Liberty Broadband Corp ((LBRDA)) has held its Q1 earnings call. Read on for the main highlights of the call.
Liberty Broadband Corp’s latest earnings call painted a picture of robust performance for GCI, marked by record revenue and strategic advancements. The sentiment was largely positive, underscoring strong financial management and community connectivity achievements. However, challenges such as customer declines and service disruptions due to fiber issues were also acknowledged.
Record Revenue and OIBDA Growth for GCI
GCI reported its best quarter ever, achieving a revenue of $266 million and an adjusted OIBDA of $111 million. This reflects a significant year-over-year increase of 9% and 23%, respectively. The impressive financial performance highlights GCI’s ability to drive growth and maintain a strong OIBDA margin of 42%.
Successful Community Connectivity Project
A major milestone was reached with the completion of a community connectivity project in Bethel, Western Alaska’s largest community. By connecting Bethel with fiber from Anchorage, GCI has enabled residents to access a 5G wireless network and high-speed broadband services, significantly enhancing connectivity in the region.
Strategic Financial Moves
GCI has strategically refinanced its senior credit facility, securing a $450 million revolver maturing in 2030 and a $300 million Term Loan A maturing in 2031. These moves extend maturities at attractive rates, ensuring good liquidity and financial stability for the company.
Customer Decline in GCI Consumer
Despite strong financial results, GCI Consumer faced a decline in subscribers, with a loss of 400 wireless subscribers and 5,000 cable modem customers. This was primarily due to postpaid growth being offset by losses in prepaid and lifeline services, alongside the termination of the ACP program.
Service Disruptions Due to Fiber Break
A fiber break in the Quintillion Fiber under the ice in the Beaufort Sea led to service disruptions. While consumer services have been partially restored, they remain degraded until repairs are completed, which is expected by late summer.
Forward-Looking Guidance
Looking ahead, Liberty Broadband provided several key metrics and future guidance. The company reported consolidated cash and restricted cash of $565 million, with $149 million at GCI. GCI’s CapEx for Q1 was $49 million, with a full-year expectation of $250 million due to investments in rural Alaska. Additionally, the anticipated completion of Liberty Broadband’s acquisition by Charter is expected by June 2027, and the GCI spinoff is anticipated to be finalized this summer.
In conclusion, Liberty Broadband Corp’s earnings call highlighted a strong quarter for GCI, with record revenue and strategic advancements in connectivity and financial management. While challenges such as customer declines and service disruptions were noted, the company’s forward-looking guidance suggests continued growth and strategic focus in the coming years.