Liberty Media Corporation Reports First Quarter 2024 Financial Results
-
Attributed to
Liberty SiriusXM Group SiriusXM reported first quarter 2024 operating and financial results-
First quarter 2024 revenue of
$2.16 billion ; up 1% year-over-year - Ad revenue up 7% year-over-year
-
Net income of
$265 million ; diluted EPS of$0.07 -
Adjusted EBITDA(2) of
$650 million ; up 4% year-over-year -
Free cash flow(2) of
$132 million ; down 8% year-over-year SiriusXM reiterated 2024 financial guidance
-
First quarter 2024 revenue of
Liberty Media ’s ownership ofSiriusXM was 83.3% as ofApril 26 th-
On schedule to complete planned combination of
Liberty SiriusXM Group andSiriusXM early third quarter 2024 -
Repaid
$65 million under theSiriusXM margin loan in first quarter
-
Attributed to
Formula One Group - Announced planned acquisition of MotoGP and expect to complete transaction by year-end 2024
- F1 announced 24-race calendar for 2025 which will mark its 75th anniversary
-
Expanded partnership with DHL as Global Partner and secured new sponsorship deals at F1, including Globant as Official Partner and McDonald’s as Regional Partner in
Latin America -
F1 secured new broadcast deal with beIN SPORTS across MENA through 2033, extended partnership with Viaplay in
Netherlands and Nordic countries through 2029 and signed FanCode inIndia through 2025 -
Quint announced as official experiences and travel provider to USGA and launched new partnerships, including with
WNBA , X Games andUSA Basketball
-
Attributed to
Liberty Live Group -
Fair value of
Live Nation investment was$7.4 billion as ofMarch 31 st
-
Fair value of
“We were thrilled to announce Liberty’s planned acquisition of MotoGP, adding to our attractive assets in the premium live event and sports industries. We look forward to bringing this exhilarating sport to a wider global audience,” said
Corporate Updates
On
On
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to
|
|
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||
|
|
1Q23 |
|
1Q24 |
|
% Change |
||||||
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|
amounts in millions |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
|
|
|
|
||
|
|
$ |
2,144 |
|
|
$ |
2,162 |
|
|
|
1 |
% |
|
|
$ |
2,144 |
|
|
$ |
2,162 |
|
|
|
1 |
% |
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
387 |
|
|
|
422 |
|
|
|
9 |
% |
Corporate and other |
|
|
(14 |
) |
|
|
(13 |
) |
|
|
7 |
% |
|
|
$ |
373 |
|
|
$ |
409 |
|
|
|
10 |
% |
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
625 |
|
|
|
635 |
|
|
|
2 |
% |
Corporate and other |
|
|
(11 |
) |
|
|
(10 |
) |
|
|
9 |
% |
|
|
$ |
614 |
|
|
$ |
625 |
|
|
|
2 |
% |
The businesses and assets attributed to
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||
|
|
1Q23 |
|
1Q24 |
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amounts in millions |
||||||
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|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
381 |
|
|
$ |
553 |
|
Corporate and other |
|
|
— |
|
|
|
44 |
|
Intergroup elimination |
|
|
— |
|
|
|
(10 |
) |
|
|
$ |
381 |
|
|
$ |
587 |
|
Operating Income (Loss) |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
35 |
|
|
$ |
136 |
|
Corporate and other |
|
|
(19 |
) |
|
|
(41 |
) |
|
|
$ |
16 |
|
|
$ |
95 |
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
117 |
|
|
$ |
208 |
|
Corporate and other |
|
|
(12 |
) |
|
|
(6 |
) |
|
|
$ |
105 |
|
|
$ |
202 |
|
F1 Operating Results
“The 2024 season is underway, including our return to
The following table provides the operating results of Formula 1 (“F1”).
