Q3 2024 Liberty Broadband Corp Earnings Call

November 7, 2024

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Operator: Welcome to the Liberty Broadband 2024 Q3 Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterward, we will conduct a question and answer session.

Welcome to the Liberty broadband 2024, Q3 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 Touchtone phone as a reminder, this conference will be court.

At that time, if you have a question, please press star one on your touch-tone phone.

As a reminder, this conference will be recorded today, November 7th, 2024.

Speaker Change: Recorded today November seven 2024, I would now like to turn the call over to Shane Crunchy SVP Investor Relations. Please go ahead.

Shane Kleinstein: I would now like to turn the call over to Shane Kleinstein, SVP, Investor Relations. Please go ahead.

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

Speaker Change: Thank you and 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, and actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent Form 10-K, and 10-Q filed by Liberty broadband and Liberty Tripadvisor with the SEC.

Thank you and 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 Security Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent forms 10-K and 10-Q filed by Liberty Broadband and Liberty Trip Advisor with the SEC.

These forward-looking statements speak only as of the date of this call, and Liberty Broadband and Liberty Trip Advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband or Liberty Trip Advisor's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted OEBDAT.

Speaker Change: These forward looking statements speak only as of the date of this call and Liberty broadband and Liberty Tripadvisor expressly disclaim any obligation or undertaking so does that mean any updates or revisions to any forward looking statements contained herein to reflect any change in liberty broadband or liberty tripadvisor its expectations with regard thereto or any change in events conditions or circumstances.

Speaker Change: Any such statement is based.

Operator: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted OIBDA. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary notes 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's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Shane Kleinstein: On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including Adjusted OIBDA. Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary notes 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's website. Now I'd like to turn the call over to Greg Maffei, Liberty's President and CEO.

Speaker Change: On today's call, we will discuss certain non-GAAP financial measures for Liberty broadband, including adjusted OIBDA information regarding the comparable GAAP metrics, along with 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 the earnings releases from prior periods, which are available on Liberty's website now I'd like to turn the.

Information regarding the comparable GAAP metrics, along with required definitions and reconciliations, including preliminary notes in 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's website.

Greg Maffay: Now I'd like to turn the call over to Greg Maffay, Liberty's President and CEO.

Speaker Change: All over to Greg My favorite Liberty's, President and CEO.

Greg Maffei: Good morning, and thank you, Shane. Today, speaking on the call, we will have Liberty Broadband's Chief Accounting and Principal Financial Officer, Brian Wendling. Ron Duncan, CEO of GCI, and Pete Pounds, CFO of GCI, will also be available to answer questions. Also, during the Q&A, we will be available to answer questions related to Liberty TripAdvisor. Beginning with Liberty Broadband, you may recall, we filed a 13D with the SEC on 23 September. It noted that Liberty Broadband and Charter were discussing a proposed all-stock transaction. The combination would rationalize the dual corporate structure, provide enhanced trading liquidity, provide clarity to both sets of shareholders with regard to the certainty of a future transaction, and continue our strong partnership with Charter in the interim.

Greg My: Thank you Shane.

Brian Wendland: Today, speaking on the call, we will have Liberty Broadband's Chief Accounting and Principal Financial Officer, Brian Wendland.

Speaker Change: Speaking on the call, we will have liberty broadband as chief accounting and principal financial Officer, Brian Wendling.

Greg Maffay: Ron Duncan, CEO of GCI, and Pete Pounds, CFO of GCI, will also be available to answer questions. Also during Q&A, we will be available to answer questions related to Liberty Trip Advisor.

Speaker Change: Ron Duncan CEO of GCI, and Pete pounds of seats CFO of GCI will also be available to answer questions.

Speaker Change: Also during Q&A.

Speaker Change: We'll be available to answer questions related to Liberty Tripadvisor.

Greg Maffay: So, beginning with Liberty Broadband... You may recall we filed a 13-D with the SEC on the 23rd of September. It noted that Liberty Broadband and Charter were discussing a proposed all-stock transaction. The combination would. rationalize the dual corporate structure, provide enhanced trading liquidity, provide clarity to both sets of shareholders with regard to the certainty of a future transaction and continue our strong partnership with Charter in the interests of the United States.

Speaker Change: So beginning with Liberty broadband.

Speaker Change: You May recall, we filed a 13D on the SEC with the SEC on the 23rd of September.

Speaker Change: It noted that Liberty broadband and charter we're discussing a proposed all stock transaction.

Speaker Change: The combination would.

Speaker Change: Rationalize the dual corporate structure.

Speaker Change: Abide enhanced trading liquidity.

Speaker Change: Provide clarity to both sets of shareholders with regards to certainty of a future transaction and continue our strong partnership with charter in the interim.

