Ownership and Control - Liberty Broadband controls 25.01% of the aggregate voting power of Charter Communications, Inc.[457] - As of December 31, 2024, Liberty Broadband owned approximately 45.3 million shares of Charter Class A common stock, representing an approximate 31.9% economic ownership interest in Charter[467] Financial Performance - GCI Holdings reported a revenue increase of $35 million for the year ended December 31, 2024, reaching $1,016 million compared to $981 million in 2023[508] - Operating income for GCI Holdings increased by $27 million to $144 million for the year ended December 31, 2024, compared to $117 million in 2023[510] - Adjusted OIBDA for GCI Holdings was $362 million for the year ended December 31, 2024, slightly up from $361 million in 2023[508] - Charter's revenue increased by $478 million to $55,085 million in 2024, primarily due to growth in mobile lines and advertising sales[522] - Charter's Adjusted OIBDA increased by $495 million to $22,442 million in 2024 compared to 2023[524] - GCI Holdings reported total revenue of $1,016 million for the year ended December 31, 2024, an increase from $981 million in 2023[570] Debt and Financing - As of November 12, 2024, Liberty Broadband had existing debt of $2.6 billion, which will be repaid or assumed by Charter prior to the closing of the Combination[463] - Net cash used in financing activities was $181 million in 2024, primarily for the repurchase of approximately $300 million in debentures and net repayments of $670 million on the Margin Loan Agreement[542] - Total material cash requirements amount to $6,445 million, with $3,666 million in debt due, and $2,138 million for interest expense and preferred stock dividends[547] - As of December 31, 2024, GCI Holdings had $451 million in variable rate debt with a weighted average interest rate of 6.3% and $600 million in fixed rate debt with a weighted average interest rate of 4.8%[583] Operational Changes and Strategies - The Combination is expected to close on June 30, 2027, subject to customary closing conditions and the divestiture of GCI business[462] - Liberty Broadband will divest the GCI business prior to the closing of the Combination, which is expected to be taxable to Liberty Broadband and its stockholders[460] - Charter lost 508,000 Internet customers in 2024, attributed to the end of the FCC's Affordable Connectivity Program and competitive pressures[500] - Charter added 2,117,000 mobile lines in 2024, benefiting from its pricing and packaging strategy[500] - The company plans to exit the video business in 2025, subject to regulatory approvals[572][576] Compliance and Legal Matters - GCI Holdings recognized an estimated liability of $27 million related to RHC Program compliance issues, including a $15 million settlement expense recorded in 2022[489] - The company entered into a final settlement agreement with the FCC and DOJ, resulting in a total cash payment of $41 million in 2023[492] - GCI Holdings is unable to estimate the potential outcome of ongoing compliance issues identified in the third quarter of 2022[491] Revenue Streams - GCI Holdings earns revenue from monthly fees for data, wireless, video, voice, and managed services, as well as universal service subsidies from the FCC[469] - Consumer data revenue increased by $5 million to $238 million in 2024, driven by higher recurring monthly charges from subscribers[570] - Business data revenue increased by $42 million for the year ended December 31, 2024, driven by increased sales to health care and education customers[573] - Consumer other revenue decreased by $2 million for the year ended December 31, 2024, compared to 2023, primarily due to a decline in video subscribers[572] - Business other revenue decreased by $5 million for the year ended December 31, 2024, primarily due to decreased local and long-distance voice revenue[574] Expenses and Costs - Operating expenses for GCI Holdings were $257 million in 2024, compared to $245 million in 2023[569] - Operating expenses increased by $12 million for the year ended December 31, 2024, mainly due to higher distribution costs[577] - Selling, general and administrative expenses increased by $22 million for the year ended December 31, 2024, primarily due to increased labor-related costs[578] - Stock-based compensation decreased by $3 million for the year ended December 31, 2024, due to lower value of new awards granted[579] - Depreciation and amortization decreased by $23 million for the year ended December 31, 2024, as certain assets became fully depreciated[580] Cash Flow and Liquidity - Net cash provided by operating activities increased to $104 million in 2024 from $16 million in 2023, driven by timing differences in working capital[538] - Liberty Broadband had a cash and cash equivalents balance of $163 million as of December 31, 2024[537] - The company expects corporate cash and other available sources of liquidity to cover corporate expenses for the foreseeable future[544] Market Risks - The Alaska economy's dependence on the oil industry and state spending poses risks to GCI Holdings' business, particularly in the event of a recession[474]
Liberty Broadband(LBRDK) - 2024 Q4 - Annual Report