Earnings call transcript Q4 2022

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Operator

Welcome to the Liberty Media 2022 Year-End Conference 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 will be recorded today, March 1.

I would now like to turn the call over to Shane Kleinstein, Vice President, Investor Relations. ahead. go Please

Shane Kleinstein

morning. Good Thank you.

events Before the including we call of everyone this most XX-K of XXXX. to Private due Form differ to recent a mentioned we'd certain forward-looking in like number Actual of includes Act meaning and Litigation remind results statements could Securities materially SEC. uncertainties that risks Reform begin, with or those within the Media's filed the Liberty

Liberty the based. forward-looking or disclaims any Media Media's on statements or statements change thereto call. any speak reflect of These Liberty statement to revisions updates change with to any circumstances forward-looking expressly which such of obligation any date in undertaking as any or contained events, any herein regard or is expectations in this only disseminate to conditions

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

I'd and CEO. Liberty like Maffei, President to Now introduce Greg

Gregory Maffei

we of One's and Thank good and morning the to Accounting and have President Chief Liberty's Brian also Today you, speaking Officer, on all call, Wendling. and CEO, Shane, Domenicali; will Formula you. Stefano Financial Principal

an still second the Life quarter. of split-off on the expect with the the and update filed Tracker. We Liberty me creation the and completion start of First, amended let Braves S-X in we

to me Liberty turn XM. Let Sirius

we of in of simplified Liberty the rationalizing this near-term. creation structure LSXM the will are we We on have recapitalization a following focused expect Life Tracker, and the and structure

give underlying the fourth and experiencing cautious with in asset, we're here more the high did forward-looking early low record quarter SiriusXM, XXXX. part ARPU results churn. given commentary headwinds strong Management at multiple Looking EBITDA and record reported of

The has SAAR seeing first is $XX.X new spend the impacts. something ahead had the pressured marketing Plus million quarter half the in XXXX especially ad revamp. $XX fourth remains in to are app some still terms in and as dropped soft, of funnel last from we moderating of market top like year. subscribers we've XXXX, about cash The of of million the

We XXXX, expect peak satellite previously we CapEx which fit. now taxpayer, had something and are not in a we

XXXX We these no incremental in do by CapEx CapEx end moderate satellite by with expect will the of satellite incremental the year. XXXX nearly

stepping long-term also We up for success. are investments some tech

will commerce meaning more these market remain are in identity within have improvements XXXL. longer-term optimistic our to has reduce we and resilient free business turn, the We flow, We cash model it around with personalization do a as we will the new so SAAR about the building prospects. and friction, expect and still have ad app and trends negative

to Turning Nation. Live

demand. to see was attendance XX% We incredible over continue up XXXX. XXXX

are international We still were many net and year. XX% we despite international in attendance at XXXX strong with We've tickets concert sold markets new especially to markets the of an part during being in last seen COVID. demand were for of all-time that clients of high XXXX XX% from same are last the versus sales periods year. rescheduled XXXX. of record expect prior million tickets time also Ticket it year another due XX closed from year, to in benefited And up

up XXXX the Formula XX% were XXXX. attendance into year, were right Group, One records over set, we

drive last FX globally been base. in share new it's base. Jimmy started to three pages, One the like Kimmel. to and of most four in the the two. on at drivers is than Survive, the even across of our result preference in in being females the them This fans comedy social in years The Our many and a efforts to driver U.S. on only efforts the -- larger especially not the base the but fan of fan coverage all channels, access That's people younger, share use established with Drive one is fan the new larger diverse fan strong. related increasing base our is U.S., in appearances late-night within higher fans to following XX% publications,

interesting pretty younger has Tom look mentality Doncic FX is it's well. XX to And million at Lewis into million comparing almost the clearly at doing and we're XX.X example, million. XX.X our note, Instagram million. of and And has for looking followers is talent, at at (ph), Leclerc getting Hamilton the versus Luka X Again, GOATS America. Brady

