticipated.

Gregory B. Maffei: And there were marketing efficiencies at Brand, TripAdvisor, and Viator that allowed us to have better than expected performance. And we continue to move on cost-saving actions, which are improving margins. We've seen great successful diversification of the revenue at TripAdvisor with the Viator and the Fork, nearly 50% of 2023 revenue. In comparison, they were less than 10% in 2015, and their experiences are now half, almost half the level of brand tributary. We've also seen increased repeat rates among customers. For example, at Viator. The Q4 gross booking value from repeat customers exceeded new travelers for the first time.

Gregory B. Maffei: And they were marketing efficiencies at brand Tripadvisor and viator that allowed us to have better than expected performance in there.

Gregory B. Maffei: We continue to move on cost saving actions, which were improving margins.

Gregory B. Maffei: We've seen great successful diversification of the revenue at Tripadvisor with the biotech and the fork.

Gregory B. Maffei: Nearly being 50% of 2023 revenue.

Gregory B. Maffei: In comparison, they were less than 10% in 2015.

Gregory B. Maffei: And it's experiences are now half almost half the level of play on Tripadvisor.

Gregory B. Maffei: We've also seen increased repeat rates among customers for example at viator.

Gregory B. Maffei: Q4, gross booking value from repeat customers exceeded new travelers for the first time.

Brian J. Wendling: Managers are focused on long-term strategic opportunities and Gen AI driven product enhancements like trip tools to drive engagement and growth, and we are optimistic about those results. And with that, I'll turn it over to Brian to discuss the finale. Thank you, Greg.

Gregory B. Maffei: Management is focused on long term strategic opportunities and Gen AI driven product enhancements like trip tools to drive engagement and growth.

Gregory B. Maffei: And we think we are optimistic about those results and with that I'll turn it over to Brian to discuss the financials.

Brian J. Wendling: At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $158 million, which included $79 million of cash at GCI. The value of our charter investment based on our shares held as of February 1st and charter share prices of yesterday's close was $13.5 million. At quarter end, Liberty Broadband had a total principal amount of debt of $3.8 billion.

Brian Wendling: Thank you, Greg. At quarter-end, Liberty Broadband had consolidated cash and cash equivalents of $158 million, which includes $79 million of cash at GCI. The value of our Charter investment based on our shares held as of 1 February and Charter share prices of yesterday's close was $13.5 billion. At quarter-end, Liberty Broadband had a total principal amount of debt of $3.8 billion. Note that this excludes the preferred stock. We are updating our annual tax rate guidance on our Charter sales for 2024 to low double digits. This conservatively assumes the DRD dividend received deduction does not apply to Charter sales for the book minimum tax under the Inflation Reduction Act. We are accruing for this higher tax rate in 2024 while additional guidance from the IRS and Treasury is pending.

Brian J. Wendling: Thank you Greg at quarter end Liberty broadband had consolidated cash and cash equivalents of $158 million, which includes $79 million of cash at GCI.

Brian J. Wendling: The value of our charter investment based on our shares held as of February 1st.

Brian J. Wendling: Charter share price as of yesterday's close was $13 5 billion.

Brian J. Wendling: At quarter end Liberty broadband had a total principal amount of debt of $3 8 billion note that this excludes the preferred stock.

Brian J. Wendling: Note that this excludes the preferred stock. We are updating our annual tax rate guidance on our charter sales for 2024 to low double-digits. This conservatively assumes the DRD, the dividend received deduction, does not apply to charter sales for the book minimum tax under the Inflation Reduction Act. We are accruing for this higher tax rate pending additional guidance from the IRS and Treasury. I note that any book minimum tax paid for 2024 will carry forward to offset regular income tax in future years to the extent regular income tax exceeds, making this more of a timing impact.

Brian J. Wendling: We are updating our annual tax rate guidance on our charter sales for 2024 to low double digits. This conservative look conservatively assumes the D. R. D. The dividend received deduction does not apply to charter sales for the book minimum tax under the inflation reduction Act. We are accruing for this higher tax rate in 2024 wall.

Brian J. Wendling: Additional guidance from the IRS and Treasury is pending.

Brian Wendling: I note that any book minimum tax paid for 2024 will carry forward to offset regular income tax in future years to the extent regular income tax exceeds the book minimum tax, making this more of a timing impact. Consistent with prior years, we're not providing specific tax guidance beyond the current year. Looking at GCI, 2023 was a good year for the company with record revenue and Adjusted OIBDA. GCI generated solid free cash flow and distributed $65 million of dividends to Liberty Broadband during the year. For the full year, revenue and Adjusted OIBDA grew 1% to $931 million and $361 million, respectively, driven by the strong performance in business data revenue offset by declines in other revenue, primarily video and voice. In the fourth quarter, revenue was flat, and Adjusted OIBDA decreased 1%.

I note that any book minimum tax paid for 2024 will carryforward to offset regular income tax in future years to the extent regular income tax exceeds the book minimum tax.

Brian J. Wendling: This is more of a timing impact.

Brian J. Wendling: Consistent with prior years, we're not providing specific tax guidance. Looking at GCI, 2023 was a good year for the company, with record revenue and Adjusted Waivers. GCI generated solid free cash flow and distributed $65 million of dividends to Liberty Broadband. For the full year, revenue and adjusted OIB, GCI grew 1% to $931 million and $361 million, respectively, driven by the strong performance in business data revenue, offset by declines in other revenue, primarily video. In the fourth quarter, revenue was flat and adjusted away, but it decreased one percent.

Brian J. Wendling: Consistent with prior years, we're not providing specific tax guidance beyond the current year.

Brian J. Wendling: Looking at G. C. I 2023 was a good year for the company with record revenue and adjusted OIBDA GCI generated solid free cash flow and distributed $65 million dividends to liberty broadband during the year.

Brian J. Wendling: For the full year revenue and adjusted OIBDA grew 1% to $931 million and $361 million, respectively, driven by the strong performance.

Brian J. Wendling: Performance in business data revenue.

Brian J. Wendling: Offset by declines in other revenue, primarily video and voice and.

Brian J. Wendling: In the fourth quarter revenue was flat and adjusted OIBDA decreased 1%.