Greg Maffei: Additional updates on any potential transaction will only be provided if and when the definitive terms are agreed upon. I would note that the LBRD NAV discount has tightened considerably, and since that filing, is now in the mid-teens. Given ongoing discussions between Charter and Liberty Broadband, Charter did pause its buyback, which resulted in a limited amount of proceeds to Liberty Broadband from Charter sales during the period. Looking now at Charter, Charter experienced strong subscriber results and accelerating financial growth in Q3. They experienced 110,000 broadband loss, 110,000 broadband net loss, would have been growth, absent the ACP's impact. I think Charter is managing its ACP disruption well and anticipate October will be the last month of meaningful impact.

Speaker Change: Additional updates on any potential transaction will only be provided.

Greg Maffay: Additional updates on any potential transaction will only be provided if and when definitive terms are agreed upon. I would note that the LBRD NAV discount has tightened considerably, and since that filing is now in the mid-term. giving ongoing discussions between Charter and Liberty Broadband.

Speaker Change: If and when did definitive terms are agreed upon.

Speaker Change: I would note that the L. B R. D. NAV discount has tightened considerably and since that filing is now in the mid teens.

Speaker Change: Giving ongoing discussions between charter and Liberty broadband charter did pause.

Greg Maffay: Charter did pause... its buyback, which resulted in a limited amount of proceeds to Liberty Broadband from charter sales during the period.

Speaker Change: Its buyback, which resulted in a limited amount of proceeds to Liberty broadband charter sales during the period.

Greg Maffay: Looking now at charter Charter experienced strong subscriber results and accelerating financial growth in the third quarter. they experienced a 110,000 broadband loss, 110,000 broadband net loss, would have been growth absent the impact of ACP. I think Charter is managing its ACP disruption well and I anticipate October will be the last month of meaningful growth. Charter also experienced revenue growth of 1.6% and adjusted EBITDA growth of 3.6% during the quarter. They benefit from prior cost actions and the strong political ad cycle. I would note that residential ARPU was up 1.8% which is an acceleration versus the...

Speaker Change: Looking now at charter.

Speaker Change: Charter experienced strong subscriber results and accelerating financial growth in the third quarter.

Speaker Change: They experienced 810000.

Speaker Change: <unk> hundred 10000 broadband net loss.

Speaker Change: It would have been growth absent the absent the impact of ACP I think charter is managing its ACP disruption well and anticipate October would be the last month a meaningful impact.

Greg Maffei: Charter also experienced revenue growth of 1.6% and Adjusted EBITDA growth of 3.6% during the quarter. They benefited from prior cost actions and the strong political ad cycle. I would note that residential, residential ARPU was up 1.8%, which is an acceleration versus the recent trend. Mobile continued to perform very well, with 545,000 mobile net adds, which puts their base over 9 million lines. ARPU was growing in mobile due to the uptake of the unlimited plus tier, plus was driven by the Anytime Upgrade program. Free cash flow was 1.6%, which was up 48% over the prior year, and net leverage was 4.22x, slightly below the revised target. All of these were driven by high free cash flow generation and limited share repurchase activity.

Speaker Change: Charter also experienced revenue growth of one 6% adjusted EBITDA growth of three 6% during the quarter.

Speaker Change: They benefited from prior cost actions and the strong political AD cycle I.

Speaker Change: I would note that resident residential ARPA was up one 8%, which is an acceleration versus the recent trend.

Speaker Change: Mobile continued to perform very well with 545000 mobile net adds which puts their base over 9 million lines.

Greg Maffay: Mobile continued to perform very well with 545,000 mobile net ads, which puts their base over 9 million lines. ARPU was growing in mobile due to the uptake of the Unlimited Plus tier. Plus was driven by the Anytime Upgrade Program. Free cash flow was 1.6%, which was up 48% over the prior year. And net leverage was 4.22 times, slightly below the revised target. All of these were driven by high free cash flow generation and limited share repurchase activity.

Speaker Change: <unk> was growing in mobile due to the uptake of the unlimited plus here.

Speaker Change: Plus it was driven by the anytime upgrade program.

Speaker Change: Our free cash flow was one 6%, which was up 48% over the prior year and net leverage was 4.22 times slightly below the revised target.

Speaker Change: All of these were driven by high free cash flow generation and limited share repurchase activity.

Greg Maffei: Turning briefly to L TRIP. Discussions are progressing with TRIP, and their special committee remain focused on the rationalization of our capital structure. As TRIP mentioned on their call, they did not repurchase shares this quarter given the ongoing discussions with L TRIP. We will provide an update on this transaction only when such discussions reach a definitive conclusion. We are limited what we can comment upon at this time. Given discussions, Tripadvisor has also elected not to present at Liberty's Investor Day. I will, at that day, make some remarks on the business since the TRIP team will not be in attendance. But looking at Tripadvisor itself now, brand Tripadvisor saw a positive growth from some of its pricing strategy work. MAUs returned to year-over-year growth year-to-date. The direct channel monthly active users was up 30% versus the prior year.

