Liberty Media Corporation (“Liberty Media” or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today
reported second quarter 2024 results. Headlines include(1):
- Attributed to Liberty SiriusXM Group
- SiriusXM reported second quarter 2024 operating and financial
results
- Second quarter 2024 revenue of $2.18 billion
- Ad revenue of $443 million
- Net income of $316 million; diluted EPS of $0.08
- Adjusted EBITDA(2) of $702 million
- Free cash flow(2) of $343 million
- SiriusXM reiterated 2024 financial guidance
- Liberty Media’s ownership of SiriusXM was 83.3% as of July
30th
- Expect to complete planned combination of Liberty SiriusXM
Group and SiriusXM on September 9th
- Liberty repaid $35 million under SiriusXM margin loan in second
quarter
- Attributed to Formula One Group
- On track to complete MotoGP acquisition by year-end 2024
- F1 announced 2025 Sprint calendar across China, Miami, Belgium,
Austin, Brazil and Qatar
- Expanded partnership with Las Vegas Convention and Visitors
Authority to Official Partner of F1
- Attributed to Liberty Live Group
- Fair value of Live Nation investment was $6.5 billion as of
June 30th
“We are excited that the combination of Liberty SiriusXM Group
with SiriusXM is expected to close on September 9th. SiriusXM drove
sequential adjusted EBITDA and free cash flow improvement in the
quarter, demonstrating their commitment to strong financial results
while supporting ongoing growth initiatives,” said Greg Maffei,
Liberty Media President and CEO. “Formula 1 is having an incredible
season with particularly high engagement in growth markets. Five
races have already set US live viewership records for their events,
and we look forward to our new opportunities ahead including
Apple’s highly anticipated F1 film which will debut in June 2025.
Live Nation achieved record concerts profitability and global
demand hasn’t slowed as indicators point to another record year
ahead.”
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months ended June 30, 2024 to
the same period in 2023.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
second quarter of 2024. In the second quarter, $11 million of
corporate level selling, general and administrative expense
(including stock-based compensation expense) was allocated to
Liberty SiriusXM Group.
2Q23
2Q24
% Change
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,250
$
2,178
(3
)%
Total Liberty SiriusXM Group
$
2,250
$
2,178
(3
)%
Operating Income (Loss)
SiriusXM
464
482
4
%
Corporate and other
(12
)
(11
)
8
%
Total Liberty SiriusXM Group
$
452
$
471
4
%
Adjusted OIBDA (Loss)
SiriusXM
702
688
(2
)%
Corporate and other
(8
)
(9
)
(13
)%
Total Liberty SiriusXM Group
$
694
$
679
(2
)%
SiriusXM is a separate publicly traded company and additional
information about SiriusXM can be obtained through its website and
filings with the Securities and Exchange Commission. SiriusXM
reported its stand-alone second quarter results on August 1, 2024.
For additional detail on SiriusXM’s financial results for the
second quarter, please see SiriusXM’s earnings release posted to
its Investor Relations website. For presentation purposes on page
one of this release, we include the results of SiriusXM, as
reported by SiriusXM, without regard to the purchase accounting
adjustments applied by us for purposes of our financial statements.
Liberty Media believes the presentation of financial results as
reported by SiriusXM is useful to investors as the comparability of
those results is best understood in the context of SiriusXM's
historical financial presentation.
The businesses and assets attributed to Liberty SiriusXM Group
consist primarily of Liberty Media’s interest in SiriusXM, which
includes its subsidiary Pandora.
FORMULA ONE GROUP – The following table provides the
financial results attributed to Formula One Group for the second
quarter of 2024. In the second quarter, Formula One Group incurred
$14 million of corporate level selling, general and administrative
expense (including stock-based compensation expense).
2Q23
2Q24
amounts in millions
Formula One Group
Revenue
Formula 1
$
724
$
871
Corporate and other
—
141
Intergroup elimination
—
(24
)
Total Formula One Group
$
724
$
988
Operating Income (Loss)
Formula 1
$
72
$
84
Corporate and other
(20
)
(25
)
Total Formula One Group
$
52
$
59
Adjusted OIBDA (Loss)
Formula 1
$
155
$
160
Corporate and other
(14
)
5
Total Formula One Group
$
141
$
165
F1 Operating Results
“The F1 season is seeing phenomenal racing, with seven different
winners through fourteen races and tighter gaps across the grid.
Social media followers are up over 30% across F1 platforms and we
had 3.7 million race attendees through the first half of the season
with ten sellout crowds,” said Stefano Domenicali, Formula 1
President and CEO. “F1 Academy is off to a strong start in its
first season running all events alongside F1 race weekends.
