Q1 2024 Liberty Broadband Corp Earnings Call

May 8, 2024

Yeah.

Operator: Welcome to Liberty Broadband 2024 Q1 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. As a reminder, this conference will be recorded 8 May 2024. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go ahead.

Welcome to Liberty broadband 2024, Q1 earnings call.

Operator: Welcome to Liberty Broadband's 2024 Q1 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 1 on your telephone. As a reminder, this conference will be recorded May 8th. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go

Claire Adams: During the presentation, all participants will be in a listen only mode.

Operator: Afterwards, we will conduct a question and answer session.

Operator: At time at that time, if you have a question. Please press star one on your telephone.

Operator: As a reminder, this conference will be recorded may 8th.

Operator: I would now like to turn the call over to Claire Adams Senior manager of Investor Relations. Please go ahead.

Clare Adams: Good morning. 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 Form 10-K and 10-Q, 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'll discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted OIBDA.

Claire Adams: Good morning. 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 Form 10-K and 10-Q, 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'll discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted OIBDA.

Claire Adams: Good morning, before we begin we'd like to remind everyone that this call includes certain forward looking statements in the meaning of the private Securities Litigation Reform Act of 1995.

Claire Adams: Good morning. 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 and 10-Q 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 to, or any change in events, conditions, or circumstances on which any such statement is based.

Claire Adams: Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent Form 10-K, 10-Q sounds on 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 the Green Street advisor expressly disclaim any obligation or undertaking to meet any update.

Claire Adams: The revisions to any forward looking statement contained herein to reflect any change in liberty broadband where it might be tricky I, there's expectations with regard there to or any change in events conditions or circumstances on which any such statement is based.

Claire Adams: On today's call, we'll discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted oil. Information regarding the comparable gap 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 introduce Greg Maffei, Liberty's president and CEO. Thank you.

Claire Adams: On today's call, we'll discuss certain non-GAAP financial measures from Liberty broadband, including adjusted OIBDA.

Clare Adams: Information regarding the comparable GAAP metrics, along with the 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 for prior periods, which are available on Liberty Broadband's website. Now I'd like to introduce Greg Maffei, Liberty's President and CEO.

Claire Adams: Information regarding the comparable GAAP metrics, along with the 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 for prior periods, which are available on Liberty Broadband's website. Now I'd like to introduce Greg Maffei, Liberty's President and CEO.

Claire Adams: Information regarding the comparable GAAP metrics, along with the 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.

Claire Adams: Now I'd like to introduce Greg Maffei, Liberty's, President and CEO.

Greg Maffei: Thank you, Claire, and good morning to all. Today, speaking on the call, we will have Liberty Broadband's Chief Accounting and Principal Financial Officer, Brian Wendling. Ron Duncan, CEO of GCI, and Pete Pounds, CFO of GCI, will also be available to answer questions. Also, during Q&A, we will be available to answer questions related to Liberty TripAdvisor. So beginning with Liberty Broadband, similar to last year, early in the year, we remained under the 26% fully diluted ownership cap, largely due to Charter's annual compensation grants. We do expect to resume sales into Charter's buyback this summer, and we also expect that the majority of proceeds, which have historically gone to LBRD purchases, will continue somewhere going in the future.

Gregory B. Maffei: Thank you, Claire, and good morning to all. Today speaking on the call, we will have Liberty Broadband's Chief Accounting and Principal Financial Officer, Brian Wendling. Ron Duncan, CEO of GCI, and Pete Pounds, CFO of GCI, will also be available to answer questions. Also, during Q&A, we will be available to answer questions related to Liberty, TRIP, and FIRE.

Gregory B. Maffei: Clare and good morning to all.

Gregory B. Maffei: Today speaking on the call, we will have Liberty broadband chief accounting and principal financial Officer, Brian Wendling.

Ron Duncan: Ron Duncan.

Gregory B. Maffei: GCI and Pete pounds CFO of GCI will also be available to answer questions.

Gregory B. Maffei: Also during Q&A, we will be available to answer questions related to Liberty Tripadvisor.

Gregory B. Maffei: So beginning with Liberty Broadband, similar to last year, earlier in the year, we remained under the 26% fully diluted ownership cap, largely due to Charter's annual compensation grants. We do expect to resume sales into Charter by this summer. And we also expect that the majority of proceeds which have historically gone to LBRD purchases will continue to go somewhere in the future. We will evaluate the best uses for the proceeds we receive, but I do expect in the near term, we will have a greater focus on debt reduction, so you might see some of us have a reduced pace of buyback in the near term.

Brian J. Wendling: So beginning with Liberty broadband similar to last year early in the year, we remain under the 26% fully diluted ownership cap largely due to charters annual compensation grants.

Gregory B. Maffei: We do expect to resume sales into charters buyback this summer.

Gregory B. Maffei: And we also expect that the majority of proceeds which have historically gone to <unk> purchases will continue.

Gregory B. Maffei: Some are going in the future.

Greg Maffei: We will evaluate the best use as we receive proceeds, but I do expect in the near term, we will have a greater focus on debt reduction, so you might see some of us have a reduced pace of buyback in the near term. Looking at Charter itself, internet adds have been challenged across the industry, with lower growth across the board in Q1. Charter experienced a 72,000 subscriber net loss, largely from continued elevated competition, early headwinds from the upcoming ACP expiration, and reduced move activity, given, among other things, historically high interest rates, mortgage rates. The churn does remain at historically low levels, and the company did experience solid EBITDA growth at 2.8% in Q1.

Gregory B. Maffei: We'll evaluate the best uses we received proceeds but I do expect in the near term, we will have a greater focus on debt reduction. So you might see some of us have a reduced pace of buyback in the near term.

