10-QPeriod: Q3 FY2019

Liberty Media Corp Quarterly Report for Q3 Ended Sep 30, 2019

Filed November 12, 2019For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported its third-quarter results for the period ending September 30, 2019. The company experienced revenue growth, largely driven by the acquisition of Pandora by its subsidiary SIRIUS XM Holdings and continued performance from the Braves Holdings segment. However, consolidated operating income saw a slight decrease year-over-year, primarily due to a decline in Braves Holdings' operating results. Adjusted OIBDA, a key performance indicator for Liberty Media, showed improvement driven by SIRIUS XM Holdings and Formula 1. The company's balance sheet reflects a significant increase in goodwill, largely attributable to the Pandora acquisition. Long-term debt also increased, reflecting borrowings across its various segments. Investors should note the ongoing integration of Pandora and the performance of the distinct tracking stock groups: Liberty SiriusXM, Liberty Braves, and Formula One.

Financial Highlights

42 data points
Beta

Revenue

$2.86B

Net Income

$193.00M

6.8% Net Margin

Total Assets

$43.65B

Cash & Equivalents

$694.00M

Free Cash Flow

$598.00M

Financial Statements
Beta
Revenue$2.86B
SG&A Expenses$440.00M
Operating Expenses$2.35B
Operating Income$507.00M
Interest Expense$169.00M
Net Income$193.00M

Key Highlights

  • 1Consolidated revenue increased to $2.86 billion for the three months ended September 30, 2019, up from $2.32 billion in the prior year period, driven by SIRIUS XM Holdings' acquisition of Pandora and growth in Braves Holdings.
  • 2SIRIUS XM Holdings (SIRIUS XM) revenue grew 37% year-over-year to $2.01 billion for the quarter, bolstered by the inclusion of Pandora's results and continued subscriber growth.
  • 3Adjusted OIBDA (a non-GAAP measure) for Liberty Media increased to $854 million for the quarter, up from $811 million in the prior year, reflecting operational improvements across key segments.
  • 4The acquisition of Pandora by SIRIUS XM Holdings for approximately $2.9 billion, completed in February 2019, significantly impacted the financial statements, contributing to increased goodwill ($1.57 billion recognized in the quarter).
  • 5Liberty Media's total assets grew to $43.6 billion as of September 30, 2019, from $40.8 billion at the end of 2018, largely due to the Pandora acquisition and increases in goodwill.
  • 6Long-term debt increased to $14.7 billion as of September 30, 2019, from $13.4 billion at the end of 2018, reflecting borrowings across the company's subsidiaries.
  • 7Net earnings attributable to Liberty stockholders decreased to $193 million for the three months ended September 30, 2019, compared to $268 million in the prior year period, impacted by various factors including increased interest expense and fluctuations in financial instruments.

Frequently Asked Questions

Revenue growth was primarily driven by the acquisition of Pandora Media by SIRIUS XM Holdings in February 2019, which significantly boosted SIRIUS XM's reported revenue. Additionally, the Braves Holdings segment also contributed to revenue growth.

The acquisition of Pandora by SIRIUS XM Holdings significantly increased Liberty Media's consolidated assets, particularly goodwill, which rose by $1.57 billion. Total assets grew to $43.6 billion. The acquisition also led to an increase in long-term debt and impacted operating expenses and net earnings.

Formula 1 revenue saw a slight decrease of $14 million for the three months ended September 30, 2019, compared to the prior year period, totaling $633 million. However, for the nine months ended September 30, 2019, Formula 1 revenue increased by $153 million to $1.5 billion. Operating income for Formula 1 remained relatively stable for the quarter, while Adjusted OIBDA showed a slight improvement.

Liberty Media's total liabilities increased to $21.5 billion as of September 30, 2019, with long-term debt standing at $14.7 billion. The company has various sources of liquidity including cash balances, cash generated from operations, proceeds from asset sales, and available borrowing capacity under margin loans and credit facilities. The company believes its liquidity is sufficient to cover projected future uses of cash.