Liberty Media Corporation Reports Fourth Quarter and Year End 2023 Financial Results
-
Attributed to
Liberty SiriusXM Group SiriusXM reported fourth quarter and full year 2023 operating and financial results-
2023 full year revenue of
$8.95 billion -
Full year net income of
$1.26 billion and diluted EPS of$0.32 -
Full year adjusted EBITDA(2) of
$2.79 billion -
Full year free cash flow(2) of
$1.20 billion SiriusXM announced 2024 financial guidance
-
2023 full year revenue of
-
Expect to complete planned combination of
Liberty SiriusXM Group andSiriusXM early third quarter 2024 Reduced Liberty SiriusXM Group debt by$279 million in fourth quarter and$782 million in full yearLiberty Media ’s ownership ofSiriusXM was 83.4% as ofJanuary 30, 2024
-
Attributed to
Formula One Group - 2023 F1 fan attendance of 6 million, up 5% compared to 2022
-
1.5 billion cumulative TV viewers and 70.5 million social media followers in 2023
-
Inaugural Las
Vegas Grand Prix generated over 16 billion global social media impressions during race week
-
Inaugural Las
-
F1 announced multiple race promotion deals, including new multi-year agreement to race in
Madrid from 2026 and renewals of British, Japanese and Brazilian Grands Prix -
Closed Quint acquisition on
January 3, 2024
-
Attributed to
Liberty Live Group -
Fair value of
Live Nation investment was$6.5 billion as ofDecember 31, 2023
-
Fair value of
“Liberty had a productive 2023. We split-off the
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months or year ended
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to
|
Three months ended |
|
|
|
|
Twelve months ended |
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
2022 |
|
2023 |
|
% Change |
|
2022 |
|
2023 |
|
% Change |
|||||||||||
|
amounts in millions |
|
|
|
|
amounts in millions |
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
2,283 |
|
$ |
2,288 |
|
— |
% |
$ |
9,003 |
|
$ |
8,953 |
|
(1 |
)% |
||||||
|
$ |
2,283 |
|
$ |
2,288 |
|
— |
% |
$ |
9,003 |
|
$ |
8,953 |
|
(1 |
)% |
||||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
542 |
|
|
475 |
|
(12 |
)% |
|
1,958 |
|
|
1,876 |
|
(4 |
)% |
||||||
Corporate and other |
|
(13 |
) |
|
(20 |
) |
(54 |
)% |
|
(39 |
) |
|
(68 |
) |
(74 |
)% |
||||||
|
$ |
529 |
|
$ |
455 |
|
(14 |
)% |
$ |
1,919 |
|
$ |
1,808 |
|
(6 |
)% |
||||||
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
742 |
|
|
699 |
|
(6 |
)% |
|
2,833 |
|
|
2,774 |
|
(2 |
)% |
||||||
Corporate and other |
|
(8 |
) |
|
(11 |
) |
(38 |
)% |
|
(26 |
) |
|
(42 |
) |
(62 |
)% |
||||||
|
$ |
734 |
|
$ |
688 |
|
(6 |
)% |
$ |
2,807 |
|
$ |
2,732 |
|
(3 |
)% |
The businesses and assets attributed to
“2023 marked another incredible season for Formula 1. We had strong engagement across all platforms, with record race attendance and F1 holding its position as the fastest growing league on social media for the fourth consecutive year. F1 saw continued fan growth especially in the US market, strengthened by the successful Las
|
Three months ended |
|
Twelve months ended |
|||||||||||||
|
|
|
|
|||||||||||||
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|||||||||
|
amounts in millions |
|
amounts in millions |
|||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
|
|
|
|
|
|
|
||||||||
Formula 1 |
$ |
754 |
|
$ |
1,230 |
|
$ |
2,573 |
|
$ |
3,222 |
|
||||
Corporate and other |
|
— |
|
|
15 |
|
|
— |
|
|
15 |
|
||||
Intergroup elimination |
|
— |
|
|
(15 |
) |
|
— |
|
|
(15 |
) |
||||
|
$ |
754 |
|
$ |
1,230 |
|
$ |
2,573 |
|
$ |
3,222 |
|
||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
||||||||
Formula 1 |
$ |
58 |
|
$ |
153 |
|
$ |
239 |
|
$ |
392 |
|
||||
Corporate and other |
|
(17 |
) |
|
(31 |
) |
|
(66 |
) |
|
(95 |
) |
||||
|
$ |
41 |
|
$ |
122 |
|
$ |
173 |
|
$ |
297 |
|
||||
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
||||||||
Formula 1 |
$ |
147 |
|
$ |
238 |
|
$ |
593 |
|
$ |
725 |
|
||||
Corporate and other |
|
(12 |
) |
|
5 |
|
|
(42 |
) |
|
(39 |
) |
||||
|
$ |
135 |
|
$ |
243 |
|
$ |
551 |
|
$ |
686 |
|
The following table provides the operating results of Formula 1 (“F1”).
