ENGLEWOOD, Colo.–(BUSINESS WIRE)–Liberty Media Corporation (“Liberty Media” or “Liberty”) (NASDAQ: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) today reported third quarter 2023 results. Headlines include(1):
-
Attributed to Liberty SiriusXM Group
-
SiriusXM reported third quarter 2023 operating and financial results
- Third quarter 2023 revenue of $2.27 billion
- Net income of $363 million, up 47% year-over-year; diluted EPS of $0.09
- Adjusted EBITDA(2) of $747 million; up 4% year-over-year
- Free cash flow(2) of $291 million
- Year-to-date capital returns to SiriusXM stockholders total $555 million
- SiriusXM reiterated 2023 financial guidance; planned November 8th next generation event
- Liberty Media’s ownership of SiriusXM was 83.5% as of October 27th
- Retired remaining $199 million outstanding principal amount of 1.375% cash convertible notes in October
-
SiriusXM reported third quarter 2023 operating and financial results
-
Attributed to Formula One Group
- Announced multi-year regional partnership with American Express to become official payments partner in the Americas
- Confirmed renewal of Pirelli as global tire partner through 2027
- Expanded partnership with DAZN for exclusive broadcast rights in Spain through 2026
- Formula 1 repriced $1.7 billion Term Loan B in October, reducing margin from 3.00% to 2.25%
- Entered into definitive agreement to acquire Quint in September
-
Attributed to Liberty Live Group
- Fair value of Live Nation investment was $5.8 billion as of September 30th
-
Issued $1.15 billion of 2.375% Live Nation exchangeable senior debentures in September
- Used a portion of proceeds to repurchase $858 million aggregate principal amount of 0.5% Live Nation exchangeable senior debentures
“Liberty made a proposal for a combination of Liberty SiriusXM and Sirius in September, and we are confident that rationalizing this structure into a single, simplified equity will create value for all shareholders. SiriusXM drove strong adjusted EBITDA growth in the third quarter and we look forward to the reveal of their new streaming app and in-car innovations next week that substantially enhance their value proposition with consumers, especially younger audiences,” said Greg Maffei, Liberty Media President and CEO. “At Formula 1, the Las Vegas Grand Prix is two weeks away and will be the highest attended sporting event drawing the biggest viewing audience in Vegas history. This event will deliver a spectacular fan experience and is accruing long-lasting commercial benefits for the broader Formula 1 ecosystem. Live Nation remains positioned for a record-breaking 2023 after delivering their largest quarterly AOI ever.”
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 prior to the Split-Off and therefore its results are reflected in Liberty’s historical consolidated results.
On August 3, 2023, Liberty Media completed the reclassification of its then-existing common stock to create the Liberty Live Group 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 Split-Off and Reclassification are reflected in Liberty’s consolidated financial statements on a prospective basis.
Discussion of Results
Unless otherwise noted, the following discussion compares financial information for the three months ended September 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 third quarter of 2023. In the third quarter, $22 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty SiriusXM Group.
|
|
|
3Q22 |
|
3Q23 |
|
% Change |
||||||
|
|
|
amounts in millions |
|
|
|
|
||||||
|
Liberty SiriusXM Group |
|
|
|
|
|
|
|
|
|
|
||
|
Revenue |
|
|
|
|
|
|
|
|
|
|
||
|
SiriusXM |
|
$ |
2,280 |
|
|
$ |
2,271 |
|
|
|
— |
% |
|
Total Liberty SiriusXM Group |
|
$ |
2,280 |
|
|
$ |
2,271 |
|
|
|
— |
% |
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
||
|
SiriusXM |
|
|
444 |
|
|
|
550 |
|
|
|
24 |
% |
|
Corporate and other |
|
|
(10 |
) |
|
|
(22 |
) |
|
|
(120 |
)% |
|
Total Liberty SiriusXM Group |
|
$ |
434 |
|
|
$ |
528 |
|
|
|
22 |
% |
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
|
|
|
|
||
|
SiriusXM |
|
|
722 |
|
|
|
748 |
|
|
|
4 |
% |
|
Corporate and other |
|
|
(9 |
) |
|
|
(12 |
) |
|
|
(33 |
)% |
|
Total Liberty SiriusXM Group |
|
$ |
713 |
|
|
$ |
736 |
|
|
|
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 third quarter results on October 31, 2023. For additional detail on SiriusXM’s financial results for the third 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 consist primarily of Liberty Media’s interest in SiriusXM, which includes its subsidiary Pandora.
