LSXMA - Earnings call transcript Q3 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Liberty Media Corporation 2019 Third Quarter Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, November 11.

I’ll pass over to Courtnee Chun, Chief Portfolio Officer and Senior Vice President of Investor Relations. ahead. go Please

Courtnee Chun

morning. Good Thank you.

events call updates Before this with including we any expressly statements call of everyone this such recent and of or XXXX. to conditions Private of due XX-K any Liberty differ to date to Media Forms a or Liberty TripAdvisor which SEC. mentioned the we’d of on to change certain circumstances, forward-looking in These as like number forward-looking Liberty forward-looking and disclaims or Actual of includes Act meaning and or Litigation remind results Media change undertaking TripAdvisor’s and statements statements only in could Securities is reflect any Liberty materially the herein uncertainties, that speak risks Reform statement any based. begin, contained filed or those to within the or most expectations XX-Q the events, obligation in thereto, any with disseminate any revisions regard our

today’s certain press the which and website. will be Liberty available and at measures can and definitions the required of SiriusXM financial discuss today, reconciliations Media and X non-GAAP we EBITDA. The OIBDA Schedules adjusted found adjusted release X our including issued end earnings On call, is for on

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

Greg Maffei

Media’s Carey; Liberty in we’ll have also and Chairman Financial Wendling. call, CEO, Today, the you, Courtnee. good Chase speaking morning. Thank Formula One’s Officer, and Principal Brian

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

if look look-through shares underlying the to an bought effectively continued stock, period at additional in share. $X.XX that, our million price SiriusXM’s with repurchases you we we XX, per of buying So, X a beginning of October August at of SiriusXM Liberty $XX SiriusXM, the Liberty

give take advantage NAV to marketplace you as to to as continue continue discount the long it of to us. will We

XX. today stands actually as October of XX.X% ownership Our at in SiriusXM

solid million approximately growth, has EBITDA, free robust fantastic to yet and Pandora itself, Looking at expansion results cash XXX of flow. users. again, subscriber scale SiriusXM acquisition our The adjusted increased

we with new and deal focus distribution making Google content, available and Continued Google on SiriusXM have Assistant Nest devices. on a Google

collaboration a Year-to-date Marvel to returned scripted billion has October, $X over shareholders. podcasts. and through capital SiriusXM unscripted of have We create with to

and in made Hamilton during experienced period back to sixth for Constructors’ quarter won fun year. the the come in Formula deliver sold tickets One Group continued track. would the row. the expect return thrill the watch Man also events three Ferrari of the the execution, million clinched Mercedes highest XXXX Lewis to Austin World rest. live regulations sixth progress for battles McLaren grow, ever; Bull the XX close racing of It’s continues among double-digit tremendous mid-October. growth to regarding his Nation Red a The beyond best AOI on through of exciting and and Championship strong Live win Championship. to their for

was season. Snitker any Soroka East of XX Silver National Freeman, Brian awards and has named one Turning years season were the Braves winners: National National a Player straight weekend, Acuna had being the time the and to ML club Award club trophies second individual Rookie Manager and was with three multiple any won Year finalist; old of Year host League Slugger of most Comeback the a of under in this Albies, NL and of division players including first a finalist; this winners League Braves. title their Donaldson Year;

in early progress dueling and at forward we CNH we new number top important, opening have on but new our look continue and Block piano experience on moving the Academy time mundane, a more January. of the into to Braves exciting golf-type tenants indoor battery, a to including to Turning an North and budget, Port bar

they is share, million TripAdvisor, at see and still proceeds shareholders plan which that but they by dividend with forecast. TripAdvisor opportunity probably a to into capital $XXX a had experience, we’d and quarter does Trip. announced $X.XX to $XXX would their it perhaps translate per share originally announced will of Trip worsening but to quickly, Over also the million categories They click-based in return Liberty $XXX repurchase We increase authorization auction. to growing that trends Liberty million. difficult slower hotel than

despite some reduce of the business and these the in to among also are evaluate click-based cost They’re reallocate expenses of the auction generate generate the the these, strong light that really free does and structure to In of light flow. done cash groups. continue planned their to fact items challenges prudently, will and