F1 Operating Results |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Three months ended |
|
|
|
|
Twelve months ended |
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
2022 |
|
2023 |
|
% Change |
|
2022 |
|
2023 |
|
% Change |
|||||||||||
|
(unaudited) |
|
|
|
|
(unaudited) |
|
|
|
|||||||||||||
|
amounts in USD millions |
|
|
|
|
amounts in USD millions |
|
|
|
|||||||||||||
Primary Formula 1 revenue |
$ |
568 |
|
$ |
838 |
|
48 |
% |
$ |
2,107 |
|
$ |
2,560 |
|
21 |
% |
||||||
Other Formula 1 revenue |
|
186 |
|
|
392 |
|
111 |
% |
|
466 |
|
|
662 |
|
42 |
% |
||||||
Total Formula 1 revenue |
$ |
754 |
|
$ |
1,230 |
|
63 |
% |
$ |
2,573 |
|
$ |
3,222 |
|
25 |
% |
||||||
Operating expenses (excluding stock-based compensation included below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Team payments |
|
(319 |
) |
|
(327 |
) |
(3 |
)% |
|
(1,157 |
) |
|
(1,215 |
) |
(5 |
)% |
||||||
Other cost of Formula 1 revenue |
|
(208 |
) |
|
(589 |
) |
(183 |
)% |
|
(593 |
) |
|
(1,041 |
) |
(76 |
)% |
||||||
Cost of Formula 1 revenue |
$ |
(527 |
) |
$ |
(916 |
) |
(74 |
)% |
$ |
(1,750 |
) |
$ |
(2,256 |
) |
(29 |
)% |
||||||
Selling, general and administrative expenses |
|
(80 |
) |
|
(76 |
) |
5 |
% |
|
(230 |
) |
|
(241 |
) |
(5 |
)% |
||||||
Adjusted OIBDA |
$ |
147 |
|
$ |
238 |
|
62 |
% |
$ |
593 |
|
$ |
725 |
|
22 |
% |
||||||
Stock-based compensation |
|
(1 |
) |
|
(1 |
) |
— |
% |
|
(3 |
) |
|
(3 |
) |
— |
% |
||||||
Depreciation and Amortization(a) |
|
(88 |
) |
|
(84 |
) |
5 |
% |
|
(351 |
) |
|
(330 |
) |
6 |
% |
||||||
Operating income (loss) |
$ |
58 |
|
$ |
153 |
|
164 |
% |
$ |
239 |
|
$ |
392 |
|
64 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Number of races in period |
|
6 |
|
|
6 |
|
|
|
|
22 |
|
|
22 |
|
|
|
____________________ | ||
a) |
Includes amortization related to purchase accounting of |
|
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. For the year ended
There were 22 and 6 races held in the full years and fourth quarters of both 2023 and 2022. In the fourth quarter of 2023, F1 directly promoted the inaugural Las
Primary F1 revenue grew in the full year and fourth quarter with increases across all revenue streams. Race promotion revenue grew primarily due to ticketing revenue from the inaugural Las
Operating income and adjusted OIBDA(2) grew in the full year and fourth quarter. Team payments increased in the full year and fourth quarter driven by the growth in F1 revenue and the associated impact on the calculation of the team payments, which are 100% variable under the 2021 Concorde Agreement. Team payments as a percent of pre-team payment adjusted OIBDA decreased from 66% in 2022 to 63% in 2023 reflecting growth in adjusted OIBDA and an associated reduction on the payout percentage under the terms of the 2021 Concorde Agreement. 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 in the full year and fourth quarter primarily driven by the costs of promoting, organizing and delivering the Las
The businesses and assets attributed to
LIBERTY LIVE GROUP –
The businesses and assets attributed to
Share Repurchases
There were no repurchases of Liberty Media’s common stock from
FOOTNOTES
1) |
|
|
2) |
For definitions of adjusted OIBDA (as defined by |
|
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 consolidated balance sheet and statement of operations to be included in its Form 10-K for the year ended
Fair Value of
(amounts in millions) |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
65 |
|
|
— |
|
|
|
|
$ |
65 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,783 |
|
|
6,519 |
|
|
Other |
|
|
102 |
|
|
113 |
|
|
|
|
$ |
5,885 |
|
$ |
6,632 |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
5,950 |
|
$ |
6,632 |
|
____________________ | ||
a) |
In the fourth quarter of 2023, the 1.8 million shares of Atlanta Braves Holdings Series C common stock held at |
|
b) |
Represents the fair value of the equity investment in |
|
c) |
Represents the carrying value of other public holdings that are accounted for at fair value. |
|
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
(amounts in millions) |
|
|
||||||
Cash and Cash Equivalents Attributable to: |
|
|
|
|
||||
|
$ |
327 |
|
$ |
306 |
|
||
|
|
1,470 |
|
|
1,408 |
|
||
|
|
315 |
|
|
305 |
|
||
Total Consolidated Cash and Cash Equivalents (GAAP) |
$ |
2,112 |
|
$ |
2,019 |
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
Debt: |
|
|
|
|
||||
|
$ |
8,750 |
|
$ |
8,750 |
|
||
Pandora convertible senior notes |
|
20 |
|
|
— |
|
||
1.375% cash convertible notes due 2023(d) |
|
199 |
|
|
— |
|
||
3.75% convertible notes due 2028(d) |
|
575 |
|
|
575 |
|
||
2.75% |
|
586 |
|
|
586 |
|
||
|
|
775 |
|
|
695 |
|
||
Other subsidiary debt(e) |
|
635 |
|
|
500 |
|
||
Total Attributed Liberty SiriusXM Group Debt |
$ |
11,540 |
|
$ |
11,106 |
|
||
Unamortized discount, fair market value adjustment and deferred loan costs |
|
— |
|
|
31 |
|
||
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
$ |
11,540 |
|
$ |
11,137 |
|
||
|
|
|
|
|
||||
2.25% convertible notes due 2027(d) |
|
475 |
|
|
475 |
|
||
Formula 1 term loans and revolving credit facility |
|
2,411 |
|
|
2,407 |
|
||
Other corporate level debt |
|
59 |
|
|
58 |
|
||
Total Attributed Formula One Group Debt |
$ |
2,945 |
|
$ |
2,940 |
|
||
Unamortized discount, fair market value adjustment and deferred loan costs |
|
(48 |
) |
|
(34 |
) |
||
Total Attributed Formula One Group Debt (GAAP) |
$ |
2,897 |
|
$ |
2,906 |
|
||
Formula 1 leverage(f) |
|
2.2x |
|
1.9x |
||||
|
|
|
|
|
||||
0.5% |
|
62 |
|
|
62 |
|
||
2.375% |
|
1,150 |
|
|
1,150 |
|
||
|
|
— |
|
|
— |
|
||
Total Attributed Liberty Live Group Debt |
$ |
1,212 |
|
$ |
1,212 |
|
||
Unamortized discount, fair market value adjustment and deferred loan costs |
|
14 |
|
|
105 |
|
||
Total Attributed Liberty Live Group Debt (GAAP) |
$ |
1,226 |
|
$ |
1,317 |
|
||
|
|
|
|
|
||||
Total Liberty Media Corporation Debt (GAAP) |
$ |
15,663 |
|
$ |
15,360 |
|
____________________ | ||
a) |
Includes |
|
b) |
Includes |
|
c) |
Outstanding principal amount of Senior Notes or Term Loan with no reduction for the net unamortized discount. |
|
d) |
Face amount of the cash convertible notes and exchangeable debentures with no fair market value adjustment. |
|
e) |
Includes |
|
f) |
Net debt to covenant OIBDA ratio of F1 operating business as defined in F1’s credit facilities for covenant calculations. |
|
Total cash and cash equivalents attributed to
Total debt attributed to
Total cash and cash equivalents attributed to
Total cash and cash equivalents attributed to
Important Notice:
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, and our planned combination of
|
||||||||||||||||
BALANCE SHEET INFORMATION |
||||||||||||||||
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
Attributed |
|
|
|
|
|||||||||
|
|
Liberty |
|
|
|
Liberty Live |
|
|
|
Consolidated |
||||||
|
|
Group |
|
Group |
|
Group |
|
Eliminations |
|
Liberty |
||||||
|
|
amounts in millions |
||||||||||||||
Assets |
|
|
|
|
|
|
||||||||||
Current assets: |
|
|
|
|
|
|
||||||||||
Cash and cash equivalents |
$ |
306 |
|
1,408 |
|
305 |
|
— |
|
2,019 |
|
|||||
Trade and other receivables, net |
|
709 |
|
123 |
|
— |
|
— |
|
832 |
|
|||||
Other current assets |
|
346 |
|
180 |
|
— |
|
— |
|
526 |
|
|||||
Total current assets |
|
1,361 |
|
1,711 |
|
305 |
|
— |
|
3,377 |
|
|||||
Investments in affiliates, accounted for using the equity method |
|
715 |
|
41 |
|
333 |
|
— |
|
1,089 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Property and equipment, at cost |
|
3,105 |
|
973 |
|
— |
|
— |
|
4,078 |
|
|||||
Accumulated depreciation |
|
(1,860 |
) |
(135 |
) |
— |
|
— |
|
(1,995 |
) |
|||||
|
|
1,245 |
|
838 |
|
— |
|
— |
|
2,083 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Intangible assets not subject to amortization |
|
|
|
|
|
|
||||||||||
|
|
