10-QPeriod: Q3 FY2023

Liberty Media Corp Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 3, 2023For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported its third-quarter 2023 financial results, revealing a mixed performance across its distinct tracking stock groups. While consolidated revenue saw a slight year-over-year decrease due to the spin-off of Braves Holdings and lower Sirius XM revenue, Formula 1 revenue experienced significant growth. The company's strategic restructuring, including the split-off of Atlanta Braves Holdings and the reclassification into Liberty SiriusXM, Liberty Formula One, and Liberty Live tracking stocks, is now reflected in the financial statements. Operating income improved significantly driven by Formula 1's strong performance and increased contributions from Sirius XM, despite a decline in Braves Holdings' contribution post-spin-off. The company continues to manage its debt obligations, with ongoing efforts to optimize its capital structure. Investors should note the continued focus on these distinct business segments and their individual financial trajectories as Liberty Media navigates evolving market conditions.

Financial Highlights

39 data points
Beta

Revenue

$936.00M

Net Income

$385.00M

41.1% Net Margin

Total Assets

$41.52B

Cash & Equivalents

$2.11B

Free Cash Flow

$683.00M

Financial Statements
Beta
Revenue$936.00M
SG&A Expenses$93.00M
Operating Expenses$835.00M
Operating Income$101.00M
Interest Expense$196.00M
Net Income$385.00M

Key Highlights

  • 1Consolidated revenue decreased by 1.2% to $3.207 billion for the three months ended September 30, 2023, compared to $3.247 billion in the prior year period.
  • 2Formula 1 revenue saw a significant increase of 25.5% to $887 million for the three months ended September 30, 2023, compared to $715 million in the prior year period.
  • 3Operating income increased by 24.3% to $629 million for the three months ended September 30, 2023, compared to $506 million in the prior year period.
  • 4Net earnings attributable to Liberty stockholders were $385 million for the three months ended September 30, 2023, a slight decrease from $391 million in the prior year period.
  • 5The company completed the split-off of Atlanta Braves Holdings and reclassified its common stock into three new tracking stocks: Liberty SiriusXM, Liberty Formula One, and Liberty Live.
  • 6Cash and cash equivalents stood at $2.112 billion as of September 30, 2023, compared to $2.246 billion as of December 31, 2022.
  • 7Total assets decreased to $41.515 billion as of September 30, 2023, from $42.464 billion as of December 31, 2022.

Frequently Asked Questions

Consolidated revenue saw a slight decrease driven by a decline in Braves Holdings revenue (due to its spin-off) and Sirius XM Holdings revenue. However, this was partially offset by a significant increase in Formula 1 revenue, primarily due to higher race promotion, media rights, and sponsorship fees, as well as an additional Formula 1 event held during the quarter.

The split-off of Atlanta Braves Holdings and the subsequent reclassification into Liberty SiriusXM, Liberty Formula One, and Liberty Live tracking stocks are reflected prospectively in the financial statements. This means that comparative periods are presented to reflect the new structure, and the historical performance of the Braves Group is now presented separately or excluded from continuing operations as applicable.

As of September 30, 2023, Liberty Media Corporation reported cash and cash equivalents of $2.112 billion, a slight decrease from $2.246 billion at the end of 2022. The company also has significant availability under its margin loans and believes its sources of liquidity are sufficient to cover projected future uses of cash.

The filing mentions ongoing legal proceedings, including a class action suit against Sirius XM Holdings related to pre-1972 sound recordings and multiple class actions and arbitrations concerning Sirius XM Holdings' pricing and billing practices, specifically related to a 'U.S. Music Royalty Fee'. While Sirius XM Holdings believes it has substantial defenses, these matters could potentially result in material impacts if adversely resolved.