Q1 2024 Liberty Broadband Corp Earnings Call
Okay.
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.
Welcome to Liberty broadband 2024, Q1 earnings call.
Claire Adams: During the presentation, all participants will be in a listen only mode.
Claire Adams: Afterwards, we will conduct a question and answer session.
Claire Adams: 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.
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 and 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 TripAdvisor with the SEC.
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.
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 about 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.
Operator 3: 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. 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 introduce Greg Maffei, Liberty's President and CEO. Thank you, Claire, and good morning to all.
Claire Adams: 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. 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 introduce Greg Maffei, Liberty's President and CEO.
Claire Adams: The revisions to any forward looking statement contained herein to reflect any change in liberty broadband where it might be tripadvisor 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, Libre'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.
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.
Claire Adams: 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 Advice.
Greg Maffei: Clare and good morning to all.
Operator 3: Today, speaking in 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, earlier in the year, we remain 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.
Greg Maffei: Today, speaking in 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, earlier in the year, we remain 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.
Claire Adams: Today speaking on the call, we will have Liberty broadband chief accounting and principal financial Officer, Brian Wendling.
Claire Adams: Ron Duncan.
Claire Adams: GCI and Pete pounds CFO of GCI will also be available to answer questions.
Claire Adams: Also during Q&A, we will be available to answer questions related to Liberty Tripadvisor.
Greg Maffei: 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 Charter's annual compensation grant. We do expect to resume sales into Charters 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 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 future. 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.
Claire Adams: 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.
Greg Maffei: We do expect to resume sales engine charters buyback this summer.
Greg Maffei: And we also expect that the majority of proceeds which have historically gone to <unk> purchases will continue.
Greg Maffei: Some are going in the future we will.
Operator 3: We will evaluate the best uses 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 the first quarter. 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 OIBDA growth at 2.8% in the first quarter.
Greg Maffei: We will evaluate the best uses 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 the first quarter. 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 OIBDA growth at 2.8% in the first quarter.
Greg Maffei: We'll evaluate the best uses we received proceeds but I do expect in the near term.
Greg Maffei: 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.
Greg Maffei: Looking at charter itself.
Greg Maffei: Internet ads have been challenged across the industry with lower growth across the board in the first quarter.
Greg Maffei: Charter experienced a 72000 subscribers in 2000 subscriber net loss.
Greg Maffei: largely due to continued elevated 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 inventory 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. The mobile bright spot continues to form nicely.
Greg Maffei: Largely from continued elevated competition.
Greg Maffei: Early headwinds from the upcoming ACP exploration and reduced move activity given among other things historically high interest rates mortgage rates.
Greg Maffei: <unk> does remain at historically low levels.
Greg Maffei: And the company did export experienced solid EBIT growth at two 8% in the first quarter.
Operator 3: We are comfortable management can achieve OIBDA growth throughout the year while investing in the business despite facing industry pressures, and they'll achieve that largely due to expense management, which is working quite well. Mobile broadband 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 OIBDA 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.
Greg Maffei: We are comfortable management can achieve OIBDA growth throughout the year while investing in the business despite facing industry pressures, and they'll achieve that largely due to expense management, which is working quite well. Mobile broadband 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 OIBDA 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.
Greg Maffei: We are comfortable management can achieve EBITDA growth throughout the year, while investing in the business.
Greg Maffei: Despite facing industry pressures and they will achieve that largely due to expense management, which is working quite well.
Greg Maffei: Mobile bright spot continues to perform nicely.
Greg Maffei: Charter surpassed eight million total mobile lines, and mobile service revenue accelerated 38% versus the prior year. We're 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 being down versus the prior year. As many of you know, unfortunately, the ACP program was not renewed.
Greg Maffei: Charter surpassed 8 million total mobile lines and mobile service revenue accelerated 38% versus the prior year.
Greg Maffei: Pleased with the spectrum one performance.
Greg Maffei: And we're seeing improving mobile internet and the promotional lines continue to roll off and the business achieve economies of scale.
