Atlanta Braves Holdings, Inc. Q2 FY2025 earnings call

Key Points

• Thanked for the first Investor Day in June and hosting MLB's All-Star game at Truist Park, where 3 players participated and the event had high attendance. Also participated in MLB's Speedway Classic with record attendance.
• On the field, the season has been tough due to injuries, but most injured players expected to be healthy for 2026 season.
• Strong ticket base with premium and regular season tickets sold out, and broadcast changes with FanDuel and Gray Media well received.
• Ballpark has new attractions like Children's Healthcare of Atlanta Park and expanded outfield market. Real estate development updates include opening of Truist Securities headquarters, Shake Shack flagship location, and progress at Pennant Park with tenant improvements and new deals in the works.

The company has two reportable segments: Baseball and mixed-use development. In the second quarter of 2025, baseball revenue was $287 million, up from $266 million in the second quarter of 2024. Mixed-use development revenue was $25 million in the second quarter of 2025, up from $17 million in the same period last year. Baseball revenue contribution is approximately 92% of the total segments' revenue, while mixed-use development revenue contributes about 8%.

Forward-Looking Statements

• Almost all injured players are expected to be healthy and ready for the 2026 season, aiming to return to national dominance by next spring.
• Mixed-use development is on track to deliver approximately $20 million in additional net operating income this year due to the acquisition of Pennant Park and the new Truist Securities headquarters.
• Will do everything in the off-season to return to winning ways and compete for a World Series title every year.

Risks

• Baseball is unpredictable, and tough injuries have significantly impacted the team record in the short run. The cyclical nature of sports team performance poses risks to consistent success.

Q: With some of the major league baseball rights coming up in a Disney renegotiation and industry buzz about localized rights packages, what would be the impact on the current local media rights?

A: The company thinks its media rights are very valuable, and the current news enhances the marketplace for sports programming in the future. It is in a very favorable position in the Southeast, and MLB's leadership will drive continued enthusiasm for the product.

Q: More detail on the uptake of subscription streaming for the Braves and whether growth could be reinvested in payroll?

A: Regarding streaming, the direct-to-consumer streaming with FanDuel has substantial subscriptions for Braves games, and the over-the-air partnership with Gray Media has added 15 simulcast games. On payroll, the company has been a top 10 payroll team and will take a hard look in the off-season at reinvesting in the team to move towards playoff positions and winning a World Series.

Q: Updated thoughts on the scope and timing of potential future real estate development opportunities?

A: The company has owned the Pennant Park acquisition for a little over 4 months, invested over $1 million in capital, and has about 100,000 square feet of renewal and new lease activity in play, expecting to announce some deals in the next couple of months. Examples like Home Depot's improvements show long-term opportunities.