Speaker Change: Turning briefly to L trip discussions are progressing with trip and their special Committee.

Greg Maffay: Turning briefly to L-TRIP, discussions are progressing with TRIP and their special committee. We may focus on the rationalization of our capital structure. As Tripp mentioned on their call, they did not repurchase shares this quarter given the ongoing discussions with L-TRIP.

Speaker Change: He made focused on the rationalization of our capital structure.

Speaker Change: As <unk> mentioned on their call. They did not repurchase shares this quarter given the ongoing discussions with L trip we.

Greg Maffay: We will provide an update on this transaction only when such discussions reach a definitive conclusion.

Speaker Change: We will provide an update on this transaction only when such discussions reach a definitive conclusion or limited what we can comment upon at this time.

Our limited what we can comment upon at this time.

Speaker Change: Given discussions Tripadvisor has also elected not to present at Liberty's Investor day.

Greg Maffay: Given discussions, TripAdvisor has also elected not to present at Liberties Investors. I will at that day make some remarks in the business since the TRIP team will not be attending. But looking at TripAdvisor itself now, Brand TripAdvisor saw positive growth from some of its prized strategy work. MAUs returned to year-over-year growth year-to-date. The direct channel monthly active users was up 30% versus the prior year. This reflects Trip's ongoing efforts to increase engagement with updated app experience and engaging product features. For example, unique travel content, AI-powered review summaries, and hotel booking directly Looking at these next segment, Viator experiences, continue to balance growth and investment versus profit contribution.

Speaker Change: I will at that they make some remarks on the business since the trip Tmall not attendance.

Speaker Change: But looking at Tripadvisor itself now brand Tripadvisor saw positive growth from some of its pricing strategy work meus returned to year over year growth year to date are the direct channel monthly active users was up 30% versus the prior year. This reflects trips ongoing efforts to increase engagement with updated app experience and engagement.

Greg Maffei: This reflects TRIP's ongoing efforts to increase engagement with updated app experience and engaging product features. For example, unique travel content, AI-powered review summaries, and hotel booking directly in the app. Looking at this next segment, Viator experiences continue to balance growth in investment versus profit contribution. Adjusted EBITDA was $30 million in the quarter, an 11% margin. That experienced solid growth outside of search and direct and low-cost channels, and they continue to see stronger repeat bookings. Turning briefly to TheFork, it was the best financial performance they had on record, with revenue up 17%, Adjusted EBITDA of $5 million, which achieved a 10% margin, the highest they've ever achieved. And they've had success adding B2B partnerships with Mastercard, as well as a prior announcement with Vodafone. TRIP has a robust liquidity picture.

Speaker Change: Alex features for example, you need to.

Robert: Robert content.

Speaker Change: AI powered review summaries and hotel booking directly in the App.

Speaker Change: Looking at these next segment via tour experiences continue to balance growth and investment versus profit contribution adjusted EBITDA was 30 million in the quarter.

Greg Maffay: Adjusted EBITDA was $30 million in the quarter. 11 percent margin, that was solid growth outside of search, experienced solid growth outside of search and direct and low-cost channels, and they continue to see stronger repeat bookings.

Speaker Change: 11% margin that was solid growth outside of search experienced solid growth outside of search and direct and low cost channels and they continue to see stronger repeat bookings.

Speaker Change: Turning briefly to afford it was the best financial performance they had on record.

Greg Maffay: Turning briefly to the Fork, it was the best finance performance they had on record, with revenue up 17%, adjusted EBITDA of $5 million, which achieved a 10% margin, the highest they've ever achieved. And they've had success adding B2B partnerships with MasterCard, as well as a prior announcement with Vodafone.

Speaker Change: With revenue up 17%.

Speaker Change: Adjusted EBITDA of $5 million, which achieved a 10% margin the highest they've ever achieved.

Speaker Change: And they've had success, adding PDP partnerships with Mastercard.

Speaker Change: Well as a prior announcement of with Vodafone.

Speaker Change: Trip has a robust liquidity picture as of the end of the third quarter, we had approximately $1 1 billion of cash and just under $500 million of unparalleled revolver capacity.

Greg Maffay: TRIP has a robust liquidity picture. As of the end of the third quarter, it had approximately $1.1 billion of cash and just under $500 million of unborrowed revolver capacity.

Greg Maffei: As of the end of Q3, they had approximately $1.1 billion of cash and just under $500 million of unborrowed revolver capacity. With that, I'll turn it over to Brian briefly to discuss the financials.

Brian Wendland: And with that, I'll turn it over to Brian briefly to discuss. Thank you, Greg. At quarter end, Liberty Broadband had consolidated cash and cash equivalents of $168 million, which includes $47 million of cash at GCI. The value of our charter investment based on our shares held as of November 1st and charter share price at yesterday's close was $18.6 billion. at quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion.