Gregory B. Maffei: Looking at Charter itself, internet ads have been challenged across the industry with lower growth across the board in the first quarter; Charter experienced a 72,000 subscriber net loss, competition, early headwinds from the upcoming ACP expiration, and reduced move activity given, among other things, historically high interest rates. However, churn does remain at historically low levels, and the company did experience solid EBITDA growth at 2.8% in the first quarter. We are comfortable management can achieve EBITDA growth throughout the year while investing in the business, and despite facing industry pressures, they'll achieve that largely due to expense management, which is working quite well. On mobile, Brightspot continues to perform nicely.

Gregory B. Maffei: Looking at charter itself.

Gregory B. Maffei: Internet ads have been challenged across the industry with lower growth across the board in the first quarter.

Gregory B. Maffei: Charter experienced a 72000 subscribers 2000 subscriber net loss.

Gregory B. Maffei: Largely from continued elevated competition.

Gregory B. Maffei: Early headwinds from the upcoming ACP exploration and reduced move activity given among other things historically high interest rates mortgage rates.

Gregory B. Maffei: <unk> does remain at historically low levels.

Gregory B. Maffei: And the company getting spot experienced solid EBIT growth at two 8% in the first quarter.

Greg Maffei: We are comfortable management can achieve EBITDA growth throughout the year while investing in the business and despite facing industry pressures, and they'll achieve that largely due to expense management, which is working quite well. Mobile, bright spot, continues to form nicely. Charter surpassed 8 million total mobile lines, and mobile service revenue accelerated 38% versus the prior year. We're quite pleased with the Spectrum One performance, and we're seeing improving mobile EBITDA as the promotional lines continue to roll off and the business achieves economies of scale. The Anytime Upgrade program is going to expand our market opportunity, and we do see increased stickiness with customers. Internet churn is down versus the prior year. As many of you know, unfortunately, the ACP program was not renewed. In light of that, Charter is offering a range of options to retain ACP customers, including-...

Gregory B. Maffei: We are comfortable management can achieve EBITDA growth throughout the year, while investing in the business.

Gregory B. Maffei: And despite facing industry pressures and all achieved that largely due to expense management, which is working quite well.

Gregory B. Maffei: Mobile bright spot continues to perform nicely.

Gregory B. Maffei: Charter surpassed 8 million total mobile lines, and mobile service revenue accelerated 38% versus the prior year. We were quite pleased with the Spectrum 1 performance, and we're seeing improving mobile EBITDA as the promotional lines continue to roll off and the business achieves economies of scale. The Anytime Upgrade Program is going to expand our market opportunity. And we do see increased stickiness with customers; internet churn is down versus the prior year. But, as many of you know, unfortunately, the ACP program was not renewed.

Gregory B. Maffei: Charter surpassed 8 million total mobile lines and mobile service revenue accelerated to 38% versus the prior year.

Gregory B. Maffei: Quite pleased with the spectrum one performance.

Gregory B. Maffei: And we're seeing improving mobile internet and the promotional lines continue to roll off and the business achieve economies of scale.

Gregory B. Maffei: The anytime upgrade program is going to expand our market opportunity.

Gregory B. Maffei: And we do see increased stickiness with customers Internet churn is down versus the prior year.

Gregory B. Maffei: As many of you know unfortunately, the ACP program was not renewed and.

Gregory B. Maffei: In light of that, Charter is offering a range of options to retain ACP customers, including the Spectrum Internet Assist Program, the Internet 100 product, and a retention offer of free mobile for one year. Looking briefly at the balance sheet at Charter, we do expect leverage will move toward the midpoint of the 4 to 4.5 leverage target while maintaining the buyback. Turning briefly to L-TRIP,

Gregory B. Maffei: In light of that charter is offering a range of options to retain ACB customers, including the sector spectrum Internet assist program, the Internet 100 product and a retention officer.

Greg Maffei: the Spectrum Internet Assist program, the Internet 100 product, and a retention offer of free mobile for one year. Looking briefly at the balance sheet at Charter, we do expect leverage will move toward the midpoint of the 4 to 4.5 leverage target while maintaining the buyback this year. Turning briefly to L Trip. Many of you may have seen that we filed a 13D this morning, which outlines the ceased transaction discussions with third parties. We do continue to still discuss strategic alternatives with TripAdvisor's Special Committee. We will not be able to comment further on this unless definitive documents are executed or discussions terminate. Looking at TripAdvisor itself, TripAdvisor had a good start to Q1, but it also did offer a more muted guidance on its call this morning.

Gregory B. Maffei: Free mobile for one year.

Gregory B. Maffei: Looking briefly at the balance sheet at charter, we do expect leverage will move toward the midpoint of the four to four five leverage target, while maintaining our buyback this year.

Gregory B. Maffei: Turning briefly altra.

Gregory B. Maffei: Many of you may have seen that we filed a 13-D this morning which outlined the cessation of transaction discussions with third parties. We do continue to discuss strategic alternatives with TripAdvisor, especially. We will not be able to comment further on this unless definitive documents are executed or discussions terminated.

Gregory B. Maffei: Any of you may have seen that we filed the 13D this morning, which outlines the Steve <unk>.

Gregory B. Maffei: Transaction discussions with third parties.

Gregory B. Maffei: We do continue to discuss strategic alternatives with Tripadvisor Special Committee.

Gregory B. Maffei: We will not be able to comment further on this unless definitive documents are executed or discussions in Germany.

Gregory B. Maffei: Looking at Tripadvisor itself.