Brian J. Wendling: While we continue to see strong business data growth, this was offset by declines in other revenue and increased costs, primarily in S&P. Operationally, GCI added 1,400 consumer cable modem subscribers and 4,800 consumer wireless customers. GCI's leverage as defined in its credit agreement was 2.9 times at year-end, and GCI had $397 million of undrawn capacity under its revolvers. We should note that subsequent to year-end, GCI paid down an incremental $40 million under its revolving... In 2023, GCI spent $216 million on capital expenditures, net of proceeds received from federal and state grant funding.

Brian Wendling: While we continue to see strong business data growth, this was offset by declines in other revenue and increased costs, primarily in SG&A. Operationally, GCI added 1,400 consumer cable modem subscribers and 4,800 consumer wireless customers in 2023. GCI's leverage, as defined in its credit agreement, was 2.9 times at year-end, and GCI has $397 million of undrawn capacity under its revolver. We'd note that subsequent to year-end, GCI paid down an incremental $40 million under its revolving credit facility. In 2023, GCI spent $216 million on capital expenditures net of proceeds received from federal and state grant funding. This is above prior expectations, largely due to the timing of receiving certain grant proceeds.

Brian J. Wendling: While we continue to see strong business day to growth. This was offset by declines in other revenue and increased costs primarily in SG&A.

Brian J. Wendling: Operationally GCI added 1400, consumer cable modem subscribers and 4800 consumer wireless customers in 2023.

Brian J. Wendling: Gci's leverage as defined in its credit agreement was two nine times at year end and GCI has $397 million of Undrawn capacity under its revolver.

Brian J. Wendling: We note that subsequent to year end GCI paid down an incremental $40 million under its revolving credit facility.

Brian J. Wendling: In 2023, Juicy I spent $216 million on capital expenditures net of proceeds received from federal and state Grant funding.

Brian J. Wendling: This is above prior expectations, largely due to the timing of receiving certain grants. GCI's net capital expenditures for 2024 are expected to be approximately $200 million, related to additional high-returning investments in middle- and last-mile connectivity with continued network expansion in our most important markets in rural Alaska, including Bethel and the AU Illusions Fiber Project. Taking a proactive approach to rural connectivity projects is critical to securing necessary government funding

Brian J. Wendling: This is above prior expectations largely due to the timing of receiving certain grant proceeds G.

Brian Wendling: GCI's net capital expenditures for 2024 are expected to be approximately $200 million related to additional high-returning investments in middle and last-mile connectivity with continued network expansion in our most important markets in rural Alaska, including Bethel and the Aleutians fiber projects. Taking a proactive approach in rural connectivity projects is critical to securing necessary government funding. And with that, I'll turn the call back over to Greg.

Brian J. Wendling: <unk> net capital expenditures for 2024 are expected to be approximately $200 million related to additional high returning investments in middle and last mile connectivity with continued network expansion and our most important markets in rural Alaska, including Bethel NDA evolutions fiber projects taking.

Brian J. Wendling: Taking a proactive approach in rural connectivity projects is critical to securing necessary government funding and with that I'll turn the call back over to Greg.

Greg Maffei: Thank you, Brian. To our listening audience, we appreciate your continued interest in Liberty Broadband and Liberty TripAdvisor. And with that, operator, I'd like to open the line for questions.

Gregory B. Maffei: And with that, I'll turn the call back over to Greg. Thank you, Brian. And to our listening audience, we appreciate your continued interest in Liberty Broadband and Liberty TripAdvisor. And with that, operator, I'd like to open the line for questions. Our first questions come from the line of Michael Rollins with Citi. Please proceed with your question. Thanks, good morning.

Gregory B. Maffei: Thank you Brian.

Gregory B. Maffei: And to our listening audience. We appreciate your continued interest in Liberty broadband and Liberty Tripadvisor.

Gregory B. Maffei: And with that operator, I'd like to open the line for questions.

Operator: Thank you. We will now be conducting a question-and-answer session. Our first questions come from the line of Michael Rollins with Citi. Please proceed with your questions.

Gregory B. Maffei: Thank you we will now be conducting a question and answer session. Our first questions come from the line of Michael Rollins with Citi. Please proceed with your questions.

Michael Rollins: Thanks. Good morning. Two questions. First, what are your expectations as to whether or not the ACP program will be discontinued? And can you share your thoughts on the possible implications for each of GCI and Charter? And then secondly, just given the comments on being a long-term investor in Charter, does the current price for Charter change Liberty's interest to sell shares into Charter's buyback when needed to stay under the 26% cap? Thanks.

Michael Rollins: Thanks. Good morning, two questions first what are your expectation as to whether or not the ECP program will be discontinued and can you share your thoughts on the possible implications for each of the GCI and charter.

Operator: Two questions. First, what are your expectations as to whether or not the ACP program will be, and can you share your thoughts on the possible implications for each of GCI and Charter? And then, secondly, just given the comments on being a long-term investor in Charter, does the current price for Charter change Liberty's interest to sell shares into Charter's buyback when needed to stay under the 26% cap? Thanks.

Speaker Change: And then secondly, just given the comments on being a long term investor in charter.

Speaker Change: The current price for charter change Liberty's interest to sell shares into charters buyback when needed to stay under 26% cap. Thanks.

Greg Maffei: Thank you for the question. I'll address ACP and the impact to Charter, my expectations, and then Ron, maybe you'd like to talk about ACP and potential impact to GCI, and then I'll come back and talk about buyback. So whether ACP will be renewed or not is certainly a guess into the woolly world of Washington. There is an enormous amount of support for it among many of the congressmen and senators, to our knowledge, and many of them are in red states, which actually receive a majority of the ACP proceeds. So there is some reason for optimism, but trying to assume that there is a path forward that is clear and crisp in Washington is something that's beyond my capabilities. The impact is a little unknown. Many of the ACP customers at Charter were customers prior to the ACP program.

Speaker Change: Thank you for the question I'll address a C P.

Speaker Change: And and the impact of charter my expectations, and then Ron maybe you'd like to talk about ACP and potential impact to GCI.

Gregory B. Maffei: Thank you for the question. I'll address ACP and its impact on Charter. My expectations, and Ron, maybe you'd like to talk about ACP and its potential impact on GCI, and then I'll come back and talk about buyback. So, uh... Whether ACP will be renewed or not is certainly a guess into the future. The Wooley World of Washington.

Ron: And then I'll come back and talk about buyback.

Ron: So.

Speaker Change: You know, whether ACP will be renewed or not is a certainly a guests into the.

