Liberty Media Corporation Reports Third Quarter 2023 Financial Results

Published

ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Media Corporation (“Liberty Media” or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today reported third quarter 2023 results. Headlines include(1):

  • Attributed to Liberty SiriusXM Group
    • SiriusXM reported third quarter 2023 operating and financial results
      • Third quarter 2023 revenue of $2.27 billion
      • Net income of $363 million, up 47% year-over-year; diluted EPS of $0.09
      • Adjusted EBITDA(2) of $747 million; up 4% year-over-year
      • Free cash flow(2) of $291 million
      • Year-to-date capital returns to SiriusXM stockholders total $555 million
      • SiriusXM reiterated 2023 financial guidance; planned November 8th next generation event
    • Liberty Media’s ownership of SiriusXM was 83.5% as of October 27th
    • Retired remaining $199 million outstanding principal amount of 1.375% cash convertible notes in October
  • Attributed to Formula One Group
    • Announced multi-year regional partnership with American Express to become official payments partner in the Americas
    • Confirmed renewal of Pirelli as global tire partner through 2027
    • Expanded partnership with DAZN for exclusive broadcast rights in Spain through 2026
    • Formula 1 repriced $1.7 billion Term Loan B in October, reducing margin from 3.00% to 2.25%
    • Entered into definitive agreement to acquire Quint in September
  • Attributed to Liberty Live Group
    • Fair value of Live Nation investment was $5.8 billion as of September 30th
    • Issued $1.15 billion of 2.375% Live Nation exchangeable senior debentures in September
      • Used a portion of proceeds to repurchase $858 million aggregate principal amount of 0.5% Live Nation exchangeable senior debentures

“Liberty made a proposal for a combination of Liberty SiriusXM and Sirius in September, and we are confident that rationalizing this structure into a single, simplified equity will create value for all shareholders. SiriusXM drove strong adjusted EBITDA growth in the third quarter and we look forward to the reveal of their new streaming app and in-car innovations next week that substantially enhance their value proposition with consumers, especially younger audiences,” said Greg Maffei, Liberty Media President and CEO. “At Formula 1, the Las Vegas Grand Prix is two weeks away and will be the highest attended sporting event drawing the biggest viewing audience in Vegas history. This event will deliver a spectacular fan experience and is accruing long-lasting commercial benefits for the broader Formula 1 ecosystem. Live Nation remains positioned for a record-breaking 2023 after delivering their largest quarterly AOI ever.”

Corporate Updates

On July 18, 2023, Liberty Media completed the split-off of the Braves and its associated mixed-use development (the “Split-Off”) into the separate public company Atlanta Braves Holdings, Inc. (“Atlanta Braves Holdings”). The Braves Group was a tracking stock of Liberty Media prior to the Split-Off and therefore its results are reflected in Liberty’s historical consolidated results.

On August 3, 2023, Liberty Media completed the reclassification of its then-existing common stock to create the Liberty Live Group common stock (the “Reclassification”). Following the Reclassification, Liberty SiriusXM Group is comprised of Liberty Media’s interest in SiriusXM, Formula One Group is comprised of Liberty Media’s ownership of F1 and other minority investments, and Liberty Live Group is comprised of Liberty Media’s interest in Live Nation and other minority investments. The Split-Off and Reclassification are reflected in Liberty’s consolidated financial statements on a prospective basis.

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months ended September 30, 2023 to the same period in 2022.

LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to Liberty SiriusXM Group for the third quarter of 2023. In the third quarter, $22 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty SiriusXM Group.

 

 

3Q22

 

3Q23

 

% Change

 

 

amounts in millions

 

 

 

 

Liberty SiriusXM Group

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

SiriusXM

 

$

2,280

 

 

$

2,271

 

 

 

%

Total Liberty SiriusXM Group

 

$

2,280

 

 

$

2,271

 

 

 

%

Operating Income (Loss)

 

 

 

 

 

 

 

 

 

 

SiriusXM

 

 

444

 

 

 

550

 

 

 

24

%

Corporate and other

 

 

(10

)

 

 

(22

)

 

 

(120

)%

Total Liberty SiriusXM Group

 

$

434

 

 

$

528

 

 

 

22

%

Adjusted OIBDA (Loss)

 

 

 

 

 

 

 

 

 

 

SiriusXM

 

 

722

 

 

 

748

 

 

 

4

%

Corporate and other

 

 

(9

)

 

 

(12

)

 

 

(33

)%

Total Liberty SiriusXM Group

 

$

713

 

 

$

736

 

 

 

3

%

 

SiriusXM is a separate publicly traded company and additional information about SiriusXM can be obtained through its website and filings with the Securities and Exchange Commission. SiriusXM reported its stand-alone third quarter results on October 31, 2023. For additional detail on SiriusXM’s financial results for the third quarter, please see SiriusXM’s earnings release posted to its Investor Relations website. For presentation purposes on page one of this release, we include the results of SiriusXM, as reported by SiriusXM, without regard to the purchase accounting adjustments applied by us for purposes of our financial statements. Liberty Media believes the presentation of financial results as reported by SiriusXM is useful to investors as the comparability of those results is best understood in the context of SiriusXM's historical financial presentation.