XXXX, several improvements in U.S. capitalizing security. year races hospitality and Miami, on of have the will first We around the second year with three success

for expect XXXX. And we the launched FX are the We GP. September over inaugural social XXX media impressions to X since we and Las as super Las million TikTok over of Vegas be Vegas weekend. million excited engagements sporting last garnered world LBGP

hours. The in views first post over XX had the first XXX,XXX

had the our sales, led concessions ticket League XX% with the tickets turn that in our we retail. sponsorship, experienced will being growth World tailwinds better Baseball the believe XXXX to and Braves. on post-season revenue though me from We the inventory Major sold baseball million less of Braves. capitalizing and Series split-off gains, of grew We year-over-year reiterate even We the win. We X.X we across Let value had XXXX sold. highlight

and and adding core them office, in is remains built This for we multiyear Baseball and is team Report season agree. extend deals. off-season, through locking success smartly already Bleacher the XXXX much the up Manager very for and on one to to opener invested young happy Brian the We positioned for Major we talent by high forward XX. number long-term the season. for And to the on single-ticket League tend to XXXX Anthopoulos talent have GM Alex Braves March the look season, Demand Snitker the in we were called in ticket the XXXX. front

financial talk more little to our to it over Brian bit And let a about that, with me turn results.

Brian Wendling

had a $X.X at quarter Group liquid billion of loans. SiriusXM margin and morning, at our Thank related $XX Live $XXX and investments level of also and There's SiriusXM undrawn million held end, attributed which Nation cash Liberty loan everybody. the to margin capacity approximately of SiriusXM. million, cash excludes At you, parent Greg, good

As Liberty held was $XX.X billion. of SiriusXM Group SiriusXM February stock value our $X interest the at and was the XX, Nation value the billion, of of Live

$X.X billion is debt the billion have down against We holdings. SiriusXM $X.X Liberty debt these debt that's amount includes of Group amount attributed billion, of at in principal principal which of level. SiriusXM $XX.X Total

Group One at $X.X Formula debt cash, principal attributed at includes billion includes $X.X Total quarter million One of end, monetizable holdings level. at public Group and $XXX attributed One. of of had $X the billion One leaving billion, Formula $XXX the which investments level, liquid was at amount of cash corporate down Formula Formula and this debt million

the an During connection and extended B its FX hand. of undrawn. attractive million this One's quarter, Formula at refinanced is million year with on in FX rates revolver $XXX term end, And repaid term cash $XXX refinancing, its and revolver maturity. loan at loan using

Formula leverage One's at year times. the of was the end X.X

experiences XXXX best this a $XXX with business, freight. basis. year-over-year revenue hospitality grew from XX% Other and that annual $XXX $XX operating rate revenue given the or growth coming calendar, reminder FX the increased of coming variability XX% in on Total million primary with analyzed an in is approximately approximately revenue grew quarterly business all revenue the million and FX across million streams. growth from On

of a payments XXXX -- from as XXXX, Concorde team as in from the OIBDA the was prior the of Team benefiting percent terms the XX% pre-team reported XX% the in agreement. down year,

relate As margins both a revenue revenue FX significant the revenue compression year increased air to charter other and in are to revenue primary our One nature driven XX% additional and other well cost freight hospitality in reminder, opportunities. costs of of XX% as with from during Other cost Primarily of of variable total total costs in increased offerings. servicing XXXX as Formula in by XXXX. inflation largely

SG&A total historical XXXX. as in percent averages with was a revenue in of basically line

personnel some related and based we mostly $XX to As of company's program included the the long-term did initiatives. headcount to due LTIP have Prix, Las change in from in cash XXXX Vegas marketing costs to modest personnel from a growth. QX, increased Also support in was increases stock bonus in SG&A costs Grand in and to a mentioned million the

XXXX, XX flyaway to at The 'XX a calendar. forward races to compared record rates look will races Looking in we calendar XX XXXX. flyaway of consist

we've typically expect on discussed communicated, flyaway And pay approaching European As races before, higher than races. previously fees Las million. total $XXX revenue as the we Vegas,

economics, is of the specific the in of to all Vegas projected profit total in at terms year in be company. one to rate races top total Looking five

incurred March. FX the corporate the at X. by CapEx CapEx and and to progressing concrete the Hepatic of track-related of Opco structure building Hepatic at Formula will (ph) the The from be is end level. level, (ph) because separate corporate year-round building be the spend be CapEx activations One building is will primarily schedule, Formula expected to related incurred of majority incurred level will hepatic at will be the completed be on our