Together with the Sprint and FIA F2 and F3, it is adding to the
exciting on-track action and bringing added value to our fans,
promoters and sponsors.”
The following table provides the operating results of Formula 1
(“F1”).
2Q23
2Q24
% Change
amounts in millions
Primary Formula 1 revenue
$
618
$
739
20
%
Other Formula 1 revenue
106
132
25
%
Total Formula 1 revenue
$
724
$
871
20
%
Operating expenses (excluding stock-based
compensation):
Team payments
(344
)
(435
)
(26
)%
Other cost of Formula 1 revenue
(175
)
(210
)
(20
)%
Cost of Formula 1 revenue
$
(519
)
$
(645
)
(24
)%
Selling, general and administrative
expenses
(50
)
(66
)
(32
)%
Adjusted OIBDA
$
155
$
160
3
%
Stock-based compensation
(1
)
(1
)
—
%
Depreciation and Amortization(a)
(82
)
(75
)
9
%
Operating income (loss)
$
72
$
84
17
%
Number of races in period
6
8
___________________________
a)
Includes $74 million and $61 million of
amortization related to purchase accounting for the periods ended
June 30, 2023 and June 30, 2024, respectively, that is excluded
from calculations for purposes of team payments.
Primary F1 revenue represents the majority of F1’s revenue and
is derived from (i) race promotion revenue, (ii) media rights fees
and (iii) sponsorship fees.
There were eight races held in the second quarter of 2024,
compared to six races held in the second quarter of 2023. There are
24 events scheduled for the 2024 race calendar, compared to 22
events held in 2023.
Primary F1 revenue increased in the second quarter with growth
across media rights and sponsorship partly driven by two more races
held in the current period, which resulted in a greater proportion
of season-based revenue recognized, as well as contractual
increases in fees. Media rights revenue also benefited from
continued growth in F1 TV subscription revenue. Sponsorship revenue
also increased due to the impact of the mix of races on event
specific fees and recognition of revenue from new sponsors. Race
promotion revenue was relatively flat in the second quarter as fees
from the additional races were offset by the different mix of
events compared to the prior year period. Other F1 revenue
increased in the second quarter primarily due to higher
hospitality, freight, travel, technical services and F2 and F3
income driven by the additional races held in the current
period.
Operating income and Adjusted OIBDA(2) increased in the second
quarter. Team payments increased due to the pro rata recognition of
payments across the race season with two more races held in the
current period and the expectation of higher team payments for the
full year. Other cost of F1 revenue is largely variable in nature
and is mostly derived from servicing both Primary and Other F1
revenue opportunities. These costs increased due to higher
commissions and partner servicing costs associated with growth in
Primary F1 revenue streams as well as higher hospitality, FIA
regulatory, digital, technical and travel costs from the additional
races held in the current period. Other cost of F1 revenue in the
second quarter was also impacted by higher costs associated with F1
Academy and lease expense for the Las Vegas Grand Prix Plaza which
wasn’t incurred in the prior year. Selling, general and
administrative expense increased due to higher personnel, IT and
property costs as well as legal and other professional fees,
partially offset by lower marketing costs, foreign exchange
favorability and bad debt recoveries.
Corporate and Other Operating
Results
Liberty closed the Quint acquisition on January 2nd and began
consolidating Quint results within the Corporate and Other segment.
Corporate and Other revenue increased in the second quarter due to
the Quint acquisition and $6 million of rental income related to
the Las Vegas Grand Prix Plaza. Quint’s revenue is seasonal around
its largest events, which are generally during the second and
fourth quarters, and in the second quarter Quint results were
primarily driven by the Kentucky Derby and F1 Experiences across
the eight races held. Corporate and Other Adjusted OIBDA for the
second quarter of 2024 includes the rental income related to the
Las Vegas Grand Prix Plaza, Quint results and other corporate
overhead.
The businesses and assets attributed to Formula One Group
consist primarily of Liberty Media’s subsidiaries, F1 and
Quint.
LIBERTY LIVE GROUP – In the second quarter, $2 million of
corporate level selling, general and administrative expense
(including stock-based compensation expense) was allocated to
Liberty Live Group.
The businesses and assets attributed to Liberty Live Group
consist of Liberty Media’s interest in Live Nation and other
minority investments.
Share Repurchases
There were no repurchases of Liberty Media’s common stock from
May 1 through July 31, 2024. The total remaining repurchase
authorization for Liberty Media as of August 1, 2024 is $1.1
billion and can be applied to repurchases of common shares of any
of the Liberty Media tracking stocks.