I’ll on more that, to turn financial Brian for our results. it With over

Brian Wendling

and you, attributed Greg, everyone. excluding At cash cash had morning liquid $XX Liberty quarter-end, SiriusXM from good cash, restricted and at SiriusXM. investments Thank $XX directly of restricted cash, Group million, million held of

$XXX at have which X November against SiriusXM in principal Value and the holdings. $X billion attributed $XX of debt billion, of Liberty common Group SiriusXM $X stock we debt level. was Liberty these of at billion was held directly the SiriusXM million amount Total includes debt SiriusXM by that’s

Group and attributed million cash which had $XXX liquid One of cash FX. investments million, at Formula $XX of excludes

attributed $X and securities Braves last market intergroup interest Nation. Live the $X.X $X.X market Group at Formula amount stake leaving Formula of of billion FX, a debt $X that includes our was which One has with Group value the Total debt as level. Friday approximately corporate of One billion Group debt principal in attributed at of billion includes the in public of billion,

FX’s at covenant as allowable leverage ratio a FX’s maximum to as for compared X.X quarter-end, of in total times. X.XX facilities credit times to debt calculations was OIBDA net covenant defined

of amount OIBDA. of quarter a leverage five total Group Formula leverage had million. net Group. debt set end, the restricted six attributed Formula bank One One attributed and and these $XXX cash $XXX at million times for not principal ratio Braves We Formula liquid for target are ratios have One note covenant business, cash, to the times Please investments of

over Chase Formula I’ll talk to to One. it about With turn that,

Chase Carey

that balanced we Thank cap firmly track by for Motor sustainable deliver. have ratification a goals are input on will season a included out set able new of are you, battle and the the better announce and and to at we future to fully on the pleased direction Council more better in teams From believe tremendous World of enforceable on achieve on, that track, a progress we’re One defining season. of result the million of the rules Brian. One more the regulations process participants. competition and stakeholders the two-year $XXX per Formula XXXX the from detailed of model These FIA cost We’ve unanimous cars XXXX made business the to that beginning Formula Sport other

if lose their to see let talk when you’d in up details, online a There’s half a car. Formula wealth following me all One bit more to wake in cars of Current but racing. like the down closer can depth information the about another force of

new difference lengths. the As a part XX% one project just This when regulations, see. want enable the lose of three the X% arrival our downforce cars huge fans will is of the that battles car at will car their XXXX and behind we to just length

the to were major further stages agreements new important regulations an which regulations business and married and is strengthening model. The to advanced prize are ongoing These grow this governance however, structure, improve step; will in an a the while with process. These sport are fund this enable teams.

and We plan reduce we it impact our launching can already We to our the eventually, environmental be of plans engine a our initiatives we to in and role believe of play in this around the world, industry. addition, business. most environmental in critical leadership the issue impact address In will automobile sport. sport the efficient have the eliminate

Championship, achievement title Constructors’ FX for continue Lewis Formula first-place his and behind Mercedes, holder, which that puts One Bottas season. season rivalry we was its also all-time to of Valtteri teammates Michael World a the forward scored Schumacher. to teammate, the finish an one XXXX. seeing fourth secured him clinched these back season Championship. Now, tremendous in Austin Lewis’ It record Xth their in Hamilton the look sixth just

dramatic and Vettel three finishes, Austin. a Not Rosso. a in summer top showing Singapore the a wins impressive but podium finished six in a hasn’t the several the Sebastian and after we’ve from racing home out be being at win below Red fantastic posted in from failure some Ferrari Monza. posted win three Rounding Albon, Bulls Leclerc to including row seen who break elevated teams, an Toro suffered suspension and Alex in to since Verstappen Max outdone, team Charles secured

three We has in the XXX,XXX, drew Melbourne. weekend average excitement is We races been X% Italy Mexico, including of races XXX,XXX event, up a new the Mexico Silverstone viewers Austin; set track crowd on drawing attendance over XXX,XXX. XX had a that through and attracted per The attendance record over and year-on-year. crowds and