|
1Q23 |
|
1Q24 |
|
% Change |
||||||
|
amounts in millions |
|
|
||||||||
Primary Formula 1 revenue |
$ |
314 |
|
|
$ |
463 |
|
|
47 |
% |
|
Other Formula 1 revenue |
|
67 |
|
|
|
90 |
|
|
34 |
% |
|
Total Formula 1 revenue |
$ |
381 |
|
|
$ |
553 |
|
|
45 |
% |
|
Operating expenses (excluding stock-based compensation): |
|
|
|
|
|
|
|
|
|||
Team payments |
|
(112 |
) |
|
|
(163 |
) |
|
(46 |
)% |
|
Other cost of Formula 1 revenue |
|
(94 |
) |
|
|
(123 |
) |
|
(31 |
)% |
|
Cost of Formula 1 revenue |
$ |
(206 |
) |
|
$ |
(286 |
) |
|
(39 |
)% |
|
Selling, general and administrative expenses |
|
(58 |
) |
|
|
(59 |
) |
|
(2 |
)% |
|
Adjusted OIBDA |
$ |
117 |
|
|
$ |
208 |
|
|
78 |
% |
|
Depreciation and Amortization(a) |
|
(82 |
) |
|
|
(72 |
) |
|
12 |
% |
|
Operating income (loss) |
$ |
35 |
|
|
$ |
136 |
|
|
289 |
% |
|
|
|
|
|
|
|
|
|
||||
Number of races in period |
|
2 |
|
|
|
3 |
|
|
|
||
a) |
|
Includes |
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 three races held in the first quarter of 2024, compared to two races held in the first quarter of 2023. There are 24 events scheduled for the 2024 race calendar.
Primary F1 revenue increased in the first 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 fees from the additional race held in the period and contractual increases in fees. Media rights revenue also benefited from contractual increases in fees, higher fees from 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 contracts. Other F1 revenue increased in the first quarter primarily driven by the sale of new F2 cars and associated parts at the start of the new F2 vehicle cycle, higher hospitality and experiences revenue and higher freight income driven by the additional race held in the current period.
Operating income and Adjusted OIBDA(2) increased in the first 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 the cost of supplying the new F2 cars and associated parts, increased commissions and partner servicing costs associated with higher Primary F1 revenue streams as well as increased freight, travel, technical, digital and FIA regulatory costs from the additional race. Other cost of F1 revenue in the first quarter was also impacted by lease costs for the
Corporate and Other Operating Results
Liberty closed the Quint acquisition on
The businesses and assets attributed to
LIBERTY LIVE GROUP – In the first quarter,
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
Fair Value of
|
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|
|
|
|
||
(amounts in millions) |
|
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|
|
||||
|
|
|
N/A |
|
|
|
N/A |
|
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|
|
|
|
|
||
|
|
|
|
|
|
|
||
Other |
|
|
— |
|
|
|
50 |
|
|
|
$ |
— |
|
$ |
50 |
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
|
|
6,519 |
|
|
|
7,366 |
|
Other |
|
|
113 |
|
|
|
125 |
|
|
|
$ |
6,632 |
|
|
$ |
7,491 |
|
|
|
|
|
|
|
|
||
Total |
|
$ |
6,632 |
|
|
$ |
7,541 |
|
a) |
|
Represents the carrying value of other public holdings that are accounted for at fair value. |
b) |
|
Represents the fair value of the equity investment in |
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
|
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|||