FOOTNOTES
1)
Liberty Media will discuss these headlines
and other matters on Liberty Media's earnings conference call that
will begin at 10:00 a.m. (E.T.) on August 8, 2024. For information
regarding how to access the call, please see “Important Notice”
later in this document.
2)
For definitions of Adjusted OIBDA (as
defined by Liberty Media) and adjusted EBITDA and free cash flow
(as defined by SiriusXM) and applicable reconciliations see the
accompanying schedules.
NOTES
The following financial information with respect to Liberty
Media's equity affiliates, available for sale securities, cash and
debt is intended to supplement Liberty Media's condensed
consolidated balance sheet and statement of operations to be
included in its Form 10-Q for the period ended June 30, 2024.
Fair Value of
Corporate Public Holdings
(amounts in millions)
3/31/2024
6/30/2024
Liberty SiriusXM Group
N/A
N/A
Formula One Group
Other Monetizable Public Holdings(a)
50
50
Total Formula One Group
$
50
$
50
Liberty Live Group
Live Nation Investment(b)
7,366
6,529
Other Monetizable Public Holdings(a)
125
-
Total Liberty Live Group
$
7,491
$
6,529
Total Liberty Media
$
7,541
$
6,579
___________________________
a)
Represents the carrying value of other
public holdings that are accounted for at fair value. Formula One
Group purchased $50 million of time deposits during the first
quarter of 2024 which are classified as short term marketable
securities. Liberty Live Group liquidated $107 million of
exchange-traded funds during the second quarter of 2024.
b)
Represents the fair value of the equity
investment in Live Nation. In accordance with GAAP, Liberty Media
accounts for its investment in the equity of Live Nation using the
equity method of accounting and includes it in its condensed
consolidated balance sheet at $290 million and $319 million as of
March 31, 2024 and June 30, 2024, respectively.
Cash and Debt
The following presentation is provided to separately identify
cash and debt information.
(amounts in millions)
3/31/2024
6/30/2024
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
135
$
188
Formula One Group(b)
1,233
1,491
Liberty Live Group
298
406
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
1,666
$
2,085
Debt:
SiriusXM senior notes(c)
$
8,750
$
8,750
3.75% convertible notes due 2028(d)
575
575
2.75% SiriusXM exchangeable senior
debentures due 2049(d)
585
585
SiriusXM margin loan
630
595
Other subsidiary debt(e)
530
350
Total Attributed Liberty SiriusXM Group
Debt
$
11,070
$
10,855
Unamortized discount, fair market value
adjustment and deferred loan costs
52
(42
)
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
11,122
$
10,813
2.25% convertible notes due 2027(d)
475
475
Formula 1 term loan and revolving credit
facility
2,398
2,389
Other corporate level debt
56
56
Total Attributed Formula One Group
Debt
$
2,929
$
2,920
Fair market value adjustment
(27
)
(8
)
Total Attributed Formula One Group Debt
(GAAP)
$
2,902
$
2,912
Formula 1 leverage(f)
1.7x
1.3x
0.5% Live Nation exchangeable senior
debentures due 2050(d)
62
62
2.375% Live Nation exchangeable senior
debentures due 2053(d)
1,150
1,150
Live Nation margin loan
—
—
Total Attributed Liberty Live Group
Debt
$
1,212
$
1,212
Unamortized discount, fair market value
adjustment and deferred loan costs
206
91
Total Attributed Liberty Live Group
Debt (GAAP)
$
1,418
$
1,303
Total Liberty Media Corporation Debt
(GAAP)
$
15,442
$
15,028
___________________________
a)
Includes $71 million and $100 million of
cash held at SiriusXM as of March 31, 2024 and June 30, 2024,
respectively.
b)
Includes $1,016 million and $1,245 million
of cash held at F1 as of March 31, 2024 and June 30, 2024,
respectively, and $60 million and $58 million of cash held at Quint
as of March 31, 2024 and June 30, 2024, respectively.
c)
Outstanding principal amount of Senior
Notes or Term Loan with no reduction for the net unamortized
discount.
d)
Face amount of the convertible notes and
exchangeable debentures with no fair market value adjustment.
e)
Includes SiriusXM revolving credit
facility and term loan.
f)
As defined in F1’s credit facilities for
covenant calculations.
Liberty Media and its consolidated subsidiaries are in
compliance with their debt covenants as of June 30, 2024.
Total cash and cash equivalents attributed to Liberty SiriusXM
Group increased $53 million in the second quarter as cash from
operations at SiriusXM more than offset debt repayment at both
SiriusXM and Liberty SiriusXM Group and capital expenditures and
return of capital at SiriusXM. Included in the cash and cash
equivalents balance attributed to Liberty SiriusXM Group at June
30, 2024 is $100 million held at SiriusXM. Although SiriusXM is a
consolidated subsidiary, it is a separate public company with a
non-controlling interest, therefore Liberty Media does not have
ready access to SiriusXM’s cash balance. Liberty SiriusXM Group
received $86 million of dividends from SiriusXM during the
quarter.
Total debt attributed to Liberty SiriusXM Group decreased $215
million during the quarter due to net debt repayment at SiriusXM
and Liberty SiriusXM Group repaying $35 million under its SiriusXM
margin loan.
Total cash and cash equivalents attributed to Formula One Group
increased $258 million during the quarter due to cash from
operations at F1. Total debt at Formula One Group was relatively
flat in the second quarter.
Total cash and cash equivalents attributed to Liberty Live Group
increased $108 million during the second quarter primarily due to
the monetization of exchange-traded funds. Total debt attributed to
Liberty Live Group was flat during the quarter.
Important Notice: Liberty Media Corporation (Nasdaq:
LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) will discuss
Liberty Media's earnings release on a conference call which will
begin at 10:00 a.m. (E.T.) on August 8, 2024. The call can be
accessed by dialing (877) 704-2829 or (215) 268-9864, passcode
13742818 at least 10 minutes prior to the start time. The call will
also be broadcast live across the Internet and archived on our
website. To access the webcast go to
https://www.libertymedia.com/investors/news-events/ir-calendar.
Links to this press release will also be available on the Liberty
Media website.
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements about business strategies, market
potential, future financial performance and prospects, the planned
combination of Liberty SiriusXM Group and SiriusXM (the “Proposed
Combination”), the planned acquisition of MotoGP, expectation’s
regarding SiriusXM’s and Live Nation’s businesses and other matters
that are not historical facts. These forward-looking statements
involve many risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
such statements, including, without limitation, the satisfaction of
all conditions to the Proposed Combination, the satisfaction of all
conditions to closing for the transaction with MotoGP, possible
changes in market acceptance of new products or services,
regulatory matters affecting our businesses, the unfavorable
outcome of pending or future litigation, the failure to realize
benefits of acquisitions, rapid technological and industry change,
failure of third parties to perform, continued access to capital on
terms acceptable to Liberty Media and changes in law, including
consumer protection laws, and their enforcement. These
forward-looking statements speak only as of the date of this press
release, and Liberty Media expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
Liberty Media's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based. Please refer to the publicly filed documents of Liberty
Media, including the most recent Forms 10-K and 10-Q, for
additional information about Liberty Media and about the risks and
uncertainties related to Liberty Media's business which may affect
the statements made in this press release.
LIBERTY MEDIA
CORPORATION
BALANCE SHEET
INFORMATION
June 30, 2024
(unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
188
1,491
406
2,085
Trade and other receivables, net
644
182
—
826
Other current assets
365
363
—
728
Total current assets
1,197
2,036
406
3,639
Investments in affiliates, accounted for
using the equity method
1,601
37
345
1,983
Property and equipment, at cost
3,299
991
—
4,290
Accumulated depreciation
(2,001
)
(166
)
—
(2,167
)
1,298
825
—
2,123
Intangible assets not subject to
amortization
Goodwill
15,209
4,191
—
19,400
FCC licenses
8,600
—
—
8,600
Other
1,242
—
—
1,242
25,051
4,191
—
29,242
Intangible assets subject to amortization,
net
1,001
2,827
—
3,828
Other assets
673
894
249
1,817
Total assets
$
30,821
10,810
1,000
42,632
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
38
(44
)
6
—
Accounts payable and accrued
liabilities
1,296
472
—
1,768
Current portion of debt
581
37
67
685
Deferred revenue
1,128
712
—
1,840
Other current liabilities
142
37
—
179
Total current liabilities
3,185
1,214
73
4,472
Long-term debt
10,232
2,875
1,236
14,343
Deferred income tax liabilities
2,371
—
(162
)
2,210
Other liabilities
1,227
173
—
1,400
Total liabilities
17,015
4,262
1,147
22,425
Equity / Attributed net assets
10,682
6,548
(170
)
17,060
Noncontrolling interests in equity of
subsidiaries
3,124
—
23
3,147
Total liabilities and equity
$
30,821
10,810
1,000
42,632
LIBERTY MEDIA
CORPORATION
STATEMENT OF OPERATIONS
INFORMATION
Three months ended June 30,
2024 (unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,178
—
—
2,178
Formula 1 revenue
—
853
—
853
Other revenue
—
135
—
135
Total revenue
2,178
988
—
3,166
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
708
—
—
708
Programming and content(1)
148
—
—
148
Customer service and billing(1)
108
—
—
108
Other(1)
59
—
—
59
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
639
—
639
Other cost of sales
—
94
—
94
Subscriber acquisition costs
92
—
—
92
Other operating expenses(1)
71
5
—
76
Selling, general and administrative(1)
361
91
2
454
Impairment, restructuring and acquisition
costs
4
11
—
15
Depreciation and amortization
156
89
—
245
1,707
929
2
2,638
Operating income (loss)
471
59
(2
)
528
Other income (expense):
Interest expense
(126
)
(53
)
(7
)
(186
)
Share of earnings (losses) of affiliates,
net
1
(2
)
85
84
Realized and unrealized gains (losses) on
financial instruments, net
82
(1
)
88
169
Other, net
2
20
6
28
(41
)
(36
)
172
95
Earnings (loss) before income taxes
430
23
170
623
Income tax (expense) benefit
(81
)
1
(36
)
(116
)
Net earnings (loss)
349
24
134
507
Less net earnings (loss) attributable to
the noncontrolling interests
50
—
—
50
Net earnings (loss) attributable to
Liberty stockholders
$
299
24
134
457
(1) Includes stock-based compensation
expense as follows:
Programming and content
8
—
—
8
Customer service and billing
1
—
—
1
Other
2
—
—
2
Other operating expenses
11
—
—
11
Selling, general and administrative
26
6
1
33
Stock compensation expense
$
48
6
1
55
LIBERTY MEDIA
CORPORATION
STATEMENT OF OPERATIONS
INFORMATION
Three months ended June 30,
2023 (unaudited)
Attributed
Liberty
Formula
SiriusXM
One
Braves
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
2,250
—
—
2,250
Formula 1 revenue
—
724
—
724
Other revenue
—
—
270
270
Total revenue
2,250
724
270
3,244
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
732
—
—
732
Programming and content(1)
153
—
—
153
Customer service and billing(1)
124
—
—
124
Other(1)
54
—
—
54
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
519
—
519
Subscriber acquisition costs
93
—
—
93
Other operating expenses(1)
83
—
197
280
Selling, general and administrative(1)
387
69
34
490
Impairment, restructuring and acquisition
costs
18
—
1
19
Depreciation and amortization
154
84
19
257
1,798
672
251
2,721
Operating income (loss)
452
52
19
523
Other income (expense):
Interest expense
(137
)
(54
)
(9
)
(200
)
Share of earnings (losses) of affiliates,
net
79
(1
)
12
90
Realized and unrealized gains (losses) on
financial instruments, net
(164
)
64
4
(96
)
Unrealized gains (losses) on intergroup
interests
10
40
(50
)
—
Other, net
23
24
3
50
(189
)
73
(40
)
(156
)
Earnings (loss) before income taxes
263
125
(21
)
367
Income tax (expense) benefit
(46
)
(10
)
(8
)
(64
)
Net earnings (loss)
217
115
(29
)
303
Less net earnings (loss) attributable to
the noncontrolling interests
51
(1
)
—
50
Net earnings (loss) attributable to
Liberty stockholders
$
166
116
(29
)
253
(1) Includes stock-based compensation
expense as follows:
Programming and content
8
—
—
8
Customer service and billing
2
—
—
2
Other
1
—
—
1
Other operating expenses
11
—
—
11
Selling, general and administrative
24
5
3
32
Stock compensation expense
$
46
5
3
54
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Six months ended June 30, 2024
(unaudited)
Attributed
Liberty
Formula
Liberty
SiriusXM
One
Live
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
590
101
61
752
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
311
175
—
486
Stock-based compensation
96
18
2
116
Non-cash impairment and restructuring
costs
1
—
—
1
Share of (earnings) loss of affiliates,
net
(6
)
5
(64
)
(65
)
Realized and unrealized (gains) losses on
financial instruments, net
(100
)
(47
)
(19
)
(166
)
Deferred income tax expense (benefit)
(19
)
2
13
(4
)
Intergroup tax allocation
59
(62
)
3
—
Intergroup tax (payments) receipts
(83
)
80
3
—
Other charges (credits), net
73
5
(4
)
74
Changes in operating assets and
liabilities
Current and other assets
74
(79
)
2
(3
)
Payables and other liabilities
(243
)
203
(4
)
(44
)
Net cash provided (used) by operating
activities
753
401
(7
)
1,147
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(202
)
(1
)
—
(203
)
Cash proceeds from dispositions
—
—
107
107
Cash (paid) received for acquisitions, net
of cash acquired
—
(205
)
—
(205
)
Capital expended for property and
equipment, including internal-use software and website
development
(347
)
(40
)
—
(387
)
Other investing activities, net
(1
)
(62
)
1
(62
)
Net cash provided (used) by investing
activities
(550
)
(308
)
108
(750
)
Cash flows from financing activities:
Borrowings of debt
1,352
10
—
1,362
Repayments of debt
(1,605
)
(31
)
—
(1,636
)
Cash dividends paid by subsidiary
(34
)
—
—
(34
)
Taxes paid in lieu of shares issued for
stock-based compensation
(23
)
(7
)
(1
)
(31
)
Other financing activities, net
(4
)
34
1
31
Net cash provided (used) by financing
activities
(314
)
6
—
(308
)
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
—
(8
)
—
(8
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(111
)
91
101
81
Cash, cash equivalents and restricted cash
at beginning of period
315
1,408
305
2,028
Cash, cash equivalents and restricted cash
at end of period
$
204
1,499
406
2,109
Cash and cash equivalents
$
188
1,491
406
2,085
Restricted cash included in other current
assets
8
8
—
16
Restricted cash included in other
assets
8
—
—
8
Total cash and cash equivalents and
restricted cash at end of period
$
204
1,499
406
2,109
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Six months ended June 30, 2023
(unaudited)
Attributed
Liberty
Formula
SiriusXM
One
Braves
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
437
6
(88
)
355
Adjustments to reconcile net earnings
(loss) to net cash provided by operating activities:
Depreciation and amortization
315
168
34
517
Stock-based compensation
94
10
6
110
Non-cash impairment and restructuring
costs
21
—
—
21
Share of (earnings) loss of affiliates,
net
(72
)
3
(11
)
(80
)
Unrealized (gains) losses on intergroup
interests, net
(64
)
1
63
—
Realized and unrealized (gains) losses on
financial instruments, net
162
(17
)
(3
)
142
Deferred income tax expense (benefit)
(33
)
1
(3
)
(35
)
Intergroup tax allocation
86
(84
)
(2
)
—
Intergroup tax (payments) receipts
(33
)
36
(3
)
—
Other charges (credits), net
(12
)
—
4
(8
)
Changes in operating assets and
liabilities
Current and other assets
1
(91
)
(5
)
(95
)
Payables and other liabilities
(48
)
275
44
271
Net cash provided (used) by operating
activities
854
308
36
1,198
Cash flows from investing activities:
Investments in equity method affiliates
and debt and equity securities
(41
)
(173
)
—
(214
)
Cash proceeds from dispositions
(1
)
68
—
67
Capital expended for property and
equipment, including internal-use software and website
development
(334
)
(180
)
(30
)
(544
)
Other investing activities, net
(1
)
(19
)
—
(20
)
Net cash provided (used) by investing
activities
(377
)
(304
)
(30
)
(711
)
Cash flows from financing activities:
Borrowings of debt
2,048
—
16
2,064
Repayments of debt
(2,563
)
(59
)
(19
)
(2,641
)
Settlement of intergroup interests
202
(202
)
—
—
Subsidiary shares repurchased by
subsidiary
(199
)
—
—
(199
)
Cash dividends paid by subsidiary
(33
)
—
—
(33
)
Taxes paid in lieu of shares issued for
stock-based compensation
(19
)
(8
)
(1
)
(28
)
Other financing activities, net
36
19
8
63
Net cash provided (used) by financing
activities
(528
)
(250
)
4
(774
)
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
—
2
—
2
Net increase (decrease) in cash, cash
equivalents and restricted cash
(51
)
(244
)
10
(285
)
Cash, cash equivalents and restricted cash
at beginning of period
370
1,733
173
2,276
Cash, cash equivalents and restricted cash
at end of period
$
319
1,489
183
1,991
Cash and cash equivalents
$
311
1,489
131
1,931
Restricted cash included in other current
assets
—
—
52
52
Restricted cash included in other
assets
8
—
—
8
Total cash and cash equivalents and
restricted cash at end of period
$
319
1,489
183
1,991
NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL
DISCLOSURES
SCHEDULE 1
To provide investors with additional information regarding our
financial results, this press release includes a presentation of
Adjusted OIBDA, which is a non-GAAP financial measure, for Liberty
SiriusXM Group, Formula One Group, Liberty Live Group and the
former Braves Group, together with reconciliations to operating
income, as determined under GAAP. Liberty Media defines Adjusted
OIBDA as operating income (loss) plus depreciation and
amortization, stock-based compensation, separately reported
litigation settlements, restructuring, acquisition and other
related costs and impairment charges.
Liberty Media believes Adjusted OIBDA is an important indicator
of the operational strength and performance of its businesses by
identifying those items that are not directly a reflection of each
business’ performance or indicative of ongoing business trends. In
addition, this measure allows management to view operating results
and perform analytical comparisons and benchmarking between
businesses and identify strategies to improve performance. Because
Adjusted OIBDA is used as a measure of operating performance,
Liberty Media views operating income as the most directly
comparable GAAP measure. Adjusted OIBDA is not meant to replace or
supersede operating income or any other GAAP measure, but rather to
supplement such GAAP measures in order to present investors with
the same information that Liberty Media's management considers in
assessing the results of operations and performance of its
assets.
The following table provides a reconciliation of Adjusted OIBDA
for Liberty Media to operating income (loss) calculated in
accordance with GAAP for the three months ended June 30, 2023 and
June 30, 2024, respectively.
QUARTERLY
SUMMARY
(amounts in millions)
2Q23
2Q24
Liberty SiriusXM Group
Operating income
$
452
$
471
Depreciation and amortization
154
156
Stock compensation expense
46
48
Legal settlements and reserves
24
—
Impairment, restructuring and acquisition
costs(a)
18
4
Adjusted OIBDA
$
694
$
679
Formula One Group
Operating income
$
52
$
59
Depreciation and amortization
84
89
Stock compensation expense
5
6
Impairment, restructuring and acquisition
costs(b)
—
11
Adjusted OIBDA
$
141
$
165
Liberty Live Group
Operating income
$
N/A
$
(2)
Depreciation and amortization
N/A
—
Stock compensation expense
N/A
1
Adjusted OIBDA
$
N/A
$
(1)
Braves Group
Operating income
$
19
$
N/A
Depreciation and amortization
19
N/A
Stock compensation expense
3
N/A
Impairment, restructuring and acquisition
costs
1
N/A
Adjusted OIBDA
$
42
$
N/A
Liberty Media Corporation
(Consolidated)
Operating income
$
523
$
528
Depreciation and amortization
257
245
Stock compensation expense
54
55
Legal settlements and reserves
24
—
Impairment, restructuring and acquisition
costs
19
15
Adjusted OIBDA
$
877
$
843
___________________________
(a)
During the three months ended June 30,
2024, Sirius XM Holdings recorded $3 million associated with
severance and other employee costs and $1 million of impairments,
primarily related to vacated office space. During the three months
ended June 30, 2023, SiriusXM recorded impairments primarily
related to terminated software projects of $10 million, severance
and other related costs of $5 million and a cost-method investment
impairment of $2 million.
(b)
During the three months ended June 30,
2024, Formula One Group incurred $11 million of costs related to
corporate acquisitions.
SCHEDULE 2
This press release also includes a presentation of adjusted
EBITDA of SiriusXM, which is a non-GAAP financial measure used by
SiriusXM, together with a reconciliation to SiriusXM's stand-alone
net income, as determined under GAAP. SiriusXM defines adjusted
EBITDA as net income before interest expense, income tax expense
and depreciation and amortization. SiriusXM adjusts EBITDA to
exclude the impact of other expense (income) as well as certain
other charges discussed below. Adjusted EBITDA is a non-GAAP
financial measure that excludes or adjusts for (if applicable): (i)
loss on extinguishment of debt, (ii) share-based payment expense,
(iii) impairment, restructuring and acquisition costs, (iv) legal
settlements/reserves and (v) other significant operating expense
(income) that do not relate to the on-going performance of
SiriusXM’s business. SiriusXM believes adjusted EBITDA is a useful
measure of the underlying trend of its operating performance, which
provides useful information about its business apart from the costs
associated with its capital structure and purchase price
accounting. SiriusXM believes investors find this non-GAAP
financial measure useful when analyzing past operating performance
with current performance and comparing SiriusXM’s operating
performance to the performance of other communications,
entertainment and media companies. SiriusXM believes investors use
adjusted EBITDA to estimate current enterprise value and to make
investment decisions. As a result of large capital investments in
SiriusXM’s satellite radio system, its results of operations
reflect significant charges for depreciation expense. SiriusXM
believes the exclusion of share-based payment expense is useful as
it is not directly related to the operational conditions of its
business. SiriusXM also believes the exclusion of the legal
settlements and reserves, impairment, restructuring and acquisition
related costs, to the extent they occur during the period, is
useful as they are significant expenses not incurred as part of its
normal operations for the period.