Gregory B. Maffei: Looking at TripAdvisor itself, TripAdvisor had a good start to the first quarter, but it did also offer more muted guidance on its call this morning. Traveling experiences remain high priorities for consumers despite geopolitical activity and inflationary pressures. At Brand Trip Advisor, hotel metaperformance was driven by sustained pricing strength, offset by lower click volume. TRIPS AI tool is continuing to scale very well. The addition of bookable experiences embedded in itineraries is generating 50% higher average revenue, and Viator itself saw record app downloads. Conversion Growth, and Appbook. So with that, I'll turn it over to Brian.

Brian: Tripadvisor had a good start with the first quarter, but it did also offer more muted guidance on its call. This morning.

Greg Maffei: Travel and experiences remain high priorities for consumers, despite geopolitical activity and inflationary pressures. Trips AI tool is continuing to scale very well, and the addition of bookable experiences embedded in itineraries is generating 50% higher average revenue per user. Viator itself saw record app downloads, conversion growth, and app bookings. So with that, I'll turn it over to Brian to discuss the financials.

Gregory B. Maffei: Travelling experiences remain high priorities for consumers, despite geopolitical activity and inflationary pressure.

Gregory B. Maffei: Pressures.

Brian: At brand Tripadvisor Hotel meta performance was driven by sustained pricing strength offset by lower click volumes.

Gregory B. Maffei: Trips AI tool is continuing to scale very well and the addition of bookable experiences embedded in itineraries and generating 15% higher average revenue per user.

Gregory B. Maffei: Find tour itself saw a record app downloads.

Gregory B. Maffei: Version growth and App bookings, so with that I'll turn it over to Brian to discuss the financials. Thank you Greg at quarter end Liberty broadband had consolidated cash and cash equivalents of $108 million, which includes a $70 million of cash.

Brian Wendling: Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $108 million, which includes $70 million of cash. At GCI, the value of our Charter investment, based on our shares held as of May 1, and Charter share price at yesterday's close, was $12.3 billion. At quarter end, Liberty Broadband had a total principal amount of debt of $2.8 billion. Note, this excludes the preferred stock. Looking quickly at GCI, GCI's revenue and Adjusted OIBDA were flat in Q1. Growth in data revenue in both business and consumer sides was offset by declines in other revenue. The decline in the other revenue was primarily driven by declines in video revenue. We'd note, though, that the video business does not meaningfully impact margins or free cash flow.

Brian J. Wendling: At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $108 million, which included $70 million of cash. The value of our charter investment based on our shares held as of May 1 and the charter share price at yesterday's close was $12.3 billion. At quarter end, Liberty Broadband had a total principal amount of debt of $3.8 million. Note this excludes the preferred stock.

Brian J. Wendling: <unk>.

Brian J. Wendling: The value of our charter investment based on our shares held as of May one and charter share price at yesterday's close was $12 3 billion.

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

Brian J. Wendling: Looking quickly at GCI GCI as revenue and adjusted OIBDA were flat in the first quarter growth in data revenue in both business and consumer sides, what was offset by declines in other revenue the decline in the other revenue was primarily driven by declines in video revenue.

Brian J. Wendling: Looking quickly at GCI, GCI's revenue and adjusted OIBTA were flat in the first quarter. Growth in data revenue in both business and consumer sides was offset by declines in other revenue. The decline in other revenue was primarily driven by declines in video revenue. We note though that the video business does not generate meaningful revenue, and does not meaningfully impact margins or free cash flow.

Brian J. Wendling: Note, though that the video business does not generate meaning it does not meaningfully impact margins or free cash flow.

Brian Wendling: Over the last year, adjusted for the reclassification from GCI business, GCI Consumers added 3,500 revenue-generating wireless subs and saw a small decline of 200 cable modem customers. GCI, GCI paid down its revolver by $60 million during the quarter, using strong cash from operations. At quarter end, leverage, as defined by its credit agreement, was 2.8 times, and GCI's credit facility had $457 million of undrawn capacity, net of letters of credit. Subsequent to quarter end, GCI distributed $150 million to Liberty Broadband, funded with cash on hand and drawing under its revolver. These proceeds were used to pay down the charter margin loan and were therefore net debt neutral to Liberty Broadband.

Brian J. Wendling: Over the last year, adjusted for the reclassification from GCI Business, GCI Consumers added 3,500 revenue-generating wireless subs and saw a small decline of 200 cable motors. GCI paid down its revolver by $60 million during the quarter, using strong cash from operations. At quarter end, leverage, as defined by its credit agreement, was 2.8 times, and GCI's credit facility had $457 million of undrawn capacity, net of letters of credit. Subsequent to quarter end, GCI distributed $150 million to Liberty Broadband, funded with cash on hand and drawing under its revolver.

Brian J. Wendling: Over the last year adjusted for the reclassification from GCI business GCI consumers added 3500 revenue generating wireless subs and saw a small decline of 200 cable modem customers.

Brian J. Wendling: GCI GCI pay down its revolver by $60 million during the quarter using strong cash from operations at.

Brian J. Wendling: At quarter end and Leverages defined by its credit agreement was two eight times and GCI as credit facility had $457 million of Undrawn capacity net of letters of credit.

Brian J. Wendling: Subsequent to quarter end GCI distributed $150 million of Liberty broadband funded with cash on hand, and drawing under its revolver.

Brian J. Wendling: These proceeds were used to pay down the Charter Margin Loan and were therefore net debt neutral to Liberty Broadband. Pro forma, for the dividend payment, GCI's leverage was just under 3.2 times with $327 million of undrawn capacity under its revolve, net of letters of credit. And with that, I'll turn the call back over to Greg.

Brian J. Wendling: These proceeds were used to pay down the charter margin loan and we are therefore net debt neutral to liberty broadband.

