Q2 2024 Liberty Broadband Corp Earnings Call

August 8, 2024

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 FBI. These forward-looking statements speak only as of the date of this call, and Liberty Broadband and Liberty Trip Advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband's or Liberty Trip Advisor's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based.

Operator: Welcome to the Liberty Broadband 2024 Q2 earnings call. During the presentation, all participants will be in a listen-only mode. Afterward, we will conduct a question-and-answer session. At that time, if you have a question, please press star one on your telephone keypad.

Operator 2: Welcome to the Liberty Broadband 2024 Q2 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star one on your telephone keypad. As a reminder, this conference is being recorded today, 8 August 2024. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go ahead.

Operator: Welcome to the Liberty Broadband 2024 Q2 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. At that time, if you have a question, please press star one on your telephone keypad. As a reminder, this conference is being recorded today, 8 August 2024. I would now like to turn the call over to Clare Adams, Senior Manager, Investor Relations. Please go ahead.

Welcome to the Liberty Broadband 2024 Q2 Earnings Call.

Operator: 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 keypad. As a reminder, this conference is being recorded today, August 8, 2024. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go ahead.

Operator: During the presentation, all participants will be in a listen-only mode.

Operator: Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press star 1 on your telephone keypad. As a reminder, this conference is being recorded today, August 8, 2024. I would now like to turn the call over to Claire Adams, Senior Manager, Investor Relations. Please go ahead.

Operator: As a reminder, this conference is being recorded today, August 8, 2024.

Claire Adams: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted Width Up. 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, Liberties President and CEO.

Claire Adams: I would now like to turn the call over to Claire Adams, Senior Manager and Investor Relations. Please go ahead.

Greg Maffei: Thank you, Claire. Good morning to all our listeners. 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 Pound, CFO of GCI, will also be available to answer questions, and during Q&A, we will answer questions if there are any related to Liberty Trip Advisor. So, beginning first with Liberty Broadband. In July, we issued $860 million of a 3-in-8 charter exchangeable.

Claire Adams: Good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements in the meeting 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-K held by Liberty Broadband and Liberty TripAdvisor with the SEC.

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 statements 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.

Greg Maffei: We used the proceeds from that offering to repay $540 million under our Charter Margin Loan and repurchase $300 million of our existing 3-Eighth and 1-Eighth Exchange. We've also extended the margin loan maturity to 2027, and our 2020 six debt maturities are now spread through 2020. As a result of these actions, we expect.

Claire Adams: 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 Trip Advisor with the SEC.

Claire Adams: Before looking statements, speak only out of the date of this call. In Liberty Broadband and Liberty TripAdvisor, expressly display any obligation or undertaking to disseminate any updates through revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband or Liberty TripAdvisor's expectations with regard there to, 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 with us. Information regarding the comparable GAB metrics, along with required definitions and reconciliation, including preliminary note and schedules one and two, can be found in the earnings press release issued today, as well as earnings release.

Greg Maffei: We resumed our sales at Liberty Broadband into charters back in June. With the proceeds, we will continue to take a prudent approach to retiring debt, and that is our current focus. We will also evaluate those LBRD buybacks as cash bills from charter share repurchases, uh... Charter. They reported a net subscriber loss of 149,000 broadband subscribers, but the majority of those were due to ACP. The broadband trend did improve throughout the quarter with the lowest net loss in years.

Claire Adams: 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.

Claire Adams: to reflect any change in Liberty Broadband or Liberty Trip Advisor's expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based.

Claire Adams: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted WISA. 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, Liberties President and CEO.

Clare Adams: On today's call, we'll discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted OIBDA. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary note and schedules one and two, can be found in the earnings press release issued today, as well as earnings releases 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: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted OIDA.

Claire Adams: Information regarding the comparable gap 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.

Claire Adams: This is for prior periods, which are available on Liberty Broadband's website.

Greg Messiah: Now I'd like to introduce Greg Messiah at Liberty's President and CEO. Thank you, Claire. Good morning to all our listeners.

Greg Maffei: Thank you, Claire, and good morning to all our listeners. 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 Peter Pounds, CFO of GCI, will also be available to answer questions. And during Q&A, we will answer questions, if there are any, related to Liberty Trip Advisor. So beginning first with Liberty Broadband. In July, we issued $860 million of the 3 1/8 charter exchangeables. We used the proceeds from that offering to repay $540 million under our charter margin loan and repurchased $300 million of our existing 3 1/8 exchangeables. We've also extended the margin loan maturity to 2027, and our 2026 debt maturities are now spread through 2028. As a result of these actions, we expect substantial interest savings.

Greg Maffei: Thank you, Clare, and good morning to all our listeners. 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 Peter Pounds, CFO of GCI, will also be available to answer questions. And during Q&A, we will answer questions, if there are any, related to Liberty Trip Advisor. So beginning first with Liberty Broadband. In July, we issued $860 million of the 3 1/8 charter exchangeables. We used the proceeds from that offering to repay $540 million under our charter margin loan and repurchased $300 million of our existing 3 1/8 exchangeables. We've also extended the margin loan maturity to 2027, and our 2026 debt maturities are now spread through 2028. As a result of these actions, we expect substantial interest savings.

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

Greg Messiah: Today, speaking of the call we will have, Liberty Broadband's Chief Accounting and Principal Financial Officer Brian Wendling, Ron Duncan, CEO of GCI, and Pete Pound, CEO of GCI, will also be available to answer questions. And during Q&A, we will answer questions if there are any related to Liberty TripAdvisor.

Claire Adams: Thank you, Claire.

Speaker Change: good morning all our listeners today speak in the call we will have liberty broadband chf accounting and principal financi louser brian wling ron duncan co of g ci i and p poundc of all of g ci will also be available to answer questions

Greg Maffei: And during Q&A, we will answer questions if there are any related to Liberty Trip Advisor.

Greg Messiah: So, beginning first with Liberty Broadband, in July, we issued 860 million of a 3-0-8 Charter exchangeables. We used the proceeds from that offering to repay 540 million under our charter margin loan and repurchased 3-0-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1- 1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1 Management did a great job of expense management working with the growing realization impacts of that in the second quarter. They continue to manage the cost structure without sacrificing growth. Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile blinded additions. The Anytime Upgrade program is driving RPU as customers increasingly chose Unlimited Plus plan.

Greg Maffei: Charter reported solid inhibited growth of 2.6% versus the prior year and 100 basis point margin improvement. Management did a great job, All expense management, working with the growing realization impacts of that in the second quarter. They continue to manage the cost structure without sacrificing. Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile line net additions.

Greg Maffei: So, beginning first with Liberty Broadband.

Greg Maffei: In July , we issued $860 million of a 3-in-8 charter exchangeables.

Greg Maffei: We used the proceeds from that offering to repay $540 million under our Charter Margin Loan and repurchase $300 million of our existing 3-Eighth and an Eighth Exchange Loans. We've also extended the margin loan maturity to 2027, and our 2020 six debt maturities are now spread through 2020, as a result of these actions. We resumed our sales at Liberty Broadband into charters back in June. With the proceeds, we will continue to take a prudent approach to retiring debt, and that is our current focus.

Greg Maffei: We used the proceeds from that offering to repay 540 million under our charter margin loan and repurchase 300 million of our existing three and an eighth exchangeable

Greg Maffei: We've also extended the margin loan maturity to 2027.

Greg Maffei: And our 2020 six debt maturities are now spread through 2028.

Greg Maffei: As a result of these actions, we expect substantial interest savings.

Greg Maffei: We resumed our sales at Liberty Broadband into Charter's buyback in June. With the proceeds, we will take, continue to take a prudent approach about retiring debt, and that is our current focus. We will also evaluate those LBRD buybacks as cash builds from Charter share repurchases. Charter, looking at Charter, the underlying company, they had well-received strong results in the quarter against a competitive backdrop and the expiration of the ACP program. They reported a net subscriber loss of 149,000 broadband subs, but the majority of those were due to ACP. And the broadband trends did improve throughout the quarter, with the lowest net loss in June. Charter reported solid EBITDA growth of 2.6% versus the prior year and a 100 basis point margin improvement.

Greg Maffei: We resumed our sales at Liberty Broadband into charters by back in June .