Speaker Change: The Willie World of Washington.

Gregory B. Maffei: There is an enormous amount of support for it among many of the congressmen and senators, to our knowledge, and many of them are in red states, which actually receive a majority of the ACP proceeds. So there is some reason for optimism, but trying to assume that there is a path forward that is clear and crisp in Washington is something that's beyond my capability to predict. A little unknown, many of the ACP customers at Charter were customers prior to the ACP program. We think the demands for bandwidth, and the requirements that customers have for bandwidth, have grown. One of the complaints among some people in Washington is that this is a subsidy program, which isn't necessary because customers want the bandwidth, and that is a reason why some may not vote against it.

Speaker Change: There is a enormous amount of support for demand.

Speaker Change: Many.

Speaker Change: Okay.

Speaker Change: The congressmen and senators to our knowledge and many of them are red states, which actually receive a majority of the proceeds.

Speaker Change: There is some reason for optimism, but trying to assume that there was a path forward that is clearing crisp in Washington is something that's beyond my capabilities.

Speaker Change: The <unk>.

Impact.

Speaker Change: A little unknown many of the ACP customers at charter where customers prior to the ACP program we.

Greg Maffei: We think the demands for bandwidth, the requirements that customers have for bandwidth have grown. One of the complaints among some people in Washington is that this is a subsidy program, which isn't necessary because customers want the bandwidth, and that is a reason why some may not vote against it. That, of course, is helpful for us in securing ACP funding, but it may also be correct that it indicates most customers will continue to take our broadband even in the absence of ACP. So it's hard to speculate on how much impact eliminating ACP would have or the cessation of ACP would have, but it's clearly not a positive on the margin. Ron, would you want to add anything?

Speaker Change: We think the demand for bandwidth.

Requirements that customers have for bandwidth or only a crown.

Speaker Change: One of the complaints amongst some.

Speaker Change:

Speaker Change: People in Washington is that this is a subsidy program, which isn't necessarily because.

Speaker Change: Our customers want the bandwidth.

That is a reason why some may not vote against that of course is not.

Gregory B. Maffei: That, of course, is not helpful for us in securing ACP funding, but it may also be correct that it indicates most customers will continue to take our broadband even in the absence of ACP. So it's hard to speculate on how much impact eliminating ACP would have or the cessation of ACP would have, but it's clearly not a positive on the market. Ron, would you want to add anything?

Speaker Change: It is helpful for us in getting securing ACP pumping, but it may also be correct that indicates most customers will continue to.

Speaker Change: Take our broadband even in the absence of ACP.

Speaker Change: Hard to speculate on how much impact.

Speaker Change: Eliminating ACP would have or the cessation of the ACP would have but its not a positive on the margin.

Speaker Change: Ron would you want to add anything.

Ron Duncan: Just briefly, we're expecting minimal impact from an ACP discontinuance at GCI. Most of the customers on ACP were broadband customers to begin with, and we have budgeted a slight increase in bad debt and anticipate probably a little bit of an uptick in churn. I think ACP for us was doing more to reduce the churn ratio among customers who may struggle from bill to bill. But at the end of the day, I doubt that the effects of the ACP shift will be perceptible on the broadband side. We do believe there's an upside opportunity on wireless because nationwide, half of ACP goes to wireless providers.

Ron: Just briefly we're expecting minimal impact from the ACP discontinuance of GCI most of the customers on ACP, where broadband customers to begin with.

Ron Duncan: Just briefly, we're expecting minimal impact from an ACP discontinuance at GCI. Most of the customers on ACP were broadband customers, to begin with, and... We have budgeted a slight increase in bad debt and anticipate probably a little bit of an uptick in churn, http://TheBusinessProfessor.com to produce the churn ratio among customers who may struggle from bill to bill. But at the end of the day, I doubt that the effects of the...

Ron: We have budgeted a slight increase in bad debt and anticipate probably a little bit of an uptick in churn I think ACP for us was doing more to reduce the churn ratio among customers, who may struggle from bill to bill, but at the end of the day.

Ron: The effects of the ACP shift will be for <unk>.

Ron Duncan: Transcripts provided by Transcription Outsourcing, LLC. receptive on the broadband side, we do believe there's an upside opportunity on wireless because, nationwide, half of ACP goes to wireless providers. And with our GCI Plus offering in the market being hugely less expensive than the least expensive AT&T and Verizon wireless offerings. The disappearance of ACP for wireless should create a competitive opportunity for us to grow wireless subs at the expense of AT&T and Verizon as they phase their customers off of ACP. So we see more positive things coming out of it from the wireless side. We expect very little impact on the wired side.

Ron: Optical on the broadband side, we do believe there is an upside opportunity on wireless because nationwide half of ACP goes to wireless providers.

Ron Duncan: With our GCI Plus offering in the market being hugely less expensive than the least expensive AT&T and Verizon wireless offerings, the disappearance of ACP for wireless should create a competitive opportunity for us to grow wireless subs at the expense of AT&T and Verizon as they phase their customers off of ACP. We see more positive coming out of it from the wireless side and expect very little impact on the wired side.

Ron: And with our GCI plus offering in the market being.

Ron: Hugely less expensive than the west.

Ron: The least expensive AT&T and Verizon wireless offerings, the disappearance of ACP for wireless should create a competitive opportunity for us to grow wireless subs at the expense of AT&T and Verizon as they face their customers. They see P. So we see more positive coming out of it from the wireless side and.

Ron: Very little impact on the wired side.

Ben Oren: I'd just add on that all those statements about wireless and the impact are likely to have the same impact or effect on Charter with how we're pushing our Spectrum One program. On the buyback issue, I think it's the case that we believe Charter is long-term interested in the question about whether to seek to raise the cap or continue to, and therefore, not sell in shares to Charter or continue to buy back at our own on the LBRD. I think, look, you see us spending the majority of proceeds from Charter on LBRD repurchases. We've also seen some amount of debt reduction at LBRD, use of the capital for that.

Greg Maffei: I'd just add on that all those statements about wireless and the impact are likely to have the same impact or effect on Charter with how we're pushing our Spectrum One program. On the buyback issue, I think it's the case that we believe Charter is long-term interested in the question about whether to seek to raise the cap or continue to, and therefore, not sell in shares to Charter or continue to buy back at our own on the LBRD. I think, look, you see us spending the majority of proceeds from Charter on LBRD repurchases. We've also seen some amount of debt reduction at LBRD, use of the capital for that.

