10-QPeriod: Q3 FY2024

Liberty Media Corp Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 12, 2024For Securities:FWONKFWONAFWONB

Summary

Liberty Media Corporation (FWONK) reported its financial results for the period ending September 30, 2024. The company experienced a net loss of $2.87 billion for the quarter, largely impacted by discontinued operations related to the Liberty SiriusXM Holdings Split-Off, which resulted in a significant loss of $3.002 billion. Continuing operations showed a net earning of $132 million for the quarter. Total revenue for the quarter was $911 million, a slight decrease from the prior year, with Formula 1 revenue being the primary contributor. The company's liquidity remains robust, with significant cash and cash equivalents. The ongoing strategic initiatives, including the potential acquisition of Dorna Sports, are key developments for investors to monitor. The balance sheet as of September 30, 2024, shows total assets of $13.2 billion, a significant decrease from the previous year, largely due to the discontinuation of operations. Total liabilities stand at $5.75 billion. The company continues to manage its debt obligations, with long-term debt at $4.29 billion. Investors should pay close attention to the performance of the Formula 1 and Liberty Live tracking stocks, as well as any further strategic maneuvers that could impact the company's structure and future profitability.

Financial Highlights

39 data points
Beta

Revenue

$911.00M

Net Income

-$2.37B

-259.9% Net Margin

Total Assets

$13.21B

Cash & Equivalents

$3.05B

Free Cash Flow

-$571.00M

Financial Statements
Beta
Revenue$911.00M
SG&A Expenses$118.00M
Operating Expenses$804.00M
Operating Income$110.00M
Net Income-$2.37B

Key Highlights

  • 1Net loss of $2.87 billion for the three months ended September 30, 2024, heavily influenced by discontinued operations ($3.002 billion loss).
  • 2Net earnings from continuing operations of $132 million for the three months ended September 30, 2024.
  • 3Total revenue for the quarter was $911 million, down from $936 million in the prior year's quarter, with Formula 1 revenue contributing significantly.
  • 4Total assets decreased substantially to $13.2 billion as of September 30, 2024, primarily due to the discontinuation of Liberty Sirius XM Holdings.
  • 5Company is actively pursuing strategic initiatives, including an agreement to acquire approximately 86% of Dorna Sports, S.L. for approximately €3.0 billion.
  • 6Cash and cash equivalents remained strong at $3.054 billion as of September 30, 2024.
  • 7Completed the Liberty Sirius XM Holdings Split-Off on September 9, 2024, with Liberty Sirius XM Holdings becoming an independent public company.

Frequently Asked Questions

The Liberty Sirius XM Holdings Split-Off, completed on September 9, 2024, resulted in Liberty Sirius XM Holdings becoming an independent public company. Consequently, Liberty Media Corporation's condensed consolidated financial statements now present Liberty Sirius XM Holdings as a discontinued operation, which significantly impacted the reported net loss for the quarter due to a $3.002 billion loss attributed to discontinued operations.

Formula 1 revenue for the three months ended September 30, 2024, was $861 million, a slight decrease from $887 million in the prior year's quarter. Despite the slight revenue dip, Formula 1's Adjusted OIBDA increased to $221 million from $215 million, indicating operational strength. The company is also progressing with its strategic plans, including an agreement to acquire Dorna Sports.

Liberty Media Corporation maintains a strong liquidity position, with cash and cash equivalents totaling $3.054 billion as of September 30, 2024. The company also has access to borrowing capacity and expects to fund its future cash needs through various sources, including cash on hand, margin loans, debt instruments, and distributions from operating subsidiaries.

A significant ongoing initiative is the planned acquisition of approximately 86% of Dorna Sports, S.L., for approximately €3.0 billion, expected to be funded by cash. The company also recently issued Series C Liberty Formula One common stock to raise proceeds that will partially fund this acquisition and for general corporate purposes. Investors should monitor the progress of the Dorna acquisition and its impact on the company's financial structure.