10-QPeriod: Q1 FY2016

Liberty Media Corp Quarterly Report for Q1 Ended Mar 31, 2016

Filed May 9, 2016For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q1 2016 report highlights a significant increase in consolidated revenue, primarily driven by strong performance at its majority-owned subsidiary, SIRIUS XM Holdings Inc. Consolidated revenue grew by $123 million, with SIRIUS XM contributing $124 million of that increase. The company also reported a substantial improvement in operating income, largely due to a $511 million Vivendi lawsuit settlement in the first quarter of 2016. Adjusted OIBDA also saw an increase, indicating solid operational performance across its segments. Furthermore, the report details the recent recapitalization of Liberty Media's common stock into three new tracking stock groups: Liberty Braves, Liberty Media, and Liberty SiriusXM. This structural change aims to better reflect the economic performance of distinct business units. Investors should note the ongoing investment in the Atlanta Braves' new ballpark and mixed-use development project, which represents a significant capital expenditure for the Liberty Braves Group. The company maintains that its liquidity sources are sufficient to cover projected cash uses.

Financial Highlights

45 data points
Beta

Revenue

$1.20B

Net Income

$364.00M

30.2% Net Margin

EPS (Diluted)

$1.08

Total Assets

$30.33B

Cash & Equivalents

$602.00M

Free Cash Flow

$814.00M

Financial Statements
Beta
Revenue$1.20B
SG&A Expenses$201.00M
Operating Expenses$423.00M
Operating Income$781.00M
Interest Expense$84.00M
Net Income$364.00M
EPS (Basic)$1.09
EPS (Diluted)$1.08
Shares Outstanding (Basic)335.00M
Shares Outstanding (Diluted)337.00M

Key Highlights

  • 1Consolidated revenue increased by $123 million to $1,204 million for the three months ended March 31, 2016, driven by SIRIUS XM's $124 million revenue growth.
  • 2Consolidated operating income saw a substantial increase of $536 million to $781 million, primarily due to a $511 million Vivendi lawsuit settlement.
  • 3SIRIUS XM's standalone revenue grew by 11% year-over-year to $1,201 million, with subscriber revenue increasing to $1,010 million.
  • 4Adjusted OIBDA increased by $18 million to $391 million, reflecting improved operational performance, particularly at SIRIUS XM.
  • 5The company completed a recapitalization of its common stock into three new tracking stock groups: Liberty Braves, Liberty Media, and Liberty SiriusXM.
  • 6Braves Holdings is undertaking significant capital expenditures for a new ballpark and mixed-use development project, with approximately $550 million estimated for the remainder of 2016.
  • 7SIRIUS XM reported approximately 30 million subscribers as of March 31, 2016, a slight increase from the previous quarter.

Frequently Asked Questions

The primary driver of the revenue increase was the strong performance of SIRIUS XM Holdings Inc., which contributed $124 million to the consolidated revenue growth of $123 million.

The company reported a significant increase in operating income primarily due to a $511 million settlement related to the Vivendi lawsuit in the first quarter of 2016.

The Liberty SiriusXM Group is not a separate legal entity but represents the businesses, assets, and liabilities attributed to that group. Following the recapitalization, it is primarily comprised of SIRIUS XM, $50 million in corporate cash, and a margin loan obligation.

The Liberty Braves Group, through Braves Holdings, LLC, has significant capital expenditures planned for the construction of a new ballpark facility and an adjacent mixed-use complex, estimated at approximately $550 million for the remainder of 2016.