10-QPeriod: Q3 FY2021

Liberty Media Corp Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 4, 2021For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q3 2021 report shows a significant increase in revenue and operating income, driven by strong performance across its core segments: Sirius XM Holdings, Formula 1, and Braves Holdings. Total revenue rose to $3.10 billion for the quarter, up from $2.73 billion in the prior year, with consolidated operating income more than doubling to $702 million. This growth reflects the ongoing recovery from pandemic impacts and strategic advancements within each business. The company's financial health is supported by robust operational metrics, particularly at Sirius XM Holdings, which continues to see subscriber growth and advertising revenue increases. Formula 1 has also demonstrated strong recovery with higher event revenues, and Braves Holdings is benefiting from the return of fans and development project progress. Liberty Media's diverse portfolio, managed through its tracking stock structure, appears to be navigating economic conditions effectively, with notable improvements in profitability and cash flow generation year-over-year.

Financial Highlights

41 data points
Beta

Revenue

$3.10B

Net Income

$328.00M

10.6% Net Margin

Total Assets

$44.42B

Cash & Equivalents

$2.86B

Free Cash Flow

$438.00M

Financial Statements
Beta
Revenue$3.10B
SG&A Expenses$481.00M
Operating Expenses$2.40B
Operating Income$702.00M
Interest Expense$168.00M
Net Income$328.00M

Key Highlights

  • 1Total revenue increased by 12.7% to $3.10 billion for the three months ended September 30, 2021, compared to $2.73 billion in the prior year.
  • 2Consolidated operating income more than doubled to $702 million for the three months ended September 30, 2021, up from $320 million in the prior year.
  • 3Sirius XM Holdings reported an Adjusted OIBDA of $720 million for the quarter, an increase from $661 million in the prior year, driven by subscriber and advertising revenue growth.
  • 4Formula 1 revenue increased to $668 million for the three months ended September 30, 2021, from $597 million in the prior year, benefiting from increased event participation and fan attendance.
  • 5Braves Holdings saw a significant increase in revenue to $234 million from $110 million in the prior year, reflecting the return of fans and progress on the development project.
  • 6The company's cash position remains strong, with consolidated cash and cash equivalents totaling $2.95 billion as of September 30, 2021.
  • 7Net earnings attributable to Liberty stockholders were $328 million for the three months ended September 30, 2021, a significant improvement from a net loss of $114 million in the prior year.

Frequently Asked Questions

The increase in revenue and operating income for the third quarter of 2021 is primarily driven by the strong performance across all three of Liberty Media's main segments: Sirius XM Holdings, Formula 1, and Braves Holdings. This includes increased subscriber and advertising revenue at Sirius XM, higher event and sponsorship income at Formula 1, and a return to normal operations with fans in attendance at Braves Holdings.

Sirius XM Holdings continues to show solid performance with an increase in revenue to $2.20 billion for the quarter, driven by a 5% growth in self-pay subscribers and a 23% increase in advertising revenue. Adjusted OIBDA for Sirius XM Holdings was $720 million, up from $661 million year-over-year. The company successfully navigated supply chain issues impacting equipment revenue in the short term.

Formula 1 experienced a revenue increase to $668 million for the quarter, up from $597 million in the prior year. This growth was driven by higher race promotion, media rights, and sponsorship revenues, as the number of events and fan attendance returned to more normal levels compared to the pandemic-impacted prior year. Operating income for Formula 1 improved significantly to $80 million from a loss of $104 million.

Braves Holdings saw a substantial revenue increase to $234 million, more than doubling from $110 million in the prior year. This improvement is attributed to the full return of fans for baseball games, leading to increased ticket sales and concessions, as well as progress on the mixed-use development project which contributed higher rental income.