allocation numbers We and to between but corporate providing get our be as in see FX reported. will Opco they not a CapEx, One you'll historical forward-looking able Formula it be

consolidation. corporate pay statements period, our at rent up of Formula will use the out which and building raise to eliminate show will corporate Opco will but during level financial revenue One in One LBGP the fees other for the Formula the of in as

expect advanced sales payments the working receipt first of ticket in of to year the primarily also the capital year-over-year to We race. flows impact and comparability related Vegas

takes well all to rates as revenue will in primary tickets Nearly fourth GA recognized revenue, the expect sponsorship sponsorship when We'd and in recognized as be revenue FX and the grandstand rate revenue respectively. promotion as quarter be LBGP place.

On also cost other rate FX the expect We to takes rates place recognized we recognized related of majority revenue. be be of tickets cost as expect will One Formula costs revenue. within recognition, the when vast hospitality the

will incurred throughout XXXX. first the So some of there quarters few be SG&A

and the Liberty the attributed Group $XXX amount our are year. consolidated Braves investments excludes of liquid end, quarter $XX cash debt Braves $XXX Group cash. restricted subsidiaries end attributed at they of their of which of covenants million, at end. and the at at compliance debt in had million principal million with Finally, had of quarter

with One. And to Formula Stefano I'll discuss it that, turn to over

Stefano Domenicali

the Brian. place. And broke wins season. with Alpine the a [indiscernible] fantastic for down commercially last partners on with the track, most The won their Maxwell's XX race in XXXX XXXX. results. single and Constructor top our fourth team wins Championship first both Red records financially battle was competition McLaren without season in a tightened since our to Thanks, Bull and and

the fans some the during million action in X.X attendance raise great XX% season regulation meant raise sellout more record XXXX than Demand a to The it show Grand made fan welcomed Prix we crowd could feedback is and events. our track. We results fueled drivers XXXX. XXXX continuing races to closely, The weekend, number engagements. of This cars the of that from clear. saw with at new on up more compared decisions. expected growing

Formal in on social One was major the sports the league again once media terms planet of in XXXX followers. fastest-growing

and XX% to growth total like were up social We the versus million followers, XX% from X.X have million. markets XX.X where XXXX XXXX U.S. saw followers significant up in

XX% Additionally, up XXXX and were across fX.com XXX the users to million. unit FX app, versus

viewership XXXX average days. X.X X.XX to for was XX viewers average compared on in season an an On TV was cumulative raise viewership audiences of viewership the XXXX raise up with million. tuning million XX% billion, U.S. was

Germany some grew viewership markets. Italy and XX% other was XX%. up viewership at Looking grew X%. Australia to

demographic, younger XX% video XXXX. share consumed the in in grew With newer of our to from XX% XXXX digital minutes FX

of a As in XXXX sustainability and relevance growing new return partnership announced efforts, an technological FX to FX with popularity, the Bull. global Red from endorsement Ford

Motor most in with the getting history FX storied the Sport name successful and celebrated engine in a is FX into 'XXs, third (ph) manufacture a are back Ford they history.

value involvement a the Bull, not provider Ford engine as Red to expect but sport. technical to bring will We only

engagement revenue The growing renewed and has FX promotion, primary right both sources: fan across advertising commercial and media sponsorship. grew all benefited new agreements. and

enhance welcomed product its XX,XXX events. focused of guests are experience season Club first the season operations to we performed premium over Club in of XXXX, guest our onset Paddock the of pandemic. pricing. services the the since In well sellout optimizing XX continue adjusting value we up XXXX, the Paddock We by and out with expanding full the addition, XX of on In hospitality especially offer, our

Dutch XXXX, a bike admission major promoter with in commercial On general The the to we agreements our sold XXXX and We U.S. by recent ticket our including Sky, large the on has a European agreements. signed on updates throughout ESPN in foot. broadcast 'XX travel extended XXXX, on arriving with public from renewing markets is race our focused Turning already XX% holdage [indiscernible] and number of Prix with XXXX promotion, transportation, of or sustainability and Grand partnership from out.

media Sports More Asia. BeIN recently, agreement FX multiyear across with territories broadcast rights we into XX entered a to in exclusively

Our Mexico in XXXX. FOX Sport through was agreement extended

XXXX. We heritage Japan also XXXX available with and fans. Sports and partnership to agreement TV through XXXX. among popularity And our FX in in renewed is product in our now Belgium for with Play DAZN The new XXX continues countries. in grow

just On Title week, addition Airways global They sponsor races. last airline a the sponsorship, announced under will three multiyear of at as we partner the Qatar also agreement. be

additional telecommunication including financial forward, explore there and to Looking number food of a sponsorship opportunity, for more. areas are we beverage, and continue travel, services,

February The fifth (ph) strong to million excitement new last location XXXX on 'XX. to from the we of team round party, XXX qualified guests build continuously Our the with being engagement its official year XX, is four held experienced full to motion building FX racing when through hosting X.X December, and on [indiscernible] to is in May FX hope the XX players opportunities simulator. program, RK The The momentum. fan (ph) license launch celebrities over our first at FX on Survive season in FX Drive on qualify. is engagement attempted and who London capitalize launched

in will before the A Birmingham later time the remain Milan XXXX, XX fourth there to also the additional to planned follow. the Grand moving and The decade. And world of open to over through guiding venue the second for month FX minutes the past, this XX UK planned locations exhibition experience around the in visitors will present This with sport. cities future in Prix. a launch quarter new in is in next immersive and Italian the it's visit Madrid

fiercest last testing we track. another the are are start finished Bahrain of to improvements counting competition and the week expecting down of We XXXX with year season. even track, the to on

race and race for Mercedes young up return on Logan attendance worth teams. Nyck and and held of Hulkenberg. calendar American decision Piastri was Debris, the for broadcast Formal the events benefit are not and phases of been partners. most with Qatar, Sargeant Austria, FX economic their six have Nico as consideration as be to replace engagement on come The successful certainly at a the well calendar the across replacement in new Ferrari made our wake be promoters grid is eager for and Azerbaijan, promising sprint our the will a 'XX entire There Brazil. back. series logistical weekend the Oscar will [indiscernible], in One. not There driver We the and and sustainability and driving Austin China The a Sprint for

in and of enhance feature deploy an efficiency sponsor plan three including the November. The race for provider. wireless the U.S. will that calendar in and the Las to advanced exclusive will experience. race We XXXX Title the customer Heineken a to and night as Silver The power races XG can fan our the street the taking app as we announced T-Mobile of public Vegas network

public flow Our minimize And in second wave process. Vegas in world the resurfacing track the ticket sales roads disruption spring, launch with on in will of the of Las to the digital begins place plans traffic to soon.

Vegas, for us to Las in day made a set investment which We come. to up the long-term race have we to expect gets

bring history UNICEF worldwide. children, diversity recently to the of announcements on inclusion. FX with we STEM world's promoting education a to finally, charity most announced education several vulnerable our FX And building long in efforts made furthering global sustainability, quality help partnership and

(ph) Women the entry [indiscernible] cars young potential to in the The teams We by FX also to forward consist access in of Formula current intend needed drivers level Academy of One. FX series up [indiscernible] maximize each to racing fundamental up This XX XXXX. in the the will and grids. highest currently to experience run make go-cart before reach those series female to in cash look our working teams providing with to motorsport, five fee be

a XX in total season comprise the Grand races ending first event will at Prix The October. Austin as support

today we has Wolff a She giving place FX a team world, think reason the new the position principle FX fans XXXX, coming project. in Managing XXXX and ever entertainment year, strongest have delighted it announced is the a provide driver will This to back and I'm campaign demonstrating sporting been. and Susie XXXX Academy. FX the as has with as for wealth of launched brand Wrapping the to that season keep of new more. huge actively engage experience we Director and and to looking value I the

FX of track. and action, adrenaline spectacle field is innovation both and entertainment, on admissible an and and the extraordinary intoxicating off and world

have work the ordinary extraordinary until Formula tell, technology sport. to together We full I winning forgotten. of between potential difference speed to This make comes the One. not being ahead. and so wanted This is is

