Liberty Broadband (LBRDA) Q3 2024 earnings summary

Executive summary

• Liberty Broadband and Charter are in ongoing discussions for a proposed all-stock transaction to simplify the dual corporate structure and enhance trading liquidity, with updates only if definitive terms are reached.

• Liberty Broadband's primary assets are GCI Holdings and a significant equity stake in Charter, with the Charter investment valued at $14.8 billion as of September 30, 2024.

• GCI revenue increased 9% year-over-year to $262 million in Q3 2024, with operating income up 40% to $42 million and Adjusted OIBDA up 12% to $100 million.

• Net earnings attributable to shareholders were $142 million for Q3 2024, down from $162 million in Q3 2023.

• Charter reported Q3 2024 revenue growth, continued investment in network evolution, and rural expansion.

Financial highlights

• Q3 2024 consolidated revenue was $262 million, up from $240 million in Q3 2023.

• Adjusted OIBDA for Q3 2024 was $100 million, up from $89 million in Q3 2023.

• Net earnings for Q3 2024 were $142 million; diluted EPS was $0.99 compared to $1.10 in Q3 2023.

• Cash and cash equivalents stood at $168 million at quarter end.

• Charter's Q3 2024 revenue was $13.8 billion, with Adjusted OIBDA of $5.6 billion.

Outlook and guidance

• Charter expects continued one-time impacts from the end of the Affordable Connectivity Program, affecting customer net gains and revenue in Q4 2024.

• GCI's full-year 2024 net capital expenditures are expected to be approximately $200 million, focused on rural Alaska network expansion.

• Liberty Broadband projects primary liquidity from Charter share repurchases and expects to cover corporate expenses with available cash and sources.

• Planned uses of cash for the remainder of 2024 include share buybacks, capital expenditures, interest, and preferred dividends.

• Updates on the proposed Charter transaction will be provided only if and when definitive terms are agreed.