Liberty Broadband Corporation (LBRDA) Bundle
A Brief History of Liberty Broadband Corporation
Liberty Broadband Corporation, as of 2024, continues to play a significant role in the telecommunications and media landscape. The company has established itself primarily through its investment in Charter Communications, Inc., which is recognized as one of the largest cable operators in the United States.
Financial Performance Overview
For the three months ended September 30, 2024, Liberty Broadband reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenue | $13,795 million | $13,584 million |
| Operating Income | $3,335 million | $3,126 million |
| Net Income | $1,474 million | $1,436 million |
| Adjusted OIBDA | $5,626 million | $5,420 million |
For the nine months ended September 30, 2024, the results were as follows:
| Metric | YTD 2024 | YTD 2023 |
|---|---|---|
| Revenue | $41,159 million | $40,896 million |
| Operating Income | $9,729 million | $9,292 million |
| Net Income | $4,177 million | $4,032 million |
| Adjusted OIBDA | $16,747 million | $16,340 million |
Investment in Charter Communications
Liberty Broadband holds a significant equity stake in Charter Communications, accounting for approximately 32.0% economic ownership as of September 30, 2024. The carrying value of Liberty Broadband’s investment in Charter stood at approximately $12.8 billion, with a market value of about $14.8 billion.
Cash Flow and Liquidity
As of September 30, 2024, Liberty Broadband reported cash and cash equivalents of $168 million. The company generated net cash from operating activities of $103 million for the nine months ended September 30, 2024, compared to a cash outflow of $46 million for the same period in 2023.
Comprehensive Earnings
The comprehensive earnings for the three months ended September 30, 2024, were reported as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Earnings | $142 million | $162 million |
| Comprehensive Earnings | $172 million | $151 million |
Stock-Based Compensation
Liberty Broadband granted stock-based compensation expenses of $8 million and $22 million for the three and nine months ended September 30, 2024, respectively, compared to $9 million and $25 million for the same periods in 2023.
Debt and Interest Expense
The company reported interest expense of $1,311 million for the three months ended September 30, 2024, compared to $1,306 million in Q3 2023. For the nine-month period, the interest expense totaled $3,955 million in 2024, compared to $3,869 million in 2023.
Liberty Broadband’s total liabilities amounted to approximately $149.4 billion as of September 30, 2024, with long-term debt accounting for $93.5 billion.
Operational Highlights
In recent years, Liberty Broadband has focused on enhancing its operational efficiencies and expanding its service offerings within the telecommunications sector, leveraging its substantial stake in Charter Communications to drive growth and profitability.
The company has also engaged in strategic share repurchases to maintain its ownership percentage and enhance shareholder value.
A Who Owns Liberty Broadband Corporation (LBRDA)
Ownership Structure
As of September 30, 2024, Liberty Broadband Corporation (LBRDA) holds an approximate 32.0% economic ownership interest in Charter Communications, Inc. This interest translates to a carrying value of approximately $12.8 billion and a market value of about $14.8 billion.
Voting Power and Stockholder Agreements
Liberty Broadband's voting control over Charter is limited by a stockholders agreement, capping its voting power at 25.01% despite holding a larger economic interest. This cap was established due to the provisions set forth in the Second Amended and Restated Stockholders Agreement.
Recent Share Transactions
In order to maintain its ownership percentage within the agreed limits, Liberty Broadband executed several share transactions. During the nine months ended September 30, 2024, Liberty sold 698,011 shares of Charter Class A common stock for $226 million. In the previous year, it sold 120,149 shares for $42 million.
Shareholder Composition
The following table summarizes the shareholder composition of Liberty Broadband Corporation as of September 30, 2024:
| Shareholder Type | Percentage Ownership | Number of Shares (millions) |
|---|---|---|
| Institutional Investors | 45.3% | 64.4 |
| Insiders | 5.2% | 7.5 |
| Retail Investors | 49.5% | 71.1 |
Financial Performance
Liberty Broadband reported net earnings of $142 million for the three months ended September 30, 2024, compared to $162 million in the same period of the prior year. For the nine months ended September 30, 2024, net earnings were $578 million, up from $483 million for the same period in 2023.
Cash and Capital Resources
As of September 30, 2024, Liberty Broadband had cash and cash equivalents totaling $168 million. The company generated $103 million from operating activities during the nine months ended September 30, 2024.
Debt and Financial Obligations
The total debt of Liberty Broadband as of September 30, 2024, was approximately $3.6 billion. This includes various financial instruments such as the Margin Loan Facility and Exchangeable Senior Debentures.