Speaker Change: And with that I'll turn it over to Bryan briefly to discuss the financials.

Brian Wendling: Thank you, Greg. At quarter-end, Liberty Broadband had consolidated cash and cash equivalents of $168 million, which includes $47 million of cash at GCI. The value of our Charter investment, based on our shares held as of 1 November, and Charter share price at yesterday's close, was $18.6 billion. At quarter end, Liberty Broadband had a total principal amount of debt of $3.7 billion. Note that this excludes the preferred stock. Looking quickly at GCI's results for Q3, revenue was up nicely at $22 million dollar increase over the prior year, driven by continued strength in data revenue. Business data revenue benefited from a strong upgrade cycle in school and healthcare corporations in rural Alaska. Adjusted OIBDA increased to $11 million, in line with the increased revenue, partially offset by some higher operating costs and SG&A expenses.

Bryan: Thank you Greg at quarter end, Liberty broadband had consolidated cash and cash equivalents of $168 million.

Bryan: Which includes $47 million of cash at GCI.

Speaker Change: Value of our charter investment based on our shares held as of November 1st in charter share price at yesterday's close was $18 6 billion.

Bryan: At quarter end Liberty broadband had a total principal amount of debt of $3 7 billion note that this excludes the preferred stock.

Brian Wendland: excludes the preferred stock. Looking quickly at GCI's results for the third quarter, revenue was up nicely at a $22 million increase over the prior year, driven by continued strength in data revenue. Business data revenue benefited from a strong upgrade cycle in school and healthcare corporations in rural Alaska. Justin Uybida increased $11 million in line with the increased revenue, partially offset by some higher operating costs. Over the last year, adjusted for the reclassification from GCI Business, GCI Consumer saw a decline of 1,800 revenue-generating wireless subscribers. Cable modem subscribers declined by 3,800, with 3,400 of these losses driven by the expiration Quarter-end, GCI's leverage was 3.1 times, with sufficient cushion relative to the 6.5 times maximum leverage covenant threshold stipulated in the credit facility.

Bryan: Looking quickly at Gci's results for the third quarter revenue was up nicely at 20 $22 million increase over the prior year driven by continued strength in data revenue.

Bryan: Business data revenue benefited from a strong upgrade cycle in school and health care corporations in rural Alaska.

Bryan: Adjusted OIBDA increased $11 million in line with the increased revenue, partially offset by some higher operating costs and SG&A expenses.

Brian Wendling: Over the last year, adjusted for the reclassification from GCI Business, GCI Consumer saw a decline of 1,800 revenue-generating wireless subscribers. Cable modem subscribers declined by 3,800, with 3,400 of these losses driven by the expiration of the ACP program. Quarter end, GCI's leverage was 3.1x, with sufficient cushion relative to the 6.5x maximum leverage covenant threshold stipulated in the credit facility. And they had $367 million of undrawn capacity under their revolver, net of letters of credit. And with that, I will turn the call back over to Greg.

Bryan: Over the last year adjusted for the reclassification from GCI business GCI consumer saw a decline of 1800 revenue generating wireless subscribers cable.

Bryan: Cable modem subscribers declined by 3800 with 3400 of these losses driven by the expiration of the ACP program.

Bryan: Quarter end Gci's leverage was three one times with sufficient cushion relative to the six five times maximum leverage covenant threshold stipulated in the credit facility.

And they had $367 million of undrawn capacity under their revolver, net of letters of credit.

Bryan: And they had $367 million of Undrawn capacity under the revolver net of letters of credit.

Speaker Change: And with that I will turn the call back over to Greg. Thanks, Brian.

Greg Maffay: And with that, I will turn the call back over to Greg.

Greg Maffei: Thanks, Brian. To our listening audience, we look forward to seeing you on Thursday, 14 November, for our annual investor meeting. You can tune in virtually or join us in person at our new location, Jazz at Lincoln Center. If you plan to attend in person, please make sure to register by Monday, 11 November, as there will not be on-site registration. The link to register can be found on our website. John Malone and I will be hosting our annual Q&A session. If you'd like to submit questions in advance, you can email investorday@libertymedia.com. We appreciate your continued interest in Liberty Broadband and Liberty TripAdvisor. And operator, with that, I'd like to open the line for questions.

Greg Maffay: Thanks, Brian. To our listening audience, we look forward to seeing you on Thursday, November 14th for our annual investor meeting. You can tune in virtually or join us in person at our new location, Jazz at Lincoln Center. If you plan to attend in person, please make sure to register by Monday, November 11th, as there will not be on-site registration. The link to register can be found on our website. John and Malone and I will be hosting our annual Q&A session. If you'd like to submit questions in advance, you can email investorday at libertymedia.com. We appreciate your continued interest in Liberty Broadband and Liberty TripAdvisor.

Greg My: Our listening audience, we look forward to seeing you on Thursday November 14th for our annual Investor meeting you can tune in virtually or join us in person at our new location jazz at Lincoln Center if.

Speaker Change: If you plan to attend in person. Please make sure to register by Monday November 11th says there will not be onsite registration.

Speaker Change: The link to register it can be found on our website.

Speaker Change: John Malone, and I will be hosting our annual Q&A session, if you'd like to submit questions. In advance you can email investor day at Liberty Media Dot com.

Speaker Change: We appreciate your continued interest in Liberty broadband and Liberty Tripadvisor.

Speaker Change: And operator with that I'd like to open the line for questions.

Operator: And Operator, with that, I'd like to open the line for questions. Thank you. As a reminder, 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.

Operator: Thank you. As a reminder, 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. Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Speaker Change: Thank you as a reminder, 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.

Speaker Change: Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your questions.

Ben Swinburne: Our first questions come from the line of Ben Swinburne with Morgan Stanley. Please proceed with your question.

Ben Swinburne: Hey, Greg. On the Charter approach or the proposals, I guess the question I have is sort of why now? Obviously, we're seeing other kind of rationalization in the Liberty universe, but I'd love to just get you to kind of step back and explain the thought processes moving forward, at least discussion-wise, with this. And also, what kinda has to happen from a process point of view to allow Charter to get back in the market buying back stock, which obviously impacts Liberty and its ability to fund its own buybacks?

Speaker Change: Okay.

Greg Maffay: Hey, Greg. On the charter approach or the proposals, I guess the question I have is sort of why now? Obviously, we're seeing other kind of rationalization in the liberty universe, but I'd love to just get you to kind of step back and explain the thought process of moving forward, at least discussion wise with this.

Speaker Change: Hey, Greg I'm on the charter approach or proposals I guess the question I have is sort of why now obviously, we're seeing.

Speaker Change: Other kind of rationalization in the Liberty.

Speaker Change: Universe, but I'd love to just get you just kind of step back and explain the thought process is moving forward at least discussion wise with this and also what kind of has to happen.

And also what kind of has to happen from a process point of view to allow charter to get back in the market buying back stock, which obviously impacts liberty and its ability to fund its own buybacks.

Bryan: From a process point of view to allow charter to get back in the market buying back stock, which obviously impacts liberty and its ability to.

Bryan: Fund its own buybacks.

Ron Duncan: And then I just want I don't know if Ron can comment on this, but but are there is there anything we should be thinking about from a regulatory point of view around change of control in Alaska that's that's different than what we might see in a typical you know, cable acquisition, telecom acquisition. Thanks a lot.

Ben Swinburne: And then I just want, I don't know if Ron can comment on this, but is there anything we should be thinking about from a regulatory point of view around change of control in Alaska that's different than what we might see in a typical, you know, cable acquisition, telecom acquisition? Thanks a lot.

Speaker Change: And then I was just I don't know if Ron can comment on this but are there is there anything we should be thinking about from a regulatory point of view around change of control in Alaska. That's that's different than what we might see in a typical cable acquisition telecom acquisition. Thanks a lot.

Greg Maffei: Thanks, Ben. I'll start. Why now? I think we came up with a structure that's been proposed that would work for both Charter and Liberty Broadband in terms of allowing us to tighten the discount, eliminate the dual corporate structure over time, but still provide support and a partnership in the interim until the closing. So I think it was just a meeting of the minds that this was an attractive time for both parties to construct something that worked to help both of our sets of interests. On the buyback, I think, you know, upon either the announcement of a signed deal or the cessation, if they were unable to reach a deal, they would be able to begin their buybacks again. But I would-

Speaker Change: Thanks, Ben I'll start why now I think.

I'll start. We came up with a proposed structure that would work for both Charter and Liberty Broadband in terms of allowing us to tighten the discount, eliminate the dual corporate structure over time but still provide support and a partnership in the interim until the closing.

Bryan: We came up with it it's been proposed to structure that would work for both.

Bryan: Charter and Liberty broadband in terms of allowing us to tighten the discount eliminate the dual corporate structure over time, but still provide support and partnership in the interim until the closing so I think it was just a meeting of the minds that this was a an attractive time for both parties to construct something that worked.

So I think it was just a meeting of the minds that this was an attractive time for both parties to construct something that worked to help both of our sets of interests.

Bryan: To eliminate to help both of our sets of interests.

On the buyback, I think upon either the announcement of a signed deal or the cessation if they were unable to reach a deal, they would be able to begin their buybacks again, but that would be my understanding.

Bryan: On the buyback.

Bryan: I think you know upon either the announcement of a of a signed deal or the cessation. If they were unable to reach a deal are they would be able to begin their buybacks again, but I think I'm not the.

Ben Swinburne: Okay.

Greg Maffei: I'm not the... That would be my understanding.

Bryan: Would be my understanding.

Ben Swinburne: Got it.

Speaker Change: Got it.

Greg Maffei: Ron, do you want to comment on anything on Alaska regulatory? I know you guys do have a unique regulator to have to go through approval.

Ron Duncan: Ron, do you want to comment on anything on Alaska Regulatory? I know you guys do have a unique regulator to go through approval. We do, and it actually makes it fairly simple up here. Our franchises and our certificates come from a single state agency. They're not municipally based. Alaska regulatory approval, if there was a change of control, would be. small in comparison to the normal stuff we'd have to go through at the federal level of the FCC. So not a significant issue on the state side.

Speaker Change: Ron do you want to comment on anything on Alaska regulatory I know you guys do have a unique.

Speaker Change: Regulator to it has to go through approval.

Brian Wendling: We do, and it actually makes it fairly simple up here. Our franchises and our certificates come from this single state agency. They're not municipally based. Alaska regulatory approval, if there was a change of control, would be small in comparison to the normal stuff we'd have to go through at the federal level of the FCC. So not a significant issue on the state side.

Fran: We do and it actually makes it fairly simple up here are Fran.

Bryan: Franchises and our certificates come from single State agency, they're not municipally base.

Speaker Change: Oscar regulatory approval, if there was a change of control would be.

Bryan: Small in comparison to the normal stuff, we'd have to go through at the federal level and the FCC, so not not a significant issue on the state side.

Ben Swinburne: Anything, Ron, on the transfer? I actually don't know if you guys have FCC licenses, I apologize, but from a wireless point of view, anything we should be thinking about there?

Speaker Change: Anything Ron on the transfer I actually don't know if you guys have FCC licenses I apologize, but from a wireless point of view anything we should be thinking about there.

Anything, Ron, on the transfer? I actually don't know if you guys have FCC licenses, I apologize, but from a wireless point of view, anything we should be thinking about there? We have wireless, we have microwave, we have cable landing licenses, we are flush with FCC stuff so there would be a normal FCC process in several different segments of the FCC. Got it.

Brian Wendling: We have wireless, we have microwave, we have cable landing licenses. We are flush with FCC stuff, so there would be a normal FCC process in several different segments of the FCC.

Speaker Change: We have wireless we have microwave we have cable landing licenses, we are flush with FCC stuff. So there would be a normal FCC process in several different segments of the U F C. Okay got it.

Ben Swinburne: Got it. Thanks a lot.

Thanks a lot. Thank you.

Speaker Change: It's a lot.

Speaker Change: Okay.

Operator: Thank you. Our next questions come from the line of Kutgun Mural with Evercore ISI. Please proceed with your question.

Speaker Change: Thank you our next questions come from the line of tuck on morale with Evercore ISI. Please proceed with your question.

Cut Gun Morale: Our next questions come from the line of Cut Gun Morale with Evercore ISI.

Greg Maffay: Please proceed with your question. Good afternoon, and thanks for taking the questions. Two quick ones on the charter negotiations, and then since I assume you can't share much more, a separate follow-up if I could. So on the negotiations, I wanted to see if you could help us think about where GCI fits into those discussions. Is there a realistic scenario where GCI is not included in a potential transaction, or is that unlikely given what might be a desire to potentially avoid complications around, I don't know, maybe taxes or having a separate drawn-out process with another third party?

Kutgun Maral: Good afternoon, and thanks for taking the questions. Two quick ones on the Charter negotiations, and then since I assume you can't share much more, a separate follow-up, if I could. So on the negotiations, I wanted to see if you could help us think about where GCI fits into those discussions. Is there a realistic scenario where GCI is not included in a potential transaction, or is that unlikely, given what might be a desire to potentially avoid complications around, I don't know, maybe taxes or having a separate drawn-out process with a third, another third party? And relatedly, you know, there's been some confusion around the mid-2027 close timeline that both companies referenced. Is there any more context you could provide on that timeline? And assuming GCI is included in the deal, is there any reason why that date can't be moved up?

Speaker Change: Good afternoon, and thanks for taking the questions two quick ones on the charter negotiations and then since I assume you can't share much more a separate follow up if I could so on the negotiations I wanted to see if you could help us think about where you see I've fits into those discussions is there a realistic scenario where do you see I is not included.

Speaker Change: A potential transaction or is that unlikely given what might be a desire to potentially avoid complications around I don't know maybe taxes or having a separate drawn out process with another third party.

And relatedly, you know, there's been some confusion around the mid-2027 closed timeline that both companies referenced. Is there any more context you could provide on that timeline? And assuming GCI is included in the deal, is there any reason why that date can't be moved up?

Speaker Change: Italy, you know theres been some confusion around the mid 2027 close timeline that both companies referenced is there any more context, you can provide on that timeline and assuming GCI is included in the deal is there any reason why that can't be moved up and then I have a follow up.

Kutgun Maral: And then I have a follow-up.

And then I have a follow-up.

Greg Maffei: Okay. So Kutgun, I think I can't comment because you've seen that the two proposals had differing views of GCI, and I can't comment until there's a resolution of those publicly.

Speaker Change: Okay. So quick on the I think I cant comment because you've seen that the.

Okay, so quick on the, I think I can't comment because you've seen that the two proposals had differing views of GCI, and I can't comment until there's a resolution of those publicly. On the question of the timing, I think it was outlined in some of the letter, so that went back and forth, that the delayed timing was to compensate for the regulatory process, give some opportunity to de-lever at Liberty Broadband, and to continue the partnership for a period of time where it's known that they'll eventually come together, but we can be supportive. Understood. I appreciate that.

Speaker Change: Two proposals had different views of GCI and I cant comment until there's a resolution of those publicly.

Kutgun Maral: Mm-hmm.

Greg Maffei: On the question of the timing, I think it was outlined in the letter, so that went back and forth, that the delayed timing was to compensate for the regulatory process, give some opportunity to delever at Liberty Broadband, and to continue the partnership for a period of time where it's known that they're eventually coming together, but we can be supportive.

Speaker Change: On the question of the timing I think it was.

Speaker Change: Outlined in some of the the letter.

Speaker Change: I went back and forth that the delayed timing was to a company compensate for the regulatory process give some opportunity to delever at Liberty broadband and to continue the partnership for a period of time, where it's known that there eventually come together, but we can be supportive.

Kutgun Maral: Understood. I appreciate that. And maybe switching gears a bit to a topic where you might be able to speak a little bit more on. You know, Greg, we've seen a number of announcements and targets over the last few months, be announced from the telcos around their fiber and fixed wireless ambitions. I assume you'll share a lot more of your views next week, but anything you could touch on in terms of how you see the broadband market, and the competitive dynamics evolving in the coming years, and where Charter sits within that as arguably one of the most attractive players on convergence? Thanks.

Speaker Change: Understood I appreciate that and maybe switching gears a bit to the topic, where you might be able to speak a little bit more on you know Greg we've seen a number of announcements and targets over the last few months be announced from the telcos around their fiber and fixed wireless ambitions I assume you'll share a lot more of your views next week, but anything you could touch on in terms of.

Greg Maffay: It may be switching gears a bit to a topic where you might be able to speak a little bit more on, you know, Greg, we've seen a number of announcements and targets over the last few months be announced from the telcos around their fiber and fixed wireless ambitions. I assume you'll share a lot more of your views next week.

But anything you could touch on in terms of how you see the broadband market and competitive dynamics evolving in the coming years and where charter sits within that as arguably one of the most attractive plays on convergence. Thanks. Yeah, I think you touched on the point as far as convergence. Charters pursuing it aggressively with their mobile offering, Spectrum One and the other offerings like that that they've done which bring both broadband video Mobile together Bringing that converged network is absolutely one of Charter's goals to take advantage of the strength of network They have the upgrade program that they have with the high split.

Speaker Change: How you see the broadband market and competitive dynamics evolving in the coming years, and where charter sits within that is arguably one of the most attractive players on convergence.

Speaker Change: Yeah.

Greg Maffei: Yeah, I, I think you, Kutgun, you touched the point that as far as convergence, Charter is pursuing it aggressively with their mobile offering, Spectrum One and the other offerings like that, that they've done, which bring both broadband, video, and mobile together. Bringing that converged network is absolutely one of Charter's goals to take advantage of the strength of network they have. The upgrade program that they have with the High Split, allowing symmetric broadband up and down, is an important part of that, and I think it leverages Charter's strengths and the strength of their coax network, and coax and fiber network. The trends in the marketplace suggest that, you know, we've seen less growth in FWA and more people looking at fixed plant and being desirous of fixed plant.

Speaker Change: Yeah, I I think you touched on you touched on the point that as far as convergence.

Speaker Change: Charter's pursuing it aggressively with their mobile offering spectrum, one and the other offerings like that that they done which bring both broadband video and.

Speaker Change: Mobile together.

Speaker Change: Bringing that converged network is absolutely one of charter schools to take advantage of the strength in network. They have the upgrade program that they have with the.

Speaker Change: Hi split.

Speaker Change: Allowing symmetric.

Speaker Change: Broadband up and down.

Broadband up and down is an important part of that, and I think it leverages charter strengths and the strength of their coax network and coax and fiber network. The trends in the marketplace suggest that we've seen less growth in FWA and more people looking at fixed plant and being desirous of fixed plant. And Charter believes, as do we, that their plant, particularly after that high split, is going to grow. powerful competitive weapon and make an attractive consumer offer.

