Financial Performance - GCI Holdings reported revenue of $262 million for Q3 2024, an increase of $22 million compared to Q3 2023, and $753 million for the nine months ended September 30, 2024, up from $731 million in the same period last year [123][124]. - Operating income for GCI Holdings increased to $42 million in Q3 2024 from $30 million in Q3 2023, and for the nine months, it rose to $109 million from $91 million [123][125]. - Adjusted OIBDA for GCI Holdings was $100 million in Q3 2024, up from $89 million in Q3 2023, and $276 million for the nine months, compared to $271 million in the prior year [123][127]. - Revenue for the three months ended September 30, 2024, was $13,795 million, an increase of $211 million from $13,584 million in the prior year, and for the nine months, it rose to $41,159 million from $40,896 million [135]. - Net income for the three months ended September 30, 2024, was $1,474 million, compared to $1,436 million in the prior year, and for the nine months, it increased to $4,177 million from $4,032 million [135]. - Share of earnings from affiliates increased by $20 million and $31 million for the three and nine months ended September 30, 2024, respectively, due to higher net income at Charter [133]. - Cash flow from operating activities provided $103 million for the nine months ended September 30, 2024, compared to a use of $(46) million in the prior year [152]. - Total revenue for the nine months ended September 30, 2024, was $753 million, an increase from $731 million in 2023, with adjusted OIBDA rising to $276 million from $271 million [161][162]. Customer Trends - Charter lost 110,000 Internet customers in Q3 2024 but added 545,000 mobile lines, indicating a shift in customer demand [117]. - Charter's Spectrum One offering contributed to mobile line growth, providing a bundled service that includes Internet, WiFi, and mobile connectivity [118]. - Consumer data revenue increased by $2 million and $4 million for the three and nine months ended September 30, 2024, respectively, driven by higher recurring monthly charges [164]. - Business data revenue rose by $20 million and $25 million for the three and nine months ended September 30, 2024, respectively, primarily due to increased sales to health care and education customers [167]. Operating Expenses - Operating expenses increased by $5 million and $8 million for the three and nine months ended September 30, 2024, respectively, mainly due to higher distribution costs [170]. - Selling, general, and administrative expenses increased by $6 million and $9 million for the three and nine months ended September 30, 2024, respectively, primarily due to labor-related costs [171]. Investments and Initiatives - Charter invested $581 million in its subsidized rural construction initiative in Q3 2024, activating approximately 114,000 subsidized rural passings [119]. - Charter's network evolution initiative is progressing, with plans to deliver symmetrical and multi-gigabit speeds across its footprint [119]. - Charter launched its Life Unlimited brand platform in September 2024, aimed at enhancing customer service and simplifying pricing structures [120]. Economic and Financial Challenges - The company faces challenges from inflationary pressures affecting costs of materials and labor, which could impact margins if not managed effectively [113]. - GCI Holdings' business is sensitive to economic conditions in Alaska, particularly fluctuations in the oil industry and state government spending, which could affect demand for its services [111]. - Interest expense decreased by $8 million and $2 million for the three and nine months ended September 30, 2024, respectively, driven by lower amounts outstanding on the Margin Loan Facility [131]. - Other expenses, net increased by $134 million and $200 million for the three and nine months ended September 30, 2024, primarily due to increased interest expense and losses on financial instruments [140]. Debt and Cash Management - As of September 30, 2024, GCI Holdings had variable rate debt of $427 million at a weighted average interest rate of 7.0% and fixed rate debt of $600 million at a weighted average interest rate of 4.8% [177]. - The projected uses of cash for the remainder of 2024 include approximately $20 million for net capital expenditures and $60 million for interest payments on outstanding debt [156]. - The company expects corporate cash and other available sources of liquidity to cover corporate expenses for the foreseeable future [156].
Liberty Broadband(LBRDK) - 2024 Q3 - Quarterly Report