Thank back I to will you. turn now, the call Greg. And over

Gregory Maffei

you, and listening in audience, of for And open line questions. to Thank interest the that, your we Media. and you, Liberty thank with support I'd operator, Stefano, like Brian. our And continued appreciate to

Operator

a Our we you. be time, session. proceed Evercore. [Operator question. Absolutely, Please Instructions] first thank from question Vijay with At your conducting this with Jayant will comes question-and-answer

Vijay Jayant

recapitalization, DIRECTV, that's from of talked you something and time. with on over reattribution? tax prospect a When efficiency that the Greg, any Liberty did years you Braves did Liberty of I structure structurally talked possible about the rationalizing before many of you about something and sort morning. a even been of a entertainment the doing perspective? of the the potentially And Good limitations Is the spin Sirius, of to with Liberty the a there Live. ago, post Can about has then spin you Is talk done hot get Liberty think. Sirius reattribution and hot combination that? about you sort

Is sponsors. -- I to are tapped And you sponsors or if global more talked out then opportunities different about one a verticals. by sort the on have we like seems there And of or Is that should the logistic final inflation could, of more it the Thank you global elevated. have, is of the paid impact being to costs sort but of sort one-off factor? trying that? in looks was XX opportunity sort that teams. passed for , that you. something of more we I'm Is that Stefano, teams, a understand to expect think, And I is that some that continue of lot at to

Gregory Maffei

Okay. I'll lost, was got That the was questions long start, Vijay. but always those That thank you. so I ago.

look So But the of renewed Live believe those there to were structure we to independent on on post discussions I table. we're (ph). do, and looking to about probably All reattribution of forward the spin lots SiriusXM something. table. much we all Stefano? elements vigor, have on we we But are options look, could Liberty execute at we're are of are we Sirius had things as do a and be the those Board the And including with best brave better members any the if -- with said, spin. moving think we the

Stefano Domenicali

right cost, see already for I'll the that are cost would reduced. This to going to that share important even signal be pay question. to was it Vijay, that in is Yeah. And efficient And direction way. things in a we the are for order that to say on trying combined last this proper team. make year very, more there year the in that. logistic done and to the factor But this that is I included the we its very the the had element logistics other also that is respect, true Thanks, we for the of sure second. start first be these

and on because of don't course, exclusivity other a partners, on keep put other it's we the -- side, And that the also but the the strong pipeline. the to are importable to never It's had partner that. of main value to to number right want to a coming with we give the into regard final as verticals such important global want side, other the value the that we equation we the

really the us and that with us. make it's right the up for sure related is So value is everyone to what investor to visibility

Vijay Jayant

Great. guys. Thanks,

Operator

Our next Morgan with with Ben Please question question. Swinburne is Stanley. from proceed your

Benjamin Swinburne

or increased, certainly last Stefano Two Greg -- idea business one morning. first I for clear, has company of teams clear that have shareholders. both. or and whoever think the sort you if ultimately, I But value year sorry, to wants know the the that I the take significantly Good from I a question. of benefits don't Thanks. how bought point years guess, Stefano, It's it pretty where this of ago. made especially FX, and

to perspective. get I your think but it does, I'd love

the And continue given the for the or because agreement the of sort question of operating to this on does of of support the at or in particular, team word creation leverage level. XXXX. enable your into allow But conquered first new amount agreement asking of value ability this path

the guess, I interesting more question. that's, So maybe

in that sort 'XX. Vegas, And you a when morning, of going recurring move at take G&A I That's think top that commentary for because happening give million like are way know, QX. as this the questions try, but that you wanted a of don't know five I incremental another take stab marketing. -- just of a of $XX to Opco guess a guys quarter? to on you guidance, is economic there then Is you you. level rates about into including are you mentioned it. these And how lot G&A about costs Thank we're talk I Brian, to outside for I I'm getting G&A the to guys us

Gregory Maffei

a I'm take or the then lead way. and let happy other to Stefano, you cut So

it's things go for Stefano, them credit credit. let the of first we and and the chase give easier to to One so are me credit

that been benefits. which we when have that things NFL build I'll the of everybody is Formula One we one credit do for, league Liberty's that trying at benefit is with mentality the to a and Health One

need a we making healthy think could of money. back that was the could yes, a critical they we making that prospect was hard teams have of money league. but we have so have had very the to it entire the Monday, that ecosystem. so compete on on we critical grid the growing teams about prospect And towards Sunday, teams And even also the it a And of healthy that

