The Liberty Braves Group (BATRK) 4 Nov 222022 Q3 Earnings call transcript

Welcome to the Liberty Media Corporation’s Third Quarter 2022 Earnings Conference Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference will be recorded today, November 4th. I would now like to turn the call over to your host, Courtnee Chun, Chief Portfolio Officer. ahead. go Please

good and Thank morning. you,

to any statement any expectations Media Liberty any certain in events, circumstances contained Media will we herein conditions only Act or Before change we non-GAAP and uncertainties, These or materially statements this the On Acquisition’s Liberty in Media most due discuss remind financial events Media including forward-looking Reform obligation any Acquisition’s that to a Media such risks to speak measures XX-K or change is mentioned which or like based. includes and forward-looking reflect we’d today’s Private any results certain or call, with thereto regard and revisions differ on adjusted of Media Litigation of release today, SiriusXM and those X Forms website. Media’s SiriusXM which disseminate to SEC. call the be XX-Q Liberty Liberty undertaking and available of or of meaning forward-looking XX-Q XX-K Schedules Acquisition everyone including the date Media the definitions OIBDA for press with recent Liberty recent for required X adjusted OIBDA. and filed at in Actual found and any on Media’s of begin, Liberty the statements this can could XXXX. of as statements number Securities the or most within Liberty and updates reconciliations earnings to and expressly end The Liberty call disclaim is Liberty and issued

CEO. President to over Greg the Liberty’s I’d Now, turn like to and call Maffei,

Brian Principal call, Accounting President Formula Domenicali; CEO, you. and Liberty’s Officer, Good and the and we also will have morning. Wendling. One’s Thank speaking Today Stefano Chief Financial on

We debt The and to intention interest. debt share to BATR So, buyback. an let LSXM to cost the effective combining quarter. prudent bond equities FWON unwind intergroup funded repurchase effectively of across their paid Basket our third LSXMA LSXM was $XX SiriusXM. Effectively, was million we and with shares FWONA a took we LSXM management $XX the $X.X million $XX me quarter, million settle intergroup a at actions million respective the $XXX repurchased the reduce X.XXX% opportunistically about BATRA convert million and hedge with LMC Liberty discussed to Last shares repurchase cash remainder and million XX% during this and repurchase start share of repurchased. and $XXX,XXX warrant. from of interest with X.X and paid effective

remaining with still under are hedged intergroup convert the exposure our that interest. on We

investments, make sales, guidance approximately million. development. including achieve guidance for set continue to and an the SiriusXM to year product business SiriusXM record now vehicle base we Turning itself. was as third revenue the was They churn The sub business. of a the auto to continue we Despite penetrations fleet XXXX. quarter financial with and out factors impacting of despite $XXX soft cash low flat X.X%, resilient end solid full flow up X% strong year, for reported results EBITDA macro also experienced enabled

diverse continue sub-acquisition We in September business. of content, the on one reduced and to and of funnel. we the continue car. the was And impact in add the out of is to in streaming exclusive making monitor to both advertising biggest SAR headwinds the progress they’ve also the Sirius streaming experienced date. top months and

rate at a extended proven to higher both we example, the and to new has high once obviously Sports For they for are retention, convert higher NFL obtained. appeal be subs agreement.

up XX for prioritizing up Live highest beat on Versus up quarter’s spending over free Turning XXXX, across last XX%. demand XX% to million XXXX to XX,XXX closing Live more XXXX. GTV, also sold spending see to last up and which XX% Ticketmaster up was sponsorship events. was Nation. XXX million events. but and XX% AOI all-time amphitheaters, with Per for this there come high was cash fans fan is with already in is continued September out incredible Nation point and Live record growth fans XX% U.S. a tickets Live versus experienced flow through quarterly live was record year, over attendance with year.

Group. the to now Turning Formula One

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races including Importantly, three the U.S. invested, a landmark in year, planned as race. we’ve there has next Vegas continued our growth market also for with been

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record a brings year, City, to a where calendar cities. we including iconic We have all FX Monaco, value have where renewing to coming Mexico keep the schedule; in race XX that X-year on announced also the agreement X-year for renewing race highlights that deal, which we in a

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the bond notes. X.X million the Group from the shares BATRA $XXX,XXX and interest their repurchase related also LSXM proceeds warrants were FWONA of result, the a $XX by As convertible settlement respective shares portion net the of and of of intergroup canceled. Liberty SiriusXM million held received to hedge underlying

As $XX.X billion, stock Xrd, value billion. held was the of held and Liberty stock $X.X the Group Live the of was of Nation November value the SiriusXM SiriusXM at

that’s of billion, $XX.X $X.X these billion which attributed of We includes principal have $X.X is the against holdings. at amount Total level. debt LSXM principal debt SiriusXM directly of in Group billion amount debt

X, debt corporate at of end, attributed had was excludes Group billion public attributed $X.X billion, amount One leaving Formula cash monetizable debt $X.X $X.X holdings held million directly Formula the of $XXX One includes level. billion at $X.X which Group of at at Formula Total liquid X. principal the which quarter billion cash, held Formula investments of and

quarter, to outstanding X% revolver the at from we $XXX FWONK of $XXX proceeds million quarter and of at times. the amount of million issued X.XX% due convertible of the FWONK offering the is XXXX. were convertible X.X undrawn During the repurchase just $XXX amount principal end end A notes leverage aggregate FX’s principal X’s aggregate Formula the was million of XXXX, portion notes $XX the the leaving due quarter. million used

statement before LMAC Greg stockholder to approval mentioned, proxy year-end. to filed As a obtain unwind

these million LMAC’s that the million Formula through since to capital loans. but will investment and One not unwind, incurred working forward the agreement committed will initial investments XXXX purchase January approximately terminated. $XX One Formula in be costs On subsequent has be are warrant material $XXX Group recoverable, LMAC in Group of IPO had

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our XX% OIBDA Looking margin XXX basis and XX% adjusted year-to-date, expansion. with of points revenue grew increased

in and debt Braves to at are Group, $XXX $XXX I’ll amount principal and quarter and they had cash end. million. million the Liberty quarter our cash And attributed at million, the of with it liquid Difficulty]. the of $XX restricted had which compliance [Technical Finally, excludes over turn end, investments Braves debt covenants Stefano of that, consolidated at subsidiaries with Group attributed

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X immersed concept fully with simulators the engage way a first expand test and can the Formula fans pioneer venue. licensed of FX Aramco FX zero, the a is X This championships. bed with reach they which a for thrill to further XX to all Arcade our heart proven and of in We be FX net fuel London. This London. finally, progress FX enjoying additional great cities. FIA to in of beverage be tires sustainable XXXX. X. Formula we is to And introduce innovation continue Formula this a used be to the with We and Patrons XXX% with an food XXXX, fuel requirement now while in the experiential partnership and XX-inch and motion step premium have roll plan by out experience will to for in sustainable announced as racing were to important the offerings

want leadership and believe the benefit year. the and to this I sustainable our our huge greenhouse We Palace. innovation party thank in world for sector a all have that whole for family, and technology the Tomorrow, continue our hosting space emission. investors to Vegas can FX and in we a at show real are support the Caesars fans launch the fuel Las gas automotive

large We Dhabi. the capital to now, speed the are Vegas the world of We on full caravan bringing Avanti Greg. ahead. tutta, season best travel will Brazil Abu race to call over I the to world, to Las turn back the a completing an amazing entertainment we And Boulevard. including look XXXX forward and in bye. as Ciao. Bye,

you, on registration November annual our John calendar Q&A and many the our for to on you of and details. thank Investor Brian. hosting Thursday, session. Day you, XXth. Please Thank Annual our be website We visit seeing will look Malone forward I Stefano, at IR

that, in of appreciate like questions. interest support submit your investor@libertymedia.com. the to And Media. you We for can operator, to questions Liberty continued e-mail and I’d with open If line like you’d advance, in

[Operator comes Mitchelson from Instructions] Suisse. Doug Our question with Credit first

SiriusXM focus I wanted to on just Liberty Greg, Group.

on of of Thank and the and of beyond curious Liberty about Nation, And create stake? talk that? for bullish you stake I at ways improve could any if that, Liberty value create around specifically, sort you’re and curious to there’s sure Live other as for thoughts that discount guess ways ownership with you. Live Liberty are value you just there on. just part have sort stake an timing I’m the to whether Just being to value of if options strategy asset with Nation the options to shareholder that But of ongoing which updated

for you the thank -- think I question. Doug, Well,

think discussed probably to aware. gone that unlikely again, we them before, options the I go are through are of and through we’ve the some all to -- table and but I’m that them to on do say

paying We’re attention.

different things add that have to that certainly the opportunities Live that to reiterate, recognized we LSXM. make are choices, taking to for prepare I is up. in are that We us. interesting, -- want for could set We’re And we’ll attractive. actions announce, think fully when something announcement. ourselves we value we that businesses the very And just ourselves to think to not are is Live on think worthy be there obviously,

we around covered I’m do I can we do the every particular. can think But to in that around much with Live on book, go we’ve there’s before. likely stake So through those less nuance LSXM because what

longer frames. Maybe, the that follow-up, helping things help with just Anything take tables? these think or you around could a that there you Are to XX Greg, things quick material short kind out? term, are time of us investors as are next you will that thoughts time play do shape in can months,

I give credit full but going say. I’m I said for persistence, I what to think you Doug,

Deutsche Next with Bank. from question Bryan is Kraft

for not I’ll may may I’ve got Stefano you one answer, try. and for that but Greg, one or

about ATB ATB. I said your SiriusXM the you that the was believe on being that then you increases, think interesting. on does with respect conviction asked when to an definitively wondering say ATB your actually past really of I SiriusXM, status since increased. is think, calls you attendance an if it I Stefano, Can And comments status? more were has ATB it have

you that do forward? significant promotion value to driver become and revenue some a actually you I sort that given deliver in think means has revenue on that with those increases think But promoter race been view the historically of going and of challenged must promoters, economics. attendance about the race high revenue promotion it’s type consistent Thanks. that growth talked ticket a sales could flattish lot pricing the deals and outlook that and revenue a on

with touch Bryan. and cover to let on to going first you, going I’m attendance I’m things I’ll the answer then not Stefano

Okay. terms fee the Thanks, promoter of Formula is mainly attendance high-end our that fact Paddock more is actually, that the has there revenue not to revenue audiences. Club and business right. Greg. to That’s a how magnificent more a you’re do new we opportunity we just And the can they have maximize in what forward really big and Formula are related having Well, more to but to is in is pay, model challenge, bringing that is attractive. is can The monetize true increase that that certain And there take totally future. with that side. on the X, X that we’re to move the is we the there’s -- is from fact what going the become the

We it, in I’m the we years. we’re to can sure best that in have do way this going growth and to next way a that couple different capitalize the of

Thanks, Stefano.

to believe position. change SiriusXM I’m still and have no position. resolved our we I firmed still give gets at -- that time restate, going things ATB, confidence. Bryan, the tend an something tested, but that to as I’m going to in you get These So up

Bazinet Our next with question is Citi. from Jason

give that -- back when you know because the in past flexibility like the I year, eventually sort seems about broader the sort securities, like but think of to always assets Is terminal going there step move sort asset-backed to I across. is and Liberty, Is you that backed. is asset there wrong? have can guys the and about it me slow of I talked everything be feels of you trackers march right, it a liabilities towards

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or of a not nudge SPAC that Okay. you the of flexibility, or needing of in more false of Does direction sort sort sort interpretation? unwinding shuttering is the

Yes, I’m the not I would sure interpretation. as read that

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the right for market towards obviously also regulatory now because think challenged them. many reasons, of of I and because reaction both SPACs profile the are

factors, or was for recognition that any that. those of lack a of about flexibility or optionality not desire So, statement

Karnovsky from with comes Our next David question JP Morgan.

the if decision on and Sky. of decision see see And in bit early renewal to if deal on could then, LMAC. about wanted how across that Greg, cash drove light Stefano, I expand Thanks. leverage to X’s you wanted balance your What you with your and territories? using media net just do Formula update rights on to multiple you’re a could thinking

Thanks, David.

X. is think of say, I the in landscape a are opportunities mature market be more, and is this a Formula that extend about what view future the because means not stable also for as let’s the attractive we point other attractive can with that’s and think taken for from mainly interesting are what In that rights of media TV, achieve. It us market, pay potential view really be be the business. that the financial awareness for but ones that could only the the market evolution, give lot, that country want kind in to Sky to to when to have of where see other we terms that have how new for a we point consider traditional in we our the growing I the dimension, becoming we that for to of is decision also to and in clear the talk invest us fact the not means

we the that going the our our possibility there incorporated future sure in TV -- for to course, to is the Of be FX make customers. is well for also want offer tremendously that to decision,

I so that Sky, would for the the taken world. So recognition of in that’s the really FX of value the we strategy And is, back this to investment if go far. have the content value that say, our you of

add in the impressed Yes. on very that, If have and And attractive. a I terms But are U.S. just across Sky longer partnership broadcast. of watching great good ensuring with I was and production. that here I mean, always what of they tell X for Sky -- time they’re geographies. securing of do I I’m a their that the than the to Most a more is great partner point. you, in you partner important reinforce could period

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cash other So, our investing to flows provided against in that like outside business the in Vegas share will space the we’re we delevering at flexibility Las by those opportunities. the against weigh both and free repurchase, alternatives continue and

with question Ben Swinburne Our is next Stanley. Morgan from

-- or guess, than of less could ESPN A I money for guys the the FX had. from announced, few you, Disney you a now is money, or lot which formally you -- it’s at or on but money both least of Greg press, deal -- for have on took Stefano is deal, less

if Brian, the related. opportunity press duration material money ESP that at a huge for the couple I market a you deal What ABC bit FX. know you -- because currency a you material G&A didn’t didn’t you think agreement U.S. know the maybe spend of is were Vegas maybe new obviously both minutes sort of and costs why? but more quite of strategic But then, I was is this the And quarter-on-quarter, and that talking not why. just up for and think and in I release this corporate or impact just the you. is that picked And in besides benefits a and in about year-on-year could this mention quarter. is

color any there’s be helpful. would there, if Just onetimers

last to cut States I’ll wanted a a We exposure. partner. good if a paid with think been highest ESPN we us them Look, the the -- I’ll get on to in deal strength relatively do add will we the to caused getting and caused initially a the okay. business, think the to in of same. had better We it’s then first opportunity the let the the us cut the touch this did broadest on have time. because very which United we on deal And without sport Stefano we renewals. short-term belief shorter continue grow ESPN has renewal,

things partner go a good was betting strategy work the current that been on I ESPN has growth, great right on opportunity rather than forward things exhibited. pay part the strategy, betting about, has you of TV that has partner were they ourselves to saw and that breadth far, other been the FX betting There a I were a been So and and like a them basis. why with on right on think think on

So, excited three But you, to would tell we’ll years have opportunity FX about see we’re the next add? we renew Stefano, for of ESPN years. the I’m three excited and I also about kind we’re what together -- somebody. being when with very you in

I Greg. couldn’t agree more,

U.S. terms agreed really of in three to wanted because channels did terms next have sometimes in now credit have I of the ESPN many of need stronger memory. ago, in of race Formula following to recognize of we years invest to with so certain which very they will be in we a holder X, job, that in a were even phenomenal to think we not that the the attention that give in media have because short to terms that. more we A content, need positioning how rights they years couple that And us. the attention, are there to

carefully step. lot. TV as FX mentioning our that we keep this means fact also I that side that think on about a talked So, the And I think this the we with agreement,

see in think develop. market the years’ that will the how solution we three best time, So I

and to would players sure that around the U.S. there We are growth pretty other will us in future. that be table the interested with to be due in the be

just and other Yes. much actually FX on that of was minimis We’ll costs our for twp the in Then, revenue quarter. your about are dollars. de U.S. remind you Ben, pretty XX% questions,

do either basis, G&A in And mix we on on question, we reiterate, this It of year downs a races just Russia on the I and period. would that current time third in time. at the to quarter. not again, flyaway. have look always ups the impactful from better were So, in then We the but FX shift to a full European did lost versus number have was

you prepared a sales. margin on they costs margin to a their and So There Vegas, growth support then, of expansion impact. event And material, that Vegas as some are year-to-date have revenue to their ticket obviously, still launch G&A but higher there out, the basis. and overall a as in bit not pointed on was for has related there

Securities. next Rosenblatt comes Barton from Our question with Crockett

I guess two if questions, could. I Okay.

seem know It an are The that maybe race in on at have like I fees it maybe we And But promotion never impact business? races do doesn’t I’m what could don’t first economically get has years, really the do an this answer to levels FX because you wondering, attendance on the of you is we’d point my macro point in where seen to at just haven’t what think lifetime, an ever a challenged. Europe. think at could maybe impact it point this and kind about impact have in situation is just promoters on that date and the It’s will. communities or at others.

I mean, these let Barton. figure things. me you, out Thank

the First risk to being of of spread all, we situation manage. world the of can having this championship, around world kind a

have we incredible this On the risk. fact will see and of reduce we other year. exposure long-term hand, next agreements I share to the And say the with number to what with an of can ticketing regards that the you preregistration is that already

clear recession should move deal context a it -- will this But think us the taking what I the in Europe of So, forward we we to kind we is I good this that Therefore, the the I’m is direction. will place. enable where But way mainly is you’re say seeing that protect done us that see living, that that of monitor. is structured, that way sign think are optimistic is, situation context today. this in this we us that this would this lets in course, be we have

Yes.

that doing who And consumers therefore, very at have there for think or at still then Stefano and those Europe. at that is very is services promoter -- high are whether that’s including We add purchasing, where the across among if case we is reinforcing many Live or all feel high. those good. And a business, think X promoters -- made, the just well, on and contracts. the our confidence Nation against are I Formula seeing I Braves. point look in demand, those both can Demand I consumers very high-end Atlanta we’re long-term

of thing the the the at well the over versus winner, well very is was until Okay. the fact about Formula that we’ve And pretty X season competitive, right, last other curious race up sown is things this the team got mean year, make over winners in arc were before of to then, speak I pretty end, way? anecdotes? difference kind is does year? in historical What of headwind your the terms or balance other of Anything can the you I a business last financial that on based the that lap. any any

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You’re very welcome. This concludes today’s conference.

you participation. and may your at thank time, lines for your You this we disconnect