Liberty Broadband Corp Q1 FY2024 earnings call

• Liberty Broadband remains under 26% fully diluted ownership cap due to Charter's annual compensation grants, expects to resume sales into Charter's buyback summer, greater focus on debt reduction near term.
• Charter: Internet had 72,000 subscriber net loss, churn low, EBITDA grew 2.8% in Q1; mobile has 8 million+ total lines, revenue up 38%, Spectrum One performing well, EBITDA improving; ACP not renewed, Charter offering options to retain ACP customers; leverage to move toward midpoint of 4-4.5 target.
• L-TRIP: Filed 13D outlining ceased transaction discussions, continue strategic alternatives with TripAdvisor Special Committee.
• TripAdvisor: Good start to Q1 but muted guidance; Hotel Meta performance driven by pricing strength offset by lower click volumes; AI tool scaling well, Viator saw record app downloads, conversion growth, app bookings.

Liberty Broadband: At quarter end, consolidated cash and cash equivalents were $108 million, charter investment value was $12.3 billion based on May 1 shares and Charter's close, total debt was $3.8 billion. GCI: Revenue and adjusted OIBDA flat in Q1; data revenue growth on business and consumer offset by video revenue decline; over last year, GCI consumers added 3,500 wireless subs and saw small decline in cable modem customers; paid down revolver by $60 million, leverage 2.8x at quarter end, subsequent to quarter end distributed $150 million to Liberty Broadband.

• Charter expects leverage will move toward midpoint of 4 to 4.5 leverage target while maintaining buyback this year.
• L-TRIP continues to discuss strategic alternatives with TripAdvisor Special Committee, no further comment unless definitive documents executed or discussions terminate.

• Industry competition affecting Charter's Internet subscriber growth.
• ACP expiration and its impact on Charter's customer retention and revenue.
• Uncertainty around strategic alternatives for L-TRIP and TripAdvisor.

Q: Ben Swinburne asked about ACP extension hope and Charter's deleveraging vs buyback.

A: Greg Maffei said only heard a little about ACP extension, hope exists but procedural issues; Charter expects leverage to move toward midpoint of 4-4.5 target.

Q: Jeff Wlodarczak asked on Charter's EBITDA valuation and ACP impact.

A: Greg Maffei said Charter being thoughtful on footprint expansion for free cash flow; ACP programs to mitigate loss, no big ARPU hit anticipated.

Q: Barton Crockett asked on mobile growth and Liberty Broadband rolling up cable companies.

A: Greg Maffei said mobile is a bright spot but Charter is aggressive; door not closed on rolling up other cable companies but better to pursue with or through Charter generally.

Q: Michael Rollins asked on Liberty Broadband's NAV discount.

A: Greg Maffei said factors include fewer peers, less arbitrage funds; primary method is share repurchase to take advantage of discount, ultimate resolution may be through transactions like spins/combines.

Q: Jeffrey Bronchick asked on L-TRIP negotiations.

A: Greg Maffei said had productive discussions with TripAdvisor Special Committee, no tension about premium vs Trip, can't comment further than that.