Liberty Media Corporation (“Liberty Media” or “Liberty”)
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) today
reported fourth quarter and year end 2022 results. Headlines
include (1):
- On schedule to complete planned split-off of Atlanta Braves
Holdings, Inc. and reclassification of tracking stocks to create
Liberty Live Group tracking stock in second quarter 2023
- Attributed to Liberty SiriusXM Group
- SiriusXM reported strong full year 2022 results
- 2022 revenue of $9.0 billion; up 4% year-over-year
- Net income of $1.21 billion in 2022 and diluted EPS of
$0.31
- Adjusted EBITDA(2) reached $2.83 billion
- SiriusXM achieved financial guidance in 2022; reported
full-year self-pay net additions of 348 thousand
- SiriusXM issued 2023 financial guidance
- Liberty Media’s ownership of SiriusXM was 82.4% as of January
31, 2023
- Attributed to Formula One Group
- F1 confirmed record 23 race calendar for 2023, beginning March
5th in Bahrain
- 2022 fan attendance of 5.7 million, up 36% compared to
2019
- Cumulative TV viewers of 1.54 billion in 2022
- Social media followers up 23% to 61 million
- Cumulative TV viewership in US up 36%
- Secured Qatar Airways as Global Airline Partner under
multi-year agreement
- Refinanced F1 Term Loan B and revolving credit facility and
raised new Term Loan A
- Announced global charity partnership with UNICEF focused on
providing quality education to children from vulnerable
communities
- Attributed to Braves Group
- Battery development generated strong $16 million of operating
income and $28 million of net operating income (“NOI”)(2) in
2022
“Formula 1 capped off an incredible 2022, with growing fan
enthusiasm and success with commercial partners driving record
engagement, revenue and adjusted OIBDA. The Atlanta Braves made
smart additions to their roster in the off-season. We expect to
complete the planned split-off of the Braves and the creation of
the Liberty Live Group tracking stock in the second quarter, which
should better highlight the value of their underlying assets and
enhance investor choice,” said Greg Maffei, Liberty Media President
and CEO. “Despite a challenging automotive and advertising market,
SiriusXM delivered its financial guidance in 2022 and reached new
records for revenue and churn. The company commands the largest
paid share-of-ear in the car and is making important technological
investments to capitalize on this position.”
Discussion of Results
Unless otherwise noted, the following discussion compares
financial information for the three months or year ended December
31, 2022 to the same period in 2021.
LIBERTY SIRIUSXM GROUP – The following table provides the
financial results attributed to Liberty SiriusXM Group for the
fourth quarter and full year 2022. Approximately $13 million and
$39 million of corporate level selling, general and administrative
expense (including stock-based compensation expense) was allocated
to the Liberty SiriusXM Group in the fourth quarter and full year
2022, respectively.
Three months ended
Twelve months ended
December 31,
December 31,
2021
2022
% Change
2021
2022
% Change
amounts in millions
amounts in millions
Liberty SiriusXM Group
Revenue
SiriusXM
$
2,281
$
2,283
—
%
$
8,696
$
9,003
4
%
Total Liberty SiriusXM Group
$
2,281
$
2,283
—
%
$
8,696
$
9,003
4
%
Operating Income (Loss)
SiriusXM
458
542
18
%
1,945
1,958
1
%
Corporate and other
(8
)
(13
)
(63
)
%
(28
)
(39
)
(39
)
%
Total Liberty SiriusXM Group
$
450
$
529
18
%
$
1,917
$
1,919
—
%
Adjusted OIBDA
SiriusXM
669
742
11
%
2,770
2,833
2
%
Corporate and other
(3
)
(8
)
(167
)
%
(15
)
(26
)
(73
)
%
Total Liberty SiriusXM Group
$
666
$
734
10
%
$
2,755
$
2,807
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 fourth quarter and full year results on
February 2, 2023. For additional detail on SiriusXM’s financial
results, 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 interests in SiriusXM, which
includes its subsidiary Pandora, and an investment in Live
Nation.
FORMULA ONE GROUP – The following table provides the
financial results attributed to the Formula One Group for the
fourth quarter and full year 2022. Approximately $17 million and
$56 million of corporate level selling, general and administrative
expense (including stock-based compensation expense) was allocated
to the Formula One Group in the fourth quarter and full year 2022,
respectively.
“Formula 1 saw record attendance at its races in 2022 and we
were once again the fastest growing major sport on social media. We
are continuing to build fan engagement through our high-quality
broadcast, enhanced content on F1 TV, social channels and new
immersive experiences including the F1 Arcade and F1 Exhibition
products. F1’s global relevance and sustainability efforts are
enticing the entry of premier OEMs including Audi and Ford in 2026,
and we are confident they will bring significant value to our
sport,” said Stefano Domenicali, Formula 1 President and CEO. “We
look forward to a record 23 race calendar this year including, in
particular, the inaugural Las Vegas Grand Prix.”
Three months ended
Twelve months ended
December 31,
December 31,
2021
2022
2021
2022
amounts in millions
amounts in millions
Formula One Group
Revenue
Formula 1
$
787
$
754
$
2,136
$
2,573
Total Formula One Group
$
787
$
754
$
2,136
$
2,573
Operating Income (Loss)
Formula 1
$
81
$
58
$
92
$
239
Corporate and other
(19
)
(17
)
(52
)
(66
)
Total Formula One Group
$
62
$
41
$
40
$
173
Adjusted OIBDA
Formula 1
$
183
$
147
$
495
$
593
Corporate and other
(15
)
(12
)
(29
)
(42
)
Total Formula One Group
$
168
$
135
$
466
$
551
The following table provides the operating results of Formula 1
(“F1”).
