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Liberty Broadband Corporation (LBRDK) Q4 2022 Earnings Call Transcript

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Liberty Broadband Corporation (NASDAQ:LBRDK) Q4 2022 Earnings Conference Call February 17, 2023 11:00 AM ET

Company Participants

Shane Kleinstein - VP, IR

Greg Maffei - President and Chief Executive Officer

Brian Wendling - Chief Accounting & Principal Financial Officer

Ben Oren - Executive Vice President & Treasurer-Liberty Media Corporation

Ron Duncan - CEO, GCI

Pete Pounds - CFO, GCI

Conference Call Participants

James Ratcliffe - Evercore ISI

Doug Mitchelson - Credit Suisse

Ben Swinburne - Morgan Stanley

Barton Crockett - Rosenblatt Securities

Michael Rollins - Citi

Operator

Hello and invited to nan Liberty Broadband 2022 Yearend Earnings Call. During nan presentation, each participants will beryllium successful a listen-only mode. Afterwards, we will behaviour a question-and-answer session. [Operator Instructions] As a reminder, this convention is being recorded, February 17.

I would now for illustration to move nan telephone complete to Shane Kleinstein, Vice President, Investor Relations. Please spell ahead, Shane.

Shane Kleinstein

Good morning. Before we begin, we'd for illustration to punctual everyone that this telephone includes definite forward-looking statements wrong nan meaning of nan Private Securities Litigation Reform Act of 1995. Actual events aliases results could disagree materially owed to a number of risks and uncertainties, including those mentioned successful astir caller Forms 10-K revenge by Liberty Broadband and Liberty TripAdvisor pinch nan SEC.

These forward-looking statements speak only arsenic of nan day of this call, and Liberty Broadband and Liberty TripAdvisor expressly disclaim immoderate responsibility aliases undertaking to disseminate immoderate updates aliases revisions to immoderate forward-looking statements contained herein, to bespeak immoderate alteration successful Liberty Broadband aliases Liberty TripAdvisor's expectations pinch respect thereto aliases immoderate alteration successful events, conditions aliases circumstances connected which immoderate specified connection is based.

On today's call, we will talk definite non-GAAP financial measures for Liberty Broadband, including adjusted OIBDA. Information regarding nan comparable GAAP metrics, on pinch required definitions and reconciliations, including preliminary statement and Schedules 1 and 2 tin beryllium recovered successful nan net property merchandise issued today, arsenic good arsenic net releases for anterior periods, which are disposable connected Liberty Broadband's website.

Now, I'd for illustration to present Greg Maffei, Liberty's President and CEO.

Greg Maffei

Good morning. Thank you, Shane. Today speaking connected nan call, we will person Liberty Broadband's; Chief Accounting and Principal Financial Officer, Brian Wendling; Ron Duncan, CEO of GCI; and Pete Pounds, CFO of GCI, will besides beryllium disposable to reply questions. Also during Q&A, we will reply questions -- we'll beryllium disposable to answers questions related to Liberty TripAdvisor.

Let maine commencement pinch Liberty Broadband. As we mentioned successful nan past telephone successful September, we began retaining astir 50% of nan rate travel from nan charter income to reside our near-term liabilities. We person astir $1.5 cardinal related to nan charter exchangeables that is owed by October based connected existent prices.

Therefore, from astir nan first of November to nan extremity of January, we repurchased -- we received $291 cardinal of proceeds from Charter income and spent only $177 cardinal connected Liberty Broadband repurchases. The look done value to charter connected those repurchases was astir $272 versus nan existent charter of conscionable nether $400 [ph] this year. There's a flimsy mismatch connected nan timing of nan proceeds erstwhile they travel and erstwhile we walk them, and that whitethorn relationship for that being somewhat much than 50%.

Going forward, we do scheme to proceed to use 50% of proceeds from nan Charter stock income towards Liberty Broadband purchases. We do besides expect full proceeds from Charter to beryllium little this twelvemonth successful 2023. Similar to past year, we are nether nan 26% fully-load ownership headdress early successful nan year, driven by Charter's yearly compensation grants.