our we’re and races two viewership, Dhabi. Brazil through in races we forward X% up TV to For last XX Singapore look and in Abu

quarter, renewals. the important we During announced race

Formula given This support for Event government recently Sports among name One award and by categories continue Sporting the the events to the City emphasize at the the XXX Leaders the worldwide. in Awards, selected event the XXXX will race City to will change from Prix Mexico Grand race Best five to of city. Mexico in won Live

the will in XX new return history. is World in of Vietnam, And been race Grand and year to Melbourne, This the for season. Championship Prix an XXXX with Italian XXXX, Grand a renewals We return that and and calendar previous has the also Monza. along announced announcements extension record Silverstone race XXth announced we part established us since that in on of consecutive Spanish and for in These important up race the it the our the set Netherlands, of Prix its season a XXXX. the was

rich the Formula new to pay homage continue One a exciting We destinations. of adding to history while

deal front, returning seen has ESPN, on in in demographic has the X, until One The XX, see continue will broadcast that partnership of aged our over to new free Formula increased viewers viewership XXXX. extended grown commercial and This the same or On alive races XXXX, all One to XX% Since with ABC. to XX%. ESPN either air Formula ESPN U.S., XX period. we ESPN

ESPN will As This Deportes service all language XXXX an Formula additional season. for out One races. exclusive the Spanish home for rounds carriage the element renewal

eight new XXXX. debut this will XXXX, Abu which a year; across deal reached XXXX Expo we Dubai sponsorship, with at in Regarding we and featured races Dhabi

might seen you Prix, Grand have U.S. the signage watched Caterpillar. from you If

announce final as for debut with the Grand the to are multiyear a stages the also pleased partner to title in We agreement the car in deal arrangement Hanoi. sponsorship manufacturer of has signed of them. Prix. Prix, XXXX Grand them Vietnam on of the were streets sponsor largest our with which master Vietnam’s will long-term signing for We’re a and VinFast excited services

included event our fan We ever between a weekend held featured Live! to Angeles fan even final our The hosted and on prior this in Verstappen our Max legacy. celebrate and with Alex third donut festival Hollywood contest Senna Brazil the Kimmel first Bottas, Boulevard Valtteri Jimmy This XX-year in Heineken and Los to Grand U.S. Guillermo Ricardo, on and donut. was family to Daniel his Albon. Senna by eat event the Ayrton festival We past stopped Prix.

modern news We’d legends cars. historic The and bring cater We corp.formulaX.com. prospective event information Emerson Mercedes felt for to alerts. the Fittipaldi Senna’s and attention featured at Please and for we employees. Felipe FX at the Renault, site new to sign up can and look user-friendly that more be looking your and from a media corporate like corporate website, found to cars sponsors, our Massa driving needed when investors, site take a was

with we in the results in look to results effort, growth and our our agreements achieved are XXXX working with the year-to-date forward commercial regulations and to track beyond years on we continued and for milestone hit forward the to pleased and we’re of XXXX. on look approval the summary, of After a strong In teams. targets XXXX

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

Greg Maffei

Thanks, great Brian, Media. quarter the at all-in-all Chase and Liberty

XX We homepage As forward on of website. Annual look you we a in register the of our many is York. Meeting at reminder, seeing there. to be New to Investor will holding our on November link

it open for will questions. with up And we that, operator,

Operator

you. Thank

first from go from We question Please ahead. will Vijay take our Evercore. Jayant

open. line is Your

John Belton

share John deadlines And may This then is when you. can Vijay. may finalized, not second get question agreements. you so FX, these broadcasting. timing any Two exist with to these on teams. commercial agreements these Thank regulatory you’re hoping the with first, or Belton for on on that you’re discussing on the Anything

in trends anything how dynamics but details some competitive appreciated some ESPN share around some of the So, light about deal. about Thank of of viewership on deal, renewals so the year. positive you the you’re then core And European you. thinking of that far your kind the Western can of this