FORMULA ONE GROUP – The following table provides the financial results attributed to Formula One Group for the third quarter of 2023. In the third quarter, Formula One Group incurred $23 million of corporate level selling, general and administrative expense (including stock-based compensation expense).
“Formula 1 continues to experience sell-out crowds, record race attendance and strong growth across our social and digital platforms, outpacing that of other major sports leagues. This growth is attracting commercial partners, including our recent agreement with American Express that marks the first new sports vertical they have sponsored in over a decade,” said Stefano Domenicali, Formula 1 President and CEO. “We are making material progress on our sustainability initiatives, including reducing F1’s corporate emissions and amplifying F1 Academy by fully integrating the series into the 2024 F1 calendar with participation from all ten F1 teams.”
|
|
|
3Q22 |
|
3Q23 |
||||
|
|
|
amounts in millions |
||||||
|
Formula One Group |
|
|
|
|
|
|
||
|
Revenue |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
715 |
|
|
$ |
887 |
|
|
Total Formula One Group |
|
$ |
715 |
|
|
$ |
887 |
|
|
Operating Income (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
82 |
|
|
$ |
132 |
|
|
Corporate and other |
|
|
(18 |
) |
|
|
(25 |
) |
|
Total Formula One Group |
|
$ |
64 |
|
|
$ |
107 |
|
|
Adjusted OIBDA (Loss) |
|
|
|
|
|
|
||
|
Formula 1 |
|
$ |
170 |
|
|
$ |
215 |
|
|
Corporate and other |
|
|
(12 |
) |
|
|
(18 |
) |
|
Total Formula One Group |
|
$ |
158 |
|
|
$ |
197 |
|
The following table provides the operating results of Formula 1 (“F1”).
|
F1 Operating Results |
|||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
3Q22 |
|
3Q23 |
|
% Change |
||||||
|
|
amounts in millions |
|
|
|
|||||||
|
Primary Formula 1 revenue |
$ |
624 |
|
$ |
790 |
|
27 |
% |
|||
|
Other Formula 1 revenue |
|
91 |
|
|
97 |
|
7 |
% |
|||
|
Total Formula 1 revenue |
$ |
715 |
|
$ |
887 |
|
24 |
% |
|||
|
Operating expenses (excluding stock-based compensation): |
|
|
|
|
|
|
|||||
|
Team payments |
|
(370 |
) |
|
(432 |
) |
(17 |
)% |
|||
|
Other cost of Formula 1 revenue |
|
(124 |
) |
|
(183 |
) |
(48 |
)% |
|||
|
Cost of Formula 1 revenue |
$ |
(494 |
) |
$ |
(615 |
) |
(24 |
)% |
|||
|
Selling, general and administrative expenses |
|
(51 |
) |
|
(57 |
) |
(12 |
)% |
|||
|
Adjusted OIBDA |
$ |
170 |
|
$ |
215 |
|
26 |
% |
|||
|
Stock-based compensation |
|
(1 |
) |
|
(1 |
) |
— |
% |
|||
|
Depreciation and Amortization(a) |
|
(87 |
) |
|
(82 |
) |
6 |
% |
|||
|
Operating income (loss) |
$ |
82 |
|
$ |
132 |
|
61 |
% |
|||
|
|
|
|
|
|
|
|
|||||
|
Number of races in period |
|
7 |
|
|
8 |
|
|
|
|||
| ____________________ | ||
|
a) |
Includes $81 million and $74 million of amortization related to purchase accounting as of September 30, 2022 and September 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 eight races held in the third quarter of 2023, compared to seven races held in the third quarter of 2022. There are 22 events scheduled for the 2023 race calendar.
Primary F1 revenue increased in the third quarter with growth across race promotion, media rights and sponsorship partly driven by one more race held in the current period, which resulted in a greater proportion of season-based revenue recognized. Race promotion revenue also increased due to higher fees generated from the different mix of events held, with two additional races outside of Europe, and other contractual increases in fees. Media rights revenue benefited from increased fees under new and renewed contractual agreements and continued growth in F1 TV subscription revenue. Sponsorship revenue also increased due to recognition of revenue from new sponsors and growth in revenue from existing sponsors. Other F1 revenue increased in the third quarter primarily due to higher freight income driven by two additional races held outside of Europe and higher hospitality revenue generated from the Paddock Club, partially offset by lower licensing income.