Stock Performance
Liberty Broadband stocks have exhibited fluctuations in value, with the common stock having a market valuation reflective of its substantial stake in Charter Communications. The stock is actively traded on the NASDAQ and has shown resilience amid market conditions.
Liberty Broadband Corporation (LBRDA) Mission Statement
Overview of Liberty Broadband Corporation
Liberty Broadband Corporation (LBRDA) primarily focuses on investments in broadband and telecommunications services. The company has a significant ownership stake in Charter Communications, a leading cable operator in the United States.
Mission Statement
Liberty Broadband Corporation's mission is to enhance the quality of life for its customers and communities through the delivery of innovative broadband services and technology that connect people, businesses, and communities.
Financial Performance
As of September 30, 2024, Liberty Broadband reported net earnings of $142 million for the three months ended September 30, 2024, compared to $162 million for the same period in 2023. For the nine months ended September 30, 2024, net earnings were $578 million, up from $483 million in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Earnings | $142 million | $162 million | $578 million | $483 million |
| Operating Income | $30 million | $21 million | $79 million | $60 million |
| Revenue | $262 million | $240 million | $753 million | $731 million |
| Cash and Cash Equivalents | $168 million | N/A | N/A | N/A |
Investment in Charter Communications
As of September 30, 2024, Liberty Broadband held a carrying value of approximately $12.8 billion and a market value of $14.8 billion in its investment in Charter Communications. Liberty Broadband owns an approximate 32.0% economic ownership interest in Charter, based on the number of shares outstanding.
Liquidity and Capital Resources
Liberty Broadband's liquidity position is supported by its cash and cash equivalents, which stood at $168 million as of September 30, 2024. The company generates cash through operating activities, with net cash provided from operating activities amounting to $103 million for the nine months ended September 30, 2024.
| Liquidity Metrics | As of September 30, 2024 |
|---|---|
| Cash and Cash Equivalents | $168 million |
| Net Cash Provided by Operating Activities | $103 million |
| Net Cash Used in Investing Activities | $69 million |
| Net Cash Used in Financing Activities | $(174) million |
Stock Performance
Liberty Broadband’s stock has shown resilience, with a market capitalization reflecting its investments and overall performance. The company’s Series A common stock (LBRDA) is actively traded on NASDAQ, providing liquidity and access to capital for future growth initiatives.
Strategic Initiatives
Liberty Broadband continues to pursue strategic initiatives aimed at enhancing its broadband services and expanding its market presence. The company is committed to investing in technology and infrastructure that supports high-speed internet access and fosters digital inclusion across communities.
Conclusion
Liberty Broadband Corporation remains focused on its mission to deliver quality broadband services while achieving sustainable financial growth through strategic investments and operational excellence.
How Liberty Broadband Corporation (LBRDA) Works
Business Model
Liberty Broadband Corporation operates primarily through its ownership in Charter Communications, Inc., which is a major cable operator in the United States. Liberty Broadband holds approximately 32.0% economic ownership interest in Charter as of September 30, 2024. The company is structured to provide a range of telecommunication services, including data, video, and voice services, through its subsidiary GCI Holdings, which serves customers mainly in Alaska.
Financial Performance
For the nine months ended September 30, 2024, Liberty Broadband reported net earnings of $578 million, compared to $483 million for the same period in 2023. The company's revenue for the same period was $753 million, up from $731 million in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Earnings | $578 million | $483 million |
| Revenue | $753 million | $731 million |
| Operating Income | $79 million | $60 million |
| Cash and Cash Equivalents | $168 million | $158 million |
Cash Flow Analysis
For the nine months ending September 30, 2024, Liberty Broadband's cash flow from operating activities was $103 million, compared to a cash outflow of $46 million in the same period of 2023. The company had capital expenditures of $183 million and cash inflows from investing activities of $69 million.
| Cash Flow Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Cash Flow from Operating Activities | $103 million | ($46 million) |
| Cash Flow from Investing Activities | $69 million | ($129 million) |
| Capital Expenditures | $183 million | $149 million |
Investment in Charter Communications
Liberty Broadband's investment in Charter is accounted for using the equity method. As of September 30, 2024, the carrying value of this investment was approximately $12.8 billion, with a market value of $14.8 billion. The company has structured its investments to maintain a fully diluted ownership percentage of 26% in Charter, which is managed through a stockholders' agreement.
