Liberty TripAdvisor (LTRPA) 16 Feb 242023 Q4 Earnings call transcript

Welcome to the Liberty Broadband 2023 Year-end Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded today, February 16, 2024. I would now like to turn the call over to Shane Kleinstein, Senior Vice President of Investor Relations. Please go ahead.

Thank you.

Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Liberty could uncertainties, due the including Forms filed results of a most or TripAdvisor XX-K and Liberty risks those by events differ SEC. to materially number recent with Actual the and Broadband mentioned in with is expectations only TripAdvisor forward-looking reflect for events, These discuss TripAdvisor's Liberty updates date thereto call, of Broadband disclaim Liberty or disseminate or on statements any any in to or Broadband obligation revisions of financial Liberty this forward-looking Liberty as change the any and contained call, will change herein regard any conditions OIBDA. adjusted which any in measures we statements Liberty including non-GAAP certain to any to based. On circumstances Broadband, or speak expressly such statement and or undertaking today's Information well earnings earnings metrics, comparable including found Liberty note with and definitions can available are required release X press Broadband's prior GAAP issued in preliminary website. on the as be and and releases as X, for reconciliations, Schedules periods, which the regarding the along today

Greg Now to the to Liberty's President turn call over CEO. I'd and like Maffei,

Chief Thank Officer, Officer Pounds you, good speaking Broadband's Today the and we will also GCI; GCI Shane, of answer will Duncan, Liberty also Principal to morning. call, Financial CEO Ron questions. Brian have Pete Wendling; on of and Accounting and available be

be answer related questions to to also available we TripAdvisor. will During Q&A, Liberty

of do year, repurchases the spent few $XXX the on slowed XX% fully We January, from the I'm of we we we October. or LBRD and their buyback. months. repurchases. Similar our $XXX So buyback $XXX the Charter repurchased. in our with in exceed repurchases received sales the million Charter back into resumed to Broadband down requirements made to LBRD grants XX%, repurchased the of repurchases From -- Charter shares we -- cap next proceeds And to begin XXXX resume Broadband. Liberty expect last million proceeds sales therefore, million the share diluted Charter under going not Liberty of to using -- from of be to our proceeds XX that sell early cap, ownership Once plan Xst

were over we impacted quarter, XXXX the itself, broadband assets will and have And third do fourth will on the certainly demands noise capacity the unit have we The issues Charter long favor in among increase a from dispute increased but bandwidth acknowledge been also quarter speeds. trend will time. Fixed higher -- consumers, wireless, there end which believe the the competitive in at the the near-term at term, growth. headwinds consistent a competition that do Looking of which delayed believe impact wireless their from quarter. There's fixed lessen Disney to operators felt we of was limitations. will over continue clear been

We are long-term shareholders.

are prior from mobile the churn. XXXX. quarter. the in promotional no to add confident accelerate converged XX% cohorts periods that during That's ] speed investments Charter strategic returns rolling mobile for a is at Charter will most the will highest is We the reducing making adds [ able drive excellent saw are and periods. few million the [ over competitive ] a growth line converged churn growth One in was the over assets growth fourth the off uptick to and prices consumers. Spectrum the of X.X net next off offering the nearly continuing provide generate And Charter initial year. who and we

would you expect, ] mobile customers. Internet-plus the than customers As [ stickier Internet-only are

over course Charter can at targets. We about The their per penetration, fast, beating upgrade evolution network believe footprint. the news, on competitors remains passing. $XXX don't positive path ARPU upgrades Another is with ROI at rural low-cost expansion replicate and that

has As to excluding normalized outlined outlook, the levels. from down materially long-term XXXX expect it to management BEAD, step CapEx

our and We are those amendment unless me comment We an filed will XXD executed [ further in Trip. discussions ]. discussions, terminated. we acquisition documents Liberty were discussions touch not Board or definitive authorized on are on Let to the to by engage the

were actions, seen of the of Looking marketing profitability at XX% XXXX TheFork TripAdvisor margin And EBITDA efficiencies we cost-saving There on outperformance move to particularly In improving itself. margins. We've diversification with XXXX. half prior results, a at half. its strong XX% also and reached TripAdvisor back was they the being XXXX rates now TripAdvisor revenue. brand, And level TripAdvisor. operating nearly exceeded renamed up less the than experiences revenue And there which year. among comparison, half are break-even the continue better-than-expected almost the anticipated. TripAdvisor, QX to The of XX% Viator expectations. QX in that performance. in great seen successful revenue was than repeat allowed customers. have Viator -- was had are us We've increased at at TripAdvisor. brand recently brand, and the earlier over were expansion Viator

