Liberty Broadband (LBRDK) 9 Nov 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the GCI Liberty 2020 Q3 Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded November 09. now Officer. conference to Chun, to like Portfolio Chief would turn over the Courtnee I ahead. go Please

Thank you. Good morning.

the Liberty meaning Securities date obligation TripAdvisor's of risks of any a forward-looking filed those with this Broadband conditions SEC. change begin, everyone Broadband with questions Actual Virtual any November Malone Maffei, GCI certain and the preliminary Friday, cover on based. uncertainties, expectations Friday, CEOs, Eastern These mentioned we Thursday, non-GAAP After to including any GAAP this available by both we in with events on pre-submit call, and OIBDA for and November November the any Q&A call a days, circumstances thereto presentations the TripAdvisor. presenting Information XX-K or to Media Liberty our financial from to adjusted Before and On undertaking note in in required along both we'd XX, such differ materially comparable events, due session. to includes change regarding On contained the XX and or TripAdvisor forward-looking X and OIBDA like updates A.M. for Forms include today's or any GCI GCI results On statements GCI GCI regard will of we P.M. reflect and be Reform Liberty, schedules statement press Liberty Please the adjusted will Act Please Investor disclaim statements metrics, revisions to investorday@libertymedia.com. Litigation to found Greg John XX-Q Liberty, will definitions and to margin. could forward-looking is our remind of XXXX. including to Liberty, which expressly will measures speak certain Qurate, disseminate and or discuss can host as today, along XX Private Liberty Meeting. XX, and only or with Liberty statements number X, any of on register Liberty reconciliations, which on and including most is release recent Liberty within X Liberty in the or call, issued earnings Liberty remember website. herein Broadband the Liberty days.

to can register these and of on find details link a our all You homepages.

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

Officer, Thank we to Accounting all. related morning Chief the and you, during GCI and to available GCI's Q&A, on CFO, Pounds. Pete speaking Liberty's and to Brian Today, Principal good and Liberty questions Courtnee TripAdvisor. will also answer Wendling; have call, will Broadband be we Liberty Also

a to period The Liberty on FCC which become few X. First, challenges. final will on waiting give the The approved Liberty proposed October between HSR updates combination X, GCI Broadband. aren't and any on on if I'd there like applicable the transaction expired XX, December October

quickly filed do effective transaction delay proceeding GCI as We proceedings proxy scheduled not The are on XX. the for Alaska and is the them Regulatory Liberty. two as The expedite on which and to meeting And our special vote of shareholder XX. on filed expedited September were are has We application closing with does discovery. is second mention December transaction. to the the we Commission lawsuits, the for expect dismissed against the approval. been still waiting of One We for XX, October our went that looking with can. proxy

XXXX. quarter deal to of than close for received, first the vote expect date With approvals set later the and based we now QX, on already the regulatory we've no the

tests as adjusted upgrade OIBDA third income The in a network little the Anchorage Now have another of as GCI twice of more The great a XG is fast competition. $XXX discuss cash up senior company Operating as Revenue XX%. million, quarter. and in under liquidity a Pounds up of had is was undrawn XX%. twice Liberty. with GCI moment. was with the facility shown million -- million our was and now Pete detail in on in is as quarter very it position quarter. third fast complete its that the solid of those capacity is as third-party end $XXX up credit results, will the starting results $XX and

generated Turning a repurchases look $XXX. price at did million the up last underlying close flow, fantastic of at And repurchase another was over And had with They moving, added This XXX,XXX given business X.X market is to involves of of bigger through million the the discount stock an versus Charter, quarter, discount consider XXX,XXX of $XXX over small to average suspect it's $X.X We attractive. financial briefly. free these of price $XXX. yesterday's look $XXX. They nearly billion a residential how customers yet. very Liberty year. Charter a cash We and results. XX% for Consolidated price grew Broadband shares Liberty I you EBITDA Broadband if XX%. XX%. internet to outstanding

period Year-to-date, in in mobile another XX added against Charter year. most continued added they are the accelerate this of and has million more quarter as XX,XXX in past same the we and subs. up video than Impressively customers. the has Over last lines added months, industry, video XXX,XXX well internet X.X subs. to they Growth

few remotely. in parts call the which under replay. businesses operate to out X.X really it's make the various work amazing $X.X an million operate the shown to quarter, of of average at well repurchased the Charter price billion testament the you over check morning quite share. the and hard they've per years, a and the shares allowed this team to last of circumstances, $XXX LendingTree an have During has the earnings them their investments made for hosted ability sure and effectively Charter

an results as tomorrow financials. will tune that earnings TripAdvisor well. the host for on that, discuss their with And Brian to over call turn Lastly, it its GCI into I'll update morning. Please Liberty to

