ENGLEWOOD, Colo.–(BUSINESS WIRE)–Liberty Media Corporation (“Liberty Media” or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today reported second quarter 2023 results. Headlines include(1):
- On August 3rd completed reclassification of tracking stocks to create Liberty Live Group tracking stock
-
Attributed to Liberty SiriusXM Group
-
SiriusXM reported second quarter 2023 operating and financial results
- Second quarter 2023 revenue of $2.25 billion
- Net income of $310 million, up 6% year-over-year; diluted EPS of $0.08
- Adjusted EBITDA(2) of $702 million; up 3% year-over-year
- Free cash flow(2) of $323 million
- SiriusXM increased full-year free cash flow guidance on August 1st
- Announced fall preview of next gen SiriusXM experience
- Liberty Media’s ownership of SiriusXM was 83.4% as of July 28th
- Received $71 million proceeds to settle intergroup interest in Formula One Group
- Received 1.8 million shares of Atlanta Braves Holdings common stock to settle intergroup interest in Braves Group; shares will be exchanged with one or more third party lenders and proceeds will be used to reduce debt at Liberty SiriusXM Group
-
SiriusXM reported second quarter 2023 operating and financial results
-
Attributed to Formula One Group
- Announced 24-race calendar for 2024 with increased geographic efficiency in support of F1’s sustainability objectives
- Extended agreements for Austrian Grand Prix until 2030 and Hungarian Grand Prix until 2032
- Announced extension of Heineken as Global Partner under multi-year deal
- Formula One Group shareholders received distribution of 6.8 million shares of Atlanta Braves Holdings common stock on July 19th to settle intergroup interest in Braves Group
- Paid $71 million in exchange for the cancellation of 1.1 million notional FWONA shares underlying intergroup interest held at Liberty SiriusXM Group
-
Attributed to former Braves Group
- Completed split-off of Braves and associated mixed-use development into separate public company Atlanta Braves Holdings on July 18th
“We were pleased to complete the reclassification of the Liberty Media tracking stocks which begin trading today, including our newly created Liberty Live Group. This action further simplifies our tracking stock structure and provides greater investor choice, while preserving Liberty’s optionality and flexibility,” said Greg Maffei, Liberty Media President and CEO. “At Formula 1, the quality of the fan experience at Grand Prix weekends continues to improve and is helping drive sellout crowds at many races. We saw the resilience of SiriusXM’s business through improved operating and financial results in the second quarter. Live Nation had yet another record quarter boosted by continued tailwinds in live events and strategic initiatives capitalizing on international growth.”
Corporate Updates
On July 18, 2023, Liberty Media completed the split-off of the Braves and its associated mixed-use development (the “Split-Off”) into the separate public company Atlanta Braves Holdings, Inc. (“Atlanta Braves Holdings”). The Braves Group was a tracking stock of Liberty Media during the second quarter of 2023 and therefore its results are included in Liberty’s consolidated results for the second quarter. For discussion of the Braves results for the second quarter of 2023, please refer to the Atlanta Braves Holdings second quarter 2023 earnings press release which can be found on its website at https://www.bravesholdings.com/investors/financial-information/financial-results.
On August 3, 2023, Liberty Media completed the reclassification of its existing common stock to create the Liberty Live common stock (the “Reclassification”). Following the Reclassification, Liberty SiriusXM Group is comprised of Liberty Media’s interest in SiriusXM, Formula One Group is comprised of Liberty Media’s ownership of F1 and other minority investments, and Liberty Live Group is comprised of Liberty Media’s interest in Live Nation and other minority investments. The Reclassification was completed after the second quarter of 2023 and therefore results of Liberty Live Group are not presented for purposes of this presentation, except for certain cases where assets and liabilities are presented as of June 30, 2023 adjusted for the Split-Off and the Reclassification for informational purposes only.