Operating income and adjusted OIBDA(2) increased in the third quarter. Team payments were higher compared to the prior year due to the pro rata recognition of payments across the race season with one more race held, as well as 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 due to higher hospitality costs driven by cost inflation and the mix of events held in the current period, as well as increased freight costs due to two additional races outside of Europe. Other cost of F1 revenue in the third quarter was also impacted by increased technical, travel and other event-related costs due to one additional race, as well as increased commissions and partner servicing costs associated with higher Primary F1 revenue streams, certain early stage costs of promoting the Las Vegas Grand Prix and costs incurred for the new F1 Academy series. Selling, general and administrative expense increased primarily due to higher personnel, property, IT and marketing costs, some of which is attributable to the Las Vegas Grand Prix, partially offset by lower legal costs and foreign exchange favorability. There were $8 million of costs associated with the planning of the Las Vegas Grand Prix included in selling, general and administrative expense in the third quarter of 2023.
The businesses and assets attributed to Formula One Group consist primarily of Liberty Media’s subsidiary F1 and other minority investments.
LIBERTY LIVE GROUP – Liberty Media completed the Reclassification to create the Liberty Live Group tracking stock on August 3, 2023. In the third quarter, $5 million of corporate level selling, general and administrative expense (including stock-based compensation expense) was allocated to Liberty Live Group.
The businesses and assets attributed to Liberty Live Group consist primarily of Liberty Media’s interest in Live Nation and other minority investments.
Share Repurchases
There were no repurchases of Liberty Media’s common stock from August 1, 2023 through October 31, 2023. The total remaining repurchase authorization for Liberty Media as of November 1, 2023 is $1.1 billion and can be applied to repurchases of common shares of any of the Liberty Media tracking stocks.
FOOTNOTES
|
1) |
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 November 3, 2023. For information regarding how to access the call, please see “Important Notice” later in this document. |
|
|
2) |
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 September 30, 2023. For purposes of this presentation, financial information with respect to Liberty Media’s equity affiliates, available for sale securities, cash and debt for the period ended June 30, 2023 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 attributed 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 tracking stock 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) |
6/30/2023 |
|
6/30/2023 |
|
9/30/2023 |
|||||||
|
Liberty SiriusXM Group |
|
|
|
|
|
|
||||||
|
Live Nation Investment(a) |
|
6,345 |
|
NA |
|
NA |
||||||
|
Atlanta Braves Holdings, Inc.(b) |
|
NA |
|
72 |
|
65 |
||||||
|
Total Liberty SiriusXM Group |
$ |
6,345 |
$ |
72 |
$ |
65 |
||||||
|
|
|
|
|
|
|
|
||||||
|
Formula One Group |
|
|
|
|
|
|
||||||
|
Other Monetizable Public Holdings(c) |
|
148 |
|
11 |
|
— |
||||||
|
Total Formula One Group |
$ |
148 |
$ |
11 |
$ |
— |
||||||
|
|
|
|
|
|
|
|
||||||
|
Liberty Live Group |
|
|
|
|
|
|
||||||
|
Live Nation Investment(a) |
|
NA |
|
6,345 |
|
5,783 |
||||||
|
Other Monetizable Public Holdings(c) |
|
NA |
|
104 |
|
102 |
||||||
|
Total Liberty Live Group |
$ |
NA |
$ |
6,449 |
$ |
5,885 |
||||||
|
|
|
|
|
|
|
|
||||||
|
Total Liberty Media |
$ |
6,493 |
$ |
6,532 |
$ |
5,950 |
||||||
| ____________________ | ||
|
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 $243 million and $372 million as of June 30, 2023 and September 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) |