But arsenic nan twelvemonth goes forward, we do expect lighter buybacks astatine Charter compared to 2022 owed to nan investments they are making astatine nan company, and antecedently heard from them, and I will talk much a bit. We will revisit superior allocation later successful nan twelvemonth aft our indebtedness maturities are addressed.

So let's look astatine Charter. We had little broadband portion maturation successful 2022. Some of this is simply a COVID propulsion forward, nary doubt. Some of it was little move situation pinch less income opportunities for a stock taker for illustration ourselves, less chances to get astatine nan customer and accrued title from caller entrants, including fixed wireless. Though we would statement that successful galore cases, fixed wireless has been a marketplace expander not a stock taker, and we do not position them complete nan agelong word arsenic a competitor though we will surely consciousness them successful nan short term.

Nonetheless, Charter posted beardown operating results. In nan 4th quarter, 92,000 residential broadband units were added, and we had immoderate sequential betterment complete nan anterior 2 quarters. Spectrum One, our caller pricing merchandise is helping thrust momentum successful mobile, and we recorded a grounds 615,000 mobile nett adds successful nan 4th quarter. It has been a immense occurrence compared to different mobile operators. And I would note, cablegram stock of mobile nett adds successful nan 3rd 4th -- successful nan 4th quarter, rather, was 35% and Charter's was 22% of each world nett adds. So Charter was astir a 4th of each of nan mobile nett adds, which is simply a stunning number.

We judge this demonstrates nan worth of costs savings to customers done bundling and seamless connectivity. As Chris Winfrey outlined successful December, Charter is undertaking a bid of initiatives to accelerate maturation and onslaught ample connectivity opportunities. That includes accelerating our web improvement scheme done precocious divided differentiated converged merchandise offerings for illustration Spectrum 1 and a agrarian build, which we deliberation has charismatic returns pinch penetration measurement supra our expectations truthful acold successful first builds, and we are targeting mid to precocious teens IRRs.

By 2026, we do expect CapEx arsenic a percent of revenue, excluding statement extensions to beryllium beneath 22% and declined further, but successful nan interim, these investments will summation that CapEx arsenic a percent of revenue. Liberty present person had a agelong affirmative narration moving pinch Chris Winfrey and are excited by his strategy, that he's articulated some to nan committee and nan marketplace moreover pinch nan investments successful nan business, nan summation successful nan banal price, Charter and Liberty Broadband some connection charismatic free rate travel output successful a maturation vehicle.

I would statement it's moreover much compelling comparative worth of Liberty Broadband. The Charter free rate travel output is astir 9.1% -- 9.1% contempt their investments and nan Liberty Broadband look done '22 free rate travel output was 12.9%.

Let maine move now to TripAdvisor. The recreation betterment continued successful nan 4th quarter, exceeding management's expectations. Full twelvemonth Trip gross was 96% of nan 2019 number and nan 4th fourth really reached 106% of nan 2019 number. The edifice exemplary [ph] betterment accelerated passim nan year.

In nan US successful 2022, edifice meta scope parity pinch 2019 pinch spot successful some collection, pricing and volumes, and we are driving much gross from paid postulation and little from free revenue, which is evidently hitting our margins to a degree. I'm going to talk much astir that successful a second.

Viator [ph] was up 115% successful nan 4th fourth complete nan anterior twelvemonth that would trim losses contempt nan accrued trading spend. We proceed to spot benefits successful improved conversion and repetition customers, and we are very assured successful nan maturation of this knowledgeable segment.

Management is focused connected nan semipermanent strategical opportunities and utilizing merchandise enhancements to thrust growth. I would statement they expect successful 2022 to support level margins done disciplined costs guidance and allocation contempt accrued finance successful our maturation segments, including experiences.

And pinch that, I'll move it complete to Brian to talk nan financials.