Brian Wendling: Pro forma for the dividend payment, GCI's leverage was just under 3.2 times, with $327 million of undrawn capacity under its revolver, net of letters of credit. With that, I'll turn the call back over to Greg.

Brian J. Wendling: Pro forma for the dividend payment Gci's leverage was just under three two times with $327 million of Undrawn capacity under its revolver.

Brian J. Wendling: Net of letters of credit and with that I'll turn the call back over to Greg.

Greg Maffei: Thanks, Brian. To the listening audience, we appreciate your continued interest in Liberty Broadband and Liberty TripAdvisor. With that, operator, I'd like to open the call for questions.

Greg: Thanks, Bryan and to the listening audience. We appreciate your continued interest in Liberty broadband and Liberty Tripadvisor and with that operator, I'd like to open the call for questions.

Gregory B. Maffei: Thanks, Brian, and to the listening audience, we appreciate your continued interest in Liberty Broadband and Liberty Trip Advisor. And with that operator, I'd like to open the call to questions.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question today comes from Ben Swinburne of Morgan Stanley. Please proceed with your question.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. Our first question today comes from Ben Swinburne of Morgan Stanley. Please proceed with your question.

Speaker Change: Thank you at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue you.

Ben Swinburne: Thanks. Hello again.

Ben Swinburne: You May press Star two if you would like to remove your question from the queue.

Ben Swinburne: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Ben Swinburne: Yeah.

Ben Swinburne: Our first question today comes from Ben Swinburne of Morgan Stanley. Please proceed with your question.

Ben Swinburne: Thanks. Hello again. Greg, a couple of questions on Charter. Yesterday, there was a bipartisan group of senators introduced an ACP Extension Act in the Senate. Obviously, I don't know if you-- you didn't mention anything in your prepared remarks on this front. I'm curious if you have any-- if there's any ray of hope here that there might be a kick save last minute on ACP. And then, similarly on Charter, you know, you could probably make an argument, I don't know if you would agree, probably not, given the Liberty lens, that maybe deleveraging would be better for the equity value than buying back stock here.

Ben Swinburne: Thanks, Hello again.

Gregory B. Maffei: Greg, a couple questions on Charter. Yesterday, a bipartisan group of senators introduced an ACP extension act in the Senate. I don't know if you mentioned anything in your prepared remarks on this front, but I'm curious if you have any, if there's any ray of hope here that there might be a last minute kick save on ACP. And then, similarly, on Charter, you can probably make an argument, I don't know if you would agree, probably not, given the Liberty lens, that maybe deleveraging would be better for the equity value than I'm just curious, you know, what your position is on that when you think about interest rates and kind of what the credit markets look like right now relative to the stock price and the kind of...

Gregory B. Maffei: Couple of questions on charter.

Gregory B. Maffei: Yesterday, there was a bipartisan group of Senators introduced some and ACP extension Act.

Gregory B. Maffei: In the Senate obviously.

Gregory B. Maffei: Don't know if you you Didnt mentioned anything in in your prepared remarks on this front I'm curious if you have any if there's any ray of hope here that there might be a kick save last minute on ACP and then.

Gregory B. Maffei: Similarly on charter.

Gregory B. Maffei: Probably make an argument I don't know if you would agree probably not given the liberty lens that maybe deleveraging would be better for the equity value than buying back stock here I'm. Just curious you know what your position is on that when you think about interest rates and kind of what the credit markets look like right now relative to the stock price and the company's free cash flow.

Ben Swinburne: I'm just curious, you know, what your position is on that when you think about interest rates and, kind of, what the credit markets look like right now relative to the stock price and the company's free cash flow generation. Thanks a lot.

Speaker Change: Thanks, a lot.

Greg Maffei: I have to say, I only just heard a little bit about the in the Senate on the ACP extension. Don't know much to comment beyond it. I think there's always hope, but, you know, there is certainly a while there is some consensus, both among Republicans and Democrats, for extending it, there also seems to be many procedural issues that are, you know, why it might get tied up, and, and therefore, you know, we can't certainly count on it. On the leverage question, I think, Ben, you may have noticed that both our comments said in the near term, we expect to use more of the cash flow we get from Charter through buybacks to-... reduce our debt at Liberty Broadband.

Gregory B. Maffei: I have to say, I only heard a little bit about the and the Senate on the ACP extension, so I don't know much to comment beyond that.

Speaker Change: I have to say I, only just heard a little bit about the.

Gregory B. Maffei: But as it happened in the center on the ACP extension don't know much to comment beyond it I think there's always hope but.

Gregory B. Maffei: I think there's always hope, but, you know, there is certainly a, while there is some consensus both among Republicans and Democrats for extending it, there also seems to be many procedural issues that are, you know, why it might get tied up, and therefore, you know, we can't certainly count on it. On the leverage question, I think, Ben, you may have noticed that both our comments set more of the cash flow we get from Charter through buybacks to reduce our debt at Liberty Broadband.

Gregory B. Maffei: There is certainly a a.

Gregory B. Maffei: While there is some consensus both among Republicans and Democrats for extending it there also seems to be many procedural issues.

Gregory B. Maffei: Might get tied up and therefore, we can't certainly count on it.

Gregory B. Maffei: On the leverage question.

Speaker Change: Thank Ben.

Speaker Change: You may.

Ben Swinburne: I have noticed that both.

Gregory B. Maffei: Our comments said when the near term we expect to use.

Gregory B. Maffei: More of the cash flow, we get from charter through buybacks to reduce our debt.

Gregory B. Maffei: At Liberty broadband.

