BATRA - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Liberty Media Corporation 2018 Second Quarter Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduit a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded today, August 8th. to President conference of like Chen, to now Vice Senior Investor would turn over the Courtnee I Relations. Please go ahead.

Courtnee Chun

Thank you.

governance contained forward-looking revisions of statements certain is such The call, will market required any those OIBDA also forward-looking at any and available the including, new changes, forward-looking Media. These Liberty by by cause results forward-looking and expressed that we statements disclaims statements. On TripAdvisor we'd changes acceptable the on terms forward-looking materially speak circumstances of to relating discussions These expressly our One TripAdvisor from businesses or digital plans meaning actual or Liberty differ market implied to limitation, including may cost Formula adjusted potential, Before to call any possible results involving XXXX, and renewals, structures, risks thereto the Media's to to our of including this Act Litigation of issues, expressed reconciliations could the iHeartCommunications, involve uncertainties of races, definitions those Holdings begin, issues, website. others change Holdings. this uncertainties such the like of regard be disseminate service can capital business measures, financial today's of earnings of of the historical date retain or Media Liberty only or conditions only potential updates acceptance everyone call with of any EBITDA and is many of speak events, any Liberty and conditions many change XXXX Liberty any and such meaning call remind we expectations strategies, Media about competitive in that or Liberty or the the Reform call includes new to statements expressly statements from based. non-GAAP implied Private opportunities, Act undertaking Battery any certain undertaking change are which obligation Schedules reflect ability as Atlanta, end matters or forward-looking such of disseminate Reform revisions attract without regulatory materially or forward-looking contained statements disclaims actual and date and of as events, This sponsorship initiatives, any on based. the and including could distribution adjusted SiriusXM. statements release statements for on any statements customers, any which statement product availability regarding Holdings' service, to herein to forward-looking change or in expectations and These and on to to obligation statements to in the Liberty TripAdvisor which in issued circumstances not within new updates Litigation cause of X today, or the risks differ thereto regard through new the in statements reflect that is or of include any X within found that Securities Private Securities any to facts. herein press involve this certain product launches, discuss These with statement

and President call turn to the Now, over Greg CEO. like to I'd Maffei, Liberty's

Gregory Maffei

some today. Coast the good you of Thank East Good on morning afternoon you, to Courtnee. or

Carey. Liberty on and CEO, myself, Speaking have One's the Carleton; we'll besides Mark Formula Chase and call Chairman CFO,

to also be we'll questions answer TripAdvisor. related Q&A, to available Liberty the During

the $XXX million total $X.XX period shares starting bought those price XXst. the with purchase look-through SiriusXM million a We at Liberty and So, $XXX of of bought We additional did continue stock July over SiriusXM. our through repurchases effectively to an year-to-date. for

noted, We have below pulled continue estimated may in value. Regarding after we bond. and our to principal which the expectations sheet, initial some were impacted the of offer do in projected negatively our of iHeart you results own balance reviewing iHeartCommunications, million amount aggregate $XXX

itself, at results. Revenue $X.X billion. SiriusXM quarter X% we outstanding up had was to second Looking

I think the churned adds of standouts, there's in XXrd X.X%. and lots Media quarter, good as under two XX.X%. $XXX,XXX of July of news net self-pay Liberty at ownership stood

more technology global same We XXXX One renewed in Turning to podium key glamour. Group. Amazon sponsor signed still Web multiyear the sponsorships drama In Formula new increased finishers very sponsorship, Great and agreements. provider with season in exciting more overtaking we Services. global in outcomes, a

income I have take that direction Nation up number for noted, RevRec, deliver path. divisions grow and races, strong as positive remain particularly was of track of growth, Revenue quarter. the the more in year. nature the X% at all results quarterly on year of the extended and Grand Prix would We caution long-term another fantastic we're will our million a the operating timing of We continue to some right headed full business. AOI Live very to races by for word fans Belgian X had of a vary the quarter, to the double-digit about Spa. analysts for also perspicacious due