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 |
|
1,014 |
|
2,858 |
|
— |
|
— |
|
3,872 |
|
|||||
Other assets |
|
515 |
|
863 |
|
524 |
|
(162 |
) |
1,740 |
|
|||||
Total assets |
$ |
29,901 |
|
10,267 |
|
1,162 |
|
(162 |
) |
41,168 |
|
|||||
|
|
|
|
|
|
|
||||||||||
Liabilities and Equity |
|
|
|
|
|
|
||||||||||
Current liabilities: |
|
|
|
|
|
|
||||||||||
Intergroup payable (receivable) |
$ |
62 |
|
(63 |
) |
1 |
|
— |
|
— |
|
|||||
Accounts payable and accrued liabilities |
|
1,474 |
|
535 |
|
1 |
|
— |
|
2,010 |
|
|||||
Current portion of debt |
|
1,074 |
|
36 |
|
70 |
|
— |
|
1,180 |
|
|||||
Deferred revenue |
|
1,195 |
|
247 |
|
— |
|
— |
|
1,442 |
|
|||||
Other current liabilities |
|
71 |
|
32 |
|
8 |
|
— |
|
111 |
|
|||||
Total current liabilities |
|
3,876 |
|
787 |
|
80 |
|
— |
|
4,743 |
|
|||||
Long-term debt |
|
10,063 |
|
2,870 |
|
1,247 |
|
— |
|
14,180 |
|
|||||
Deferred income tax liabilities |
|
2,245 |
|
3 |
|
— |
|
(162 |
) |
2,086 |
|
|||||
Other liabilities |
|
526 |
|
188 |
|
— |
|
— |
|
714 |
|
|||||
Total liabilities |
|
16,710 |
|
3,848 |
|
1,327 |
|
(162 |
) |
21,723 |
|
|||||
Equity / Attributed net assets |
|
10,165 |
|
6,419 |
|
(188 |
) |
— |
|
16,396 |
|
|||||
Noncontrolling interests in equity of subsidiaries |
|
3,026 |
|
— |
|
23 |
|
— |
|
3,049 |
|
|||||
Total liabilities and equity |
$ |
29,901 |
|
10,267 |
|
1,162 |
|
(162 |
) |
41,168 |
|
|||||
|
||||||||||||||||
STATEMENT OF OPERATIONS |
||||||||||||||||
Twelve months ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Attributed |
|
|
||||||||||||
|
|
Liberty |
|
|
|
Liberty Live |
|
Braves |
|
Consolidated |
||||||
|
|
Group |
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
amounts in millions |
||||||||||||||
Revenue: |
|
|
|
|
|
|
||||||||||
|
$ |
8,953 |
|
— |
|
— |
|
— |
|
8,953 |
|
|||||
Formula 1 revenue |
|
— |
|
3,222 |
|
— |
|
— |
|
3,222 |
|
|||||
Other revenue |
|
— |
|
— |
|
— |
|
350 |
|
350 |
|
|||||
Total revenue |
|
8,953 |
|
3,222 |
|
— |
|
350 |
|
12,525 |
|
|||||
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
||||||||||
Cost of |
|
|
|
|
|
|
||||||||||
Revenue share and royalties |
|
2,895 |
|
— |
|
— |
|
— |
|
2,895 |
|
|||||
Programming and content |
|
618 |
|
— |
|
— |
|
— |
|
618 |
|
|||||
Customer service and billing |
|
476 |
|
— |
|
— |
|
— |
|
476 |
|
|||||
Other |
|
220 |
|
— |
|
— |
|
— |
|
220 |
|
|||||
Cost of Formula 1 revenue (exclusive of depreciation shown separately below) |
|
— |
|
2,240 |
|
— |
|
— |
|
2,240 |
|
|||||
Subscriber acquisition costs |
|
359 |
|
— |
|
— |
|
— |
|
359 |
|
|||||
Other operating expenses |
|
322 |
|
— |
|
— |
|
274 |
|
596 |
|
|||||
Selling, general and administrative |
|
1,534 |
|
316 |
|
11 |
|
69 |
|
1,930 |
|
|||||
Depreciation and amortization |
|
624 |
|
369 |
|
— |
|
37 |
|
1,030 |
|
|||||
Impairment, restructuring and acquisition costs, net of recoveries |
|
66 |
|
— |
|
— |
|
1 |
|
67 |
|
|||||
Litigation settlements, net of recoveries |
|
31 |
|
— |
|
— |
|
— |
|
31 |
|
|||||
|
|
7,145 |
|
2,925 |
|
11 |
|
381 |
|
10,462 |
|
|||||
Operating income (loss) |
|
1,808 |
|
297 |
|
(11 |
) |
(31 |
) |
2,063 |
|
|||||
Other income (expense): |
|
|
|
|
|
|
||||||||||
Interest expense |
|
(538 |
) |
(214 |
) |
(10 |
) |
(20 |
) |
(782 |
) |
|||||
Share of earnings (losses) of affiliates, net |
|
108 |
|
(4 |
) |
22 |
|
12 |
|
138 |
|
|||||
Unrealized gain/(loss) on intergroup interests |
|
68 |
|
15 |
|
— |
|
(83 |
) |
— |
|
|||||
Realized and unrealized gains (losses) on financial instruments, net |
|
(215 |
) |
42 |
|
(153 |
) |
3 |
|
(323 |
) |
|||||
Gains (losses) on dilution of investment in affiliate |
|
(6 |
) |
— |
|
2 |
|
— |
|
(4 |
) |
|||||
Other, net |
|
43 |
|
75 |
|
(30 |
) |
5 |
|
93 |
|
|||||
|
|
(540 |
) |
(86 |
) |
(169 |
) |
(83 |
) |
(878 |
) |
|||||
Earnings (loss) before income taxes |
|
1,268 |
|
211 |
|
(180 |
) |
(114 |
) |
1,185 |
|
|||||
Income tax (expense) benefit |
|
(237 |
) |
(27 |
) |
38 |