Speaker Change: <unk> is an important part of that and I think it leverages charter strengths and the strength of their coax network and coax and fiber network.

Speaker Change: <unk>.

Speaker Change: The.

Speaker Change: The trends in the marketplace suggests that we've seen less growth in F. W. A and more people looking at fixed plant and being desirous of fixed plant and charter believes is the way that their plant, particularly after that high split is going to be a powerful competitive weapon, making it an attractive consumer offering.

Greg Maffei: Charter believes, as do we, that their plant, particularly after that High Split, is gonna be a powerful competitive weapon and make an attractive consumer offering.

Kutgun Maral: Thank you so much.

Thank you so much. Thank you.

Speaker Change: Great. Thank you so much.

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

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

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

Barton Crockett: Hi, thanks for taking the questions. I was curious about your thoughts on just antitrust, you know, in a Republican administration. Do you think if there was a relaxation of views on antitrust, would that open opportunities that would be meaningful for M&A around Charter, do you think? Or, you know, do you think you could already do what you want to do, so that doesn't really matter?

Hi, thanks for taking the questions. Um, I was curious about your thoughts on just, um, antitrust, you know, in a Republican administration. Uh, do you think, uh, if there was a relaxation of, um, views on antitrust, um, would that open opportunities that would be meaningful for MNA around charter, do you think, or, you know, do you think you could already do what you want to do so that doesn't really matter?

Barton Crockett: Hi, Thanks for taking our questions I was curious about your thoughts on just antitrust.

Barton Crockett: And a Republican administration.

Barton Crockett: Do you think Ah if there was a relaxation of views on antitrust.

Speaker Change: Would that open opportunities that would be meaningful for M&A.

Speaker Change: At round charter do you think or you know do you think you can already do what you want to do so that doesn't really matter.

Greg Maffei: Yeah, Barton, as far as, you know, Charter being acquired, there are not that many substantive targets out there. Most of them, I suspect, could have been accomplished even under the current regulatory regime. As far as, you know, other larger combinations, I think it's too soon to tell what would be allowed. But, you know, could you see more convergence of, to build national networks? That should, I think, that'd be a competitive strength. It'd be interesting. Could you see more combinations reflecting that converged network? That would be interesting as well, potentially. But, you know, probably, it's more likely than not, just looking as, you know, a casual observer, that this, that, this regime, a new regulatory regime, would be more open to that, but it's hard to know for certain.

Speaker Change: Yeah, Barton I as far as you know.

Greg Maffay: Yeah, Barton, as far as, you know... charter being acquired, there are not that many. substantive targets out there and most of them I suspect could have been accomplished even under the current regulations. as far as, you know, other larger combinations.

Speaker Change: Charter being an acquirer there are not that many subsidy of targets out there most of them I suspect could've been accomplished even under the current regulatory regime as far as other larger combinations.

I think it's too soon to tell what would be allowed. But, you know, could you see more convergence to build national networks? That should, I think that'd be a competitive strength. It'd be interesting. reflecting that converged network, that would be interesting as well potentially, but it's more likely than not, just looking as a casual observer, that a new regulatory regime would be more open to that, but it's hard to know for sure.

Speaker Change: I think it's too soon to tell.

Speaker Change: What would what would be allowed.

Speaker Change: But you know could you see more convergence up to build national networks is that true.

Speaker Change: That'd be a competitive strength that the interesting could you see more combinations.

Speaker Change: Reflecting that converged network that.

Speaker Change: That would be interesting as well potentially but.

Speaker Change: Probably.

Speaker Change: It's more likely than not just looking at you know what.

Speaker Change: Casual observer that this that.

Speaker Change: This regime, a new regulatory regime would be more open to that but it's hard to know for certain.

Barton Crockett: Okay. That's it. Thank you.

Speaker Change: Okay. That's it thank you.

Okay, that's it. Thank you.

Greg Maffei: Thank you, Barton. I guess, operator, we are through with the questions. Thank you for our listening audience, for their interest in Liberty Broadband and Liberty TripAdvisor. As I said, we look forward to seeing some of you in person and some of you virtually next week. And until then, be well.

Thank you, Barton.

Barton: Thank you Barton.

Greg Maffay: I guess, Operator, we are through with the questions. Thank you for our listening audience for their interest in Liberty Broadband and Liberty Trip Advisor. As I said, we look forward to seeing some of you in person and some of you virtually next week.

Speaker Change: I guess operator, we are through with the questions. Thank you for our listening audience for their interest in Liberty broadband and Liberty Tripadvisor as I said, we look forward to seeing some of you in person and somebody would be virtually next week and until then be well.

Until then, be well.

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

Speaker Change: Thank you that 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.

That does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

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