FWONA - Earnings call transcript Q1 2020

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

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2020 Q1 Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we’ll conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, today May 7. to conference like to now would turn over the Mr. I Senior Chief of Portfolio Chun Vice Officer Courtnee and President Investor Relations. Please ma'am. go ahead,

Courtnee Chun

you. Thank

statement we recent could within and speak to includes including like Act of SEC. of Private forms begin, as in those risks that most XX-K the events of Reform statements our filed due Before any obligation call or to Actual date this Liberty number results Securities These XX-Q remind Litigation certain materially meaning uncertainties the everyone the statements disseminate XXXX. of or forward-looking and undertaking revisions Media only differ or disclaims the forward-looking and of with we'd call to mentioned this updates any expressly a statement any or including can available to today's placed. reconciliations and expectations change contained and Liberty Media's today, or reflect such press is for issued regard one conditions call, in measures will required website. SiriusXM events certain our the herein any in is to with which Schedules adjusted non-GAAP Liberty two definitions change thereto and financial any release discuss EBITDA. On we and found of on the any Media at circumstances which end earnings OIBDA on be The adjusted forward-looking

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

Greg Maffei

will Chief Chairman have Thank you Accounting One's we Wendling. and and good Brian Formula call, speaking morning. CEO the Officer, Chase Today and on Carey; Liberty's

safe. you are and say, me hope First all I let healthy

impressive done COVID management thank teams I'd this employees have our through managing to and like Second, crisis. job an and salute who

We've assets we call One the Media. We reattribution on since obviously and that. Nation our right April spoken Liberty SiriusXM the Group had Formula to on many XX. a you between and after this stake liabilities of of Now announcement Liberty and Live and completed to other conference

why reiterate benefit both like into but to go So, I this detail, equity was shareholders. I'd to won't a

reduced For with for Nation the SiriusXM, pure compelling Formula a liquidity. and tracker acquiring us debt and first, ample business additional liquidity the in Live SiriusXM resulting at Group, Formula a Liberty at complementary Group's One price creates interest with play; provided One

We the the All fees ads stocks reaction we are outperformed announcement. stock market made pleased with since. and have the since the

LSXM period reattribution, Turning shares. $XX the Liberty to shares including look-through million X we effectively reattributed Liberty SiriusXM the stock $X.XX February of and SiriusXM, including from that as the the SiriusXM acquired at repurchased part April a over this of XX bought price through shares

XX.X%. post June, April of nagging continue ownership The SiriusXM advantage of have I'd as and NAV Our to offering we to rights opportunity prior take again. stood repurchasing one look we XX will in LSXM we early stopped planned stock start close I to reattribution. is the But expect, of at an repurchases the discount note our that will of.

and As the approach wane. repurchase expect to I of SiriusXM, ownership SiriusXM continue may XX% stock opportunity we

grew XXXX. iconic of SiriusXM conceptual nearly a artists with great music XX,XXX including including Derek the and Jeter's show subscription-based innovative to plus which The our of been in credit strong And Prince Brady XX/X to have Now the revolving net XX.X It million COVID-XX-focused total with SiriusXM launched run program the channels channel subscribers. adds very has new resilient. like facility has created back has exclusive for still Prince and a during at never-before-heard Tom it flow radio channel billion Florida. content available a Channel through. have of crisis. cash model we Hotline, liquidity session COVID in from itself, SiriusXM limited shown innovative with continues including drawn. We very SiriusXM not has done on $X.XX looking proved new Self-pay two-hour House demo and a business at on Stern nine operate the has well Howard

Russell Group. past Turning you Netflix. all or Drive between Dubai of Charles little And of I'm epic calendar. with and are to talk the watched and thrilling have to years final both Survive to we come. the Leclerc. passed results expect seasons rewatching Formula FX and to a working more and on on sure team next-generation July going by Virtual all that. drivers, FX was They highlighted GP job win. early start taking There weekend. an and other has done missed Hopefully, each in The a navigating repassed about They you finally be the and Leclerc planning this next Albon One times taste Albon the the for the Austria Alex of will watching you've exciting crisis an great FX battle The XXXX Chase gotten several racing. Albon,

and continue the that find synergistic so. are think want assets to positioned opportunistic to we needs And add. we We well to definitely do the evaluate can be we business, of but

We in XX eager Braves' reunion live six players baseball are Zoom Turning to together. we return. celebration Snitker. does a were joined watch to FOX eager the results, working towards and Sports Game teams liquidity. XXXX medical with The Everyone to And on able and trainers', won't doing closely today, Nation. while actions how Braves they announced see build the working but are I a on taken It solution. we since season together pleased Live commissioner with on players on the how The with obviously the to Southeast. so final They've want Series Zoom too. of well. to put report also Major Brian I have market as Zoom years sessions see are been until the Fans manager we the XX after appreciate watching Baseball comment that YouTube not are title. staff the is the Braves, players League World to to can They've say, been

Brian to results. to financial over going So for it with our on more that I'm turn