In connection with the Split-Off, Liberty Media settled all intergroup interests. The Braves Group intergroup interest held at Liberty SiriusXM Group was settled by attributing 1.8 million Atlanta Braves Holdings Series C common stock to Liberty SiriusXM Group. Liberty SiriusXM Group intends to reduce debt by exchanging the shares with one or more third party lenders within one year of the Split-Off. The Braves Group intergroup interest held at Formula One Group was settled by distributing 6.8 million shares of Atlanta Braves Holdings Series C common stock pro rata to holders of Liberty Formula One common stock. On July 12, 2023, Formula One Group paid $71 million to Liberty SiriusXM Group to settle the 1.1 million share intergroup interest in Formula One Group attributed to Liberty SiriusXM Group. During the second quarter of 2023, these intergroup interests had not yet been settled and are therefore reflected in the results in this presentation.
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended June 30, 2023 to the same period in 2022.
LIBERTY SIRIUSXM GROUP – The following table provides the financial results attributed to Liberty SiriusXM Group for the second quarter of 2023. In the second quarter, $12 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty SiriusXM Group.
|
|
|
2Q22 |
|
2Q23 |
|
% Change |
||||||
|
|
|
amounts in millions |
|
|
|
|||||||
|
Liberty SiriusXM Group |
|
|
|
|
|
|
|
|
|
|||
|
Revenue |
|
|
|
|
|
|
|
|
|
|||
|
SiriusXM |
|
$ |
2,254 |
|
|
$ |
2,250 |
|
|
|
— |
% |
|
Total Liberty SiriusXM Group |
|
$ |
2,254 |
|
|
$ |
2,250 |
|
|
|
— |
% |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|||
|
SiriusXM |
|
|
479 |
|
|
|
464 |
|
|
|
(3 |
)% |
|
Corporate and other |
|
|
(7 |
) |
|
|
(12 |
) |
|
|
(71 |
)% |
|
Total Liberty SiriusXM Group |
|
$ |
472 |
|
|
$ |
452 |
|
|
|
(4 |
)% |
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|||
|
SiriusXM |
|
|
679 |
|
|
|
702 |
|
|
|
3 |
% |
|
Corporate and other |
|
|
(4 |
) |
|
|
(8 |
) |
|
|
(100 |
)% |
|
Total Liberty SiriusXM Group |
|
$ |
675 |
|
|
$ |
694 |
|
|
|
3 |
% |
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 second quarter results on August 1, 2023. For additional detail on SiriusXM’s financial results for the second quarter, 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 during the second quarter of 2023 consisted primarily of Liberty Media’s interests in SiriusXM, which includes its subsidiary Pandora, and an investment in Live Nation, and as of August 4, 2023, consist primarily of Liberty Media’s interests in SiriusXM, which includes its subsidiary Pandora.
FORMULA ONE GROUP – The following table provides the financial results attributed to Formula One Group for the second quarter of 2023. In the second quarter, Formula One Group incurred $17 million of corporate level selling, general and administrative expense (including stock-based compensation expense).
“Formula 1 is capitalizing on our growth momentum and our fans are engaging with the sport across traditional, digital and social media platforms. We congratulate Red Bull on their record-breaking performance season-to-date, and are thrilled to see the gaps closing across the rest of the grid to produce exciting rivalries on track,” said Stefano Domenicali, Formula 1 President and CEO. “Next year we will host 24 races around the globe, with back-to-back races in closer proximity which will benefit the efficiency of operations for both F1 and our teams.”
|
|
|
2Q22 |
|
2Q23 |
||||
|
|
|
amounts in millions |
||||||
|
Formula One Group |
|
|
|
|
|
|
||
|
Revenue |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
744 |
|
|
$ |
724 |
|
|
Total Formula One Group |
|
$ |
744 |
|
|
$ |
724 |
|
|
Operating Income (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
65 |
|
|
$ |
72 |
|
|
Corporate and other |
|
|
(16 |
) |
|
|
(20 |
) |
|
Total Formula One Group |
|
$ |
49 |
|
|
$ |
52 |
|
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
154 |
|
|
$ |
155 |
|
|
Corporate and other |
|
|
(8 |
) |
|
|
(14 |
) |
|
Total Formula One Group |
|
$ |
146 |
|
|
$ |
141 |
|
The following table provides the operating results of Formula 1 (“F1”).
F1 Operating Results
|
|
2Q22 |
|
2Q23 |
|
% Change |
|||||
|
|
amounts in millions |
|
|
|||||||
|
Primary Formula 1 revenue |
$ |
628 |
|
|
$ |
618 |
|
|
(2 |
)% |
|
Other Formula 1 revenue |
|
116 |
|
|
|
106 |
|
|
(9 |
)% |
|
Total Formula 1 revenue |
$ |
744 |
|
|
$ |
724 |
|
|
(3 |
)% |
|
Operating expenses (excluding stock-based compensation): |
|
|
|
|
|
|
|
|||
|
Team payments |
|
(368 |
) |
|
|
(344 |
) |
|
7 |
% |
|
Other cost of Formula 1 revenue |
|
(166 |
) |
|
|
(175 |
) |
|
(5 |
)% |
|
Cost of Formula 1 revenue |
$ |
(534 |
) |
|
$ |
(519 |
) |
|
3 |
% |
|
Selling, general and administrative expenses |
|
(56 |
) |
|
|
(50 |
) |
|
11 |
% |
|
Adjusted OIBDA |
$ |
154 |
|
|
$ |
155 |
|
|
1 |
% |
|
Stock-based compensation |
|
(1 |
) |
|
|
(1 |
) |
|
— |
% |
|
Depreciation and Amortization(a) |
|
(88 |
) |
|
|
(82 |
) |
|
7 |
% |
|
Operating income (loss) |
$ |
65 |
|
|
$ |
72 |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|||
|
Number of races in period |
|
7 |
|
|
|
6 |
|
|
|
|
|
a) |
|
Includes $81 million and $74 million of amortization related to purchase accounting as of June 30, 2022 and June 30, 2023, respectively, that 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.
There were six races held in the second quarter of 2023, compared to seven races held in the second quarter of 2022. The Emilia-Romagna (“Imola”) Grand Prix originally scheduled for May 21, 2023 was cancelled following severe flooding in the region and is not expected to be rescheduled or replaced in 2023. There are now 22 events scheduled on the 2023 race calendar.
Primary F1 revenue decreased in the second quarter with growth across race promotion and sponsorship offset by a decline in media rights revenue. Despite one less race held in the current period, race promotion revenue grew due to contractual increases in fees and sponsorship revenue increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors. Media rights revenue decreased due to the impact of lower proportionate recognition of season-based income (6/22 races took place took place in the second quarter of 2023 compared to 7/22 in the second quarter of 2022), partially offset by continued growth in F1 TV subscription revenue and increased fees under new and renewed contractual agreements. Other F1 revenue decreased in the second quarter primarily due to lower freight income driven by the easing of freight cost inflation on billing rates and lower hospitality revenue due to one less race held in the current period, partially offset by increased licensing income and higher revenue related to Formula 2 / Formula 3 car chassis sales.
Operating income increased and adjusted OIBDA(2) was relatively flat in the second quarter despite one less race taking place. Team payments were lower compared to the prior year due to the pro rata recognition of payments across the race season with one less race held, partially offset by an expectation of increased team payments for the full year. 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 as significantly lower freight costs were offset by increased hospitality costs associated with servicing higher Paddock Club attendance and cost inflation and higher commissions and partner servicing costs associated with growth in Primary F1 revenue streams. Other cost of F1 revenue in the current period also includes hospitality, travel and other costs related to the Imola event that had largely been incurred prior to the event’s late cancellation. Selling, general and administrative expense decreased in the second quarter due to lower personnel and legal costs and foreign exchange favorability, partially offset by higher marketing, property and IT costs. There were $7 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the second quarter of 2023.
The businesses and assets attributed to Formula One Group during the second quarter of 2023 consisted of Liberty Media’s subsidiary F1, other minority investments and an intergroup interest in Braves Group, and as of August 4, 2023, consist primarily of Liberty Media’s subsidiary F1 and other minority investments.
BRAVES GROUP – Liberty Media completed the Split-Off of the Braves and its associated mixed-use development into the separate public company Atlanta Braves Holdings (NASDAQ: BATRA, BATRK) on July 18, 2023. For discussion of the Braves results for the second quarter of 2023, please refer to the Atlanta Braves Holdings second quarter 2023 earnings press release which can be found on its website at https://www.bravesholdings.com/investors/financial-information/financial-results.
Share Repurchases
There were no repurchases of Liberty Media’s common stock from May 1, 2023 through July 31, 2023. The total remaining repurchase authorization for Liberty Media as of August 1, 2023 is $1.1 billion and can be applied to repurchases of common shares of any of the Liberty Media tracking stocks.
FOOTNOTES
- Liberty Media will discuss these headlines and other matters on Liberty Media’s earnings conference call that will begin at 10:00 a.m. (E.T.) on August 4, 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) and adjusted EBITDA and free cash flow (as defined by SiriusXM) and applicable reconciliations see the accompanying schedules.
NOTES
The following financial information with respect to Liberty Media’s equity affiliates, available for sale securities, cash and debt is intended to supplement Liberty Media’s condensed consolidated balance sheet and statement of operations to be included in its Form 10-Q for the period ended June 30, 2023. For purposes of this presentation, financial information with respect to Liberty Media’s equity affiliates, available for sale securities, cash and debt is also shown adjusted for the Split-Off and the Reclassification.
On August 3, 2023, in connection with the Reclassification, Liberty Media’s Live Nation investment previously attributed to Liberty SiriusXM Group and certain private and public assets previously attributed to Formula One Group were attributed to Liberty Live Group. Approximately $100 million of cash from Formula One Group was contributed to Liberty Live Group in connection with the Reclassification, of which approximately $33 million came from the partial liquidation of monetizable public holdings previously held at Formula One Group. Additionally, all intergroup interests were settled in connection with the Split-Off.
Additional information on the assets attributed to each tracker adjusted for the Split-Off and the Reclassification can be found at https://www.libertymedia.com/about/asset-list.
Fair Value of Corporate Public Holdings
|
|
|
|
|
|
|
|
|
Adjusted for |
||||
|
|
|
|
|
|
|
|
|
Split-Off and |
||||
|
|
|
|
|
|
|
|
|
Reclassification |
||||
|
(amounts in millions) |
|
3/31/2023 |
|
6/30/2023 |
|
6/30/2023 |
||||||
|
Liberty SiriusXM Group |
|
|
|
|
|
|
|
|
|
|||
|
Live Nation Investment(a) |
|
|
4,875 |
|
|
6,345 |
|
|
N/A |
|
||
|
Total Liberty SiriusXM Group |
|
$ |
4,875 |
|
|
$ |
6,345 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Formula One Group |
|
|
|
|
|
|
|
|
|
|||
|
Other Monetizable Public Holdings(b) |
|
|
172 |
|
|
|
148 |
|
|
|
11 |
|
|
Total Formula One Group |
|
$ |
172 |
|
|
$ |
148 |
|
|
$ |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Braves Group |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Liberty Live Group |
|
|
|
|
|
|
|
|
|
|||
|
Live Nation Investment(a) |
|
|
N/A |
|
|
|
N/A |
|
|
|
6,345 |
|
|
Other Monetizable Public Holdings(b) |
|
|
N/A |
|
|
|
N/A |
|
|
|
104 |
|
|
Total Liberty Live Group |
|
|
N/A |
|
|
|
N/A |
|
|
|
6,449 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Liberty Media |
|
$ |
5,047 |
|
|
$ |
6,493 |
|
|
$ |
6,460 |
|
|
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 $157 million and $243 million as of March 31, 2023 and June 30, 2023, respectively. In connection with the Reclassification, the equity investment in Live Nation previously held at Liberty SiriusXM Group was attributed to Liberty Live Group. |
|
b) |
|
Represents the carrying value of other public holdings that are accounted for at fair value. Excludes intergroup interests. Includes exchange-traded funds previously held at Formula One Group that were attributed to Liberty Live Group in connection with the Reclassification. |
Cash and Debt
The following presentation is provided to separately identify cash and debt information.
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
Adjusted for |
||||
|
|
|
|
|
|
|
|
|
Split-Off and |
||||
|
|
|
|
|
|
|
|
|
Reclassification |
||||
|
(amounts in millions) |
|
3/31/2023 |
|
6/30/2023 |
|
6/30/2023 |
||||||
|
Cash and Cash Equivalents Attributable to: |
|
|
|
|
|
|
|
|
|
|||
|
Liberty SiriusXM Group(a) |
|
$ |
430 |
|
$ |
311 |
|
$ |
382 |
|||
|
Formula One Group(b) |
|
|
1,584 |
|
|
|
1,489 |
|
|
|
1,351 |
|
|
Braves Group(c) |
|
|
215 |
|
|
|
131 |
|
|
|
N/A |
|
|
Liberty Live Group(d) |
|
|
N/A |
|
|
|
N/A |
|
|
|
100 |
|
|
Total Consolidated Cash and Cash Equivalents (GAAP) |
|
$ |
2,229 |
|
|
$ |
1,931 |
|
|
$ |
1,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
||||||
|
Debt: |
|
|
|
|
|
|
|
|
|
|||
|
SiriusXM senior notes(e) |
|
$ |
8,750 |
|
|
$ |
8,750 |
|
|
$ |
8,750 |
|
|
Pandora convertible senior notes(f) |
|
|
118 |
|
|
|
20 |
|
|
|
20 |
|
|
1.375% cash convertible notes due 2023(g) |
|
|
199 |
|
|
|
199 |
|
|
|
199 |
|
|
3.75% convertible notes due 2028(g) |
|
|
575 |
|
|
|
575 |
|
|
|
575 |
|
|
2.125% SiriusXM exchangeable senior debentures due 2048(g) |
|
|
275 |
|
|
|
— |
|
|
|
— |
|
|
2.75% SiriusXM exchangeable senior debentures due 2049(g) |
|
|
586 |
|
|
|
586 |
|
|
|
586 |
|
|
SiriusXM margin loan |
|
|
875 |
|
|
|
875 |
|
|
|
875 |
|
|
Other subsidiary debt(h) |
|
|
710 |
|
|
|
723 |
|
|
|
723 |
|
|
0.5% Live Nation exchangeable senior debentures due 2050(g) |
|
|
920 |
|
|
|
920 |
|
|
|
N/A |
|
|
Live Nation margin loan |
|
|
— |
|
|
|
— |
|
|
|
N/A |
|
|
Total Attributed Liberty SiriusXM Group Debt |
|
$ |
13,008 |
|
|
$ |
12,648 |
|
|
$ |
11,728 |
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
(108 |
) |
|
|
82 |
|
|
|
(18 |
) |
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
|
$ |
12,900 |
|
|
$ |
12,730 |
|
|
$ |
11,710 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
2.25% convertible notes due 2027(g) |
|
|
475 |
|
|
|
475 |
|
|
|
475 |
|
|
Formula 1 term loan and revolving credit facility |
|
|
2,420 |
|
|
|
2,416 |
|
|
|
2,416 |
|
|
Other corporate level debt |
|
|
63 |
|
|
|
61 |
|
|
|
61 |
|
|
Total Attributed Formula One Group Debt |
|
$ |
2,958 |
|
|
$ |
2,952 |
|
|
$ |
2,952 |
|
|
Fair market value adjustment |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
Total Attributed Formula One Group Debt (GAAP) |
|
$ |
2,958 |
|
|
$ |
2,950 |
|
|
$ |
2,950 |
|
|
Formula 1 leverage(i) |
|
|
2.2x |
|
|
2.2x |
|
|
2.2x |
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Atlanta Braves debt |
|
|
542 |
|
|
|
543 |
|
|
|
N/A |
|
|
Total Attributed Braves Group Debt |
|
$ |
542 |
|
|
$ |
543 |
|
|
|
N/A |
|
|
Deferred loan costs |
|
|
(4 |
) |
|
|
(4 |
) |
|
|
N/A |
|
|
Total Attributed Braves Group Debt (GAAP) |
|
$ |
538 |
|
|
$ |
539 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
0.5% Live Nation exchangeable senior debentures due 2050(g) |
|
|
N/A |
|
|
|
N/A |
|
|
|
920 |
|
|
Live Nation margin loan |
|
|
N/A |
|
|
|
N/A |
|
|
|
— |
|
|
Total Attributed Liberty Live Group Debt |
|
|
N/A |
|
|
|
N/A |
|
|
$ |
920 |
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
N/A |
|
|
|
N/A |
|
|
|
100 |
|
|
Total Attributed Liberty Live Group Debt (GAAP) |
|
|
N/A |
|
|
|
N/A |
|
|
$ |
1,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Liberty Media Corporation Debt (GAAP) |
|
$ |
16,396 |
|
|
$ |
16,219 |
|
|
$ |
15,680 |
|
|
a) |
|
Includes $53 million and $51 million of cash held at SiriusXM as of March 31, 2023 and June 30, 2023, respectively. Cash adjusted for Split-Off and Reclassification reflects $71 million payment from Formula One Group to Liberty SiriusXM Group to settle intergroup interest. |