(amounts in millions) |
|
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|
|
||||
Cash and Cash Equivalents Attributable to: |
|
|
|
|
|
|
||
|
|
$ |
306 |
|
$ |
135 |
||
|
|
|
1,408 |
|
|
|
1,233 |
|
|
|
|
305 |
|
|
|
298 |
|
Total Consolidated Cash and Cash Equivalents (GAAP) |
|
$ |
2,019 |
|
|
$ |
1,666 |
|
|
|
|
|
|
||||
Debt: |
|
|
|
|
|
|
||
|
|
$ |
8,750 |
|
|
$ |
8,750 |
|
3.75% convertible notes due 2028(d) |
|
|
575 |
|
|
|
575 |
|
2.75% |
|
|
586 |
|
|
|
585 |
|
|
|
|
695 |
|
|
|
630 |
|
Other subsidiary debt(e) |
|
|
500 |
|
|
|
530 |
|
Total Attributed Liberty SiriusXM Group Debt |
|
$ |
11,106 |
|
|
$ |
11,070 |
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
31 |
|
|
|
52 |
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
|
$ |
11,137 |
|
|
$ |
11,122 |
|
|
|
|
|
|
|
|
||
2.25% convertible notes due 2027(d) |
|
|
475 |
|
|
|
475 |
|
Formula 1 term loan and revolving credit facility |
|
|
2,407 |
|
|
|
2,398 |
|
Other corporate level debt |
|
|
58 |
|
|
|
56 |
|
Total Attributed Formula One Group Debt |
|
$ |
2,940 |
|
|
$ |
2,929 |
|
Fair market value adjustment |
|
|
(34 |
) |
|
|
(27 |
) |
Total Attributed Formula One Group Debt (GAAP) |
|
$ |
2,906 |
|
|
$ |
2,902 |
|
Formula 1 leverage(f) |
|
|
1.9x |
|
|
1.7x |
||
|
|
|
|
|
|
|
||
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 |
|
|
105 |
|
|
|
206 |
|
Total Attributed Liberty Live Group Debt (GAAP) |
|
$ |
1,317 |
|
|
$ |
1,418 |
|
|
|
|
|
|
|
|
||
Total Liberty Media Corporation Debt (GAAP) |
|
$ |
15,360 |
|
|
$ |
15,442 |
|
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 convertible notes and exchangeable debentures with no fair market value adjustment. |
e) |
|
Includes |
f) |
|
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, the planned combination of
BALANCE SHEET INFORMATION
|
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|
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|
|
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|
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|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
One |
|
Live |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Assets |
|
|
|
|
|
|
|
|
|
||||
Current assets: |
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
135 |
|
|
1,233 |
|
|
298 |
|
|
1,666 |
|
Trade and other receivables, net |
|
|
614 |
|
|
175 |
|
|
— |
|
|
789 |
|
Other current assets |
|
|
402 |
|
|
338 |
|
|
— |
|
|
740 |
|
Total current assets |
|
|
1,151 |
|
|
1,746 |
|
|
298 |
|
|
3,195 |
|
Investments in affiliates, accounted for using the equity method |
|
|
1,642 |
|
|
38 |
|
|
316 |
|
|
1,996 |
|
|
|
|
|
|
|
|
|
|
|
||||
Property and equipment, at cost |
|
|
3,200 |
|
|
983 |
|
|
— |
|
|
4,183 |
|
Accumulated depreciation |
|
|
(1,905 |
) |
|
(149 |
) |
|
— |
|
|
(2,054 |
) |
|
|
|
1,295 |
|
|
834 |
|
|
— |
|
|
2,129 |
|
|
|
|
|
|
|
|
|
|
|
||||
Intangible assets not subject to amortization |
|
|
|
|
|
|
|
|
|
||||
|
|
|
15,209 |
|
|
4,190 |
|
|
— |
|
|
19,399 |
|
FCC licenses |
|
|
8,600 |
|
|
— |
|
|
— |
|
|
8,600 |
|
Other |
|
|
1,242 |
|
|
— |
|
|
— |
|
|
1,242 |
|
|
|
|
25,051 |
|
|
4,190 |
|
|
— |
|
|
29,241 |
|
Intangible assets subject to amortization, net |
|
|
991 |
|
|
2,898 |
|
|
— |
|
|
3,889 |
|
Other assets |
|
|
681 |
|
|
899 |
|
|
375 |
|
|
1,955 |
|
Total assets |
|
$ |
30,811 |
|
|
10,605 |
|
|
989 |
|
|
42,405 |
|
|
|
|
|
|
|
|
|
|
|
||||
Liabilities and Equity |
|
|
|
|
|
|
|
|
|
||||
Current liabilities: |
|
|
|
|
|
|
|
|
|
||||
Intergroup payable (receivable) |
|
$ |
87 |
|
|
(82 |
) |
|
(5 |
) |
|
— |
|
Accounts payable and accrued liabilities |
|
|
1,225 |
|
|
396 |
|
|
— |
|
|
1,621 |
|
Current portion of debt |
|
|
1,075 |
|
|
36 |
|
|
74 |
|
|
1,185 |
|
Deferred revenue |
|
|
1,162 |
|
|
664 |
|
|
— |
|
|
1,826 |
|
Other current liabilities |
|
|
168 |
|
|
47 |
|
|
19 |
|
|
234 |
|
Total current liabilities |
|
|
3,717 |
|
|
1,061 |
|
|
88 |
|
|
4,866 |
|
Long-term debt |
|
|
10,047 |
|
|
2,866 |
|
|
1,344 |
|
|
14,257 |
|
Deferred income tax liabilities |
|
|
2,379 |
|
|
8 |
|
|
(185 |
) |
|
2,202 |
|
Other liabilities |
|
|
1,254 |
|
|
180 |
|
|
1 |
|
|
1,435 |
|
Total liabilities |
|
|
17,397 |
|
|
4,115 |
|
|
1,248 |
|
|
22,760 |
|
Equity / Attributed net assets |
|
|
10,343 |
|
|
6,490 |
|
|
(282 |
) |
|
16,551 |
|
Noncontrolling interests in equity of subsidiaries |
|
|
3,071 |
|
|
— |
|
|
23 |
|
|
3,094 |
|
Total liabilities and equity |
|
$ |
30,811 |
|
|
10,605 |
|
|
989 |
|
|
42,405 |
|
STATEMENT OF OPERATIONS INFORMATION
Three months ended |
|||||||||||||
|
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|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
One |
|
Live |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
2,162 |
|
|
— |
|
|
— |
|
|
2,162 |
|
Formula 1 revenue |
|
|
— |
|
|
550 |
|
|
— |
|
|
550 |
|
Other revenue |
|
|
— |
|
|
37 |
|
|
— |
|
|
37 |
|
Total revenue |
|
|
2,162 |
|
|
587 |
|
|
— |
|
|
2,749 |
|
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
|
|
|
||||
Cost of |
|
|
|
|
|
|
|
|
|
||||
Revenue share and royalties |
|
|
703 |
|
|
— |
|
|
— |
|
|
703 |
|
Programming and content(1) |
|
|
157 |
|
|
— |
|
|
— |
|
|
157 |
|
Customer service and billing(1) |
|
|
116 |
|
|
— |
|
|
— |
|
|
116 |
|
Other(1) |
|
|
61 |
|
|
— |
|
|
— |
|
|
61 |
|
Cost of Formula 1 revenue (exclusive of depreciation shown separately below) |
|
|
— |
|
|
279 |
|
|
— |
|
|
279 |
|
Other cost of sales |
|
|
— |
|
|
26 |
|
|
— |
|
|
26 |
|
Subscriber acquisition costs |
|
|
90 |
|
|
— |
|
|
— |
|
|
90 |
|
Other operating expenses(1) |
|
|
86 |
|
|
1 |
|
|
— |
|
|
87 |
|
Selling, general and administrative(1) |
|
|
372 |
|
|
91 |
|
|
2 |
|
|
465 |
|
Impairment, restructuring and acquisition costs |
|
|
13 |
|
|
9 |
|
|
— |
|
|
22 |
|
Depreciation and amortization |
|
|
155 |
|
|
86 |
|
|
— |
|
|
241 |
|
|
|
|
1,753 |
|
|
492 |
|
|
2 |
|
|
2,247 |
|
Operating income (loss) |
|
|
409 |
|
|
95 |
|
|
(2 |
) |
|
502 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(129 |
) |
|
(55 |
) |
|
(7 |
) |
|
(191 |
) |
Share of earnings (losses) of affiliates, net |
|
|
5 |
|
|
(3 |
) |
|
(21 |
) |
|
(19 |
) |
Realized and unrealized gains (losses) on financial instruments, net |
|
|
18 |
|
|
48 |
|
|
(69 |
) |
|
(3 |
) |
Other, net |
|
|
6 |
|
|
15 |
|
|
6 |
|
|
27 |
|
|
|
|
(100 |
) |
|
5 |
|
|
(91 |
) |
|
(186 |
) |
Earnings (loss) before income taxes |
|
|
309 |
|
|
100 |
|
|
(93 |
) |
|
316 |
|
Income tax (expense) benefit |
|
|
(68 |
) |
|
(23 |
) |
|
20 |
|
|
(71 |
) |
Net earnings (loss) |
|
|
241 |
|
|
77 |
|
|
(73 |
) |
|
245 |
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
42 |
|
|
— |
|
|
— |
|
|
42 |
|
Net earnings (loss) attributable to Liberty stockholders |
|
$ |
199 |
|
|
77 |
|
|
(73 |
) |
|
203 |
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
||||
Programming and content |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
Customer service and billing |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other operating expenses |
|
|
12 |
|
|
— |
|
|
— |
|
|
12 |
|
Selling, general and administrative |
|
|
25 |
|
|
12 |
|
|
1 |
|
|
38 |
|
Stock compensation expense |
|
$ |
48 |
|
|
12 |
|
|
1 |
|
|
61 |
|
STATEMENT OF OPERATIONS INFORMATION
Three months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
|
|
|
|||||
|
|
|
|
One |
|
Braves |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
2,144 |
|
|
— |
|
|
— |
|
|
2,144 |
|
Formula 1 revenue |
|
|
— |
|
|
381 |
|
|
— |
|
|
381 |
|
Other revenue |
|
|
— |
|
|
— |
|
|
31 |
|
|
31 |
|
Total revenue |
|
|
2,144 |
|
|
381 |
|
|
31 |
|
|
2,556 |
|
Operating costs and expenses, including stock-based compensation: |
|
|
|
|
|
|
|
|
|
||||
Cost of |
|
|
|
|
|
|
|
|
|
||||
Revenue share and royalties |
|
|
700 |
|
|
— |
|
|
— |
|
|
700 |
|
Programming and content(1) |
|
|
150 |
|
|
— |
|
|
— |
|
|
150 |
|
Customer service and billing(1) |
|
|
122 |
|
|
— |
|
|
— |
|
|
122 |
|
Other(1) |
|
|
52 |
|
|
— |
|
|
— |
|
|
52 |
|
Cost of Formula 1 revenue (exclusive of depreciation shown separately below) |
|
|
— |
|
|
206 |
|
|
— |
|
|
206 |
|
Subscriber acquisition costs |
|
|
90 |
|
|
— |
|
|
— |
|
|
90 |
|
Other operating expenses(1) |
|
|
79 |
|
|
— |
|
|
39 |
|
|
118 |
|
Selling, general and administrative(1) |
|
|
385 |
|
|
75 |
|
|
26 |
|
|
486 |
|
Impairment, restructuring and acquisition costs |
|
|
32 |
|
|
— |
|
|
— |
|
|
32 |
|
Depreciation and amortization |
|
|
161 |
|
|
84 |
|
|
15 |
|
|
260 |
|
|
|
|
1,771 |
|
|
365 |
|
|
80 |
|
|
2,216 |
|
Operating income (loss) |
|
|
373 |
|
|
16 |
|
|
(49 |
) |
|
340 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(136 |
) |
|
(51 |
) |
|
(9 |
) |
|
(196 |
) |
Share of earnings (losses) of affiliates, net |
|
|
(7 |
) |
|
(2 |
) |
|
(1 |
) |
|
(10 |
) |
Realized and unrealized gains (losses) on financial instruments, net |
|
|
2 |
|
|
(47 |
) |
|
(1 |
) |
|
(46 |
) |
Unrealized gains (losses) on intergroup interests |
|
|
54 |
|
|
(41 |
) |
|
(13 |
) |
|
— |
|
Other, net |
|
|
3 |
|
|
10 |
|
|
1 |
|
|
14 |
|
|
|
|
(84 |
) |
|
(131 |
) |
|
(23 |
) |
|
(238 |
) |
Earnings (loss) before income taxes |
|
|
289 |
|
|
(115 |
) |
|
(72 |
) |
|
102 |
|
Income tax (expense) benefit |
|
|
(69 |
) |
|
6 |
|
|
13 |
|
|
(50 |
) |
Net earnings (loss) |
|
|
220 |
|
|
(109 |
) |
|
(59 |
) |
|
52 |
|
Less net earnings (loss) attributable to the noncontrolling interests |
|
|
37 |
|
|
— |
|
|
— |
|
|
37 |
|
Net earnings (loss) attributable to Liberty stockholders |
|
$ |
183 |
|
|
(109 |
) |
|
(59 |
) |
|
15 |
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Includes stock-based compensation expense as follows: |
|
|
|
|
|
|
|
|
|
||||
Programming and content |
|
|
7 |
|
|
— |
|
|
— |
|
|
7 |
|
Customer service and billing |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Other operating expenses |
|
|
11 |
|
|
— |
|
|
— |
|
|
11 |
|
Selling, general and administrative |
|
|
28 |
|
|
5 |
|
|
3 |
|
|
36 |
|
Stock compensation expense |
|
$ |
48 |
|
|
5 |
|
|
3 |
|
|
56 |
|
STATEMENT OF CASH FLOWS INFORMATION
Three months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
Attributed |
|
|
|||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
One |
|
Live |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||
Net earnings (loss) |
|
$ |
241 |
|
|
77 |
|
|
(73 |
) |
|
245 |
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
155 |
|
|
86 |
|
|
— |
|
|
241 |
|
Stock-based compensation |
|
|
48 |
|
|
12 |
|
|
1 |
|
|
61 |
|
Non-cash impairment and restructuring costs |
|
|
1 |
|
|
— |
|
|
— |
|
|
1 |
|
Share of (earnings) loss of affiliates, net |
|
|
(5 |
) |
|
3 |
|
|
21 |
|
|
19 |
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(18 |
) |
|
(48 |
) |
|
69 |
|
|
3 |
|
Deferred income tax expense (benefit) |
|
|
(12 |
) |
|
9 |
|
|
(18 |
) |
|
(21 |
) |
Intergroup tax allocation |
|
|
29 |
|
|
(27 |
) |
|
(2 |
) |
|
— |
|
Other charges (credits), net |
|
|
24 |
|
|
2 |
|
|
— |
|
|
26 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
||||
Current and other assets |
|
|
66 |
|
|
(90 |
) |
|
(3 |
) |
|
(27 |
) |
Payables and other liabilities |
|
|
(265 |
) |
|
116 |
|
|
(4 |
) |
|
(153 |
) |
Net cash provided (used) by operating activities |
|
|
264 |
|
|
140 |
|
|
(9 |
) |
|
395 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||
Investments in equity method affiliates and debt and equity securities |
|
|
(179 |
) |
|
(1 |
) |
|
— |
|
|
(180 |
) |
Cash (paid) received for acquisitions, net of cash acquired |
|
|
— |
|
|
(205 |
) |
|
— |
|
|
(205 |
) |
Capital expended for property and equipment, including internal-use software and website development |
|
|
(174 |
) |
|
(27 |
) |
|
— |
|
|
(201 |
) |
Other investing activities, net |
|
|
(1 |
) |
|
(63 |
) |
|
— |
|
|
(64 |
) |
Net cash provided (used) by investing activities |
|
|
(354 |
) |
|
(296 |
) |
|
— |
|
|
(650 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||
Borrowings of debt |
|
|
230 |
|
|
— |
|
|
— |
|
|
230 |
|
Repayments of debt |
|
|
(267 |
) |
|
(10 |
) |
|
— |
|
|
(277 |
) |
Cash dividends paid by subsidiary |
|
|
(17 |
) |
|
— |
|
|
— |
|
|
(17 |
) |
Taxes paid in lieu of shares issued for stock-based compensation |
|
|
(17 |
) |
|
(7 |
) |
|
— |
|
|
(24 |
) |
Other financing activities, net |
|
|
(2 |
) |
|
6 |
|
|
2 |
|
|
6 |
|
Net cash provided (used) by financing activities |
|
|
(73 |
) |
|
(11 |
) |
|
2 |
|
|
(82 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(163 |
) |
|
(167 |
) |
|
(7 |
) |
|
(337 |
) |
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 |
|
$ |
152 |
|
|
1,241 |
|
|
298 |
|
|
1,691 |
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
135 |
|
|
1,233 |
|
|
298 |
|
|
1,666 |
|
Restricted cash included in other current assets |
|
|
8 |
|
|
8 |
|
|
— |
|
|
16 |
|
Restricted cash included in other assets |
|
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
Total cash and cash equivalents and restricted cash at end of period |
|
$ |
152 |
|
|
1,241 |
|
|
298 |
|
|
1,691 |
|
STATEMENT OF CASH FLOWS INFORMATION
Three months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
|
|
|
|||||
|
|
|
|
One |
|
Braves |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||
Net earnings (loss) |
|
$ |
220 |
|
|
(109 |
) |
|
(59 |
) |
|
52 |
|
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
161 |
|
|
84 |
|
|
15 |
|
|
260 |
|
Stock-based compensation |
|
|
48 |
|
|
5 |
|
|
3 |
|
|
56 |
|
Non-cash impairment and restructuring costs |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
Share of (earnings) loss of affiliates, net |
|
|
7 |
|
|
2 |
|
|
1 |
|
|
10 |
|
Unrealized (gains) losses on intergroup interests, net |
|
|
(54 |
) |
|
41 |
|
|
13 |
|
|
— |
|
Realized and unrealized (gains) losses on financial instruments, net |
|
|
(2 |
) |
|
47 |
|
|
1 |
|
|
46 |
|
Deferred income tax expense (benefit) |
|
|
7 |
|
|
(5 |
) |
|
(8 |
) |
|
(6 |
) |
Intergroup tax allocation |
|
|
31 |
|
|
(26 |
) |
|
(5 |
) |
|
— |
|
Other charges (credits), net |
|
|
4 |
|
|
(3 |
) |
|
1 |
|
|
2 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
||||
Current and other assets |
|
|
46 |
|
|
(8 |
) |
|
27 |
|
|
65 |
|
Payables and other liabilities |
|
|
(157 |
) |
|
229 |
|
|
96 |
|
|
168 |
|
Net cash provided (used) by operating activities |
|
|
319 |
|
|
257 |
|
|
85 |
|
|
661 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||
Investments in equity method affiliates and debt and equity securities |
|
|
(39 |
) |
|
(130 |
) |
|
— |
|
|
(169 |
) |
Cash proceeds from dispositions |
|
|
— |
|
|
34 |
|
|
— |
|
|
34 |
|
Capital expended for property and equipment, including internal-use software and website development |
|
|
(205 |
) |
|
(62 |
) |
|
(14 |
) |
|
(281 |
) |
Other investing activities, net |
|
|
2 |
|
|
(1 |
) |
|
— |
|
|
1 |
|
Net cash provided (used) by investing activities |
|
|
(242 |
) |
|
(159 |
) |
|
(14 |
) |
|
(415 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||
Borrowings of debt |
|
|
1,479 |
|
|
— |
|
|
— |
|
|
1,479 |
|
Repayments of debt |
|
|
(1,633 |
) |
|
(53 |
) |
|
(4 |
) |
|
(1,690 |
) |
Settlement of intergroup interests |
|
|
202 |
|
|
(202 |
) |
|
— |
|
|
— |
|
Subsidiary shares repurchased by subsidiary |
|
|
(62 |
) |
|
— |
|
|
— |
|
|
(62 |
) |
Cash dividends paid by subsidiary |
|
|
(17 |
) |
|
— |
|
|
— |
|
|
(17 |
) |
Taxes paid in lieu of shares issued for stock-based compensation |
|
|
(15 |
) |
|
(8 |
) |
|
(1 |
) |
|
(24 |
) |
Other financing activities, net |
|
|
37 |
|
|
14 |
|
|
6 |
|
|
57 |
|
Net cash provided (used) by financing activities |
|
|
(9 |
) |
|
(249 |
) |
|
1 |
|
|
(257 |
) |
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 |
|
|
68 |
|
|
(149 |
) |
|
72 |
|
|
(9 |
) |
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 |
|
$ |
438 |
|
|
1,584 |
|
|
245 |
|
|
2,267 |
|
|
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
430 |
|
|
215 |
|
|
1,584 |
|
|
2,229 |
|
Restricted cash included in other current assets |
|
|
— |
|
|
30 |
|
|
— |
|
|
30 |
|
Restricted cash included in other assets |
|
|
8 |
|
|
— |
|
|
— |
|
|
8 |
|
Total cash and cash equivalents and restricted cash at end of period |
|
$ |
438 |
|
|
245 |
|
|
1,584 |
|
|
2,267 |
|
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
The following table provides a reconciliation of Adjusted OIBDA for
QUARTERLY SUMMARY
|
|
|
|
|
|
|
||
(amounts in millions) |
|
1Q23 |
|
1Q24 |
||||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
373 |
|
|
$ |
409 |
|
Depreciation and amortization |
|
|
161 |
|
|
|
155 |
|
Stock compensation expense |
|
|
48 |
|
|
|
48 |
|
Impairment, restructuring and acquisition costs(a) |
|
|
32 |
|
|
|
13 |
|
Adjusted OIBDA |
|
$ |
614 |
|
|
$ |
625 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
16 |
|
|
$ |
95 |
|
Depreciation and amortization |
|
|
84 |
|
|
|
86 |
|
Stock compensation expense |
|
|
5 |
|
|
|
12 |
|
Impairment, restructuring and acquisition costs(b) |
|
|
— |
|
|
|
9 |
|
Adjusted OIBDA |
|
$ |
105 |
|
|
$ |
202 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
N/A |
|
|
$ |
(2 |
) |
Depreciation and amortization |
|
|
N/A |
|
|
|
— |
|
Stock compensation expense |
|
|
N/A |
|
|
|
1 |
|
Adjusted OIBDA |
|
$ |
N/A |
|
|
$ |
(1 |
) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
(49 |
) |
|
$ |
N/A |
|
Depreciation and amortization |
|
|
15 |
|
|
|
N/A |
|
Stock compensation expense |
|
|
3 |
|
|
|
N/A |
|
Impairment, restructuring and acquisition costs |
|
|
— |
|
|
|
N/A |
|
Adjusted OIBDA |
|
$ |
(31 |
) |
|
$ |
N/A |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating income |
|
$ |
340 |
|
|
$ |
502 |
|
Depreciation and amortization |
|
|
260 |
|
|
|
241 |
|
Stock compensation expense |
|
|
56 |
|
|
|
61 |
|
Impairment, restructuring and acquisition costs |
|
|
32 |
|
|
|
22 |
|
Adjusted OIBDA |
|
$ |
688 |
|
|
$ |
826 |
|
a) |
|
During the three months ended |
b) |
|
During the three months ended |
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 consolidated statements of comprehensive income of certain expenses, including share-based payment expense.
|
|
|
|
|
|
|
||
|
|
Unaudited |
||||||
|
|
For the Three Months Ended |
||||||
|
|
|
||||||
|
|
2023 |
|
2024 |
||||
($ in millions) |
|
|
|
|
|
|
||
Net income: |
|
$ |
233 |
|
|
$ |
265 |
|
Add back items excluded from Adjusted EBITDA: |
|
|
|
|
|
|
||
Impairment, restructuring and acquisition costs |
|
|
32 |
|
|
|
28 |
|
Share-based payment expense |
|
|
45 |
|
|
|
45 |
|
Depreciation and amortization |
|
|
136 |
|
|
|
140 |
|
Interest expense |
|
|
107 |
|
|
|
104 |
|
Other (income) expense |
|
|
(3 |
) |
|
|
(12 |
) |
Income tax expense |
|
|
75 |
|
|
|
80 |
|
Adjusted EBITDA |
|
$ |
625 |
|
|
$ |
650 |
|
SCHEDULE 3
This press release includes a presentation of free cash flow of
|
|
|
|
|
|
|
||
|
|
Unaudited |
||||||
|
|
For the Three Months Ended |
||||||
|
|
|
||||||
|
|
2023 |
|
2024 |
||||
($ in millions) |
|
|
|
|
|
|
||
Cash flow information |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
350 |
|
|
$ |
308 |
|
Net cash used in investing activities |
|
$ |
(235 |
) |
|
$ |
(363 |
) |
Net cash used in financing activities |
|
$ |
(119 |
) |
|
$ |
(90 |
) |
Free cash flow |
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
350 |
|
|
$ |
308 |
|
Additions to property and equipment |
|
|
(205 |
) |
|
|
(174 |
) |
Purchases of other investments |
|
|
(1 |
) |
|
|
(2 |
) |
Free cash flow |
|
$ |
144 |
|
|
$ |
132 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240507436710/en/
Source: