Liberty Broadband (LBRDA) Q4 2024 earnings summary

Executive summary

• Announced definitive agreement for acquisition by Charter, with Liberty Broadband shareholders to receive 0.236 Charter shares per Liberty Broadband share; closing expected by June 30, 2027, pending mutual agreement for earlier close.

• GCI to be spun off to Liberty Broadband shareholders prior to transaction close, with spin-off expected late Q2 or early Q3 2024 or summer 2025.

• GCI achieved record revenue in 2024, surpassing $1 billion, with operating income of $144 million and Adjusted OIBDA of $362 million, driven by strong data revenue in rural Alaska.

• Fair value of Charter investment was $15.9 billion as of February 1st and $15.5 billion as of December 31, 2024; $205 million in proceeds received from Charter share sales in Q4 2024–Q1 2025.

Financial highlights

• GCI revenue increased 5% in Q4 and 4% for the full year to $1.0 billion, with business data revenue benefiting from upgrades in schools and healthcare.

• Adjusted OIBDA decreased 4% in Q4 and was flat or up for the full year, offset by higher SG&A from labor costs.

• GCI distributed $150 million in dividends to Liberty Broadband in 2024.

• Net capital expenditures for GCI in 2024 were $193 million, mainly for rural Alaska network improvements, slightly below expectations due to rural fiber project delays.

• Net earnings attributable to shareholders were $869 million in 2024, up from $688 million in 2023; basic and diluted EPS for 2024 were $6.08.

Outlook and guidance

• GCI's net capital expenditures for 2025 expected to be approximately $250 million, focused on rural Alaska network expansion and Alaska Plan build-out requirements.

• GCI spin-off anticipated late Q2 or early Q3 2024, or summer 2025, with separate earnings process for the new entity.