F1 Operating Results
Three months ended
Twelve months ended
December 31,
December 31,
2021
2022
% Change
2021
2022
% Change
(unaudited)
(unaudited)
amounts in USD millions
amounts in USD millions
Primary Formula 1 revenue
$
615
$
568
(8
)
%
$
1,850
$
2,107
14
%
Other Formula 1 revenue
172
186
8
%
286
466
63
%
Total Formula 1 revenue
$
787
$
754
(4
)
%
$
2,136
$
2,573
20
%
Operating expenses (excluding stock-based
compensation included below):
Team payments
(378
)
(319
)
16
%
(1,068
)
(1,157
)
(8
)
%
Other cost of Formula 1 revenue
(180
)
(208
)
(16
)
%
(421
)
(593
)
(41
)
%
Cost of Formula 1 revenue
$
(558
)
$
(527
)
6
%
$
(1,489
)
$
(1,750
)
(18
)
%
Selling, general and administrative
expenses
(46
)
(80
)
(74
)
%
(152
)
(230
)
(51
)
%
Adjusted OIBDA
$
183
$
147
(20
)
%
$
495
$
593
20
%
Stock-based compensation
(5
)
(1
)
80
%
(17
)
(3
)
82
%
Depreciation and Amortization(a)
(97
)
(88
)
9
%
(386
)
(351
)
9
%
Operating income (loss)
$
81
$
58
(28
)
%
$
92
$
239
160
%
Number of races in period
7
6
22
22
a)
Includes amortization related to purchase accounting of $90
million and $81 million for the fourth quarters 2021 and 2022,
respectively, and $359 million and $325 million for the full years
2021 and 2022, respectively, which 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. For the year ended December 31, 2022,
these revenue streams comprised 28.6%, 36.4% and 16.9%,
respectively, of total F1 revenue.
There were 22 and 6 races held in the full year and fourth
quarter of 2022, respectively, compared to 22 and 7 races held in
the full year and fourth quarter of 2021. The 2021 season was
impacted by the pandemic, with attendance at races limited
particularly in the first half of the season. Restrictions on fan
attendance reduced as 2021 progressed, with all races in the second
half of the year operating at either full capacity or with limited
restrictions. F1’s results in 2022 were not impacted by capacity
limitations, and F1 had record growth in attendance in the
grandstands and in the Paddock Club, with numbers well above
pre-COVID-19 levels.
Primary F1 revenue grew for the full year with increases across
all primary revenue streams. Race promotion revenue grew due to
higher fees generated from the mix of events held, with three
additional races held outside of Europe compared to 2021 and the
return of capacity crowds, whereas limitations on fan attendance in
2021 led to one-time changes in the contractual terms of a limited
number of races held. Media rights revenue increased for the full
year due to growth in F1 TV subscription revenue and increased fees
under new and renewed contractual agreements, and sponsorship
revenue increased due to the recognition of revenue from new
sponsors.
Primary F1 revenue decreased in the fourth quarter, driven by
lower race promotion and media rights revenue primarily due to the
impact of one less race held in the fourth quarter of 2022 compared
to the prior year period. Race promotion revenue declined due to
one less race held, as well as lower fees generated from the
different mix of events on the calendar with only three of the same
races occurring in both periods. Media rights revenue decreased as
contractual increases and growth in F1 TV subscription revenue were
offset by the impact of lower proportionate recognition of
season-based income (6/22 races took place in the fourth quarter of
2022 compared to 7/22 in the fourth quarter of 2021). Sponsorship
revenue increased as the recognition of revenue from new sponsors
more than offset the impact of lower proportionate recognition of
season-based income.
Other F1 revenue increased in the full year and fourth quarter
driven by higher hospitality revenue generated from the Paddock
Club, which operated at 19 races with record attendance throughout
2022 compared to 11 events during 2021, as well as higher freight
revenue with more races held outside of Europe compared to the
prior year and the impact of freight cost inflation on billing
rates. Other F1 revenue for the full year also benefited from the
ability to undertake a greater scope of activities than was
possible in the pandemic-affected first half of 2021.
Operating income and adjusted OIBDA(2) grew for the full year.
Team payments increased for the full year driven by the growth in
F1 revenue and the associated impact on the calculation of the team
payments, which are 100% variable under the 2021 Concorde
Agreement. 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 in the full year
primarily driven by higher freight costs with three more events
held outside of Europe and underlying inflation on freight costs,
increased Paddock Club costs associated with higher hospitality
attendance and servicing eight additional Paddock Club events
compared to the prior year, as well as higher commissions and
partner servicing costs associated with increased Primary F1
revenue streams and higher Formula 2 and Formula 3 related costs.
Selling, general and administrative expense increased in the full
year due to higher personnel and IT costs and increased legal and
other advisory fees, as well as approximately $19 million of costs
associated with the planning and launch of the Las Vegas Grand
Prix.