Brian Wendling

Thank you, Greg, and bully morning, everybody. At 4th end, Liberty Broadband had consolidated rate and rate equivalents of $375 million, which includes $85 cardinal of rate straight astatine GCI. The worth of our charter finance based connected our shares held arsenic of February 01 and Charter stock value astatine yesterday's adjacent was $18.9 billion. At 4th end, Liberty Broadband had a full main magnitude of indebtedness of $3.9 billion. Note that this excludes nan indemnification responsibility and preferred stock.

I'll reiterate Greg's commentary that we expect reduced proceeds from Charter stock income to Charter successful nan early portion of 2023. However, for nan shares we do sell, we are updating our yearly taxation complaint guidance for '23 to 7% to 13% compared to our erstwhile guidance of 7% to 9%.

The precocious extremity of nan updated scope assumes nan DRD, dividend received deduction, does not use to Charter stock income for nan booked minimum taxation nether nan Inflation Reduction Act. We are accruing for a higher taxation complaint successful '23, while further IRA guidance from nan IRS and nan Treasury is pending. So we judge explanation is imaginable this year.

I'd statement that immoderate book minimum taxation paid for '23 will transportation guardant to offset regular income taxation successful early years to nan grade regular income taxation exceeds nan BMC, making this much of a timing effect for us. We are not providing circumstantial taxation guidance beyond '23 arsenic location are galore variables extracurricular our control, including cadence and pricing of Charter stock repurchases and explanation astir definite aspects of nan Inflation Reduction Act.

Looking astatine GCI; 2022 is simply a awesome twelvemonth for nan institution pinch grounds adjusted OIBDA, contempt headwinds from nan roaming statement that impacted year-over-year comparisons done nan 3rd quarter. GCI generated coagulated free rate travel and distributed $110 cardinal of dividends to Liberty Broadband during nan year. GCI besides paid an further $40 cardinal successful dividends to Liberty Broadband year-to-date truthful acold successful '23, and we expect further dividends will beryllium paid this year.

For nan afloat year, gross was level and adjusted OIBDA grew 1% to $358 million, nan company's highest ever adjusted OIBDA, driven chiefly by information demand, which drove some subscriber and ARPU growth. In nan 4th quarter, gross was up 2%, and adjusted OIBDA was up 14%. This was besides driven by beardown information maturation arsenic good arsenic lapping nan effect of nan roaming statement that we entered into successful 2021, which is affirmative agelong word that created antagonistic comparisons from Q4 '21 done nan 3rd 4th of this year.

Operationally, GCI added 5,300 user cablegram modem subscribers and 5,900 user wireless customers successful 2022. The web value continues to amended pinch maturation successful nan 5G wireless network, accrued outer capacity and nan completion of nan fibre build to Dutch Harbor. The spot of nan operating results led to continued deleverage. For nan afloat year, GCI's nett indebtedness declined $57 million. Leverage arsenic defined successful nan in installments statement was 2.8 times astatine year-end and GCI has $397 cardinal undrawn capacity connected its revolver.

In 2022, GCI spent $156 cardinal connected nett superior expenditures. This is nett of proceeds received from national and authorities assistance funding. CapEx walk was related chiefly to improvements to nan wireless hybrid fibre networks and nan Dutch Harbor fibre project.

Net CapEx for '23, we expect to beryllium astir $185 million, which should beryllium elevated owed to nan further high-returning investments successful mediate and past mile connectivity pinch continued web description successful Rural Alaska, including nan [indiscernible] AU-Aleutians fibre project. We're taking a proactive attack successful agrarian connectivity projects, which we position arsenic captious to securing nan basal authorities funding.

And pinch that, I'll move nan telephone backmost complete to Greg.

Greg Maffei

Thank you, Brian. To nan listening audience, we admit your continued liking successful Liberty Broadband and Liberty TripAdvisor. And pinch that, operator, I'd for illustration to unfastened nan statement for questions.