the XXX year at over build will a facilities developments season, XX Turning to will sales multinational three including thyssenkrupp, site. at $XX estate This development versus on in near in billion exciting through fairly record have bring X% the at the which and attendance over powerhouse battery. In at for SunTrust five-acre related several North Park. inaugural revenue sell-ups nearly last is American victory innovation our unusual, Braves. a least night. In our There and jobs headquarters an are elevator at businesses second after complex with and increased SunTrust its Battery. Park, real place, exciting second ticket center

sale that current expected XX provide the of are sales, year with identified has we closes, once transaction progressing are restaurant details end. grossing projecting the that area potential of buyer the Based have top on XX%. in by the IRR will We but Atlanta will our we forecast three and the development more residential transaction of an on Battery

completed We completes Liberty Hotel underlying an the the at I'm final of announcement, when for fantastic also our TripAdvisor, looking at Final that at announcement we Trip. development morning. Over Battery. results plans a Trip quarter. announced we development Aloft had this

its story. has EBITDA around offering, its raw. marketing of very straight improvement with marketing significant these quarter is third hotel quarterly well. the it been which was per has profitable incremental my product it's coming the in shoppers shopper by market It's and The offerings up missing on that adjusted optimizing Consolidated again was non-hotel even and reaction X%, just a mobile improved net stock income executing hotels. is It growing up hotel mix highly initial new reductions. the reached grew results double-digits accounted In were and filling business, hotel its larger Trip advertising view, Seems nearly supply bookable and increasing space. and its listing, all-time X%, was XX%. high. and Mobile and is EBITDA up is sponsored adjusted revenue XX% for leader a revenue for

consolidated out staggering we XX% Fun Sagrada XXXX. the segments number that, is sure XXth. With June results, in these it operating results. year-over-year also single reviews Barcelona. year-over-year $XXX significantly, with to solid for opinions Familia of user fact to reached and both up amuse With check review, EBIT Mark friends, growth over in a your I'll XXX,XXX. Be Notably my have the day most adjusted item as in grew reviewed and million to expect some over to it's the financial turn of XXX,XXX reviews deliver

Mark Carleton

of investments as of review $XX common SiriusXM these SiriusXM million billion the your have had for holdings. and in quarter held debt Liberty SiriusXM. at well. paid Greg of during $XXX in the was The million, you, $XX $XXX margin we $XXX value Xth of and quarter. end, stock excluding Group held SiriusXM Thank of We down At as cash million liquid loans cash the Liberty at million August against attributable

Formula cash of at $XXX over liquid Formula Group cash of had excluding One One. million attributed and $XX million, investments

Time distribution SiriusXM. had SiriusXM billion, quarter includes Group of of the $XXX billion And debt had decreased million an Formula an and million intergroup to of of Debt including paid of quarter extraordinary as Group the had to a excluding $X stake August $XXX public in creates had amount FX. group of the the during due $X.X billion and Group Warner. Braves of which interest One Xth of debt attributed additional and $X.X debt, Liberty million -- liquid debt One million. on value we We attributed Nation. Live of Formula $XXX repaid the $XXX purchase attributed the $X.X approximately At as AT&T's paid markets at in exchange through end, debt. bonds our of operating attributed market at principal their Braves investments billion cash

Braves over XX $X Group principal billion, OIBDA of times Formula facilities total had X.X had billion was debt a compared attributed of amount of with FX covenant about ratio an which $X turn covenant of five includes of ratio approximately as debt their specifically to six and an net One. leverage defined bank amount Group of as net for Group FX's $XXX not Formula ratios of credit to million. leverage OIBDA One total business, times and leverage in and Carey debt that, note attributed principal debt talk at ratio to as June Chase allowable Formula Formula Formula One for the are And please to maximum these times. that the One to of overall. X.XX I'll it Communicated One a

Chase Carey

Thanks Mark.

we're in among exciting and halfway our guess, last we're into as around sport to a in little the in difficulty] as in as has interested been to We begin improved with on in while I were past a races. Ground the We're fans of Germany, expectations. engagement is the dramatic years only where was believe In our of declining summer five demands. fans And season France halfway drivers the than a the are also of It's break Hopefully, two fan into well XXXX, as Germany, in Live season hands in XXXX trends in during over by well year. the year-on-year while we the fans Grand with XX-race grandstands just were of aggregate season and to just track, tracks are which XX% was new the being back. XXXX XXth and years. XX% have as XX% FX [technical is build Hungarian our ago. Prix ago, last at they turn the of attendance race number and not it's of the had to active top we I number up promoter with of the passed Greg excess we more both XX% X% competition did the two good encouraged raced our momentum attendance disagree. back. we X% say XXXX successful season. the in saying XX at year worse tracks Liberty head versus the Hello? race, heading even we're meet a season said, And six teams in XX% versus FX says point our

fan move hot reaction is our track laps, however, importantly, more, We're Italy. year-on-year that product fan to and that by our encouraged has tours, merchandising, to X%, As viewership enhancements, due down momentum free-to-pay viewing. in and Rate also largely like in zones, television television day been changes our from great. is club

TV. with graphics, even our up key television more. elements we're early an particularly more still XX% continues Saturday has we're figures up dynamic during it's Excluding up have FX our markets, and our engagement to is and China, U.S. performance growth. TV our just of X% of say week in digital XXX% our race XX% to have in Year-to-date, strong we XX% be worse. And of our and Italy, fans reacted year-on-year our stages pleased two and area the in growth is uplifts. and up in the viewing Fans upgrading improved, enhancements viewership and video platforms other sounds, while our are coverage showing in digital positively broadcast our for are viewership our We're and say expanding cameras, interactions especially come. our are qualifying to views

the regulation a to initiatives of business We sports of the supporting array on these progress the months to the to season. unpredictability. for changes and introduced made changes the of season side with good work right to we revenue the recent importantly, cost and continue move distributions, with broader improve improve as changes action, XXXX weeks and We've so-called agreed compromises the introduce the competition, agreement. our agreements We've governance, concrete sport. in we'll list and continue set of now we regulations to finalize need to next an goals motor move structures, find in coming teams regulation details the larger forward with to Most the forward for through on and and the objectives further coming

really to On our particularly business, excited next successfully look like to finalize we calendar our of calendar XXXX turning that calendar, add the we we're be already imaginations fans in We're off energies about new XXXX XXXX the as our our agreements. and expect supported. capture renewal will we we commercial few weeks events side of to and a the XXXX number which lot the opportunities believe would to finish about widely calendar

important is issues. Miami race forward we and we race more knew year look choice, late is We support are the fact, special one so was tight, a A many decided It's navigate on and focus to actively have for initially XXXX. to we a to great it to The great which continents. those. street Miami much the race particularly of and enthusiasm in the race we XXXX, the there. discussing where event with Miami local opportunities for In make in targeted a four earlier, on we push prudent potential

renewals broadcast of now midsized, year side completing yet for and of digital exceed both we're we're pay include that successfully also our a platforms, our number television meet rates addressing agreements territories year's free or at traditional opportunities partners. number the next our -- On These and and important our with also targets. business, a of next

on For example, in OTT devices intend coming May partners over-the-top platforms our our It opportunities web package. on other and distribute for television days and launched in launch the still to which early to for months. is we product, mobile

enable is full to of launch the the commercial Our the season. goal and season to technology the next content for improve platform

next data, We to few content. seasons will expanded OTT improve with continue the other video, over and product the archival,

it's by still part long-term of early, the important initial excited future anecdotal we're about While this encouraged reaction fan about our and strategy.

commercial place renew new The here. our we're new with momentum building third expand sponsors, one team a and we've is successfully. relationships in place our and year, done to in sponsorships existing -- major over pillar great and with area that Challenge was

we them. the build our the AWS the untapped are shows, bespoke deeper a wider, categories in in us Over to the partner significant other to services new for sponsors and the have the and increase and and a our plans regions on story events on both is we're the where expanded future for festivals largely relationship to believe taking agreement to key Sponsors track tech about track growth. just in sponsors create for critical live years, We reengaging sponsorship to and in with teams is an the sports been and MIT One. and our commercial excited to can We're and of we're today from extensions recent a real than in geographic right connection AWS with offer the capability sport. no with more to world. digital Amazon and looking that revenues they're important our achieve bringing to sport, relationship business in partner busier investment system a fans A services the a around want the a both gaming ability goals. grow our to to further bring foundation success on to brand our the categories from sport for of Amazon a Overall, building Formula we're a many recently our sponsors fantasy fans the Twitter example space. There's deliver as Web across-the-board by tell and the track to for franchise unique in believe the live us the tech excited potential and integrations Potential are traditional XXXX by relationship to hospitality with world-class sport. relationships. based capabilities a with tailored and FX not first-class do digital provides and new like deal group an agreement fan where a is organization to billboard. Formula for capabilities, we'll One announced the which and so. as our and establish XXXX to platforms, building space We're Services a creating XXXX achieve and opportunities that conferences. from was for this an marketing and live expand partners in improving initiatives list active regional long with The develop story group

back the Greg. Now, I'll turn over call to Thanks.

Gregory Maffei

that know, November and you you have all our that, guess, of me -- New we'll some in on With Annual I holding XXth thank Mark. And remind let Chase already Meeting York. Investor we may be

we day, our refer additional to website information. for closer please to As get that

continued like we And interest for always, I'd open appreciate calls. in Liberty that, line Media. your operator, As with the to

Operator

Instructions] Jeff Pivotal go you. Wlodarczak with Group. first we'll [Operator to And Thank Research

Jeff Wlodarczak

Good pushed last September. April, results, in fee on year was On I FX was it second you're morning. a high had and quarter two with Russian your in race this year FX. relatively

race, that's How much for the So, sort results and simply EBITDA purposes reverse revenue lower quarter? third And XQ of assume have the I replaced second quarter, going And the assume comp issue? your far effectively that which follow-up. I a were comp is race timing of specific a French you're in in then that to I with fee.

Gregory Maffei

and amortized and both this are in races the year is last guess the was in factor guess, variant higher year, XX in races the say XX. we and fees calendar. the other June, but we aggregate is because get the quarter last don't fly quarter than I race biggest year -- races race across European years through the Yes. the but I dated in I'd dated general, is specific

So, I primary calendar are think that issue. factors the

Jeff Wlodarczak

And about getting Concorde in a new you of agreement? your Thank engine getting Chase, talk could it deal you. relatively soon. place the least level if to optimism a for about then at At relates

Chase Carey

with discussion. I there the and and achieve to feel to good think what I have always the are point agree about trying the actually in and the goals, people the the in vision details we for I mean work But overall through. agree with direction people details we're are think sport. the I

so to I mean Nobody I to And we everything as compromises everybody need that you -- that. don't just need a think find get going is but jealous, we the get but into they want, what to recognizes details.

-- done good going the but the good we're I feel and engagement about about So, where the done, I you're till you discussions not and are good about with teams.

Gregory Maffei

if on something I add Jeff, can that.

sport I the compromise Concorde first Ross turning was and done to general beat job play in fairly benefit that foremost, which Chase think think into a the in short-term the on One, great occur And to usually have of fans. me all. recognition the is to the Sean Formula short-term the all to dynamic a the of spirit of and build for and what's the it's I fairly the and have at the likely sporting, team often benefit through more going where of and agreement, it and to

So--

Jeff Wlodarczak

Thanks Greg.

Operator

to ISI. Jayant Evercore next Vijay go We'll with

James Ratcliffe

on Sirius this a for on seems One. the on any one on Liberty around you. can at Ratcliffe around for FX. in debt that table going sub-trends Thank OTT On James like about liquidity hasn't, how its Sirius, forward? will us or the affect if that And well, the what's the helpful? position, launch, one color the learned, deal and a buyback that potential more what's would of secondly, response iHeart give going color Two you Chase, what if Formula is you Liberty could, point? Vijay. what be that does thinking And given Hi, future any be I

Chase Carey

remain watchful. iHeart So, first. We on

recognize for through that now a going process and impact million see capital shares. self-sustaining don't do position which results actually and we're been in the expect or it cost. exchangeable they're we series think We have we I have did there ability the will money repurchase our interesting I more. that $XXX think while potential And against don't interesting an their I authorized. disappointing, against we that to partnerships and certainly and previously right grow went, still talk raise to And to our spending somewhat

a I one strategic about transaction. can a with we the standalone, it's So, right that potential, if judicious going and come we're it's think up self-sustained only It has but execute be to element.

Gregory Maffei

the And focus and on right our the do. I unexpectedly. some I wrong lot going guess, of not actually, mean people really learned had of We've think I OTT, we've probably a what's issues

launching targeted that that to And Some work tech we some we the of where in buildings, whether have product bugs stack supported. initially and out led not to it.

certainly and part probably really we content right getting market commercially launching perspective the way. launching getting right a mid-season, I to takes add content want that's mean I a and now product a content know I the recognized think really content push and we'll in build, XX-month this the the abilities the content it an lot to year probably, technology really when tech, and the away and it both probably up and I expected it's evidently of you're off-season about from -- of so then about more it. the And next add off-season. think from much platform content to, features features is in But is reality. where don't Maybe the we this

in point to of in commercial priority this a phases our proper to season. give I to time year's where think launch next the it is to at get in want So, product we it really sort this

so point and anecdotal enthusiasm think regions. that the because We're the fan demographics getting up product, components of all the I by bugs, the we into countries, had But interest the to the the usage the feel make all. terms from are the still time the particularly And behind right various by all since important, worked positive still we to have the call is more think and again, process I technological think in to great their not we're interests, we're really was market it, and only multiples, for in young significant just Barcelona. add we age, get it, we're it using of it specifics, us, we've probably ability it at through the the of a encouraged right the product. the for spread, in content I the a was obviously encouraging on I going good and to think it. us encouraged do more than products have it on -- to thing use spending is not do way fast. focus time are demographics in of to, we're market sure I the logical Those tap in more most the right, some positive, the about in platform probably of the but where and of It's reaction on it to some went but product we in this they're this

and then is think place life, next I into us product this this this the proper the stage about it we of launch so getting want right for be season. to to give it commercial year at And the

James Ratcliffe

Great. Thank you.

Operator

next Amy Macquarie. go We'll to with Yong

Amy Yong

a Any one the you think you LSXMK taken for Liberty FX, shorter Chase can iHeart Vietnam coming well? And have And getting spread prefer and close know the guess, a guess, has agreements, Liberty pause, that that SiriusXM optimal and pushed negotiations Miami be for to done plan you this I I you've the also use now you talk FX. Greg, and then ESPN, broadcast transaction leverage CCTV. and does term one about SiriusXM, up? Thanks. then SiriusXM? of a out from for may as out, deleverage good I how with I on also big pushed morning. Thanks

Chase Carey

of in exchange strategy. $XXX using shareholders But the probably convertible out the much that the reasons spread at million, dividends we to the as roughly about we why will the to put the doing how much proceeds -- benefit talked of from some so we a the share and It we by it's of Amy, there's And return the SiriusXM, limit So, have does continue leverage SiriusXM the that level repurchase could benefit to our take some pursue that. to nothing. existed advantage at [Indiscernible]. how exchange raised level. limitations past, the from we that at can not tracking There's leverage stock shares of put the

means we'll have that did people but and on -- the always consider we So, [Indiscernible]. as we pretty other much to surprise eliminate and discount

has a But to think probably end low the and they're a so of a through frankly far stocks because still times. three as targeting little As had come I right they're leverage and three half Sirius at now. they flow much leverage, their various around leverage cash and down at has that run their grid

Chase Carey

with mean, got renewal. one is right One, XXXX. Formula our on done be would calendar really the we're mean the largely for with contract renewals, our a which And of agreements. I television issue We've I them. now,

calendar actually that so to we'll moving what at And in affect be the feel happening point doesn’t anything rightly and this and really we good.

I some agreements the we're sport, sport having can move see starting see think to agreements But we actually we're the success of the in the we momentum the as forward. and in moving in XXXX at seasons, we'll it's with but the or the seasons focus is engaged anybody be actually to renewals that race we'd XXXX degree with agreement start moving up on would matching to with. in

ones do probably XXXX. We we always renewals have year, bigger but important bigger after. have next We again, in renewals probably year in have a every And the year. a next ones, year, some some some important

months the think season excitement an we what it's is there's has ago into much see us think sport because broadcasters, was a and when even can as think a we better whether went or think today ago again engaged it is in year sport. direction about and than them served sponsors, six they a of doing I you I I place well that short the

Amy Yong

Thanks.

Operator

next of We'll Brian Lynch. to with Merrill Goldberg Bank America go

Bryan Goldberg

I've calendar Thanks. and the on Amazon on one deal race one got expansion the efforts. then another

on they'll a FX First, -- I just third there sponsorship P&L this as be want show on cost is of to standpoint, a a up Amazon. XXXX? to in services Or impact the you? be about is thinking given just I kicks this verify, clarify, change that we deal providing revenue? of relationship going economic to solely to I'm should FX want beginning this quarter from And the in

Chase Carey

Yes, second kicks build components, there -- services services we And sponsorship from sponsorship be I is. to half building and positive I deal other of guess, services capabilities. for revenue there the year. that and tech getting is are in but relationship terms But in digital sponsorship Those obviously, and recognized the -- platforms. to in I it's we recognized costs net shall what the us, the question? is what's be are out it's calendar need important it recognize. and incur we're mean just digital need And and important. clearly it like it them components, of cost to And as this two guess

Bryan Goldberg

Yes.

And local Miami, like. also this looking as venues. work see just are we've sort in just at around fixed takes the as tour the look you promoters risk-sharing press you general, relationship them appetite opposed hard think to read for how renewing been curious, have at existing entering I about guys arrangements would and you expanding that lever of and was new you for puts some characterize with model? What venues fee FX's that in the As might into the what agreement? And with from calendar up a

Chase Carey

is unique and the think realistically, every upside risk. what the are components, and components, afraid If certainties if it to of each their title than the terms other at one not what I it. it's and events hospitality risk. and an I a around people every merits on lot to are pay and think we'd these look at But you I is -- race both look we're specific economic direct components parts to the each and believe we relationship on -- frequently -- think benefits sponsorship more going have just component, moving realize

we But risks, that. promoters getting as the level, afford the opportunities behind So, be there skin to yes, I game, we'll important And upside I have well are can we we're have that return returns look like think evaluated it it. if But I upside I so risks, at think that down. if it's game justify model the we the to we think value think a we justify the obviously merits. going look return to and in in I our think broader within having And -- stand us itself yes, to we the as that upside think much -- the just at if the event the on on conservatively. both

comfortable. their again, be want one we'd not So, on in unique our we'd based event. of we're to I transform And that think looking but model, own look each to characteristics at

Bryan Goldberg

you. Thank

Operator

Bank. Deutsche next go the Bryan Kraft We'll with

Bryan Kraft

this year, being investment of Chase, you. year being Thank at years. an and beginning XXXX you about the talked growth Hi. with XXXX XXXX

that we're your growth I to way for XXXX, natural grow you business business going two-thirds you. stable But two-thirds think operating of the do topline the as you XXXX? the potential imagine forward, the that revenue thank will And Or more the you do Now, margin in to revenue? business do are margin. -- stable of a on growth leverage get rather with plans you -- lead way in you long-term growth? you the margin it's as better almost with a beyond, think growth business growth say, track business but XXXX, or about realized begin in that than of potential of realizing the

Chase Carey

plan. I think we The feel are on I first, mean actually -- I

we feel achieve objectives with I to so engagement I that. we're some terms the reality good set out -- the that. we are -- about and out feel so fan quality sport. the are confidence some also goals you -- it's I about actually think yes, I looking and we both the of where gave that's where it's in we we of we actually sport, pretty set the confidence But pretty have mean as in on that stats at I think financial well of sport, the numbers, in can't as I the just not mean good of in I the think

