Liberty Broadband(LBRDA) - 2024 Q1 - Quarterly Report

Financial Performance - GCI Holdings reported revenue of $245 million for Q1 2024, a decrease of $1 million compared to Q1 2023[129] - Consolidated operating income improved by $12 million to $28 million for Q1 2024, with GCI Holdings' operating income increasing by $8 million[131] - Adjusted OIBDA for Q1 2024 was $85 million, up $3 million from $82 million in Q1 2023[135] - GCI Holdings' Adjusted OIBDA remained stable at $90 million for Q1 2024 compared to Q1 2023[130] - GCI Holdings' total revenue was $245 million for the three months ended March 31, 2024, slightly down from $246 million in the prior year[165] - GCI Holdings' consumer data revenue increased by $1 million to $60 million for the three months ended March 31, 2024, compared to $59 million in the prior year[165] - GCI Holdings' operating income improved to $37 million for the three months ended March 31, 2024, up from $29 million in the prior year[164] - Charter's revenue increased by $26 million to $13,679 million for the three months ended March 31, 2024, compared to $13,653 million in the prior year, driven by growth in residential mobile service and Internet revenue[141] - Adjusted OIBDA rose by $195 million to $5,535 million for the three months ended March 31, 2024, compared to $5,340 million in the prior year[143] - Net income increased by $97 million to $1,280 million for the three months ended March 31, 2024, compared to $1,183 million in the prior year[141] Operating Expenses - Operating expenses, excluding stock-based compensation, decreased by $169 million to $8,144 million for the three months ended March 31, 2024, compared to $8,313 million in the prior year, primarily due to lower programming costs[142] - Other expenses, net increased by $36 million to $1,405 million for the three months ended March 31, 2024, primarily due to increased interest expense[144] - Income tax expense rose by $72 million to $446 million for the three months ended March 31, 2024, compared to $374 million in the prior year, driven by higher pretax income[145] - Operating expenses remained flat for the three months ended March 31, 2024, compared to the prior year period[170] - Selling, general and administrative expenses decreased by $1 million for the three months ended March 31, 2024, primarily due to reduced lease expenses from modifications made in 2023[170] - Depreciation and amortization decreased by $8 million for the three months ended March 31, 2024, as certain fixed and intangible assets became fully depreciated during 2023[172] Debt and Interest - Interest expense increased by $6 million to $51 million in Q1 2024 due to higher interest rates and increased amounts on the Margin Loan Facility[138] - As of March 31, 2024, variable rate debt amounted to $1,819 million with a weighted average interest rate of 7.3%[175] - Fixed rate debt totaled $1,865 million with a weighted average interest rate of 4.8%[175] - The company is exposed to market risk from adverse changes in stock prices and interest rates, which could impact future earnings[173] - Interest rate risk is managed by maintaining a mix of fixed and variable rate debt, with strategies including issuing fixed rate debt and entering into interest rate swap arrangements[174] Market and Economic Conditions - Charter lost 72,000 Internet customers in Q1 2024 but added 486,000 mobile lines, attributed to the Spectrum One offering[124] - Charter expects government subsidies for 5.0 million ACP customers to run out in May 2024, potentially impacting customer net gains and revenue[125] - The Alaska economy's dependence on the oil industry poses risks to GCI Holdings' business amid potential recessionary pressures[119] - Charter's network evolution initiative is progressing, with upgrades to deliver symmetrical and multi-gigabit speeds across its footprint[126] - Charter spent $427 million on its subsidized rural construction initiative in Q1 2024, activating approximately 73,000 subsidized rural passings[126] Cash and Investments - Liberty Broadband had a cash and cash equivalents balance of $108 million as of March 31, 2024[155] - The investment in Charter, an equity method affiliate, is publicly traded and subject to market risk not reflected in the financial statements[175]