Question-and-Answer Session

Operator

[Operator Instructions] Our first mobility coming is coming from James Ratcliffe from Evercore ISI. Your statement is now live.

James Ratcliffe

Greg, two, if I could. First of all, regarding nan trading to nan Charter buyback, tin you -- you're creating rate astatine nan moment, but does settling nan Delaware litigation springiness you immoderate further elasticity astir whether that 26.5% aliases 26% headdress remains successful spot complete clip and would you beryllium unfastened to raising it if Charter committee useful to?

And secondly, you mentioned nan exchangeable that are putable successful October. Can you talk astir nan factors we should see -- considering successful position of really to refi those aliases salary them down, assuming that they are successful truth put? Thanks.

Greg Maffei

Thanks, James. I'll grip nan first one, and I'll manus it to our Treasurer, Ben Oren, to springiness you immoderate colour connected nan second. So connected nan first, I deliberation you're right. You tin statement that nan litigation colony does unfastened up much opportunities for america to person fruitful discussions pinch Charter, and we've had immoderate preliminary ideas astir that.

We would beryllium unfastened to raising nan cap. And we do deliberation that galore shareholders, different than Liberty would is affirmative because fixed nan accrued investments successful by Charter successful 2023, galore productive high-returning assets, nonetheless, they are investing much successful nan business and little successful buybacks, nan buyback will spell down rather a bit, connected a comparative basis, and we would beryllium capable to ameliorate that aliases little than that by taking our 26% disconnected nan table, nan 26% that goes to us. So I do deliberation that is thing that could get done, and we are optimistic it mightiness get done successful 2023, thing we'd for illustration to do. Ben?

Ben Oren

With respect to nan charter exchangeable, you're right, we are accruing a meaningful magnitude of cash. I deliberation what we would opportunity astatine this constituent is that we person nan action to reside those pinch immoderate operation of rate connected manus accessing nan separator indebtedness that we person related to Charter shares and perchance a caller exchangeable pinch astir apt a flimsy penchant betwixt separator indebtedness and a caller Charter exchangeable, we'd astir apt for illustration Charter exchangeable to support optimal liquidity.

Operator

Our adjacent mobility is coming from Doug Mitchelson from Credit Suisse. Your statement is now live.

Doug Mitchelson

I conscionable was funny -- not rather judge nan correct measurement to inquire this, but look, I think, nan Street is looking for 2% EBITDA maturation this twelvemonth for Charter and Charters had precocious single-digit EBITDA maturation pinch levered equity returns, and that was difficult to beat.

So I was conscionable funny your outlook for Charter arsenic an finance astatine this point. It's absorbing that they're investing much versus buying backmost banal arsenic we look done buyback for you, which is comparatively riskless versus mid-to-high returns connected investing successful CapEx.

It's an absorbing move from a Liberty Broadband position versus a semipermanent Charter shareholders. So I conjecture -- my mobility for you is, ultimately, are you excited astir Charter arsenic an finance arsenic you were a fewer years ago? And what's nan algorithm for Liberty Broadband successful position of returns from Charter looking forward?

Greg Maffei

Thank you, Doug. A mates of points, I think. First, look, erstwhile we were doing each those 2 cardinal upgrades connected nan existing -- additions connected nan existing network, pinch comparatively small capital; yes, that's a reservoir charismatic business, okay? We'll stipulate. We'll each agree.

The incremental superior that we person to walk is still a very charismatic business and thing we endorsed arsenic Liberty astatine nan committee level, and we're enthused astir what they're doing. We deliberation nan investments are making connected precocious divided really do springiness america a batch of runway connected nan existing web and nan agrarian build-outs are rather charismatic connected a return basis. And much charismatic these group pinch nan group of broadband investments made by authorities and section governments arsenic good arsenic nan national authorities than nan RDOF bidding process, which, successful galore cases, led group to bid up higher and past not really fulfil, but nan full marketplace sewage pushed up, I think, these broadband initiatives are going to beryllium very charismatic IRRs. So we're enthused astir them.