Speaker Change: with the proceeds we will take continue to take a prudent approach about retiring debt and that is our current focus we will also about evaluate those ldrrg buybacks as cash bills from charter share repurchases

Greg Maffei: We will also evaluate those LBRD buybacks as cash bills from charter share repurchase, Uh... Charter. Looking at the Charter for the underlying company, they had well received strong results in the quarter against a competitive backdrop and the expiration of the ACP program. They reported a net subscriber loss of 149,000 broadband subscribers, but the majority of those were due to ACP. The broadband trend did improve throughout the quarter with the lowest net loss in years.

Greg Maffei: Charter reported solid inhibited growth of 2.6% versus the prior year and 100 basis point margin improvement. Management did a great job of expense management working with the growing realization impacts of that in the second quarter. They continue to manage the cost structure without sacrificing. Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile line net additions.

Speaker Change: Charter, looking at the Charter of the underlying company, they had well-received strong results in the quarter against a competitive backdrop and the expiration of the ACP program. They reported a net subscriber loss of 149,000 broadband subs.

Speaker Change: but the majority of those were due to atp

Speaker Change: the broadband trend it improved throughout the quarter with the lowest net loss in june

Greg Maffei: Charter reported solid inhibited growth of 2.6% versus the prior year and a hundred basis point margin improvement.

Greg Maffei: Management did a great job of expense management, working with the growing realization impacts of that in the second quarter. They continue to manage the cost structure without sacrificing growth. Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile line net additions. The Anytime Upgrade program is driving ARPU, as customers increasingly chose Unlimited Plus plan. The phone buyout program for multi-line households to move more easily to Spectrum Mobile is also being very effective. We expect continued EBITDA growth through the back half of the year. We will see the AC impact mostly in the third quarter and some in the fourth, but believe Charter is managing that transaction effectively.

Greg Maffei: Management did a great job of expense management, working with the growing realization impacts of that in the Q2. They continue to manage the cost structure without sacrificing growth. Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile line net additions. The Anytime Upgrade program is driving ARPU, as customers increasingly chose Unlimited Plus plan. The phone buyout program for multi-line households to move more easily to Spectrum Mobile is also being very effective. We expect continued EBITDA growth through the back half of the year. We will see the AC impact mostly in the Q3 and some in the fourth, but believe Charter is managing that transaction effectively.

Greg Maffei: Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering.

Greg Maffei: Charter reported 557 mobile line net additions.

Greg Maffei: The Anytime Upgrade Program is driving ARPU as customers increasingly choose... The Unlimited Plus Plan, a phone buyout program for multi-line households to move more easily to Spectrum Mobile, is also being very effective. We expect continued EBITDA growth in the back half of the year. We will see the AC impact mostly in the third quarter and some in the fourth, but believe Charter is managing that transition effectively. The cost initiatives continue to support the highest margins to date, and we do expect to see political spending ramp up through the year. We also expect to see continued strong mobile performance. Charter reduced leverage during the quarter to 4.32 times.

Greg Maffei: The Any Time Upgrade Program is driving ARPU as customers increasingly choose the Unlimited Plus Plan, a phone buyout program for multiline households to move more easily to Spectrum Mobile, is also being very effective. We expect continued EBITDA growth in the back half of the year. We will see the AC impact mostly in the third quarter and some in the fourth, but believe Charter is managing that transition effectively. The cost initiatives continue to support the highest margins to date, and we do expect to see political spending ramp up through the year. We also expect to see continued strong global performance. Charter reduced leverage during the quarter to 4.32 times.

Greg Maffei: the any time upgrade program is driving arpup as customers increasingly chose unlimited plus plan

Greg Messiah: The phone bio program for multi-line households to move more easily to Spectrum Mobile is also being very effective. We expect continued Ibit of growth to the back half of the year. We will see the AC impact mostly in the third quarter and some in the fourth, but believe Charter is managing that transaction effectively. The cost initiatives continue to support the highest margin to date, and we do expect to see political spending ramp to the year. We also expect to see continued strong mobile performance. Charter reduced leverage during the quarter to 4.32 times, and Charter expects to continue to move closer to the middle of the target of the four to four and a half times leverage range throughout the year.

Greg Maffei: The phone bioprogram for multiline households to move more easily to Spectrum Mobile is also being very effective.

Greg Maffei: We expect continued EBITDA growth in the back half of the year.

Greg Maffei: We will see the AC impact mostly in the third quarter and some in the fourth.

Greg Maffei: but believe Charter is managing that transition effectively.

Greg Maffei: The cost initiatives continue to support the highest margins to date, and we do expect to see political spending ramp through the year. We also expect to see continued strong mobile performance. Charter reduced leverage during the quarter to 4.32 times, and Charter expects to continue to move closer to the middle of the target of the 4 to 4.5 times leverage range throughout the year. Turning now to Liberty TripAdvisor. We continue to evaluate strategic alternatives with Tripadvisor's special committee, and we will not be able to comment further until or unless the definitive documents are executed or discussions terminate. Looking at Tripadvisor itself, during the quarter, it felt continued pressure on Hotel Meta in brand Tripadvisor from both FCO and FCM structural challenges, with weaker demand and increased competition.

Greg Maffei: The cost initiatives continue to support the highest margins to date, and we do expect to see political spending ramp to the year. We also expect to see continued strong mobile performance, charter-reduced leverage during the quarter to 4.32 times.

Greg Maffei: Charter expects to continue to move closer to the middle of the target of the 4 to 4.5 times leverage range throughout. Turning now to Liberty Trip. We continue to evaluate strategic alternatives with TripAdvisor's special committee. We will not be able to comment further until or unless definitive documents are executed or discussions take place looking at TripAdvisor itself. During the quarter, it felt continued pressure on Hotel Meda, its in-brand trip advisor, from both SCO and SCM structural challenges with weaker demand and increased competition. However...

Greg Maffei: The Charter expects to continue to move closer to the middle of the target of the 4 to 4.5 times leverage range throughout the year. Turning now to Liberty Trip. We continue to evaluate strategic alternatives with TripAdvisor's special committee. We will not be able to comment further until or unless definitive documents are executed or discussions take place looking at TripAdvisor itself. During the quarter, it felt continued pressure on Hotel Meta and Grand Trip Advisor from both SCO and SCM structural challenges with weaker demand and increased competition.

Greg Maffei: and Charter expects to continue to move closer to the middle of the target of the 4 to 4.5 times leverage range throughout the year.

Greg Messiah: Turning down to Liberty Trip, we continue to evaluate strategic alternatives with TripAdvisor Special Committee, and we will not be able to comment further until or unless the definitive documents are executed or discussions terminate. Looking at TripAdvisor itself, during the quarter it felt continued pressure on hotel medit, in brand TripAdvisor from both FCO and FTM structural challenges with weaker demand and increased competition. However, positive early votes from strategy work launched last year are beginning to take hold. We've seen a growing share of app users and direct channel activity where there's more monetization opportunity available. Members using Trip's planning tool have a 15 times higher output than the platform-wide average.

Greg Maffei: Turning now to Liberty Trip.

Greg Maffei: We continue to evaluate strategic alternatives with TripAdvisor Special Committee.

Greg Maffei: and we will not be able to comment further until or unless definitive documents are executed or discussions terminate.

Greg Maffei: looking at TripAdvisor itself.

Greg Maffei: During the quarter, it felt continued pressure on Hotel Meda, in-brand trip advisor, from both SCO and SCM structural challenges with weaker demand and increased competition.

Greg Maffei: However, positive early votes from strategy work launched last year are beginning to take hold. We've seen a growing share of app users and direct channel activity where there's more monetization opportunities available. Members using TRIPS Planning Tool have a 15 times higher ARPU than the platform-wide average. The strategy is designed to drive a mix shift over time from legacy offerings to focus on member value, a differentiated app experience, and engaging product value. For example, AI-powered review summaries and hotel booking directly into the app and user upgrades are much more effective and better monetization opportunities for us.

Greg Maffei: However, positive early results from strategy work launched last year are beginning to take hold. We've seen a growing share of app users and direct channel activity, where there's more monetization opportunity available. Members using Trip's planning tool have a 15 times higher ARPU than the platform-wide average. The strategy is designed to drive mix shift over time from legacy offerings to focus on member value, a differentiated app experience, and engaging product features. For example, AI-powered review summaries and hotel booking directly into the app, and user upgrades are much more effective and better monetization opportunities for us. Looking at the other businesses within Trip, Viator and TheFork both increased their contribution, rather, to the profit mix. Viator saw a doubling of active bookers who log into the app, which led to higher conversion, better repeat rates, and GBV growth.