And they've seen pie about of their how value. gain value, we is radical of the increases theirs. pretty here We've game. the we are we But in pie disagreements much doesn't in is, that to the mentality versa as seen really goal. trying increases mean gain, we're and the And long won't vice to is good ours have much and our here long part but you build play game our teams how with the that and playing the

and grow going will And the I the and here a saying, next value look, to from dramatically. to be think have correct grow want see hey, me. hand we're you're but whip value we strength a hand team please in [indiscernible] a it, to in Stefano, so we not hand, your agreement, benefit

Stefano Domenicali

two No, if I I may add just totally agree, considerations.

to why to give more that to don't were believe business. value That's the team, itself. And strength Something that to strength engage FX, invest that also an this is many And business them the have the will not back the there, to and to we more the don't we financially really system will forget as financially. more forget. the suffering with the have to have and that to growth entire the were value fans system partners means and the of indirect support entire effect the and strategy the go something with ago, to the we years also teams of we we,

Brian Wendling

And sales. year Ben, Grand $XX and the related was Prix that's had the obviously marketing quarter it to launch talk But our about elevated event we increase, initial ticket around the SG&A in full an Vegas fourth the million. because activities from you've Las on piece, That I'll first. basis seen

from LTIP stock in the a We also compensation a talked personnel moving expense to expense, about like there more now. that's

it's You see increase, so base. won't that the in

other and there's few different and in professional couple then a implementation fees a there. with And onetime There's that an are SG&A. in associated ERP of higher items items legal onetime affecting other matters

question your X in whether top SG&A our on on included is. is it statement about rate, most So definitely

Benjamin Swinburne

everybody. Thanks Great.

Brian Wendling

Thank you.

Operator

next with proceed is Please question. Barton your with from question Our Crockett Securities. Rosenblatt

Barton Crockett

just behind talk right to your Greg, activity Milwaukee in Phoenix what's wanted Washington kind sports seeing premium on of the of maybe kind Manchester Bucks, many To Denver views, Commander, now of switch -- at I'm acquisitions gears we're Suns, the in of and United, sports vibrant around prices. teams teams sports Broncos. thinking certainly

is to about all Forbes to And of in carries if around be kind seems like are risk potential There and the to values and be any revenue this at lot there that SportCo. or rights TV teams the to that local were a way be disrupted any in above important baseball stream. by of view? And prices thoughts I'm what coming that for the things if of why applicable could your noise hearing this are these just wondering an you and have

Gregory Maffei

I on mean the value unique I thoughts. teams. probably thoughts sports any of of don't couple A Yeah. have

globally. a lot There's that have interest seen of value means and are of You've interest a more good limited they trophy They've investor these number. global commentary source assets. that potential more popularity about globally been increasing only

are those say. of isolating those true hard I think me for which to all factors

baseball pretty the continuously on that's true -- value, United franchise think their a to franchise reasons. decline a I all the do feel -- almost about I you not. changes least, States, storied inevitable true many very the good. Obviously, of them I Atlanta ecosystem. the story of the seems in trading good position, in that's coming see a and it there certainly winning likely contracts that, There longest with revenue history more And think operations, of history Braves RSNs. changes is but will term, of of may bunch operating in these short ways. declines I of prevent are as the as of I going which feel there be think net But economic for at across our a more success, of think to of are be in than some done. the about hard those that's relative perfect

know the distributors. large profitable Having a having dedicated that a RSN fee territory base, anecdotal evidence, having cable given fan broadband largest all owner the that the a the and modest household most we RSN household territory relatively scale have we of or for RSN those, very suggests

reasons lot why of plenty confidence they want strength with. are involved want given which And I the would the things there's of there a all that are other broadcast to there So started engaged. Braves the would be outlets, of with stay to

disruption our the the financial confidence gives relative the me I health of there, very about frankly, but So Braves in (ph) that feel more certainly position. too. And potential, is the good

Barton Crockett

Okay. Thank That’s you. great.

