Liberty Live Holdings, Inc. Q2 FY2024 earnings call

Management Statement and Operational Highlights

• Liberty SiriusXM: Transaction with SiriusXM near close; received SEC and FCC approvals, set shareholder meeting and close dates. SiriusXM has strong financials with self-pay net adds improving and growth opportunities in car, streaming, and content.
• Formula One: Competitive season with 7 different race winners in 14 races; year-to-date revenues and OIBDA up. MotoGP transaction progressing, racing competitive with high attendance. TV and digital performance strong, F1 TV subscribers up, and podcast listens surpassing 125 million.
• Quint: 150th Kentucky Derby was a success, F1 Experiences grew across 8 races, and new partnerships activated.
• Live Nation: Record quarter with concert attendance and AOI up, ticketing/artist pipeline expanding globally.
• Braves: Strong player performance, high fan demand, master planning projects adding value, and preparation for the 2025 All-Star Game.

Segment Performance

• Liberty SiriusXM: The transaction with SiriusXM is progressing towards close, with SEC and FCC approvals, shareholder meeting set for August 23 and expected close on September 9. SiriusXM maintains a strong financial position with self-pay net adds improving sequentially and year-over-year, EBITDA flat vs prior year but up 8% vs Q1. Attributed cash of Liberty SiriusXM Group was $88 million excluding $100 million at SiriusXM, with $1.1 billion undrawn margin loan capacity as of quarter end.
• Formula One Group: Year-to-date revenues up 29% and OIBDA up 35% due to three additional races. Attributed cash, liquid investments, and monetizable public holdings totaled $1.5 billion, with $1.2 billion in cash at F1. MotoGP transaction progressing well, expected to close by year-end with competitive racing and increased attendance.
• Quint: Highlights include the successful 150th Kentucky Derby, growth in F1 Experiences, and inaugural activations for new partnerships like the WNBA All-Star Game.
• Live Nation: Record second quarter with concert attendance up 5%, AOI up 21%, and ticketing/artist pipeline expanding globally.
• Atlanta Braves Holdings: Revenue grew despite fewer home games, strong player performance, high fan demand, and master planning projects enhancing the fan experience with upcoming 2025 season upgrades.

Guidance

• Liberty SiriusXM: Expected solid margin and cash generation through 2024, with return to free cash flow growth in coming years.
• Formula One: MotoGP transaction expected to close by year-end; F1 TV subscribers expected to continue growing.
• Live Nation: Expected to maintain strong performance with expanding ticketing and artist pipeline.
• Braves: Expected to benefit from master planning projects and successful execution of 2025 All-Star Game.

Risks

• Regulatory uncertainties related to mergers (e.g., SiriusXM, MotoGP).
• Potential impacts of lawsuits, such as the DOJ issue with Live Nation.
• Uncertainties around team expansion in Formula One, including Andretti's entry and related DOJ scrutiny.

Question and Answer

Q: What are Formula 1 and its promoters seeing in demand indicators?

A: Stefano Domenicali states no significant moderation in demand, with sold-out events and strong interest. Renee Wilm notes Vegas ticket sales consistent with year two, focusing marketing on upcoming period.

Q: On F1 promotion revenue flat despite additional races?

A: Brian Wendling explains event mix impact, Stefano Domenicali discusses Concorde agreement progress as progressing well.

Q: Live Nation breakup thoughts? Andretti in F1?

A: Greg Maffei says Live Nation operates within law, DOJ charges without merit; Greg and Stefano discuss Andretti entry and team expansion potential.

Q: Quint relationship impact?

A: Renee Wilm and Brian Wendling explain Quint's integration, third-party business relationships, and accounting eliminations.

Q: Sponsorship and Vegas hotel tickets?

A: Greg Maffei and Stefano Domenicali discuss strong sponsorship pipeline; Renee Wilm explains Vegas hotel ticket sales and marketing approach.

Q: 2026 regs and Americas TV deals?

A: Greg Maffei and Stefano Domenicali discuss F1 2026 regs designed for competitive racing; Stefano on potential multi-country Americas TV deals.

Q: Braves TV dispute impact?

A: Derek Schiller says no material impact from carriage dispute, ratings expected to rebound with resolution.

Q: F1 hospitality and team payments?

A: Stefano Domenicali discusses hospitality capacity expansion considerations; Brian Wendling explains team payment leverage on a year-to-date basis.