Greg Maffei: Early positive revolts from strategy work launched last year are beginning to take hold. We've seen a growing share of app users and direct channel activity where there's more monetization opportunities available. Members using TRIPS Planning Tool have a 15 times higher ARPU than the platform-wide average. This strategy is designed to drive a makeshift over time from legacy offerings to focus on member value, a differentiated app experience, and engaging product value. For example, AI-powered review summaries and hotel booking directly into the app and user upgrades are much more effective and better monetization opportunities for us.

Greg Maffei: However,

Greg Maffei: Positive early revolts from strategy work launched last year are beginning to take hold. We've seen a growing share of app users and direct channel activity where there's more monetization opportunity available.

Greg Maffei: Members using TRIPS Planning Tool have a 15 times higher ARPU than the platform-wide average.

Greg Messiah: Strategy is designed to mix drive-mix shift over time from legacy offerings to focus on member value, a differentiated app experience, and engaging product features. For example, AI-powered review summaries and hotel booking directly into the app, and user upgrades are much more effective and better monetization opportunities for us. Looking at the other businesses within Trip, FIATOR and the fourth both increase their competition rather to the profit mix. FIATOR saw a doubling of active bookers who log into the app, which led to higher conversion, better repeat rates, and GBB growth.

Greg Maffei: The strategy is designed to drive mix shift over time from legacy offerings to focus on member value, a differentiated app experience, and engaging product features.

Greg Maffei: For example, AI-powered review summaries and hotel booking directly into the app and user upgrades are much more effective and better monetization opportunities for us.

Greg Maffei: Looking at the other businesses within TRIP, Viator and The Fork both increased their contribution to the profit mix. Viator saw a doubling of active bookers who logged into the app, which led to higher conversion, better repeat rates, and GBV growth.

Greg Maffei: Looking at the other businesses within TREP, Viator and The Fork both increased their contribution to the profit mix.

Greg Maffei: Viator saw a doubling of active bookers who log into the app which led to higher conversion, better repeat rates, and GBV growth.

Brian Wendling: So, with that, I'll turn it over to Brian to discuss it. Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalents of 73 million, which includes 47 million of cash at GCI.

Greg Maffei: So with that, I'll turn it over to you.

Greg Maffei: With that, I'll turn it over to Brian to discuss the financials.

Brian Wendling: Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $73 million, which included $47 million of cash at GCI. The value of our charter investment based on our shares held as of August 1st and the charter share price as of yesterday's close was $16.2 billion, and at quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion, including the debt at GCI. Note that this excludes the preferred stock.

Greg Maffei: So, with that, I'll turn it over to Brian to discuss it.

Brian Wendling: Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $73 million, which includes $47 million of cash at GCI. The value of our Charter investment, based on our shares held as of 1 August, and Charter share price as of yesterday's close, was $16.2 billion. And at quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion, including the debt at GCI. Note that this excludes the preferred stock. Looking quickly at GCI, revenue is up $1 million over the prior year, driven by continued strength in data sales, particularly to our rural healthcare and school customers, partially offset by declines in wireless and other revenue. Adjusted OIBDA decreased to $6 million due to higher operating costs, as well as increased SG&A expense from labor-related costs and increased professional services.

Speaker Change: Thank you, Greg. At quarter-end, Liberty Broadband had consolidated cash and cash equivalents of $73 million.

Brian Wendling: Value of our charter investment based on our share's health. As of August 1st, in charter share price as of yesterday's close was 16.2 billion, and at quarter end, Liberty Broadband had a total principal amount of debt of 3.7 billion, including the debt at GCI. Note that this excludes the preferred stock. Looking quickly at GCI, revenue is up a million over the prior year, driven by continued strength and data sales, particularly to our rural health care and school customers, partially offset by declines in wireless and other revenue. Adjusted to pivoted decreased 6 million due to higher operating costs, as well as increased SGNA expense from labor-related costs and increased professional services.

Speaker Change: which includes $47 million of cash at GCI. The value of our charter investment based on our shares held as of August 1st and charter share price as of yesterday's close was $16.2 billion.

Brian Wendling: and at quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion, including the debt at GCI. Note that this excludes the preferred stock.

Speaker Change: And at quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion including the debt at GCI. Note that this excludes the preferred stock.

Brian Wendling: Looking quickly at GCI, revenue is up a million over the prior year, driven by continued strength in data sales. During the quarter, 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-net neutral to Liberty Broadband.

Brian Wendling: Looking quickly at GCI, revenue is up a million over the prior year, driven by continued strength in data sales, particularly to our rural health care and school customers, partially offset by declines in wireless and other revenue. Adjusted OEBDA decreased $6 million due to higher operating costs as well as increased SG&A expense from labor-related costs and increased professional services over the last year, adjusted for the reclassification from GCI Business. DCI consumers saw a decline of 1,000 revenue-generating wireless subscribers, and cable modem subscribers declined by 2,500, mostly driven by the expiration of the ACP program.

Brian Wendling: Looking quickly at GCI, revenue is up a million over the prior year, driven by continued strength in data sales.

Brian Wendling: particularly to our rural health care and school customers, partially offset by declines in wireless and other revenue.

Brian Wendling: Adjusted OEBD decreased $6 million due to higher operating costs as well as increased SG&A expense from labor-related costs and increased professional service fees.

Brian Wendling: Over the last year, adjusted for the reclassification from GCI business. GCI consumers saw a decline of 1,000 revenue generating wireless subs; cable modem subscribers declined by 2,500, mostly driven by the expiration of the ACP program. During the quarter, 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 net new troll to Liberty Broadband. The quarter end GCI's leverage was at 3.2 times, with sufficient cushion in relation to the 6.5 times maximum net leverage covenant threshold stipulated in the credit facility.

Brian Wendling: Over the last year, adjusted for the reclassification from GCI business, GCI Consumer saw a decline of 1,000 revenue-generating wireless subs. Cable modem subscribers declined by 2,500, mostly driven by the expiration of the ACP program. During the quarter, 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 neutral to Liberty Broadband. At quarter end, GCI's leverage was at 3.2 times, with sufficient cushion in relation to the 6.5 times maximum net leverage covenant threshold stipulated in the credit facility. We had $347 million of undrawn capacity under the GCI revolver, net of letters of credit.

Brian Wendling: Over the last year, adjusted for the reclassification from GCI Business, GCI consumers saw a decline of 1,000 revenue-generating wireless subs. Cable modem subscribers declined by 2,500, mostly driven by the expiration of the ACP program.

Brian Wendling: During the quarter, 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-neutral to Liberty Broadband. At quarter end, GCI's leverage was at 3.2 times with sufficient cushion in relation to the 6.5 times maximum net leverage covenant threshold stipulated in the credit facility, and we had $347 million of undrawn capacity under the GCI revolver, net of letters of credit. With that, I'll turn the call back over to Greg. Thanks.

Speaker Change: during the quarter gc distributed one hundred and fifty million delivery broadband on it would cash on hand and and drawing under its revolver these proceedswere used to pay down the charter margin loan and were therefore net that neutral delivery broadgam

Brian Wendling: At quarter end, GCI's leverage was at 3.2 times with sufficient cushion in relation to the 6.5 times maximum net leverage covenant threshold stipulated in the credit facility.

Brian Wendling: We had 347 million of undrawn capacity under the GCI revolver, net of letters of credit.

Brian Wendling: With that, I'll turn the call back over to Greg.

Greg Messiah: With that, I'll turn the call back over to Greg. Thanks, Brian. Our annual investment today will be Thursday, November 14th, in New York.

Brian Wendling: With that, I'll turn the call back over to Greg.

Greg Maffei: Thanks, Brian. Our Annual Investor Day will be Thursday, 14 November, in New York. Note we've moved to a new location. See you at the Jazz at Lincoln Center. Save the date. Additional details will be forthcoming soon. We hope to see many of you there. With that, operator, I'll open the line for questions.

Greg Maffei: Our annual investor day will be Thursday, November 14th in New York. Note: We moved to a new location. See you at the Jazz at Lincoln Center. Save the date. Additional details will be forthcoming soon. We hope to see many of you there. And with that, Operator, I'll open the line for questions.