Adjusted EBITDA has certain limitations in that it does not take
into account the impact to SiriusXM’s consolidated statements of
comprehensive income of certain expenses, including share-based
payment expense. SiriusXM endeavors to compensate for the
limitations of the non-GAAP measure presented by also providing the
comparable GAAP measure with equal or greater prominence and
descriptions of the reconciling items, including quantifying such
items, to derive the non-GAAP measure. Investors that wish to
compare and evaluate SiriusXM’s operating results after giving
effect for these costs, should refer to net income as disclosed in
SiriusXM’s unaudited consolidated statements of comprehensive
income. Since adjusted EBITDA is a non-GAAP financial performance
measure, SiriusXM’s calculation of adjusted EBITDA may be
susceptible to varying calculations; may not be comparable to other
similarly titled measures of other companies; and should not be
considered in isolation, as a substitute for, or superior to
measures of financial performance prepared in accordance with GAAP.
The reconciliation of net income to the adjusted EBITDA is
calculated as follows:
Unaudited
For the Three Months Ended
June 30,
2023
2024
($ in millions)
Net income:
$
310
$
316
Add back items excluded from Adjusted
EBITDA:
Legal settlements and reserves
24
—
Impairment, restructuring and acquisition
costs
18
18
Share-based payment expense
42
46
Depreciation and amortization
139
133
Interest expense
107
102
Other (income)
—
(2
)
Income tax expense
62
89
Adjusted EBITDA
$
702
$
702
SCHEDULE 3
This press release includes a presentation of free cash flow of
SiriusXM, which is a non-GAAP financial measure used by SiriusXM,
together with a reconciliation to SiriusXM's stand-alone cash flow
provided by operating activities, as determined under GAAP.
SiriusXM’s free cash flow is derived from cash flow provided by
operating activities, net of additions to property and equipment
and purchases of other investments. Free cash flow is a metric that
SiriusXM’s management and board of directors use to evaluate the
cash generated by its operations, net of capital expenditures and
other investment activity. In a capital intensive business, with
significant investments in satellites, SiriusXM looks at its
operating cash flow, net of these investing cash outflows, to
determine cash available for future subscriber acquisition and
capital expenditures, to repurchase or retire debt, to acquire
other companies and to evaluate its ability to return capital to
stockholders. SiriusXM excludes from free cash flow certain items
that do not relate to the on-going performance of its business,
such as cash flows related to acquisitions, strategic and
short-term investments, including tax efficient investments in
clean energy and net loan activity with related parties and other
equity investees. SiriusXM believes free cash flow is an indicator
of the long-term financial stability of its business. Free cash
flow, which is reconciled to "Net cash provided by operating
activities," is a non-GAAP financial measure. This measure can be
calculated by deducting amounts under the captions "Additions to
property and equipment" and deducting or adding Restricted and
other investment activity from "Net cash provided by operating
activities" from the unaudited consolidated statements of cash
flows. Free cash flow should be used in conjunction with other GAAP
financial performance measures and may not be comparable to free
cash flow measures presented by other companies. Free cash flow
should be viewed as a supplemental measure rather than an
alternative measure of cash flows from operating activities, as
determined in accordance with GAAP. Free cash flow is limited and
does not represent remaining cash flows available for discretionary
expenditures due to the fact that the measure does not deduct the
payments required for debt maturities. SiriusXM believes free cash
flow provides useful supplemental information to investors
regarding its current cash flow, along with other GAAP measures
(such as cash flows from operating and investing activities), to
determine its financial condition, and to compare its operating
performance to other communications, entertainment and media
companies. Free cash flow is calculated as follows:
Unaudited
For the Three Months Ended
June 30,
2023
2024
($ in millions)
Cash flow information
Net cash provided by operating
activities
$
451
$
514
Net cash used in investing activities
$
(130
)
$
(194
)
Net cash used in financing activities
$
(323
)
$
(291
)
Free cash flow
Net cash provided by operating
activities
$
451
$
514
Additions to property and equipment
(128
)
(173
)
Sales of other investments
-
2
Free cash flow
$
323
$
343
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807046199/en/
Shane Kleinstein (720) 875-5432
Liberty Media (NASDAQ:LLYVK)
過去 株価チャート
から 10 2024 まで 11 2024
Liberty Media (NASDAQ:LLYVK)
過去 株価チャート
から 11 2023 まで 11 2024