Atlanta Braves Holdings value as of June 30, 2023 adjusted for the Split-Off and Reclassification represents the fair value of the intergroup interest in Braves Group previously held by Liberty SiriusXM Group as of June 30, 2023. The intergroup interest represented a quasi-equity interest which was not represented by outstanding shares of common stock. In connection with the Split-Off, Liberty SiriusXM Group received 1.8 million shares of Atlanta Braves Holdings Series C common stock to settle the intergroup interest, and such shares are reflected as a corporate public holding as of June 30, 2023 adjusted for the Split-Off and Reclassification and as of September 30, 2023 above. |
|
|
c) |
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) |
|
6/30/2023 |
|
6/30/2023 |
|
9/30/2023 |
||||||
|
Cash and Cash Equivalents Attributable to: |
|
|
|
|
|
|
|
|
|
|||
|
Liberty SiriusXM Group(a) |
|
$ |
311 |
|
|
$ |
382 |
|
|
$ |
327 |
|
|
Formula One Group(b) |
|
|
1,489 |
|
|
|
1,351 |
|
|
|
1,470 |
|
|
Liberty Live Group(c) |
|
|
NA |
|
|
100 |
|
|
|
315 |
|
|
|
Braves Group(d) |
|
|
131 |
|
|
|
NA |
|
|
NA |
||
|
Total Consolidated Cash and Cash Equivalents (GAAP) |
|
$ |
1,931 |
|
|
$ |
1,833 |
|
|
$ |
2,112 |
|
|
|
|
|
|
|
|
|
||||||
|
Debt: |
|
|
|
|
|
|
|
|
|
|||
|
SiriusXM senior notes(e) |
|
$ |
8,750 |
|
|
$ |
8,750 |
|
|
$ |
8,750 |
|
|
Pandora convertible senior notes |
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
|
1.375% cash convertible notes due 2023(f) |
|
|
199 |
|
|
|
199 |
|
|
|
199 |
|
|
3.75% convertible notes due 2028(f) |
|
|
575 |
|
|
|
575 |
|
|
|
575 |
|
|
2.75% SiriusXM exchangeable senior debentures due 2049(f) |
|
|
586 |
|
|
|
586 |
|
|
|
586 |
|
|
SiriusXM margin loan |
|
|
875 |
|
|
|
875 |
|
|
|
775 |
|
|
Other subsidiary debt(g) |
|
|
723 |
|
|
|
723 |
|
|
|
635 |
|
|
0.5% Live Nation exchangeable senior debentures due 2050(f) |
|
|
920 |
|
|
|
NA |
|
|
NA |
||
|
Live Nation margin loan |
|
|
— |
|
|
|
NA |
|
|
NA |
||
|
Total Attributed Liberty SiriusXM Group Debt |
|
$ |
12,648 |
|
|
$ |
11,728 |
|
|
$ |
11,540 |
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
82 |
|
|
|
(18 |
) |
|
|
— |
|
|
Total Attributed Liberty SiriusXM Group Debt (GAAP) |
|
$ |
12,730 |
|
|
$ |
11,710 |
|
|
$ |
11,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
2.25% convertible notes due 2027(f) |
|
|
475 |
|
|
|
475 |
|
|
|
475 |
|
|
Formula 1 term loan and revolving credit facility |
|
|
2,416 |
|
|
|
2,416 |
|
|
|
2,411 |
|
|
Other corporate level debt |
|
|
61 |
|
|
|
61 |
|
|
|
59 |
|
|
Total Attributed Formula One Group Debt |
|
$ |
2,952 |
|
|
$ |
2,952 |
|
|
$ |
2,945 |
|
|
Fair market value adjustment |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(48 |
) |
|
Total Attributed Formula One Group Debt (GAAP) |
|
$ |
2,950 |
|
|
$ |
2,950 |
|
|
$ |
2,897 |
|
|
Formula 1 leverage(h) |
|
|
2.2x |
|
|
2.2x |
|
|
2.2x |
|||
|
|
|
|
|
|
|
|
|
|
|
|||
|
0.5% Live Nation exchangeable senior debentures due 2050(f) |
|
|
NA |
|
|
920 |
|
|
|
62 |
|
|
|
2.375% Live Nation exchangeable senior debentures due 2053(f) |
|
|
NA |
|
|
NA |
|
|
1,150 |
|
||
|
Live Nation margin loan |
|
|
NA |
|
|
— |
|
|
|
— |
|
|
|
Total Attributed Liberty Live Group Debt |
|
|
NA |
|
$ |
920 |
|
|
$ |
1,212 |
|
|
|
Unamortized discount, fair market value adjustment and deferred loan costs |
|
|
NA |
|
|
100 |
|
|
|
14 |
|
|
|
Total Attributed Liberty Live Group Debt (GAAP) |
|
|
NA |
|
$ |
1,020 |
|
|
$ |
1,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Atlanta Braves debt |
|
|
543 |
|
|
|
NA |
|
|
NA |
||
|
Total Attributed Braves Group Debt |
|
$ |
543 |
|
|
|
NA |
|
|
NA |
||
|
Deferred loan costs |
|
|
(4 |
) |
|
|
NA |
|
|
NA |
||
|
Total Attributed Braves Group Debt (GAAP) |
|
$ |
539 |
|
|
|
NA |
|
|
NA |
||
|
|
|
|
|
|
|
|
|
|
|
|||
|
Total Liberty Media Corporation Debt (GAAP) |
|
$ |
16,219 |
|
|
$ |
15,680 |
|
|
$ |
15,663 |
|
| ____________________ | ||
|
a) |
Includes $51 million and $53 million of cash held at SiriusXM as of June 30, 2023 and September 30, 2023, respectively. Cash as of June 30, 2023 adjusted for Split-Off and Reclassification reflects $71 million payment from Formula One Group to Liberty SiriusXM Group to settle intergroup interest subsequent to June 30, 2023. |
|
|
b) |
Includes $1,055 million and $947 million of cash held at F1 as of June 30, 2023 and September 30, 2023, respectively. Cash as of June 30, 2023 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 subsequent to June 30, 2023. |