Brian Wendling: With that, I'll turn the call back over to Greg. Thanks, Brian.

Greg Messiah: No, we move to a new location. See you at the Jazz at Lincoln Center. Save the date. Additional details will be forthcoming soon. We hope to see many of you there.

Speaker Change: Our annual investor day will be Thursday, November 14th in New York. Note we moved to a new location. See you at the Jazz at Lincoln Center. Save the date. Additional details will be forthcoming soon. We hope to see many of you there. And with that, operator, I'll open the line for questions.

Operator: See you at the Jazz at Lincoln Center.

Operator: And with that operator, I'll open the line for questions. Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line isn't the question queue. 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 star keys.

Operator: Thank you. 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. The 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.

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 list. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start key. Our first questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Operator 2: Thank you. At this time, we'll 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 questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Operator: Thank you. At this time, we'll 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 questions come from the line of Barton Crockett with Rosenblatt Securities. Please proceed with your questions.

Operator: Thank you. At this time we'll be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The 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.

Speaker Change: for participants using speakerequipment and maybe necessary to pick up your handset before pressing of thestararchke

Bart and Crockett: Our first questions come from the line of Bart and Crockett with Rosenblatt Securities. Please proceed with your questions. Okay, thank you for taking my questions. There were a couple of things I was kind of interested in. We could address them here.

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

Barton Crockett: Okay, thank you for taking my questions. There were a couple of things I was kind of interested in, to see if we could address them here. One is, I'm curious about the wireless business at GCI and then perhaps a longer term thought for Charter. So, my question is this, to what degree is GCI really focused on subsidizing the kind of device purchases? Just update us on that as we go into what may be a bigger kind of upgrade cycle with the AI presence on the iPhone 16.

Barton Crockett: Okay, thank you for taking my questions. There were a couple of things I was kind of interested in, to see if we could address them here. One is, I'm curious about the wireless business at GCI, and then perhaps a longer-term thought for Charter. So my question is this: to what degree is GCI, you know, really focused on subsidizing kind of device purchases? Just update us on that as we go into what may be a bigger kind of upgrade cycle with the AI presence on the iPhone 16. And, you know, and also, if you have any thoughts about what you expect there in terms of the size of that cycle for GCI.

Speaker Change: okay thank you for taking my questions there couple ofthingsi waskind of interested in see we can address him here one is

Bart and Crockett: One is I'm curious about the wireless business at GCI and then perhaps a longer term thought for Charter. So my question is this: to what degree is GCI really focused on subsidizing kind of device purchases? Just update us on that as we go into what may be a bigger kind of upgrade cycle with the AI presence on the iPhone 16. And also if you have any thoughts about what you expect there in terms of the size of that cycle for GCI and then for Charter and I guess over to Greg.

Speaker Change: i'm curious about the

Speaker Change: the wireless business.

Speaker Change: at GCI and then perhaps a longer-term thought for Charter.

Speaker Change: So, my question is this, is...

Speaker Change: to one degree is gcii you know really focused on subsidizing kind of device purchases just toupdated on that as we go into what may be a bigger kind of upgrade cycle with the ai presence on the iphone and sixteen

Barton Crockett: And, you know, and also, if you have any thoughts about what you expect there in terms of the size of that cycle for GCI and then, you know, for Charter, and I guess over to Greg, just more broadly, I mean, obviously, Charter's not doing the device subsidies, you know, at the level that the major wireless carriers are today. But, you know, one could imagine over time as Charter and the cable peers get bigger and wireless, they will want to, you know, compete in more kind of toe to toe on that basis.

Speaker Change: And, you know, and also if you have any thoughts about what you expect there in terms of the size of that.

Barton Crockett: And then, you know, for Charter, and I guess over to Greg, just more broadly, I mean, obviously, Charter's not doing the device subsidies, you know, at the level that the major wireless carriers are today. But, you know, one could imagine over time, as the Charter and the cable peers get bigger in wireless, that they will want to, you know, compete in more kind of toe-to-toe on that basis. And I was just wondering, you know, Greg, if you agree that that's going to be the general direction, and if so, you know, any thoughts about how the road there might progress slowly, quickly, any steps that could kind of transition you over there?

Greg Maffei: cycle for GCI. And then, you know, for Charter, and I guess over to Greg, just more broadly, I mean, obviously Charter's not doing the device subsidies, you know, at the level that the major wireless carriers are today.

Bart and Crockett: Just more broadly, I mean, obviously Charter is not doing the device subsidies at the level that the major wireless carriers are today. But you know, one could imagine over time as the charter and the cable peers get bigger and wireless that they all want to compete in more kind of toe to toe on that basis. And I was just wondering, Greg, if you agree that that's going to be the general direction, and if so, you know, any thoughts about how the road there might progress slowly, quickly, any steps that could kind of transition you over there.

Speaker Change: But, you know, one could imagine over time, as the charter and the cable peers get bigger and wireless, that they will want to, you know, compete in more kind of toe-to-toe on that basis.

Barton Crockett: And I was just wondering, you know, Greg, if you agree that that's going to be the general direction and, if so, any thoughts about how the road there might progress slowly or quickly, any steps that could kind of transition you or move you over there.

Operator: And I was just wondering, you know, Greg, if you agree that that's going to be the general direction and if so, you know, any thoughts about how the road there might progress slowly, quickly, any steps that could kind of transition you over there.

Greg Maffei: Thanks, Barton. Ron, do you want to take the GCI wireless part of that?

Ron Duncan: Thanks, Barton God. Ron, do you want to take the GCI wireless part of that? Sure, I can do that. And obviously, Barton, GCI is a mobile network operator, not a MBNO like Charter, so we have a different cost structure. We've got a much higher gross margin and even top percentage because we own the network. We're not paying somebody else for it. And we've also got a much higher market share at this point than Charter does. We're probably 40% of the Alaska mobile market overall. And it's one of our two core businesses, along with consumer businesses, along with consumer data.

Greg Maffei: Thanks, Barton. Ron, do you want to take the GCI Wireless part of that?

Ron: thanks bardon go runon do you want take the the gci aw are less part of that

Ron Duncan: Sure, I can do that. And obviously, Barton, as you know, GCI is a mobile network operator, not an MVNO-like charter, so we have a different cost structure. We've got a much higher gross margin and EBITDA percentage because we own the network; we're not paying somebody else for it. And we've also got a much higher market share at this point than Charter does, probably 40% of the Alaska mobile market overall. And it's one of our two core businesses for consumer businesses, along with consumer data. As such, we pretty much have to match or at least be competitive with the majors.

Ron Duncan: Sure, I can do that. And obviously, Barton, as you know, GCI is a mobile network operator, not an MVNO like Charter, so we have a different cost structure. We've got a much higher gross margin and EBITDA percentage because we own the network. We're not paying somebody else for it. And we've also got a much higher market share at this point than Charter does. We're probably 40% of the Alaska mobile market overall, and it's one of our two core businesses, along with, for consumer businesses, along with consumer data. As such, we pretty much have to match or at least be competitive with the majors. And our principal competitor is AT&T. Verizon is not a material player in the market up there. So we pretty much have to match AT&T device subsidies in order to avoid losing subs to them when there's a refresh cycle.

Ron: Sure, I can do that, and obviously, Barton, as you know, GCI is a mobile network operator, not an MVNO-like charter, so we have a different cost structure. We've got a much higher...

Ron: gross margin and EBITDA percentage because we own the network. We're not paying somebody else for it. And we've also got a much higher market share at this point than Charter does.

Ron Duncan: Probably 40% of the Alaska mobile market overall, and it's one of our two core businesses for consumer businesses along with consumer data. As such, we pretty much have to match or at least be competitive with the majors and our principal competitors, AT&T and Verizon. So we pretty much have to match AT&T device subsidies in order to avoid losing subscribers to them when there's a refresh cycle.

Ron Duncan: probably 40% of the Alaska mobile market overall and it's one of our two core businesses for consumer businesses along with consumer data.

Ron Duncan: As such, we pretty much have to match or at least be competitive with the majors, and our principal competitors AT&T, Verizon is not a material player in the market up there. So we pretty much have to match AT&T device subsidies in order to avoid losing subs to them when there's a refresh cycle. In the last couple of years, we've extended the device subsidies from two-year contracts to three-year contracts. That's given us a little lower turnover and a little more stability. We're evaluating right now, but we think that if there's an accelerated device cycle this fall, as a result of AI features, particularly in the Apple phones, it may be an opportunity to grab some more share.