of its senior above of LLC, Liberty close consolidated quarter-end, million and leverage $XXX After Note outstanding the notes GCI to cash Charter, indemnification in at had which $XXX was Charter and billion subsidiary drawn, held times debentures GCI the securities a equivalents X.X debt, exclude cash $XXX amounts quarter-end, exchangeable Greg. a undrawn obligation maximum was LendingTree. interest billion as Liberty, of compared against and $X.X finance which borrowing X.X credit At shares, in to of loan that capacity due GCI debt quarter. times. Liberty in defined GCI interest XXXX. stock. a This principal its raised XXXX quarter-end, of outstanding a raise, public under is at GCI also GCI, and At preferred Liberty agreement, $X.X including billion Qurate million the quarter-end. in the the includes the facility at were credit obligations billion allowable of $X.X debt outstanding GCI's as $XXX its million borrowing of total unchanged includes value million. along of GCI. at billion, $XX.X total from had existing margin XXXX. the yesterday's equity of proceeds of amended quarter-end, redeem senior all extending facility in amount to interest relatively from notes $X.X and capacity used Broadband this senior with The GCI, and increasing to existing had principal October, on and to maturity billion of LLC The which cash includes at billion, the Liberty credit Thanks, level. OpCo million, which Broadband our due $X.X hand cash GCI borrowings the senior leases $XXX is Liberty leverage XXXX $X.X and fully last tower

GCI XX-Q, results. will interest to likely With during released quarter. we You'll our and Liberty turn operating corporate in related our largely lastly, that it about today Broadband to to were And the I'll the combination. the GCI's other you be expenses and will elevated in Liberty due to later over expenses note talk that, Evite note during quarter, Pete proposed which that sold

debt for data from Brian. the we've resulted has Starting we we customers. Thus financial meet with in as experienced corporate of have healthcare positive time, COVID-XX. network At and all This lower demand connectivity same benefited in any we remain our to bad expense. uptick outcomes costs. Thanks, ensuring increased our far, needs not the committed

We continue the to work have Alaskan to with they educational need. facilities to that students ensure that connectivity the access

the otherwise would With with districts state not to students online. or year, we the to school school income who have X,XXX to across students had bring connectivity low access approximately the start of school worked

XG Moving upgrade. onto X-band the

the on deployment in a September Anchorage and the now commissioned test XG are We effectively results fantastic. Our done. network in is drive

had the and year AT&T, competitor primary cost FCC XX, Care Rural approved our as fast fewer as the June twice funding On June was update. calls. and network rural October based Our dropped rates XX, XXXX for XXXX. XX, XXXX, substantially our ended Health

expect the these grant the commitment premier won fiber connectivity bring statement, $XX our of this Larsen own further Federal On King will Sand We premise amount in these to project income materially within not of of months. towns Alaska. $XX six to and This This greatly in and milestone And our sheet. million October improve provider expected the bring connectivity including locations the XX, approximately accounts be funding it total, continue but all that announced that receivable Akutan, to the million to we technology, a to money. Unalaska, way fiber XXXX. to affect collect by will is the Chignik three and two substantially related will satellite to entire Bay be to to in the cost Bay. to Cove, a is $XX $XXX we highlights will In Unalaska end the telecom liquidity million years the the Point, significant complete to current balance million, from

initiatives, was has data, walk increased third quarter XX%, for Significant OIBDA our through customer by I'll results. continued products, or grow rapidly from dollars nearly and by adjusted million $XX Revenue our million lower demand lower up as adjusted XX%. or healthcare video cost-containment OIBDA $XX and and Now, us cost move revenues. to away like time as and margin a materials, enabled

prepaid the side, We seasonality. modem sequentially. normal customers was Consumer data driving cable subscriber versus quarter, X%, gained XXX despite subscribers growth. consumer the was wireless X,XXX up also the our On revenue up second with

the GCI to school been advertising revenues districts With summer, to is growth have income was Over modems cable to broadcast cable up consumer. our low at revenue down where in the This government, this consumer was movement, you health cable business consumer we've cable The due advertising and quarter. for sales this was growth see moved revenue education the of video. to cost for the of The largely by Absent business, sale would video partially sales X,XXX that movement can growth offset the low revenue. revenue their we're of modems households. year-over-year providing XX%.

million We thus XXXX. CapEx. $XXX Finally, in spent far

project capital effectively the is primary wireless in Anchorage, year X-band XG for Our complete.

we're spend data increased Additionally, projects continuing keep to to up with on our demand.