Brian Wendling

Thank and Since Greg reattribution XX. we as of Group you, SiriusXM, a and One liquidity through that morning I'll as balances has discussed compliance good today, March XX Formula of April walk One the for the margin and earnings Formula Media, Libery as of and as Braves Greg release by forma on in debt two are of the repaid debt of covenants our Liberty March SiriusXM completed everyone. revolver March The and basis cash pro with all FX and the tracker these transactions. XX. in the

in the will positive excludes to time which SiriusXM reattribution respective call discussions and $XX $XXX million at we and capacity of spread loan level. cash comply as of lenders. the periods at in with Live X marked quarterly. On to their SiriusXM Given monitoring Nation the undrawn are of the pro the with the restricted are COVID-XX, impact restricted their excluding Group of value And liquid uncertain and ability the held of was May value investments at have margin Group the Braves billion, at Nation cash which SiriusXM $XXX of basis, FX Formula was forma be at Live debt corporate and a million Liberty of market valued The held Liberty stock covenants had their directly million, million cash, of $XXX $XX at SiriusXM. we held cash and attributed future and One

of billion, principal in allowable credit Group. the of One FX's includes in rights at of these quarter maximum which $XXX One Please corporate Total ratio credit at revolving million. ratios the debt billion, $X.X we and loan facilities these Total million on X.XX which $X.X Pro One SiriusXM debt is using six was of debt Group is debt of which Group, and cash as space intend loan covenant directly times current billion as which hand, in loan for business billion covenant One XX. defined of term billion compared have One forma attributed This are principal $X.X attributed Formula Formula of at May net-debt-to-covenant-OIBDA includes to is operating million leverage financial We holdings. Liberty its offering end to facility. $XXX repay held Today, leaving to Group level. This group Formula the leverage a not calculations SiriusXM. its of the level. the repaid debt on parent the full against excludes the One. with restoring and owed under intergroup at credit for facility from this balance amount $XXX billion was ratio excludes at One to had investments times the be Formula cash The term the amount $X.X at the Formula $XX.X FX will liquid the launch FX's proceeds $X.X for total expected Formula note fully of balance debt capacity revolving the repayment, maintenance. $XXX cash both for Formula not million

are RCF more the covenant the in RCF covenant maintenance from combined We revolver. gives under with positive Payment an of temporarily to move the flexibility discussions to with this lenders EBITDA liquidity having a based on base. reattribution us the renegotiating the

cash attributed Braves. over and million. Chase cash the With of group of amount One. it Braves million restricted and to At that, end Formula investments to to of Lastly debt principal I'll the liquid attributed turn had quarter $XXX $XXX discuss

Chase Carey

were significant the employees, best our adjusting reasons ready focusing constituents, biggest minute were One for global are Formula has that season with to related was race at XXXX entered for last and a COVID-XX. Australia, This long in the to We while We yet at responding had Brian. we're on with our the and event impact ways term. you, interests numerous Thank cancel One races. the for business Formula it in but great partners to necessary pandemic and of on XX the momentum and fans, ready

Let's we've the walk all through actions taken.

Motor was team's break during first and we the in the wanted race the ultimate have normal March support to March, the April the XXth taken flexibility to as extension May we Tuesday to On of the the a approved of to move and/or August. March, to June. up further break as actions months shutdown One April, summer to took summer FIA's of during Council period XX XX days a Sport World be of from

manufacture to and One teams come industry-wide This focus together During we season, deliver U.K.-based to respiratory U.K. inspired Formula need. support several larger to a Project were for the break of part devices is national this see the Pitlane. of

the the of rapidly engineering its and for team's the focused design, assembly. rapid These and the the One proven into Pitlane's majority efforts In and cars FX supporting being unique the teams XX technological cars been investing including to to XXXX delay by given regulations all that XXXX unanimously reduce and and their are this manufactured skilled test costs manufacture XXXX on until teams for breathing of need. be season. for ability prototype several for skills fruitful respond the We're a to have of time, is national further season. would This will XXXX usually challenges introduction has and in keep being teams, the when core initiatives, go-ahead existing grateful on produced aid Project agreed the plus technical two Mercedes. actions the has they and all ventilators of by FIA working the XXXX to Formula efforts at

business make issues the Formula technical, have as the that an it action regulations One, FIA created competition of the all and the further through healthier on teams future financial and with and improve strengthen COVID-XX. of work new and array we a working We long-term involved, to particularly will by the been sporting for track with

but of cap We've move a lower forward implemented a expect $XXX key significantly areas now cap. expenses. of with million of has focus to been on One cap team cost XXXX, previously the for the

cost of senior of made with teams April may cut froze in a these bit and time plans. hiring all over initiatives this our we like lose Just plans a executives on of year. plan deferred recognize our We some decisions evaluating implementing has structure. and XX% pay we our been voluntary pursue also of taking and review Formula a difficult We number in some pay. workforce One furloughed We Xst, to

current the felt warranted the uncertainties we However, actions.

leverage we're in Australia covenant. promoters the As remote since in XXXX, been a expect racing changes credit including of potential the together scenarios, and revolving mentioned, actively Brian due agree our supportive together possible through potential engaged no potential we working necessary the we're changes in and been navigate to race issues We've to to us putting with covenant facility enable to our very quarterly possibility XXXX to engaged as course. lenders to to related we actively calendar. with tirelessly identify our They've of address to work

hold we as currently two in of all We equipment have rice as not where all their are tracks explore our primary locations that determining a some to parties can for promoters, and calendar, and discussion all we XXXX race. Identifying options. necessary location We're transport how on the to our with we that challenges. ensure well

