10-QPeriod: Q1 FY2023

Liberty Media Corp Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 5, 2023For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation's (FWONK) Q1 2023 filing shows a slight revenue decrease compared to the prior year, primarily driven by a decline in Sirius XM Holdings' revenue, partially offset by growth in Formula 1 and Braves Holdings. Consolidated operating income also saw a significant decrease, largely attributable to underperformance at Sirius XM Holdings. While Adjusted OIBDA showed a decrease overall, the company is navigating a complex structure with its three tracking stock groups: Liberty SiriusXM, Liberty Braves, and Liberty Formula One. Investors should note the ongoing strategic transactions, including a planned Split-Off and Reclassification of the Braves Group, expected in Q2 2023. The company also highlighted ongoing efforts to manage its debt and liquidity, with sufficient resources projected to cover future obligations.

Financial Highlights

39 data points
Beta

Revenue

$412.00M

Net Income

$15.00M

3.6% Net Margin

Total Assets

$42.33B

Cash & Equivalents

$2.23B

Free Cash Flow

$661.00M

Financial Statements
Beta
Revenue$412.00M
SG&A Expenses$486.00M
Operating Expenses$2.22B
Operating Income-$33.00M
Interest Expense$196.00M
Net Income$15.00M

Key Highlights

  • 1Consolidated revenue for Q1 2023 was $2.556 billion, a decrease from $2.569 billion in Q1 2022.
  • 2Operating income decreased to $340 million in Q1 2023, down from $463 million in Q1 2022.
  • 3Sirius XM Holdings, the largest subsidiary, experienced a revenue decline to $2.144 billion from $2.186 billion year-over-year.
  • 4Formula 1 revenue increased to $381 million from $360 million, driven by media rights, race promotion, and sponsorship.
  • 5Liberty Media announced plans for a Split-Off of the Braves Group and a subsequent Reclassification of its tracking stocks, expected in Q2 2023.
  • 6The company reported cash and cash equivalents of $2.229 billion as of March 31, 2023.
  • 7Total debt stood at $16.508 billion as of March 31, 2023.

Frequently Asked Questions

Liberty Media Corporation reported a slight decrease in consolidated revenue to $2.556 billion for Q1 2023, down from $2.569 billion in the prior year. Operating income also declined to $340 million from $463 million. This performance was primarily influenced by a revenue decrease at Sirius XM Holdings, which was partially offset by growth in Formula 1 and Braves Holdings.

The Liberty SiriusXM Group, primarily driven by Sirius XM Holdings, saw its revenue decrease to $2.144 billion. The Liberty Formula One Group's revenue increased to $381 million, benefiting from growth in media rights, race promotion, and sponsorship. The Liberty Braves Group revenue also saw an increase to $31 million.

Yes, Liberty Media is planning a Split-Off of the Braves Group into a separate entity, Atlanta Braves Holdings, Inc., and a subsequent Reclassification of its remaining tracking stocks. Both transactions are expected to be completed in the second quarter of 2023, subject to necessary approvals. These are intended to be tax-free to stockholders.

As of March 31, 2023, Liberty Media had $2.229 billion in cash and cash equivalents. Total debt was $16.508 billion. The company indicated that its available liquidity sources, including cash balances, cash generated by subsidiaries, and borrowing capacity, are sufficient to cover its projected future uses of cash.