|
3 |
|
(223 |
) |
|||||
Net earnings (loss) |
|
1,031 |
|
184 |
|
(142 |
) |
(111 |
) |
962 |
|
|||||
Less net earnings (loss) attributable to the noncontrolling interests |
|
202 |
|
(1 |
) |
— |
|
— |
|
201 |
|
|||||
Net earnings (loss) attributable to Liberty stockholders |
$ |
829 |
|
185 |
|
(142 |
) |
(111 |
) |
761 |
|
|||||
|
|
|
|
|
|
|
||||||||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
||||||||||
Programming and content |
|
34 |
|
— |
|
— |
|
— |
|
34 |
|
|||||
Customer service and billing |
|
5 |
|
— |
|
— |
|
— |
|
5 |
|
|||||
Other |
|
6 |
|
— |
|
— |
|
— |
|
6 |
|
|||||
Other operating expenses |
|
46 |
|
— |
|
— |
|
— |
|
46 |
|
|||||
Selling, general and administrative |
|
112 |
|
20 |
|
2 |
|
7 |
|
141 |
|
|||||
Stock compensation expense |
$ |
203 |
|
20 |
|
2 |
|
7 |
|
232 |
|
|||||
|
|||||||||||||
STATEMENT OF OPERATIONS |
|||||||||||||
Twelve months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
|
|
Braves |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Revenue: |
|
|
|
|
|
||||||||
|
$ |
9,003 |
|
— |
|
— |
|
9,003 |
|
||||
Formula 1 revenue |
|
— |
|
2,573 |
|
— |
|
2,573 |
|
||||
Other revenue |
|
— |
|
— |
|
588 |
|
588 |
|
||||
Total revenue |
|
9,003 |
|
2,573 |
|
588 |
|
12,164 |
|
||||
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
||||||||
Cost of |
|
|
|
|
|
||||||||
Revenue share and royalties |
|
2,802 |
|
— |
|
— |
|
2,802 |
|
||||
Programming and content |
|
604 |
|
— |
|
— |
|
604 |
|
||||
Customer service and billing |
|
497 |
|
— |
|
— |
|
497 |
|
||||
Other |
|
227 |
|
— |
|
— |
|
227 |
|
||||
Cost of Formula 1 revenue (exclusive of depreciation shown separately below) |
|
— |
|
1,750 |
|
— |
|
1,750 |
|
||||
Subscriber acquisition costs |
|
352 |
|
— |
|
— |
|
352 |
|
||||
Other operating expenses |
|
285 |
|
— |
|
434 |
|
719 |
|
||||
Selling, general and administrative |
|
1,638 |
|
288 |
|
105 |
|
2,031 |
|
||||
Depreciation and amortization |
|
611 |
|
362 |
|
71 |
|
1,044 |
|
||||
Impairment, restructuring and acquisition costs, net of recoveries |
|
68 |
|
— |
|
6 |
|
74 |
|
||||
|
|
7,084 |
|
2,400 |
|
616 |
|
10,100 |
|
||||
Operating income (loss) |
|
1,919 |
|
173 |
|
(28 |
) |
2,064 |
|
||||
Other income (expense): |
|
|
|
|
|
||||||||
Interest expense |
|
(511 |
) |
(149 |
) |
(29 |
) |
(689 |
) |
||||
Share of earnings (losses) of affiliates, net |
|
67 |
|
— |
|
32 |
|
99 |
|
||||
Unrealized gain/(loss) on intergroup interests |
|
(19 |
) |
54 |
|
(35 |
) |
— |
|
||||
Realized and unrealized gains (losses) on financial instruments, net |
|
471 |
|
115 |
|
13 |
|
599 |
|
||||
Gains (losses) on dilution of investment in affiliate |
|
10 |
|
— |
|
— |
|
10 |
|
||||
Other, net |
|
32 |
|
58 |
|
20 |
|
110 |
|
||||
|
|
50 |
|
78 |
|
1 |
|
129 |
|
||||
Earnings (loss) before income taxes |
|
1,969 |
|
251 |
|
(27 |
) |
2,193 |
|
||||
Income tax (expense) benefit |
|
(467 |
) |
311 |
|
(8 |
) |
(164 |
) |
||||
Net earnings (loss) |
|
1,502 |
|
562 |
|
(35 |
) |
2,029 |
|
||||
Less net earnings (loss) attributable to the noncontrolling interests |
|
210 |
|
17 |
|
— |
|
227 |
|
||||
Less net earnings (loss) attributable to the redeemable noncontrolling interests |
|
— |
|
(13 |
) |
— |
|
(13 |
) |
||||
Net earnings (loss) attributable to Liberty stockholders |
$ |
1,292 |
|
558 |
|
(35 |
) |
1,815 |
|
||||
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
||||||||
Programming and content |
|
34 |
|
— |
|
— |
|
34 |
|
||||
Customer service and billing |
|
6 |
|
— |
|
— |
|
6 |
|
||||
Other |
|
6 |
|
— |
|
— |
|
6 |
|
||||
Other operating expenses |
|
39 |
|
— |
|
— |
|
39 |
|
||||
Selling, general and administrative |
|
124 |
|
16 |
|
12 |
|
152 |
|
||||
Stock compensation expense |
$ |
209 |
|
16 |
|
12 |
|
237 |
|
||||
|
||||||||||||||||
STATEMENT OF CASH FLOWS INFORMATION |
||||||||||||||||
Twelve months ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Attributed |
|
|
||||||||||||
|
|
Liberty |
