Atlanta Braves Holdings, Inc. Q3 FY2024 earnings call

• Voting and governance updates: Approved by MLB, empowering local management to create value for shareholders. - Season performance: 7th consecutive playoff appearance, sold over 3 million tickets for third year, ranked #1 in MLB guest experience. - Upgrades: Plans to upgrade Truist Park ahead of 2025 season, including The Bullpen and Coors Light Chop House enhancements. - Battery Atlanta: Top live, work, play destination with ongoing reinvestment and evaluation of new opportunities. - Community work: Through foundations, creating impact in the Southeast.

Total revenue grew to $291 million in Q3 2024, up from $272 million in Q3 2023. Reportable segments are baseball and mixed-use development. Baseball revenue was $273 million in Q3 2024, up from $256 million in Q3 2023, due to new sponsorships and rate increases, partially offset by reduced regular home game attendance. Mixed-use development revenue was $17 million in Q3 2024, up from $16 million in Q3 2023, primarily from parking and rental income. Operating income fell to $6 million in Q3 2024 from $16 million in Q3 2023, and adjusted OIBDA fell to $31 million from $40 million. Baseball operating costs increased due to higher player salaries, MLB revenue sharing, and Minor League expenses.

• Focus on fan-centric investments in ballpark and Battery. - Continued investment in master plan projects with eventual return on investment. - Strive to grow top-line revenue through stadium enhancements, Battery reinvestment, and evaluation of new opportunities.

• Uncertainty around Diamond Sports Group's bankruptcy and potential material unfavorable impact on future revenue.

Q: Thoughts on biggest growth opportunities over next several years and conversion of EBITDA to free cash flow?

A: Derek Schiller mentioned continuing investments in ballpark and Battery, with projects having eventual ROI, and Jill Robinson discussed baseball OIBDA decline due to increasing expenses and operating cash flow tied to capital improvements.

Q: Frame of value creation, public vs private structure, and rolling up sports teams?

A: Terry McGuirk said winning is key for value creation, Derek Schiller noted focus on growing top-line revenue and large territory, and confirmed laser focus on Braves.

Q: Acceleration in concert activity and real estate development plans?

A: Derek Schiller said they're studying nongame day concert opportunities and undeveloped real estate at Battery with ongoing evaluation.

Q: Sports betting in Georgia and media opportunities?

A: Derek Schiller mentioned frustration with Georgia not legalizing sports betting and interest in new media opportunities like AR/VR but no specific announcements yet