Operator

Laszczyk Our next with Sachs. proceed Stephen Goldman question question. comes from your Please with

Stephen Laszczyk

on for Maybe morning. Good Thanks. FX. Greg

Drive you important few because lifelong in do that Survive fan fans into I last the most there the looking growth drive said sport, the and that or the over broadly, about makes the here? increases to is. media could sport. in with over maybe talk more think last maybe of attendance few have maybe little what at that a is years But you looking converting if more And from fans roughly bit FX social you fan confidence the sense the following come to the into next ahead, started third a years, see certainly levers your the

Gregory Maffei

on Sprint and grow I are I'll add. of to with ways on competitive sustaining some comment, many That's interest in the also track things racing and more to Look, on interest focused in with track. ensuring very innovations drivers. want like to Stefano the off we many, but the ways. of the the grow in FX track, on Lots the innovations new Lots new the growth fan around do ways of we interest weekend races. the fan exposing -- Well,

a obviously the was Survive key but to only part, Drive one. not

think Top of are very the Maverick, another helping next helping teams what will Maverick and Brad be directors movie [indiscernible] we're a of we Gun: all think Pitt I with be to of exciting Top thing create the year Gun: and the which and growth. sustain will

sport. going a who not Las massive our be people maker open sport our is up Vegas were The it'll many for noise to aware. And previously race to

do olds miss there watch, One. are crazed many are Sunday who and be after year to really who of up will be attention. Las It XX and and we will follow people a lot get will not are loud, there Vegas. While hard It One to Formula morning get XX every Formula

into do about fans. thinking only not And long plate to and are in would for to about that a we're front things working interest, but interest try many that. convert I term we we're the have current, us think please? Stefano, what and which we're on that So on sustain lot that long-term you thinking the of more add, things

Stefano Domenicali

we itself. form because really short don't another also are in one technical relevant. we forget race main fan to a -- of pillar talked on that that would we we a more the thing related have entertainment if fact working important have the dimension say growing, the to and that with the financial platform engagement which social of are of focused media, the with of raising say to improve new on elements different these content, to are we've is about way would sporting I I that Yeah. getting are on the the that add are shown on an new respect connecting short sporting with But Greg we more is side, fund We pillar have term covered. we ideas side, side, in the but

that context we about project the diversity where responsibility. are when in we our way we in talking when a values talking about social are we talking very our about our ideas we The our are of important are think are sport about fans When develop I new tracking elements sustainability new discussion side to talking are that these of Formula all people, One. new elements on the that are it, of doing

the talk a of we things total depending connectivity. different And these course, is platform also, we voice, voice. want have we But And with. the about different engage are of with to on who opportunity to a

all hopefully connectivity very to and be are have that [indiscernible] to serious. we that way interest shown means the be operated So in elements to has the discussed able attract that

Stephen Laszczyk

speak see if to in leverage come started operating you'd could a to I more are we We of one. in at variable. that. just be that percentage EBITDA through for came And those willing to as then Thanks or [indiscernible] quick front mentioned this point investors down of that what maybe what some was one XXXX? XXXX. Brian prepayments see wondering in Great. And know expect EBITDA XXXX. adjusted on to core

Brian Wendling

Yeah.

profitability team And out, Club. were Higher point Paddock So pointed counts. some in costs, with compression although by have very was we increased grows, our payments we've those in talked talked about we concord attractive we offset 'XX team that the out But items onetime source have margin as leverage freight we've of a hospitality the payment there's XXXX. SG&A. the margins rightly before, as agreement before, as as you still in on That expansion about.

So (ph). we averages some would expect

Stephen Laszczyk

you. Thank Great.

Operator

Wolfe with Our next your proceed Research. question is from with Peter Supino Please question.