|
|
|
Liberty Live |
|
Braves |
|
Consolidated |
||||||
|
|
Group |
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
|
amounts in millions |
||||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||||||
Net earnings (loss) |
$ |
1,031 |
|
184 |
|
(142 |
) |
(111 |
) |
962 |
|
|||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
||||||||||
Depreciation and amortization |
|
624 |
|
369 |
|
— |
|
37 |
|
1,030 |
|
|||||
Stock-based compensation |
|
203 |
|
20 |
|
2 |
|
7 |
|
232 |
|
|||||
Non-cash impairment and restructuring costs |
|
26 |
|
— |
|
— |
|
— |
|
26 |
|
|||||
Share of (earnings) loss of affiliates, net |
|
(108 |
) |
4 |
|
(22 |
) |
(12 |
) |
(138 |
) |
|||||
Unrealized (gains) losses on intergroup interests, net |
|
(68 |
) |
(15 |
) |
— |
|
83 |
|
— |
|
|||||
Realized and unrealized (gains) losses on financial instruments, net |
|
215 |
|
(42 |
) |
153 |
|
(3 |
) |
323 |
|
|||||
Noncash interest expense |
|
14 |
|
6 |
|
(1 |
) |
1 |
|
20 |
|
|||||
Losses (gains) on dilution of investment in affiliate |
|
6 |
|
— |
|
(2 |
) |
— |
|
4 |
|
|||||
Loss (gain) on early extinguishment of debt |
|
(30 |
) |
(1 |
) |
35 |
|
— |
|
4 |
|
|||||
Deferred income tax expense (benefit) |
|
36 |
|
18 |
|
(37 |
) |
(3 |
) |
14 |
|
|||||
Intergroup tax allocation |
|
177 |
|
(176 |
) |
— |
|
(1 |
) |
— |
|
|||||
Intergroup tax (payments) receipts |
|
(121 |
) |
122 |
|
— |
|
(1 |
) |
— |
|
|||||
Other charges (credits), net |
|
2 |
|
(2 |
) |
1 |
|
3 |
|
4 |
|
|||||
Changes in operating assets and liabilities |
|
|
|
|
|
|
||||||||||
Current and other assets |
|
(45 |
) |
46 |
|
(5 |
) |
(34 |
) |
(38 |
) |
|||||
Payables and other liabilities |
|
(136 |
) |
86 |
|
5 |
|
66 |
|
21 |
|
|||||
Net cash provided (used) by operating activities |
|
1,826 |
|
619 |
|
(13 |
) |
32 |
|
2,464 |
|
|||||
Cash flows from investing activities: |
|
|
|
|
|
|
||||||||||
Cash proceeds from dispositions of investments |
|
— |
|
110 |
|
1 |
|
— |
|
111 |
|
|||||
Investments in equity method affiliates and debt and equity securities |
|
(50 |
) |
(173 |
) |
(3 |
) |
— |
|
(226 |
) |
|||||
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities |
|
1 |
|
— |
|
— |
|
— |
|
1 |
|
|||||
Capital expended for property and equipment, including internal-use software and website development |
|
(650 |
) |
(426 |
) |
— |
|
(35 |
) |
(1,111 |
) |
|||||
Other investing activities, net |
|
3 |
|
(21 |
) |
3 |
|
— |
|
(15 |
) |
|||||
Net cash provided (used) by investing activities |
|
(696 |
) |
(510 |
) |
1 |
|
(35 |
) |
(1,240 |
) |
|||||
Cash flows from financing activities: |
|
|
|
|
|
|
||||||||||
Borrowings of debt |
|
2,681 |
|
— |
|
1,135 |
|
30 |
|
3,846 |
|
|||||
Repayments of debt |
|
(3,782 |
) |
(70 |
) |
(918 |
) |
(20 |
) |
(4,790 |
) |
|||||
Settlement of intergroup interests |
|
273 |
|
(273 |
) |
— |
|
— |
|
— |
|
|||||
Subsidiary shares repurchased by subsidiary |
|
(274 |
) |
— |
|
— |
|
— |
|
(274 |
) |
|||||
Cash dividends paid by subsidiary |
|
(65 |
) |
— |
|
— |
|
— |
|
(65 |
) |
|||||
Taxes paid in lieu of shares issued for stock-based compensation |
|
(64 |
) |
(9 |
) |
— |
|
(1 |
) |
(74 |
) |
|||||
|
|
— |
|
— |
|
— |
|
(188 |
) |
(188 |
) |
|||||
Reclassification |
|
— |
|
(100 |
) |
100 |
|
— |
|
— |
|
|||||
Other financing activities, net |
|
46 |
|
17 |
|
— |
|
9 |
|
72 |
|
|||||
Net cash provided (used) by financing activities |
|
(1,185 |
) |
(435 |
) |
317 |
|
(170 |
) |
(1,473 |
) |
|||||
Effect of foreign exchange rates on cash, cash equivalents and restricted cash |
|
— |
|
1 |
|
— |
|
— |
|
1 |
|
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(55 |
) |
(325 |
) |
305 |
|
(173 |
) |
(248 |
) |
|||||
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 |
$ |
315 |
|
1,408 |
|
305 |
|
— |
|
2,028 |
|
|||||
|
|||||||||||||
STATEMENT OF CASH FLOWS INFORMATION |
|||||||||||||
Twelve months ended |
|||||||||||||
|
|
|
|
|
|
||||||||
|
|
Attributed |
|
|
|||||||||
|
