10-QPeriod: Q2 FY2019

Liberty Media Corp Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 8, 2019For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q2 2019 report shows a significant increase in consolidated revenue, primarily driven by the acquisition of Pandora by SIRIUS XM Holdings and growth across its core segments: Liberty SiriusXM, Formula 1, and Braves Holdings. The company reported consolidated revenue of $2.81 billion for the quarter, up from $2.20 billion in the prior year. Operating income also saw a healthy increase, reflecting improved performance in the Liberty SiriusXM and Formula 1 segments. Adjusted OIBDA, a key non-GAAP metric, improved significantly, indicating strong operational performance. The company ended the quarter with a solid liquidity position, including substantial cash and cash equivalents and available credit facilities.

Financial Highlights

41 data points
Beta

Revenue

$2.81B

Net Income

$116.00M

4.1% Net Margin

Total Assets

$43.70B

Cash & Equivalents

$697.00M

Free Cash Flow

$523.00M

Financial Statements
Beta
Revenue$2.81B
SG&A Expenses$436.00M
Operating Expenses$2.34B
Operating Income$461.00M
Interest Expense$167.00M
Net Income$116.00M

Key Highlights

  • 1Consolidated revenue for Q2 2019 increased by 27.5% year-over-year to $2.81 billion, driven significantly by the SIRIUS XM Holdings acquisition of Pandora.
  • 2Operating income grew to $461 million from $374 million in the prior year's quarter, with notable improvements in the Liberty SiriusXM Group and Formula One Group segments.
  • 3Adjusted OIBDA (a non-GAAP measure) increased to $815 million from $727 million year-over-year, highlighting operational efficiency and growth.
  • 4SIRIUS XM Holdings' acquisition of Pandora, completed in February 2019, is starting to contribute to revenue and is being integrated into financial reporting.
  • 5The Formula 1 segment showed revenue growth, driven by broadcasting and advertising, despite a slight decrease in race promotion fees due to calendar differences.
  • 6The company maintained a strong liquidity position, with $751 million in cash, cash equivalents, and restricted cash as of June 30, 2019, and substantial availability under its margin loans.
  • 7Stock-based compensation expense increased across segments, particularly at SIRIUS XM Holdings, reflecting ongoing equity awards.

Frequently Asked Questions

The primary driver of the revenue increase was the acquisition of Pandora by SIRIUS XM Holdings in February 2019. This acquisition significantly contributed to the consolidated revenue growth reported by Liberty Media.

The Formula 1 segment reported an increase in revenue to $620 million from $585 million in the prior year's quarter. This growth was primarily driven by increases in broadcasting revenue due to contractual escalations and a higher number of events recognized within the period, as well as advertising and sponsorship revenue. Operating income also improved significantly.

Liberty Media maintained a strong liquidity position with $751 million in cash, cash equivalents, and restricted cash as of June 30, 2019. Additionally, the company had substantial availability under its margin loans, with $875 million available under the SIRIUS XM Holdings Margin Loan and $600 million under the Live Nation Margin Loan.

Stock-based compensation expense increased across the company's segments, most notably at SIRIUS XM Holdings. This increase reflects ongoing equity awards to management and employees. The total unrecognized compensation cost related to unvested awards was approximately $28 million for Liberty and $406 million for SIRIUS XM Holdings as of June 30, 2019, to be recognized over future periods.