Ron Duncan: As such, we pretty much have to match.

Ron Duncan: And our principal competitor is AT&T. Verizon is not a material player in the market up there. So we pretty much have to match AT&T device subsidies in order to avoid losing subscribers to them when there's a refresh cycle. In the last couple of years, we've extended the device subsidies from two-year contracts to three-year contracts. That's given us a little lower turnover and a little more stability.

Ron Duncan: or at least be competitive with.

Ron Duncan: the majors, and our principal competitors, AT&T, Verizon, is not a material player in the market up there. So we pretty much have to match AT&T device subsidies in order to avoid losing subs to them when there's a refresh cycle.

Ron Duncan: In the last couple of years, we've extended the device subsidies from 2-year contracts to 3-year contracts. That's given us a little lower turnover and a little more stability. We're evaluating right now, but we think that if there's an accelerated device cycle this fall as a result of AI features, particularly in the Apple phones, it may be an opportunity to grab some more share. We've got a better network in Anchorage and most of Alaska than AT&T does. People choose us for that reason, and we're trying to figure out whether enhancing device subsidies a little bit would allow us to gain more share. If we weren't relatively competitive with AT&T, we'd keep the low margin or the low-cost portion of the customer base, but we wouldn't be able to maintain the 40% statewide market share. Greg, back to you.

Ron Duncan: In the last couple of years, we've extended the device subsidies from two-year contracts to three-year contracts, which has given us a little lower turnover and a little more stability. We're evaluating right now, but we think that if there is an accelerated device cycle

Ron Duncan: We're evaluating right now, but we think that if there's an accelerated device cycle this fall as a result of AI features, particularly in Apple phones, it may be an opportunity to grab some more share. We've got a better network in Anchorage and in most of Alaska than AT&T does. People choose us for that reason, and we're trying to figure out whether enhancing device subsidies a little bit would allow us to gain more share. If we weren't relatively competitive with AT&T, we'd keep the low margin or the low cost portion of the customer base, but we wouldn't be able to maintain the 40% statewide market share.

Ron Duncan: this fall as a result of AI features.

Ron Duncan: particularly in the Apple phones, it may be an opportunity to grab some more share.

Ron Duncan: We've got a better network in Anchorage and most of Alaska than AT&T does. People choose us for that reason. And we're trying to figure out whether enhancing the device subsidies a little bit would allow us to gain more share. If we weren't relatively competitive with AT&T, we'd keep a low margin of the low-cost portion of the customer base, but we wouldn't be able to maintain the 40 percent statewide market share.

Ron Duncan: we've got a better network.

Ron Duncan: in Anchorage and in most of Alaska than AT&T does, people choose us for that reason and we're trying to figure out whether enhancing device subsidies a little bit.

Ron Duncan: would allow us to gain more share if we weren't relatively competitive.

Ron Duncan: With AT&T, we'd keep the low margin of the low-cost portion of the customer base, but we wouldn't be able to maintain the 40% statewide market share. Greg, back to you.

Greg Maffei: Greg, back to you. Thanks, Ron. So I think

Greg Messiah: Greg, back to you. Thanks, Ron. So I think, as you rightly know, Charter has not had to offer the kind of subsidies for handsets that many other competitors in the local space have. I think that's largely because of the attractive pricing of the Spectrum Plus offering, particularly, obviously, the year-free line, but even post that, the relative savings of being a Charter Subscriber and having Spectrum Plus or your mobile as well is very attractive compared to the alternatives. So I don't see Charter; you can't predict how the market will go entirely, but I don't see Charter offering or needing to offer the kind of subsidies that other people have because of the attractors that combined offering.

Greg Maffei: Thanks Ron. So, as you rightly know, Charter has not had to offer the kind of subsidies for handsets that many other competitors in the mobile space have had to offer. I think that's largely because of the attractive pricing of the Spectrum Plus offering, particularly the year-free line, but even after that, the relative savings of being a Charter subscriber and having Spectrum Plus for your mobile as well are very attractive compared to the alternatives.

Greg Maffei: Thanks, Ron. So I think, as you rightly note, Charter has not had to offer the kind of subsidies for handsets that many other competitors in the mobile space have. I think that's largely because of the attractive pricing of the Spectrum+ offering, particularly obviously the year-free line. But even post that, the relative savings of being a Charter subscriber and having Spectrum+ for your mobile as well, is very attractive compared to the alternative. So I don't see Charter... You can't project how the market will go entirely, but I don't see Charter offering or needing to offer the kind of subsidies that other people have because of the attractiveness of the combined offering.

Ron Duncan: Thanks Ron. So I think as you rightly know Charter has not had

Ron Duncan: to offer the kind of subsidies for handsets that many other competitors in the mobile space have.

Speaker Change: I think that's largely because of the attractive...

Speaker Change: pricing of the Spectrum Plus offering, particularly obviously the year free line, but even post that the relative savings of being a charter subscriber and having Spectrum Plus

Speaker Change: or your mobile as well, is very attractive compared to the alternative. So I don't see charter, you can't predict how the market will go entirely, but I don't see charter offering or needing to offer the kind of subsidies that other people have because of the attractiveness of the combined offering.

Greg Maffei: So I don't see Charter... can't predict how the market will go entirely, but I don't see Charter offering or needing to offer the kind of subsidies that other people have because of the attractiveness of the combined offer.

Bart and Crockett: Okay, thank you. Thank you.

Barton Crockett: Okay. Thank you.

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

Operator 2: Thank you. Our next question has come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

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

Speaker Change: Okay, thank you.

Ben Swenberg: Our next questions come from the line of Ben Swenberg with Morgan Stanley. Please proceed with your questions.

Speaker Change: thank you our next questions come from the line of ben swimber with morgan anley please proceed with your questions

Greg Messiah: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the US, particularly Team-Obel's acquisition of or JVI, I guess I should say, with Lumus and Metronet and how that impacts your perspective on Charter, both when we think about private and public market multiples, which obviously are pretty far apart right now, and this is just competitively whether you think the level of fiber and converged competition is something that is going to be potentially a headwind for Charter over time. Thanks so much. Yeah, thanks for the question, Ben.

Question from an attendee: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the U.S., particularly T-Mobile's acquisition of, or JV, I guess I should say, with Loomis and Metronet, and how that impacts sort of your perspective on charter, both when we think about kind of private and public market multiples, which are obviously pretty far apart right now, and this just competitively, whether, you Thanks so much.

Greg Maffei: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the U.S., particularly T-Mobile's acquisition of, or JV, I guess I should say, with Loomis and Metronet, and how that impacts sort of your perspective on charter, both when we think about kind of private and public market multiples, which are obviously pretty far apart right now, and this just competitively, whether, you Thanks so much.

Ben Swinburne: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the US, particularly T-Mobile's acquisition of, or JV, I guess I should say, with Lumos and Metronet, and how that impacts sort of your perspective on Charter, both when we think about kind of private and public market multiples, which obviously are pretty far apart right now. And then just competitively, whether, you know, you think the level of fiber and converged competition is something that is gonna be potentially a headwind for Charter over time. Thanks so much.

Question from an attendee: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the U.S. particularly T-Mobile's acquisition of

Question from an attendee: or jv i guess i should say with luma and and and metronet and how that impacts sort of your perspective on charter both when we think about kind of private and public market multiples which shotviously are pretty far apart right now

Question from an attendee: And this just competitively, whether, you know, you think the level of fiber and converged competition is something that is going to be potentially a headwind for charter overtime. Thanks so much.

Greg Maffei: Thanks for the question, Ben. I think the actions of T-Mobile and, really, many of the mobile players talking about offering increased fiber activity is a validation of the need for fixed lines and that mobile alone is a less attractive proposition, and the combined offering that Charter has, with its broadband network and its MVNO relationship, is very attractive. When you look at these things that they're doing, they're mostly kind of around the edges.