Greg Maffei: I think you may have heard also that Charter expects to take its leverage level down from closer to 4 or 5 to the middle of that 4 to 5 range. I think they have heard you, at least to the degree that, while I think the company can support these levels of debt, both companies, we feel just to show the marketplace that we're responsive in the higher cost of interest, we're gonna do some work both sides to reduce the overall leverage.

Gregory B. Maffei: And I think you may have heard also that Charter expects to take its leverage level down from the closer to 4.5 to the middle of that 4 to 4.5 range. So I think they have heard you, at least to the degree that while I think the company can support these levels of debt, both companies, we feel just to show the marketplace that we're responsive and the higher cost of interest, we're going to do some work on both sides to reduce the overall leverage.

Gregory B. Maffei: And I think you may have heard also that charter expect to take its leverage shallow level down from the closer to four five to the middle of that four to four five range. So I think I've heard you at least to the degree that well I think the.

Gregory B. Maffei: The company can support these levels of debt both companies, we feel just to show the marketplace that we're responsive and the higher cost of interest we're going to do some work both sides of the sites to reduce the overall leverage.

Michael Rollins: Okay, thank you.

Ben Swinburne: Okay, thank you.

Speaker Change: Okay. Thank you.

Gregory B. Maffei: Oh.

Operator: The next question comes from Jeff Wlodarczak of Pivotal Research Group. Please proceed with your question.

Operator: The next question comes from Jeff Lodacek of Pivotal Research Group. Please proceed with your question.

Gregory B. Maffei: The next question comes from Jeff load a check of pivotal research group. Please proceed with your question.

Jeff Wlodarczak: Good morning again. I'll also focus on Charter. Charter's EBITDA valuation is about as cheap as it's ever been. It's a discount to the telcos or most of the telcos. Just wanted to get your thoughts, Greg, on the idea that maybe Charter should think about slowing down its footprint expansion and trading up cash to do larger share repurchases. And then, you know, assuming ACP does happen, you know, how successful do you think Charter is gonna be with the tools that it has in not seeing some sort of, you know, ARPU hit in the Q2 or Q3 and keeping most of those most of those subs? Thanks.

Jeff Lodacek: Good morning, again also focus on charter.

Jeff Lodacek: Good morning again. I'll also focus on Charter. Charter's EBITDA valuation is about as cheap as it's ever been, the discount to the telcos or most of the telcos. Just wanted to get your thoughts, Greg, on the idea that maybe Charter should think about slowing down its footprint expansion and freeing up cash to do larger share repurchases. And then, you know, assuming ACP does happen, how successful do you think Charter's gonna be with the tools that it has in not seeing some sort of, you know, ARPU hit in the second or third quarter and keeping most of those subscribers? Thanks. Thanks for the question.

Jeff Lodacek: Charter's EBITA valuations about as cheap as it's ever been.

Jeff Lodacek: Discounts the telcos are most of the telcos just wanted to get your thoughts Greg on the idea that may be charged to think about slowing down its scope for expansion freeing up cash to do a larger share repurchases and then you know assuming ACP does happen.

Jeff Lodacek: How successful do you think charter is going to be with the tools that it has.

Jeff Lodacek: Not seeing some sort of arc, who hit in the second and third quarter and keeping most of this stuff.

Jeff Lodacek: Thanks.

Greg Maffei: Thanks for the question, Jeff. I think on the question of slowdown, look, these are attractive opportunities that they have under B and other programs, but they are being more thoughtful about them, given the alternatives and given the general move towards the market wishing to see free cash flow versus line extension. So I think they're. Chris and team have rightly had a very thoughtful, balanced approach. On ACP, you know, I think there are a bunch of programs which are attractive, and we should be able to do things to mitigate the loss. I do not think they anticipate, you know, big declines in ASP or average revenue per customer, given what we have and how many customers we have and what those programs are likely to achieve.

Speaker Change: Thanks for the question Jeff.

Gregory B. Maffei: Thanks for the question, Jeff. I think on the question of slowdown, look, these are attractive opportunities that they have under BEADS and other programs, but they are being more thoughtful about them given the alternatives and given the general move towards the market wishing to see free cash flow versus line extension. So I think Chris and his team have rightly had a very thoughtful, balanced approach to ACP. You know, I think there are a bunch of programs which are attractive and should be able to do things to mitigate the loss. I do not think they anticipate big declines in ASP, or average revenue per customer, given what we have and how many customers we have and what those programs are like.

Gregory B. Maffei: I think on the question of slowdown look these are attractive opportunities that they have under bes and other programs, but they are being more.

Gregory B. Maffei: Thoughtful about them given the alternatives and given the general move towards the market wishing to see free cash flow.

Gregory B. Maffei: Versus versus line extension, so I think there.

Gregory B. Maffei: Chris and team have right, we had a very thoughtful balanced approach.

Gregory B. Maffei: On ACP.

Gregory B. Maffei: I think there are a bunch of programs which are attractive.

Gregory B. Maffei: Attractive and.

Gregory B. Maffei: And will it shouldn't be able to do things to mitigate the loss I do not I do not think they anticipate Matt big declines in.

Gregory B. Maffei: ASP or average revenue per customer.

Gregory B. Maffei: Given what.

Gregory B. Maffei: What we have and how many customers we have and what those programs are likely to achieve.

Jeff Wlodarczak: All right. Thank you.

Speaker Change: Alright, thank you.

Greg Maffei: Thanks, Jeff.

Speaker Change: Thanks, Jeff.

Operator: The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question.

Gregory B. Maffei: The next question comes from Barton.

Operator: The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question.

Barton Crockett: Crockett of Rosenblatt Securities. Please proceed with your question.