The businesses and assets attributed to Liberty SiriusXM Group consist primarily of Liberty Media’s interest in SiriusXM, which includes its subsidiary Pandora.

FORMULA ONE GROUP – The following table provides the financial results attributed to Formula One Group for the third quarter of 2023. In the third quarter, Formula One Group incurred $23 million of corporate level selling, general and administrative expense (including stock-based compensation expense).

“Formula 1 continues to experience sell-out crowds, record race attendance and strong growth across our social and digital platforms, outpacing that of other major sports leagues. This growth is attracting commercial partners, including our recent agreement with American Express that marks the first new sports vertical they have sponsored in over a decade,” said Stefano Domenicali, Formula 1 President and CEO. “We are making material progress on our sustainability initiatives, including reducing F1’s corporate emissions and amplifying F1 Academy by fully integrating the series into the 2024 F1 calendar with participation from all ten F1 teams.”

 

 

3Q22

 

3Q23

 

 

amounts in millions

Formula One Group

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Formula 1

 

$

715

 

 

$

887

 

Total Formula One Group

 

$

715

 

 

$

887

 

Operating Income (Loss)

 

 

 

 

 

 

Formula 1

 

$

82

 

 

$

132

 

Corporate and other

 

 

(18

)

 

 

(25

)

Total Formula One Group

 

$

64

 

 

$

107

 

Adjusted OIBDA (Loss)

 

 

 

 

 

 

Formula 1

 

$

170

 

 

$

215

 

Corporate and other

 

 

(12

)

 

 

(18

)

Total Formula One Group

 

$

158

 

 

$

197

 

 

The following table provides the operating results of Formula 1 (“F1”).

F1 Operating Results

 

 

 

 

 

 

 

 

3Q22

 

3Q23

 

% Change

 

amounts in millions

 

 

 

Primary Formula 1 revenue

$

624

 

$

790

 

27

%

Other Formula 1 revenue

 

91

 

 

97

 

7

%

Total Formula 1 revenue

$

715

 

$

887

 

24

%

Operating expenses (excluding stock-based compensation):

 

 

 

 

 

 

Team payments

 

(370

)

 

(432

)

(17

)%

Other cost of Formula 1 revenue

 

(124

)

 

(183

)

(48

)%

Cost of Formula 1 revenue

$

(494

)

$

(615

)

(24

)%

Selling, general and administrative expenses

 

(51

)

 

(57

)

(12

)%

Adjusted OIBDA

$

170

 

$

215

 

26

%

Stock-based compensation

 

(1

)

 

(1

)

%

Depreciation and Amortization(a)

 

(87

)

 

(82

)

6

%

Operating income (loss)

$

82

 

$

132

 

61

%

 

 

 

 

 

 

 

Number of races in period

 

7

 

 

8

 

 

 

____________________

a)

Includes $81 million and $74 million of amortization related to purchase accounting as of September 30, 2022 and September 30, 2023, respectively, that is excluded from calculations for purposes of team payments.

 

Primary F1 revenue represents the majority of F1’s revenue and is derived from (i) race promotion revenue, (ii) media rights fees and (iii) sponsorship fees.

There were eight races held in the third quarter of 2023, compared to seven races held in the third quarter of 2022. There are 22 events scheduled for the 2023 race calendar.

Primary F1 revenue increased in the third quarter with growth across race promotion, media rights and sponsorship partly driven by one more race held in the current period, which resulted in a greater proportion of season-based revenue recognized. Race promotion revenue also increased due to higher fees generated from the different mix of events held, with two additional races outside of Europe, and other contractual increases in fees. Media rights revenue benefited from increased fees under new and renewed contractual agreements and continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors. Other F1 revenue increased in the third quarter primarily due to higher freight income driven by two additional races held outside of Europe and higher hospitality revenue generated from the Paddock Club, partially offset by lower licensing income.

Operating income and adjusted OIBDA(2) increased in the third quarter. Team payments were higher compared to the prior year due to the pro rata recognition of payments across the race season with one more race held, as well as an expectation of increased team payments for the full year. Other cost of F1 revenue is largely variable in nature and is mostly derived from servicing both Primary and Other F1 revenue opportunities. These costs increased due to higher hospitality costs driven by cost inflation and the mix of events held in the current period, as well as increased freight costs due to two additional races outside of Europe. Other cost of F1 revenue in the third quarter was also impacted by increased technical, travel and other event-related costs due to one additional race, as well as increased commissions and partner servicing costs associated with higher Primary F1 revenue streams, certain early stage costs of promoting the Las Vegas Grand Prix and costs incurred for the new F1 Academy series. Selling, general and administrative expense increased primarily due to higher personnel, property, IT and marketing costs, some of which is attributable to the Las Vegas Grand Prix, partially offset by lower legal costs and foreign exchange favorability. There were $8 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the third quarter of 2023.

