Liberty Broadband Reports First Quarter 2021 Financial Results

Rhea-AI Summary

Liberty Broadband Corporation (LBRDA, LBRDK, LBRDP) reported first quarter results for 2021, highlighting a fair value of its Charter investment at $36 billion. The company generated $978 million from selling 1.6 million Charter shares while maintaining a 26% equity interest. Liberty Broadband repurchased 6.1 million LBRDK shares for $923 million at an average price of $152.30. GCI revenue grew 5% to $242 million, with adjusted OIBDA rising 11% to $96 million. The company's balance sheet showed $1.4 billion in cash and total debt of $4.8 billion.

Positive

• GCI revenue increased by 5% to $242 million.
• Adjusted OIBDA improved 11% to $96 million.
• Repurchased 6.1 million shares at an average price of $152.30, indicating shareholder value enhancement.

Negative

• Total debt stands at $4.8 billion, which may raise concerns about leverage.

Liberty Broadband Corporation (“Liberty Broadband”) (Nasdaq: LBRDA, LBRDK, LBRDP) today reported first quarter 2021 results. Headlines include ⁽¹⁾:

• Fair value of Charter investment was $36 billion as of March 31^st
• From March 1^st through April 30^th, Liberty Broadband received $978 million of proceeds from sale of 1.6 million Charter shares to Charter
  • Maintained fully diluted equity interest in Charter of 26% ⁽²⁾
• From February 1^st through April 30^th, Liberty Broadband repurchased 6.1 million LBRDK shares at an average price per share of $152.30 and total cash consideration of $923 million
• In the first quarter, GCI ⁽³⁾ grew revenue 5% to $242 million, generated operating income of $29 million and increased adjusted OIBDA⁽⁴⁾ 11% to $96 million
• GCI received $175 million of Rural Healthcare proceeds and repaid $180 million under its revolving credit facility

“This was our first quarter participating in Charter’s buyback, which provided almost $1 billion in proceeds through April. We used all of these funds to repurchase Liberty Broadband shares at a meaningful net asset discount, generating substantial value for our shareholders,” said Greg Maffei, Liberty Broadband President and CEO. “Despite fears of a pull forward in broadband demand during the pandemic, Charter achieved strong data subscriber growth and turned in a great first quarter.”

Share Repurchases

From February 1, 2021 through April 30, 2021, Liberty Broadband repurchased approximately 6.1 million Series C Liberty Broadband common stock (Nasdaq: LBRDK) at an average cost per share of $152.30 for total cash consideration of $923 million. The total remaining repurchase authorization for Liberty Broadband as of May 1, 2021 is approximately $1.7 billion.

Charter Ownership

Under the terms of Liberty Broadband and Charter’s stockholder agreement, Liberty Broadband has sold and will continue to sell to Charter a number of shares of Class A common stock as is necessary to reduce Liberty Broadband’s percentage equity interest to 26% on a fully diluted basis. Such sales are executed by Liberty Broadband monthly based on Charter’s repurchase activity in the month prior.

In the first quarter, Liberty Broadband sold 834,576 shares of Charter Class A common stock to Charter for total proceeds of approximately $518 million. In April 2021, Liberty Broadband sold 735,209 shares of Charter Class A common stock to Charter for total proceeds of approximately $460 million.

Balance Sheet

The following presentation is provided to separately identify cash and liquid investments, debt and public holdings of Liberty Broadband as of December 31, 2020 and March 31, 2021.

(amounts in millions)		12/31/2020				3/31/2021
Cash and Cash Equivalents:
GCI Holdings		$	32			$	51
Corporate and Other			1,386				1,126
Total Liberty Broadband Consolidated Cash		$	1,418			$	1,177
Fair Value of Public Holdings in Charter(a)		$	39,340			$	36,177
Debt:
Senior Notes(b)		$	600			$	600
Senior Credit Facility			704				523
Finance Leases and Other(c)			105				103
Total GCI Holdings Debt		$	1,409			$	1,226
GCI Leverage(d)			4.0x				3.4x
Charter Margin Loan		$	2,000			$	2,000
1.25% Exchangeable Senior Debentures due 2050(e)			825				825
1.75% Exchangeable Senior Debentures due 2046(e)			15				15
2.75% Exchangeable Senior Debentures due 2050(e)			575				575
Total Corporate Level Debt		$	3,415			$	3,415
Total Liberty Broadband Debt		$	4,824

FAQ

What were Liberty Broadband's first quarter 2021 results for LBRDA, LBRDK, and LBRDP?

Liberty Broadband reported a fair value of its Charter investment at $36 billion and generated $978 million from selling Charter shares.

How much did Liberty Broadband spend on share repurchases in Q1 2021?

Liberty Broadband repurchased 6.1 million shares for a total cash consideration of $923 million.

What is GCI's revenue growth in the first quarter of 2021?

GCI's revenue grew by 5% to $242 million in Q1 2021.

What is Liberty Broadband's total debt as of Q1 2021?

Liberty Broadband's total debt is reported at $4.8 billion as of the first quarter of 2021.