10-QPeriod: Q2 FY2022

Liberty Media Corp Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 5, 2022For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q2 2022 report shows a notable increase in revenue, driven by strong performance in its Formula 1 and Sirius XM Holdings segments. Consolidated revenue rose to $3.26 billion for the quarter, up from $2.88 billion in the prior year, and $5.83 billion year-to-date, compared to $5.13 billion in 2021. This top-line growth translated into healthy earnings, with net earnings attributable to Liberty stockholders at $622 million for the quarter and $862 million year-to-date. The company continues to manage its debt effectively, with total debt decreasing from $18.59 billion at the end of 2021 to $17.53 billion as of June 30, 2022. Cash and cash equivalents stood at $2.65 billion, providing ample liquidity. The financial results reflect the ongoing recovery and growth across Liberty's diverse portfolio, particularly in live entertainment and sports, with Formula 1 and Sirius XM Holdings demonstrating robust operational performance. Investors should note the positive revenue trends and continued focus on financial discipline.

Financial Highlights

41 data points
Beta

Revenue

$3.26B

Net Income

$622.00M

19.1% Net Margin

Total Assets

$43.76B

Cash & Equivalents

$2.65B

Free Cash Flow

$670.00M

Financial Statements
Beta
Revenue$3.26B
SG&A Expenses$520.00M
Operating Expenses$2.70B
Operating Income$556.00M
Interest Expense$161.00M
Net Income$622.00M

Key Highlights

  • 1Consolidated revenue increased by 13% year-over-year for the three months ended June 30, 2022, reaching $3.26 billion, driven by strong performance in Formula 1 and Sirius XM Holdings.
  • 2Net earnings attributable to Liberty stockholders were $622 million for the quarter and $862 million for the six months ended June 30, 2022.
  • 3Total assets remained substantial at $43.76 billion as of June 30, 2022.
  • 4Long-term debt decreased to $16.97 billion from $15.70 billion at the end of 2021, indicating effective debt management.
  • 5Cash and cash equivalents stood at $2.65 billion as of June 30, 2022, providing strong liquidity.
  • 6Adjusted OIBDA (a non-GAAP measure) increased to $876 million for the quarter and $1.65 billion year-to-date, demonstrating operational profitability.
  • 7Formula 1 revenue saw a significant increase of 49% year-over-year for the quarter, reaching $744 million, attributed to higher race promotion, media rights, and sponsorship fees.

Frequently Asked Questions

The primary driver of revenue growth for Liberty Media in the second quarter of 2022 was the strong performance of its Formula 1 segment, which saw a 49% increase in revenue to $744 million, and its Sirius XM Holdings segment, which also contributed to the overall consolidated revenue growth.

Liberty Media has continued to manage its debt effectively. Total long-term debt decreased from $15.699 billion at December 31, 2021, to $16.971 billion as of June 30, 2022. The company's cash and cash equivalents stood at a healthy $2.645 billion, indicating a solid liquidity position to meet its financial obligations.

Sirius XM Holdings reported an increase in subscriber revenue and advertising revenue for both Sirius XM and Pandora. While costs have also increased, particularly in programming and content, the segment continues to be a significant contributor to Liberty Media's overall revenue and profitability. The company's focus on subscriber growth and advertising sales appears to be yielding positive results.

Formula 1 demonstrated a remarkable rebound, with primary revenue increasing significantly due to higher race promotion, media rights, and sponsorship fees. Events experienced record attendance, contributing to a strong operational performance for the segment.