The businesses and assets attributed to Formula One Group consist primarily of Liberty Media’s subsidiary F1 and other minority investments.

LIBERTY LIVE GROUP - Liberty Media completed the Reclassification to create the Liberty Live Group tracking stock on August 3, 2023. In the third quarter, $5 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty Live Group.

The businesses and assets attributed to Liberty Live Group consist primarily of Liberty Media’s interest in Live Nation and other minority investments.

Share Repurchases

There were no repurchases of Liberty Media’s common stock from August 1, 2023 through October 31, 2023. The total remaining repurchase authorization for Liberty Media as of November 1, 2023 is $1.1 billion and can be applied to repurchases of common shares of any of the Liberty Media tracking stocks.

FOOTNOTES

1)

Liberty Media will discuss these headlines and other matters on Liberty Media's earnings conference call that will begin at 10:00 a.m. (E.T.) on November 3, 2023. For information regarding how to access the call, please see “Important Notice” later in this document.

2)

For definitions of Adjusted OIBDA (as defined by Liberty Media) and adjusted EBITDA and free cash flow (as defined by SiriusXM) and applicable reconciliations see the accompanying schedules.

 

NOTES

The following financial information with respect to Liberty Media's equity affiliates, available for sale securities, cash and debt is intended to supplement Liberty Media's condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended September 30, 2023. For purposes of this presentation, financial information with respect to Liberty Media’s equity affiliates, available for sale securities, cash and debt for the period ended June 30, 2023 is also shown adjusted for the Split-Off and the Reclassification.

On August 3, 2023, in connection with the Reclassification, Liberty Media’s Live Nation investment previously attributed to Liberty SiriusXM Group and certain private and public assets previously attributed to Formula One Group were attributed to Liberty Live Group. Approximately $100 million of cash from Formula One Group was attributed to Liberty Live Group in connection with the Reclassification, of which approximately $33 million came from the partial liquidation of monetizable public holdings previously held at Formula One Group. Additionally, all intergroup interests were settled in connection with the Split-Off.

Additional information on the assets attributed to each tracking stock can be found at https://www.libertymedia.com/about/asset-list.

Fair Value of Corporate Public Holdings

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted for

 

 

 

 

 

 

 

 

 

 

Split-Off and

 

 

 

 

 

 

 

 

 

 

Reclassification

 

 

 

 

 

(amounts in millions)

6/30/2023

 

6/30/2023

 

9/30/2023

Liberty SiriusXM Group

 

 

 

 

 

 

Live Nation Investment(a)

 

6,345

 

NA

 

NA

Atlanta Braves Holdings, Inc.(b)

 

NA

 

72

 

65

Total Liberty SiriusXM Group

$

6,345

$

72

$

65

 

 

 

 

 

 

 

Formula One Group

 

 

 

 

 

 

Other Monetizable Public Holdings(c)

 

148

 

11

 

Total Formula One Group

$

148

$

11

$

 

 

 

 

 

 

 

Liberty Live Group

 

 

 

 

 

 

Live Nation Investment(a)

 

NA

 

6,345

 

5,783

Other Monetizable Public Holdings(c)

 

NA

 

104

 

102

Total Liberty Live Group

$

NA

$

6,449

$

5,885

 

 

 

 

 

 

 

Total Liberty Media

$

6,493

$

6,532

$

5,950

____________________

a)

Represents the fair value of the equity investment in Live Nation. In accordance with GAAP, Liberty Media accounts for its investment in the equity of Live Nation using the equity method of accounting and includes it in its condensed consolidated balance sheet at $243 million and $372 million as of June 30, 2023 and September 30, 2023, respectively. In connection with the Reclassification, the equity investment in Live Nation previously held at Liberty SiriusXM Group was attributed to Liberty Live Group.

b)

Atlanta Braves Holdings value as of June 30, 2023 adjusted for the Split-Off and Reclassification represents the fair value of the intergroup interest in Braves Group previously held by Liberty SiriusXM Group as of June 30, 2023. The intergroup interest represented a quasi-equity interest which was not represented by outstanding shares of common stock. In connection with the Split-Off, Liberty SiriusXM Group received 1.8 million shares of Atlanta Braves Holdings Series C common stock to settle the intergroup interest, and such shares are reflected as a corporate public holding as of June 30, 2023 adjusted for the Split-Off and Reclassification and as of September 30, 2023 above.

c)

Represents the carrying value of other public holdings that are accounted for at fair value. Excludes intergroup interests. Includes exchange-traded funds previously held at Formula One Group that were attributed to Liberty Live Group in connection with the Reclassification.

 

Cash and Debt

The following presentation is provided to separately identify cash and debt information.

 

 

 

 

 

Adjusted for

 

 

 

 

 

 

 

 

Split-Off and

 

 

 

 

 

 

 

 

Reclassification

 

 

(amounts in millions)

 

6/30/2023

 

6/30/2023

 

9/30/2023

Cash and Cash Equivalents Attributable to:

 

 

 

 

 

 

 

 

 

Liberty SiriusXM Group(a)

 

$

311

 

 

$

382

 

 

$

327

 

Formula One Group(b)

 

 

1,489

 

 

 

1,351

 

 

 

1,470

 

Liberty Live Group(c)

 

 

NA

 

 

100

 

 

 

315

 

Braves Group(d)

 

 

131

 

 

 

NA

 

 

NA

Total Consolidated Cash and Cash Equivalents (GAAP)

 

$

1,931

 

 

$

1,833

 

 

$

2,112

 

 

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

 

 

 

SiriusXM senior notes(e)

 

$

8,750

 

 

$

8,750

 

 

$

8,750

 

Pandora convertible senior notes

 

 

20

 

 

 

20

 

 

 

20

 

1.375% cash convertible notes due 2023(f)

 

 

199

 

 

 

199

 

 

 

199

 

3.75% convertible notes due 2028(f)

 

 

575

 

 

 

575

 

 

 

575

 

2.75% SiriusXM exchangeable senior debentures due 2049(f)

 

 

586

 

 

 

586

 

 

 

586

 

SiriusXM margin loan

 

 

875

 

 

 

875

 

 

 

775

 

Other subsidiary debt(g)

 

 

723

 

 

 

723

 

 

 

635

 

0.5% Live Nation exchangeable senior debentures due 2050(f)

 

 

920

 

 

 

NA

 

 

NA

Live Nation margin loan

 

 

 

 

 

NA

 

 

NA

Total Attributed Liberty SiriusXM Group Debt

 

$

12,648

 

 

$

11,728

 

 

$

11,540

 

Unamortized discount, fair market value adjustment and deferred loan costs

 

 

82

 

 

 

(18

)

 

 

 

Total Attributed Liberty SiriusXM Group Debt (GAAP)

 

$

12,730

 

 

$

11,710

 

 

$

11,540

 

 

 

 

 

 

 

 

 

 

 

2.25% convertible notes due 2027(f)

 

 

475

 

 

 

475

 

 

 

475

 

Formula 1 term loan and revolving credit facility

 

 

2,416

 

 

 

2,416

 

 

 

2,411

 

Other corporate level debt

 

 

61

 

 

 

61

 

 

 

59

 

Total Attributed Formula One Group Debt

 

$

2,952

 

 

$

2,952

 

 

$

2,945

 

Fair market value adjustment

 

 

(2

)

 

 

(2

)

 

 

(48

)

Total Attributed Formula One Group Debt (GAAP)

 

$

2,950

 

 

$

2,950

 

 

$

2,897

 

Formula 1 leverage(h)

 

 

2.2x

 

 

2.2x

 

 

2.2x

 

 

 

 

 

 

 

 

 

 

0.5% Live Nation exchangeable senior debentures due 2050(f)

 

 

NA

 

 

920

 

 

 

62

 

2.375% Live Nation exchangeable senior debentures due 2053(f)

 

 

NA

 

 

NA

 

 

1,150

 

Live Nation margin loan

 

 

NA

 

 

 

 

 

 

Total Attributed Liberty Live Group Debt

 

 

NA

 

$

920

 

 

$

1,212

 

Unamortized discount, fair market value adjustment and deferred loan costs

 

 

NA

 

 

100

 

 

 

14

 

Total Attributed Liberty Live Group Debt (GAAP)

 

 

NA

 

$

1,020

 

 

$

1,226

 

 

 

 

 

 

 

 

 

 

 

Atlanta Braves debt

 

 

543

 

 

 

NA

 

 

NA

Total Attributed Braves Group Debt

 

$

543

 

 

 

NA

 

 

NA

Deferred loan costs

 

 

(4

)

 

 

NA

 

 

NA

Total Attributed Braves Group Debt (GAAP)

 

$

539

 

 

 

NA

 

 

NA

 

 

 

 

 

 

 

 

 

 

Total Liberty Media Corporation Debt (GAAP)

 

$

16,219

 

 

$

15,680

 

 

$

15,663

 

____________________

a)

Includes $51 million and $53 million of cash held at SiriusXM as of June 30, 2023 and September 30, 2023, respectively. Cash as of June 30, 2023 adjusted for Split-Off and Reclassification reflects $71 million payment from Formula One Group to Liberty SiriusXM Group to settle intergroup interest subsequent to June 30, 2023.

b)

Includes $1,055 million and $947 million of cash held at F1 as of June 30, 2023 and September 30, 2023, respectively. Cash as of June 30, 2023 adjusted for Split-Off and Reclassification reflects $71 million payment from Formula One Group to Liberty SiriusXM Group to settle intergroup interest and $67 million of cash on hand contributed to Liberty Live Group subsequent to June 30, 2023.

c)

In connection with the Reclassification, Liberty Live Group was capitalized with $100 million of cash from Formula One Group, of which approximately $33 million came from the partial liquidation of monetizable public holdings previously held at Formula One Group.

d)

Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $52 million as of June 30, 2023.

e)

Outstanding principal amount of Senior Notes or Term Loan with no reduction for the net unamortized discount.

f)

Face amount of the convertible notes and exchangeable debentures with no fair market value adjustment.

g)

Includes SiriusXM revolving credit facility and term loan.

h)

Net debt to covenant OIBDA ratio of F1 operating business as defined in F1’s credit facilities for covenant calculations.

 

Liberty Media and its consolidated subsidiaries are in compliance with their debt covenants as of September 30, 2023.

The cash and debt narrative below compares financial information as of June 30, 2023 adjusted for the Split-Off and Reclassification to financial information as of September 30, 2023. Financial information for the period ended June 30, 2023 unadjusted for the Split-Off and Reclassification can be found in the table above.

Total cash and cash equivalents attributed to Liberty SiriusXM Group decreased $55 million in the third quarter as net debt repayment at both Liberty SiriusXM Group and SiriusXM, capital expenditures and return of capital at SiriusXM more than offset cash from operations at SiriusXM. Included in the cash and cash equivalents balance attributed to Liberty SiriusXM Group at September 30, 2023 is $53 million held at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a non-controlling interest, therefore Liberty Media does not have ready access to SiriusXM’s cash balance. Liberty SiriusXM Group received $78 million of dividends from SiriusXM during the quarter.

Total debt attributed to Liberty SiriusXM Group decreased $188 million during the quarter as Liberty SiriusXM Group paid down $100 million under its SiriusXM margin loan and SiriusXM reduced borrowing under its revolving credit facility. In October, Liberty SiriusXM Group retired the remaining $199 million outstanding principal amount of its 1.375% cash convertible notes with cash on hand.

Total cash and cash equivalents attributed to Formula One Group increased $119 million during the quarter as cash from operations at F1 more than offset capital expenditures primarily related to the Las Vegas Grand Prix. During the third quarter, Formula One Group announced it entered into a definitive agreement to acquire Quint. The transaction is expected to close by year-end and will be funded with Formula One Group cash on hand.

Total debt at Formula One Group was relatively flat in the third quarter. Formula 1 repriced its $1.7 billion Term Loan B facility on October 4, 2023, reducing the margin from 3.00% to 2.25%.

Total cash and cash equivalents attributed to Liberty Live Group increased $215 million and total debt increased $292 million during the third quarter. During the quarter, Liberty Live Group issued $1.15 billion aggregate principal amount of 2.375% exchangeable senior debentures due 2053. A portion of the proceeds were used to repurchase $858 million aggregate adjusted principal amount of its 0.5% exchangeable senior debentures due 2050 for a total cost of $918 million. Liberty Live Group expects to use the remaining net proceeds of the offering to settle its remaining 0.5% exchangeable senior debentures ahead of the September 2024 put/call date, and for general corporate purposes. On September 5, 2023, the Live Nation margin loan was amended, extending the maturity date to September 2026 while other terms remain unchanged.

In connection with the Reclassification, the 3.75% Liberty SiriusXM Group convertible notes due 2028 (convertible into LSXMA) and the 2.25% Formula One Group convertible notes due 2027 (convertible into FWONK) were adjusted to provide for the conversion and settlement of the notes into the reclassified Liberty SiriusXM Group and Formula One Group equities, respectively, at new conversion rates in accordance with each respective bond indenture. As of September 30, 2023, the conversion rate for the 3.75% notes is 35.4563 shares of LSXMA and the conversion rate for the 2.25% notes is 12.0505 shares of FWONK per $1,000 principal amount of the respective notes.

Important Notice: Liberty Media Corporation (Nasdaq: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) will discuss Liberty Media's earnings release on a conference call which will begin at 10:00 a.m. (E.T.) on November 3, 2023. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13736986 at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast go to https://www.libertymedia.com/investors/news-events/ir-calendar. Links to this press release will also be available on the Liberty Media website.

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial performance and prospects, the proposed combination of Liberty SiriusXM Group and SiriusXM, the Las Vegas Grand Prix, the proposed transaction with QuintEvents LLC, the continuation of our stock repurchase plan, our environmental and social initiatives and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, the satisfaction of all conditions to the proposed combination of Liberty SiriusXM Group and SiriusXM, the satisfaction of all conditions to closing for the transaction with QuintEvents LLC, possible changes in market acceptance of new products or services, regulatory matters affecting our businesses, the unfavorable outcome of pending or future litigation, the failure to realize benefits of acquisitions, rapid technological and industry change, failure of third parties to perform, continued access to capital on terms acceptable to Liberty Media and changes in law, including consumer protection laws, and their enforcement. These forward-looking statements speak only as of the date of this press release, and Liberty Media expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Liberty Media's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of Liberty Media, including Amendment No. 5 to Liberty Media’s Registration Statement on Form S-4 filed on June 8, 2023 and the most recent Forms 10-K and 10-Q, for additional information about Liberty Media and about the risks and uncertainties related to Liberty Media's business which may affect the statements made in this press release.

 

LIBERTY MEDIA CORPORATION

BALANCE SHEET INFORMATION

September 30, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

 

 

SiriusXM

 

One

 

Live

 

Intergroup

 

Consolidated

 

 

Group

 

Group

 

Group

 

Eliminations

 

Liberty

 

 

amounts in millions

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

327

 

 

1,470

 

 

315

 

 

 

 

2,112

 

Trade and other receivables, net

 

 

659

 

 

149

 

 

 

 

 

 

808

 

Other current assets

 

 

357

 

 

348

 

 

 

 

 

 

705

 

Total current assets

 

 

1,343

 

 

1,967

 

 

315

 

 

 

 

3,625

 

Investments in affiliates, accounted for using the equity method

 

 

705

 

 

43

 

 

397

 

 

 

 

1,145

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

3,083

 

 

874

 

 

 

 

 

 

3,957

 

Accumulated depreciation

 

 

(1,829

)

 

(123

)

 

 

 

 

 

(1,952

)

 

 

 

1,254

 

 

751

 

 

 

 

 

 

2,005

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

15,209

 

 

3,956

 

 

 

 

 

 

19,165

 

FCC licenses

 

 

8,600

 

 

 

 

 

 

 

 

8,600

 

Other

 

 

1,242

 

 

 

 

 

 

 

 

1,242

 

 

 

 

25,051

 

 

3,956

 

 

 

 

 

 

29,007

 

Intangible assets subject to amortization, net

 

 

1,017

 

 

2,924

 

 

 

 

 

 

3,941

 

Other assets

 

 

567

 

 

913

 

 

479

 

 

(167

)

 

1,792

 

Total assets

 

$

29,937

 

 

10,554

 

 

1,191

 

 

(167

)

 

41,515

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable)

 

$

51

 

 

(53

)

 

2

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

1,323

 

 

390

 

 

2

 

 

 

 

1,715

 

Current portion of debt

 

 

730

 

 

32

 

 

65

 

 

 

 

827

 

Deferred revenue

 

 

1,248

 

 

776

 

 

 

 

 

 

2,024

 

Other current liabilities

 

 

78

 

 

32

 

 

 

 

 

 

110

 

Total current liabilities

 

 

3,430

 

 

1,177

 

 

69

 

 

 

 

4,676

 

Long-term debt

 

 

10,810

 

 

2,865

 

 

1,161

 

 

 

 

14,836

 

Deferred income tax liabilities

 

 

2,207

 

 

 

 

 

 

(167

)

 

2,040

 

Other liabilities

 

 

575

 

 

149

 

 

 

 

 

 

724

 

Total liabilities

 

 

17,022

 

 

4,191

 

 

1,230

 

 

(167

)

 

22,276

 

Equity / Attributed net assets

 

 

9,946

 

 

6,363

 

 

(62

)

 

 

 

16,247

 

Noncontrolling interests in equity of subsidiaries

 

 

2,969

 

 

 

 

23

 

 

 

 

2,992

 

Total liabilities and equity

 

$

29,937

 

 

10,554

 

 

1,191

 

 

(167

)

 

41,515

 

 

LIBERTY MEDIA CORPORATION

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

 

 

SiriusXM

 

One

 

Live

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Revenue:

 

 

 

 

 

 

 

 

 

 

 

Sirius XM Holdings revenue

 

$

2,271

 

 

 

 

 

 

 

 

2,271

 

Formula 1 revenue

 

 

 

 

887

 

 

 

 

 

 

887

 

Other revenue

 

 

 

 

 

 

 

 

49

 

 

49

 

Total revenue

 

 

2,271

 

 

887

 

 

 

 

49

 

 

3,207

 

Operating costs and expenses, including stock-based compensation:

 

 

 

 

 

 

 

 

 

 

 

Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):

 

 

 

 

 

 

 

 

 

 

 

Revenue share and royalties

 

 

730

 

 

 

 

 

 

 

 

730

 

Programming and content(1)

 

 

153

 

 

 

 

 

 

 

 

153

 

Customer service and billing(1)

 

 

117

 

 

 

 

 

 

 

 

117

 

Other(1)

 

 

57

 

 

 

 

 

 

 

 

57

 

Cost of Formula 1 revenue (exclusive of depreciation shown separately below)

 

 

 

 

615

 

 

 

 

 

 

615

 

Subscriber acquisition costs

 

 

87

 

 

 

 

 

 

 

 

87

 

Other operating expenses(1)

 

 

72

 

 

 

 

 

 

38

 

 

110

 

Selling, general and administrative(1)

 

 

376

 

 

79

 

 

5

 

 

9

 

 

469

 

Impairment, restructuring and acquisition costs, net of recoveries

 

 

6

 

 

 

 

 

 

 

 

6

 

Depreciation and amortization

 

 

145

 

 

86

 

 

 

 

3

 

 

234

 

 

 

 

1,743

 

 

780

 

 

5

 

 

50

 

 

2,578

 

Operating income (loss)

 

 

528

 

 

107

 

 

(5

)

 

(1

)

 

629

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(135

)

 

(56

)

 

(2

)

 

(3

)

 

(196

)

Share of earnings (losses) of affiliates, net

 

 

45

 

 

2

 

 

90

 

 

1

 

 

138

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

17

 

 

66

 

 

(72

)

 

 

 

11

 

Unrealized gains (losses) on intergroup interests

 

 

4

 

 

16

 

 

 

 

(20

)

 

 

Other, net

 

 

6

 

 

14

 

 

(35

)

 

1

 

 

(14

)

 

 

 

(63

)

 

42

 

 

(19

)

 

(21

)

 

(61

)

Earnings (loss) before income taxes

 

 

465

 

 

149

 

 

(24

)

 

(22

)

 

568

 

Income tax (expense) benefit

 

 

(100

)

 

(31

)

 

5

 

 

1

 

 

(125

)

Net earnings (loss)

 

 

365

 

 

118

 

 

(19

)

 

(21

)

 

443

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

58

 

 

 

 

 

 

 

 

58

 

Net earnings (loss) attributable to Liberty stockholders

 

$

307

 

 

118

 

 

(19

)

 

(21

)

 

385

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

Programming and content

 

 

10

 

 

 

 

 

 

 

 

10

 

Customer service and billing

 

 

1

 

 

 

 

 

 

 

 

1

 

Other

 

 

2

 

 

 

 

 

 

 

 

2

 

Other operating expenses

 

 

11

 

 

 

 

 

 

 

 

11

 

Selling, general and administrative

 

 

33

 

 

4

 

 

1

 

 

1

 

 

39

 

Stock compensation expense

 

$

57

 

4

 

1

 

1

 

63

 

LIBERTY MEDIA CORPORATION

STATEMENT OF OPERATIONS INFORMATION

Three months ended September 30, 2022 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

 

 

 

 

 

SiriusXM

 

One

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Revenue:

 

 

 

 

 

 

 

 

 

Sirius XM Holdings revenue

 

$

2,280

 

 

 

 

 

 

2,280

 

Formula 1 revenue

 

 

 

 

715

 

 

 

 

715

 

Other revenue

 

 

 

 

 

 

252

 

 

252

 

Total revenue

 

 

2,280

 

 

715

 

 

252

 

 

3,247

 

Operating costs and expenses, including stock-based compensation:

 

 

 

 

 

 

 

 

 

Cost of Sirius XM Holdings services (exclusive of depreciation shown separately below):

 

 

 

 

 

 

 

 

 

Revenue share and royalties

 

 

709

 

 

 

 

 

 

709

 

Programming and content(1)

 

 

156

 

 

 

 

 

 

156

 

Customer service and billing(1)

 

 

122

 

 

 

 

 

 

122

 

Other(1)

 

 

54

 

 

 

 

 

 

54

 

Cost of Formula 1 revenue (exclusive of depreciation shown separately below)

 

 

 

 

494

 

 

 

 

494

 

Subscriber acquisition costs

 

 

86

 

 

 

 

 

 

86

 

Other operating expenses(1)

 

 

69

 

 

 

 

184

 

 

253

 

Selling, general and administrative(1)

 

 

424

 

 

68

 

 

33

 

 

525

 

Impairment, restructuring and acquisition costs, net of recoveries

 

 

69

 

 

 

 

5

 

 

74

 

Depreciation and amortization

 

 

157

 

 

89

 

 

22

 

 

268

 

 

 

 

1,846

 

 

651

 

 

244

 

 

2,741

 

Operating income (loss)

 

 

434

 

 

64

 

 

8

 

 

506

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(130

)

 

(41

)

 

(8

)

 

(179

)

Share of earnings (losses) of affiliates, net

 

 

104

 

 

1

 

 

6

 

 

111

 

Realized and unrealized gains (losses) on financial instruments, net

 

 

76

 

 

24

 

 

6

 

 

106

 

Unrealized gains (losses) on intergroup interests

 

 

(16

)

 

47

 

 

(31

)

 

 

Other, net

 

 

13

 

 

7

 

 

 

 

20

 

 

 

 

47

 

 

38

 

 

(27

)

 

58

 

Earnings (loss) before income taxes

 

 

481

 

 

102

 

 

(19

)

 

564

 

Income tax (expense) benefit

 

 

(135

)

 

8

 

 

(3

)

 

(130

)

Net earnings (loss)

 

 

346

 

 

110

 

 

(22

)

 

434

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

41

 

 

5

 

 

 

 

46

 

Less net earnings (loss) attributable to redeemable noncontrolling interest

 

 

 

 

(3

)

 

 

 

(3

)

Net earnings (loss) attributable to Liberty stockholders

 

$

305

 

 

108

 

 

(22

)

 

391

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

Programming and content

 

 

10

 

 

 

 

 

 

10

 

Customer service and billing

 

 

1

 

 

 

 

 

 

1

 

Other

 

 

1

 

 

 

 

 

 

1

 

Other operating expenses

 

 

10

 

 

 

 

 

 

10

 

Selling, general and administrative

 

 

31

 

 

5

 

 

3

 

 

39

 

Stock compensation expense

 

$

53

 

 

5

 

 

3

 

 

61

 

 

LIBERTY MEDIA CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

 

 

SiriusXM

 

One

 

Live

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

802

 

 

124

 

 

(19

)

 

(109

)

 

798

 

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

460

 

 

254

 

 

 

 

37

 

 

751

 

Stock-based compensation

 

 

151

 

 

14

 

 

1

 

 

7

 

 

173

 

Non-cash impairment and restructuring costs

 

 

21

 

 

 

 

 

 

 

 

21

 

Share of (earnings) loss of affiliates, net

 

 

(117

)

 

1

 

 

(90

)

 

(12

)

 

(218

)

Unrealized (gains) losses on intergroup interests, net

 

 

(68

)

 

(15

)

 

 

 

83

 

 

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

145

 

 

(83

)

 

72

 

 

(3

)

 

131

 

Deferred income tax expense (benefit)

 

 

(1

)

 

19

 

 

(4

)

 

(5

)

 

9

 

Intergroup tax allocation

 

 

136

 

 

(135

)

 

(1

)

 

 

 

 

Intergroup tax (payments) receipts

 

 

(90

)

 

91

 

 

 

 

(1

)

 

 

Other charges (credits), net

 

 

(10

)

 

6

 

 

34

 

 

4

 

 

34

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Current and other assets

 

 

5

 

 

(122

)

 

(10

)

 

(34

)

 

(161

)

Payables and other liabilities

 

 

(136

)

 

400

 

 

14

 

 

65

 

 

343

 

Net cash provided (used) by operating activities

 

 

1,298

 

 

554

 

 

(3

)

 

32

 

 

1,881

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in equity method affiliates and debt and equity securities

 

 

(44

)

 

(173

)

 

 

 

 

 

(217

)

Cash proceeds from dispositions

 

 

 

 

110

 

 

1

 

 

 

 

111

 

Capital expended for property and equipment, including internal-use software and website development

 

 

(520

)

 

(308

)

 

 

 

(35

)

 

(863

)

Other investing activities, net

 

 

(1

)

 

(20

)

 

 

 

 

 

(21

)

Net cash provided (used) by investing activities

 

 

(565

)

 

(391

)

 

1

 

 

(35

)

 

(990

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

2,601

 

 

 

 

1,135

 

 

30

 

 

3,766

 

Repayments of debt

 

 

(3,306

)

 

(64

)

 

(918

)

 

(20

)

 

(4,308

)

Intergroup (repayments) borrowings

 

 

273

 

 

(273

)

 

 

 

 

 

 

Subsidiary shares repurchased by subsidiary

 

 

(274

)

 

 

 

 

 

 

 

(274

)

Cash dividends paid by subsidiary

 

 

(48

)

 

 

 

 

 

 

 

(48

)

Taxes paid in lieu of shares issued for stock-based compensation

 

 

(52

)

 

(8

)

 

 

 

(1

)

 

(61

)

Atlanta Braves Holdings, Inc. Split-Off

 

 

 

 

 

 

 

 

(188

)

 

(188

)

Reclassification

 

 

 

 

(100

)

 

100

 

 

 

 

 

Other financing activities, net

 

 

38

 

 

19

 

 

 

 

9

 

 

66

 

Net cash provided (used) by financing activities

 

 

(768

)

 

(426

)

 

317

 

 

(170

)

 

(1,047

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(35

)

 

(263

)

 

315

 

 

(173

)

 

(156

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

370

 

 

1,733

 

 

NA

 

 

173

 

 

2,276

 

Cash, cash equivalents and restricted cash at end of period

 

$

335

 

 

1,470

 

 

315

 

 

 

 

2,120

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

327

 

 

1,470

 

 

315

 

 

NA

 

 

2,112

 

Restricted cash included in other assets

 

 

8

 

 

 

 

 

 

NA

 

 

8

 

Total cash and cash equivalents and restricted cash at end of period

 

$

335

 

 

1,470

 

 

315

 

 

NA

 

 

2,120

 

   

LIBERTY MEDIA CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

Nine months ended September 30, 2022 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

 

 

 

 

 

SiriusXM

 

One

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

1,188

 

 

187

 

 

29

 

 

1,404

 

Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

461

 

 

272

 

 

57

 

 

790

 

Stock-based compensation

 

 

152

 

 

12

 

 

9

 

 

173

 

Non-cash impairment and restructuring costs

 

 

68

 

 

 

 

5

 

 

73

 

Share of (earnings) loss of affiliates, net

 

 

(140

)

 

 

 

(18

)

 

(158

)

Unrealized (gains) losses on intergroup interests, net

 

 

31

 

 

(26

)

 

(5

)

 

 

Realized and unrealized (gains) losses on financial instruments, net

 

 

(433

)

 

(100

)

 

(12

)

 

(545

)

Deferred income tax expense (benefit)

 

 

267

 

 

16

 

 

(6

)

 

277

 

Intergroup tax allocation