Liberty Broadband Corp (LBRDA, Financial) released its third-quarter 2023 financial results on November 3, 2023. The company reported a decline in revenue from $248 million in Q3 2022 to $240 million in Q3 2023. However, operating income saw a significant increase from $1 million in Q3 2022 to $30 million in Q3 2023.
Financial Performance
Liberty Broadband Corp (LBRDA, Financial) resumed share repurchases in October 2023, buying back 149 thousand shares of Series C Liberty Broadband common stock at an average cost per share of $88.18, for a total cash consideration of $13.1 million. The remaining repurchase authorization for Liberty Broadband as of November 1, 2023, is approximately $1.9 billion.
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 Charter Class A common stock as is necessary to maintain Liberty Broadband’s percentage equity interest at 26% on a fully diluted basis. From October 1, 2023, through October 31, 2023, Liberty Broadband sold 111 thousand shares of Charter Class A common stock to Charter for total proceeds of $48 million.
Balance Sheet Overview
As of September 30, 2023, Liberty Broadband's total debt increased by $49 million in the third quarter due to additional borrowing under the Charter margin loan. The company's cash increased by $7 million in the third quarter primarily due to net borrowing of debt, partially offset by capital expenditures at GCI. GCI’s credit facility has undrawn capacity of $397 million, and GCI’s leverage as defined in its credit agreement is 3.0x.
GCI Operating and Financial Results
GCI revenue decreased by 3% in the third quarter. Consumer revenue was down 5% driven by declines in the lower-margin video and voice products included in other consumer revenue. Business revenue was down 2% as strength in data was offset by declines in other and wireless revenue. Operating income increased by $29 million in the third quarter primarily due to the $19 million litigation settlement accrual incurred in the prior-year period as well as lower depreciation expense as certain assets became fully depreciated in 2022.
Looking Forward
In the third quarter, GCI spent $48 million on net capital expenditures. Capital expenditure spending was primarily related to improvements to the wireless and hybrid fiber coax networks. GCI's net capital expenditures for the full year 2023 are expected to be approximately $185 million related to increased investment in middle mile and last mile data connectivity, including network expansion in rural Alaska.
Explore the complete 8-K earnings release (here) from Liberty Broadband Corp for further details.