Barton Crockett: Okay, thanks for taking the question. I also wanted to ask you, Greg, for thoughts on a cable question, which is: the growth of mobile seems to be kind of the bright spot in the industry right now with some headwinds on broadband and pay TV at the moment. And you know, there's certainly been some you know, great arguments put out by Charter about the success of some of the buy one, get one free programs and the conversion on that.

Barton Crockett: Okay, thanks for taking the question. I also wanted to ask you, Greg, for thoughts on a cable question, which is: the growth of mobile seems to be kind of the bright spot in the industry right now, with headwinds on broadband and pay TV at the moment. And there's certainly been some great arguments put out by Charter about the success of some of the buy one, get one free programs and the conversion on that.

Barton Crockett: Okay. Thanks for taking the question I also wanted to ask you Greg for her thoughts on our cable question, which is.

Barton Crockett: The growth of mobile.

Barton Crockett: It seems to be kind of a bright spot in the industry right now with some headwinds on broadband and pay TV at the moment and.

Barton Crockett: There's certainly been some.

Barton Crockett: Great arguments put out by charter about the success of some of the buy one get one free programs and the conversion on that.

Barton Crockett: So, Greg, I'm just wondering from your perspective, you know, given that mobile is a great growth story, but it's still pretty small, not material, not really moving the needle in terms of investor sentiment, do you think that there's an opportunity to invest more in mobile, to move quicker, to make it more material, to pursue that future where, you know, your cable companies are the dominant kind of mobile providers like they were with plain old-fashioned telephone in years past? Do you think there's scope to do that? Just your thoughts there would be interesting.

Barton Crockett: So, Greg, I'm just wondering from your perspective, you know, given that mobile's a great growth story, but it's still pretty small, not material, not really moving the needle in terms of investor sentiment. Do you think that there's an opportunity to invest more in mobile to move quicker to make it more material to pursue that future where your cable companies are the dominant kind of mobile providers like they were with the plain old-fashioned telephone in years past? Do you think there's scope to do that? Just your thoughts. That would be interesting.

Barton Crockett: So Greg I'm, just wondering from your perspective.

Barton Crockett: Given that mobile is a great growth story, but it's still pretty small not material not really moving the needle in terms of investor sentiment.

Barton Crockett: Do you think that there is an opportunity to invest more in mobile to move quicker to make it more material to pursue that future where your cable companies are the dominant kind of mobile providers like they were with plain old fashioned telephone.

Barton Crockett: In years passed do you think there's scope to do that.

Barton Crockett: Just your thoughts there would be interesting.

Greg Maffei: Thanks for the question, Barton. Look, I think you're right to note that mobile has been the bright spot, and Charter really has been the most aggressive pursuer of that in the space among the cable companies. So I'm not sure how much more they can put their foot on the gas. I think just in general, there's reduced activity coming into stores, all of that. It's just there's been a slower process, so they're probably getting as much out of mobile as they can right now. And they are continuing to push that product hard, and I do see future success. I'm remain quite bullish on their growth in mobile and how long they'll be able to continue to take share.

Greg: Thanks for the question Barton.

Gregory B. Maffei: Thanks for the question, Barton. Look, I think you're right to note that mobile has been the bright spot, and Charter really has been the most aggressive pursuer of that in the space among the cable companies. So I'm not sure how much more they can put their foot on the gas. I think, just in general, there's reduced activity coming into stores. All of that, it's just there's been a slower process.

Gregory B. Maffei: Look I think you're right to note note that mobile has been a bright spot.

Gregory B. Maffei: In charter really has been the most.

Gregory B. Maffei: Aggressive pursuer of that in the space among the cable companies, so I'm not sure how much more.

Gregory B. Maffei: They can put their foot on the gas.

Gregory B. Maffei: Just in general there's reduced activity coming into stores all of that its just theres been a slower process. So they're probably getting as much out of mobile as they can right now and they are.

Gregory B. Maffei: So they're probably getting as much out of mobile as they can right now, and they are continuing to push that product hard, and I do see future success. I remain quite bullish on their growth in mobile and how long they'll be able to continue to take share.

Gregory B. Maffei: <unk> two.

Gregory B. Maffei: Push that product hard and I do see future success.

Gregory B. Maffei: Remain quite bullish on their growth in mobile and how long they'll be able to continue to take share.

Barton Crockett: Okay. And then if I could switch gears and just ask on Liberty Broadband. You know, given kind of the depressed valuations for cable assets all over the place, is there an opportunity for Liberty Broadband to look at rolling up other cable companies? You know, generally, is there some opportunity there, or is that door really closed on that thought at this moment?

Speaker Change: Okay, and then if I could switch gears and just ask on Liberty broadband.

Gregory B. Maffei: Okay, and then if I could switch gears and just ask you about Liberty Broadband, you know, given kind of the depressed valuations for cable assets all over the place, is there an opportunity for Liberty Broadband to look at rolling up other cable companies, and generally, is there some opportunity there, or is that door really closed on that thought at this moment? Hey Barton, I don't think the door is closed.

Gregory B. Maffei: Now given kind of the depressed valuation for our cable assets all over the place.

Barton Crockett: Is there an opportunity for Liberty broadband to look at rolling up other cable companies.

Gregory B. Maffei: You know generally if there is some opportunity there as that door really close on that thought at this moment.

Greg Maffei: Yeah, Barton, I don't think the door is closed, but in general, given the synergies that Charter has, I think in most cases we'd be better off trying to pursue it through with Charter or through Charter than doing it directly. But I-- you can't say never. There could be one that makes more sense for us for one reason or another, or Charter's appetite is less likely. But, in general, I think we're quite aligned that it's an attractive opportunity, but there aren't an enormous number that are available now that would be appealing, even given Charter's synergies.

Gregory B. Maffei: Hey, Barton I don't think the door is closed but in general.