Gregory B. Maffei: I'd just add that all those statements about wireless and the impact are likely to have the same impact or affect the charter with how we're pushing that, our Spectrum One program. On the buyback issue, I think it's... The case that we believe is long-term interesting and the question about whether to seek to raise the cap or continue to and therefore not sell shares to Charter or continue to buy back at our own on the LBRD. I think, look, you see us spending the majority of proceeds from Charter on LBRD repurchases. We've also seen some amount of debt reduction at LBRD, and the reality is, is because we're buying at a substantial discount to the LBRD price via the LBRD price to the underlying charter. We still have the same set of incentives to use our capital for share of purchase and LBRD rather than raise the cap today because the discount is so much larger than the tax leaked. So I'm not sure it actually changes our program.

Speaker Change: I'd just add on that but all those statements about wireless and the impact are likely to have the same impact or affect the charter was.

Speaker Change: How we're pushing that.

Our spectrum spectrum one program.

Speaker Change: On the buyback issue I think it's.

Speaker Change: The case that we believe broader long term interesting.

Speaker Change: Uh huh.

Speaker Change: And the question about whether to raise seek to raise the cap or.

Speaker Change: We're continuing to read and therefore, not selling shares to charter or continue to buy back at around.

Speaker Change: Our own on the L. P. R. D. I think look you see us spending the majority of proceeds are.

From charter a L. B R. D repurchases you will also see some amount of.

Speaker Change: Debt reduction and that'll be our day use of the capital for that.

Ben Oren: The reality is, because we're buying at a substantial discount to the LBRD price, via the LBRD price to the underlying Charter, we still have the same set of incentives to use our capital for share repurchase at LBRD rather than raise the cap today, because the discount is so much larger than the tax leakage. I'm not sure it actually changes our program.

Greg Maffei: The reality is, because we're buying at a substantial discount to the LBRD price, via the LBRD price to the underlying Charter, we still have the same set of incentives to use our capital for share repurchase at LBRD rather than raise the cap today, because the discount is so much larger than the tax leakage. I'm not sure it actually changes our program.

Speaker Change: And the reality is is because we're buying at a.

Speaker Change: Substantial discount to the L. B R D price via the LBO D price to the underlying charter.

Speaker Change: We still have the same set of incentives to use our capital for share repurchase and that'll be our D. Rather than raise the cap today because the discount is so much larger than the tax leakage. So I'm not sure it actually changes our program.

Operator: Thanks. Thank you. Our next questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions. Okay, thanks for taking the question. I guess two things: one just kind of the big picture for Greg and then another kind of nuts and bolts on numbers. The bigger picture question, Greg, is I was curious about your thoughts on some of the new skinny bundles or streaming bundles that are emerging from the media companies in terms of their legality or the appropriateness from an antitrust perspective. So specifically, the skinny sports bundle from Disney, Warner Brothers, and Fox.

Michael Rollins: Thanks.

Speaker Change: Thanks.

Greg Maffei: Thank you.

Speaker Change: Thank you.

Operator: Thank you. Our next questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Speaker Change: Our next questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Barton Crockett: Okay. Thanks for taking the question. I guess two things. One, just kind of big picture for Greg, and then another kind of nuts and bolts on numbers. So the bigger picture question, Greg, is I was curious about your thoughts on some of the new skinny bundles or streaming bundles that are emerging from the media companies in terms of the legality or the appropriateness in an antitrust perspective. So specifically, the skinny sports bundle from Disney, Warner Bros., Fox, do you believe that Charter would have rights to offer the same kind of bundle or not? And do you think there's any kind of antitrust question there? Similarly, I guess there's some reports that Comcast and Paramount have been discussing, perhaps combining streaming efforts. And their streaming services include a lot of content from the broadcast networks, NBC, CBS.

Barton Crockett: Okay, all right. Thanks for taking the question.

Barton Crockett: I guess two things one just kind of big picture for Greg and then another kind of nuts and bolts.

Barton Crockett: Our numbers.

Barton Crockett: But the bigger picture question, Greg is I was curious about your thoughts on that.

Barton Crockett: And the new skinny bundles or streaming bundle.

Barton Crockett: That are emerging from the media companies in terms of the.

Barton Crockett: The legality or the appropriateness in an anti trust perspective so.

Barton Crockett: You know specifically the skinny sports bundle fun Disney Warner Brothers Fox.

Gregory B. Maffei: You know, do you believe that Charter would have the right to offer the same kind of bundle or not? And do you think there's any kind of antitrust questions there? Similarly, I guess there's some reports that Comcast and Paramount have been discussing, perhaps combining their streaming efforts, and their streaming services include a lot of content from the broadcast networks, NBC, you know, and CBS.

Barton Crockett: You know do you believe that charter would have rights to offer the same kind of bundle or not.

Barton Crockett: And do you think theres any kind of antitrust questions there.

Barton Crockett: Similarly, I guess there are some reports that Comcast and Paramount have been discussing perhaps combining screening efforts and their streaming services include a lot of content from the broadcast networks NBC CBS.

Barton Crockett: There's a prohibition at the FCC on dual network ownership and some antitrust, I think, questions about the video market there. So how do you feel about antitrust, and do you think that ends up being an issue that affects this? So that's kind of the big picture question. Then I'll come back later with just a small numbers question.

Gregory B. Maffei: There's a prohibition at the FCC on dual network ownership and some antitrust, I think, questions about the video market there. So, you know, how do you feel about antitrust? And do you think that ends up being an issue that affects this? So that's kind of the big picture question. And then I'll come back later with just a small number question. Okay, Barton, you know, I'm only good at the big picture, so thank you for starting with that. The skinny bundles, I'm not sure how skinny that bundle is, but I'm also, you know, uncertain about the antitrust implications. I've heard knowledgeable observers on both sides of Pine, and I really have not dug into it enough to have a firm view of my own.

Barton Crockett: There is a prohibition at the FCC on dual network ownership ban some antitrust I think questions about the video market there.

Speaker Change: How do you feel about antitrust and do you think that ends up being an issue that affects that so that's kind of the big picture question.

Speaker Change: And I'll come back later with you with just a small numbers question.