Greg Maffei: Yeah. Thanks for the question, Ben. I think the actions of T-Mobile and really of many of the mobile players, talking about offering fiber, increased fiber activity, is a validation of the need for fixed lines, and that mobile alone is a less attractive proposition. And the combined offering that Charter has with its broadband network and its MVNO relationship is very attractive. You know, when you look at these things that they're doing, they're mostly kind of around the edges. They're not big time entrants, and in general, we've seen less activity in fiber build-outs, whether it's because, you know, the easy pickings are done or because some of the players who were more levered players have slowed down or just competitive with the markets. We've not seen big upticks.

Speaker Change: Thanks for the question, Ben.

Greg Messiah: I think the actions of T-Mobile and really of many of the mobile players talking about offering a fiber, increased fiber activity is a validation of the need for fixed lines and the mobile alone is a less attractive proposition. And with its broadband network and its ambient relationship, is very attractive. When you look at these things that they're doing, they're mostly kind of around the edges. They're not big time entrance. And in general, we've seen less activity in fiber build-outs, whether it's because the easy pickings are done or because some of the players who were more levered players have slowed down or just competitive in the markets. We've not seen big optics.

Speaker Change: I think the actions of T-Mobile and...

Speaker Change: really of many of the mobile players, talking about offering increased fiber activity, is a validation of the need for fixed lines and that mobile alone is a less attractive proposition.

Speaker Change: and the combined offering that Charter has.

Speaker Change: with its broadband network and its MVNO relationship is very attractive.

Greg Maffei: They're not big-time entrants, and in general, we've seen less activity in fiber build-outs, whether it's because, you know, the easy pickings are done or because some of the players who were more levered players have slowed down or just competitive in the markets. We haven't seen big upticks. What we are seeing though is interest from those players in being a broadband player, of having a broadband fixed line. So I think it's a validation of Charter's strategy to be first and foremost a fixed line provider and then off that MP&O, which is very attractive, and it's a much more nibble around the edges for people like T-Mo with the JV that they're doing.

Greg Maffei: You know, when you look at these things that they're doing, they're mostly kind of around the edges. They're not big time entrants, and in general, we've seen less activity in fiber build-outs, whether it's because...

Speaker Change: you know, the easy pickings are done or because some of the players who were more levered players have slowed down or just competitive with the markets. We've not seen big upticks.

Greg Messiah: But we are seeing, though, is interest from those players of being a broadband, of having a broadband fixed line. So I think it's a validation of charter strategy to be first and foremost a fixed line provider and then off that MVO, which is very attractive. And it's a much more nibble around the edges for people like T-Mobile with the JB that they're doing. Makes sense.

Greg Maffei: What we are seeing though is interest from those players in being a broadband player, of having a broadband fixed line. So I think it's a validation of Charter's strategy to be first and foremost a fixed line provider and then, off that, MP&O, which is very attractive, and it's a much more nibble around the edges for people like TMO with the JV that they're doing.

Greg Maffei: What we are seeing, though, is interest from those players of having a broadband fixed line. So I think it's a validation of Charter's strategy to be first and foremost a fixed line provider and then off that MVNO, which is very attractive. And it's a much more nimble around the edges for people like T-Mobile with the JV that they're doing.

Greg Maffei: What we are seeing, though, is...

Greg Maffei: interest from those players of having a broadband fixed line. So I think it's a validation of charter strategy.

Greg Maffei: to be first and foremost a fixed line provider and then off that MP&O, which is very attractive. And it's a much more nibble around the edges for people like TMO with the JV that they're doing.

Ben Swinburne: Makes sense. And I just had one follow-up question for Ron. Since he mentioned it, I was going to ask anyway. What's your view on sort of the AI phone cycle? That's another big debate. Do you think this is something consumers are going to be eager to acquire, or are you taking sort of the opposite, that maybe the market's a little ahead of itself on optimism here?

Ben Swinburne: Makes sense. I just had one follow-up to Ron, since he mentioned it. I was gonna ask anyway. What's your view on sort of the AI phone cycles? That's another big debate. Do you think this is something consumers are gonna be eager to acquire, or are you taking sort of the opposite, that maybe the market's a little ahead of itself on optimism here?

Ron Duncan: And I just had one follow-up to Ron. He mentioned that I was going to ask anyway. What's your view on sort of the AI phone cycles? That's another big debate. Do you think this is something consumers are going to be eager to acquire, or are you taking sort of the opposite that maybe the market's older ahead of itself on optimism here? I think there's probably more optimism than is merited, but we're expecting a bigger than usual upgrade cycle this time around. In part because there really haven't been that many earth shaking changes to the iOS app in the last several cycles.

Speaker Change: Makes sense. And I just had one follow-up to Ron, since he mentioned it, I was going to ask anyway. What's your view on sort of the AI phone cycles? That's another big debate. Do you think this is something consumers are going to be eager to acquire, or are you taking sort of the opposite, that maybe the market's a little ahead of itself on optimism here?

Ron Duncan: I think there's probably more optimism than is merited, but we're expecting a bigger-than-usual upgrade cycle this time around, in part because there really haven't been that many earth-shaking changes to the iOS app in the last several cycles, so the difference between a 12 and a 15 wasn't all that significant, and we've definitely seen reduced upgrades. As I said, we've seen our average cycle, our average turnover on a customer go from two years to something close to three years. I think there's enough buzz around AI that regardless of how good the drug is, customer satisfaction and safety can be highly determined.

Ron Duncan: I think there's probably more optimism than is merited, but we're expecting a bigger than usual upgrade cycle this time around, in part because there really haven't been that many earthshaking changes to the iOS app in the last several cycles. So the difference between a 12 and a 15 wasn't all that significant, and we've definitely seen reduced upgrades. As I said, we've seen our average cycle, our average turnover on the customer go from 2 years to something close to 3 years. I think there's enough buzz around the AI that regardless of how good the product really is, more people will try it this time. Whether it's a 50% increase over last time, I don't know. We're trying to assess that and prepare for how much inventory.

Speaker Change: I think there's probably more optimism than is merited, but we're expecting a bigger-than-usual upgrade cycle.

Greg Maffei: This time around in part because there really haven't been

Speaker Change: that many earth-shaking changes to the iOS app in the last several cycles, so the difference between a 12 and a 15 wasn't all that significant, and we've definitely seen reduced upgrades. As I said, we've seen our average

Operator: Welcome to the Liberty Broadband 2024 Q2 earnings call. During the presentation, all participants will be in a listen only mode. Afterward, we will conduct a question and answer session. At that time, if you have a question, please press star one on your telephone keypad. As a reminder, this conference is being recorded today, August 8, 2024.

Ron Duncan: So the difference between at 12 and 15 wasn't all that significant. And we've definitely seen reduced upgrades. As I said, we've seen our average cycle, our average turnover, and the customer go from two years to something close to three years. I think there's enough buzz around the AI that, regardless of how good the product really is, more people will try it this time. Whether it's a 50% increase over last time, I don't know. We're trying to assess that and prepare for how much inventory. But I definitely think that even if it's not real, the buzz will create more consumer interest than more people may try.

Greg Maffei: cycle, our average turnover in the customer go from two years to something close to three years.

Claire Adams: I would now like to turn the call over to Claire Adams, senior manager and investor relations. Please go ahead.

Speaker Change: I think there's enough buzz around the AI that regardless of how...

Speaker Change: good the product really is, more people will try it this time. Whether it's a 50% increase over last time, I don't know. We're trying to assess that and prepare for how much inventory. But I definitely think that even if it's not real, the buzz will create more consumer interest and more people may try it.

Claire Adams: Good morning. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements in the meeting of the Private Security's 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 10K and 10K held by Liberty Broadband and Liberty TripAdvisor with the SEC. Before looking statements speak only out of the date of this call, in Liberty Broadband and Liberty TripAdvisor expressly display any obligation or undertaking to disseminate any updates through revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband or Liberty TripAdvisor's expectations with regard there to, or any change in events, conditions or circumstances on which any such statement is based.

Ron Duncan: But, I definitely think that even if it's not real, the buzz will create more consumer interest and more people may try it.

Ron Duncan: Last time being the 5G upgrade cycle that you're referring to.

Ron Duncan: Last time being the 5G upgrade cycles that you're referring to. Yeah. Yeah, kind of.

Ben Swinburne: Last time being the 5G upgrade cycle, is that you're referring to?

Ben Swinburne: Yeah. Yeah. I got it. Thanks a lot.

Speaker Change: Last time being the 5G upgrade cycle that you're referring to? Yeah. Yeah. Got it. Thanks a lot.

Ron Duncan: Yeah.

Ben Swinburne: Yeah. Got it. Thanks a lot.

Ben Swinburne: Thanks a lot.

Ron Duncan: Thanks a lot.

Operator: Thank you.

Alex Nordhagen: Thank you. Our final questions will come from the line of Alex Nordhagen with Ballyasny Asset Management. Please proceed with your question.

Operator 2: Thank you. Our final questions will come from the line of Alex Nordhagen with Balyasny Asset Management. Please proceed with your questions.

Operator: Thank you. Our final questions will come from the line of Alex Nordhagen with Balyasny Asset Management. Please proceed with your questions.

Alex Nordhagen: Our final questions will come from the line of Alex Nordhagen with Bally Azni Asset Management. Please proceed with your questions. Great. Thank you very much for taking my question today.

Speaker Change: Thank you. Our final questions will come from the line of Alex Nordhagen with Ballyasny Asset Management. Please proceed with your questions.

Alex Nordhagen: Great. Thank you very much for taking my question today. I have a question specifically regarding Liberty Trip Advisor, and that's with respect to the Series A preferred stock. Is the current expectation that this instrument will simply just remain outstanding past the end of March next year and accrue its dividend at the penalty rate of 12% versus the current 8%? Thank you.

Alex Nordhagen: Great. Thank you very much for taking my question today. I have a question, specifically regarding Liberty TripAdvisor, and that's with respect to the Series A preferred stock. Is the current expectation that this instrument will simply just remain outstanding past the end of March next year and accrue its dividend at a, at the penalty rate of 12% versus the current 8%? Thank you.

Alex Nordhagen: I have a question specifically regarding the TRIP Advisor. And that's with respect to the Series A preferred stock. Is the current expectation that this instrument will simply just remain outstanding past early in the March next year and accrue its dividend at the penalty rate of 12% versus the current 8? Thank you.

Speaker Change: Great. Thank you very much for taking my question today.

Speaker Change: I have a question specifically regarding OT TripAdvisor.

Claire Adams: On today's call, we'll discuss certain non-GAB financial measures for Liberty Broadband, including adjusted with us. Information regarding the comparable GAB metrics, along with required definitions and reconciliation, including preliminary note and schedules one and two, can be found in the earnings press release issue today, as well as earnings release. This is for prior periods, which are available on Liberty Broadband's website.

Speaker Change: And that's with respect to the Series A preferred stock.

Speaker Change: Is the current expectation that this instrument will simply just remain outstanding past the end of March next year and accrue its dividend at a penalty rate of 12% versus the current 8%? Thank you.

Greg Messiah: Yeah, I think we're, as we've said, we're in discussions with TripAdvisor and with Sir Tari's about transactions that might arise, so it's, I can't comment on whether that will be the result. Like all I can tell you is that there are active discussions between Sir Tari's, TripAdvisor, and ourselves.

Greg Maffei: Yeah, I think, uh, We're in discussions with TripAdvisor and with Sertari's about transactions that might arise, so I can't comment on whether that will be the result. All I can tell you is that there are active discussions between Sertari's, TripAdvisor, and ourselves.

Greg Maffei: Yeah, I think we're, as we've said, we're in discussions with TripAdvisor and with Certares about transactions that might arise. So it's, I can't comment on whether that will be the result. Like, all I can tell you is that there are active discussions between Certares, TripAdvisor, and ourselves.

Greg Messiah: Now I'd like to introduce Greg Messiah at Liberty's President and CEO. Thank you, Claire. Good morning to all our listeners.

Speaker Change: Yeah, I think...

Speaker Change: We're, as we've said, we're in discussions with TripAdvisor and with Sertaris about transactions that might arise.

Greg Messiah: Today, speaking of the call we will have, Liberty Broadband's Chief Accounting and Principal Financial Officer Brian Wendling, Ron Duncan, CEO of GCI and Pete Pound, CEO of GCI will also be available to answer questions. And during Q&A, we will answer questions if there are any related to Liberty TripAdvisor.

Speaker Change: I can't comment on whether that will be the result. All I can tell you is that there are active discussions between Sertari's troop advisor and ourselves.

Greg Messiah: Okay, great, thank you, and just to follow up if I may, would you like to share the opinion of it somehow that just the Liberty TripAdvisor kind of holding structure of the trip shares ways on TripAdvisor stock? I would, I think at this point the potential issues around Liberty TripAdvisor are probably a cloud on the TripAdvisor's stock; that's probably a fair statement, yes.

Alex Nordhagen: Okay, great. Thank you. And just to follow up, if I may, would you, like, share the opinion somehow that just the Liberty TripAdvisor kind of holding structure of the trip shares weighs on TripAdvisor stock?

Alex Nordhagen: Okay, great. Thank you. Just to follow up, if I may, would you, like, share the opinion that some have, that just the Liberty TripAdvisor kind of holding structure of the Trip shares weighs on TripAdvisor stock?

Speaker Change: Okay, great. Thank you. And just to follow up, if I may, would you like to share the opinion that some have that just the Liberty TripAdvisor kind of holding structure of the trip shares weighs on TripAdvisor stock?

Greg Messiah: So, beginning first with Liberty Broadband, in July, we issued 860 million of a 3-0-8 charter exchangeables. We used the proceeds from that offering to repay 540 million under our charter margin loan and repurchased 3-0-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-1-[inaudible] Management did a great job of expense management working with the growing realization impacts of that in the second quarter. They continue to manage the cost structure without sacrificing growth.

Greg Maffei: I think at this point the potential issues around Liberty Trip Advisor are probably a cloud on the Trip Advisor stock. That's probably a fair statement.

Greg Maffei: I would, I think at this point, the potential issues around Liberty TripAdvisor are probably a cloud on the Tripadvisor stock. That's probably a fair statement, yes.

Speaker Change: I think at this point the potential issues around Liberty Trip Advisor are probably a cloud on the Trip Advisor's dock. That's probably a fair statement, yes.

Alex Nordhagen: All right, thanks very much, Fred. Appreciate it. Thank you.

Alex Nordhagen: Thanks very much, Fred. I appreciate it.

Alex Nordhagen: All right. Thanks very much, Greg. Appreciate it.

Greg Maffei: Thank you. Thank you to our listening audience for your interest in Liberty Broadband and Liberty TripAdvisor. We hope to speak with you next quarter, if not sooner.

Greg Maffei: Thank you to our listening audience for your interest in Liberty Broadband and Liberty TripAdvisor. We hope to speak with you again next quarter, if not sooner.

Operator: Thank you to our listening audience for your interest in Liberty Broadband and Liberty TripAdvisor. We hope to speak with you next quarter, if not sooner. Thank you. This does include today's teleconference; we appreciate your participation. You may

Speaker Change: All right. Thanks very much, Fred. Appreciate it. Thank you.

Speaker Change: Thank you to our listening audience for your interest in Liberty Broadband and Liberty Trip Advisor. We hope to speak with you next quarter, if not sooner.

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

Operator 2: Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

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

Greg Maffei: hel

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

Unnamed: [music]

Greg Messiah: Mobile achieved its profitability for the first time, an important milestone that reinforces the value of the mobile offering. Charter reported 557 mobile blinded additions. The Anytime Upgrade program is driving RPU as customers increasingly chose unlimited plus plan. The phone bio program for multi-line households to move more easily to spectrum mobile is also being very effective. We expect continued Ibit of growth to the back half of the year. We will see the AC impact mostly in the third quarter and some in the fourth but believe Charter is managing that transaction effectively.

Greg Messiah: The cost initiatives continue to support the highest margin to date and we do expect to see political spending ramp to the year. We also expect to see continued strong mobile performance. Charter reduced leverage during the quarter to 4.32 times and Charter expects to continue to move closer to the middle of the target of the four to four and a half times leverage range throughout the year.

Greg Messiah: Turning down to Liberty Trip, we continue to evaluate strategic alternatives with TripAdvisor Special Committee and we will not be able to comment further until or unless the definitive documents are executed or discussions terminate. Looking at TripAdvisor itself, during the quarter it felt continued pressure on hotel medit, in brand TripAdvisor from both FCO and FTM structural challenges with weaker demand and increased competition. However, positive early votes from strategy work launched last year are beginning to take hold.