Gregory B. Maffei: Barton, I don't think the door is closed, but in general, given the synergies that Charter has, I think in most cases we'd be better off trying to pursue it with Charter or through Charter than doing it directly. But you can't say never. There could be one that makes more sense for us for one reason or another, or Charter's appetite is less likely. But in general, I think we're quite aligned that it's an attractive opportunity, but there aren't an enormous number that are available now that would be appealing, even given Charter's synergies.

Gregory B. Maffei: Given the synergies that.

Gregory B. Maffei: Charter has I.

Gregory B. Maffei: I think in most cases, we'd be better off trying to pursue it through with charter or through charter than doing it directly but you can't say never there could be one that makes more sense for us for one reason or another or charters appetite is less likely but.

Gregory B. Maffei: In General I think we're quite aligned that it's an attractive opportunity, but there are an enormous number that are available now that would be appealing even given charter's synergies.

Barton Crockett: Okay, thank you.

Speaker Change: Okay. Thank you.

Greg Maffei: Thank you.

Speaker Change: Thank you.

Operator: The next question is from Michael Rollins of Citi. Please proceed with your question.

Gregory B. Maffei: The next question is from Michael Rollins of Citi. Please proceed with your question.

Operator: The next question is from Michael Rollins of Citi. Please proceed with your question.

Michael Rollins: Thanks, and good morning. Just on Liberty Broadband, another question regarding just the broader NAV discount that you're currently assessing. What do you think the factors are that are driving that discount? And can you discuss the way the board is prioritizing the possibility of shrinking that discount, and the methods that you want to use to do that?

Michael Ian Rollins: Thanks, and good morning, just want Liberty broadband another question regarding just the broader.

Michael Ian Rollins: Thanks and good morning. I'm just on Liberty Broadband.

Gregory B. Maffei: Another question regarding just the broader NAB discount that you're currently assessing: what do you think the factors are that are driving that discount? And can you discuss the way the board is prioritizing the possibility of shrinking that discount? and the methods that you want to use to do that?

Gregory B. Maffei: And if you discount that you're currently assessing what do you think the factors are that are driving.

Gregory B. Maffei: That discount and you discussed the.

Gregory B. Maffei: Way to borders prioritizing the possibility of shrinking that discount.

Gregory B. Maffei: And the message that you want to use to do that.

Greg Maffei: Yeah, I think, you know, we've talked about how these discounts have arisen in the past. There are fewer, it appears there are fewer funds which arbitrage the opportunity. There's more higher cost to borrow on some of those things. You know, we've talked about all that. We're really not the key market participants to judge, but that's what we hear. On our, what we're doing, generally, what we do is we take advantage of the discount by doing share repurchase at the discounted number, and we find that attractive. Obviously, that's slowed a little bit with the pace of Charter's buyback itself, and that's our primary fuel for doing incremental buyback, though we do get free cash flow out of GCI also.

Gregory B. Maffei: Yes, I think we've talked about how these discounts have risen in the past there are fewer it appears there are fewer funds, which arbitrage the opportunity there's more higher cost to borrow and some of those things.

Gregory B. Maffei: Yeah, I think, you know, we've talked about how these discounts have arisen in the past. There are fewer, it appears there are fewer funds which arbitrage the opportunity. There's a higher cost to borrow on some of those things. You know, we've talked about all that.

Gregory B. Maffei: We've talked about all of that we're really not the key market participants to judge, but that's we'll be here on our up what we're doing generally what we do is we take advantage of the discount by doing share repurchase.

Gregory B. Maffei: We're really not the key market participants to judge, but that will be here. On what we're doing, generally, what we do is we take advantage of the discount by doing share repurchase at the discounted price, and we find that attractive. Obviously, that's slow a little bit with the pace of charter buybacks, and that's our primary fuel for doing incremental buybacks, though we do get pre-cash flow out of GCI also. The ultimate mitigation of that usually comes in the form of what we've done with LSXM and SXM or what we did with Liberty Expedia and Expedia or what we did with Elmedia and DirecTV where we eventually So that's the ultimate resolution, and in the interim, the primary means is share repurchase to try and take advantage.

Gregory B. Maffei: At the discounted number and we find that attractive obviously that slow a little bit with the pace of charters buyback itself and Thats, our primary fuel for doing incremental buyback, though we do get free cash flow type GCI also.

Greg Maffei: The ultimate mitigation of that usually comes in the form of what we've done with LSXM and SXM, or what we did with Liberty Expedia and Expedia, or what we did with Liberty Media and DirecTV, where we eventually somehow spin and combine it, or, or if it's already spun, combine our hold co with the op co and end up with a fully valued stock. So that's the ultimate resolution, and in the interim, the primary means is share repurchase to try and take advantage of it.

Gregory B. Maffei: The the <unk>.

Gregory B. Maffei: Ultimate mitigation of that usually comes in the form of what we've done with our <unk> Sx am or what we did with Liberty Expedia and Expedia or what we did with Bell media and direct T V, where we edge eventually somehow spin and combine it or if it's already spun combined our holdco with the Opco and ended up with a fully valued stock.

Gregory B. Maffei: That's the ultimate resolution and in the interim the primary means is share repurchase to try and take advantage of it.

Michael Rollins: In terms of that resolution, is there a significant amount of OpEx synergy or other considerations in the case of Liberty Broadband that investors should be mindful of?

Gregory B. Maffei: And in terms of that resolution.

Gregory B. Maffei: And in terms of that resolution... Is there a significant amount of OpEx synergy or other considerations in the case of Liberty Broadband that investors should be mindful of? Well, Liberty Broadband has an...