Holding retired comparing that to nan buyback complete nan agelong word is interesting, but nan buyback opportunity astir apt isn't going to spell away. And yes, we are making these investments, but we deliberation they're worthwhile for nan agelong haul, and we are charismatic and connected an violative and protect ground for Charter.

So I stay -- Liberty remains rather enthused astir Charter's prospects, and nan truth that we're buying backmost and person continued to bargain backmost each nan measurement done is immoderate denotation of that, though we do person these issues astir attacking our ain exchangeable, which is efficaciously deciding really overmuch we're going to return connected a existent ground aliases nan early ground fixed we're going to rumor immoderate benignant of different apt equity.

Doug Mitchelson

Do you spot Charter returning to mid-single-digit aliases precocious single-digit EBITDA maturation successful nan not excessively distant future?

Greg Maffei

Yes.

Operator

Our adjacent mobility coming is coming from Ben Swinburne from Morgan Stanley.

Ben Swinburne

I conjecture pursuing up a small spot connected Doug's mobility astir Charter. You guys are evidently favorable astir financial leverage. That's evidently been John's attack for galore years. Rates are higher than they were, maturation is slower, superior strength is up. Is location a -- I'm judge there's immoderate scenario, but is location a script you spot an optimal leverage level for Charter little coming than wherever they're moving it? Do you deliberation that really it should beryllium higher fixed nan banal has travel disconnected rather a spot complete nan past 12 months?

And past I was benignant of a somewhat unrelated topic, though tied to Charter. I was conscionable funny if you guys are reasoning astir immoderate implications from Gigi [ph] soon becoming nan FCC Chairperson, which is thing that seemingly whitethorn hap successful short order. Obviously, she's sewage a batch of beardown views connected nan broadband marketplace successful cable. But I'd beryllium funny if you person immoderate position connected things you're concerned astir aliases watching connected that front?

Greg Maffei

Thanks, Ben. Look, connected nan leverage front, I deliberation Charter tin grip it mightiness beryllium much leverage, but nan nationalist markets today, equity markets, successful particular, are not enthused astir much leverage, truthful there's nary logic to push that up. We're not successful an situation wherever group are buying that.

You're correct to statement astir accrued cost, but if you look astatine nan stack of indebtedness that Charter has, it's really only very little, which is floating aliases getting refinanced successful immoderate period. So nan nett summation successful our existent borrowing costs is comparatively de minimis, fixed really overmuch is existing versus really overmuch is getting rolled aliases floating.

I deliberation you could make a lawsuit for higher, arsenic I said, I deliberation it's harder to make a lawsuit for little different than nan superior markets are fearful. I don't deliberation -- I deliberation these businesses are very stable. We person a very blase finance program, and I'm not worried astir nan leverage. And you're correct to statement nan accrued -- nan situation pinch accrued costs and accrued investment, but I would statement nan banal is half of what it was. So you activity astatine each that it's still beautiful charismatic successful my view.

Ben Oren

And connected nan 2nd constituent astir regulatory, that has been an existing consequence maturation ever coming consequence successful nan cablegram business since nan early '90s, right, but possibly earlier John [ph] he could show maine earlier, but I would say, certainly, from nan clip I've spent astir it, nan existent its cablegram regulatory has ever been a risk. We went done a comparatively activistic regulatory situation during nan Obama management pinch Title II regularisation that we navigated successfully.

I deliberation it's improbable that we would spot thing much fierce than that, but that is ever of nan things that we are perpetually vigilant astir and I do deliberation location are galore voices [ph] successful Washington, which are little fierce and much extending nan free marketplace attractiveness and what a awesome occupation that broadband manufacture had done done COVID and building retired now. So while it's surely a risk, I don't look astatine it arsenic an accrued consequence that we've ever seen complete a play of time.

Ben Swinburne

Yes. And certainly, nan CapEx investments successful agrarian should thief and fixed wireless still mightiness beryllium an existent metallic lining astatine slightest successful this context?