Greg Maffei: The anytime upgrade program is going to expand our market opportunity.
Greg Maffei: And we do see increased stickiness with customers Internet churn is down versus the prior year.
Greg Maffei: As many of you know unfortunately, the ACP program was not renewed.
Operator 3: 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 this year. Turning briefly to LTRIP, many of you may have seen that we filed a 13D this morning, which outlined disclosed transaction discussions with third parties. We do continue to 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 the first quarter, but it did also offer more muted guidance on its call this morning.
Greg 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 this year. Turning briefly to LTRIP, many of you may have seen that we filed a 13D this morning, which outlined disclosed transaction discussions with third parties. We do continue to 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 the first quarter, but it did also offer more muted guidance on its call this morning.
Greg Maffei: In light of that charter is offering a range of options to retain ACP customers, including the sector spectrum Internet assist program, the Internet 100 product and our retention officer of <unk>.
Greg 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 ALTRIP.
Greg Maffei: Free mobile for one year.
Greg Maffei: Looking briefly at the balance sheet at charter, we do expect leverage will move toward the midpoint of the 4% to four five leverage target, while maintaining our buyback this year.
Greg Maffei: Turning briefly ultra.
Greg 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. We will not be able to comment further on this unless definitive documents are executed or discussions terminate.
Greg Maffei: Many of you may have seen that we filed the 13D this morning, which outlines the season.
Greg Maffei: Transaction discussions with third parties.
Greg Maffei: We do continue to discuss strategic alternatives with Tripadvisor Special Committee.
Greg Maffei: We will not be able to comment further on this unless definitive documents are executed or discussions Germany.
Greg Maffei: Looking at Tripadvisor itself.
Greg 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 App Booking. So with that, I'll turn it over to...
Greg Maffei: Tripadvisor had a good start to the first quarter, but it all did also offer more muted guidance on its call. This morning.
Operator 3: Travel and experiences remain high priorities for consumers despite geopolitical activity and inflationary pressures. At brand Tripadvisor, hotel meta performance was driven by sustained pricing strength offset by lower click volumes. Trip's 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. 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 $3.8 billion. Note this excludes the preferred stock.
Greg Maffei: Travel and experiences remain high priorities for consumers despite geopolitical activity and inflationary pressures. At brand Tripadvisor, hotel meta performance was driven by sustained pricing strength offset by lower click volumes. Trip's 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.
Greg Maffei: Travelling experiences remain high priorities for consumers, despite geopolitical activity and inflationary pressures.
Greg Maffei: Pressures.
Greg Maffei: At brand Tripadvisor Hotel meta performance was driven by sustained pricing strength offset by lower click volumes.
Greg 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.
Greg Maffei: By tour itself saw a record app downloads.
Greg Maffei: <unk> growth and App bookings, so with that I'll turn it over to Brian to discuss the financials. Thank you Greg.
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 $3.8 billion. Note this excludes the preferred stock.
Brian 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 billion.
Greg Maffei: At quarter end Liberty broadband had consolidated cash and cash equivalents of $108 million, which includes $70 million of cash.
Brian Wendling: G C.
Brian 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 Wendling: At quarter end Liberty broadband had a total principal amount of debt of $3 8 billion note. This excludes the preferred stock.
Brian Wendling: Note this excludes the preferred stock. Looking quickly at GCI, GCI's revenue and adjusted OIBIT were flat in the first quarter. Growth in data revenue in both the 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'd note, though, that the video business does not meaningfully impact margins or free cash flow.
Operator 3: Looking quickly at GCI, GCI's revenue and adjusted OIBDA were flat in Q1. Growth in data revenue in both the business and consumer sides, which was offset by declines in other revenue. The decline in 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. 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 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.
Brian Wendling: Looking quickly at GCI, GCI's revenue and adjusted OIBDA were flat in Q1. Growth in data revenue in both the business and consumer sides, which was offset by declines in other revenue. The decline in 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. 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 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.
Brian 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 Wendling: Note, though that the video business does not generate meaning 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 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 in delivery broadband, funded with cash on hand and drawing under its revolver.