Peter Supino

might sports Liberty obviously expenses, brands, question of wondered on other core operating able discuss outside for FX. that the Hi. O&O I all as replicated (ph) takes and in to professional And Good OpEx that morning. you a think the Pleasure move be agree wonder to Thanks. And some A global at the they OpEx particular, leverage in happens, if given we in way we the your U.S. is then XXXX to their Vegas. XXXX, be and event popularity. for from costs you question the rise, call. you that best beyond see on what at look as onetime puts are you benefit second It's is Vegas. on going you the FX on as wonderful looking events includes I that practices leagues would

Brian Wendling

the take in I'll biggest as absorbed So of OpEx basically our pressures the one, And first. we margins been cost other on revenue. of XXXX. pointed that out, freight one But we have

go expect there. And leverage see margins. continue we you'd in some you -- good there's just hopefully, see said, to forward. as that So wouldn't Hospitality costs, we as

Vegas So play in. will

the with expect. forward. the and yes, I'll Stefano, We've profitability, revenue see would we but move But let haven't just you as OpEx second. Vegas, number. given as given expect overall number we would increase OpEx you you'll the leverage handle We associated

Stefano Domenicali

hear you Can Yeah. Peter? me,

Peter Supino

Yeah. Thanks, Stefano.

Stefano Domenicali

Okay.

quite you a No, line. all league popularity way And that bringing the growth that of but we was -- is on as really said, in can Sorry. growing, world, fact. is approach And our business I sport I fact our I fast was because in the to want the and and to this is that we what the are interested course, dramatic. think how what growing. capture are of everyone we the so are order other let's losing humble from in understanding global say, learn around increase would we say

think turn that business in. the is then engage drivers that We feel them with attraction giving the into are approach that really business. very with important voice is is one sharing I fan key will that way they with an because incredible that we is we responsibility our of us the the of the engagement voice, fans. authentic the are that And attractive

to to think media. social If count that wants -- see race, the fact the attend follow that about wants then fans you if fans our the in the to you you about if think the gaming,

So on that make quite is voice even work unique. even is elements sure that, I will is that this think And I this we key of think really one to stronger. the hard

Peter Supino

much. so Thanks

Gregory Maffei

question. Next

Operator

Please is Jason with question. question from your proceed last with Our Bazinet Citi.

Jason Bazinet

is just will in Vegas a I you you expanding you successful of expect just Formula quick as it terms question be, other constraints of talk factors that you just can into or about had cities? -- ahead if Can as gating on are that One. Thanks.

Gregory Maffei

circuit It a reasons. that test than is ways, to natural rather not in to theories in role there made for fill to add. country promoter. is that good cut, make was economic about own had us something the a in operating One, for Stefano wasn't pretty which ability we We're the some Vegas Liberty I'll is us. let an street a large. a and we're familiar. The us it easier promoter, a go promotion. and many opportunity on take -- was and circuit, it to It's I'll many good reasonably close of was unique happen negotiate for

So test a unique it It's was a and lab. great great. opportunity

Could other there cities. be

and unique and we terms U.S. could Stefano, go could would of interesting. reasonably form we do do I than that what might where think obvious as countries Vegas. effectively it's may not and you doing are some in the the co-promotion we operate But many have are be we be There less where -- be have place a there or promoter of what being in out I effective we I maybe is all some here where relatively think what Vegas in kind would add? done XXXX of

Stefano Domenicali

couldn't I agree more. Yeah.

a been don't I promoter that think absolutely, before in was such thinking is one we to that a possible. in a short in that new totally way And moved no has that right. forget the dimension have we time,

make to step we the sure for sure to Vegas first need attempt. first make is that first at So us that right is

will is of can be focus this incredible push to that on really then, see that. better. an the course, done what So promoter -- for sure And what total all I'm --

everyone will qualitative for doing push an for already that better incredible everyone. -- to for that be result think I from by push So a

We in huge a around in only but demand have world U.S. the to Grand also the host Prix, Paris. not

So the make organize future. far, on be so in used this experience we Vegas that could to better can super But making focused be let's are special that totally sure there. ramp

Jason Bazinet

very it. got Thank I you much.

Gregory Maffei

we So I done. are operator, think

I quarter, So support can your not sooner. hope to if Media. there. in end our and think the operator, to for for Liberty And you for interest you speak we with our We thank line listening next audience,

Operator

This you for conference. your you. concludes today's time. thank Thank We

You may now disconnect lines. your

Liberty Live (LLYVK) 1 Mar 232022 Q4 Earnings call transcript