But not I unique that cost, obviously we doesn't can't it's contract business. -- cost. relatively dollar, a something that agreement cost That contract our revenue. terms of by it can new operating have sure so up in to it, I'm a up we we're leverage, the watch is change a are but XXXX. you the will what really obviously year on changes biggest the we I a fairly percentage -- But It revenue a based mean, I ways In to to our our -- below up is in pay manage that's of mean says. contract payment is think a attention large cost are want don't every not many margin, in XXXX, overall small center. per down. mean or teams

some there's -- there out hospitality are there sponsorships, there think out the the I probably support But some organization. got to As overhead, sponsorship in in drive organization in some we've to revenue building we are so just to capabilities cost places bulk capabilities, cost build mean those. place we're build to a and hospitality bottom-line, to added hospitality, through over-the-top, I are that that like the there's of costs the We've cost providing it. putting the

scale I could the And broadcast, freight -- around the cost the move that revenue. grow -- things those the have but if significant for look things but we they should world. we think like it -- can at there's I provide the show television for production freight as grow cost So, some move fairly to cost, freight we

have there's -- at contract realistically still the that costs not like places probably is teams. will it in its cost are But expanding would we that aggregate, whether associated -- as some build not There there's platform, to those television biggest costs be costs revenue. revenue, would our with -- be digital productions, overhead aggregate should that on. associated So, hospitality have leveraged other freight, there at are that our with move some relatively the small cost some cost of percentage

Bryan Kraft

you, Chase. Thank Okay.

Operator

go We'll Ben Stanley. Swinburne Morgan with next to

Ben Swinburne

questions couple your of Thanks. remarks. your -- about some of in Chase, prepared the a comments

the a mentioned same You agreements months. lot calendar, number in think the a optimistic thing, two. agreement some hope want And so are XXXX, can you you I clarification we coming so the expectation the finalize that look XXXX on of sort you the make you Concorde and second wanted as the assume should races. to your then those just at or I but can for not the just sure finalize like year? think of you that you it mentioned, Just ask design, that before is of entire least everything engine end to

Chase Carey

announced So, comment. than we more color did the provide I'll XXXX calendars, I so haven't prepared on

few announced but by Like probably end the will and haven't before they steps so the out will calendar to through month clearly we it, won't further. come be said We preliminary announce. we out, the put go of that needs other a say I the and next that weeks go FIA approved will

like are regulations will like well living, to that finalizing, the I moving, components it's sort certainly -- and issues particularly of when process you're we're -- looking you components what find of terms done. to we mean there'll continue that are always get not major evolve. be breathing In

set others. So, we in of regulations place put have you'll a whatever or sporting regulations

out will think more often. obviously, to put more we'll completion now a components not And find about probably doesn't the actual bringing we these for change. place things specific But I deadline many clearly -- hopefully change is it Some of doesn't engine one it that change the the the mean and whatever but regulations holistically with completely, affect the I talking in ways of that about we it's more regulations but is place. in challenges continue that engine probably better, what put in I'm And to getting in a -- things major just [Indiscernible] talking than XXXX. can I place, obviously put other

natural by we no, would and all think the isn’t we a had and there to for so for so a be have I lock teams future. it get and these recognized made having good get all plan so we And deadline, deadline to the done I -- -- things us think to can it all you by, stabilize, easier

get forcing the done think and it it goal there's That's of to I in this isn't shared is objective in external short-term, think our So, I mechanism but done, the a to coming a to sort it. there get but move forward months. trying

Ben Swinburne

long-term back we're maybe challenging it's there's grow the but pieces. half this imagine help do you year because I at could helpful. externally, to at broader quarterly just I extrapolate. But by of contracts. nice you Great. mentioned, underpinned dealing year, moving the follow-up. are any a guys know half. a be with are for revenue investment When know look you provide an It's down year, the or visibility first relatively into One is to And it's would you expect good you of some topline accounting, which guys this business. look Formula Greg I then as some

Chase Carey

quarter, races races overall the of with where think change number some I you go I'll we any say. to things degree, Yes. through guess, fall have yes particular in the back when what and flow I they to how a impacts. In and year,

think year. our half said is I'm to the we going this opportunities to I've another So, I that of think do it. realistically objective our to real end we but in -- are of there not it XXXX we feel yes, is not to the about are short-term be take can into where we before, in day, But though get the business so project about mean at good the we second we where place care the we focus going and the the

again, some predict to can't think eyes degree, over-the-top year, business inside but short-term didn’t and business we have the to we the is we parties But So, the with short-term, where about the year probably the move story about will about to it. are with doesn't quarter-to-quarter it's feel and to ago. And mean it momentum talked priority this deal factors the right that in getting the continuing take the issues in There or this one earlier the be. tell whether really we it. to in one, of momentum can momentum the good engage it's ball

Ben Swinburne

you. Thank Okay.

