Liberty Media Corp. Q3 FY2024 earnings call

Management Statement and Operational Highlights

• Corporate Updates: Completed LSXM-Siri merger on 9th September; updates to voting and governance at Atlanta Braves Holdings with transition of services to the Atlanta team.
• Formula One Group: Refinanced Term Loan B at SOFR plus 200 bps, raised funding for MotoGP acquisition, F1 season competitive with close constructors' and drivers' championships, strong financial performance YTD with new commercial agreements, and LVGP upcoming with fan experience and entertainment.
• MotoGP: Progress with European Commission for year-end close, Valencia race canceled due to flooding with final race in Barcelona, extended rights agreement with FIM until 2060, and 2025 calendar announced.
• Quint: Seasonally light Q3, with strong F1 experiences but impacted by softness at other events.
• Live Nation: Strong performance in the first half, set up well for 2025 stadium year.

Segment Performance

• Formula One Group: Q3 revenue up 15% and adjusted OIBDA up 21% year-to-date. Year-to-date, adjusted OIBDA margin improved from 24.4% to 25.8%. Attributed cash, liquid investments, and monetizable public holdings at Formula One Group were $2.7 billion, with $2.4 billion of debt at F1.
• MotoGP: Year-to-date attendance was 2.9 million, +9% leg-for-leg, with 6 races setting all-time attendance records. Extended rights agreement with FIM until 2060, and 2025 calendar announced with 22 races across 18 countries.
• Quint: Q3 was seasonally light, with strong F1 experiences but impacted by softness at other sporting events and a terminated rights agreement.
• Live Nation: Attributed cash was $388 million, with $8.8 billion value of Live Nation stock held, and $1.2 billion principal amount of debt against these holdings.

Guidance

• Formula One expects leverage between 3.5 to 4 times post MotoGP acquisition close.
• MotoGP expects 2025 calendar with 22 races across 18 countries and a new brand identity post-season.
• Live Nation set up for 2025 stadium year.

Risks

• Regulatory hurdles for MotoGP acquisition.
• Volatility in sponsorship go-get and Vegas ticket sales affecting financial results.
• Uncertainties in media rights negotiations and potential impacts on revenue.

Question and Answer

• Q: Concord progress, team payment accrual.

A: Conversations on Concord progressing well, team payments down due to conservatism towards Vegas.

• Q: Formula One sponsorship growth outlook.

A: Strong momentum in 2025 sponsorships, ongoing activity for 2026 but not specific deals yet.

• Q: Media rights, Vegas revenue.

A: Media rights negotiations with ESPN ongoing, Vegas race cost structure optimized, ticket sales uptick expected.

• Q: Live Nation lawsuit, team payments, Vegas impact.

A: Live Nation lawsuit baseless, team payments slightly leveraged, Vegas a swing factor.

• Q: Race calendar 2026, media rights renewal.

A: Madrid in 2026 calendar, media rights goals to expand reach, streaming a key component.

• Q: Vegas revenue, sponsorship 2025.

A: Vegas ticket revenue down but costs reduced, 2025 sponsorship strong.

• Q: Race calendar expansion, emerging markets.

A: Balance in race calendar, focus on maintaining exclusivity while expanding.