Greg Maffei: Okay, Barton. I'm only good on the big picture, so thank you for starting with that. The skinny bundles, I'm not sure how skinny that bundle is, and I'm also uncertain about the antitrust implications. I've heard knowledgeable observers on both sides opine, and I've not dug into it enough to have a firm view of my own. The question about Charter, I think there is potentially an opportunity for, as bundles are created, that we are a distributor of that and has long-term positive, then that we're making margin without risk, and we are continuing to drive demand for broadband as those packages shift.

Speaker Change: Okay Barton you know I'm I'm only going to pick up.

Barton Crockett: On the Big picture. So thank you for starting with that.

Speaker Change: The the skinny bundles I'm not sure how skinny bundle is.

Speaker Change: But and I'm also uncertain about the antitrust implications I've heard.

Speaker Change: Knowledgeable observers on both sides of pine and I really have none.

Dug into it enough to have a firm view of my own the question about.

Operator: The question about... Charter, I think there is potentially an opportunity for us to be a distributor of that and, you know, have a long-term positive that we're making margin without risk and we are continuing to drive demand for as those packages shift. So I think in the, well, it's, you know, we certainly have not seen all of it at Charter and made a full evaluation of where it'll go. On the margin, it feels positive to me, both as an economic opportunity and as something which drives broadband. Okay, great. And then, just the numbers question, I want to make sure I'm clear, when you say 200 million in CapEx this year, is that comparable to the 216? Or is that just on, you know, the expansion, and the actual comparable number would be something different?

Speaker Change: Charter I think there is potentially an opportunity for as bundles are created that we are a distributor of that.

Speaker Change: And.

Speaker Change: As long term positive then that we're making margin without risk and we are.

Speaker Change: Continuing to drive.

Speaker Change: Demand for.

Speaker Change: Our broadband as those packages shipped.

Greg Maffei: So, I think in the while, we certainly have not seen all of it at Charter and made a full evaluation of where it'll go. On the margin, it feels positive to me, both as an economic opportunity and as something which drives broadband.

Speaker Change: I think in the while it's we certainly have not seen all of it a charter and they made a full evaluation of what it'll go on the margin that feels positive to me, both as an economic opportunity and it's something which drives broadband.

Barton Crockett: Okay. Great. And then just the numbers question, I wanted to make sure I'm clear. When you say $200 million on CapEx this year, is that comparable to the $216 million, or is that just on the expansion, and the actual comparable number would be something different? There's that. And then your commentary on the tax rate for sales of Charter shares, I mean, can you give us just a number? I'm not sure I quite followed what I should assume for a tax rate there.

Speaker Change: Okay, Great and then just a numbers question I wanted to make sure I'm clear when you say 200 million on Capex. This year is that comparable to the 2016 or is that just on.

Speaker Change: You know the expansion and the actual comparable number would be something different there's that and then your commentary on the tax rate for.

Brian J. Wendling: There's that. And then, you know, your commentary on the tax rate for sales of charter shares. Just, I mean, can you give us just like a number?

Speaker Change: Sales of our charter shares.

Speaker Change: I mean can you give us just like a number I'm not sure I quite follow what you know actually there's some pretax right now.

Brian J. Wendling: I'm not sure I quite followed what, you know, I should assume for a tax rate. Yeah, on the tax rate. We're just giving you low double digits at this point, Barton. Um... And then on the CapEx, yes, it's a comparable number, the 200 to the 200. Okay, thank you. Thank you. Our next questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question. Thank you. Good morning, Greg.

Greg Maffei: Yeah. On the tax rate.

Brian Wendling: Yeah. On the tax rate.

Speaker Change: Yeah on the Italian Ron Yeah got it great. Thank you saturate. It we're just giving you a low double digits at this point Barton.

Greg Maffei: Brian, will Ron? Yeah. Go ahead, Brian. Thank you.

Greg Maffei: Yeah. Tax rate, we're just giving you low double digits at this point, Barton. And then on the CapEx, yes, it's a comparable number, the $200 to the 216.

Brian Wendling: Yeah. Tax rate, we're just giving you low double digits at this point, Barton. And then on the CapEx, yes, it's a comparable number, the $200 to the 216.

Speaker Change: And then on the Capex, yes, it's a comparable it's comparable number the 200 to 216.

Greg Maffei: Okay. Thank you.

Barton Crockett: Okay. Thank you.

Okay. Thank you.

Operator: Thank you. Our next questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Speaker Change: Thank you our next questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Ben Swinburne: Thank you. Good morning, Greg. I think these are big picture, so I think for you.

Barton Crockett: Thank you good morning, Greg I forgot I think these are big picture. So I think for you [laughter] you don't don't scare me were those details come out Brett exactly.

Operator: I think I think these are the big picture things. So I think for you. Don't don't scare me with those details.

Greg Maffei: Don't scare me with those details. Come on, Ben. Thank you.

Ben Swinburne: Right. Exactly. I asked you the question I asked John back in November on Charter, which is, why is 4.5x still the right leverage level? I think I know what your answer is, but obviously, the market has spoken, at least for now, on what they're thinking on Charter stock. I'd be curious if there's a scenario where you think lower leverage is actually optimal. And then looking back on the Disney dispute, and you mentioned it in your prepared remarks that that's weighed on subs, do you think that the objectives and sort of what was extracted from that agreement by Charter has been worth some of the disruption in the business? Again, broadband net adds have an outsized impact on Charter stock versus their video business. So just wondering how you reflect on that.

Gregory B. Maffei: Come on. I ask you the question I asked John back in November on Charter, which is, you know, why is four and a half times, you know, still the right leverage level? I think I know what your answer is, but obviously, the market has spoken, at least for now, on what they're thinking about charter stocks. I'd be curious if there's a scenario where you think lower leverage is actually optimal.

Speaker Change:

Barton Crockett: I ask you. The question I asked John back in November on Charter, which is you know why is four and a half times still the right leverage level I think I know what your answer is but obviously the market is.

Barton Crockett: You know as has spoken at least for now on where they you know what they're thinking on charter stock. So would be curious if if there's a scenario where you think lower leverage it's actually optimal.

Gregory B. Maffei: And then, you know, looking back on the Disney dispute, and you mentioned it in your prepared remarks that that's weighed on subs. Do you think that the objectives and the sort of what was extracted from that agreement by Charter have been worth some of the disruption in the business? Again, you know, broadband net ads have an outsized impact on Charter stock versus their video business. I'm just wondering how you feel about that.

Barton Crockett: And then you know looking back on the Disney dispute.

Barton Crockett: And you mentioned it in your prepared remarks that that's that's weighed on subs.

Barton Crockett: Do you think that the objectives and the and sort of what was extracted from that agreement by charter has been worse some of the disruption in the business and again you know.

Barton Crockett: Broadband net adds have an outsized impact on charter stock versus their video business. So I'm just wondering how you reflect on that.

Gregory B. Maffei: Um, you know, I'll start with the obviously the leverage part, the question, you know, is certainly we have some shareholders asking the question, and we're weighing, you know, the relative merits, but we have at the starter management team shown the board, I think, you know, multiple scenarios about what lower leverage or higher leverage might mean. And for the moment, we're pretty confident that riding the course, given the, you know, diversity of maturity, the length of maturities, the likely movement in interest rates, that even under most scenarios, we're better off holding the four and a half times leverage. It's certainly a question that's open, you know, in the sense of the bar. In general, we are responsive to our shareholders. I think the, I can say for the 26% holder, and I think probably, not speaking for them, but correctly relaying their views for the 12% holder at Advanced Newhouse, I think we're in agreement with management's proposal that four and a half's the right number.

Barton Crockett:

Greg Maffei: Well, I'll start with the obvious, with the leverage part. The question is certainly; we have some shareholders asking the question, and we're weighing the relative merits. But the Charter management team has shown the board, I think, multiple scenarios about what lower leverage or higher leverage might mean. And for the moment, we're pretty confident that staying the course, given the diversity of maturities, the length of maturities, the likely movement in interest rates, that even under most scenarios, we're better off holding the 4.5x leverage. It's certainly a question that's open in the sense that we are responsive to our shareholders in general.

Barton Crockett: I'll start with you obviously with the leverage part the quest.

Barton Crockett: Question.

You know is certainly we have some shareholders asking a question and we're weighing.

Barton Crockett: The relative merits, but we have.

Barton Crockett: At the broader management team has shown the board I think.

Barton Crockett: Both scenarios about what lower leverage or higher leverage might mean and for the moment, we're pretty confident that right and of course given the.

Barton Crockett: Diversity of maturities the length of maturities the likely movement in interest rates.

Barton Crockett: That even under most scenarios.

Barton Crockett: We're better off holding the four five times leverage.

Speaker Change: It's certainly a question that is open.

Speaker Change: It's essentially at par.

Speaker Change: We are responsive to our shareholders in general.

Greg Maffei: I think I can say for the 26% holder, and I think probably not speaking for them, but correctly relaying their views for the 12% holder at Advance/Newhouse, I think we're in agreement with management's proposal that 4.5 is the right number. But we certainly look at it. And to the degree that there was massive pushback from shareholders, you'd want to pay attention. I don't think we've received that yet. I think we've received questions on the margin. And I think what's happened to the stock price is not a function, it may be exacerbated by the leverage, but it's a function of perception of broadband growth and how we're doing competitively in the marketplace rather than net leverage. Look, it's a long-term bet.

Speaker Change: Thank the.

Speaker Change: I can say for the 26% holder and I think probably not speaking for them, but correctly, we're laying their views for the 12% holder at advanced in class I think we're in agreement with management's proposal that four and a half the right number.

Gregory B. Maffei: But we certainly look at it, and to the degree that there was massive pushback from shareholders, you'd want to pay attention. But I don't think we've received that yet. I think we've received questions on the margin. I, you know, and I think what's happened to the stock price is not a function, it may be exacerbated by the leverage, but it's a function of perception of broadband growth and how we're doing competitively in the marketplace rather than net leverage. Yeah. Uh, Disney.

Speaker Change: But we certainly look at it and you know to the degree that there was massive pushback from shareholders you would.

Want to pay attention I don't think we've received that yet I think we have received questions on the margin.

Speaker Change:

Speaker Change: And I think what's happened to the stock price is not a function. It may be exacerbated by the leverage but it's a function, though reception of broadband growth and how we're doing competitively in the marketplace rather than back leverage yeah.

Speaker Change: Uh huh.

Speaker Change: Disney.

Gregory B. Maffei: Look, it's a long-term bet, it's a long-term play, rather than just what do we feel the impact of in a quarter or, you know, rolling bleeding into a second quarter on how to have a stable video business where we are more aligned and partnered with people like Disney. And I think you can make the same argument as we get to the sports bundle, that having that, if it occurs or when it occurs. Having ourselves aligned with them, having a role where we can be a distributor of that, and having a role in these over-the-top offerings is the right strategy for the long term, and I think management still stands by that view, and I think we're on the same page. I got it.

Speaker Change: Look I I, it's a long term that it's a long term play.

Greg Maffei: It's a long-term play rather than just, "What do we feel the impact in a quarter or bleeding into a second quarter?" on how to have a stable video business where we are more aligned and partnered with people like Disney. And I think you can make the same argument as we get to the sports bundle that having that, if it occurs or when it occurs, having ourselves aligned with them, having a role where we can be a distributor of that, and having a role in these over-the-top offerings is the right strategy for the long term. And I think management still stands by that view, and I think we're on the same page.

Speaker Change: Other than just what do we feel that impact in a quarter or you know what.

Speaker Change: Rowling bleeding into the second quarter on how to have a stable.

Speaker Change: The video business, where we are more aligned and partnered with.

Speaker Change: People like Disney and I think you can make the same argument as we get to the sports bundle that having that that it into the car.

Speaker Change: Or is or where it occurs having.

Speaker Change: Having ourselves aligned with them, having a role where we can be a distributor of that.

Speaker Change: And having a role in these over the top.

Speaker Change: Offerings is the right strategy for long term and I think Benjamin still stands by about by that view and I think we're on the same page.

Ben Swinburne: Got it. Thank you.

Speaker Change: Got it thank you.

Operator: Thank you. Thank you. Our next questions come from the line of Alex Nordhagen with Valliathony.

Operator: Thank you. Our next questions come from the line of Alex Nordhagen with Balyasny. Please proceed with your questions.

Speaker Change: Thank you our next questions come from the line of Alex Nord hanging with Bally asked me. Please proceed with your questions.

Operator: Please proceed with your question. Hey, thank you for taking my questions. I had two.