Brian 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 Wendling: GCI GCI pay down its revolver by $60 million during the quarter using strong cash from operations at.
Brian Wendling: At quarter end and Leverages defined by its credit agreement was two eight times and Gci's credit facility had $457 million of Undrawn capacity net of letters of credit.
Operator 3: 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. 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. And with that, I'll turn the call back over to Greg. Thanks, Brian. 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. 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.
Brian Wendling: 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. 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. And with that, I'll turn the call back over to Greg.
Brian Wendling: Subsequent to quarter end GCI distributed $150 million of Liberty broadband funded with cash on hand, and drawing under its revolver.
Brian 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 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 three two times with $327 million of Undrawn capacity under its revolver.
Brian Wendling: Net of letters of credit and with that I'll turn the call back over to Greg.
Greg Maffei: Thanks, Brian. 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.
Greg Maffei: 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.
Greg Maffei: Thanks, Brian. 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.
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.
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'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.
Operator: Formation tone will indicate your line is in the question queue.
Operator 3: 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. 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 didn't mention anything in your prepared remarks on this front, but I'm curious 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 could probably make an argument.
Operator: 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: You May press Star two if you would like to remove your question from the queue.
Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Operator: 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 didn't mention anything in your prepared remarks on this front, but I'm curious 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 could probably make an argument.
Ben Swinburne: Thanks, Hello, again, Greg a couple of questions on charter yesterday, there was a bipartisan group of Senators introduced some and ACP extension Act.
Ben Swinburne: Thanks. Hello again.
Greg Maffei: Greg, a couple questions on charter. Yesterday, there was 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. I'm curious if you have any, if there's any ray of hope here that there might be a kick save at the last minute 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 buying back stock here.
Greg Maffei: In the Senate obviously.
Greg Maffei: So 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 similarly on charter.
Operator 3: 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 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. I have to say, I only just heard a little bit about the buyback Zap in the Senate on the ACP Extension. Don't know much to comment beyond it. I think there's always hope, but there is certainly, well, there is some consensus both among Republicans and Democrats for extending it. There also seems to be many procedural issues that are why it might get tied up and therefore we can't certainly count on it.
Ben Swinburne: 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 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.
Greg 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 generation.
Greg Maffei: I'm just curious 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.
Greg Maffei: I have to say, I only just heard a little bit about the buyback Zap in the Senate on the ACP Extension. Don't know much to comment beyond it. I think there's always hope, but there is certainly, well, there is some consensus both among Republicans and Democrats for extending it. There also seems to be many procedural issues that are why it might get tied up and therefore we can't certainly count on it.
Speaker Change: Thanks, a lot.
Greg Maffei: I have to say, I only heard a little bit about it. I think there's always hope, but, you know, there is certainly a consensus both among Republicans and Democrats for extending it, but 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. I have noticed that both Our comments said in the near term we expect more of the cash flow 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.
Speaker Change: I have to say I, only just heard a little bit about the.
Greg Maffei: But it's up in the center on the ACP extension don't know much to comment beyond it I think there's always hope but.
Greg Maffei: There is certainly a a.
Greg Maffei: While there is some consensus both among Republicans and Democrats for extending it there also seems to be many procedural issues there.
Greg Maffei: Might get tied up in and therefore, we can't certainly count on it.
Operator 3: 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. And I think you may have heard also that Charter expects to take its leverage level down from 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 both sides to reduce the overall leverage. Okay. Thank you. The next question comes from Jeff Wlodarczak of Pivotal Research Group. Please proceed with your question. Good morning again.
Greg Maffei: 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. And I think you may have heard also that Charter expects to take its leverage level down from 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 both sides to reduce the overall leverage.
Greg Maffei: On the leverage question.
Speaker Change: Thank Ben.
Greg Maffei: Yeah.
Speaker Change: You may.
Greg Maffei: I have noticed that both.
Greg Maffei: Our comments said when the near term we expect to use.
Greg Maffei: More of the cash flow, we get from charter through buybacks to reduce our debt.