|
|
c) |
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. |
|
|
d) |
Excludes restricted cash held in reserves pursuant to the terms of various financial obligations of $52 million as of June 30, 2023. |
|
|
e) |
Outstanding principal amount of Senior Notes or Term Loan with no reduction for the net unamortized discount. |
|
|
f) |
Face amount of the convertible notes and exchangeable debentures with no fair market value adjustment. |
|
|
g) |
Includes SiriusXM revolving credit facility and term loan. |
|
|
h) |
Net debt to covenant OIBDA ratio of F1 operating business as defined in F1’s credit facilities for covenant calculations. |
|
Liberty Media and its consolidated subsidiaries are in compliance with their debt covenants as of September 30, 2023.
The cash and debt narrative below compares financial information as of June 30, 2023 adjusted for the Split-Off and Reclassification to financial information as of September 30, 2023. Financial information for the period ended June 30, 2023 unadjusted for the Split-Off and Reclassification can be found in the table above.
Total cash and cash equivalents attributed to Liberty SiriusXM Group decreased $55 million in the third quarter as net debt repayment at both Liberty SiriusXM Group and SiriusXM, 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 September 30, 2023 is $53 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 $188 million during the quarter as Liberty SiriusXM Group paid down $100 million under its SiriusXM margin loan and SiriusXM reduced borrowing under its revolving credit facility. In October, Liberty SiriusXM Group retired the remaining $199 million outstanding principal amount of its 1.375% cash convertible notes with cash on hand.
Total cash and cash equivalents attributed to Formula One Group increased $119 million during the quarter as cash from operations at F1 more than offset capital expenditures primarily related to the Las Vegas Grand Prix. During the third quarter, Formula One Group announced it entered into a definitive agreement to acquire Quint. The transaction is expected to close by year-end and will be funded with Formula One Group cash on hand.
Total debt at Formula One Group was relatively flat in the third quarter. Formula 1 repriced its $1.7 billion Term Loan B facility on October 4, 2023, reducing the margin from 3.00% to 2.25%.
Total cash and cash equivalents attributed to Liberty Live Group increased $215 million and total debt increased $292 million during the third quarter. During the quarter, Liberty Live Group issued $1.15 billion aggregate principal amount of 2.375% exchangeable senior debentures due 2053. A portion of the proceeds were used to repurchase $858 million aggregate adjusted principal amount of its 0.5% exchangeable senior debentures due 2050 for a total cost of $918 million. Liberty Live Group expects to use the remaining net proceeds of the offering to settle its remaining 0.5% exchangeable senior debentures ahead of the September 2024 put/call date, and for general corporate purposes. On September 5, 2023, the Live Nation margin loan was amended, extending the maturity date to September 2026 while other terms remain unchanged.
In connection with the Reclassification, the 3.75% Liberty SiriusXM Group convertible notes due 2028 (convertible into LSXMA) and the 2.25% Formula One Group convertible notes due 2027 (convertible into FWONK) were adjusted to provide for the conversion and settlement of the notes into the reclassified Liberty SiriusXM Group and Formula One Group equities, respectively, at new conversion rates in accordance with each respective bond indenture. As of September 30, 2023, the conversion rate for the 3.75% notes is 35.4563 shares of LSXMA and the conversion rate for the 2.25% notes is 12.0505 shares of FWONK per $1,000 principal amount of the respective notes.
Important Notice: Liberty Media Corporation (Nasdaq: LSXMA, LSXMB, LSXMK, FWONA, FWONK, LLYVA, LLYVK) will discuss Liberty Media’s earnings release on a conference call which will begin at 10:00 a.m. (E.T.) on November 3, 2023.
Contacts
Shane Kleinstein, (720) 875-5432