Ben Swinburne: Hey, thank you for taking my questions. I had two, really, around the cap stack. But on the first one, with the 2051s, the half coupon, upset coupon that are per-turn callable from March 25, what is the kind of base case plan to deal with those, assuming that there isn't any sort of transaction? I would think you'd need to have a plan in place given the low cash balance at Liberty TripAdvisor right now. And then the second question I had was, just in theory, if with respect to any acquisition discussions, Certares was involved, would that need to be disclosed to the market or not? Thanks.

Alexander Nordhagen: Hey, thank you for taking my questions. I had two, really, around the cap stack. But on the first one, with the 2051s, the half coupon, upset coupon that are per-turn callable from March 25, what is the kind of base case plan to deal with those, assuming that there isn't any sort of transaction? I would think you'd need to have a plan in place given the low cash balance at Liberty TripAdvisor right now. And then the second question I had was, just in theory, if with respect to any acquisition discussions, Certares was involved, would that need to be disclosed to the market or not? Thanks.

Alex Nord: Alright, Thank you for taking my questions I had two.

Gregory B. Maffei: Really around the cap stack, but on the first one would be 2051s, the half coupon, offset coupon that are put in callable from March 25. What is the kind of base case plan to deal with those, assuming that there isn't any sort of transaction? I would think you'd need to have a plan in place given the low cash balance at Liberty Trip right now. And then the second question I had was, just in theory, if, with respect to any acquisition discussions, Sir Torres was involved, would that need to be disclosed to the market or not? Um, Ben, are you there?

Alex Nord: Really around the cap stack, but on the first one would be a 2050 ones off coupon upside coupons that are callable.

Alex Nord: Callable from March 25, what.

What is the kind of base case plan to deal with those assuming that there isn't any sort of transaction I would think you'd you'd need to have a plan in place given the low cash balance Liberty trip right now and then the second question I had was just in theory, if with respect to any acquisition discussion.

Alex Nord: So torres was involved with that need to be disclosed to the market or not thanks.

Alex Nord:

Greg Maffei: Ben, are you there? Do you want to touch on our plans? I think we're evaluating. We're not going to go reveal all. But Ben, what would you want to add?

Alex Nord: Ben are you there or do you want to touch on the the our plants I think you know, we're a value and we're not gonna go reveal all but what would you want to add.

Gregory B. Maffei: Do you want to touch on our plans? I think, you know, we're evaluating. We're not going to go reveal all, but Ben, what would you want to add?

Gregory B. Maffei: Yeah, I think we monitor it regularly, Alex, and we think about what the different strategies are for addressing either, you know, repayment of those securities or an extension of maturity, but we're probably not going to go into detail, and, you know, on, on, uh... I think I've said I wouldn't comment on anything further, but I'll just say, you know, I think the disclosure we made about being approached is the only disclosure we'll make until we comment further, and whether or not it was Sitaris or anybody else who made the offer is really beyond what we're willing to reveal today and what we're obligated to reveal under the 13-D disclosure rule. Okay. And thanks, Craig.

Greg Maffei: Yeah. I think we monitor it regularly, Alex. We think about what the different strategies are for addressing either a repayment of those securities or an extension of maturity. But we're probably not going to go into detail at this time.

Ben Oren: Yeah. I think we monitor it regularly, Alex. We think about what the different strategies are for addressing either a repayment of those securities or an extension of maturity. But we're probably not going to go into detail at this time.

Barton Crockett: Yeah, I think we monitor it regularly Alex.

Barton Crockett: We think about what the different strategies are for addressing either you know a repayment of those securities or an extension of maturity, but we're probably not going to go into detail at this time.

Greg Maffei: And on, I think I've said I wouldn't comment on any further, but I'll just say I think the disclosure we made about being approached is the only disclosure we'll make until we comment further. And whether or not it was Certares or anybody else who made the offer is really beyond what we're willing to reveal today and what we're obligated, we think, under the 13D disclosure rules.

Speaker Change: And I can go on on.

Speaker Change: I think I've said I wouldn't comment on any further but I'll just say you know.

Speaker Change: I think the disclosure we made.

Speaker Change: About being approached.

Speaker Change: Is.

Speaker Change: The only disclosure will make until we comment further on whether or not it was.

Speaker Change: Tourists or anybody else, who made the offer is really oh beyond what we're willing to reveal today and what we are obligated we think under the 13D disclosure rules.

Ben Swinburne: Okay. Thanks, Greg. If I may just ask a follow-up then, with the preferred stock being callable from next month, six weeks away, do you have any intention to call it?

Alexander Nordhagen: Okay. Thanks, Greg. If I may just ask a follow-up then, with the preferred stock being callable from next month, six weeks away, do you have any intention to call it?

Speaker Change: Okay.

Gregory B. Maffei: And if I may just ask a follow-up question then, with the PrevStock being callable from next month, about six weeks away, do you have any intention to call it? I think I'd refer to Ben's comments earlier, we're evaluating all these things, we're looking at all our alternatives, but until such time as we make that move, if we do, we're not going to disclose them. All right. Thank you very much. I appreciate it. Sorry to be unsatisfactory, but at least I know you trust me.

Speaker Change: Thanks, Greg and if I may just ask a follow up then would be with the prevalence being being callable from next month six weeks away do you have any intention to call it.

Greg Maffei: I think I'd refer to Ben's comments earlier. We're evaluating all these things. We're looking at all our alternatives. But until and such time as we make that move, we are not going to, if we do, we're not going to disclose our intention.

Speaker Change: I think I'd refer to Ben's comments earlier, we were evaluating all of these things we're looking at all our alternatives.

Speaker Change: Until such time as we make that move we are not going to if we do we would not a we're not going to disclose our intention.

Ben Swinburne: All right. Thank you very much. Appreciate that.

Alexander Nordhagen: All right. Thank you very much. Appreciate that.

Speaker Change: Alright. Thank you very much I appreciate it sorry, sorry to be unsatisfying, but at least for me I know you tried it.

Greg Maffei: Sorry to be unsatisfying, but at least I know you tried.

Gregory B. Maffei: Thank you. Our last questions will come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions. Okay, thanks. So I took the opportunity to come back. Right, just hopefully this qualifies as the big picture for you.