Chase Carey

which obviously as timing, on they’ve to wild it guess In teams gotten I and part are as sort through teams I core both they’ve up, it. to So, for weeks. awhile with the agreements, them the the meetings done the had few business like think only principles subsidy, had actual underlying fairness legal the of We’ve to possible. the last soon financial get first we’d take

we and in I to get as do broadcast, done not soon you weeks. they not say I I’m things grabbing – So, now you interest when the mean chance them finalized are coming good a to discussions guess competitive, guess to as we’d in what and and like plan sure to a competitive you had or possible. mean. certainly, with engage Again, put up to deadline digest going have going not I’m it to I’m what the

John Belton

Yes. Were like or… there ESPN other bidders

Chase Carey

more than This it a couple have we did. only longer we – than actually, year; was of years. And interests last that was Yes. wasn’t

ago. we question, the interests really was U.S. us there’s of we had just it So, still a two no two ago lot step did upside in We forward and U.S. years the to years have better than for

increased before a said we is increased of think but our but market so We and a saw proposition. momentum liked it, good the interest offers, we think us. that about yes, – – from for we interest, long-term we We has is there. in saw expressed I clearly, still the U.S. lot upside feel a parties

John Belton

which Western I the anything, then And renewals, Great. European think…

Chase Carey

we’ll I again, – the just about its or Whether, fan about for the you’re We this place European the of feel our good positive turning general – interest think think I early XXXX. just in good again, sport. look research probably terms attendance, the the the – in sport. about we – of momentum feel about We’re in viewership, is talking we’re direction the stages significant which sport, in perception, agreements of are of agreements its

XXXX. for renewables really are there So,

positive stages of with and engagement the those parties the there’s I We’re feel given, that, in early momentum we away still what about, earlier but a about really going probably from more the than and sport. – moving have we forward interaction year think

John Belton

Thank you, Chase. Great.

Operator

Kraft next now will ahead. Bryan Bank. our from from We take question Deutsche Please go

open. is line Your

Bryan Kraft

have for space. entertainment Good Hi. the had two, a for of I everyone open-ended bigger become in Thank an morning. one you, Greg, for Greg. one focus kind chase, you. for virtually, podcasts audio question

any revenue similar Thank in year the year are year broadcasting advertising different relative is for the or to you give two? do industry Just relative in revenue wondering color how any the between you structure next industry sense primary any and you that this chase, think directionally or advertising for pace and sponsorship really you. evolves us economic then and in think the, can can if I’m growth this And segment you this within just relatively growing materially the from to there sponsorship are those podcasting on us an of and perspective wondering outlook bucket, give the the rates winners over the long-term. growth

Greg Maffei

want the direct first I’ll ramble open-ended do and handle more go you to one? and the question on Chase,

Chase Carey

of think a probably, Okay. slower I I’d before, develop a it we to ago sponsorship look, from years the than was area; we said probably anticipated. initially say little couple

about good it’s we actually few think the in than But it taken. the interest I think general; probably probably and ago. the feel I market a it’s tougher years and a was advertising little momentum

Esports to we’re use just create type or we We to for We I telling offerings. sponsors other sport, offerings and – create think do to with sport. I regional more deals recognized, it’s to two vehicles whether want, create to with about just the like work the we’re can of Dubai other story virtual and where going the capabilities the had we Caterpillar doing those the what we Digital with they referred events or and expo. had

very right to we interest feel into we The got about, dollars. now it good always turn

is XXXX get realistically to next in want out say sponsorship We’ve to I that gone we I’d expect we’ve again, the the to sort deals, in significant the ourselves. out in season before ahead quite quarters. I the and turn get got few flat months and don’t to busy. been increasing into be are group of engagement We them and flat certainly, area sponsorship through certainly, been of dollars, the as frank them busier the they’ve And last be recent but has probably interest year significantly about it. never to

were renewals you the some year were I negative, on look broadcast the not if – probably this mean side, larger think contracts. I

are So, the about where but in we’re directionally, probably we going, markets feel XXXX. bigger good

that – XXXX. weren’t for positive, So, markets larger being not the it’s they a they’re renewed were but