Gregory B. Maffei: Is there a significant amount of opex synergy or other consideration in the case of Liberty broadband that investors should be mindful of.

Greg Maffei: Well, Liberty Broadband has some corporate overhead, which would be eliminated in any kind of a transaction. And there, I suspect, would be synergies between GCI and Charter, and GCI's ability to do more effective purchases of programming, more effective purchases of any network elements that would probably be more efficient than GCI can do on a standalone basis. So yes, there are probably some synergies there.

Gregory B. Maffei: Well Liberty broadband has an event has a.

Gregory B. Maffei: Liberty Broadband has some corporate overhead which would be eliminated in any kind of a transaction, and there, I suspect, would be synergies between GCI and Charter and GCI's ability to make more effective purchases of programming, and more effective purchases of any network elements that would probably be more efficient than GCI can do on a stand-alone basis. So, yes, there are probably some synergies.

Gregory B. Maffei: Some corporate overhead which would be eliminated in a any kind of a transaction and there are I suspect would be synergies between GCI in charter and GCI has the ability to do more effective purchases of programming more effective purchases of any network elements that would probably be more efficient.

Gregory B. Maffei: <unk> then GCI can do on a standalone basis. So yes, there are probably some synergies there.

Michael Rollins: Thanks.

Gregory B. Maffei: Thanks.

Operator: Our last question today comes from Jeff Bronchick of Cove Street Capital. Please proceed with your question.

Gregory B. Maffei: Our last question today comes from Jeff <unk> of Cove Street Capital. Please proceed with your question.

Operator: Our last question today comes from Jeff Bronchik of Cove Street Capital. Please proceed with your question.

Jeff Bronchick: Good morning, Greg. How are you? I'm gonna talk about Trip. My quick question would be to you is: Do you think, or have the negotiations taken a, what I call, a Paramount-like situation, where really the interest is in buying the L Trip for control, and that's meeting resistance from taking out all shareholders, or is that not relevant?

Jeff Bronchik: Good morning, Ray. How are you? I'm going to talk about TRIP. And my quick question would be to you is, do you think the negotiations have taken a – what I call a paramount-like situation where really the interest is in buying the L-trip for control, and that's meeting resistance from taking up all shareholders, or is that not relevant?

Jeff Bronchik: Good morning, Greg how are you I'm going to talk about trips and my quick question would be to you is do you think.

Jeff Bronchik: It had been negotiation taken a what I call a paramount like situation where.

Jeff Bronchik: Really be interested in buying the L trip for control and that's meeting resistance from taking up all shareholders or is that not relevant.

Greg Maffei: I don't know enough about Paramount, what's going on or not going on there. I only read what I read, so I can't, I can't make the analogy or not. I can say is, is we had productive discussions with the special committee. We continue to have those discussions, and I don't think there is tension about any kind of a Liberty Trip premium versus Trip. I don't think we've seen that tension in the discussions, and I'm afraid I really can't comment further than that.

Ray: I don't know enough about paramount, what's going on or not going on there I only read what I read it I can't I can't make the analogy or not I can say is as we had productive discussions with the special Committee. We continue to have those discussions and I don't think there is tension about any kind of a.

Gregory B. Maffei: I don't know enough about Paramount, what's going on or not going on there. I only read what I read, so I can't make the analogy or not.

Gregory B. Maffei: I can say we had productive discussions with the special committee. We continue to have those discussions, and I don't think there is tension about any kind of a Liberty TRIP premium versus TRIP. I don't think we've seen that tension in the discussions, and Fred, I really can't comment further than that.

Gregory B. Maffei: Liberty trip premium versus trip I don't think we've seen that tension in the discussions and I'm afraid I really can't comment further than that.

Jeff Bronchick: All right. Paramount, where obviously, someone would like to buy the Redstone stake and not have to offer all other shareholders anything, would be my reference, but thank you.

Jeff Bronchik: Paramount, where obviously someone would like to buy the Redstone stake and not have to offer all other shareholders anything, would be my reference. Thank you.

Gregory B. Maffei: Paramount, where obviously someone with the light to buy at the Redstone stake and not have to offer all other shareholders anything would be my reference, but thank you.

Greg Maffei: In general, I mean, you know, just to, one last point. We have worked hard to try and make sure that we treat all shareholders fairly and not disadvantage, and I certainly haven't sought some big premium from my B position. We've thought to try and make this the best possible transaction for all shareholders.

Gregory B. Maffei: In general, I mean, you know, just to level one last point, we have worked hard to try and make sure that we treat all shareholders fairly and not disadvantage them, and I certainly haven't sought some big premium from my B position. We thought about trying and make this the best possible transaction for all shareholders.

Jeff Bronchik: In General I mean, just one last point, we have worked hard to try and make sure that we treat all shareholders fairly or not.

Gregory B. Maffei: Disadvantaged and I certainly haven't sought some big premium for might be position, we've thought to try and make this the best possible transaction for all shareholders.

Jeff Bronchick: Thank you.

Speaker Change: Thank you.

Gregory B. Maffei: With that, Operator, I think we're done, and thank you to our listening audience once again, and thank you for your interest in Liberty Broadband and Liberty Trip, and we look forward to speaking with you again next quarter, if not sooner.

Greg Maffei: Thank you. With that, operator, I think we're done, and thank you to our listening audience once again, and thank you for your interest in Liberty Broadband and Liberty Trip, and we look forward to speaking with you again next quarter, if not sooner.

Speaker Change: Thank you.

Speaker Change: With that operator, I think we're done and thank you to our listening audience. Once again and thank you for your interest in Liberty broadband and Liberty trip and we look forward to speaking with you again next quarter if not sooner.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

Speaker Change: This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.

Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

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