10-QPeriod: Q3 FY2020

Liberty Media Corp Quarterly Report for Q3 Ended Sep 30, 2020

Filed November 5, 2020For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported its third-quarter 2020 financial results, highlighting a significant decline in revenue primarily driven by impacts on its Formula 1 and Braves Group segments due to the COVID-19 pandemic. While Sirius XM Holdings demonstrated resilience with slight revenue growth, the overall consolidated revenue decreased year-over-year. The company experienced a net loss attributable to Liberty stockholders for the quarter. Significant operational impacts from COVID-19 were noted across Formula 1, the Atlanta Braves, and Live Nation, leading to reduced event activity and fan attendance. Despite the revenue decline, Liberty Media managed its liquidity effectively, with substantial cash and cash equivalents and available credit facilities. The company continued its share repurchase programs and managed its debt structure, with no debt covenant violations reported as of September 30, 2020. The financial statements reflect a complex structure with distinct tracking stocks for Liberty SiriusXM, Liberty Braves, and Formula One, with reattribution of certain assets and liabilities between the Formula One and Liberty SiriusXM groups occurring in April 2020.

Financial Highlights

41 data points
Beta

Revenue

$2.73B

Net Income

-$114.00M

-4.2% Net Margin

Total Assets

$43.79B

Cash & Equivalents

$1.94B

Free Cash Flow

$187.00M

Financial Statements
Beta
Revenue$2.73B
SG&A Expenses$423.00M
Operating Expenses$2.41B
Operating Income$320.00M
Interest Expense$153.00M
Net Income-$114.00M

Key Highlights

  • 1Consolidated revenue decreased by $124 million and $1,019 million for the three and nine months ended September 30, 2020, respectively, compared to the prior year, largely due to impacts on Formula 1 and Braves Holdings from COVID-19.
  • 2Net loss attributable to Liberty stockholders was $114 million for the three months ended September 30, 2020, compared to net earnings of $193 million in the prior year period.
  • 3Sirius XM Holdings showed resilience, with revenue increasing slightly to $2,025 million for the three months ended September 30, 2020, compared to $2,011 million in the prior year.
  • 4Formula 1 revenue significantly declined, down $36 million and $839 million for the three and nine months ended September 30, 2020, respectively, due to the impact of COVID-19 on event schedules and fan attendance.
  • 5Braves Holdings revenue also saw a substantial decrease of $102 million and $300 million for the three and nine months ended September 30, 2020, respectively, impacted by a shortened baseball season and no fan attendance.
  • 6The company reported total assets of $43,789 million and total liabilities of $22,409 million as of September 30, 2020.
  • 7Cash and cash equivalents stood at $1,974 million as of September 30, 2020, with $1,586 million attributed to the Formula One Group.

Frequently Asked Questions

The primary driver of the revenue decline was the significant negative impact of the COVID-19 pandemic on the Formula 1 and Braves Group segments. Reduced event activity, cancelled fan attendance, and altered schedules led to substantial revenue decreases in these areas.

Sirius XM Holdings demonstrated resilience, reporting a slight increase in revenue for the third quarter of 2020 compared to the prior year, indicating stable subscription performance despite broader economic challenges.

Liberty Media maintained a strong liquidity position with $1,974 million in cash, cash equivalents, and restricted cash. Additionally, the company had access to significant borrowing capacity under its margin loan facilities.

On April 22, 2020, the company's board approved a reattribution of certain assets and liabilities between the Formula One Group and the Liberty SiriusXM Group. This involved the transfer of Liberty's Live Nation stake, convertible notes, bond hedge, and warrants to the Liberty SiriusXM Group, among other adjustments.