Greg Maffei: At Liberty broadband.
Greg Maffei: And I think you may have heard also that charter expected tickets leveraged Albert level down from the closer to four five to the middle of that four to four five range. So I think they have heard you at least to the degree that well I think the the.
Greg Maffei: 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.
Greg Maffei: Can support these levels of debt both companies.
Greg Maffei: 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.
Ben Swinburne: Okay. Thank you.
Speaker Change: Okay. Thank you.
Operator: The next question comes from Jeff Wlodarczak of Pivotal Research Group. Please proceed with your question.
Greg Maffei: Okay.
Operator: The next question comes from Jeff Lodacek of Pivotal Research Group. Please proceed with your question.
Greg 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 OIBDA 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 freeing up cash to do larger share repurchases. And then assuming ACP does happen, how successful do you think Charter is going to be with the tools that it has in not seeing some sort of RPU hit in Q2 and Q3 and keeping most of those subs? Thanks.
Jeff Lodacek: Good morning again. I'll also focus on Charter. Charter's EBITDA valuation is about as cheap as it's ever been, discounted to the telcos or most of the telcos. I 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 rate purchases. And then, you know, assuming ACP does happen, how successful do you think Charter is going to be with the tools that it has in not seeing some sort of ARPU hit in the second and third quarter and keeping most of those subscribers? Thanks. Thanks for the question.
Jeff Lodacek: Good morning, again also focus on charter charters EBITA valuations, it's about as cheap as it's ever been.
Operator 3: I'll also focus on Charter. Charter's OIBDA 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 freeing up cash to do larger share repurchases. And then assuming ACP does happen, how successful do you think Charter is going to be with the tools that it has in not seeing some sort of RPU hit in Q2 and Q3 and keeping most of those subs? Thanks. Thanks for the question, Jeff.
Jeff Lodacek: Council. 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 and not seeing some sort of you know <unk> hit in the second and third quarter and keeping most of those.
Greg Maffei: Thanks for the question, Jeff.
Jeff Lodacek: Thanks.
Greg Maffei: Thanks for the question, Jeff the I think on the question of slowdown.
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 Chris and his 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 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.
Operator 3: 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 Chris and team have rightly had a very thoughtful, balanced approach. On ACP, 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 likely to achieve. All right. Thank you. Thanks, Jeff. The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question. Okay. Thanks for taking the question.
Greg Maffei: 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 Chris and team have rightly had a very thoughtful, balanced approach. On ACP, 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 likely to achieve.
Greg Maffei: Look these are attractive opportunities that they have under bes and other programs, but they are being more.
Greg Maffei: Thoughtful about them given the alternatives and given the general move towards the market wishing to see free cash flow.
Greg Maffei: Versus versus line extensions, so I think there Chris and team have right, we had a very thoughtful balanced approach.
Greg Maffei: On ACP.
Greg Maffei: Uh huh.
Greg Maffei: I think there are a bunch of programs which are.
Greg Maffei: Attractive.
Greg Maffei: It should be able to do things to mitigate the loss I do not I do not think they anticipate Matt you know big declines in.
Greg Maffei: ASP or average revenue per customer given our.
Greg Maffei: What we have and how many customers we have and what those programs are likely to achieve.
Jeff Wlodarczak: All right. Thank you.
Greg Maffei: Thanks, Jeff.
Speaker Change: Alright, thank you.
Speaker Change: Thanks, Jeff.
Operator: The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question.
Greg Maffei: The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question.
Operator: The next question comes from Barton Crockett of Rosenblatt Securities. Please proceed with your question.
Barton Crockett: Okay. Thanks for taking the 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 headwinds on broadband and pay TV at the moment. And you know, 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.
Operator 3: 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 up by Charter about the success of some of the buy one, get one free programs and the conversion on that. So, Greg, I'm just wondering from your perspective, given that mobile is a great growth story but is 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 plain old-fashioned telephone in years past?
Barton Crockett: 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 up by Charter about the success of some of the buy one, get one free programs and the conversion on that. So, Greg, I'm just wondering from your perspective, given that mobile is a great growth story but is 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 plain old-fashioned telephone in years past?
Barton Crockett: 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 Hum.
Barton Crockett: Ben 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: 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 and 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.
Operator 3: Do you think there's scope to do that? Just your thoughts there would be interesting. 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, Charter. 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. Okay.
Barton Crockett: Do you think there's scope to do that? Just your thoughts there would be interesting.
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, Charter. 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.
Greg Maffei: Thanks for the question Barton.
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 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 remain quite bullish on their growth in mobile and how long they'll be able to continue to take share.
Greg Maffei: Look I think you're right to note note that mobile has been a bright spot and charter really has been the most.
Greg Maffei: Aggressive pursuer of that in the space among the cable companies, so I'm not sure how much more.
Greg Maffei: They can put their foot on the gas the I think 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.
Greg Maffei: <unk> two.
Greg Maffei: Push that product hard and I do see future success.
Greg Maffei: We remain quite bullish on the growth in mobile and how long they will be able to continue to take share.
Barton Crockett: Okay.
Operator 3: Then if I could switch gears and just ask on Liberty Broadband, 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 generally? Is there some opportunity there? Is the door really closed on that thought at this moment? 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 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.
Speaker Change: Okay, and then if I could switch gears and just ask on Liberty broadband.
Barton Crockett: Then if I could switch gears and just ask on Liberty Broadband, 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 generally? Is there some opportunity there? Is the door really closed on that thought at this moment?
Barton Crockett: Okay, and then if I could switch gears and just ask about Liberty Broadband, you know, given the kind of depressed valuations for cable assets all over the place, is there an opportunity for Liberty Broadband to look at rolling up other cable companies?
Barton Crockett: You know 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.
Barton Crockett: You know generally if there's some opportunity there as the door really close on that thought at this moment.
Greg Maffei: You know, generally, is there some opportunity there? Is that door really closed on that thought at this moment? Hey Barton, I don't think the door is closed.
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 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.
Greg Maffei: Hey, Barton I don't think the doors closed but in general given.
Greg 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.
Greg Maffei: Given the synergies that.
Greg Maffei: 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 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.
Operator 3: 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 synergies. Okay. Thank you. Thank you. The next question is from Michael Rollins of Citi. Please proceed with your question. 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? Yeah. I think we've talked about how these discounts have risen in the past. It appears there are fewer funds which arbitrage the opportunity. There's a higher cost to borrow on some of those things. We've talked about all that.
Greg Maffei: 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 synergies.
Greg 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.
Operator: The next question is from Michael Rollins of Citi. Please proceed with your question.
Speaker Change: Thank you.
Greg 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 Rollins: Thanks, and good morning, just wanted Liberty broadband another question regarding just the broader.
Michael Rollins: Thanks and good morning. I'm just on Liberty Broadband.
Michael Rollins: Another question regarding just the broader issues 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 Rollins: And even discount that you're currently assessing what do you think the factors are that are driving.
Michael Rollins: That discount and you discussed the.
Michael Rollins: The board is prioritizing the possibility of shrinking that discount.
Michael Rollins: And the message that you want to use to do that.
Greg Maffei: Yeah. I think we've talked about how these discounts have risen in the past. It appears there are fewer funds which arbitrage the opportunity. There's a higher cost to borrow on some of those things. We've talked about all that.
Michael Rollins: 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.
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 a higher cost to borrow on some of those things. You know, we've talked about all that.
Greg 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.
Operator 3: We're really not the key market participants to judge, but that's what we hear. On 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. 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 LMedia and DirecTV, where we eventually somehow spin and combine or if it's already spun, combine our holdco with the opco and end up with a fully valued stock. So that's the ultimate resolution.
Greg Maffei: We're really not the key market participants to judge, but that's what we hear. On 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. 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 LMedia and DirecTV, where we eventually somehow spin and combine or if it's already spun, combine our holdco with the opco and end up with a fully valued stock. So that's the ultimate resolution.
Greg 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 the buyback itself, and that's our primary fuel for doing incremental buybacks, though we do get free cashflow at FGCI 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 somehow spin So that's the ultimate resolution, and in the interim, the primary means is share repurchase to try and take advantage.
Greg Maffei: At the discounted number and we find that attractive obviously that slow a little bit with the pace of charters buyback itself and that's our primary fuel for doing incremental buyback that we do get free cash flow type GCI also.
Greg Maffei: The the.
Greg Maffei: Ultimate mitigation of that usually comes in the form of what we've done with our six seven S exam 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 spinning combine up or if it's already spun combined our holdco with the Opco and ended up with a fully valued stock.
Greg Maffei: So that's the ultimate resolution and in the interim the primary means is share repurchase to try and take advantage of it.
Operator 3: In the interim, the primary means is share repurchase to try and take advantage of it. 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 some corporate overhead, which would be eliminated in any kind of a transaction. 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 many network elements that would probably be more efficient than GCI can do on a standalone basis. So yes, there are probably some synergies there. Thanks. Our last question today comes from Jeff Bronchick of Cove Street Capital. Please proceed with your question. Good morning, Greg. How are you? I'm going to talk about trip.
Greg Maffei: 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?
Greg Maffei: And in terms of that resolution.
Michael Rollins: And in terms of that resolution, is there a significant amount of OPEC synergy or other considerations in the case of Liberty Broadband that investors should be mindful of? Well, Liberty Broadband has an
Greg Maffei: Is there a significant amount of opex synergy or other considerations 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. 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 many network elements that would probably be more efficient than GCI can do on a standalone basis. So yes, there are probably some synergies there.
Michael Rollins: Well Liberty broadband has an event has a.
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 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.
Greg 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.
Greg Maffei: <unk> then GCI can do on a standalone basis. So yes, there are probably some synergies there.
Michael Rollins: Thanks.
Operator: Our last question today comes from Jeff Bronchick of Cove Street Capital. Please proceed with your question.
Greg Maffei: Thanks.
Greg 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 going to talk about trip.
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: Good morning, Greg. 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 out 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 make the analogy or not.
Operator 3: And my quick question would be to you is, do you think 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? 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. I can say 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 Fred, I really can't comment further than that. All right.
Jeff Bronchick: And my quick question would be to you is, do you think 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?
Greg Maffei: It had been negotiation taken a what I call a paramount like situation where.
Greg Maffei: 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.
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 make the analogy or not. I can say 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 Fred, I really can't comment further than that.
Greg Maffei: I don't know enough about paramount, what's going on or not going on there I only read what I read and 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.
Greg 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 I'm afraid I really can't comment further than that.
Greg 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.
Operator 3: 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. In general, I mean, just one last point, we have worked hard to try and make sure that we treat all shareholders fairly and not disadvantaged. 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. Thank you. 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 TripAdvisor. And we look forward to speaking with you again next quarter, if not sooner. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
Jeff Bronchick: 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.
Greg Maffei: Paramount, where obviously someone would like to buy at 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 reputation.
Greg Maffei: In general, I mean, just one last point, we have worked hard to try and make sure that we treat all shareholders fairly and not disadvantaged. 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.
Greg Maffei: In general, I mean, you know, just 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, you know well.
Jeff Bronchik: One last point, we have worked hard to try and make sure that we treat all shareholders fairly or not.
Greg 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.
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 TripAdvisor. And we look forward to speaking with you again next quarter, if not sooner.
Speaker Change: Thank you.
Greg 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.
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.
Greg Maffei: 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.
Greg Maffei: This.
Operator: This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.
Speaker Change: Today's conference you may disconnect your lines at this time, thank you for your participation.
Operator: [music].
Operator: Okay.
Operator: Yeah.
Operator: Okay.
Operator: [music].
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Operator: Yeah.
Speaker Change: Uh huh.
Operator: Yes.
Operator: [music].
Operator: Okay.
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Music/Background: Yeah.
Music/Background: [music].