Operator: Thank you. Our last questions will come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Speaker Change: Thank you our last question will come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Barton Crockett: Okay. Thanks. Sorry, I took the opportunity to come back. Greg, just hopefully, this qualifies as big picture just for you. I was curious, the statement that fixed wireless is competitive now, but won't be over the longer term, do you have any kind of sense in your mind of how long it is before fixed wireless ceases to become competitive and becomes more kind of a source of win-back for cable? I say that just thinking that there's a lot of consumers out there that are feeling pretty stretched, and I think would be pretty sticky for a low-price service, but there's technical constraints. So what do you think is the timing here?

Barton Crockett: Okay. Thanks, Todd sorry, I forgot.

Barton Crockett: I wanted to come back.

Barton Crockett: Breakfast hopefully this clarifies just big picture.

Barton Crockett: Just for you.

Operator: I'm curious, you know, about the statement that fixed wireless is competitive now but won't be in the longer term. Do you have any kind of sense in your mind of how long it will be before fixed wireless ceases to become competitive and becomes more kind of a source of win-back for cable? I say that just thinking that there's a lot of consumers out there that are feeling pretty stretched and, I think, would be pretty sticky for a low-priced service, but there are technical constraints. So what do you think is the timing here? Yeah, Barton, I think I would, the way you initially stated the premise that Fixed Wireless isn't competitive, I would say that differently. I would say that there are certainly customers for whom fixed wireless is the answer they believe they need.

Barton Crockett: I'm just curious you know if the statement that fixed wireless is competitive now that won't be.

Barton Crockett: Over the longer term.

Barton Crockett: Can you do you have any kind of sense in your mind, how long it is before fixed wireless ceases to become.

Barton Crockett: Competitive and it becomes more kind of a source of went back for cable.

Barton Crockett: I say that just you know thinking that there's a lot of.

Consumers out there that are feeling pretty stretched.

Barton Crockett: And you know I think would be pretty sticky for a low price service, but there's.

Barton Crockett: Technical constraints. So what do you think is the timing here.

Greg Maffei: Yeah. Barton, I think the way you initially stated the premise that fixed wireless isn't competitive. I would say that differently. I would say that there are certainly customers for whom fixed wireless is the answer they believe they need. I think that customer set will be reduced over time as broadband demands grow and potentially as FWA becomes less interesting as that network has more users and performance is less attractive, less performance. So I'm not saying it's a binary thing. I'm thinking it's a relative thing, the relative attractiveness and the relative need for increased bandwidth, relative attractiveness of that network, and the relative needs among consumers for more bandwidth. I think those shift in our favor over time. And then the question of when capacity is constrained.

Speaker Change: Got it.

Barton Crockett: And I think I would do.

Barton Crockett: Initially stated the premise that fixed wireless is a competitive I would say that differently.

Barton Crockett: Would say that there are certainly customers for whom fixed wireless is the answer they believe they need.

Operator: I think that customer set will be reduced over time as broadband demands grow and potentially as FWA becomes less interesting as that network, more users, and performance are less attractive or less. So I'm not saying it's a binary thing; I think it's a relative thing, the relative attractiveness and the relative need for increased bandwidth, the relative attractors of that network, and the relative needs among consumers for more bandwidth. I think those will shift in our favor over time.

Barton Crockett: I think that customer set will be reduced overtime as broadband demands grow.

Barton Crockett: And potentially as SWA becomes less interesting as that network as more.

Barton Crockett: <unk> and performance is less attractive or less.

Barton Crockett: Its performance, so I'm not saying, it's a binary.

Barton Crockett: Thing I'm thinking it's a relative thing is the relative attractiveness on the relative need for increased bandwidth relative attractiveness of that network and the relative needs among consumers for more bandwidth I think those shift in our favor over time.

Gregory B. Maffei: And then the question of capacity. I mean, T-Mobile has been pretty clear about how many they're willing to go out with. You can judge how quickly it is. I would argue that Verizon has been less clear about a lot of their plans in this. But if you look at reasonable expectations and what the run rate is, you can make your own judgment about when that starts to slow down. We've already seen it slow a little, and we've already seen TMO, on the margin, begin to increase prices. RAPWA, which seems to suggest that there are. They're not at a limitation, but they're recognizing that there's not an unlimited amount of code that has to be correct.

Barton Crockett: And then the question of when capacity is constrained I mean T mobile has been pretty clear about what how many they're willing to go out with you can judge how quickly it is.

Greg Maffei: I mean, T-Mobile has been pretty clear about how many they're willing to go out with, and you can judge how quickly it is. Verizon has been less clear. I would argue Verizon has been less clear about a lot of their plans in this space. But if you look at what reasonable expectations and what the run rate is, you can make your own judgment about when that starts to slow down. We've already seen it slow a little, and we've already seen T-Mobile on the margin begin to increase prices for FWA, which seems to suggest that they're not at limitation, but they're recognizing that there's not an unlimited amount of capacity for FWA.

Barton Crockett: Ryzen has been less clear.

Barton Crockett:

Barton Crockett: I would argue horizons spend less clear, but a lot of their plants in this space.

Barton Crockett: But if.

Barton Crockett: If you look at what reasonable expectations on what the run rate as you can make your own judgment about when that starts to slow down we've already seen it slow a little and we've already seen T. Mo in the on the margin begin to increase prices.

Barton Crockett: Which seems to suggest that there no they're not.

Barton Crockett: That limitation, but they're recognizing that there's not an unlimited amount of coke past equally FWS.

Barton Crockett: Okay. Thanks.

Gregory B. Maffei: Okay, thanks. Thank you. I believe that is our last question today. Thank you all for joining. Thank you all for your interest in Liberty Broadband and Liberty Trip Advisor. And with that, operator, we will end today's call. Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Speaker Change: Okay. Thanks.

Greg Maffei: Thank you. I believe that is our last question today. Thank you all for joining. Thank you all for your interest in Liberty Broadband and Liberty TripAdvisor. With that, operator, we will end today's call.

Speaker Change: Thank you.

Speaker Change: I believe that is our last question today.

Speaker Change: Thank you all for joining.

Speaker Change: Thank you all for your interest in Liberty broadband and Liberty Tripadvisor.

Speaker Change: And with that operator, we will end today's call.

Operator: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Speaker Change: Thank you. This does conclude today's teleconference. We appreciate your participation you may disconnect. Your lines at this time enjoy the rest of your day.

Speaker Change: [music].

Q4 2023 Liberty Broadband Corp Earnings Call

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