10-QPeriod: Q1 FY2022

Liberty Media Corp Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 6, 2022For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q1 2022 report shows a significant increase in consolidated revenue, driven by strong performance in its Sirius XM Holdings and Formula 1 segments. The company reported total revenue of $2.57 billion, up from $2.25 billion in the prior year period. Net earnings were $296 million, a substantial turnaround from a net loss of $14 million in Q1 2021. This financial improvement is largely attributed to robust operating income growth in Sirius XM Holdings and a recovery in Formula 1's revenue streams as global events normalized. The company continues to manage a complex structure with its tracking stocks (Liberty SiriusXM, Liberty Braves, Liberty Formula One), each representing different business segments. While Sirius XM Holdings remains the largest contributor, Formula 1 demonstrated impressive growth, nearly doubling its revenue year-over-year due to increased event frequency and commercial activity. The Braves Group also showed revenue growth, benefiting from the full return of fans to baseball games and the development project. The company maintains a strong liquidity position with significant cash and cash equivalents across its segments.

Financial Highlights

40 data points
Beta

Revenue

$2.57B

Net Income

$240.00M

9.3% Net Margin

Total Assets

$44.52B

Cash & Equivalents

$3.29B

Free Cash Flow

$551.00M

Financial Statements
Beta
Revenue$2.57B
SG&A Expenses$482.00M
Operating Expenses$2.11B
Operating Income$463.00M
Interest Expense$157.00M
Net Income$240.00M

Key Highlights

  • 1Consolidated revenue increased by 14% to $2.57 billion in Q1 2022, driven by Formula 1 and Sirius XM Holdings.
  • 2Net earnings turned positive at $296 million, a significant improvement from a net loss of $14 million in Q1 2021.
  • 3Sirius XM Holdings revenue grew 6% to $2.19 billion, with subscriber revenue up 7% and advertising revenue up 12%.
  • 4Formula 1 revenue nearly doubled, increasing by 100% to $360 million, due to more events and increased media rights and sponsorship income.
  • 5The company repurchased approximately $4.86 million worth of Series A and Series C Liberty SiriusXM common stock and Series A Liberty Formula One common stock during the quarter.
  • 6Total assets stood at $44.52 billion as of March 31, 2022, with total liabilities at $25.99 billion, resulting in total equity of $17.95 billion.

Frequently Asked Questions

The primary driver of Liberty Media's revenue growth in Q1 2022 was the strong performance of its Formula 1 segment, which saw its revenue nearly double year-over-year due to an increase in the number of events and recovery in media rights and sponsorship income. Sirius XM Holdings also contributed significantly to revenue growth.

Liberty Media experienced a significant improvement in profitability. The company reported net earnings of $296 million in Q1 2022, a substantial turnaround from a net loss of $14 million in the same period of 2021. This was driven by increased revenues and improved operating income across its key segments.

As of March 31, 2022, Liberty Media had total assets of $44.52 billion and total liabilities of $25.99 billion, resulting in total stockholders' equity of $17.95 billion. The company had total debt outstanding of $19.05 billion.

Liberty Media manages interest rate risk by maintaining a mix of fixed and variable rate debt and potentially using interest rate swaps. Stock price risk is managed through monitoring public holdings and sometimes using equity collars and other financial instruments. The company also monitors risks associated with LIBOR transition.