|
b) |
|
Includes $1,043 million and $1,055 million of cash held at F1 as of March 31, 2023 and June 30, 2023, respectively. Cash adjusted for Split-Off and Reclassification reflects $71 million payment from Formula One Group to Liberty SiriusXM Group to settle intergroup interest and $67 million of cash on hand contributed to Liberty Live Group. |
|
c) |
|
Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $30 million and $52 million as of March 31, 2023 and June 30, 2023, respectively. |
|
d) |
|
In connection with the Reclassification Liberty Live Group was capitalized with $100 million of cash from Formula One Group, of which approximately $33 million came from the partial liquidation of monetizable public holdings previously held at Formula One Group. |
|
e) |
|
Outstanding principal amount of Senior Notes or Term Loan with no reduction for the net unamortized discount. |
|
f) |
|
During the three months ended June 30, 2023, certain investors exercised their right to require a Special Repurchase, as defined in the indenture governing the Pandora convertible senior notes, and Pandora repurchased $98 million principal amount of such notes with cash for an aggregate purchase price equal to 100% of the principal amount of the notes repurchased plus accrued and unpaid interest to the date of repurchase. |
|
g) |
|
Face amount of the convertible notes and exchangeable debentures with no fair market value adjustment. |
|
h) |
|
Includes SiriusXM revolving credit facility and term loan. |
|
i) |
|
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 the Braves are in compliance with their debt covenants as of June 30, 2023.
Total cash and cash equivalents attributed to Liberty SiriusXM Group decreased $119 million in the second quarter as net debt repayment at both Liberty SiriusXM Group and SiriusXM and capital expenditures and return of capital at SiriusXM more than offset cash from operations at SiriusXM. Included in the cash and cash equivalents balance attributed to Liberty SiriusXM Group at June 30, 2023 is $51 million held at SiriusXM. Although SiriusXM is a consolidated subsidiary, it is a separate public company with a 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.
Total debt attributed to Liberty SiriusXM Group decreased $360 million during the quarter due to net debt repayment at both Liberty SiriusXM Group and SiriusXM. During the second quarter, Liberty SiriusXM Group paid $275 million to settle the remaining amount outstanding of its 2.125% exchangeable debentures due 2048. On August 3, 2023, in connection with the Reclassification, the 0.5% exchangeable debentures due 2050 and the Live Nation margin loan were attributed to Liberty Live Group.
Total cash and cash equivalents attributed to Formula One Group decreased $95 million during the quarter as cash from operations at F1 was more than offset by capital expenditures related to the Las Vegas Grand Prix and the purchase of investments. Total debt at Formula One Group was relatively flat in the second quarter.
The margin on F1’s existing Term Loan B was permanently reduced from 3.25% to 3.00% during the second quarter as a result of F1’s reported leverage at March 31, 2023 as defined in its credit facilities for covenant calculations falling below a certain threshold.
In connection with the Reclassification, the conversion consideration of the 1.375% cash convertible notes was adjusted such that the conversion rate is 23.
Contacts
Shane Kleinstein
(720) 875-5432