Greg Messiah: We've seen a growing share of app users and direct channel activity where there's more monetization opportunity available. Members using Trip's planning tool have a 15 times higher output than the platform-wide average. Strategy is designed to mix drive-mix shift over time from legacy offerings to focus on member value, a differentiated app experience and engaging product features. For example, AI-powered review summaries and hotel booking directly into the app and user upgrades are much more effective and better monetization opportunities for us.

Greg Messiah: Looking at the other businesses within Trip, FIATOR and the fourth both increase their competition rather to the profit mix, FIATOR saw a doubling of active bookers who log into the app which led to higher conversion, better repeat rates, and GBB growth.

Brian Wendling: So with that, I'll turn it over to Brian to discuss it. Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalent of 73 million, which includes 47 million of cash at GCI.

Brian Wendling: Value of our charter investment based on our share's health. As of August 1st, in charter share price as of yesterday's close was 16.2 billion, and at quarter end, Liberty Broadband had a total principal amount of debt of 3.7 billion including the debt at GCI. Note that this excludes the preferred stock. Looking quickly at GCI, revenue is up a million over the prior year driven by continued strength and data sales, particularly to our rural health care and school customers, partially offset by declines in wireless and other revenue.

Brian Wendling: Adjusted to pivoted decreased 6 million due to higher operating costs as well as increased SGNA expense from labor-related costs and increased professional services. Over the last year adjusted for the reclassification from GCI business. GCI consumers saw a decline of a 1,000 revenue generating wireless subs, cable modem subscribers declined by 2500, mostly driven by the expiration of the ACP program. During the quarter, GCI distributed 150 million to 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 net new troll to Liberty Broadband. The quarter end GCI's leverage was at 3.2 times with sufficient cushion in relation to the 6.5 times maximum net leverage covenant threshold stipulated in the credit facility. We had 347 million of undrawn capacity under the GCI revolver net of letters of credit.

Greg Messiah: With that, I'll turn the call back over to Greg. Thanks, Brian.

Greg Messiah: Our annual investment today will be Thursday, November 14th, in New York. No, we move to a new location. See you at the Jazz and Lincoln Center.

Greg Messiah: Save the date. Additional details will be forthcoming soon. We hope to see many of you there.

Operator: And with that operator, I'll open the line for questions. Thank you. At this time, we'll be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line isn't the question queue. 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 star keys.

Bart and Crockett: Our first questions come from the line of Bart and Crockett with Rosenblatt securities. Please proceed with your questions. Okay, thank you for taking my questions. There were a couple of things I was kind of interested in. We could address them here.

Bart and Crockett: One is I'm curious about the wireless business at GCI and then perhaps a longer term thought for charter. So my question is this is to what degree is GCI really focused on subsidizing kind of device purchases? Just update us on that as we go into what may be a bigger kind of upgrade cycle with the AI presence on the iPhone 16. And also if you have any thoughts about what you expect there in terms of the size of that cycle for GCI and then for charter and I guess over to Greg.

Bart and Crockett: Just more broadly, I mean, obviously charter is not doing the device subsidies at the level that the major wireless carriers are today. But you know, one could imagine over time as the charter and the cable peers get bigger and wireless that they all want to compete in more kind of toe to toe on that basis. And I was just wondering, Greg, if you agree that that's going to be the general direction and if so, you know, any thoughts about how the road there might progress slowly, quickly, any steps that could kind of transition you over there.

Greg Messiah: Thanks, Barton God.

Ron Duncan: Ron, do you want to take the GCI wireless part of that? Sure, I can do that. And obviously, Barton, as you know, GCI is a mobile network operator, not a MBNO like Charter, so we have a different cost structure. We've got a much higher gross margin and even top percentage because we own the network. We're not paying somebody else for it. And we've also got a much higher market share at this point than Charter does.

Ron Duncan: We're probably 40% of the Alaska mobile market overall. And it's one of our two core businesses along with consumer businesses, along with consumer data. As such, we pretty much have to match or at least be competitive with the majors and our principal competitors AT&T Verizon is not a material player in the market up there. So we pretty much have to match AT&T device subsidies in order to avoid losing subs to them when there's a refresh cycle.

Ron Duncan: In the last couple of years, we've extended the device subsidies from two-year contracts to three-year contracts. That's given us a little lower turnover and a little more stability. We're evaluating right now, but we think that if there's an accelerated device cycle, this fall, as a result of AI features, particularly in the Apple phones, it may be an opportunity to grab some more share. We've got a better network in Anchorage and most of Alaska than AT&T does.

Ron Duncan: People choose us for that reason. And we're trying to figure out whether enhancing the device subsidies a little bit would allow us to gain more share. If we weren't relatively competitive with AT&T, we'd keep a low margin of the low cost portion of the customer base, but we wouldn't be able to maintain the 40 percent statewide market share.

Greg Messiah: So I don't see Charter, you can't predict how the market will go entirely, but I don't see Charter offering or needing to offer the kind of subsidies that other people have because of the attractors that combined offering. Okay, thank you.

Greg Messiah: Thank you.

Ben Swenberg: Our next questions come from the line of Ben Swenberg with Morgan Stanley. Please proceed with your questions.

Greg Messiah: Greg, I wanted to get your thoughts just generally on some of the action we're seeing competitively in telecom in the US, particularly team-obels acquisition of or JVI, I guess I should say, with Lumus and Metronet and how that impacts your perspective on Charter, both when we think about private and public market multiples, which obviously are pretty far apart right now, and this is just competitively whether you think the level of fiber and converged competition is something that is going to be potentially a headwind for Charter over time. Thanks so much.

Greg Messiah: Yeah, thanks for the question, Ben. I think the actions of T-Mobile and really of many of the mobile players talking about offering a fiber, increased fiber activity is a validation of the need for fixed lines and the mobile alone is a less attractive proposition. And with its broadband network and its ambient relationship is very attractive. When you look at these things that they're doing, they're mostly kind of around the edges. They're not big time entrance.

Greg Messiah: And in general, we've seen less activity in fiber build-outs, whether it's because the easy pickings are done or because some of the players who were more levered players have slowed down or just competitive in the markets, we've not seen big optics. But we are seeing, though, is interest from those players of being a broadband, of having a broadband fixed line. So I think it's a validation of charter strategy to be first and foremost a fixed line provider and then off that MVO, which is very attractive. And it's a much more nibble around the edges for people like T-Mobile with the JB that they're doing. Makes sense.

Ben Swenberg: And I just had one follow up to Ron. He mentioned that I was going to ask anyway, what's your view on sort of the AI phone cycles? That's another big debate.

Ron Duncan: Do you think this is something consumers are going to be eager to acquire, or are you taking sort of the opposite that maybe the market's older ahead of itself on optimism here? I think there's probably more optimism than is merited, but we're expecting a bigger than usual upgrade cycle this time around. In part because there really haven't been that many Earth shaking changes to the iOS app in the last several cycles.

Ron Duncan: So the difference between at 12 and 15 wasn't all that significant. And we've definitely seen reduced upgrades. As I said, we've seen our average cycle, our average turnover and the customer go from two years to something close to three years. I think there's enough buzz around the AI that regardless of how good the product really is, more people will try it this time. Whether it's a 50% increase over last time, I don't know, we're trying to assess that and prepare for how much inventory. But I definitely think that even if it's not real, the buzz will create more consumer interest than more people may try.

Ben Swenberg: Last time being the 5G upgrade cycles that you're referring to. Yeah. Yeah, kind of. Thanks a lot. Thank you.

Alex Nordhagen: Our final questions will come from the line of Alex Nordhagen with Bally Azni Asset Management. Please proceed with your questions. Great.

Greg Messiah: Thank you very much for taking my question today. I have a question specifically regarding the TRIP advisor. And that's with respect to the series A preferred stock. Is the current expectation that this instrument will simply just remain outstanding past early in the March next year and accrue its dividend at the penalty rate of 12% versus the current 8. Thank you. Yeah, I think we're, as we've said, we're in discussions with TripAdvisor and with Sir Tari's about transactions that might arise, so it's, I can't comment on whether that will be the result, like all I can tell you is is that there are active discussions between Sir Tari's TripAdvisor and ourselves.

Operator: Thank you to our listening audience for your interest in Liberty Broadband and Liberty TripAdvisor. We hope to speak with you next quarter, if not sooner. Thank you, this does include today's teleconference, we appreciate your participation, you may

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