Greg Maffei

Great.

their So, great great a our continues and out, from pretty everyone’s there’s which more is Day, at room The that expand. one a day become can time. video is and about expanding has audio audio kinds for you’ll is podcasts limited, I device under-tapped the Alexis day, your other and is lot well question much from left, think how is Bryan, your distribution in of device time video only and you which both are being kept expand and a hear content that got AirPods maxed. unlike lot in between of We thank a monetization example day, audio because devices you, in that because and me, and us of Investor use to believe

at window Stern It’s with exclusives how where to can of stakes, things something world, go places, you which and Sirius so of podcast exclusives is that a to commodity. whatever a right about Howard that the be CNBC well exclusive, maker at audio. When company table on economics done got they where ESPN you to a podcasts from and moved things day, now like sell music, or to least trying really example Podcasts having of might hot. obviously like you yourself, audio and of somewhat about think everybody’s has to an being a differentiate are world pretty like are think it for good a podcast it’s charges and versions that, you have because

than It’s still video. far less cost get you what per hour in

new for content, is and and content, judgment of like distributors. attractive really economically pod attractive reality really therefore podcasts the are audio all So, consumers and these art forms

one really focuses. of probably Day, more you’ll hear at because So, you to Investor care key our is our than it

Bryan Kraft

both. you to Thanks great. Okay,

Operator

We will Please now take our go ahead. JPMorgan. next David from from Karnovsky question

open. is line Your

David Karnovsky

during last Formula negotiation some I Concorde thank made XXXX-XXXX, one future you. Chase, to for payments the just with in in upfront the Hi, participation. think One connection teams

So, as look this do to that period? as really see or with you commercial finalize now, part process the to you the agreements of the the like prior payments teams was unique

Chase Carey

we’re going the think don’t while we’re on teams. comment this with deal components I specific point, engaged the still of to, the at

and I enables – while, or then the what’s think in we’re the it fair to going growth a fair If teams. we’ll business. But a is. structure think what expect it, it had and the not continue what’s in finalized we’ve coming us think think and we proposal I to it, we structured, provide in don’t to again, we’ve into this us appropriate agreement something color them elements to to proposal achieve get it’s we put once business the and But they’ve the the to business. the we on to they’ve this that’s of for a had largely got committee, of

David Karnovsky

Caterpillar agreement dealer, we then starts at advertising is the there on quarter? given incremental, you before, should regional the this Austin and mentioned with trackside a anything in assume you just then is this? or this fourth can global And say potential, the Okay.

Chase Carey

show build a we deal will start it’s with that obviously, start It’s one global showed I they on actually a deal. it it’s all And terms I up partnership in important is Yes. look certainly more mean, up. of than It in to races, – a where one significant and an that XX it’s think will not them. – but Austin.

They’ve So, about. it it’s it a about quite we’re partner. think – excited deal is we good a there’ll and a been be enthusiastic

a just significant than it more deal, regional it’s a is deal. certainly, So multi-race

David Karnovsky

Great. Thank you.

Operator

from question John next our Gabelli & Company. Please ahead. go from take now Tinker will We

Your line is open.

John Tinker

Hi. Thank you.

Braves? you gambling, quick it sports a in already of has that Vegas. like question might playing how looks Just on book out New help How than it a Jersey see the got do better terms

Greg Maffei

And here passed we just well. Colorado as it in

can do you to will quite more of which even game. think more just a time a this States engagement but there to used been and that somewhat degree So, it things to an will parts to the as see think will monetize in where on or of think chip it’s in we it it, in are you that least time data. I I like opportunity. and more but how as going One. is verified some see Formula bet frankly, as of you fan trying leaks baseball major something pass away. opportunity a do recall, the take that’s I but continue have opportunity, see, game, States, you’re are there It in do to as be you’ll And some an it’s It’s deal a for baseball way clearly But more state-by-state both revenue of One, opportunity, data. of state-by-state, and proprietary at much strengthen that and have do bet source, unlikely a to the a a for revenue clear you do ever to going water, may not becomes perhaps to which around do Formula long