Liberty |
|
|
|
Braves |
|
Consolidated |
||||||
|
Group |
|
Group |
|
Group |
|
Liberty |
||||||
|
amounts in millions |
||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
||||||||
Net earnings (loss) |
$ |
1,502 |
|
562 |
|
(35 |
) |
2,029 |
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
||||||||
Depreciation and amortization |
|
611 |
|
362 |
|
71 |
|
1,044 |
|
||||
Stock-based compensation |
|
209 |
|
16 |
|
12 |
|
237 |
|
||||
Non-cash impairment and restructuring costs |
|
65 |
|
— |
|
5 |
|
70 |
|
||||
Share of (earnings) loss of affiliates, net |
|
(67 |
) |
— |
|
(32 |
) |
(99 |
) |
||||
Unrealized (gains) losses on intergroup interests, net |
|
19 |
|
(54 |
) |
35 |
|
— |
|
||||
Realized and unrealized (gains) losses on financial instruments, net |
|
(471 |
) |
(115 |
) |
(13 |
) |
(599 |
) |
||||
Noncash interest expense |
|
19 |
|
5 |
|
2 |
|
26 |
|
||||
Losses (gains) on dilution of investment in affiliate |
|
(10 |
) |
— |
|
— |
|
(10 |
) |
||||
Loss (gain) on early extinguishment of debt |
|
(21 |
) |
(14 |
) |
— |
|
(35 |
) |
||||
Deferred income tax expense (benefit) |
|
329 |
|
(306 |
) |
(10 |
) |
13 |
|
||||
Intergroup tax allocation |
|
91 |
|
(109 |
) |
18 |
|
— |
|
||||
Intergroup tax (payments) receipts |
|
(80 |
) |
72 |
|
8 |
|
— |
|
||||
Other charges (credits), net |
|
10 |
|
(1 |
) |
1 |
|
10 |
|
||||
Changes in operating assets and liabilities |
|
|
|
|
|
||||||||
Current and other assets |
|
80 |
|
(87 |
) |
(10 |
) |
(17 |
) |
||||
Payables and other liabilities |
|
(327 |
) |
203 |
|
1 |
|
(123 |
) |
||||
Net cash provided (used) by operating activities |
|
1,959 |
|
534 |
|
53 |
|
2,546 |
|
||||
Cash flows from investing activities: |
|
|
|
|
|
||||||||
Subsidiary initial public offering proceeds returned from (invested in) trust account |
|
— |
|
579 |
|
— |
|
579 |
|
||||
Cash proceeds from dispositions of investments |
|
66 |
|
53 |
|
48 |
|
167 |
|
||||
Cash (paid) received for acquisitions, net of cash acquired |
|
(136 |
) |
— |
|
— |
|
(136 |
) |
||||
Investments in equity method affiliates and debt and equity securities |
|
(1 |
) |
(52 |
) |
(5 |
) |
(58 |
) |
||||
Return of investment in equity method affiliates |
|
1 |
|
9 |
|
28 |
|
38 |
|
||||
Repayment of loans and other cash receipts from equity method affiliates and debt and equity securities |
|
2 |
|
— |
|
— |
|
2 |
|
||||
Capital expended for property and equipment, including internal-use software and website development |
|
(426 |
) |
(291 |
) |
(18 |
) |
(735 |
) |
||||
Other investing activities, net |
|
1 |
|
96 |
|
— |
|
97 |
|
||||
Net cash provided (used) by investing activities |
|
(493 |
) |
394 |
|
53 |
|
(46 |
) |
||||
Cash flows from financing activities: |
|
|
|
|
|
||||||||
Borrowings of debt |
|
3,150 |
|
2,884 |
|
155 |
|
6,189 |
|
||||
Repayments of debt |
|
(3,553 |
) |
(3,564 |
) |
(309 |
) |
(7,426 |
) |
||||
Repayment of initial public offering proceeds to subsidiary shareholders |
|
— |
|
(579 |
) |
— |
|
(579 |
) |
||||
Settlement of intergroup interests |
|
78 |
|
(64 |
) |
(14 |
) |
— |
|
||||
Liberty stock repurchases |
|
(358 |
) |
(37 |
) |
— |
|
(395 |
) |
||||
Subsidiary shares repurchased by subsidiary |
|
(647 |
) |
— |
|
— |
|
(647 |
) |
||||
Cash dividends paid by subsidiary |
|
(249 |
) |
— |
|
— |
|
(249 |
) |
||||
Taxes paid in lieu of shares issued for stock-based compensation |
|
(147 |
) |
24 |
|
— |
|
(123 |
) |
||||
Other financing activities, net |
|
24 |
|
67 |
|
(9 |
) |
82 |
|
||||
Net cash provided (used) by financing activities |
|
(1,702 |
) |
(1,269 |
) |
(177 |
) |
(3,148 |
) |
||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(236 |
) |
(341 |
) |
(71 |
) |
(648 |
) |
||||
Cash, cash equivalents and restricted cash at beginning of period |
|
606 |
|
2,074 |
|
244 |
|
2,924 |
|
||||
Cash, cash equivalents and restricted cash at end of period |
$ |
370 |
|
1,733 |
|
173 |
|
2,276 |
|
||||
NON-GAAP FINANCIAL MEASURES
