10-QPeriod: Q1 FY2021

Liberty Media Corp Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 7, 2021For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) first quarter 2021 results, filed on May 7, 2021, show a net loss of $14 million, a reversal from the prior year's net earnings of $2 million. This was driven by a significant increase in "Impairment, restructuring and acquisition costs" ($245 million in Q1 2021 vs. $0 in Q1 2020) and a decrease in "Share of earnings (losses) of affiliates, net" (a loss of $95 million in Q1 2021 vs. a loss of $62 million in Q1 2020). Total revenue for the quarter increased by 12% to $2.254 billion, primarily due to a substantial rebound in Formula 1 revenue ($180 million vs. $39 million) and continued growth in Sirius XM Holdings revenue ($2.058 billion vs. $1.952 billion). However, operating income declined significantly due to the aforementioned impairment charges and other factors, resulting in a consolidated operating income of $142 million for the quarter, down from $246 million in the prior year. The company's balance sheet shows total assets of $44.465 billion as of March 31, 2021, with goodwill and intangible assets representing a significant portion. Total liabilities stood at $24.992 billion, with long-term debt at $17.330 billion. The company maintains substantial cash and cash equivalents, totaling $2.994 billion at the end of the quarter.

Financial Highlights

40 data points
Beta

Revenue

$2.25B

Net Income

-$116.00M

-5.1% Net Margin

Total Assets

$44.47B

Cash & Equivalents

$2.99B

Free Cash Flow

$497.00M

Financial Statements
Beta
Revenue$2.25B
SG&A Expenses$410.00M
Operating Expenses$2.11B
Operating Income$142.00M
Interest Expense$158.00M
Net Income-$116.00M

Key Highlights

  • 1Net loss of $14 million for the quarter, compared to net earnings of $2 million in the prior year.
  • 2Total revenue increased 12% to $2.254 billion, driven by strong performance in Formula 1 and Sirius XM Holdings.
  • 3Formula 1 revenue surged to $180 million from $39 million year-over-year, indicating a recovery from pandemic-related disruptions.
  • 4Sirius XM Holdings revenue grew 5.5% to $2.058 billion, supported by subscriber growth and increased advertising.
  • 5Significant "Impairment, restructuring and acquisition costs" of $245 million negatively impacted net income.
  • 6Total assets stood at $44.465 billion, with goodwill and intangible assets totaling over $34 billion.
  • 7Long-term debt remained substantial at $17.330 billion as of March 31, 2021.

Frequently Asked Questions

The net loss of $14 million in Q1 2021 was primarily due to a significant increase in "Impairment, restructuring and acquisition costs" to $245 million, compared to no such charges in the prior year. Additionally, the "Share of earnings (losses) of affiliates, net" also contributed negatively, showing a loss of $95 million in Q1 2021 versus a loss of $62 million in Q1 2020.

The Formula 1 segment showed a strong recovery, with revenue increasing significantly to $180 million in Q1 2021, up from $39 million in the prior year. This was driven by higher race promotion, media rights, and sponsorship revenues, as well as a one-time settlement related to a race promoter.

As of March 31, 2021, Liberty Media Corporation had total liabilities of $24.992 billion, with long-term debt amounting to $17.330 billion. The company also had substantial cash and cash equivalents of $2.994 billion.

The main revenue-generating segments are Sirius XM Holdings, which contributed $2.058 billion in Q1 2021, and Formula 1, which contributed $180 million in Q1 2021. The Braves Group contributes a smaller portion of revenue.