Liberty Broadband Corporation · NASDAQ:LBRDA
Liberty Broadband — Investor Day (November 2024)
38 slides from Liberty Broadband's investor day presentation, Nov 14, 2024
Slide 1: 2024 Investor Day
2024 Investor Day NOVEMBER 14, 2024
Slide 2: Disclaimers
Disclaimers FORWARD-LOOKING STATEMENTS This presentation includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Liberty TripAdvisor Holdings, Inc. (“Liberty TripAdvisor”) and Liberty Broadband Corporation (“Liberty Broadband”)
Slide 3: Disclaimers (cont.)
Disclaimers (cont.) INDUSTRY INFORMATION Certain information included herein concerning QRI’s, QVC’s, Liberty TripAdvisor’s and Liberty Broadband’s respective businesses and the related markets or industry position or prospects, as well as industry or market data and other statistical data regarding
Slide 4: Disclaimers (cont.)
Disclaimers (cont.) ADDITIONAL INFORMATION Nothing in this presentation shall constitute a solicitation to buy or an offer to sell shares of common stock of Liberty Broadband or Charter. The proposed offer and issuance of shares of Charter Common Stock in the proposed transactions will be made only
Slide 5: Disclaimers (cont.)
Disclaimers (cont.) PARTICIPANTS IN A SOLICITATION Liberty Broadband anticipates that the following individuals will be participants (the “Liberty Broadband Participants”) in the solicitation of proxies from holders of Liberty Broadband’s Series A common stock (“LBRDA”) and Series B common stock (“L
Slide 6: Greg Maffei, President & CEO, Liberty Broadband
Liberty____ BROADBAND Greg Maffei PRESIDENT & CEO
Slide 7: Combination of LBRD + CHTR
Combination of LBRD + CHTR Transaction Overview CHTR / LBRD Exchange Ratio • LBRD and CHTR to combine in all-stock merger 0.260x • 0.236 shares CHTR per share LBRD 0.240x • GCI to be divested prior to close via taxable spin-off to LBRD 0.236x shareholders 0.220x +GCI shares also • Conditions to clos
Slide 8: Charter Optimizing Go-to-Market
Charter Optimizing Go-to-Market Customer Commitment: • Prompt response times • US-based customer service 24/7 • Money back and credit guarantees Price-Protected Bundles: • Transparent up-front pricing • No annual contracts • Significant bundled savings Charter competes effectively with operating adv
Slide 9: Chart(er)ing New Path For Video Model
Chart(er)ing New Path For Video Model Video has been broken for some time… Customer Distributors TV Stream Programmers $40/mo • Lopsided Price-to-Value • Subscriber •erosion 85+ channels • Declining margins • Fragmentation leads to • Limited packaging flexibility • DTC business model customer confus
Slide 10: A Solid Year at GCI
A Solid Year at GCI • Consumer data seeing strength in postpaid subscribers Financial Results o GCI invested early in 5G and now benefitting from fastest ($m) $1,003 service in market and from GCI+ penetration $969 $981 • Business data driven by sales to rural healthcare and schools due to service u
Slide 11: Appendix
Liberty____ BROADBAND Appendix
Slide 12: History of Investments in Charter at LBRD
History of Investments in Charter at LBRD • May 2013: Initial $2.6b purchase for 24.3m(1) shares at price of $105.62/share(1) • May – Nov 2014: Acquired 1.8m(1) Charter shares • Additional shares purchased plus exercise of 1.1m warrants • Nov 2014: Liberty Broadband spun-off from Liberty Media • May
Slide 13: Broadband
BROADBAND
Slide 14: Liberty Investor Meeting: Charter Communications
Liberty Investor Meeting Charter Communications November 14, 2024
Slide 15: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, s
Slide 16: Spectrum Has Significant Assets & Scale
Spectrum Has Significant Assets & Scale Network & Industry Leading Infrastructure Customers Data Fastest Internet Speeds1) 16M 900K+ 31.7M Advanced WiFi HHs Network Miles Customers with Near Real-Time Fastest Growing Mobile Provider Telemetry 87% Fastest Overall Speeds2) for Spectrum Mobile 58M 9.4M
Slide 17: Unique Seamless Connectivity Capability
Unique Seamless Connectivity Capability Gig-Capable Wireline Passings (Millions) Seamless Connectivity Capability5) Current Future Current Future 58 Growing 100% 100% 6) 40-45 28 28 18% ~26% long-term goal only only 7) 12% 35-40 18 25 16% ~23% Incl. Frontier long-term goal 8) 12-15 2 2 1% ~8% Incl.