Our weekend weekend races in and goal XXth Austria the as of on of stages is and August the to July advanced the launch likely break. in Austria. September, traditional well. the It including during additional the Xth putting a together season in race that of XXth We're we is races July of European early schedule through Xth

XX We finishing with to the XX the September, in in Gulf Asia We will to in Abu and in hope Americas and December. – race then and plan a Bahrain Eurasia have November to in calendar in before races. October, Dhabi

the We to to races allow part latter expect of to to the the but without be early attend able fans part fans, year. be hope calendar the of in we

with to be working race operate to be experts hold and secure to want those location We to a feel procedures increasingly in positive authorities each are safely of housed number to individuals and local enable that about and and manner. the to the FIA, We locations and steps safe able would race necessary everyone year. determine the the other this transport and

and vary the on teams and process each races, other existing actively too. Motor reshuffle a Formula a country formal engaged front and will with World with We've issues allow FIA in of this stream the teams closely change we This all of amongst vote we're for was the Sport support. in as travel team's formally One. consent economics work Our and calendar, calendar the to ones agreements the related by The the progress. working with and without a fans work clearly are particularly to the been logistical will the this the Council appreciate from approved

Grand earlier. three excited Charles he The XX.X Stokes; as racing Then Codemasters Alex million. as postponed Gold rivalries With are U.K. joined game and including by and the The receiving Leclerc see Abraham, George Nicholas pivoted we Cricket Prix Formula reached Medalist, broadcasters one commentary. well official Twitch in winner Hoy value TV on and Russell, impressive. golfer, Giovinazzi, video Albon, we're on run The as and To U.S., visuals celebrities. our and provided experienced and digital have U.K. Nico Virtual first Formula by trended won Grand in have and They've to ESPN developed next a race weeks Hülkenberg. that races TV launched Olympic reached broadcast even Series PC FX musician, the Facebook professional strong Sports Marquee Jensen Antonio Charles YouTube, engagement. available Prix. channels a XXXX place One and Poulter; the season, new featuring is current in Lando World Prix Sky million, One estimates along drivers views viewership teams Johnnie Through debut series with the The and Sir such Formula well Cup new number One Button, Jr., Carlos Ian quickly postponement with just on as England's cumulative and Latifi lively a pleased three of the Norris, as been date, the total utilizes after we've to emerge. all of Formula Chris XX.X the Esports been the race and the YouTube number Ben of few. Liam Payne; Virtual game Grand the grid drivers Leclerc, have are One great races such Sainz every the six-time his name entertainment won These races official former

of which mid-season Gasly teams wet We the to more will second the switch the provided we Survive, and learned The response season to Red until of virtual with access about of of Germany with drivers. the scenes debuted to action driver on Bull race season. at also the to Albon drama and these end were GPs the to from challenging pleased season in at the the continue February. Netflix saw We We unprecedented return racing. Williams' Drive behind

as advanced March a We partner and long-term COVID-XX, season in discussions fuels, deal is and that and at the overlooked most X platforms. efficiencies and welcomed exposure may Formula sustainable are for includes area, to team in footage have capture engine in our and our as Commercial In Prixs this their on this been look we news Further welcome Aramco and end on XXXX identify to the February. forward We rights races at trackside for we ready Ben One. global XXXX. due he to title expertise team One. announced with in partnership global Pirelli managed Partnerships to Pincus alongside sponsorship to This Aramco Heineken, of worldwide enhanced from Grand Formula as technology. emerging and Heineken, to of advancement digital We Bem opportunities Emirates, where us partner new sharing joins our mobility DHL, Rolex. agreement three XX branding of Director our the sixth

we rights through media Bell with deal season. TSN the Canada the a distribution XXXX multiyear goes announced extension in and Media's the end On RDS, front, of which

to Our We've X.X two RDS across audiences partners in XX% partners, fan grow all and have These commercial and partners. viewers. Canada. Canadian sponsors networks broadcasters, supportive. season coverage other regular million The our base reached across TSN the been contact with nearly grew in and XXXX continues very year-over-year been almost

of any of contractual of everything the substantive number of on the are to expect calendar need is back issues number manner. related below issues to We to season had races, on the the when originally have XXXX provisions and have to long-term a related and we XXXX determine agreements These not We all burner planned in the crisis that been conversations. as promoters, races the to prioritize the resolve regarding as Agreement XX. Concorde short-term partners, potential the Concorde its first. them although, are to modified as turned number of in completing stages more we final decided put and with our well those conversations for our A valued Our straightforward fair coronavirus head. advanced addressing

XXXX we the and once support again changes calendar the time and completing no begin. will have the a dealing At in nature guarantees to of incredible will we return season. move Concorde great Obviously, with XXXX short-term looking there teams, same season. championship XXXX be with future. confident of racing enthusiasm and with finalize we're lot although the this beyond helped there long-term are provide to are increasingly the has coronavirus. a regarding been the uncertainty. we at immediate a that As The regulatory One still to forward the Agreement We're an we for uncertainty long-term year pent-up to stability Fan seems time, of Formula contractual also a

continue are for race discussions for well. We and potential new XXXX races or renewals going

discussions existing commercial or new We other also continue with partners.

be revised on the us. that of We for or forward return world we and look of the believe we're potential prior below to better were results a is coronavirus future would the significantly our on the return we we quickly and like months ago are future, our for all is projections XXXX. What of can through variables. without growth feel to impact extend positioned racing more we curve XXXX is to based this expectations have equally expectations, sensitivities many I XXXX At and importantly on clear that the can recognize beyond. will the in we original will well it everyone to business expect point, but a few into all but that with manage range XXXX clear broader with crisis results

to I'll Greg. it turn back Now

Greg Maffei

And your you up that, with we stay and and Thank operator, appreciate like in you for questions. healthy. thank listening interest continued the Chase safe hope and Media And open you, I'd Brian. to to Liberty audience, all

Operator

We'll Group. Pivotal question Thank our first you. take Jeff with Wlodarczak [Operator Instructions] from Research

Jeff Wlodarczak

but which cap wanted bumping the to against. a there you promoter one fees Charter going Hi. cap fans on I obviously, of Good are by correct can Chase. and are go to if then strong participating sponsorship you're is you After Chase, morning for more result like are over that if sort Charter's -- race yet do to your the hit where wrong racing work obviously guys. race tracks had focus Charter racing -- you to feel broadly on government? to I potentially management with XX% and Greg one I'm that continuing and ownership could aggressively shares. on When me to advertising retirement, or again aggressively share cap? decline provide allow retire effect they're the at and without fees? you very subsidized fee And And Charter, the you on paid color promoter had Thanks. the benefits in up you in fees to comfortable or materially, for you

Greg Maffei

I'll first. the Jeff, for So question. go thanks

And the how buckets, buckets it's we're counted. there's really our holdings what against clear First, are since the that cap. two it's be both not soon to not it's clear in -- up are

Secondly, that there come up we is some against until time purchase on that.

about to begun of interest had adjust some have to or discussions selling. the of we that, have not the in it's us Third, shareholders necessarily Charter because how Charter

how goes. that see So we'll

like to of of holders don't long-term in stock. sell position We certainly are We Charter be required want Charter. a We Charter. to being

Chase Carey

many ways. And more than front, fans races sponsorship a side I have my think, without significant guess broadcasting promoter clearly the much on impact the and on in side I

without Many screens in when the television, many a various actually digital watch television even racing a anyway. race. sponsorship on will for fans through at connect and ways I and side. fans broadcast all first The race live foremost watch think is people you platforms it

about involved. different we've clearly, clearly I It's being different fans very be and and fans reflected. a week-long rate terms these events track events, in the think the that. are event, without very very these that multi-day I involved, city talked different it's at the any of that, mean, of very recognize a the promoter -- spectacles, a Without will it's we side, different opportunity. of

unprecedented So, I think, situations. these are

I And so change there's the I significant think. with think promoters, a more

sponsors, season it broadcasters look a as they and do a as at the With whole.

I contracts have It's said, a As there are that to races. what below have. of number provisions we'd tied

But So, fans there. can we a we have We room quality we a some be those. make feel there. for think we deliver event can live great event won't but

And so again, significant significant the the be to more side. -- impact is going on promoter

Jeff Wlodarczak

Thanks.

Operator

go to Next, with Goldberg of America. we’ll Bank Bryan

Bryan Goldberg

had Thanks. Chase. I a couple for

demand color. of to this? of it more then the race weeks. But in to wondering more the without just Just as sports revenue or in any that a give complexities of mean long-term measures be in given potentially some ever. promoter some changes if I'm than work And expect follow-up fans changes the the -- on return, start all curious for either FX of a to could you mode I FX. could safe with on to a when to promoter the world a the secondly result you involved it's us contract last have And good lot several promoters undertake was to ensure marketers promoters starts do what triage event? even side model as I spectacle been looks just fans reopen a are both sponsorship content

on tone could just events or of the color more sponsorship now wondering around if market the as give us us such update Just yours? Thanks. right you

Chase Carey

mean in we're first be it's sponsors business the impact, mean kind or promoters I planned planning whether XXXX. to as I So, look we we on -- it long-term of

So, that's our expectation.

these expect events, we events largely European In fans. be of the now managing without to through terms right

that we're get personnel still So, the deal How do necessary I races. safe? race it to working country focusing and and the there that's working testing had European it's We're tentative We're different we with long through they're need parties this have but regulators. We're We on issues. with teams talking an fans. the our fairly with Austria procedures. actually without planning first do authorities. appropriate the secure host call a how dealing place array get there. procedures first because putting we morning transportation of conference with how obviously the We all with in

is So, headway we safe on in again fans what we races and that having I making think feel Europe. everybody can we're good for secure expect without which be

you made I yet. to -- get haven't it's that's headway made you probably those a discussions fans degree. probably tough have events really guidelines little schedule the don't we we've as because with some think as It's get much -- -- can't because to on we further into

to other to in through we what June figure I more October think this do do in fluid. traffic October, are so work they're to people can those can discussions what July. It's start they're right not have spacing them. of ways difficult now flows trying that's we what difficult But we it if because you you're if I in to November, to issue going trying has manage about authorities. little and and think -- visibility had and may talk with to is to to -- really you're out sort so discussions -- mean be possible terms and still September, September of

-- some stories I that July, So, pick you -- sure knows again probably we we're ones And as you it in since that the without think -- up in sort terms get making think fans of those. manage we'd possibility. places. and races with realistic be different and part -- the nobody what of degree races the in of I But they're they're issues the we planning fan in the to closer not not landscape have where August, in races forward are to can get is the different go would we'll a how are that

of today, that at look places public have you China array up they're As an gatherings. opening

So, I of situation go clearly we'll this you week-to-week a is terms crowds more you think know where as forward. larger in dealing with

much real-time it's very process. up a managing so And

sponsors to races ways a how is, the great. they sponsors conversation In know been in have about all. we we terms what it's -- agreements. calendar the been many their They we've modify tough title with Look, their them what substantive they've to of have think components in races. have that Until touch I do all

why better is sort and not to speed. about up we been this keeping could mostly got we've feel enthusiasm from So, the the support we've of them them. Again,

many impact and when small -- dealing sponsorship. but our sponsors in not talks not first well we -- ways global business. It's -- everybody you real foremost our companies with -- big that's I I in where think the core think about coronavirus? like think are Reality, clearly the don't we're is they're

relationship are a and that get looking big brands, know how to just they business to it out figure was. back future as Our they do entities have

are more our we So, as advancing XXXX And sponsors with we to quite enthusiastic know calendar. forward our discussions them specifics about look again supportive. quite the of

Bryan Goldberg

very Thank you much.

Operator

we'll our next take Kraft from question And Deutsche with Bank. Bryan

Bryan Kraft

questions then get the to -- years, ownership a Liberty Nation that to Hi. I you make an for the first to I you now have of Greg. guess value a your RMT two XX% there Liberty up inside Live keep consider particularly have to is in stake, strategically scenario is on second or Media the of And forma the or pro question been smaller few umbrella? is is Sirius. critical underneath than it's that where

or tax you the change trading between relative because suspect that there SiriusXM get at a that narrow XX%. of to discount you that to to once in allocation once you Is or mentioned shares capital threshold? might get that You consolidation be liquidity XX% the NAV

Greg Maffei

don't to reasons to spun would that. I think the capture reattribution this that that Live XX% first we use together LSXM the are and RMT of over there want of we think ways will to use and think able it's the and Sirius with stock. the capital is on we for our benefit one is be long-term Brian, would RMT, both. Nation And priority think work I And why strategic you don't do would I an our one So, did would we we the need ownership now things to use the with end discount -- shareholders the at right To questions. thank up company. the after go of the for to

a you drive the will at can LSXM make think the the for why the is willing right while don't capital mathematically potential more probably Yes, we lot value sits want it's On and have RMT ideas which of dividends I it. attractive for look to all gap us to if the a easier is consider at push capital today I you'll of think margin dividends what the with -- Sirius, stock other to for is see you would flow free we that put an to to more things SXM require you're factor including not XX%? up of do to So, or and and relative where it reach particularly of still up on mentioned LSXM. the purchase

Bryan Kraft

follow-up. the Great. the And exclusion maybe just Can the you're once today, received be one tax would what dividends you on dividends rate quantify the getting? that

Greg Maffei

the are line? you Albert on

Albert Rosenthaler

I am.

X%. it's X% roughly So to

low. pretty it's So

Greg Maffei

to you, want I Albert. to say the get that, but authority Thank to going verify. was I

Bryan Kraft

always You bless Albert it. to want

Greg Maffei

blesses Thank goodness. Albert Yes. everything.

Bryan Kraft

Thanks, Albert. Greg, thanks,

Operator

we'll to Evercore. Vijay Next Jayant go with

Vijay Jayant

Thanks.

Chase of So questions. couple

schedule the typically new of is January? XXXX, you're starts December sort of but XX know in March. targeting end to get you obviously, or calendar, to I So for the season the could a race move

season trouble. no One until teams, something or you that Have bankrolling fund or to in probably on been So One, at would commitments more do? at on there's meet liquidity obviously working basically lot second, your been reattribution. be Formula a subsidizing sort same are time that looking of all with your sort we try teams and December the some approached the of of And And the contractual starts? XX is Formula prize at post them And requirements may also? capital these

Chase Carey

targeted first, consider. so So But right December XXth like more in we sort we -- of later plan our think and now has current I on the in XXth, original plan us will the than are the December evaluating December. finishing -- of

So could certainly that. can do January in that. finishing option. is an We do We

we'd finish can, We'd a the in December. we break long if like think holidays. fairly take obviously to to I have through

the it a parties us it is that through work in of and holiday going to to an about. there. mid-December through available to But But sort than an not have weeks. finish get to with array say later our and I'd of goal is couple You're option we'd race of But promoters considered work to again we've to something holidays. again is finish date, ahead point at in of but this original weeks talked the our our

started results, terms what in can are about everybody think going I I of what And expected up. and we think as the to going to year. are for parts. not not us there doing. we move we're when started we the I as teams shore moving to we're talked to what when many too going ,XXXX initiatives, I doing the teams forward or they And said cost-cutting to have year obviously can have the have and the now we Right it be the is solidify is

there's -- not many address to it's we're you to I think So of what don't -- got constructive -- try so can it. ifs. you to parts

along where to these need enough get at. we think in we're I know far plans to

get taking the to the be through them We expect right initiatives it. teams to

degree teams. teams, to those the to as at we what think get us to date. to one there's the speculation help but the XXXX. get on support we was back to committed at to need -- I -- we're manage select need the this beginning certainly through XXXX we get that's have care We -- And when all had of goal point discussions priority this ways ways on is year and is -- more possible. as just of many we've What year it best track in that's for what on many not are and recognize been about our to to do

think things along. as with parts where see engage are to we'll are we right think really many But there on go I moving now too I any that. specificity

Vijay Jayant

Thank you.

Operator

Now from take question with Morgan Stanley. a we'll Swinburne Ben

Ben Swinburne

on is we races Chase any revenues fees there's your race you the Hi, Formula on One. the if year at look fans that's for Can impact goal, like like give Greg. dimensionalize used to a I'm at lower, ask least this to call close ago race relative for it's And what discussion. about And later normal. seem promotion way then the with your assume Liberty Liberty? you year but It be just any Greg wanted what you as a there would race this will with wondering that. to of to calendar, on just a weeks XX XX sense continuing I if promotion, have consider us would mentioned this sponsorship comment pretty the any good to to just morning. cash original couple you made expectations? I

back that the I at holdco at think the restrictions benefits know on the Thanks. the there's any don't if of potentially used should about? forth and moving you be thinking opco? word liquidity potentially I and opco sort we cash

Chase Carey

on promotion whether So titles. it's more sort signage on time the to of promotion, obligations is screen probably tied

feel plans our way -- meeting to this long But I and they're some core, -- Clearly on without their certainly some. want before races some So puts XX are issues material think -- towards its would the the a at we way the at it's sponsors margins. have goes a excess hospitality level. Obviously, whether we sport be to that it. year. we've our go races pressure have number we at at think towards as we through exist to we've capacity long capacity. that manage excess There's We're capacity, of I excess can through what go it said won't race got the down. raising gaining

I to meet to value. our sit We'll about we these end would what long-term. partners. And as are want approach day equally, these are receive to expectations of good our we will working we If We to forward. are But the deliver relationships. fair path deliver are the fair long-term sponsors. we do. a an obligation Most relationships. of achieve So mean it, at what we find -- we certain I it. feel them think think value the sponsors of for down expect have we and But But partners it as

the selling I it get fans, terms to the probably the buying now be There to nobody aren't uncertainties. of a held norm. that has really uncertainties in think to are schedule spring that and get given moved much cases. has on Right closer does at That different with as the the obviously tickets and the our given and selling of implications promoters business going race a lot ones tickets is the Is was the certainly probably promoters in tickets to even you like. most fall? of

fans? But there races that sort question to it, is out race I agreements way have engage with everything these it get long-term So around or I we to XXXX we with all race things is again are And have yes with place, of think with exists guess, with not not a the business -- think those also we usual. -- fans. in it's as conditions we fans know but approach as it's -- the fans it's the is, I think partners. So you I certain on. those not you But have it degree we

very in XXXX we the in the support we've or value, addressing to it's fair four fans partners, one-time sure us. And indeed really future first And months think ago. the can from foremost, fair in months fair and want and a -- to for -- enable to we're managing to get and We there. they've four have we've to business expected great it expected the what same the support, us be interest get to expect short in is event interest the the be this. whether got support through back ago We support but the XXXX, this supportive. been got, all We strength we We like look want and the make looking them. have

like back. the events I of ours, think impacts, I I there strength be lasting will fans but come won't think, think some

of will than ours I have a partners in in to rise strength. have a like continue seem if degree you to And, we supportive shakeout type more the economy. events ever, of think even be I think, the

and to priority will a kind We're we it's sure, to as things hardball. expect sponsors, to year. four candy we with making promoters with the so get deal value to with again, like fairly. of we're play not out business giveaways, is We're expected with partners, handing be but everybody. So, going But, expectation adults be to fair again, the to to that treated knew teams this months going whether going or be deal going to all to as not certainly the going in to, XXXX or But ago. we're it going look we're

Ben Swinburne

Thank you. that anything language? Greg, on

Greg Maffei

on circumstances no -- your There opco. Because the holdco. certain just down pushing restrictions language about what or under There money to up are holdco to restrictions part. down, the be opco [Indiscernible] the and sure for can are language money one not up the I'm sorry. pushing

Ben Swinburne

Got you it. Thank

Operator

right. All

Zack Silver Next from with question Riley. B. comes

Zack Silver

the question. right. Thanks All for Great. taking

one a ecosystem first potentially Chase, The And to the TV COVID. for pay for XXXX global you being year not is certainly, talked about broadcast big renewals. immune

and you their about what ability -- some I deals parties. So those curious a of us for sense TV a with attractive give at to whether of is I'm health health can guess of partners you both terms pay the guys renew

Chase Carey

is in everything of Yes. increased of or which short that very on the digital this sort discussions, sort in back I wider to winners in term. short and mean, platforms are on the of the -- burner put lot people the through a really think, has digital many as great of mean, -- these the pay term, of be TV, pay I ways, if universe, TV -- will we're value become universe about through navigating period few bit Look, come content array importance, are this. platforms. talk gotten you one seems part a of obviously, a increased I

with have to them. discussions continuing we're So

bit is, visibility everybody like more are strong to nature content, we've it mostly ever. and six means event in really the but really businesses. to very around realistically what going things be what discussions I platforms as think impact of dealing unique a term, of We're occurred. ours with Clearly, whatever the content What a the the this the content, six months, look I themes I like small month, short unique again which is had towards like that varies space. the three I weeks since you. But value about feel would global deal think sports But months, a we the not to in sports world, as good little they're seems have we about big think interest, everybody entities. think to have with last is

expect them come We to through this.

But entities their are are ads. to it, looking I then ads are think, probably businesses side, that leaned think advertising type I the think support subscriber be and advertising has of be in the back if leaning I again will matter. product. world by the supporting and the the think advertise I buy The subscriptions that because sports, of sports come certainly anything the sports to that more subscriber ones back, anxious -- come to side, on impacted seems subscriber generally to sports more the sort heavily

Zack Silver

you for the then, or disclosed couple in you Greg you helpful. That's guys ago, it. weeks And for of release Got with a reattribution were announcement missed paying but Chase, if apologies and this, that the on? there going balance we And read lenders? anything down with valuations you're in regarding for managing the burn when any are implications having that remaining revolver cash should also, into your Is today. confidence talks that Brian, the

Greg Maffei

of position the at One the for happy need. in have And of We'd well need had not and that. drawn to a reattribution. now in cash that on I'm here Yes. it [ph] in the Group. surfeit certainly confidence that we comment. we money have we prior to we're revolver Laurel caution the extra as then Look, don't interim We Formula And Baldi a we drawn didn't lot money in need our that obviously the today.

than a negative run the borrowings, money on rather that paid down. spread So we've

on at to fruitful less least Laurel, revolver. would we'll but We it's are And not which with have likely to measure down add liquidity. on that the the based a of be are anything? lenders, successful discussions time think of confidence period our or I in pay you covenants -- some for EBITDA,

Chase Carey

No.

covered You've it.

Zack Silver

it. Thanks, Greg. Got

Operator

right. All

with Gabelli. from question Next John comes Tinker

John Tinker

see the and about already that secondly, now spectators? because the playing impact that games and is actually that's was of talk Taiwan. of just down? you retail. battery Thanks. closed And Could having you might not how about little you Could HI. going and talk development baseball? Korea everything started in how up revenue bit I go And they've a given think

Greg Maffei

I not it following Korean come there embraced forward Yes. to guess, to domestic Korean I for people I'm and at our waiting watch are On are still who League. primers leagues how to with yet lead LMC. now baseball, the and fully. And the there on new interest have watch

issues some creditor I payments not late resolved, be appears there as spring I have but most June range most while think nothing concepts of what bubble they're likely the training, the said, agreements about the resolved players. their -- to be which is will at July opportunities, There things, still likely it start a looking, the without to are own but about There early were fans. will be I rata there that comment splits the If still fans are. paying them negotiations streams are $XXX what idea any the need the about these not attending of be fans that. $XXX of would for reduced But million and attending. then sort looking there of to some be at were on pro obviously can't million. on, with things are some and a based revenue

Chase Carey

line My dead. Chase. It's, went

back called just Sorry. I in.

Greg Maffei

even rata I on determined And parties there's think, profitability, But think able if one worked not to games through. about -- so the positive certainly some present a fans expectation sec. and and that's get in Great, is talking on I have attitude impact have are positive be which fans. to will then, try not obviously pro if early all basis, we we're to will baseball that for But the John resolution. a

drop make commentary, have to I We addition to a in there's at if you obviously don't in Brian, battery. had the know major that. any activity want

Brian Wendling

we parking just their really have we the where to some go extent we could none we're would not have trying up. fans but To overly we there. tenants which to would to obviously of whole work a there But showing to and fans I extent in therefore say have can't on these to either. through our don't be work and specifics down the translates But No. comment gains. material with appropriate. Media us. having trying we're don't businesses to to also, impacts them And And material are with brands there revenue that Liberty the as we're how

John Tinker

Thanks.

Operator

Next comes JPMorgan. question with from Karnovsky David

David Karnovsky

taking for Thanks question. my

the prepared Thanks. looking mentioned, to has One the One synergistic Just sport, completed maybe a Agreement, there Formula mainly extend in at move prior just be first I some this a be even And live into Could bit season? other categories? short to agreement something on, Concorde motor for focused the instead then for that think you on event or to Chase think, is for if Group, expand you Greg, your XXXX period? sports, for little could this. I it Formula could wondering on or remarks Would extend assets existing

Chase Carey

We mean, I – sorry. the agreement, actually can on the Concorde the is the with of are sign reality just these can get just the them. with XXXX. I'm -- we this guess, exists. that Concorde unilaterally once you on where I rules structure These XXXX to is road the

will put teams. the Agreement that. into effect which if that essentially we are But the unilaterally Concorde have say we're be Concorde to extend that's the with forth, looking to goes not XXXX. in to anything. racing and you're And -- you're we implement Agreement, it it don't that's We do So terms -- we Obviously, when racing. can the on able conclude that's

Greg Maffei

We got sure, make a we you Can there. minute. a lost question Wait repeat, it? just to

David Karnovsky

I the was The me? question just Am No. you on Yeah. still -- hear line? can

Greg Maffei

line. Yeah, Go I we you the Yeah. got am ahead. sorry. on

David Karnovsky

was remarks your question looking mentioned, Yeah. you I The at just synergistic on, assets... think prepared

Greg Maffei

sorry. Synergistic or -- I'm

I sure heard… what making of Just

David Karnovsky

yeah, Yeah, just if would go this wanted ahead. -- know, to

Greg Maffei

goal continue have look we around the FX, we to Look, unbelievable try there But when motor around sports provide if at our towards saw Yeah. where sports motor is that One, our One ecosystem have business I are and things been look some at. synergistic value. of outside -- want space to the create ones we looked us at One we synergistic create that for Formula we've focused are a sure. that. is that Formula operating things the in was have traded We'll assets can Formula don't that that to and opportunity goal

So that priority. would be our first

David Karnovsky

you. Thank

Operator

Okay.

LightShed with to go Brandon Ross we'll Next, Partners.

Brandon Ross

Good Thanks. morning.

they're then tracker the couldn't up to For just in tracker be closely now for opens rationales same opportunities, explain the before work what under is Sirius what and do Live is you of umbrella you you could influences, LSXM putting the together. the do one and And reasonable Greg, Can structure more Nation that, to could for that you it Live Nations do Chase, now races why it assume Thanks. that at in can for XXXX? you XX operationally? just

Greg Maffei

do alignment is to answer potential Well, on together structurally enhanced together and working prohibited Brandon on that Rapino to continued interactions I is question like there's the putting you tracker. same think, further was that, that Michael think permitted. the the know by I SiriusXM now bringing that doing before continued things being nothing Board for them that But

Chase Carey

realistically races would in enhancement And we XXXX expect positive potential the January. is looking don't like, goal But that And to XXXX with in XXXX our simple we number. But shareholders. the and we – we ultimately, XXXX discussions answer back place to new said, at fans January. I the magic think have look I've like renewals ongoing were have in expect put we we -- we of I the have planned answer XXXX. we is to yes. have a XXXX, mean, a again, be we mean our We have XXXX a as business for expect look to and -- yes, some couple

magic so again we XXXX, number planning -- planning the we'd still if XXXX And don't XX on but we'd plan certainly, we on then races. be races be on XXXX have

Brandon Ross

Thank you, guys.

Operator

our take last Sachs. Drew Borst we'll Goldman and from question right with All

Drew Borst

a had for of questions, Thank couple you. Chase. I

to for I fund ask wanted prize this year. Firstly, the about,

are variable, usually lot intention in you of EBITDA. at Is sort first course the it's or think be normal a question. like lower? to because a bit PTS it intending EBITDA seem is likely it would That's I keep deal PTS to to variable some component a fixed higher have the to little maybe

Chase Carey

formula. So, the is contractual again, a price point

couldn't what we it it realistically is fund We prize if can't we chose. -- the So -- unilaterally is. we change

have profits percentage is it's until we be know the think part The a to lot in defined do Again, is question of teams? makes that a the will everybody. the which that of not to but what still a of we I I something? percentage guess partners a way down. that but prize really EBITDA. a sense the since by want we means we question So parts. know profits is said, will is, what support forward level we moving was question And think, of it a the guess being I to I our And with prize as engage that and is is, do down something how expand of we obviously, -- earlier would don't do move in EBITDA would and next to the -- be that we But we for we'll we figure to fund handouts, we're contract certain all out in go that business I itself

As I talked before, fans have how haven't we calendar. the know settled don't We many races.

wide at fund. outcomes So of potential a ultimate this have the range we'd point, on prize

fairly. if partners. other we right of think them to or we'll again or the us and to to better expect be anything us on But with team handle see them with it's where fairly with are with or we it's for have our whether when with and do deal see dealt that, expect I a we any appropriate

Drew Borst

just teams? the if budget that $XXX million. the small big down one-time Is something reduction, more basis? that's it the the cap is mentioned think that beyond creating And little coming earlier or about tension be permanent, And you on then permanent and is you the will bit idea go-forward new probably a some that a between the a new is

Chase Carey

place I call is long-term what a it cost cap, a I'd putting mean, construct. certainly we're in is

it they spend a challenges of the teams tension. creates fact It's manage for go don't that number I back long-term. is right the and to that there to to think, to are significantly not construct bring to And through obviously it have a respect it's down cap. get So the I that It think up. will creates, that have respect more and

been -- action the to it. all we improved that healthier think agreed -- driven goals in for helps intent better cap drove I were XX competition, and teams improve the have cap, the The everybody a of were business which achieve the cap was that. different. They've that

complicated As put been than to sport up different U.S. where I add the about much have the the a more salaries. said just It's all a cap along, specifics. sports in there you into well, thoughts team

all of the moving that -- and here of technology got you've out parts of the the all the sport. engineering You've sport the come got

And so is better does everybody make goals changes been and the on it. -- than share for that how get agreement be cap discussion broad-based cap there the make it implement goals the there's significant goal and have that help have probably you unanimous that and the pressures fans to of in more to all that the are think we cap. But that those teams to I'm the And sure sport will we I cap again, sense. makes will

Drew Borst

much. you very Thank

Greg Maffei

we're you we interest done speaking And continued operator and you questions our Liberty in think to not sooner. to with audience Media. the for Thank quarter So forward today. next with if I very much. your again listening Thanks look

Chase Carey

Thanks a lot.

Operator

conclude their does conference. And participation. that for We everyone today's again thank

Liberty Live (LLYVK) 10 May 202020 Q1 Earnings call transcript