Greg Maffei

I deliberation that -- those are some bully comments, Ben.

Operator

Next mobility is coming from Barton Crockett from Rosenblatt Securities.

Barton Crockett

Okay. Yes, I'd for illustration to inquire 2 questions, if I could. One is conscionable connected GCI, we are looking astatine them. They look to person immoderate volatility successful wireless subs aft nan year. I deliberation it was down this quarter. Can you conscionable explicate what's going connected pinch nan wireless subscriber numbers there?

Greg Maffei

Well, we could return a shot, but I'll first connection it up to our Alaskan counterparts. Ron, do you want to reply that aliases Pete?

Ron Duncan

I deliberation what you're seeing connected postpaid wireless subs, we've been up for 11 consecutive quarters. There's volatility successful nan prepaid business, some owed to seasonality. There's a very beardown surge successful nan summertime and nan autumn months pinch prepaid income to nan sportfishing manufacture successful a number of our communities and past those autumn disconnected and past this year, location was an wide alteration successful prepaid owed to immoderate problems we're having pinch nan platform.

We're moving connected improving nan level correct now to make it much competitive, which will stabilize that, but nan halfway measurement of our wireless occurrence is really connected nan postpaid side, and that has been uniformly up for nan past almost 3 years, and we judge proceed -- will proceed to grow. We've sewage acold and distant nan champion 5G network, nan champion web successful Alaska. If you look astatine velocity trial comparisons, we ever classed number 1 often by a facet of 2 aliases three, and that positive nan bundling pinch nan high-speed information products is helping nan postpaid sales.

Barton Crockett

Do you guys -- tin you break down nan postpaid and prepaid mix? .

Ron Duncan

I don't cognize that we people those numbers. Do we, Pete?

Pete Pounds

No.

Barton Crockett

Okay. All right. Then switching to a different topic. Greg, conscionable -- I'm noticing pinch immoderate liking news travel astir nan large RSN analyzable astatine Diamond, which is simply a large root of programming costs for nan cablegram manufacture and they've acknowledged that they've missed an liking costs and their speculation that they're moving towards immoderate type of bankruptcy and this presents, I think, an opportunity for this to beryllium we thought we considered and I was -- you guys -- and you person a very absorbing positioning connected some sides arsenic a supplier of these networks done Charter and arsenic proprietor of sports squad done nan Braves connected a different equity call, but possibly you tin travel successful present a small bit.

I was conscionable wondering if you could talk astir what you deliberation is apt to play out? Does this coming an opportunity for a simplification successful programming costs of nan cablegram companies? Is location immoderate consequence to nan revenues for sports teams for illustration nan Braves?

Greg Maffei

Well, Barton, bully question. It's a multiheaded hydro there. I deliberation nan Diamond business is rather complicated. And I deliberation -- you whitethorn recall, we've been very intimately aligned pinch MLP and looking astatine it successful ways to effort and make it nan champion business for shot arsenic good arsenic an charismatic investment.

But first, putting connected nan Charter had, I deliberation complete time, you will spot reductions successful RSN costs. That's conscionable you'll spot little carriage and reductions. That's conscionable inevitable. Charter, I don't deliberation it's public, but Charter tin continually renew that. And renews connected charismatic position for Charter arsenic champion it can, but I fishy those costs will proceed to spell down connected a comparative basis.

On nan cases of nan -- looking from nan Braves side, they person much than a twelve RSNs. My knowing from everything we cognize is for a batch of logical reasons, including nan truth that we person nan largest broadband territory, a very engaged guidelines and a comparatively modest, surely compared to nan Dodgers, a comparatively humble RSN interest aliases payments from Diamond, nan Braves are a very attractive, we judge their astir profitable RSN.