similar hand the now We year expect this last call back Greg. CapEx our to I'll to total for to year. be over

and the We interest do appreciate will Thank Investor line join thank for like with you, we'd questions. Liberty TripAdvisor. Liberty Liberty We you, Liberty, XX operator, Meetings to hope on your Virtual that, continued open all GCI you XX. Pete. our in November Broadband Brian for and And us and

ahead And ISI. [Operator and from we'll first go with James Evercore now take Ratcliffe our question Instructions]

your industry, the a the mean regulation? cable, can split a Democratic Greg, position Thanks. Thanks turns cable sort on M&A areas the with for what front on of -- the looks and thoughts morning. in if to -- for particularly taking Good us be given question. you it government of could give your out administration in

judgment, very current and Thank Cable good upstream for of James. pretty and pandemic well. number job question, and traffic the supplying connectivity admirably has suspect like that anything an of probably Well, somewhat for in during I my done, increased capacity in growth and the regime the downstream broadband lines is increased you the excellent looks cable. handled

said, times was or a do positive. under do the had of three trend of that is Democrat regulation. well to the two administration, having various equally continuing Charter branches operate I Title been can and legislature the control I which letting very during II That prior and would executive a it branch, all able well branches the note that cable So, what at think

optimistic. remain I So,

the a antitrust that of On couple not is that be do. And but enormous business, scale Charter cable not given much issues still only nature be I would Comcast There seen. substantially enough for most those M&A the the regional or probably small that I M&A of wouldn't to be that there front, large would there Charter. anticipate think remains which are are realistically, to of companies

Thank you.

question Silver We'll B. with Zack from take our Riley. next

taking for Thanks Great. Okay. the question.

cap is with shares hit equity ownership just wouldn't available other the one any are a guys to cap? if first any about on you tax mechanisms discussions the back under the The Charter the And on increasing get there have take on update not, there. selling Charter to where

So, about the want as -- selling to dividend in those with be nature modifications I and forced we stock shares, X%-ish the And we were the divest trade-off company But the to forced are also our if be we Charter discussions hold given XX%-plus terms probably did the think and further how we we would view, emphasize discount, rate, the if tax of which still were of of because I treated which I our sale will the a in that XX% money result. in worst treatment for -- really directors rate interested we the tax productive. I would a shares, cap. don't to effectively while repurchases not not are our be in be and

we So, some resolution, will that will if is while outcome. company resolution the are we the be positive. not note also a am with worst optimistic reach I it unable reach to I that

And sense. That then I if Okay. could. makes more, one

offering. direct Home had optimistic pretty wireless. just you of roll mean, have change home threat as heart fixed competitive around will a wireless whether cable? a continues Just soon on I Greg, plan curious, at a to T-Mo fixed with Verizon its be internet XG aggressive out around and And

partly able mean, job connectivity. that to Is going into this footprint the is well a has great operate they've rollout. think providing very to new I done RDOF. during I of cable No. positive? very don't by its time. I fueled more regions, a competition extend shown Cable think has Cable it's

its and So, I think and happens future footprint its see excellent We'll an has serving cable done customers of potential what job wireless. fixed customers. growing on serving

know to head off as I more but of and I don't far the of that what's to As inside in the that emphasizing. they're efforts XX-gig. can appears And be it backing management, from effective. They're XX and most mid-band seem tell, are think the some Verizon the T-Mo's people

near-term to So, business. as to be massive seen, competitive in threat but a it I don't the our view

very Got much. Thank it. you

Cross TD Our with next question comes from Bentley Securities.

Or did lose Do we have somebody? the question, operator? we

Mr. now have Cross, you line. open an

GCI have folks. in privatization thoughts market, the if Wondering Communications' for question change might general. quick A any it Alaska any the dynamics or you in do on

product is have while be are one. would take of But competitive a market. we able the offerings and expect designed. where would we'd This I'll that they that I I fiber in of our position Ron. have see lead our leave a guess, -- years time. coax some fiber I will combined I plant have network investments. we'll several in it'll impact make will products, confident we're long that bundled We substantial the increase them then suspect, But before and nature of hybrid their quality in It us. probably to won't mean, huge more it on expect the the us close the a networks. have and they'll some to And take a the pretty with in to superiority

some after market in competitive they've increased for the planning Although, are investments. it's closed once and we sets some activity made

the for Thanks candor.

Please question ahead. with Matthew comes Harrigan next Our from Benchmark. go

builds. topology about a do out, really specifically likely do in there's cable increasing industry -- just these Thank U.S. advantage cell work the the as duplicative they like despite pointed unfair on of perspective really how you from just the and small drawing Ajit you with cell on an an that side? a is work mobile economic had And your Verizon, that in something the the with -- that to lead mid-band from wasteful you the point? awareness inferences you. it's the think far vantage pretty I points from they'd toward at Thank being think guy obviously, companies obviously the you definitely out various the everyone small move there's Alaska, of experience cable libertarian part any are else Pai you. some talked U.S. Do to in growth? which mean, Verizon, up almost

Thank part. you. I missed first the

You said -- advantage? who said we had an unfair

Ajit FCC the Pai, Chairman.