Slide 18: Spectrum Saves Customers Over $750/Year with Better Products
Spectrum Saves Customers Over $750/Year with Better Products 5G Home Internet Plus Internet Speed9) 1 Gbps 1 Gbps 1 Gbps 300 Mbps – 1 Gbps 72 – 245 Mbps 100% 18% 12% Marketed Availability Capacity Dependent Capacity Dependent of footprint of mobile footprint of mobile footprint De-prioritization12);
Slide 19: Spectrum Not Standing Still
Spectrum Not Standing Still Life Unlimited New Pricing and Packaging Product Evolution Brand relaunch in September Seamless connectivity and entertainment 100% symmetrical and multi-Gig capable pricing and packaging network over 3 years Spectrum’s advanced network helps customers live their best liv
Slide 20: Seamless Entertainment: Solving for Value & Utility
Seamless Entertainment: Solving for Value & Utility Streaming App Retail Value TV Select / Plus Frictionless Spectrum Video Experience with Xumo $9.99 Basic Available in $11.99 TV Select Plus Launched $7.99 Essential $4.99 Premium con Anuncios Available in $9.99 TV Select Plus $9.99 with Ads $4.99 T
Slide 21: Spectrum Strategy Designed to Drive Value
Spectrum Strategy Designed to Drive Value Operating Strategy Strategic Initiatives Shareholder Value High Quality Products Evolution Long-Term Revenue Growth Unique Customer Value Expansion Long-Term Cash Flow Growth Commitment to Service Execution Levered Equity Returns Tied to Local Communities Li
Slide 22: Notes
Notes 1) Based on Broadband Download Speed nationally in Opensignal USA: Fixed Broadband Experience Report – National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2024 Opensignal Limited. 2) Based on Charter’s analysis of Ookla® Speedtest Intelligence® data for
Slide 23: Liberty Investor Day, November 2024
: Liberty Investor Day November 2024
Slide 24: Big state. Big challenges. Big opportunities.
Big state. Big challenges. Big opportunities. Alaska at a Glance 665,000 sq miles 1/5 of total U.S. area 732,000 residents 0.2% U.S. population
Slide 25: Biggest state in the nation
Biggest state in the nation. #1 #2 Second biggest state in the nation. Third biggest state in the nation. #3
Slide 26: Denali Formula One
Denali Formula One
Slide 27: A Big State Requires a Big Network
A Big State Requires a Big Network $4.7 billion invested in GCI’s network over the past 40+ years. • 3,400 miles metro fiber • 7,100 miles middle mile fiber • 6,000 miles submarine fiber • 1,400 miles of microwave • 550 wireless towers statewide • 376 satellite Earth Stations • 97% of Alaskans live
Slide 28: History of GCI
History of GCI • Founded in 1979 • GCI’s Roots: Long distance, traditional cable, local phone service, high speed data (268KB), mobile (MVNO) • GCI’s Expansion: DSL, MPLS, IP, CDMA, GSM, LTE from DOCSIS 1 to DOCSIS 4 • GCI Now: Consumer, commercial, enterprise, health care, education, wholesale
Slide 29: Network Technologies
Network Technologies • Long haul fiber under oceans, across the tundra, through rivers and under the winter sea ice • Long haul microwave • Geostationary and LEO satellite • HFC – ESD DOCSIS 4 with high split - on the march to 10 gig • Statewide wireless
Slide 30: Alaska's Competitive Environment
Alaska’s Competitive Environment Other Alaska LECs Consumer Data Consumer Wireless Enterprise Data Wholesale Data
Slide 31: GCI Consumer Subscribers
GCI Consumer Subscribers Consumer Data Subscribers Consumer Wireless Lines 165,000 ACP Losses 205,000 160,000 200,000 155,000 195,000 150,000 190,000 145,000 185,000 140,000 135,000 180,000 130,000 175,000 125,000 170,000 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 202
Slide 32: GCI Revenues
GCI Revenues GCI Consumer GCI Business ($ millions) ($ millions) $600 $600 $534 $513 $484 $500 $486 $490 $500 $479 $468 $469 $400 $400 $300 $300 $200 $200 $100 $100 $0 $0 2021 2022 2023 LTM Q3 2024 2021 2022 2023 LTM Q3 2024 Data Wireless Other
Slide 33: GCI Adjusted OIBDA
GCI Adjusted OIBDA ($ millions) $400 $375 $366 $361 $358 $354 $350 $325 $300 2021 2022 2023 LTM Q3 2024
Slide 34: Federal Funding for Broadband in Alaska
Federal Funding for Broadband in Alaska Awarded • RUS ReConnect: $538M • NTIA: $539M Total awarded to date: $1B + Upcoming • NTIA: $? • RUS: $? • BEAD program: $992M for Alaska broadband projects Potential to be awarded: $1B +
Slide 35: GCI Broadband Project Grant Awards: $170.2M
GCI Broadband Project Grant Awards: $170.2M $27.5 million USDA Rural Utilities Service ReConnect grant Aleutians I Awarded in 2020 $29.3 million NTIA Tribal Broadband Connectivity Program grant Aleutians II Awarded in 2022, Native Village of Port Lions partnership $42.4 million NTIA Broadband Connec
Slide 36: 2023 Universal Service Fund Support for Alaska
2023 Universal Service Fund Support for Alaska Rural Health Care: $221M Alaska Plan: $167M E-rate: $110M Lifeline: $11M Schools Hospitals/clinics
Slide 37: Every Last Mile
EVERY LAST MILE THE UNTOLD STORY OF CONNECTING RURAL AMERICA
Slide 38: Slide 38