Liberty Broadband Corporation

Welcome to the Liberty Broadband 2023 Third Quarter Earnings Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press star 1 on your telephone. As a reminder, this conference will be recorded November 3rd. I would now like to turn the call over to Shane Kleinstein, Vice President, Investor Relations. Please go ahead.

Thank you. Before we begin, we'd like to remind everyone that this call includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in the most recent Forms 10-K and 10-Q filed by Liberty Broadband and Liberty Trip Advisor with the SEC. These forward-looking statements speak only as of the date of this call, and Liberty Broadband and Liberty Trip Advisor expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Broadband or Liberty Trip Advisors' expectations with regard thereto, or any change in events, conditions, or circumstances on which any such statement is based. On today's call, we will discuss certain non-GAAP financial measures for Liberty Broadband, including adjusted OIBDA, information regarding the comparable GAAP metrics, along with required definitions and reconciliations including preliminary note and schedules one and two, can be found in the earnings press release issued today, as well as earnings releases for prior periods, which are available on Liberty Broadband's website. Now I'd like to introduce Greg Maffei, Liberty's president and CEO.

Thank you, Shane, and good morning to all. Today, speaking on the call, we will also have Liberty Broadband's chief accounting and principal financial officer, Brian Wendling. GCI management will be available to answer questions. Also during Q&A, we will be available to answer questions related to Liberty TripAdvisor. But please note, TripAdvisor has not yet reported their third quarter results. So we will obviously not be able to comment on the current quarter. So beginning with Liberty Broadband, we did resume selling into the charter buyback in October. We received 48 million in proceeds and we deployed $13.1 million into Liberty Broadband buyback at an average cost of $88.18 per share. We anticipate that we will continue to buy back LVRDA and K shares with the substantial majority of the after-tax proceeds we receive from Charter throughout the rest of the year. And now looking at Charter. Charter did report solid operating and financial results despite a tougher market and the Disney exchange. Charter added 63 broadband net ads. We continue to benefit from rural expansion with 31,000 subsidized rural net ads in the third quarter, and we are already achieving 50% penetration after 12 months of those net ads into customer cohorts, well above the case that those were underwritten upon. We believe this reinforces the rural investment opportunity, which we think is an attractive use of capital allocation. There is high demand for charter services, both broadband and mobile, in those markets. Mobile strength does also continue. We added 594,000 mobile lines during the third quarter. We will begin to see the benefit of those in the fourth quarter as spectrum one pricing opportunities roll off and we begin to see closer pricing on those. These free lines will begin to convert into paid lines during the fourth quarter. And as you may have heard from management last week, we've seen low churn on those conversions from our trial cohorts. We did have a successful resolution with Disney and we believe the new agreement is beneficial for both parties and does provide a path forward for both linear and over-the-top to work together with our network partners as a carriage provider, and that's a model we think could be good for all parties going forward. I'd also note that Zumo went live a month ago. Our video platform, which allows convenient access to both linear and DTC content with unified search and an excellent discovery interface, we're excited for it. The distribution of Zumo across both Charter and Comcast we think could be a winner. Finally, 23 has been an important year of investment. We believe this investment is excellent in establishing the foundation for our ongoing growth and there are opportunities which will be attractive headed forward, both upgrading and expanding our network. And we are pleased with the progress that was made across all the initiatives and confident that these investments will drive long-term results for charter shareholders. Let me turn to Liberty Trip Advisor. As I noted, Trip Advisor hasn't reported their third quarter results, so I'm not going to comment on that. But we do feel good about the business and its strategic direction. Liberty Trip Advisor did move to OTC trading on October 30th. This was due to noncompliance with some of the NASDAQ listing requirements. We did look at the range of alternatives and believe transitioning to OTC was the best course of action, and we do not anticipate this will have an impact or change Liberty Trips' business operations or strategy. And with that, let me turn it over to Brian to discuss the financials.