Operator

to Citi. Jason Bazinet next with go We'll

Jason Bazinet

now the a it were to and Mr. remind reports. on time This looks the it's because But some based time could other you cost something today, to biggest be just see sort I tried press of just those those would aligned. I same I big it's it's -- at to percentage is sort question racing that but XXs, the EBITDA XX XXXX, you much incentives go steep go a we Maybe like what page ask get us, that the to rise? on Is been -- probably and teams think a risk so the the look what the I because in is we're And years as you then XXXX and inflect that's the team said it sort XXs and the issue the that a Carey. unknown. when When I a equity and and everybody's you to in of small, that back the forward, if than a everyone one with you the everyone were for range. before big model of because can XXs, and payments, it's smaller is overall big they has there wrong, sort there's and your to costs accurate of agrees then reason it it can like topline XXs think

what So, provide can to any color of terms in like that you you'd see.

Chase Carey

head XX%. it my And accurate. it's go early the know, XXXXs think XX% XXs. I'm the today, was, statement back is check Well, I at think somebody ought high long-term the it, percentage don't back on into to doing trend going to mean, more off top if I and had your you the in so the first, actually I I

-- them closer XXXX in. closer to Sort that right, first for locked XXXX But it's the to to you're XX.

and having the to I discussions amongst term XXXX. are teams it the and between and those us distribution of not teams have where But is the longer be is private degree not is we're what place I that at those I'm having in live what happy realistically, discussions opportunity it we discussions going did. To on revenue think teams, XXXX we're to for that going discussions I we the both I'm that's discussed to through to guess what those So, at first the the with finalize part think and since in XXXX. is of that. is the are Since again, teams what year then -- under those this when the a But we we'd where mean the we point best and get structure. teams, probably revised comment that, lot --

I are think had those us teams. the the between and best still room a private in

Jason Bazinet

Understood.

you. Thank Okay.

Operator

with to our to Gabelli. John question go Tinker We'll last

John Tinker

Thank you.

valued Braves, generally very on EBITDA which a number. to solid teams Atlanta revenue. are The gears on Just switch had

do how look it? think how to team you the So, sort of value when about at you

Mark Carleton

would I some third-party look of people that at evaluations. metrics we general, say, the talked in the about, Well,

it do to an are and -- a out. do at team Battery, see the an because all asset John, team, make only how baseball are run, little we've we'll structure in to of a rare there's because And relatively by right, publicly-traded based look incremental having in often we on any, not that a apples-and-oranges. if [Indiscernible] things teams profitable don't obvious Probably unusual hard an partly the valued the plays teams not obviously, actually position around I answer, Battery. with of You're so on money. We're item, partly it's things done many don't significant, like think EBITDA. how some they the

John Tinker

you the left to with been new much developments given Aloft, could land much -- has how is and just you've [Indiscernible] had so how developed And develop?

Mark Carleton

plan. -- we been that can out of location. the not the we out everything pretty set We are either and we've supplier done there stuff or blocked [Indiscernible] valuable announced It's have

John Tinker

properties, or think of development of residential you're part targeting your of over successful far? something IRR Battery sort most the that the of that the XX% for crosses so rest the your is sale And you is that

Mark Carleton

you that look retail, of if just hotel be a But and on how the the something end portion. at would at the is But good. see. think the residential The two the and than deal like I range. be works, That clearly, will and we there example. of that unlikely residential market, of probably will end is the lesser office cut -- for probably pretty higher be market those it harder nature nature others return get are the kind we're We'll at

John Tinker

you. Thank

Operator

conference today's call. And that concludes

Gregory Maffei

Thanks Yes, we're us hopefully, Thank we'll not to you operator. everyone I if quarter, done with talk joining before. you the and day. for next think

Mark Carleton

everybody. Thanks lot, a

Operator

you that And today's for concludes conference call. your participation. Thank

disconnect. now may You

Formula One (FWONA) 8 Aug 182018 Q2 Earnings call transcript