Liberty Broadband(US:LBRDA)2024-02-16 21:04Ownership and Investments - Liberty Broadband owns approximately 46.3 million shares of Charter Class A common stock, representing an approximate 31.9% economic ownership interest in Charter's issued and outstanding shares [418]. Financial Performance - Revenue for Charter increased by $585 million to $54,607 million for the year ended December 31, 2023, primarily driven by growth in residential Internet revenue and mobile device sales [465]. - Operating income for Charter improved by $597 million to $12,559 million for the year ended December 31, 2023, compared to the previous year [465]. - Adjusted OIBDA for Charter increased by $612 million to $21,947 million for the year ended December 31, 2023 [469]. - GCI Holdings reported total revenue of $981 million for the year ended December 31, 2023, an increase of 1.2% compared to $969 million in 2022 [514]. - Operating income increased significantly to $117 million in 2023, compared to $54 million in 2022 [514]. - Net earnings decreased to $688 million in 2023 from $1.3 billion in 2022, reflecting fluctuations in revenue and expenses [479]. Customer Growth and Services - Charter serves more than 32 million customers across 41 states, providing a full range of broadband services [418]. - Charter added 2,474,000 mobile lines and 155,000 Internet customers during the year ended December 31, 2023 [446]. - GCI Holdings' cable modem subscribers reached 159,700 as of December 31, 2023, up from 157,200 in 2022 [512]. - Wireless lines in service increased to 197,300 in 2023, compared to 191,100 in 2022 [512]. Expenses and Liabilities - Operating expenses, excluding stock-based compensation, decreased by $27 million to $32,660 million for the year ended December 31, 2023 [466]. - Other expenses increased by $1.2 billion in 2023 compared to 2022, primarily due to higher interest expenses and increased pension costs [470]. - GCI Holdings recorded an estimated liability of $27 million related to compliance issues with the Rural Health Care Program, including a $15 million settlement expense in 2022 [438]. - GCI Holdings entered into a settlement agreement with the FCC and DOJ, resulting in a total cash payment of $41 million in 2023 [441]. Cash Flow and Financial Position - Cash flow from operating activities improved to $16 million in 2023 from $(56) million in 2022, driven by increased operating income [483]. - Cash balance as of December 31, 2023, was $158 million [482]. - Net cash used in financing activities was $(390) million in 2023, primarily for repurchasing exchangeable senior debentures [487]. - Total material cash requirements amount to $6.163 billion, with $3.724 billion in debt due [491]. Market and Economic Conditions - The company faces challenges from inflationary pressures, particularly in materials and labor costs, which could impact margins [426]. - GCI Holdings' business growth is heavily influenced by economic conditions in Alaska, particularly the oil industry [422]. - The company has experienced a reduction in support payments from the Rural Health Care Program by approximately $28 million due to FCC rate adjustments [428]. Other Financial Metrics - Interest expense increased by $73 million to $206 million during the year ended December 31, 2023, due to higher interest rates on variable rate debt [460]. - Share of earnings from affiliates decreased by $171 million to $1,155 million during the year ended December 31, 2023 [463]. - Income tax expense remained constant at $1.6 billion for both 2023 and 2022 [471]. - Realized and unrealized losses on financial instruments totaled $(101) million in 2023, a decrease from $334 million in 2022, mainly due to market factors [473]. - Selling, general and administrative expenses increased by $14 million to $375 million in 2023, mainly due to higher labor costs and software contracts [522]. - Depreciation and amortization expenses decreased by $32 million to $230 million in 2023, attributed to certain assets becoming fully depreciated [524]. - The loss on dilution of investment in affiliates decreased by $3 million in 2023 compared to 2022, attributed to fewer stock options exercised [472].