the the it we we is are from to turn long-term optimistic discuss on strategic focused engagement For I'll time. Brian new results. And repeat opportunities and to financials. first ] tools about to those think QX drive gross and like that, growth, exceeded booking trip the product with Management example, value Viator, [ GenAI-driven customers at over and travelers enhancements for

was total $XX.X Broadband value end, amount billion. cash million, equivalents $XX based $XXX you, Thank Note end, of of $X.X debt stock. of on includes Liberty as our quarter had Greg. of principal million of the that February cash preferred this our excludes X yesterday's share Charter The held a of as had GCI. which At cash investment and Liberty shares Broadband at of billion. At Charter consolidated close and quarter price

book Reduction guidance conservatively tax deduction, low We the to the This the for minimum to Charter our the digits. on apply charter are sales updating Inflation does rate DRD, for dividend sales our tax double annual assumes under XXXX received not Act.

the from offset regular in guidance treasury income pending. rate additional will this minimum note and is to accruing forward in tax XXXX extent years prior higher tax making the any for beyond a exceeds are current with We this we're tax Consistent year. minimum I tax, paid more the the tax book not of guidance carry to that income years, IRS providing book timing for future impact. regular XXXX, specific while tax

of with free GCI, generated year Liberty year. $XX at XXXX Looking to and adjusted during the OIBDA. was dividends distributed cash a for company the GCI good revenue record million Broadband solid and flow

declines adjusted primarily In video decreased million, performance offset and strong OIBDA quarter, adjusted the For full revenue other and and $XXX OIBDA the was grew driven revenue in in by fourth revenue, to voice. respectively, the data million revenue, by and year, $XXX X%. X% flat business

by that, X,XXX was ] undrawn [ XXXX of certain X.Xx grant was $XXX customers under paid most be this million continued prior facility. In capital of costs We'd XXXX. connectivity network at additional expenditures While real we strong GCI's GCI's year-end, turn This see million grant subscribers and $XXX consumer a expenditures middle- down and in is year-end, for I'll capital projects. credit its fiber proceeds that XXX on its due in expected in primarily revolving Alaska, to approach in capacity necessary high-returning state agreement leverage GCI added spent approximately related federal rural in over are SG&A. Operationally, net modem its with has and increased an our declines data with revenue expansion other to proactive in back the from under subsequent business Bethel received and above critical as proceeds. XXXX, expectations including GCI securing credit of investments GCI note incremental and largely net is GCI wireless million to cable in important revolver. $XX connectivity Taking million defined funding. continue and markets to X,XXX in growth, to offset AU-Aleutians receiving last-mile funding. And call the government to Greg. to projects timing consumer

you, listening like operator, TripAdvisor. And interest line our Liberty Liberty with and the for continued Thank questions. appreciate And Brian. your Broadband audience, in that, we open to I'd to

from come Rollins of the Citi. line [Operator Michael first Instructions] with Our questions

questions. Two

you First, secondly, of GCI whether your the then stay under implications not to in for program possible expectations discontinued? the the be change or what your the on to And ACP Charter? And does Charter, price and cap? interest for being each when share are as current can to will XX% buyback on comments Liberty's Charter investor needed given Charter's the a long-term sell just shares into thoughts

maybe about the And then you'd like talk back GCI. Thank I'll to you talk potential impact I'll ACP for Ron, then, address to ACP the about buyback. to my question. Charter, and impact and And and come expectations.

many in There amount congressmen wooly is and received or not is certainly of which many red will for guess senators, it actually support them of among ACP ACP of are renewed our whether world to into states, enormous the of an Washington. knowledge, So be and the a majority proceeds. a

-- some is for at program. have bandwidth, have in little have unknown. We there demand to that a bandwidth that assume Washington but Many something of ACP there customers for So reason think only for grown. customers path ACP impact, the that's customers prior the Charter trying were a the is crisp my clearing forward is the to is capabilities. The that beyond optimism, requirements

against that reason some among the course, is also us most correct getting a our in why customers is even a but in helpful indicates it. be to continue of That, of which want vote isn't may for absence the the that may is of necessary Washington complaints take not securing program, -- subsidy One funding, -- this that some will And in it's ACP. not it because it people bandwidth. ACP customers broadband is

clearly eliminating have, a or on would [ ] hard it's the ACP add how speculate but it's have margin. Ron, to on you impact anything? the want would cessation to of ACP not positive much would So

And Most bad have briefly, Just to ACP in customers were an on customers minimal of little broadband uptick of an expecting from a slight GCI. debt in a begin with. and churn. bit increase the at we're budgeted we discontinuance probably ACP anticipate impact

was offering of competitive offerings, day, they of customers to from expensive least an perceptible to there's bill. But ratio the I do side. disappearance less the us opportunity ] ACP create more to the plus the their AT&T a subs doing and ACP Verizon GCI on ACP. off the of for in because as Verizon ACP may effect [ our market expensive doubt believe nationwide, that the of with will to and wireless wireless expense upside the should for at than than AT&T broadband of for shift the who I at think hugely I of wireless reduce on customers being less us goes the half churn phase opportunity end And -- the providers. wireless grow be the ACP struggle wireless among build

of out wired side and coming positive impact side. little more very it from on see the the we So wireless expect

just Charter that impact I'd on Spectrum the statements the those One impact or pushing to add that, how with all same affected program. wireless our are likely we're have and about

On to raise -- continue to own the the buyback Charter's buy or I in long-term question and back to or whether -- about the to on the not ] interest issue, sell case, we our Charter therefore it's believe, the think [ LBRD. continue and seek raise cap interest at

use the you that. And look, underlying because the repurchases. the at discount for same because price tax the capital at debt majority much larger our see via for than buying we're to and proceeds -- to than so price the LBRD is Charter, set leakage. LBRD from LBRD raise is the reality think, have the substantial seen rather Charter of of repurchase use some us also we amount capital We've I of of LBRD a the on spending incentives today cap reduction LBRD discount share the still to the

it So I'm sure program. our actually not changes

Our Barton line Crockett Rosenblatt from with questions Securities. come the next of

companies picture some just the bundles then that an I skinny in kind in streaming big for of Greg of emerging appropriateness on and the was I from of guess bundles another new curious antitrust kind bigger-picture Greg, your the bolts things. One, terms question, thought the nuts X a are or media and legality numbers. on perspective. is or The about of

lot [ a offer the think any have some the of reports discussing the Bro.s, Fox, the efforts, specifically, sports questions you ownership there? Similarly, Comcast dual Disney, been antitrust, there. Paramount are believe or perhaps of there include a their CBS. streaming kind think So I I do that NBC, combining about And prohibition the bundle video ] Charter of do and and at There's services FCC broadcast from you content on questions there's and skinny streaming bundle that guess would antitrust rights to kind from same not? Warner networks, some network have

an feel later ends And kind you about come up affects then just how the that a issue with of you do question. I'll numbers think small So this? question. being that's that And So antitrust? big-picture do back

I'm Barton. big only Okay, the picture. good on

for of without than own. The those -- a long-term as So that for that observers as to dug is how -- And also But I risk. -- sure and as and I've with there not created making the bundles, And think are an about for I'm firm bundle shift. question knowledgeable that my a have we Charter, heard on are antitrust we you really drive skinny I packages I've both uncertain thank is. bundles demand enough starting that. distributor positive skinny are we're The continuing opportunity broadband implications. opine. not margin about and potentially -- sides of that to view into it I'm

think seen it certainly Charter full of made I it's and -- where have of in evaluation a go. the all So we -- while it at will not

the both as economic it positive drives and me to as which On something opportunity broadband. an margin, feels

the just And your then actual the rate sure something I numbers expansion sales Charter on million to $XXX the number When wanted I'm year, that And on is just then $XXX clear. question. is that a CapEx this shares. make say be comparable that. you commentary Or the and Great. million? would different? of There's tax for to Okay. comparable

sure not followed I quite what like mean, tax I for -- rate a I'm you us number? should there. assume I Just a just give can

Yes.

On the tax...

yes, -- you. ahead, Ron or Brian. Brian go Thank

a $XXX double million number, then That's million. you low giving the it's right. comparable Barton. on We're to point, this just digits at CapEx, the $XXX And the yes,

next Stanley. Ben line the Our Morgan Swinburne questions come with of from

I think big so you. think I these picture, are for

with Come you. on, scare those details. Don't me Ben. Thank

Charter, asked I back level. in question right the John November you the is leverage ask is I still why on which X.Xx

what the on -- your Charter thinking I they for think spoken, know has but least at I market they're where obviously, answer now, on stock. is, what

the prepared some on I'd business. be have dispute, in scenario an lower actually on objectives think So and you on from you been Do looking curious it optimal. And you where the extracted again, your there's remarks the versus disruption mentioned and the leverage that think then that back weighed if subs. a Disney is that's of business? net the was And stock agreement sort has of that broadband impact worth Charter what by video adds in Charter their outsized

how wondering that. on reflect So just you

part. leverage we most maturities, [ that I team to Well, even diversity we're I'll leverage leverage the under the scenarios, the high length start think, moment, And The with open we're of shareholders about some But X.Xx ] at with that the question are movement right the and of scenarios in -- the merits. is, Board, Charter off the the holding lower question has that's have relative certainly, interest we shareholders for the or course have -- the management leverage. It's we're weighing obviously, might in what asking mean. the maturities, multiple a confident question, pretty general. given sense of we certainly responsive our the likely in the rates in better shown

to the for think to their that the would I but don't I not with there pay we management's think I degree you for agreement look But -- them, we've proposal right from can at in advances received ], correctly shareholders that relaying yet. massive was XX% pushback attention, think X.X% we're [ certainly for XX% views number. the that it. And want the I probably think say speaking I and the holder -- holder

Disney. than long a a Out we're in play into on a long-term look, offerings you is occurs -- are the and we I [ quarter And think and the second business by having stock that received bet. rolling competitively page. a have It's is questions right to bleeding partnered just ] if quarter. ] we that view, think ourselves projection the where -- feel aligned growth get I role we've same in to the like these role what's exacerbated than strategy a And rather sports It margin. of or having can with think happened to stable or not we a where may think the and for And be think a marketplace net of function when we're be can the still that on whether how impacting doing it's long-term video rather argument I it's that it and management over-the-top them, a distributor of we function. but a I leverage. Disney, I by broadband bundle. price the But leverage, [ I make having more as -- with term. same the the it having stands occurs, people align the

questions come Nordhagen the Our Alex from line Balyasny. with of next

to need right had balance cash then given to I at the that Trip in XX stack. think on to XX, low the market coupon, ] involved, coupon case or is not? one, any March a there I callable those, the acquisition now. kind XX was of disclosed assuming the plan But I discussions, respect be with base sort first transaction? just [ ] the obviously, to the [ Liberty really the the any ], would of you'd theory, what are plan cap was need place deal isn't with to in had Sotaris X And second if [ have question with around would half from that that

the -- on you our you Ben, are Do touch plans. to there? want

what ] want to add? to all. I We're not think But going do we're you Ben, reveal [ go evaluating.

Yes.

what repayment this or a we either maturity. strategies monitor think going are those into we're different go addressing But it for I of of not about We at regularly, to an extension think the time. Alex. detail securities probably

we I make And disclosure think only approached but not I whether we're what and the to think Sotaris wouldn't and the beyond the else XXD or with I disclosure is made made we is further, we'll reveal comment anybody I said rules. any being under further really on who we're obligated, comment going what today -- we about say or until offer just disclosure I'll the think,

a if I then. may follow-up And Okay. just ask

do next from away, callable being you any it? stock depressed the intention call month, X weeks With to have

comments We're looking not I'd evaluating such our would going earlier. all intention. think at not things. to all we I not we're -- -- refer as and we our But that to these time We're do, are going Ben's disclose we if we alternatives. to until move, make

All that. right. Appreciate

unsatisfying, Sorry you to tried. be but at least,

will the Barton of question last Securities. line come Our Rosenblatt with from Crockett

come [ -- picture qualifies as just back. I hopefully, Greg, So ] just you. this big for

longer the Just of there's a that and think curious, is be that competitive is long say service, now you -- a a would lot won't I to ceases sticky technical I but the pretty are mind that low-price fixed over just Can kind of thinking wireless competitive you kind feeling do term. out more become of win in cable. and that sense fixed it statement for there's have but any stretched back for how source your of constraints. becomes there wireless before pretty be consumers of

timing the you do is here? what think So

differently. would that they wireless I way I the that the stated Barton, home wireless would answer say you say fixed that the are fixed initially is certainly believe there customers -- need. would competitive, isn't they I premise I for think

time attractive FWA potentially as less as users more and be has think I less or as is reduced broadband over performance set performant. less customer network interesting will and becomes grow that demands that

the bandwidth. and the thing. not it's relative I'm more thinking bandwidth, binary I'm of and needs It's thing. the for a saying network a need So among relative relative relative increased relative attractiveness for attractiveness it's that consumers

willing constrained, been clear about of mean, capacity I think pretty they're with. over T-Mobile I has out to favor then those the time. And how what shift in our -- is many go question when

of Verizon but begin on which But argue, FWA, that You their clear. what not about is. judge it for been if [indiscernible] at I there's they're the in for an FWA. you would been limitation, of quickly space. look has less not margin less has this how clear can that increase recognizing they're to unlimited plans to prices a Verizon amount capacity that seems suggest lot

end for is all question that today's Broadband our you Thank TripAdvisor. your all with in believe you last interest Liberty and And operator, that, Thank today. for I will Liberty call. joining. we

your does you. today's This appreciate We conclude Thank teleconference. participation.

may Enjoy this your of time. day lines your You the disconnect at rest