Operating income and adjusted OIBDA decreased in the fourth
quarter. Team payments decreased due to the impact of the pro rata
recognition of such payments across the race season as one less
race was held in the fourth quarter of 2022 compared to the prior
year period. This was offset by increased Other cost of F1 revenue
due to higher freight costs and costs associated with higher
hospitality attendance in the Paddock Club. Selling, general and
administrative expense increased in the fourth quarter primarily
due to costs associated with the planning and launch of the Las
Vegas Grand Prix.
The Liberty SiriusXM Group has an approximate 1.7% intergroup
interest (4.2 million notional shares) in the Formula One Group
attributed to it as of January 31, 2023. These shares are not
included in the outstanding share count of Formula One Group in
Liberty Media’s most recent Form 10-K. Assuming the issuance of the
shares underlying this intergroup interest, the Formula One Group
outstanding share count as of January 31, 2023 would have been 234
million.
The businesses and assets attributed to the Formula One Group
consist of Liberty Media’s subsidiary F1, other minority
investments and an inter-group interest in the Braves Group.
BRAVES GROUP – The following table provides the financial
results attributed to the Braves Group for the fourth quarter and
full year 2022. Approximately $3 million and $13 million of
corporate level selling, general and administrative expense
(including stock-based compensation expense) was allocated to the
Braves Group in the fourth quarter and full year 2022,
respectively.
Three months ended
Twelve months ended
December 31,
December 31,
2021
2022
2021
2022
amounts in millions
amounts in millions
Braves Group
Revenue
Corporate and other
$
102
$
53
$
568
$
588
Total Braves Group
$
102
$
53
$
568
$
588
Operating Income (Loss)
Corporate and other
(1
)
(31
)
20
(28
)
Total Braves Group
$
(1
)
$
(31
)
$
20
$
(28
)
Adjusted OIBDA
Corporate and other
18
(13
)
104
61
Total Braves Group
$
18
$
(13
)
$
104
$
61
The following table provides the operating results of Braves
Holdings, LLC (“Braves”).
Braves Operating Results
Three months ended
Twelve months ended
December 31,
December 31,
2021
2022
% Change
2021
2022
% Change
amounts in millions
amounts in millions
Baseball revenue
$
93
$
39
(58
)
%
$
526
$
535
2
%
Mixed-use development revenue
9
14
56
%
42
53
26
%
Total revenue
$
102
$
53
(48
)
%
$
568
$
588
4
%
Operating expenses (excluding stock-based
compensation included below):
Other operating expenses
(62
)
(52
)
16
%
(377
)
(434
)
(15
)
%
Selling, general and administrative
expenses
(21
)
(11
)
48
%
(80
)
(83
)
(4
)
%
Adjusted OIBDA
$
19
$
(10
)
NM
$
111
$
71
(36
)
%
Impairment, restructuring and acquisition
costs, net of recoveries
—
(1
)
NM
—
(6
)
NM
Stock-based compensation
(2
)
(3
)
(50
)
%
(8
)
(9
)
(13
)
%
Depreciation and Amortization
(16
)
(14
)
13
%
(72
)
(71
)
1
%
Operating income (loss)
$
1
$
(28
)
NM
$
31
$
(15
)
NM
Regular season home games in period
3
2
79
81
Postseason home games in period
8
2
8
2
Baseball revenue per home game
$
8.5
$
9.8
$
6.0
$
6.4
Baseball revenue is derived from two primary sources: (i)
ballpark event revenue (ticket sales, concessions, advertising
sponsorships, suites and premium seat fees) and (ii) broadcasting
revenue (including national and local broadcast rights). Mixed-use
development revenue is derived from the Battery Atlanta mixed-use
facilities and primarily includes rental income.
There were 83 and 4 home games (including postseason) played in
the full year and fourth quarter of 2022, respectively, compared to
87 and 11 home games played in the comparable prior year periods.
In December 2021, the Collective Bargaining Agreement (“CBA”),
which requires Major League Baseball (“MLB”) clubs to sign players
using a uniform contract, expired and MLB commenced a lockout of
the MLB players. As a result of the lockout, the start of the 2022
regular season was delayed and the number of spring training games
played was reduced. A new five-year CBA was signed in March 2022
and the regular season began in April. A full 162 game schedule was
played in 2022 with no capacity limitations. The 2021 regular
season began with fans in attendance at 33% capacity for the first
home game beginning April 9th, which increased to 50% capacity
beginning April 23rd and further expanded to 100% capacity
beginning May 7th.
Baseball revenue increased for the full year due to increased
capacity and ticket demand at regular season and Spring Training
games, World Series related retail revenue and additional special
events held at the ballpark including concerts. This increase was
partially offset by a decrease in the number of postseason home
games, impacting ticket sales and concession revenue, and the
absence of revenue from the Professional Development League Clubs
which were sold in January 2022. Baseball revenue declined in the
fourth quarter primarily driven by the decrease in the number of
regular and postseason home games played. Development revenue
increased in the full year and fourth quarter due to a reduction in
deferred payment arrangements and increases in rental income from
various new lease commencements.
Operating income and adjusted OIBDA decreased in the full year
and fourth quarter. Revenue growth was more than offset by
increased operating costs due to higher player salaries, higher
variable concession and retail operating costs and facility and
game day expenses driven by an increase in the number of regular
season home games in the full year period and higher attendance, an
increase in the number of concerts at Truist Park and increased
expenses under MLB’s revenue sharing plan. Selling, general and
administrative expense increased in the full year and fourth
quarter primarily due to increased advertising initiatives for the
2022 season and personnel costs.
The Formula One Group has an approximate 11.0% intergroup
interest (6.8 million notional shares) and the Liberty SiriusXM
Group has an approximate 2.9% intergroup interest (1.8 million
notional shares) in the Braves Group attributed to them as of
January 31, 2023. These shares are not included in the outstanding
share count of the Braves Group in Liberty Media’s most recent Form
10-K. Assuming the issuance of the shares underlying these
intergroup interests, the Braves Group outstanding share count as
of January 31, 2023 would have been 62 million.
The businesses and assets attributed to the Braves Group consist
primarily of Liberty Media’s subsidiary the Braves, which
indirectly owns the Atlanta Braves Major League Baseball Club and
certain assets and liabilities associated with the Braves’ ballpark
and mixed-use development project.
Share Repurchases
There were no repurchases of Liberty Media’s common stock
(NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) from
November 1, 2022 through January 31, 2023. The total remaining
repurchase authorization for Liberty Media as of February 1, 2023
is approximately $1.1 billion and can be applied to repurchases of
common shares of any of the Liberty Media Corporation tracking
stocks.
FOOTNOTES
- Liberty Media will discuss these highlights and other matters
in Liberty Media's earnings conference call which will begin at
10:00 a.m. (E.T.) on March 1, 2023. For information regarding how
to access the call, please see “Important Notice” later in this
document.
- For definitions of adjusted OIBDA (as defined by Liberty
Media), adjusted EBITDA (as defined by SiriusXM) and net operating
income (as defined by the Braves) and applicable reconciliations,
see the accompanying schedules.
NOTES
The following financial information with respect to Liberty
Media's equity affiliates and available for sale securities is
intended to supplement Liberty Media's consolidated balance sheet
and statement of operations to be included in its Form 10-K for the
year ended December 31, 2022.
Fair Value of Corporate Public
Holdings
(amounts in millions)
9/30/2022
12/31/2022
Liberty SiriusXM Group
Live Nation Investment(a)
5,296
4,857
Total Liberty SiriusXM Group
$
5,296
$
4,857
Formula One Group
Other Monetizable Public Holdings(b)
108
80
Total Formula One Group
$
108
$
80
Braves Group
N/A
N/A
Total Liberty Media
$
5,404
$
4,937
a)
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 $212 million and $158 million as of September 30, 2022 and
December 31, 2022, respectively.
b)
Represents the carrying value of other public holdings that are
accounted for at fair value. Excludes intergroup
interests.
Fair Value of Intergroup Assets and
Liabilities
The intergroup interests represent quasi-equity interests which
are not represented by outstanding shares of common stock; rather,
the Formula One Group and Liberty SiriusXM Group have attributed
interests in the Braves Group, which are generally stated in terms
of a number of shares of Liberty Braves common stock, and the
Liberty SiriusXM Group also has an attributed interest in the
Formula One Group, which is generally stated in terms of a number
of shares of Liberty Formula One common stock. Each reporting
period, the notional shares representing the intergroup interests
are marked to fair value. The changes in fair value are recorded in
the unrealized gain (loss) on the intergroup interest line item in
the unaudited attributed consolidated statements of operations. The
intergroup interests will remain outstanding until the redemption
of the outstanding interests, at the discretion of Liberty Media’s
Board of Directors, through transfer of securities, cash and/or
other assets from the Braves Group or Formula One Group,
respectively, to the respective tracking stock group.
Attributed
as of December 31, 2022
Liberty
Formula
SiriusXM
Braves
One
Group
Group
Group
(amounts in millions)
Notional Shares
Value
Notional Shares
Value
Notional Shares
Value
Braves Group intergroup interests
1.8
$
59
(8.6)
$
(278
)
6.8
$
219
Formula One Group intergroup interest
4.2
$
223
(4.2)
$
(223
)
Cash and Debt The following
presentation is provided to separately identify cash and liquid
investments and debt information.
(amounts in millions)
9/30/2022
12/31/2022
Cash and Cash Equivalents Attributable
to:
Liberty SiriusXM Group(a)
$
264
$
362
Formula One Group(b)
2,119
1,733
Braves Group(c)
159
151
Total Consolidated Cash and Cash
Equivalents (GAAP)
$
2,542
$
2,246
Debt:
SiriusXM senior notes(d)
$
8,750
$
8,750
Pandora convertible senior notes
193
193
1.375% cash convertible notes due
2023(e)
790
790
2.125% SiriusXM exchangeable senior
debentures due 2048(e)
387
387
2.75% SiriusXM exchangeable senior
debentures due 2049(e)
586
586
0.5% Live Nation exchangeable senior
debentures due 2050(e)
920
920
SiriusXM margin loan
875
875
Live Nation margin loan
—
—
Other subsidiary debt(f)
921
580
Total Attributed Liberty SiriusXM Group
Debt
$
13,422
$
13,081
Unamortized discount, fair market value
adjustment and deferred loan costs
92
62
Total Attributed Liberty SiriusXM Group
Debt (GAAP)
$
13,514
$
13,143
1% cash convertible notes due 2023(e)
27
27
2.25% convertible notes due 2027(e)
475
475
Formula 1 term loans and revolving credit
facility(d)
2,902
2,425
Other corporate level debt
65
63
Total Attributed Formula One Group
Debt
$
3,469
$
2,990
Unamortized discount, fair market value
adjustment and deferred loan costs
(16
)
(43
)
Total Attributed Formula One Group Debt
(GAAP)
$
3,453
$
2,947
Formula 1 leverage(g)
2.8x
2.7x
Atlanta Braves debt
601
546
Total Attributed Braves Group
Debt
$
601
$
546
Deferred loan costs
(3
)
(4
)
Total Attributed Braves Group Debt
(GAAP)
$
598
$
542
Total Liberty Media Corporation Debt
(GAAP)
$
17,565
$
16,632
a)
Includes $39 million and $57
million of cash held at SiriusXM as of September 30, 2022 and
December 31, 2022, respectively.
b)
Includes $1,115 million and $752
million of cash held at F1 as of September 30, 2022 and December
31, 2022, respectively.
c)
Excludes restricted cash held in
reserves pursuant to the terms of various financial obligations of
$15 million and $22 million as of September 30, 2022 and December
31, 2022, respectively.
d)
Outstanding principal amount of
Senior Notes or Term Loan with no reduction for the net unamortized
discount.
e)
Face amount of the cash
convertible notes and exchangeable debentures with no fair market
value adjustment.
f)
Includes SiriusXM revolving
credit facility and term loan.
g)
Net debt to covenant OIBDA ratio
of F1 operating business as defined in F1’s credit facilities for
covenant calculations.
Liberty Media, SiriusXM, F1 and Braves Holdings are in
compliance with their debt covenants as of December 31, 2022.
Total cash and liquid investments attributed to Liberty SiriusXM
Group increased $98 million during the fourth quarter as cash from
operations at SiriusXM more than offset return of capital and debt
repayment at SiriusXM. Included in the cash and liquid investments
balance attributed to Liberty SiriusXM Group at December 31, 2022
is $57 million held at SiriusXM. Although SiriusXM is a
consolidated subsidiary, it is a separate public company with a
significant non-controlling interest, therefore Liberty Media does
not have ready access to SiriusXM’s cash balance. Liberty SiriusXM
Group received $78 million of dividends from SiriusXM during the
quarter and $1,090 million of dividends for the full year ended
December 31, 2022, including approximately $802 million received
from the special cash dividend in the first quarter. Total debt
attributed to Liberty SiriusXM Group decreased $341 million during
the fourth quarter due to debt repayment under SiriusXM’s revolving
credit facility.
Total cash and liquid investments attributed to Formula One
Group decreased $386 million during the fourth quarter as the net
debt repayment in conjunction with F1’s refinancing in the quarter
more than offset cash from operations at F1. Total debt attributed
to Formula One Group decreased $479 million in the fourth quarter.
On November 23, 2022, F1 replaced its previous $500 million
revolving credit facility with a new $500 million revolving credit
facility with an extended maturity to January 15, 2028, and
replaced the previous $2,902 million Term Loan B with a new Term
Loan A of $725 million due January 15, 2028 and a refinanced Term
Loan B of $1,700 million due January 15, 2030. The new Term Loan A
amortizes over the life of the agreement with quarterly principal
payments payable on March 31, June 30, September 30, and December
31 of each year until maturity. F1 paid down $477 million of debt
in connection with the refinancing using cash on hand. As of
December 31, 2022 the revolving credit facility was undrawn.
Total cash and liquid investments attributed to the Braves Group
decreased $8 million during the fourth quarter as cash from
operations and distributions from equity method affiliates was more
than offset by net debt repayment. Total debt attributed to the
Braves Group decreased $55 million during the fourth quarter due to
repayment under the Braves team revolver.