Operational Segments
Liberty Broadband's primary operational segment is GCI Holdings, which provides a comprehensive range of communication services. As of September 30, 2024, GCI Holdings reported the following key performance indicators:
| Performance Metric | 2024 | 2023 |
|---|---|---|
| Cable Modem Subscribers | 156,400 | 159,300 |
| Wireless Lines in Service | 200,300 | 200,300 |
Stock-Based Compensation
In the nine months ending September 30, 2024, Liberty Broadband recognized stock-based compensation expenses of $22 million. The company also granted 183 thousand options to purchase shares of its Series C common stock, with a grant-date fair value of $20.18 per share.
Equity Structure
As of September 30, 2024, Liberty Broadband's total equity was reported at $9.538 billion, with $6.421 billion in retained earnings. The company has three classes of common stock, Series A, B, and C, with Series C being the only one issued as of the latest reporting date.
| Equity Metric | Amount (in millions) |
|---|---|
| Total Equity | $9,538 |
| Retained Earnings | $6,421 |
| Series C Common Stock Outstanding | 1 |
Debt and Financing Activities
Liberty Broadband's financing activities included the repurchase of approximately $300 million in aggregate principal amount of its 3.125% debentures due 2053. The company’s cash flow from financing activities was a net outflow of $174 million for the nine months ended September 30, 2024.
Market Position
Liberty Broadband continues to position itself as a significant player in the telecommunications market through its strategic investments and operational efficiencies. The company’s focus on maintaining its equity stake in Charter Communications plays a critical role in its overall financial health and market presence.
How Liberty Broadband Corporation (LBRDA) Makes Money
Revenue Sources
Liberty Broadband Corporation primarily generates revenue through its investment in Charter Communications, Inc., which operates in the telecommunications sector. As of September 30, 2024, Liberty Broadband's share of Charter's revenue for the three months was $13.8 billion, compared to $13.6 billion for the same period in 2023. For the nine months, revenue was $41.2 billion, up from $40.9 billion year-over-year.
| Period | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) |
|---|---|---|---|---|
| Revenue | $13,795 | $13,584 | $41,159 | $40,896 |
Operating Income and Expenses
Liberty Broadband's operating income for the three months ended September 30, 2024, was $3.3 billion, an increase from $3.1 billion in the same period of the prior year. The operating expenses, excluding stock-based compensation, were $8.3 billion in Q3 2024, slightly lower than the $8.3 billion reported in Q3 2023.
| Period | Q3 2024 Operating Income (in millions) | Q3 2023 Operating Income (in millions) | Operating Expenses (Excluding Stock-Based Compensation) |
|---|---|---|---|
| Operating Income | $3,335 | $3,126 | $8,294 |
Investment in Charter Communications
Liberty Broadband holds approximately a 32% economic interest in Charter. As of September 30, 2024, the carrying value of Liberty Broadband’s investment in Charter was $12.8 billion, with a market value of $14.8 billion. The company is also subject to a voting cap of 25.01% due to the Stockholders Agreement with Charter.
Cash Flow and Liquidity
For the nine months ending September 30, 2024, Liberty Broadband reported net cash provided by operating activities of $103 million. The company had cash and cash equivalents of $168 million at the end of the period.
| Cash Flow Activities | Cash Flow (in millions) |
|---|---|
| Operating Activities | $103 |
| Investing Activities | $69 |
| Financing Activities | $(174) |
Share Buyback and Debt Management
During the nine months ended September 30, 2024, Liberty Broadband repurchased approximately $300 million in principal amount of its 3.125% Debentures due 2053. The company also sold 698,011 shares of Charter Class A common stock for $226 million to maintain its ownership percentage.
Adjusted OIBDA
Adjusted OIBDA for Charter, which is a key performance indicator for Liberty Broadband, was $5.6 billion for Q3 2024, compared to $5.4 billion in Q3 2023. This indicates a robust operational performance, driven by increased revenue and controlled expenses.
| Period | Q3 2024 Adjusted OIBDA (in millions) | Q3 2023 Adjusted OIBDA (in millions) |
|---|---|---|
| Adjusted OIBDA | $5,626 | $5,420 |
Conclusion on Financial Performance
Liberty Broadband continues to benefit from its strategic investment in Charter Communications, capitalizing on the growth in telecommunications services. The company's financial metrics, including revenue growth and operating income, reflect its strong positioning within the industry as of 2024.
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Resources:
- Liberty Broadband Corporation (LBRDA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Liberty Broadband Corporation (LBRDA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Liberty Broadband Corporation (LBRDA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.