Acquisition and Divestiture - Liberty Broadband entered into a definitive agreement for Charter to acquire Liberty Broadband, with the transaction expected to close on June 30, 2027, subject to customary closing conditions[134][136]. - The GCI Divestiture is expected to be taxable to Liberty Broadband and its stockholders, with potential corporate tax liabilities exceeding $420 million[137]. Financial Performance - Consolidated revenue increased by $21 million to $266 million for the three months ended March 31, 2025, compared to $245 million in the prior year[152]. - Operating income rose by $15 million to $43 million for the three months ended March 31, 2025, with GCI Holdings contributing an increase of $19 million[154]. - Adjusted OIBDA increased by $14 million to $99 million for the three months ended March 31, 2025, compared to $85 million in the prior year[158]. - Charter's revenue increased by $56 million for the three months ended March 31, 2025, primarily due to growth in mobile lines and average revenue per customer[165]. - The company had net earnings of $268 million for the three months ended March 31, 2025, compared to $241 million in the prior year[176]. - GCI Holdings reported total revenue of $266 million for the three months ended March 31, 2025, an increase of 8.6% from $245 million in 2024[188]. - Consumer data revenue increased by $1 million to $61 million, while consumer wireless revenue rose by $3 million to $50 million for the three months ended March 31, 2025[189]. - Business data revenue increased by $20 million to $128 million, driven by service upgrades with existing healthcare and education customers[192]. - Operating income for GCI Holdings was $56 million for the three months ended March 31, 2025, compared to $37 million in 2024, reflecting a significant improvement[188]. Operating Expenses and Cash Flow - Operating expenses, excluding stock-based compensation, decreased by $49 million to $8,095 million for the three months ended March 31, 2025[166]. - Net cash provided by operating activities increased to $78 million for the three months ended March 31, 2025, compared to $52 million in the prior year[180]. - Interest expense decreased by $11 million to $40 million during the three months ended March 31, 2025, due to lower amounts outstanding on the Margin Loan Facility[161]. - GCI Holdings' operating expenses decreased by $4 million to $58 million for the three months ended March 31, 2025, primarily due to reduced distribution costs[195]. - For the three months ended March 31, 2025, net cash flows provided by investing activities were $300 million, compared to $81 million in the same period of 2024[182]. Capital Expenditures and Debt - Charter spent $468 million on its subsidized rural construction initiative in Q1 2025, activating approximately 89,000 subsidized rural passings[149]. - Capital expenditures for 2025 are projected to be approximately $200 million, alongside $115 million for interest payments on outstanding debt[184]. - As of March 31, 2025, GCI Holdings had $458 million in variable rate debt with a weighted average interest rate of 6.2% and $600 million in fixed rate debt with a weighted average interest rate of 4.8%[200]. - GCI Holdings is in compliance with all debt maintenance covenants as of March 31, 2025[185]. Market Conditions and Strategic Initiatives - GCI Holdings' business growth is heavily dependent on economic conditions in Alaska, which are currently facing recessionary pressures due to volatility in oil prices and inflation[140]. - GCI Holdings has experienced inflation-sensitive cost pressures in 2024 and 2025, impacting materials, labor, and other critical business items[141]. - The U.S. Court of Appeals for the Fifth Circuit ruled the FCC's Universal Service Fund (USF) program unconstitutional, which could disrupt GCI Holdings' USF support and negatively affect revenue[142]. - GCI Holdings' customers may face challenges in obtaining credit, potentially leading to increased accounts receivable and bad debt expense if economic conditions worsen[140]. - Charter is upgrading its network to deliver symmetrical and multi-gigabit speeds, launching 2x1 Gbps service in two markets in January 2025, with plans for further launches[149]. - Charter's new brand platform, Life Unlimited, emphasizes advanced network capabilities and offers lower promotional pricing to enhance customer growth[146]. - The company plans to exit the video business in 2025, subject to regulatory approvals, which may impact future revenue streams[191].
Liberty Broadband(LBRDK) - 2025 Q1 - Quarterly Report