Important Notice: Liberty Media Corporation (Nasdaq:
LSXMA, LSXMB, LSXMK, FWONA, FWONK, BATRA, BATRK) will discuss
Liberty Media’s earnings release in a conference call which will
begin at 10:00 a.m. (E.T.) on March 1, 2023. The call can be
accessed by dialing (877) 704-2829 or +1 (215) 268-9864, passcode
13735794 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, Formula 1’s
race calendar, new races and the planned entry of premier OEMs and
our planned split-off and reclassification of tracking stocks, the
continuation of our stock repurchase plan 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, 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, changes in law, including consumer protection laws,
and their enforcement, the direct and indirect impacts of the
COVID-19 pandemic, including on general market conditions, and
market conditions conducive to stock repurchases. 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 Form 10-K, 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
December 31, 2022
(unaudited)
Attributed
Liberty SiriusXM
Braves
Formula One
Inter-Group
Consolidated
Group
Group
Group
Eliminations
Liberty
amounts in millions
Assets
Current assets:
Cash and cash equivalents
$
362
151
1,733
—
2,246
Trade and other receivables, net
669
45
123
—
837
Other current assets
523
78
167
—
768
Total current assets
1,554
274
2,023
—
3,851
Intergroup interests
282
—
219
(501
)
—
Investments in affiliates, accounted for
using the equity method
823
95
34
—
952
Property and equipment, at cost
2,957
1,008
516
—
4,481
Accumulated depreciation
(1,840
)
(278
)
(108
)
—
(2,226
)
1,117
730
408
—
2,255
Intangible assets not subject to
amortization
Goodwill
15,209
176
3,956
—
19,341
FCC licenses
8,600
—
—
—
8,600
Other
1,242
124
—
—
1,366
25,051
300
3,956
—
29,307
Intangible assets subject to amortization,
net
1,101
24
3,163
—
4,288
Other assets
551
54
1,213
(7
)
1,811
Total assets
$
30,479
1,477
11,016
(508
)
42,464
Liabilities and Equity
Current liabilities:
Intergroup payable (receivable)
$
7
(7
)
—
—
—
Accounts payable and accrued
liabilities
1,405
55
396
—
1,856
Current portion of debt
1,543
75
61
—
1,679
Deferred revenue
1,321
105
347
—
1,773
Other current liabilities
68
5
29
—
102
Total current liabilities
4,344
233
833
—
5,410
Long-term debt
11,600
467
2,886
—
14,953
Deferred income tax liabilities
2,054
54
—
(7
)
2,101
Redeemable intergroup interests
—
278
223
(501
)
—
Other liabilities
584
151
139
—
874
Total liabilities
18,582
1,183
4,081
(508
)
23,338
Equity / Attributed net assets
8,759
294
6,910
—
15,963
Noncontrolling interests in equity of
subsidiaries
3,138
—
25
—
3,163
Total liabilities and equity
$
30,479
1,477
11,016
(508
)
42,464
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Twelve months ended December
31, 2022 (unaudited)
Attributed
Liberty SiriusXM
Braves
Formula One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
9,003
—
—
9,003
Formula 1 revenue
—
—
2,573
2,573
Other revenue
—
588
—
588
Total revenue
9,003
588
2,573
12,164
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
2,802
—
—
2,802
Programming and content
604
—
—
604
Customer service and billing
497
—
—
497
Other
227
—
—
227
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
—
1,750
1,750
Subscriber acquisition costs
352
—
—
352
Other operating expenses
285
434
—
719
Selling, general and administrative
1,638
105
288
2,031
Impairment, restructuring and acquisition
costs, net of recoveries
68
6
—
74
Depreciation and amortization
611
71
362
1,044
7,084
616
2,400
10,100
Operating income (loss)
1,919
(28
)
173
2,064
Other income (expense):
Interest expense
(511
)
(29
)
(149
)
(689
)
Share of earnings (losses) of affiliates,
net
67
32
—
99
Unrealized gain/(loss) on inter-group
interests
(19
)
(35
)
54
—
Realized and unrealized gains (losses) on
financial instruments, net
471
13
115
599
Gains (losses) on dilution of investment
in affiliate
10
—
—
10
Other, net
32
20
58
110
50
1
78
129
Earnings (loss) before income taxes
1,969
(27
)
251
2,193
Income tax (expense) benefit
(467
)
(8
)
311
(164
)
Net earnings (loss)
1,502
(35
)
562
2,029
Less net earnings (loss) attributable to
the noncontrolling interests
210
—
17
227
Less net earnings (loss) attributable to
the redeemable noncontrolling interests
—
—
(13
)
(13
)
Net earnings (loss) attributable to
Liberty stockholders
$
1,292
(35
)
558
1,815
(1) Includes stock-based compensation
expense as follows:
Programming and content
34
—
—
34
Customer service and billing
6
—
—
6
Other
6
—
—
6
Other operating expenses
39
—
—
39
Selling, general and administrative
124
12
16
152
Stock compensation expense
$
209
12
16
237
LIBERTY MEDIA
CORPORATION
STATEMENT OF
OPERATIONS
Twelve months ended December
31, 2021 (unaudited)
Attributed
Liberty SiriusXM
Braves
Formula One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Revenue:
Sirius XM Holdings revenue
$
8,696
—
—
8,696
Formula 1 revenue
—
—
2,136
2,136
Other revenue
—
568
—
568
Total revenue
8,696
568
2,136
11,400
Operating costs and expenses, including
stock-based compensation:
Cost of Sirius XM Holdings services
(exclusive of depreciation shown separately below):
Revenue share and royalties
2,672
—
—
2,672
Programming and content
559
—
—
559
Customer service and billing
501
—
—
501
Other
236
—
—
236
Cost of Formula 1 revenue (exclusive of
depreciation shown separately below)
—
—
1,489
1,489
Subscriber acquisition costs
325
—
—
325
Other operating expenses
265
377
—
642
Selling, general and administrative
1,598
99
210
1,907
Impairment, restructuring and acquisition
costs, net of recoveries
20
—
—
20
Depreciation and amortization
603
72
397
1,072
6,779
548
2,096
9,423
Operating income (loss)
1,917
20
40
1,977
Other income (expense):
Interest expense
(495
)
(24
)
(123
)
(642
)
Share of earnings (losses) of affiliates,
net
(253
)
30
23
(200
)
Unrealized gain/(loss) on inter-group
interests
121
(31
)
(90
)
—
Realized and unrealized gains (losses) on
financial instruments, net
(433
)
3
(21
)
(451
)
Gains (losses) on dilution of investment
in affiliate
152
—
—
152
Other, net
(60
)
(1
)
14
(47
)
(968
)
(23
)
(197
)
(1,188
)
Earnings (loss) before income taxes
949
(3
)
(157
)
789
Income tax (expense) benefit
(74
)
(8
)
37
(45
)
Net earnings (loss)
875
(11
)
(120
)
744
Less net earnings (loss) attributable to
the noncontrolling interests
276
0
16
292
Less net earnings (loss) attributable to
the redeemable noncontrolling interests
—
—
54
54
Net earnings (loss) attributable to
Liberty stockholders
$
599
(11
)
(190
)
398
(1) Includes stock-based compensation
expense as follows:
Programming and content
33
—
—
33
Customer service and billing
6
—
—
6
Other
6
—
—
6
Other operating expenses
36
—
—
36
Selling, general and administrative
134
12
29
175
Stock compensation expense
$
215
12
29
256
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Twelve months ended December
31, 2022 (unaudited)
Attributed
Liberty SiriusXM
Braves
Formula One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
1,502
(35
)
562
2,029
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
611
71
362
1,044
Stock-based compensation
209
12
16
237
Non-cash impairment and restructuring
costs
65
5
—
70
Share of (earnings) loss of affiliates,
net
(67
)
(32
)
—
(99
)
Unrealized (gains) losses on intergroup
interests, net
19
35
(54
)
—
Realized and unrealized (gains) losses on
financial instruments, net
(471
)
(13
)
(115
)
(599
)
Noncash interest expense
19
2
5
26
Losses (gains) on dilution of investment
in affiliate
(10
)
—
—
(10
)
Loss (gain) on early extinguishment of
debt
(21
)
—
(14
)
(35
)
Deferred income tax expense (benefit)
329
(10
)
(306
)
13
Intergroup tax allocation
91
18
(109
)
—
Intergroup tax (payments) receipts
(80
)
8
72
—
Other charges (credits), net
10
1
(1
)
10
Changes in operating assets and
liabilities
Current and other assets
80
(10
)
(87
)
(17
)
Payables and other liabilities
(327
)
1
203
(123
)
Net cash provided (used) by operating
activities
1,959
53
534
2,546
Cash flows from investing activities:
Subsidiary initial public offering
proceeds returned from (invested in) trust account
—
—
579
579
Cash proceeds from dispositions of
investments
66
48
53
167
Cash (paid) received for acquisitions, net
of cash acquired
(136
)
—
—
(136
)
Investments in equity method affiliates
and debt and equity securities
(1
)
(5
)
(52
)
(58
)
Return of investments in equity method
affiliates
1
28
9
38
Repayment of loans and other cash receipts
from equity method affiliates and debt and equity securities
2
—
—
2
Capital expended for property and
equipment, including internal-use software and website
development
(426
)
(18
)
(291
)
(735
)
Other investing activities, net
1
—
96
97
Net cash provided (used) by investing
activities
(493
)
53
394
(46
)
Cash flows from financing activities:
Borrowings of debt
3,150
155
2,884
6,189
Repayments of debt
(3,553
)
(309
)
(3,564
)
(7,426
)
Repayment of initial public offering
proceeds to subsidiary shareholders
—
—
(579
)
(579
)
Intergroup (repayments) borrowings
78
(14
)
(64
)
—
Liberty stock repurchases
(358
)
—
(37
)
(395
)
Subsidiary shares repurchased by
subsidiary
(647
)
—
—
(647
)
Cash dividends paid by subsidiary
(249
)
—
—
(249
)
Taxes paid in lieu of shares issued for
stock-based compensation
(147
)
—
24
(123
)
Other financing activities, net
24
(9
)
67
82
Net cash provided (used) by financing
activities
(1,702
)
(177
)
(1,269
)
(3,148
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(236
)
(71
)
(341
)
(648
)
Cash, cash equivalents and restricted cash
at beginning of period
606
244
2,074
2,924
Cash, cash equivalents and restricted cash
at end of period
$
370
173
1,733
2,276
LIBERTY MEDIA
CORPORATION
STATEMENT OF CASH FLOWS
INFORMATION
Twelve months ended December
31, 2021 (unaudited)
Attributed
Liberty SiriusXM
Braves
Formula One
Consolidated
Group
Group
Group
Liberty
amounts in millions
Cash flows from operating activities:
Net earnings (loss)
$
875
(11
)
(120
)
744
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
603
72
397
1,072
Stock-based compensation
215
12
29
256
Non-cash impairment and restructuring
costs
24
—
—
24
Share of (earnings) loss of affiliates,
net
253
(30
)
(23
)
200
Unrealized (gains) losses on intergroup
interests, net
(121
)
31
90
—
Realized and unrealized (gains) losses on
financial instruments, net
433
(3
)
21
451
Noncash interest expense
15
—
1
16
Losses (gains) on dilution of investments
in affiliate
(152
)
—
—
(152
)
Loss (gain) on early extinguishment of
debt
83
—
(3
)
80
Deferred income tax expense (benefit)
(12
)
12
(41
)
(41
)
Intergroup tax allocation
9
(4
)
(5
)
—
Intergroup tax (payments) receipts
(2
)
7
(5
)
—
Other charges (credits), net
(15
)
20
(3
)
2
Changes in operating assets and
liabilities
Current and other assets
(59
)
(43
)
(2
)
(104
)
Payables and other liabilities
(255
)
(1
)
145
(111
)
Net cash provided (used) by operating
activities
1,894
62
481
2,437
Cash flows from investing activities:
Subsidiary initial public offering
proceeds returned from (invested in) trust account
—
—
(575
)
(575
)
Cash proceeds from dispositions of
investments
177
2
204
383
Cash (paid) received for acquisitions, net
of cash acquired
(14
)
—
—
(14
)
Investments in equity method affiliates
and debt and equity securities
(73
)
—
(179
)
(252
)
Return of investments in equity method
affiliates
1
—
39
40
Repayment of loans and other cash receipts
from equity method affiliates and debt and equity securities
12
—
—
12
Capital expended for property and
equipment, including internal-use software and website
development
(388
)
(35
)
(17
)
(440
)
Proceeds from insurance recoveries
225
—
—
225
Other investing activities, net
(4
)
8
(72
)
(68
)
Net cash provided (used) by investing
activities
(64
)
(25
)
(600
)
(689
)
Cash flows from financing activities:
Borrowings of debt
6,294
117
—
6,411
Repayments of debt
(5,872
)
(93
)
(322
)
(6,287
)
Liberty stock repurchases
(500
)
—
(55
)
(555
)
Subsidiary shares repurchased by
subsidiary
(1,523
)
—
—
(1,523
)
Proceeds from initial public offering of
subsidiary
—
—
575
575
Cash dividends paid by subsidiary
(58
)
—
—
(58
)
Taxes paid in lieu of shares issued for
stock-based compensation
(106
)
—
(48
)
(154
)
Settlement of intergroup call spread
(384
)
—
384
—
Other financing activities, net
(83
)
(2
)
(22
)
(107
)
Net cash provided (used) by financing
activities
(2,232
)
22
512
(1,698
)
Effect of foreign exchange rates on cash,
cash equivalents and restricted cash
—
—
(3
)
(3
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(402
)
59
390
47
Cash, cash equivalents and restricted cash
at beginning of period
1,008
185
1,684
2,877
Cash, cash equivalents and restricted cash
at end of period
$
606
244
2,074
2,924
NON-GAAP FINANCIAL MEASURES
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 the
Liberty SiriusXM Group, the Braves Group and the Formula One 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 and years ended December
31, 2021 and December 31, 2022, respectively.
(amounts in millions)
4Q21
4Q22
2021
2022
Liberty SiriusXM Group
Operating income (loss)
$
450
$
529
$
1,917
$
1,919
Depreciation and amortization
152
150
603
611
Stock compensation expense
57
57
215
209
Impairment, restructuring and acquisition
costs, net of recoveries
7
(2
)
20
68
Adjusted OIBDA
$
666
$
734
$
2,755
$
2,807
Formula One Group
Operating income (loss)
$
62
$
41
$
40
$
173
Depreciation and amortization
98
90
397
362
Stock compensation expense
8
4
29
16
Adjusted OIBDA
$
168
$
135
$
466
$
551
Braves Group
Operating income (loss)
$
(1
)
$
(31
)
$
20
$
(28
)
Depreciation and amortization
16
14
72
71
Stock compensation expense
3
3
12
12
Impairment, restructuring and acquisition
costs, net of recoveries
—
1
—
6
Adjusted OIBDA
$
18
$
(13
)
$
104
$
61
Liberty Media Corporation
(Consolidated)
Operating income (loss)
$
511
$
539
$
1,977
$
2,064
Depreciation and amortization
266
254
1,072
1,044
Stock compensation expense
68
64
256
237
Impairment, restructuring and acquisition
costs, net of recoveries
7
(1
)
20
74
Adjusted OIBDA
$
852
$
856
$
3,325
$
3,419
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, and loss on extinguishment of debt, 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 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 Years Ended
December 31,
2021
2022
($ in millions)
Net income:
$
1,314
$
1,213
Add back items excluded from Adjusted
EBITDA:
Impairment, restructuring and acquisition
costs
20
64
Share-based payment expense
202
197
Depreciation and amortization
533
536
Interest expense
415
422
Loss on extinguishment of debt
83
—
Other expense (income)
(9
)
9
Income tax (benefit) expense
212
392
Adjusted EBITDA
$
2,770
$
2,833
SCHEDULE 3
This press release also includes a presentation of net operating
income for the Battery development, which is a non-GAAP financial
measure used by the Braves, together with a reconciliation from
operating income for the Battery development. Liberty Media and the
Braves define net operating income for the Battery development as
operating income for the Battery development less parking &
other revenue, plus corporate overhead, stock-based compensation
and depreciation and amortization.
Liberty Media and the Braves believe net operating income for
the Battery development is an important indicator of the
operational strength and performance of the Battery development.
Liberty Media and the Braves view operating income as the most
directly comparable GAAP measure. Net operating income 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 and the
Brave's management considers in assessing the results of operations
and performance of its assets.
The following table provides a reconciliation of net operating
income for the Battery development to operating income for the
Battery development for the twelve months ended December 31,
2022.
Unaudited
For the Year Ended
December 31, 2022
($ in millions)
Operating Income - Battery
development
$
16
Parking / other
(10
)
Corporate overhead
2
Stock-based compensation(1)
2
Depreciation / amortization
18
Net Operating Income - Battery
development
$
28
(1)
Stock-based compensation is unallocated between the Braves and
the Battery Development, amount included for illustrative
purposes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230228006489/en/
Shane Kleinstein (720) 875-5432
Atlanta Braves (NASDAQ:BATRA)
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