Liberty Media Corporation Reports Second Quarter 2024 Financial Results
-
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
-
Second quarter 2024 revenue of
Liberty Media ’s ownership ofSiriusXM was 83.3% as ofJuly 30 th-
Expect to complete planned combination of
Liberty SiriusXM Group andSiriusXM onSeptember 9 th -
Liberty repaid
$35 million underSiriusXM 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 andQatar -
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 ofJune 30 th
-
Fair value of
“We are excited that the combination of
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
|
|
2Q23 |
|
2Q24 |
|
% Change |
||||||
|
|
amounts in millions |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||
Revenue |
|
|
|
|
|
|
|
|
|
|||
|
|
$ |
2,250 |
|
|
$ |
2,178 |
|
|
|
(3 |
)% |
|
|
$ |
2,250 |
|
|
$ |
2,178 |
|
|
|
(3 |
)% |
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|||
|
|
|
464 |
|
|
|
482 |
|
|
|
4 |
% |
Corporate and other |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
8 |
% |
|
|
$ |
452 |
|
|
$ |
471 |
|
|
|
4 |
% |
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|||
|
|
|
702 |
|
|
|
688 |
|
|
|
(2 |
)% |
Corporate and other |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(13 |
)% |
|
|
$ |
694 |
|
|
$ |
679 |
|
|
|
(2 |
)% |
The businesses and assets attributed to
|
|
2Q23 |
|
2Q24 |
||||
|
|
amounts in millions |
||||||
|
|
|
|
|
|
|
||
Revenue |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
724 |
|
|
$ |
871 |
|
Corporate and other |
|
|
— |
|
|
|
141 |
|
Intergroup elimination |
|
|
— |
|
|
|
(24 |
) |
|
|
$ |
724 |
|
|
$ |
988 |
|
Operating Income (Loss) |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
72 |
|
|
$ |
84 |
|
Corporate and other |
|
|
(20 |
) |
|
|
(25 |
) |
|
|
$ |
52 |
|
|
$ |
59 |
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
Formula 1 |
|
$ |
155 |
|
|
$ |
160 |
|
Corporate and other |
|
|
(14 |
) |
|
|
5 |
|
|
|
$ |
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
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 |
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
Corporate and Other Operating Results
Liberty closed the Quint acquisition on
The businesses and assets attributed to
LIBERTY LIVE GROUP – In the second 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 |
||||||
|
|
|
|
|
|
|
(amounts in millions) |
|
|
|
|
||
|
|
|
N/A |
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
50 |
|
|
50 |
|
|
$ |
50 |
|
$ |
50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,366 |
|
|
6,529 |
Other |
|
|
125 |
|
|
- |
|
|
$ |
7,491 |
|
$ |
6,529 |
|
|
|
|
|
|
|
Total |
|
$ |
7,541 |
|
$ |
6,579 |
___________________________ |
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.
(amounts in millions) |
|
|
|
|
||||
Cash and Cash Equivalents Attributable to: |
|
|
|
|
|
|
||
|
|
$ |
135 |
|
|
$ |
188 |
|
|
|
|
1,233 |
|
|
|
1,491 |
|
|
|
|
298 |
|
|
|
406 |
|
Total Consolidated Cash and Cash Equivalents (GAAP) |
|
$ |
1,666 |
|
|
$ |
2,085 |
|
|
|
|
|
|
||||
Debt: |
|
|
|
|
|
|
||
|
|
$ |
8,750 |
|
|
$ |
8,750 |
|
3.75% convertible notes due 2028(d) |
|
|
575 |
|
|
|
575 |
|
2.75% |
|
|
585 |
|
|
|
585 |
|
|
|
|
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% |
|
|
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 |
|
|
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 |
|
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
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
||||
|
|
|
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 |
|
STATEMENT OF OPERATIONS INFORMATION
Three months ended |
|||||||||||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
One |
|
Live |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
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 |
|
|
|
|
|
|
|
|
|
||||
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 |
STATEMENT OF OPERATIONS INFORMATION
Three months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
|
|
|
|||||
|
|
|
|
One |
|
Braves |
|
Consolidated |
|||||
|
|
Group |
|
Group |
|
Group |
|
Liberty |
|||||
|
|
amounts in millions |
|||||||||||
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 |
|
|
|
|
|
|
|
|
|
||||
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 |
|
STATEMENT OF CASH FLOWS INFORMATION
Six months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
Attributed |
|
|
|||||||||
|
|
Liberty |
|
Formula |
|
Liberty |
|
|
|||||
|
|
|
|
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 |
|
STATEMENT OF CASH FLOWS INFORMATION
Six months ended |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Attributed |
|
|
||||||||
|
|
Liberty |
|
Formula |
|
|
|
|
|||||
|
|
|
|
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
The following table provides a reconciliation of Adjusted OIBDA for
QUARTERLY SUMMARY |
||||||
|
|
|
|
|
|
|
(amounts in millions) |
|
2Q23 |
|
2Q24 |
||
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
N/A |
|
$ |
(2) |
Depreciation and amortization |
|
|
N/A |
|
|
— |
Stock compensation expense |
|
|
N/A |
|
|
1 |
Adjusted OIBDA |
|
$ |
N/A |
|
$ |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
(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: |
|
$ |
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
|
|
Unaudited |
||||||
|
|
For the Three Months Ended |
||||||
|
|
|
||||||
|
|
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 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807046199/en/
Source: