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Liberty Media Corporation Reports Second Quarter 2024 Financial Results

Liberty Media Corporation (“Liberty Media” or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today reported second quarter 2024 results. Headlines include(1):

  • Attributed to Liberty SiriusXM Group
    • SiriusXM reported second quarter 2024 operating and financial results
      • Second quarter 2024 revenue of $2.18 billion
      • Ad revenue of $443 million
      • Net income of $316 million; diluted EPS of $0.08
      • Adjusted EBITDA(2) of $702 million
      • Free cash flow(2) of $343 million
      • SiriusXM reiterated 2024 financial guidance
    • Liberty Media’s ownership of SiriusXM was 83.3% as of July 30th
    • Expect to complete planned combination of Liberty SiriusXM Group and SiriusXM on September 9th
    • Liberty repaid $35 million under SiriusXM margin loan in second quarter
  • Attributed to Formula One Group
    • On track to complete MotoGP acquisition by year-end 2024
    • F1 announced 2025 Sprint calendar across China, Miami, Belgium, Austin, Brazil and Qatar
    • Expanded partnership with Las Vegas Convention and Visitors Authority to Official Partner of F1
  • Attributed to Liberty Live Group
    • Fair value of Live Nation investment was $6.5 billion as of June 30th

“We are excited that the combination of Liberty SiriusXM Group with SiriusXM is expected to close on September 9th. SiriusXM drove sequential adjusted EBITDA and free cash flow improvement in the quarter, demonstrating their commitment to strong financial results while supporting ongoing growth initiatives,” said Greg Maffei, Liberty Media President and CEO. “Formula 1 is having an incredible season with particularly high engagement in growth markets. Five races have already set US live viewership records for their events, and we look forward to our new opportunities ahead including Apple’s highly anticipated F1 film which will debut in June 2025. Live Nation achieved record concerts profitability and global demand hasn’t slowed as indicators point to another record year ahead.”

Discussion of Results

Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2024 to the same period in 2023.

LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to Liberty SiriusXM Group for the second quarter of 2024. In the second quarter, $11 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty SiriusXM Group.

 

 

2Q23

 

2Q24

 

% Change

 

 

amounts in millions

 

 

 

Liberty SiriusXM Group

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

SiriusXM

 

$

2,250

 

 

$

2,178

 

 

 

(3

)%

Total Liberty SiriusXM Group

 

$

2,250

 

 

$

2,178

 

 

 

(3

)%

Operating Income (Loss)

 

 

 

 

 

 

 

 

 

SiriusXM

 

 

464

 

 

 

482

 

 

 

4

%

Corporate and other

 

 

(12

)

 

 

(11

)

 

 

8

%

Total Liberty SiriusXM Group

 

$

452

 

 

$

471

 

 

 

4

%

Adjusted OIBDA (Loss)

 

 

 

 

 

 

 

 

 

SiriusXM

 

 

702

 

 

 

688

 

 

 

(2

)%

Corporate and other

 

 

(8

)

 

 

(9

)

 

 

(13

)%

Total Liberty SiriusXM Group

 

$

694

 

 

$

679

 

 

 

(2

)%

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 second quarter results on August 1, 2024. For additional detail on SiriusXM’s financial results for the second 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 second quarter of 2024. In the second quarter, Formula One Group incurred $14 million of corporate level selling, general and administrative expense (including stock-based compensation expense).

 

 

2Q23

 

2Q24

 

 

amounts in millions

Formula One Group

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

Formula 1

 

$

724

 

 

$

871

 

Corporate and other

 

 

 

 

 

141

 

Intergroup elimination

 

 

 

 

 

(24

)

Total Formula One Group

 

$

724

 

 

$

988

 

Operating Income (Loss)

 

 

 

 

 

 

Formula 1

 

$

72

 

 

$

84

 

Corporate and other

 

 

(20

)

 

 

(25

)

Total Formula One Group

 

$

52

 

 

$

59

 

Adjusted OIBDA (Loss)

 

 

 

 

 

 

Formula 1

 

$

155

 

 

$

160

 

Corporate and other

 

 

(14

)

 

 

5

 

Total Formula One Group

 

$

141

 

 

$

165

 

F1 Operating Results

“The F1 season is seeing phenomenal racing, with seven different winners through fourteen races and tighter gaps across the grid. Social media followers are up over 30% across F1 platforms and we had 3.7 million race attendees through the first half of the season with ten sellout crowds,” said Stefano Domenicali, Formula 1 President and CEO. “F1 Academy is off to a strong start in its first season running all events alongside F1 race weekends. Together with the Sprint and FIA F2 and F3, it is adding to the exciting on-track action and bringing added value to our fans, promoters and sponsors.”

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

 

2Q23

 

2Q24

 

% Change

 

amounts in millions

 

 

Primary Formula 1 revenue

$

618

 

 

$

739

 

 

20

%

Other Formula 1 revenue

 

106

 

 

 

132

 

 

25

%

Total Formula 1 revenue

$

724

 

 

$

871

 

 

20

%

Operating expenses (excluding stock-based compensation):

 

 

 

 

 

 

 

Team payments

 

(344

)

 

 

(435

)

 

(26

)%

Other cost of Formula 1 revenue

 

(175

)

 

 

(210

)

 

(20

)%

Cost of Formula 1 revenue

$

(519

)

 

$

(645

)

 

(24

)%

Selling, general and administrative expenses

 

(50

)

 

 

(66

)

 

(32

)%

Adjusted OIBDA

$

155

 

 

$

160

 

 

3

%

Stock-based compensation

 

(1

)

 

 

(1

)

 

%

Depreciation and Amortization(a)

 

(82

)

 

 

(75

)

 

9

%

Operating income (loss)

$

72

 

 

$

84

 

 

17

%

 

 

 

 

 

 

 

 

Number of races in period

 

6

 

 

 

8

 

 

 

___________________________  

a)

 

Includes $74 million and $61 million of amortization related to purchase accounting for the periods ended June 30, 2023 and June 30, 2024, 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 second quarter of 2024, compared to six races held in the second quarter of 2023. There are 24 events scheduled for the 2024 race calendar, compared to 22 events held in 2023.

Primary F1 revenue increased in the second quarter with growth across media rights and sponsorship partly driven by two more races held in the current period, which resulted in a greater proportion of season-based revenue recognized, as well as contractual increases in fees. Media rights revenue also benefited from continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to the impact of the mix of races on event specific fees and recognition of revenue from new sponsors. Race promotion revenue was relatively flat in the second quarter as fees from the additional races were offset by the different mix of events compared to the prior year period. Other F1 revenue increased in the second quarter primarily due to higher hospitality, freight, travel, technical services and F2 and F3 income driven by the additional races held in the current period.

Operating income and Adjusted OIBDA(2) increased in the second quarter. Team payments increased due to the pro rata recognition of payments across the race season with two more races held in the current period and the expectation of higher 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 commissions and partner servicing costs associated with growth in Primary F1 revenue streams as well as higher hospitality, FIA regulatory, digital, technical and travel costs from the additional races held in the current period. Other cost of F1 revenue in the second quarter was also impacted by higher costs associated with F1 Academy and lease expense for the Las Vegas Grand Prix Plaza which wasn’t incurred in the prior year. Selling, general and administrative expense increased due to higher personnel, IT and property costs as well as legal and other professional fees, partially offset by lower marketing costs, foreign exchange favorability and bad debt recoveries.

Corporate and Other Operating Results

Liberty closed the Quint acquisition on January 2nd and began consolidating Quint results within the Corporate and Other segment. Corporate and Other revenue increased in the second quarter due to the Quint acquisition and $6 million of rental income related to the Las Vegas Grand Prix Plaza. Quint’s revenue is seasonal around its largest events, which are generally during the second and fourth quarters, and in the second quarter Quint results were primarily driven by the Kentucky Derby and F1 Experiences across the eight races held. Corporate and Other Adjusted OIBDA for the second quarter of 2024 includes the rental income related to the Las Vegas Grand Prix Plaza, Quint results and other corporate overhead.

The businesses and assets attributed to Formula One Group consist primarily of Liberty Media’s subsidiaries, F1 and Quint.

LIBERTY LIVE GROUP – In the second quarter, $2 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 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 May 1 through July 31, 2024. The total remaining repurchase authorization for Liberty Media as of August 1, 2024 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 August 8, 2024. 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 June 30, 2024.

Fair Value of Corporate Public Holdings

 

 

 

 

 

 

 

(amounts in millions)

 

3/31/2024

 

6/30/2024

Liberty SiriusXM Group

 

 

N/A

 

 

N/A

 

 

 

 

 

 

 

Formula One Group

 

 

 

 

 

 

Other Monetizable Public Holdings(a)

 

 

50

 

 

50

Total Formula One Group

 

$

50

 

$

50

 

 

 

 

 

 

 

Liberty Live Group

 

 

 

 

 

 

Live Nation Investment(b)

 

 

7,366

 

 

6,529

Other Monetizable Public Holdings(a)

 

 

125

 

 

-

Total Liberty Live Group

 

$

7,491

 

$

6,529

 

 

 

 

 

 

 

Total Liberty Media

 

$

7,541

 

$

6,579

___________________________  

a)

 

Represents the carrying value of other public holdings that are accounted for at fair value. Formula One Group purchased $50 million of time deposits during the first quarter of 2024 which are classified as short term marketable securities. Liberty Live Group liquidated $107 million of exchange-traded funds during the second quarter of 2024.

b)

 

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 $290 million and $319 million as of March 31, 2024 and June 30, 2024, respectively.

Cash and Debt

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

(amounts in millions)

 

3/31/2024

 

6/30/2024

Cash and Cash Equivalents Attributable to:

 

 

 

 

 

 

Liberty SiriusXM Group(a)

 

$

135

 

 

$

188

 

Formula One Group(b)

 

 

1,233

 

 

 

1,491

 

Liberty Live Group

 

 

298

 

 

 

406

 

Total Consolidated Cash and Cash Equivalents (GAAP)

 

$

1,666

 

 

$

2,085

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

SiriusXM senior notes(c)

 

$

8,750

 

 

$

8,750

 

3.75% convertible notes due 2028(d)

 

 

575

 

 

 

575

 

2.75% SiriusXM exchangeable senior debentures due 2049(d)

 

 

585

 

 

 

585

 

SiriusXM margin loan

 

 

630

 

 

 

595

 

Other subsidiary debt(e)

 

 

530

 

 

 

350

 

Total Attributed Liberty SiriusXM Group Debt

 

$

11,070

 

 

$

10,855

 

Unamortized discount, fair market value adjustment and deferred loan costs

 

 

52

 

 

 

(42

)

Total Attributed Liberty SiriusXM Group Debt (GAAP)

 

$

11,122

 

 

$

10,813

 

 

 

 

 

 

 

 

2.25% convertible notes due 2027(d)

 

 

475

 

 

 

475

 

Formula 1 term loan and revolving credit facility

 

 

2,398

 

 

 

2,389

 

Other corporate level debt

 

 

56

 

 

 

56

 

Total Attributed Formula One Group Debt

 

$

2,929

 

 

$

2,920

 

Fair market value adjustment

 

 

(27

)

 

 

(8

)

Total Attributed Formula One Group Debt (GAAP)

 

$

2,902

 

 

$

2,912

 

Formula 1 leverage(f)

 

 

1.7x

 

 

 

1.3x

 

 

 

 

 

 

 

 

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

 

 

62

 

 

 

62

 

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

 

 

1,150

 

 

 

1,150

 

Live Nation margin loan

 

 

 

 

 

 

Total Attributed Liberty Live Group Debt

 

$

1,212

 

 

$

1,212

 

Unamortized discount, fair market value adjustment and deferred loan costs

 

 

206

 

 

 

91

 

Total Attributed Liberty Live Group Debt (GAAP)

 

$

1,418

 

 

$

1,303

 

 

 

 

 

 

 

 

Total Liberty Media Corporation Debt (GAAP)

 

$

15,442

 

 

$

15,028

 

___________________________  

a)

 

Includes $71 million and $100 million of cash held at SiriusXM as of March 31, 2024 and June 30, 2024, respectively.

b)

 

Includes $1,016 million and $1,245 million of cash held at F1 as of March 31, 2024 and June 30, 2024, respectively, and $60 million and $58 million of cash held at Quint as of March 31, 2024 and June 30, 2024, respectively.

c)

 

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

d)

 

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

e)

 

Includes SiriusXM revolving credit facility and term loan.

f)

 

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 June 30, 2024.

Total cash and cash equivalents attributed to Liberty SiriusXM Group increased $53 million in the second quarter as cash from operations at SiriusXM more than offset debt repayment at both SiriusXM and Liberty SiriusXM Group and capital expenditures and return of capital at SiriusXM. Included in the cash and cash equivalents balance attributed to Liberty SiriusXM Group at June 30, 2024 is $100 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 $86 million of dividends from SiriusXM during the quarter.

Total debt attributed to Liberty SiriusXM Group decreased $215 million during the quarter due to net debt repayment at SiriusXM and Liberty SiriusXM Group repaying $35 million under its SiriusXM margin loan.

Total cash and cash equivalents attributed to Formula One Group increased $258 million during the quarter due to cash from operations at F1. Total debt at Formula One Group was relatively flat in the second quarter.

Total cash and cash equivalents attributed to Liberty Live Group increased $108 million during the second quarter primarily due to the monetization of exchange-traded funds. Total debt attributed to Liberty Live Group was flat during the quarter.

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 August 8, 2024. The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13742818 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 planned combination of Liberty SiriusXM Group and SiriusXM (the “Proposed Combination”), the planned acquisition of MotoGP, expectation’s regarding SiriusXM’s and Live Nation’s businesses 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, the satisfaction of all conditions to closing for the transaction with MotoGP, 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 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

June 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

SiriusXM

 

One

 

Live

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

188

 

 

1,491

 

 

406

 

 

2,085

 

Trade and other receivables, net

 

 

644

 

 

182

 

 

 

 

826

 

Other current assets

 

 

365

 

 

363

 

 

 

 

728

 

Total current assets

 

 

1,197

 

 

2,036

 

 

406

 

 

3,639

 

Investments in affiliates, accounted for using the equity method

 

 

1,601

 

 

37

 

 

345

 

 

1,983

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, at cost

 

 

3,299

 

 

991

 

 

 

 

4,290

 

Accumulated depreciation

 

 

(2,001

)

 

(166

)

 

 

 

(2,167

)

 

 

 

1,298

 

 

825

 

 

 

 

2,123

 

 

 

 

 

 

 

 

 

 

 

Intangible assets not subject to amortization

 

 

 

 

 

 

 

 

 

Goodwill

 

 

15,209

 

 

4,191

 

 

 

 

19,400

 

FCC licenses

 

 

8,600

 

 

 

 

 

 

8,600

 

Other

 

 

1,242

 

 

 

 

 

 

1,242

 

 

 

 

25,051

 

 

4,191

 

 

 

 

29,242

 

Intangible assets subject to amortization, net

 

 

1,001

 

 

2,827

 

 

 

 

3,828

 

Other assets

 

 

673

 

 

894

 

 

249

 

 

1,817

 

Total assets

 

$

30,821

 

 

10,810

 

 

1,000

 

 

42,632

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Intergroup payable (receivable)

 

$

38

 

 

(44

)

 

6

 

 

 

Accounts payable and accrued liabilities

 

 

1,296

 

 

472

 

 

 

 

1,768

 

Current portion of debt

 

 

581

 

 

37

 

 

67

 

 

685

 

Deferred revenue

 

 

1,128

 

 

712

 

 

 

 

1,840

 

Other current liabilities

 

 

142

 

 

37

 

 

 

 

179

 

Total current liabilities

 

 

3,185

 

 

1,214

 

 

73

 

 

4,472

 

Long-term debt

 

 

10,232

 

 

2,875

 

 

1,236

 

 

14,343

 

Deferred income tax liabilities

 

 

2,371

 

 

 

 

(162

)

 

2,210

 

Other liabilities

 

 

1,227

 

 

173

 

 

 

 

1,400

 

Total liabilities

 

 

17,015

 

 

4,262

 

 

1,147

 

 

22,425

 

Equity / Attributed net assets

 

 

10,682

 

 

6,548

 

 

(170

)

 

17,060

 

Noncontrolling interests in equity of subsidiaries

 

 

3,124

 

 

 

 

23

 

 

3,147

 

Total liabilities and equity

 

$

30,821

 

 

10,810

 

 

1,000

 

 

42,632

 

LIBERTY MEDIA CORPORATION

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2024 (unaudited) 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

SiriusXM

 

One

 

Live

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Revenue:

 

 

 

 

 

 

 

 

 

Sirius XM Holdings revenue

 

$

2,178

 

 

 

 

 

 

2,178

 

Formula 1 revenue

 

 

 

 

853

 

 

 

 

853

 

Other revenue

 

 

 

 

135

 

 

 

 

135

 

Total revenue

 

 

2,178

 

 

988

 

 

 

 

3,166

 

Operating costs and expenses, including stock-based compensation:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Revenue share and royalties

 

 

708

 

 

 

 

 

 

708

 

Programming and content(1)

 

 

148

 

 

 

 

 

 

148

 

Customer service and billing(1)

 

 

108

 

 

 

 

 

 

108

 

Other(1)

 

 

59

 

 

 

 

 

 

59

 

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

 

 

 

 

639

 

 

 

 

639

 

Other cost of sales

 

 

 

 

94

 

 

 

 

94

 

Subscriber acquisition costs

 

 

92

 

 

 

 

 

 

92

 

Other operating expenses(1)

 

 

71

 

 

5

 

 

 

 

76

 

Selling, general and administrative(1)

 

 

361

 

 

91

 

 

2

 

 

454

 

Impairment, restructuring and acquisition costs

 

 

4

 

 

11

 

 

 

 

15

 

Depreciation and amortization

 

 

156

 

 

89

 

 

 

 

245

 

 

 

 

1,707

 

 

929

 

 

2

 

 

2,638

 

Operating income (loss)

 

 

471

 

 

59

 

 

(2

)

 

528

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(126

)

 

(53

)

 

(7

)

 

(186

)

Share of earnings (losses) of affiliates, net

 

 

1

 

 

(2

)

 

85

 

 

84

 

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

 

 

82

 

 

(1

)

 

88

 

 

169

 

Other, net

 

 

2

 

 

20

 

 

6

 

 

28

 

 

 

 

(41

)

 

(36

)

 

172

 

 

95

 

Earnings (loss) before income taxes

 

 

430

 

 

23

 

 

170

 

 

623

 

Income tax (expense) benefit

 

 

(81

)

 

1

 

 

(36

)

 

(116

)

Net earnings (loss)

 

 

349

 

 

24

 

 

134

 

 

507

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

50

 

 

 

 

 

 

50

 

Net earnings (loss) attributable to Liberty stockholders

 

$

299

 

 

24

 

 

134

 

 

457

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Programming and content

 

 

8

 

 

 

 

 

 

8

 

Customer service and billing

 

 

1

 

 

 

 

 

 

1

 

Other

 

 

2

 

 

 

 

 

 

2

 

Other operating expenses

 

 

11

 

 

 

 

 

 

11

 

Selling, general and administrative

 

 

26

 

 

6

 

 

1

 

 

33

 

Stock compensation expense

 

$

48

 

 

6

 

 

1

 

55

LIBERTY MEDIA CORPORATION

STATEMENT OF OPERATIONS INFORMATION

Three months ended June 30, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

 

 

 

 

 

SiriusXM

 

One

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Revenue:

 

 

 

 

 

 

 

 

 

Sirius XM Holdings revenue

 

$

2,250

 

 

 

 

 

 

2,250

 

Formula 1 revenue

 

 

 

 

724

 

 

 

 

724

 

Other revenue

 

 

 

 

 

 

270

 

 

270

 

Total revenue

 

 

2,250

 

 

724

 

 

270

 

 

3,244

 

Operating costs and expenses, including stock-based compensation:

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Revenue share and royalties

 

 

732

 

 

 

 

 

 

732

 

Programming and content(1)

 

 

153

 

 

 

 

 

 

153

 

Customer service and billing(1)

 

 

124

 

 

 

 

 

 

124

 

Other(1)

 

 

54

 

 

 

 

 

 

54

 

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

 

 

 

 

519

 

 

 

 

519

 

Subscriber acquisition costs

 

 

93

 

 

 

 

 

 

93

 

Other operating expenses(1)

 

 

83

 

 

 

 

197

 

 

280

 

Selling, general and administrative(1)

 

 

387

 

 

69

 

 

34

 

 

490

 

Impairment, restructuring and acquisition costs

 

 

18

 

 

 

 

1

 

 

19

 

Depreciation and amortization

 

 

154

 

 

84

 

 

19

 

 

257

 

 

 

 

1,798

 

 

672

 

 

251

 

 

2,721

 

Operating income (loss)

 

 

452

 

 

52

 

 

19

 

 

523

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(137

)

 

(54

)

 

(9

)

 

(200

)

Share of earnings (losses) of affiliates, net

 

 

79

 

 

(1

)

 

12

 

 

90

 

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

 

 

(164

)

 

64

 

 

4

 

 

(96

)

Unrealized gains (losses) on intergroup interests

 

 

10

 

 

40

 

 

(50

)

 

 

Other, net

 

 

23

 

 

24

 

 

3

 

 

50

 

 

 

 

(189

)

 

73

 

 

(40

)

 

(156

)

Earnings (loss) before income taxes

 

 

263

 

 

125

 

 

(21

)

 

367

 

Income tax (expense) benefit

 

 

(46

)

 

(10

)

 

(8

)

 

(64

)

Net earnings (loss)

 

 

217

 

 

115

 

 

(29

)

 

303

 

Less net earnings (loss) attributable to the noncontrolling interests

 

 

51

 

 

(1

)

 

 

 

50

 

Net earnings (loss) attributable to Liberty stockholders

 

$

166

 

 

116

 

 

(29

)

 

253

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Programming and content

 

 

8

 

 

 

 

 

 

8

 

Customer service and billing

 

 

2

 

 

 

 

 

 

2

 

Other

 

 

1

 

 

 

 

 

 

1

 

Other operating expenses

 

 

11

 

 

 

 

 

 

11

 

Selling, general and administrative

 

 

24

 

 

5

 

 

3

 

 

32

 

Stock compensation expense

 

$

46

 

 

5

 

 

3

 

 

54

 

LIBERTY MEDIA CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2024 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

Liberty

 

 

 

 

SiriusXM

 

One

 

Live

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

590

 

 

101

 

 

61

 

 

752

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

311

 

 

175

 

 

 

 

486

 

Stock-based compensation

 

 

96

 

 

18

 

 

2

 

 

116

 

Non-cash impairment and restructuring costs

 

 

1

 

 

 

 

 

 

1

 

Share of (earnings) loss of affiliates, net

 

 

(6

)

 

5

 

 

(64

)

 

(65

)

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

 

 

(100

)

 

(47

)

 

(19

)

 

(166

)

Deferred income tax expense (benefit)

 

 

(19

)

 

2

 

 

13

 

 

(4

)

Intergroup tax allocation

 

 

59

 

 

(62

)

 

3

 

 

 

Intergroup tax (payments) receipts

 

 

(83

)

 

80

 

 

3

 

 

 

Other charges (credits), net

 

 

73

 

 

5

 

 

(4

)

 

74

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

Current and other assets

 

 

74

 

 

(79

)

 

2

 

 

(3

)

Payables and other liabilities

 

 

(243

)

 

203

 

 

(4

)

 

(44

)

Net cash provided (used) by operating activities

 

 

753

 

 

401

 

 

(7

)

 

1,147

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Investments in equity method affiliates and debt and equity securities

 

 

(202

)

 

(1

)

 

 

 

(203

)

Cash proceeds from dispositions

 

 

 

 

 

 

107

 

 

107

 

Cash (paid) received for acquisitions, net of cash acquired

 

 

 

 

(205

)

 

 

 

(205

)

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

 

 

(347

)

 

(40

)

 

 

 

(387

)

Other investing activities, net

 

 

(1

)

 

(62

)

 

1

 

 

(62

)

Net cash provided (used) by investing activities

 

 

(550

)

 

(308

)

 

108

 

 

(750

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

1,352

 

 

10

 

 

 

 

1,362

 

Repayments of debt

 

 

(1,605

)

 

(31

)

 

 

 

(1,636

)

Cash dividends paid by subsidiary

 

 

(34

)

 

 

 

 

 

(34

)

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

 

 

(23

)

 

(7

)

 

(1

)

 

(31

)

Other financing activities, net

 

 

(4

)

 

34

 

 

1

 

 

31

 

Net cash provided (used) by financing activities

 

 

(314

)

 

6

 

 

 

 

(308

)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

 

 

 

 

(8

)

 

 

 

(8

)

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

 

 

(111

)

 

91

 

 

101

 

 

81

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

315

 

 

1,408

 

 

305

 

 

2,028

 

Cash, cash equivalents and restricted cash at end of period

 

$

204

 

 

1,499

 

 

406

 

 

2,109

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

188

 

 

1,491

 

 

406

 

 

2,085

 

Restricted cash included in other current assets

 

 

8

 

 

8

 

 

 

 

16

 

Restricted cash included in other assets

 

 

8

 

 

 

 

 

 

8

 

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

 

$

204

 

 

1,499

 

 

406

 

 

2,109

 

LIBERTY MEDIA CORPORATION

STATEMENT OF CASH FLOWS INFORMATION

Six months ended June 30, 2023 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributed

 

 

 

 

Liberty

 

Formula

 

 

 

 

 

 

SiriusXM

 

One

 

Braves

 

Consolidated

 

 

Group

 

Group

 

Group

 

Liberty

 

 

amounts in millions

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Net earnings (loss)

 

$

437

 

 

6

 

 

(88

)

 

355

 

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

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

315

 

 

168

 

 

34

 

 

517

 

Stock-based compensation

 

 

94

 

 

10

 

 

6

 

 

110

 

Non-cash impairment and restructuring costs

 

 

21

 

 

 

 

 

 

21

 

Share of (earnings) loss of affiliates, net

 

 

(72

)

 

3

 

 

(11

)

 

(80

)

Unrealized (gains) losses on intergroup interests, net

 

 

(64

)

 

1

 

 

63

 

 

 

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

 

 

162

 

 

(17

)

 

(3

)

 

142

 

Deferred income tax expense (benefit)

 

 

(33

)

 

1

 

 

(3

)

 

(35

)

Intergroup tax allocation

 

 

86

 

 

(84

)

 

(2

)

 

 

Intergroup tax (payments) receipts

 

 

(33

)

 

36

 

 

(3

)

 

 

Other charges (credits), net

 

 

(12

)

 

 

 

4

 

 

(8

)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

Current and other assets

 

 

1

 

 

(91

)

 

(5

)

 

(95

)

Payables and other liabilities

 

 

(48

)

 

275

 

 

44

 

 

271

 

Net cash provided (used) by operating activities

 

 

854

 

 

308

 

 

36

 

 

1,198

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

Investments in equity method affiliates and debt and equity securities

 

 

(41

)

 

(173

)

 

 

 

(214

)

Cash proceeds from dispositions

 

 

(1

)

 

68

 

 

 

 

67

 

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

 

 

(334

)

 

(180

)

 

(30

)

 

(544

)

Other investing activities, net

 

 

(1

)

 

(19

)

 

 

 

(20

)

Net cash provided (used) by investing activities

 

 

(377

)

 

(304

)

 

(30

)

 

(711

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

Borrowings of debt

 

 

2,048

 

 

 

 

16

 

 

2,064

 

Repayments of debt

 

 

(2,563

)

 

(59

)

 

(19

)

 

(2,641

)

Settlement of intergroup interests

 

 

202

 

 

(202

)

 

 

 

 

Subsidiary shares repurchased by subsidiary

 

 

(199

)

 

 

 

 

 

(199

)

Cash dividends paid by subsidiary

 

 

(33

)

 

 

 

 

 

(33

)

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

 

 

(19

)

 

(8

)

 

(1

)

 

(28

)

Other financing activities, net

 

 

36

 

 

19

 

 

8

 

 

63

 

Net cash provided (used) by financing activities

 

 

(528

)

 

(250

)

 

4

 

 

(774

)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash

 

 

 

 

2

 

 

 

 

2

 

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

 

 

(51

)

 

(244

)

 

10

 

 

(285

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

370

 

 

1,733

 

 

173

 

 

2,276

 

Cash, cash equivalents and restricted cash at end of period

 

$

319

 

 

1,489

 

 

183

 

 

1,991

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

311

 

 

1,489

 

 

131

 

 

1,931

 

Restricted cash included in other current assets

 

 

 

 

 

 

52

 

 

52

 

Restricted cash included in other assets

 

 

8

 

 

 

 

 

 

8

 

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

 

$

319

 

 

1,489

 

 

183

 

 

1,991

 

NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES

SCHEDULE 1

To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA, which is a non-GAAP financial measure, for Liberty SiriusXM Group, Formula One Group, Liberty Live Group and the former Braves Group, together with reconciliations to operating income, as determined under GAAP. Liberty Media defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and other related costs and impairment charges.

Liberty Media believes Adjusted OIBDA is an important indicator of the operational strength and performance of its businesses by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, Liberty Media views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operating income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that Liberty Media's management considers in assessing the results of operations and performance of its assets.

The following table provides a reconciliation of Adjusted OIBDA for Liberty Media to operating income (loss) calculated in accordance with GAAP for the three months ended June 30, 2023 and June 30, 2024, respectively.

QUARTERLY SUMMARY

 

 

 

 

 

 

 

 

(amounts in millions)

 

2Q23

 

2Q24

Liberty SiriusXM Group

 

 

 

 

 

 

Operating income

 

$

452

 

$

471

Depreciation and amortization

 

 

154

 

 

156

Stock compensation expense

 

 

46

 

 

48

Legal settlements and reserves

 

 

24

 

 

Impairment, restructuring and acquisition costs(a)

 

 

18

 

 

4

Adjusted OIBDA

 

$

694

 

$

679

 

 

 

 

 

 

 

Formula One Group

 

 

 

 

 

 

Operating income

 

$

52

 

$

59

Depreciation and amortization

 

 

84

 

 

89

Stock compensation expense

 

 

5

 

 

6

Impairment, restructuring and acquisition costs(b)

 

 

 

 

11

Adjusted OIBDA

 

$

141

 

$

165

 

 

 

 

 

 

 

Liberty Live Group

 

 

 

 

 

 

Operating income

 

$

N/A

 

$

(2)

Depreciation and amortization

 

 

N/A

 

 

Stock compensation expense

 

 

N/A

 

 

1

Adjusted OIBDA

 

$

N/A

 

$

(1)

 

 

 

 

 

 

 

Braves Group

 

 

 

 

 

 

Operating income

 

$

19

 

$

N/A

Depreciation and amortization

 

 

19

 

 

N/A

Stock compensation expense

 

 

3

 

 

N/A

Impairment, restructuring and acquisition costs

 

 

1

 

 

N/A

Adjusted OIBDA

 

$

42

 

$

N/A

 

 

 

 

 

 

 

Liberty Media Corporation (Consolidated)

 

 

 

 

 

 

Operating income

 

$

523

 

$

528

Depreciation and amortization

 

 

257

 

 

245

Stock compensation expense

 

 

54

 

 

55

Legal settlements and reserves

 

 

24

 

 

Impairment, restructuring and acquisition costs

 

 

19

 

 

15

Adjusted OIBDA

 

$

877

 

$

843

___________________________  

(a)

 

During the three months ended June 30, 2024, Sirius XM Holdings recorded $3 million associated with severance and other employee costs and $1 million of impairments, primarily related to vacated office space. During the three months ended June 30, 2023, SiriusXM recorded impairments primarily related to terminated software projects of $10 million, severance and other related costs of $5 million and a cost-method investment impairment of $2 million.

(b)

 

During the three months ended June 30, 2024, Formula One Group incurred $11 million of costs related to corporate acquisitions.

SCHEDULE 2

This press release also includes a presentation of adjusted EBITDA of SiriusXM, which is a non-GAAP financial measure used by SiriusXM, together with a reconciliation to SiriusXM's stand-alone net income, as determined under GAAP. SiriusXM defines adjusted EBITDA as net income before interest expense, income tax expense and depreciation and amortization. SiriusXM adjusts EBITDA to exclude the impact of other expense (income) as well as certain other charges discussed below. Adjusted EBITDA is a non-GAAP financial measure that excludes or adjusts for (if applicable): (i) loss on extinguishment of debt, (ii) share-based payment expense, (iii) impairment, restructuring and acquisition costs, (iv) legal settlements/reserves and (v) other significant operating expense (income) that do not relate to the on-going performance of SiriusXM’s business. SiriusXM believes adjusted EBITDA is a useful measure of the underlying trend of its operating performance, which provides useful information about its business apart from the costs associated with its capital structure and purchase price accounting. SiriusXM believes investors find this non-GAAP financial measure useful when analyzing past operating performance with current performance and comparing SiriusXM’s operating performance to the performance of other communications, entertainment and media companies. SiriusXM believes investors use adjusted EBITDA to estimate current enterprise value and to make investment decisions. As a result of large capital investments in SiriusXM’s satellite radio system, its results of operations reflect significant charges for depreciation expense. SiriusXM believes the exclusion of share-based payment expense is useful as it is not directly related to the operational conditions of its business. SiriusXM also believes the exclusion of the legal settlements and reserves, impairment, restructuring and acquisition related costs, to the extent they occur during the period, is useful as they are significant expenses not incurred as part of its normal operations for the period.

Adjusted EBITDA has certain limitations in that it does not take into account the impact to SiriusXM’s consolidated statements of comprehensive income of certain expenses, including share-based payment expense. SiriusXM endeavors to compensate for the limitations of the non-GAAP measure presented by also providing the comparable GAAP measure with equal or greater prominence and descriptions of the reconciling items, including quantifying such items, to derive the non-GAAP measure. Investors that wish to compare and evaluate SiriusXM’s operating results after giving effect for these costs, should refer to net income as disclosed in SiriusXM’s unaudited consolidated statements of comprehensive income. Since adjusted EBITDA is a non-GAAP financial performance measure, SiriusXM’s calculation of adjusted EBITDA may be susceptible to varying calculations; may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The reconciliation of net income to the adjusted EBITDA is calculated as follows:

 

 

Unaudited

 

 

For the Three Months Ended

 

 

June 30,

 

 

2023

 

2024

($ in millions)

 

 

 

 

 

 

Net income:

 

$

310

 

$

316

 

Add back items excluded from Adjusted EBITDA:

 

 

 

 

 

 

Legal settlements and reserves

 

 

24

 

 

 

Impairment, restructuring and acquisition costs

 

 

18

 

 

18

 

Share-based payment expense

 

 

42

 

 

46

 

Depreciation and amortization

 

 

139

 

 

133

 

Interest expense

 

 

107

 

 

102

 

Other (income)

 

 

 

 

(2

)

Income tax expense

 

 

62

 

 

89

 

Adjusted EBITDA

 

$

702

 

$

702

 

SCHEDULE 3

This press release includes a presentation of free cash flow of SiriusXM, which is a non-GAAP financial measure used by SiriusXM, together with a reconciliation to SiriusXM's stand-alone cash flow provided by operating activities, as determined under GAAP. SiriusXM’s free cash flow is derived from cash flow provided by operating activities, net of additions to property and equipment and purchases of other investments. Free cash flow is a metric that SiriusXM’s management and board of directors use to evaluate the cash generated by its operations, net of capital expenditures and other investment activity. In a capital intensive business, with significant investments in satellites, SiriusXM looks at its operating cash flow, net of these investing cash outflows, to determine cash available for future subscriber acquisition and capital expenditures, to repurchase or retire debt, to acquire other companies and to evaluate its ability to return capital to stockholders. SiriusXM excludes from free cash flow certain items that do not relate to the on-going performance of its business, such as cash flows related to acquisitions, strategic and short-term investments, including tax efficient investments in clean energy and net loan activity with related parties and other equity investees. SiriusXM believes free cash flow is an indicator of the long-term financial stability of its business. Free cash flow, which is reconciled to "Net cash provided by operating activities," is a non-GAAP financial measure. This measure can be calculated by deducting amounts under the captions "Additions to property and equipment" and deducting or adding Restricted and other investment activity from "Net cash provided by operating activities" from the unaudited consolidated statements of cash flows. Free cash flow should be used in conjunction with other GAAP financial performance measures and may not be comparable to free cash flow measures presented by other companies. Free cash flow should be viewed as a supplemental measure rather than an alternative measure of cash flows from operating activities, as determined in accordance with GAAP. Free cash flow is limited and does not represent remaining cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt maturities. SiriusXM believes free cash flow provides useful supplemental information to investors regarding its current cash flow, along with other GAAP measures (such as cash flows from operating and investing activities), to determine its financial condition, and to compare its operating performance to other communications, entertainment and media companies. Free cash flow is calculated as follows:

 

 

Unaudited

 

 

For the Three Months Ended

 

 

June 30,

 

 

2023

 

2024

($ in millions)

 

 

 

 

 

 

Cash flow information

 

 

 

 

 

 

Net cash provided by operating activities

 

$

451

 

 

$

514

 

Net cash used in investing activities

 

$

(130

)

 

$

(194

)

Net cash used in financing activities

 

$

(323

)

 

$

(291

)

Free cash flow

 

 

 

 

 

 

Net cash provided by operating activities

 

$

451

 

 

$

514

 

Additions to property and equipment

 

 

(128

)

 

 

(173

)

Sales of other investments

 

 

-

 

 

 

2

 

Free cash flow

 

$

323

 

 

$

343

 

 

Contacts

Shane Kleinstein (720) 875-5432

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