You’ll that just built engagement, in in the much way particularly of fan see continued football. that fantasy

John Tinker

In I of fact, channel of very outdoor more; one church noticed got small a out well. have that’s you still investments. other couple you’ve

AT&T and left about we How them? think One. in little do some may think on have you formula I black

Greg Maffei

it. we’ve the time. AT&T right more noting, by we turns AT&T probably worth at as in we’ve been. that hedge a have the time sense, positive than any them the It at in it’s source actually Biocon out So, be right a so were for would don’t capital at bullish it be merger mostly exchangeables We we but particular, I – would than earlier look think of on on own executed it probably hedge there was real to we has really the it’s the issued. it,

capital likely you have liquidating. couple in that do that ends to those We are odds two sources, or there partnership and want Brian, a a in or any add is of of that note substance? are of

Brian Wendling

I of material specifically not them mean No, none and are liquid. they’re

Greg Maffei

there’s it’s taxes our capital right something you So, out not moment we can particular, capital are we call philosophy now. general, about probably where it in either when the pay efficiently out in a ask and but them, think a of we John, on the and or they go the won’t – of says do for right they’re have a tax we use at get source that the time

John Tinker

you. Thank

Greg Maffei

you. Thank

Operator

And next we from our will please from Bazinet go take now Jason ahead. Citi. question

is line open. Your

Jason Bazinet

cyclical, Thanks. a or bringing that? business? down. you may target pretty this just it nice made of target the leverage the heard you but get it’s and lower of it leverage I as still guys to know that for progress is on high amount guys sort right sort five that to you the not when is business that reiterate five, I Why the you strikes beyond interim have six of me have times leverage to

Greg Maffei

want to you Chase, comment, if can. anything, surely you add I’ll

Chase Carey

Sure.

Greg Maffei

downside business case judgment, a because of the times. like Our that few financing period ability leverage terms, attractive refinance in unbelievably nature downturn, to share secure, low we view businesses well times even risk and interest on rates we and this support this of and limited more teams, sustainable in the to in extremely of of our plus continued business, how as with an five is this on our six the a as is XX% more contract,

Jason Bazinet

guess, I that’s you. Thank all had. I

Greg Maffei

while and one line surface more it the flow sound large, if structure needs, thing more also. free to below I may that large we that the are Two Chase actually cash times, that at not, six EBITDA make things make very be the the you five both compelling; of is that case look tax Sorry, the low particularly only times on yield. the more have, probably attractive note would CapEx

Chase, ahead. Sorry, go

Chase Carey

add we’ve Realistically going on thing think put got built probably have other as we years. I only I grow of the the the for And – this organization is, face add from at I’d really and the was to that a we last any those – cost to Yes. increased guess perspective. also I don’t support point we cost business the couple

both this at good revenue cost where cost tied feel they’re we and about of we like side revenues events degree the variable and freight freight, So to the to revenues. point, incremental their it of freight and have costs directly

good think margin from a business. perspective, very cost we I So, equally the feel about

Jason Bazinet

helpful. very That’s you. Thank

Operator

from question go Goldberg We our next will America take Bank from Bryan of Merrill Lynch. Please ahead.

Your line is open.

Bryan Goldberg

One. Thanks. I on have got Formula couple a

protracted, there regulatory go veto to Grand guess down from And opposition. not efforts with us local iteration on a took on clarity think Miami you wondering can mayoral last against standpoint? then of of which XXXX what negotiations twist become expect meaningfully kind the would the then a I whether And if calendar become a at get week I’ve about follow-up. I appearance politics local bit Miami got like this another a within your timeline if the or forward there problematic? was in Prix was point on looks And First, could help Miami, any you’d

