Executive Summary

Q2 2024 was stable at the consolidated level: revenue rose slightly to $246M (+0.4% YoY), while diluted EPS fell to $1.36 due to lower other income and a smaller equity pickup; Adjusted OIBDA declined to $80M as higher operating costs weighed on margins .
GCI revenue was flat at $246M; Consumer flat and Business up 1%, but operating income fell to $30M and Adjusted OIBDA to $86M as distribution and SG&A costs increased; operating margin compressed 90bps YoY and Adjusted OIBDA margin fell 260bps YoY .
Balance sheet actions are a key positive: in July, LBRD issued $860M of 3.125% 2054 exchangeables, repaid $540M under the Charter margin loan (maturity extended to 2027), and repurchased $300M of 2053 exchangeables—management expects “substantial interest savings” and is prioritizing debt reduction .
Estimate comparison unavailable: S&P Global consensus retrieval failed (daily limit exceeded), so we cannot quantify beats/misses versus Wall Street for Q2 2024; management commentary indicates Charter’s competitive environment (ACP expiration) but improving broadband trends exiting Q2 .

What Went Well and What Went Wrong

What Went Well

Balance sheet de-risking: Extended Charter margin loan maturity to June 30, 2027 and executed $860M exchangeable offering to reduce margin loan borrowings; management expects substantial interest savings from these actions .
Charter exposure maintained at 26% fully diluted while monetizing shares: $74M proceeds from 270K Charter shares sold to Charter from May–July; fair value of Charter investment rose to $13.7B at Q2-end and was cited at ~$16.2B as of Aug 1/share price reference on Q2 call .
GCI Business data growth supported stability: Business data revenue +3% YoY; overall GCI revenue flat despite wireless declines, demonstrating resilience in core data services .

What Went Wrong

Margin compression at GCI: Operating income down $2M YoY to $30M; Adjusted OIBDA down $6M YoY to $86M; operating margin fell 90bps and Adjusted OIBDA margin down 260bps due to higher distribution costs to healthcare customers and higher labor/professional fees .
Lower consolidated operating profit and other income: Liberty Broadband operating income dipped to $21M (vs $23M), with realized/unrealized losses on financial instruments at -$17M (vs +$40M prior year), driving EPS down to $1.36 (vs $1.71) .
Consumer KPIs mixed: Cable modem subs fell 1% YoY to 158,000 and wireless lines were flat; ACP expiration cited as a driver of sub pressures across the sector via Charter trends commentary .

Financial Results

Consolidated Results vs Prior Periods

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$245	$245	$246
Operating Income ($USD Millions)	$23	$28	$21
Adjusted OIBDA ($USD Millions)	$87	$85	$80
Diluted EPS ($USD)	$1.71	$1.69	$1.36

Notes: Adjusted OIBDA is non-GAAP; see reconciliations in exhibits .

GCI Segment Breakdown (Financials)

Segment	Metric	Q2 2023	Q2 2024	YoY Change
GCI Consumer	Data Revenue ($M)	$59	$60	+2%
GCI Consumer	Wireless Revenue ($M)	$48	$47	-2%
GCI Consumer	Other Revenue ($M)	$10	$10	—
GCI Consumer	Total Revenue ($M)	$117	$117	—
GCI Business	Data Revenue ($M)	$106	$109	+3%
GCI Business	Wireless Revenue ($M)	$13	$12	-8%
GCI Business	Other Revenue ($M)	$9	$8	-11%
GCI Business	Total Revenue ($M)	$128	$129	+1%
GCI Total	Operating Income ($M)	$32	$30	-6%
GCI Total	Operating Margin (%)	13.1%	12.2%	-90bps
GCI Total	Adjusted OIBDA ($M)	$92	$86	-7%
GCI Total	Adjusted OIBDA Margin (%)	37.6%	35.0%	-260bps

KPIs

KPI	Q2 2023	Q1 2024	Q2 2024
Cable Modem Subscribers	159,600	159,800	158,000
Wireless Lines in Service	201,100	199,000	201,900

Balance Sheet and Capital Actions (Highlights)

Item	Q1 2024	Q2 2024
Consolidated Cash ($M)	$108	$73
Total Liberty Broadband Debt (GAAP) ($M)	$3,639	$3,609
Charter Investment Fair Value ($B)	$13.385 (as of 3/31)	$13.730 (as of 6/30)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GCI Net Capital Expenditures	FY 2024	≈$200M (network investments in rural Alaska; Bethel, AU‑Aleutians)	≈$200M (unchanged scope and projects)	Maintained
Charter Margin Loan Maturity	Corporate	June 2027 (post-amendment announced Q2)	June 2027	Maintained (extension executed)
Preferred Dividend (Series A)	Q3 2024 Payable Oct 15, 2024	N/A	$0.43750001 per share; record date Sep 30, 2024	New declaration (regular schedule)

Note: Liberty Broadband generally does not provide consolidated revenue/EPS guidance; GCI provides capex expectations only .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2023 and Q1 2024)	Current Period (Q2 2024)	Trend
Debt reduction focus	LBRD repaid Charter margin loan; plan to use Charter buyback proceeds primarily for LBRD debt reduction; maintain buybacks opportunistically	Executed $860M exchangeables; repaid $540M margin loan; extended maturity; expect substantial interest savings; prioritize retiring debt	Strengthening deleveraging posture
Charter broadband trends & ACP	Industry broadband net adds challenged; ACP uncertainty; Charter targeting mid-point of 4–4.5x leverage and offering retention programs	Q2 net broadband loss of 149K largely due to ACP; trends improved through June; EBITDA growth +2.6% YoY; margin +100bps	Mixed near-term; improving intra-quarter
Mobile momentum	Charter surpassed 8M lines; Spectrum One performance strong; improved mobile EBITDA	Charter mobile achieved profitability; 557K mobile line net adds; Anytime Upgrade drives ARPU	Positive
Fiber competition / telecom M&A	Considered headwinds; balanced investment vs FCF	T‑Mobile fiber JVs seen as validation of fixed-line need; activity “around the edges”; less broad fiber build activity observed	Manageable competitive backdrop
AI phone upgrade cycle	Not discussed	GCI evaluating enhanced device subsidies; expects bigger-than-usual cycle but warns optimism may be excessive	Potential consumer uplift
TripAdvisor (LTRPA) overhang	Strategic alternatives in progress; NAV discount mitigation via structural actions discussed	Active discussions continue; acknowledge LTRPA “cloud” on TRIP stock	Ongoing uncertainty

Management Commentary

Greg Maffei on capital structure: “We issued $860 million of the 3.125% Charter exchangeables... used the proceeds to repay $540 million under our Charter Margin loan and repurchased $300 million... extended the margin loan maturity to 2027... we expect substantial interest savings.”
On Charter’s quarter: “Well received strong results... net subscriber loss of 149,000 broadband subs, but the majority... due to ACP... Broadband trends did improve throughout the quarter with the lowest net loss in June.”
Brian Wendling on cash, debt and Charter stake: “Consolidated cash and cash equivalents of $73 million... value of our Charter investment... $16.2 billion... total principal amount of debt of $3.7 billion... GCI’s leverage... 3.2x.”
Ron Duncan on GCI wireless strategy and AI cycle: “We have to match AT&T device subsidies... extended device subsidies from 2-year to 3-year... if there’s an accelerated device cycle... it may be an opportunity to grab some more share... think there’s probably more optimism than is merited, but... a bigger-than-usual upgrade cycle.”

Q&A Highlights

Device subsidies and AI cycle: GCI may enhance subsidies to capture share during potential AI phone refresh; extended contracts reduce churn; management cautious on hype but expects elevated upgrade activity .
Charter handset subsidies: Charter’s combined offering pricing reduces the need for handset subsidies; focus remains on value via Spectrum plans rather than matching carrier subsidies .
Fiber competition: T‑Mobile’s fiber JV activity seen as validation of fixed-line strategy; incremental and “around the edges” rather than broad competitive threat; less fiber build activity observed broadly .
LTRPA structure: Active discussions continue; management acknowledged Liberty TripAdvisor issues as a “cloud” on TRIP stock; timing/structure remains uncertain .

Estimates Context

S&P Global consensus estimates for Q2 2024 could not be retrieved due to a daily request limit exceeded; as a result, we cannot provide a definitive beat/miss analysis versus Street expectations for Revenue and EPS this quarter. Values would normally be retrieved from S&P Global; unavailable at this time.
Given the lack of consensus data, we anchor the assessment on reported results and management commentary; note Charter-related dynamics (ACP) and GCI cost pressures may prompt modest estimate revisions to GCI margins near term .

Key Takeaways for Investors

Debt reduction and maturity extension are tangible catalysts: the July exchangeables issuance and margin loan repayment should lower interest expense and de-risk the structure; expect improved financing profile into 2025 as management prioritizes deleveraging .
GCI margins compressed on higher distribution/SG&A costs; monitor execution on rural network investments as ~$200M 2024 net capex proceeds and fiber projects ramp, with potential for medium-term margin recovery as projects come online .
Charter exposure remains significant; trends improved exiting Q2 despite ACP-related headwinds—sustained EBITDA growth and mobile profitability support NAV, but volatility around ACP fallout may continue near term .
AI-driven handset upgrade cycle could be a modest positive for GCI wireless; subsidy strategy and inventory planning are key—risk/reward balanced given competitive moves by national carriers .
LTRPA remains an overhang; any structural resolution could unlock value and narrow NAV discount over time; keep watch for updates from the special committee process .
No LBRD common repurchases during May–July; remaining authorization ~$1.7B—buyback pace likely subordinate to debt reduction until cash builds via Charter repurchases .
Preferred dividend remains regular ($0.43750001 per share payable Oct 15, 2024), but equity catalysts hinge more on leverage, Charter performance, and potential TripAdvisor structure outcomes .

Citations:

Liberty Broadband Corp (LBRDA)·Q2 2024 Earnings Summary