So moreover successful nan arena has been speculated that location is simply a filing by Diamond, we deliberation they are improbable not to judge aliases will not cull arsenic our statement successful bankruptcy because it's a very charismatic RSN for them. What will hap complete nan agelong term, I fishy location will beryllium a slim-down type of thing that is owned by a Diamond aliases a Diamond successor that takes their profitable RSNs possibly renegotiate immoderate things, but it astir apt doesn't return each of them would beryllium my speculation.

Barton Crockett

You mentioned MLB, you're bringing aligned. Do you deliberation there's an opportunity for nan leagues to return ownership of nan RSNs aliases nan authorities and do thing other maybe?

Greg Maffei

I deliberation location is immoderate opportunity for nan leagues to look at, but we'll see, arsenic I said, it's complicated. Speculating -- honestly, it's conscionable speculation much than that, Barton.

Barton Crockett

Okay. Well, I admit it. Thank you for each that, Greg.

Operator

Our last mobility coming is coming from Michael Rollins from Citi.

Michael Rollins

Greg, you mentioned earlier successful nan telephone that you would revisit superior allocation later successful nan twelvemonth aft you get done nan upcoming maturity. Can you springiness america a preview of your information group for Liberty Broadband?

And past secondly, conscionable funny if you could stock really meaningful ACP has been for some GCI and Charter, if there's immoderate quantification of that and your anticipation for really this programme will germinate to perchance seen nan programme and backing fixed nan characteristics of it is astir a defined magnitude astatine nan moment.

Greg Maffei

I deliberation connected nan first point, erstwhile we get done our financing, we'll look astatine nan -- pinch nan charter banal prices, what nan Liberty Broadband banal value is, if there's nan discount, what our agelong term, if there's much clarity astir nan taxes -- each of those factors will weigh, but it's rather imaginable and astir apt much apt that we'll beryllium backmost to buying -- utilizing 100% of free rate flow.

Free rate travel present defined for Liberty Broadband is fundamentally what we get repurchased from Charter, that we'll beryllium utilizing that to bargain backmost stock. I deliberation that's nan astir apt case. On nan mobility of ACP, clearly, we saw that arsenic an charismatic programme during COVID that thief 1 of nan reasons why and I'll fto you remark connected it, Ron arsenic well.

One of nan reasons why we've seen specified successful declines successful debt, a bad debt. It's 1 of nan reasons why we spot -- I deliberation we saw specified maturation during COVID of nan broadband units, our broadband adds, nett adds. So I deliberation it's been an charismatic program. We'll spot what nan backing is. They're keeping way of each nan backing successful D.C. There are a batch of them going on. We'll spot really overmuch this 1 gets done. Ron, what mightiness you add?

Ron Duncan

We've been peculiarly benefited by ACP successful Alaska. And I deliberation it's nan superior logic that our bad indebtedness has tally astatine specified almost absurdly debased levels. We were six tenths of a percent of full gross for bad indebtedness past twelvemonth versus an manufacture norm and a GCI norm pre-COVID of 1.2% to 1.5%. And we've sewage a worldly number of subs little than 10,000, but a worldly number of subs. In Alaska, we suffice for nan tribal benefit. So we're getting $75 a month. And I deliberation what it's doing is it's taking nan lowest extremity of our subscriber guidelines that would ordinarily move connected and disconnected and making them bully unchangeable customers.

That said, we're projecting nan benefits of that programme to spell distant sometime early successful '24 and our bad indebtedness to return to much normal levels because we deliberation successful nan existent governmental situation pinch nan Republicans successful power of house, it's improbable that nan backing basal to proceed ACP would beryllium provided and nan existent termination day of nan programme erstwhile it runs retired of money is unknown, but it's apt successful nan first half of '24. It depends connected nan ongoing expenditure rate.

Greg Maffei

So pinch that, operator, I deliberation we're done. Thank you very overmuch for your liking successful some Liberty Trip and Liberty Broadband. We look guardant to talking to you adjacent 4th if not soon.

Operator

Thank you. That does reason today's teleconference and webcast. You whitethorn disconnect your statement astatine this time, and person a awesome day. We convey you for your participation.

Editor: Naga



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