Yeah. I didn't Ajit. hear

I customers ways to Okay. And is nice thinks serve people a right believe, the Commissioner Charter's technology. the Look, have can terrible nation, we having it's that more its connect thing. the the well. for benefit that is of goal not FCC that

with excellent how of and partner. think I've of an and said that extend that I a to on have could we think operates interacts we I network XG And service we're it, top lot capabilities. How looking good excellent be an a XG network.

As partner you've seen some capabilities network of to And relationship. spectrum. spectrum, by you our note, through we Verizon's CBRS purchases us already are of extend look the MVNO

can hand I that XG know would I they our Alaska. in So, pretty if together glove. you Ron, think, in well experience work anything based on to add don't

other Well, And we've XG a of it as with the backhaul network. that that backhaul wireless was think folks as HFC to game. a the much plant along well and our us up was we've game, better doing all we're said going reason got XG is part here much I a networks that jump be on gives

XG our us can in the the long kind cells. small competitive the we're drive either of XXX-foot ability industry XG or only cable's in superior platform the you last cable So, a backhaul And drive competitors to need have because really to run, confident have wireless. for that come

Thanks, Greg. Thanks, Ron.

Thank you.

Phillips Capital. comes question from Ben last Savoie with Our

the $XXX some around million wanted due I X.XX% the I'm day. Hi. to converts to just convertible color Quick story, new the so notes, kind question. Good of get XXXX.

more structure. that on little a what and transaction cap all Just for Thank the you. that color is what means

convertible I'll let about Ben the Oren talk note.

to with the XXXX. call I notes, in date first is convertible think respect

And determine to that all the so, the refinance continue the as we and take best at price Charter now watch to ability a and date, windows. those opportunistically look between share

We're happy to offline take more it that. on need details if you

Yeah. I'd appreciate that.

you. Thank

that one operator? think question. Is I more there's correct,

with from take our question TLF Bunyaner We'll Michael last Yes. Capital.

including and excellent for Good results. morning you me. congratulations on Thank

you. Thank

average economics related have changing us quarter to this which network. question XX% walk over in servicing of a the an I individuals of the network economics you would through essentially on clearly ongoing Could past an I think just self-installed, believe is a Charter's what basis? does this be savings I on the of of managing unit mean because terms would that that a basis, per customer. significant

great Yeah. question. It's a

work look you we a simpler capacity is XX% making something pandemic. And coming noted, if back us their customers by the making as years great and easily. it over think more that of couple to self-install that the recent managing better driven see process were to I quarter, were, two XX%, I that it's you Charter the ago, and improving and The home. also to things. is it during the that people them on has done somewhat reality probably necessarily That's and most sub simpler for think installers a for want like XX%. -- team One, cable testament probably self-install. we don't

almost and the the self-install more So did. That Charter competition the things truck were and more probably also like didn't of convenient and or been really not have rolls have ease-of-use same by has pandemic, of somewhat that any installs. case and driven become doing They capacities impacted self-reliant. digital many did more and born they more things necessity some that in the shutdown fact nor our have

different. reduction COVID. ability reduced because not I'm acceleration once it's an cost an of cost impact will That all But gain self-install. network an I'm the to has as sure the to of really substantially a really have of sure us market and both growth our think install. installed, So, much of the not that for in management the in if time been share during on that that is cost I contributed they're ongoing

market do If about Charter at as of just share penetration. U.S., having could think as the just of don't We of What kind and/or be from I service, what because homes you the a running the to essentially years call would terms the you quality the -- follow-up the do goal, now? were of centers think time install now five and of the quality may of reasonable know, we well over three passed. penetration in in reach I XX% to ultimately what

like X% grow, during months. to I'm to high that X% increase bullish accelerate exit or How not sure -- of added set take an appreciate X% -- because there Tom fact same timeframe market rate, during didn't But the XX he that still during up is that audacious count X% as to that big Rutledge management that share. seen penetration, it I've believe But And you've or has have heard probably that get the has gain. added last gone I'm -- the we we slows continue XX I'm probably BHAG, potential customer that's I know a to to cable hopefully But going think a share that and months. going because that. hairy not share know. nearly I forecast. our shows the goal, is don't XX, that last I the months if that we'll obviously that's in the I advantage. but that XX lot long sure has two-third could but have for growth ability to have pandemic, the point ultimately Charter how something it's to goal year, how last almost that on do the at this during in the its

Tom well. is as think I

And everyone. you very much. thank Again, very, congratulations to

you. Thank

next done. quarter, I look your operator, family, not interest we Thank and for you that, either the you in with Liberty sooner. we're if again continued So, to all with forward think speaking

your concludes participation. today's Thank call. for you This

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