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
The following table provides a reconciliation of adjusted OIBDA for
(amounts in millions) |
4Q22 |
|
4Q23 |
|
2022 |
|
2023 |
|||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
$ |
529 |
|
$ |
455 |
|
$ |
1,919 |
|
$ |
1,808 |
|
||||
Depreciation and amortization |
|
150 |
|
|
164 |
|
|
611 |
|
|
624 |
|
||||
Stock compensation expense |
|
57 |
|
|
52 |
|
|
209 |
|
|
203 |
|
||||
Impairment, restructuring and acquisition costs, net of recoveries |
|
(2 |
) |
|
10 |
|
|
68 |
|
|
66 |
|
||||
Litigation settlements, net of recoveries |
|
— |
|
|
7 |
|
|
— |
|
|
31 |
|
||||
Adjusted OIBDA |
$ |
734 |
|
$ |
688 |
|
$ |
2,807 |
|
$ |
2,732 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
$ |
41 |
|
$ |
122 |
|
$ |
173 |
|
$ |
297 |
|
||||
Depreciation and amortization |
|
90 |
|
|
115 |
|
|
362 |
|
|
369 |
|
||||
Stock compensation expense |
|
4 |
|
|
6 |
|
|
16 |
|
|
20 |
|
||||
Adjusted OIBDA |
$ |
135 |
|
$ |
243 |
|
$ |
551 |
|
$ |
686 |
|
||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
NA |
$ |
(6 |
) |
|
NA |
$ |
(11 |
) |
||||||
Depreciation and amortization |
|
NA |
|
— |
|
|
NA |
|
— |
|
||||||
Stock compensation expense |
|
NA |
|
1 |
|
|
NA |
|
2 |
|
||||||
Adjusted OIBDA |
|
NA |
$ |
(5 |
) |
|
NA |
$ |
(9 |
) |
||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
$ |
(31 |
) |
|
NA |
$ |
(28 |
) |
$ |
(31 |
) |
|||||
Depreciation and amortization |
|
14 |
|
|
NA |
|
71 |
|
|
37 |
|
|||||
Stock compensation expense |
|
3 |
|
|
NA |
|
12 |
|
|
7 |
|
|||||
Impairment, restructuring and acquisition costs, net of recoveries |
|
1 |
|
|
NA |
|
6 |
|
|
1 |
|
|||||
Adjusted OIBDA |
$ |
(13 |
) |
|
NA |
$ |
61 |
|
$ |
14 |
|
|||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
$ |
539 |
|
$ |
571 |
|
$ |
2,064 |
|
$ |
2,063 |
|
||||
Depreciation and amortization |
|
254 |
|
|
279 |
|
|
1,044 |
|
|
1,030 |
|
||||
Stock compensation expense |
|
64 |
|
|
59 |
|
|
237 |
|
|
232 |
|
||||
Impairment, restructuring and acquisition costs, net of recoveries |
|
(1 |
) |
|
10 |
|
|
74 |
|
|
67 |
|
||||
Litigation settlements, net of recoveries |
|
— |
|
|
7 |
|
|
— |
|
|
31 |
|
||||
Adjusted OIBDA |
$ |
856 |
|
$ |
926 |
|
$ |
3,419 |
|
$ |
3,423 |
|
||||
SCHEDULE 2
This press release also includes a presentation of adjusted EBITDA of
Adjusted EBITDA has certain limitations in that it does not take into account the impact to SiriusXM’s statements of comprehensive income of certain expenses, including share-based payment expense.
|
Unaudited |
|||||||
|
For the Years Ended |
|||||||
|
|
|||||||
|
2022 |
|
2023 |
|||||
($ in millions) |
|
|
|
|
||||
Net income: |
$ |
1,213 |
|
$ |
1,258 |
|
||
Add back items excluded from Adjusted EBITDA: |
|
|
|
|
||||
Legal settlements and reserves |
|
— |
|
|
24 |
|
||
Impairment, restructuring and acquisition costs |
|
64 |
|
|
82 |
|
||
Share-based payment expense |
|
197 |
|
|
184 |
|
||
Depreciation and amortization |
|
536 |
|
|
554 |
|
||
Interest expense |
|
422 |
|
|
423 |
|
||
Other expense (income) |
|
9 |
|
|
5 |
|
||
Income tax (benefit) expense |
|
392 |
|
|
260 |
|
||
Adjusted EBITDA |
$ |
2,833 |
|
$ |
2,790 |
|
||
SCHEDULE 3
This press release includes a presentation of free cash flow of
|
Unaudited |
|||||||
|
For the Years Ended |
|||||||
|
|
|||||||
($ in millions) |
2022 |
|
2023 |
|||||
Cash Flow Information |
|
|
|
|
||||
Net cash provided by operating activities |
$ |
1,976 |
|
$ |
1,850 |
|
||
Net cash used in investing activities |
|
(548 |
) |
|
(686 |
) |
||
Net cash used in financing activities |
|
(1,562 |
) |
|
(1,005 |
) |
||
Free Cash Flow |
|
|
|
|
||||
Net cash provided by operating activities |
$ |
1,976 |
|
$ |
1,850 |
|
||
Additions to property and equipment |
|
(426 |
) |
|
(650 |
) |
||
Sales of other investments |
|
1 |
|
|
3 |
|
||
Free cash flow |
$ |
1,551 |
|
$ |
1,203 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227626890/en/
Source: