Liberty Broadband(LBRDA) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Liberty Broadband reported consolidated cash and cash equivalents of $158 million, including $79 million at GCI, and a total principal amount of debt of $3.8 billion, excluding preferred stock [19] - The value of the Charter investment was $13.5 billion based on shares held as of February 1 [19] - GCI's revenue and adjusted OIBDA grew 1% to $931 million and $361 million respectively for the full year [23] Business Line Data and Key Metrics Changes - GCI added 1,400 consumer cable modem subscribers and 4,800 consumer wireless customers in 2023 [24] - GCI's revenue in Q4 was flat, and adjusted OIBDA decreased by 1%, primarily due to increased costs in SG&A [23] Market Data and Key Metrics Changes - Charter added 2.5 million mobile line net ads during 2023, representing nearly 50% growth over the prior year [12] - The rural expansion at Charter exceeded penetration, ARPU, and ROI targets, with network upgrades at about $100 per passing [13] Company Strategy and Development Direction - Liberty Broadband plans to resume buybacks of LBRD shares once it exceeds the 26% ownership cap [5] - The company is optimistic about strategic investments made by Charter, which are expected to generate excellent returns and accelerate growth [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term headwinds impacting broadband unit growth due to increased competition and the delayed impact from the Disney dispute [10] - There is a belief that bandwidth demands will continue to increase, favoring higher speeds and impacting fixed wireless operators negatively over time [11] Other Important Information - Liberty TripAdvisor had strong operating results in 2023, with Q4 revenue up 10% year-over-year and improved marketing efficiencies [15] - The diversification of revenue at TripAdvisor has significantly increased, with Viator and TheFork accounting for nearly 50% of 2023 revenue [16] Q&A Session Summary Question: Expectations on the ACP program and implications for GCI and Charter - Management expressed uncertainty about the renewal of the ACP program but noted significant support among congressmen, suggesting a positive outlook [31] - GCI expects minimal impact from ACP discontinuance, with a slight increase in bad debt anticipated [35] Question: Long-term interest in Charter and share buyback strategy - Management indicated that current pricing does not change the interest in selling shares into Charter's buyback, as they prefer to use proceeds for LBRD repurchases [38] Question: Antitrust implications of new streaming bundles - Management acknowledged uncertainty regarding antitrust implications but viewed potential opportunities in distributing new bundles positively [44] Question: CapEx comparison and tax rate guidance - Management confirmed that the $200 million CapEx for 2024 is comparable to the $216 million spent in 2023 [51] Question: Fixed wireless competitiveness over time - Management believes fixed wireless will become less competitive as bandwidth demands grow, with T-Mobile already increasing prices for FWA [74]