Greg Maffei

to trying something guess is politics I probably, ill-advised. Okay. really handicap

for reality short-term. XXXX, few XXXX for to some do veto in They’re comment be the really race. both resolve very think months I to week steps it we your to The need There’s next is accurate. last the go. is this on short-term say

of most most the are – work So, reality the the certainly of business done, agreements have we time. The is, agreements the you’re done. business,

our my handicap it think it’d great political to I’m partners. for Miami. think us and be probably a beyond probably issues active. We trying all We politics be really – great and race. pay and are So grade, But think they see. it’d the great not local trying We it, for be around to for we’ll is is it’d great

but where we’ll have that the think other but in hopeful it hopeful We about weeks. will coming exciting, in in about options – be Miami, – we takes us see U.S. the we’re next the

Bryan Goldberg

the Great, My unsold follow-up sales as up you team another look that. time what global I update question XXXX you key thank the sponsorship us the most could you if said Or is the of now sponsorship category you way, them? show side. verticals on are which right on really sponsorship season? to the wondering side the as your everything I for was spending is for see guess business, from force

Greg Maffei

Well, potential said, – update we’ve I mean, I an mean, partners. three-page realistically update got as a yesterday. It’s got with engagement I I

– of I’ve we large terms there in been are array wouldn’t is Dubai of some of guess, would engagement ago. a Or at in areas that number a technology, out finance, point telecommunications, months Expo of and that obvious. few an really Caterpillar are have the sort there places have So, certainly then had industry, that I I obvious as said a oil and like array engagement, list place are being probably flat this probably in categories. them obvious

but we It’s where I us less probably we are think is some to feel and the terms tied behind to interest some think of – I getting it there do we are that little – the than story a thought probably but really slower time, so, we are to we’re think to sport going, the sponsorship. more momentum about do place good feel taking tell. the that engagement, historically but think obvious and the the So and getting we could we we I have been we’re we in

Bryan Goldberg

Thank you very much.

Operator

Goldman Drew Sachs. now Borst Please from next take question our from go will we ahead. And

Your open. line is

Drew Borst

there? contracts after you. terms anything it Is changed that, variable? with I’m is all fixed, these of fixed I Thank right, is more has wondering Or fixed? escalators. multiyear less in it Great, the the of race nothing about really One. promotion when think the ask you Chase, you. to come to new for Formula two expect Investors at five revenue year, you I a I look wanted renewed and thank question ones. calendar next added that has if have renewals guess, changed trajectory race races

Chase Carey

be today Certain races And interested, mature. it’s of think positive just to in in – I real long-term the positive. probably we in the the a individual there. ways, it we really – of world calendar I we I the that more I contract. there’s category. mean, many is elements the probably number places that think think – are are But probably feel continued do pretty demand that full a an that more think across upside upside have fact our about a again

think do do, limits how opportunities. there to there you we think So I are are much can but

We have couple. room pretty a is we still think but full It’s as do calendar, to XXXX full. there add a

issues a touched inherited we’re we’ve that reflecting couple of inherited – of we clearly value past on about we not of we the be. the races races think I are we think want couple a There as we long-term selectively will we races. probably year, just should what changed in add agreements but we and places that up will – this partnerships, end dropping

would are have races there, and maximize that I related – few customer So, I important I there is particularly two to we sort important we we that area where – there ago, would equally is that an like high-end the really of years events, probably The more And to it increasingly place expected at element. upside have I and more hospitality areas which than what is were these Paddock think something think is that. Club, think call growth, and than an about grow. we are there we of also is it’s guess a we guess I sort sort of continue if can have hospitality,

an I the well it side of think like basic as the upside as of to sponsors. got to agreements promoter dimensions a events hospitality we’ve just where are there and ability title lot add

still add but have We’re we you about fully still of more opportunity. advantage in title not we take sponsor area, opportunities things not races, like a – sponsorship fall as Vietnam the talked to

more related relationships promoter and I the an whole have a probably couple opportunity it that of ago. to the of is think there, have I elements would than thought we said So related upside think it promoter the more has the would arena years – in and area relationships

Drew Borst

get downside to like upside is while don’t I type Again, into appreciating know. of if any the don’t about scenario, you there want contracts And I risk, know generally, may, specifics to if the through, race the come any deals like attendance of for things? are or work? or really hinges not at serve And those attendance just the example, how that there didn’t is

Greg Maffei

I our variable. of today attendant is agreements Club mean, component Yes, Obviously, it the don’t that generally have of based. type Paddock

is that attendance is – is But base. part based. of it there So the attendance not generally certainly base revenue is

renewal and on where I see our like renewal, guess in, alternatives what exist. So, any you comes

there certainly aren’t to I’m say risks. So, going not

well that we number of pretty a the have. those feel of breadth from obviously in places of given months. XX reviews the array through we interest last executed; still get the got we rid went of to up Today, positioned we But

I got. a a – that we some of is advantage navigate race attendance making to in Club, feel or attendance race it’s a of the think generally the are kind calendar upside other Paddock forward not to part of that’s than ability look so, of general, or about our to some the And space I good substitutions that and a wouldn’t whether issues adding we’ve that is take But at fixing which agreements. say

Drew Borst

very much. you Okay. Thank

Operator

from question we Riley take go And from last B. Silver now ahead. will for FBR. today’s our Please call Zack

Your line is open.

Zach Silver

great. Okay, the for taking Thanks question.

that higher have guys issuing to also to never possibility economic And promote the teams you was a when still mechanisms alignment think the around your down FX, to beyond teams be I some but acquire obviously financial the curious shares the this around with first deal could there board? the happened, road? for price announced hear you thoughts talk

Charles Carey

Yes.

Obviously, we to it. where not opportunities point. relationship. the one real shared with teams go efforts this has can long-term try with I We’re more a are been we of and equity guess sport discussing discussing create generally, a about in growth vision the our the of at more to

actually see it’s sport. they zone. the we events. Again, think energy brought to the about events, The fan in faster whether growth that see things of breadth fan I or changes the a teams and positive the quite are the bigger They crowds.

share energy about with research I we we’re them is see where They the there think the that going. palpable.

with than they partner partners. been have would past with more they So, them share receive the in probably share that that obviously our certainly and them a shared fund in we in The is makes the prize business.

So they much share in of the engaging And a basis. mean, are upside race. them more meet growth them in regular we every it. with I I on the

sort what Saturday to just sure a sort any sharing we’re a meeting a exist. have when doing, the morning things that addressing we’re make of sharing to We casual of trying on we’re issues do

a breadth not growth they and lot better we create true largely be is business. we’re going bring the So do do just dealing we things I that think they want are think issues obviously believe perfect, a with I depth the through, always they day Nut There perspective. the alignment of dealing and day any sport. grow be and to doing all are And fresh and you in work doing how lot really a transparent and I way. – a a to in are with more a – collaborative and to to of is mindset should trying fresh adding of that’s how make and we them a going business more be – got we’re you to tough in to think them but

create them transparent way. bullet to an honest partners other engage and how you there’s – magic it’s alignment, like them So and no with than treat in do

Zach Silver

it. helpful. I if One That’s could. Got more

Okay.

view leverage term happen something could at the the OpCo in think you buybacks FX not? the tracker at target, can of end the on your about and you or this Just whether at FX, near the sort with low in talk that is the

Greg Maffei

you’re right. more the cash we going to we’ve that for have leverage we looking including to little a we discussed little up because target on going the time – the capital are will next do I’m think what generate and I at with get business that the that to test flow think I that. And we when have that that to payments to talk that restricted is share there from more and spend Investor us I about The bit Day, we week, might free alternatives on operating FX allowing start, think we repurchase. we HoldCo. punt And a

Zach Silver

Make Thank sense. both. you

Greg Maffei

line operator, say we to is Day, afternoon many It of Thanks And country. forward served all on have to to the veterans are good you. Veterans And will look again, that many of thanks Thank good who the and or seeing you we you. morning. our on next with week.

Chase Carey

Thanks a lot, guys.

Operator

Thank gentlemen, this conference your and call. Thank participation. Ladies today’s for you. concludes you

disconnect. now may You

Liberty Live (LLYVK) 11 Nov 192019 Q3 Earnings call transcript