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Dec 31, 2023

Liberty Broadband Q4 2023 Earnings Report

Liberty Broadband's financial performance remained consistent in Q4 2023, with strategic investments in Charter and GCI yielding mixed results.

Key Takeaways

Liberty Broadband reported fourth quarter and year-end 2023 results, with a fair value of Charter investment at $18.0 billion as of December 31, 2023. GCI's revenue remained flat in Q4 but grew 1% for the full year. Liberty Broadband repurchased 3.2 million LBRDK shares from November 1, 2023, through January 31, 2024, for $255 million.

Fair value of Charter investment reached $18.0 billion by the end of 2023.

Liberty Broadband executed strategic sale of Charter shares, generating $385 million in proceeds.

Share repurchase program continued with 3.2 million LBRDK shares bought back for $255 million.

GCI's revenue remained flat in Q4 but grew 1% for the full year.

Total Revenue
$250M
Previous year: $250M
+0.0%
EPS
$1.39
Previous year: $1.26
+10.3%
Wireless lines in service
197.3K
Previous year: 191.1K
+3.2%
Cable modem subscribers
159.7K
Previous year: 157.2K
+1.6%
Gross Profit
$124M
Previous year: $187M
-33.7%
Cash and Equivalents
$158M
Previous year: $375M
-57.9%
Free Cash Flow
-$11M
Previous year: -$45M
-75.6%
Total Assets
$15.6B
Previous year: $15.1B
+3.3%

Liberty Broadband

Liberty Broadband

Liberty Broadband Revenue by Segment

Forward Guidance

GCI’s net capital expenditures for 2024 are expected to be approximately $200 million related to additional high-returning investments in middle and last mile connectivity, with continued network expansion in GCI’s most important markets in rural Alaska including the Bethel and AU-Aleutians fiber projects.

Positive Outlook

  • Liberty Broadband maintained a fully diluted equity interest in Charter of 26%.
  • GCI produced another year of solid financial results.
  • GCI continues to expand and upgrade its fiber network across Alaska.
  • Liberty Broadband cash increased $70 million in the fourth quarter as proceeds from Charter share sales more than offset share repurchases in the period and debt reduction.
  • GCI cash increased $41 million in the fourth quarter as cash from operations more than offset capital expenditures.

Challenges Ahead

  • Challenging environment impacted Charter.
  • Adjusted OIBDA decreased 1% in the fourth quarter.
  • Total Liberty Broadband debt increased to $3,810.
  • Consumer revenue decreased 3% for GCI
  • Other revenue decreased 23% for GCI Consumer