Liberty Broadband Corp Q2 2024 earnings call highlights

• Consolidated Cash and Cash Equivalents: $73 million, including $47 million at GCI.
• Charter Investment Value: $16.2 billion as of August 1.
• Total Principal Amount of Debt: $3.7 billion, including GCI debt.
• GCI Revenue: Increased by $1 million over the prior year.
• Adjusted OIBDA: Decreased by $6 million due to higher operating costs and increased SG&A expenses.
• GCI Leverage: 3.2 times, with a 6.5 times maximum leverage covenant threshold.
• Undrawn Capacity under GCI Revolver: $347 million net of letters of credit.

Positive Points

• Liberty Broadband Corp issued $860 million of Charter exchangeables, using proceeds to repay $540 million under its Charter Margin Loan and repurchase $300 million of existing exchangeables, leading to expected substantial interest savings.
• The company extended its margin loan maturity to 2027, spreading 2026 debt maturities through 2028, which enhances financial flexibility.
• Charter, a key investment for Liberty Broadband Corp, reported solid EBITDA growth of 2.6% and a 100 basis point margin improvement, demonstrating effective expense management.
• Charter’s mobile segment achieved profitability for the first time, marking an important milestone and reinforcing the value of its mobile offering.
• Liberty Broadband Corp expects continued EBITDA growth in the latter half of the year, supported by cost initiatives and strong mobile performance by Charter.

Negative Points

• Charter reported a net subscriber loss of 149,000 broadband subs, primarily due to the expiration of the ACP program, indicating challenges in subscriber retention.
• GCI, a subsidiary of Liberty Broadband Corp (NASDAQ:LBRDA), experienced a decrease in adjusted OIBDA by $6 million due to higher operating costs and increased SG&A expenses.
• GCI saw a decline in cable modem subscribers by 2,500, largely driven by the expiration of the ACP program, reflecting challenges in maintaining subscriber numbers.
• Liberty TripAdvisor, another investment, faced continued pressure on Hotel Meta in brand TripAdvisor due to SEO and SEM structural challenges, along with weaker demand and increased competition.
• The potential issues around Liberty TripAdvisor are considered a cloud on TripAdvisor’s stock, indicating investor concerns about the holding structure.

Yahoo