Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Liberty Media Corporation's 2023 Q2 Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, August 4th.

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

Shane Kleinstein

good and Thank morning. you

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

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

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

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

Greg Maffei

Q&A, available able questions Officer, Atlanta Brian Holdings, President Braves Thank and Financial Chief CEO, Also and Liberty's call be to will too. during Stefano Accounting will Good we also have you. Today and related we Formula to One's speaking management morning. Braves the be on Principal the answer will Wendling. Domenicali,

at a real on better estate. value C Starting Holdings with XXth. trading this believe will corporate Braves July highlight Braves Corp Split-Off and the We updates. as began Atlanta some its

the since up November. the shares, Split K shares the XX% BATRA and A [ph], example, announced For are last

inter-group this all in also settled connection remaining of with the We interests Split-Off.

and our focused equities for and Today equities, marks of follow. trackers, the expect investors first better focused and more for trade trading new flexibility we increased will future be easier to day more

XX% exchangeables cash, and LSXM near the consists debt. We Beginning retirement with only And one-eighth having Siri, debt term. the second an we SiriusXM. and simplified in reduce debt the BATRA term. million the Siri, This continue at tracker of of quarter, million near remaining the in rationalizing wish interest two our to and Liberty we in structures $XXX X.X focus in new reiterate shares exchange LSXM the and Siri on for the retiring for

a results in expect SiriusXM improvement an itself, back it do the was net financial first We ads had self-pay self-pay ads. the reported and quarter at we a Looking in aggregate sequential with as in improvement strong over half net expected. positive

Siri churn business has and improved benefit sustained is EBITDA will the of X.X% and the cost structure a historically that low on quarters. in and coming efficiency focused

guidance cash increased up billion. $XX million $X.XX Siri their During full announcement, to free flow its year by

on over making progress fall. app in-car for great mobile for and down as streaming year. next was continued it which the and conversion lowering customer we During this we well XX% a SXM on accelerant will the that the shows experienced quarter, is half Data are generation our cost this prior acquisition progress launch

agreement Sirius with of are which ED and area I'd is its are Volvo. us growth as demonstrated manufacturers in-car by note, its position, our focus success area, for enhancing maintaining new on

including related Vegas assets the we the One I Formula the the property. to the that you Group, corporate FX remind ownership and Turning level, assets of have at consist motorsport

shares $X.X that LSXM were $X,XXX interest previously held a repurchased effectively in share. we quarter, for settling at inter-group the million During FWONA the

platforms is to ever. at name continue the of number have all the more Stefano in itself, moment, give almost you will FX we At bigger engaging to few, stats races. but content than across a fans sellouts FX a with

The weekends in Sprint are driving year-over-year viewership. growth

For shootout, was qualifying example, GP versus total Belgian year. the across the and last audience up race, SPA sprint, [ph]

growth we've note, U.S. the on well. versus up TV FX seen with average is in I'd viewership particularly XXXX performance solid Viewership season-to-date ESPN as strong the

X The of Monaco, XXXX audiences but already for the the huge our the have history of in and U.S. million season races All including on TV seen four FX numbers more two GPs. has three averaged largest live U.S. Canadian than market. viewers, Miami,

side, to freight. up leverage and on quarter-over-quarter slightly excitement one operating by now due improved the financial grows was as the OIBDA platforms. for momentum On demonstrated turning LVGP, And to payments across team despite less race race social

Super LVGP over July. and example, million in will and together Vegas had would an most sporting it's the testament million of It our The the social XXXX, largest and unprecedented premium team be events. a Bowl impressions Grand Prix X all is be for a complexity aspirations engagements over event argument For our our to scale. pulling event Las view that's of and XX

despite I we we schedule running assumptions are inflationary out previously. laid am and to expect and say no that pressures, pleased profitability change cost on preparations in revenue

detail are CapEx for go in a that will and We track into increasing and in estimates work, building moment. Paddock the Brian more

incredible building profile economics note inbounds those to plans capital with commercial Paddock receiving making. also which next We and investment of the support are track remain we use return we've within incremental forward for I'd finalized. project already look the will been they sharing confident year of are that once in a we the the this of

forward to inaugural We race Las look expect come. racing for Vegas to in years many to lot learn a our from and

and the strongest was Liberty year the Live to the its growth into up balance quarter the for AOI Group, prior XX% over of was ever confident second continued Nation year. XXXX. XX% Live experienced and in Revenue now up their and Turning quarter

on the international per and in outperforming were up fan international lastly, Overall opportunity And the Live. XX% double front, for acquisition digits overall real quarter is driven expectations. both and fans at Live our touring was by profitability are Assess Growth artists attendance man, globally. up International Nation. for more a Mexico were

usual public country. We've a ticket but tied separate is momentum now business fan to Braves as the Braves, in demand, for capacity company, our best. MLB's of in now season Turning XX% seen continued date, continuing sold having to

in East XX a MLB. the date the We've And sellouts fastest revenue already, made the it multi-year concession truest We most sponsorship ever times. milestone entire announced shorter Jersey importantly we've with up to hit on this to game in of the NL Braves deal. season a season and in lead patch field, Quikrete a is despite

seeing infield. six game, are locked even players longer, eight through of entire XXXX growth, mixed OBIDA prior including the year. franchise Battery these is versus most first the in development with players XXXX A All record eight the months were The in use for most adjusted up even and all-star was the me, continued also up longer. our excuse XX%

I more that, to Brian turn it results. with And financial on will over our for

Brian Wendling

Thank you, Greg, mainly and split-off our [ph] and remarks completed good was that for of the sheet yesterday. the reclassification focus that My was adjusted morning, figures tracking the will on balance completed stocks everyone. X.XX July XXth,

held SiriusXM. $XXX attributed and adjusted million, and liquid reclassification, of cash at SiriusXM and approximately quarter million split-off of the cash At which had Group end excludes $XX investments for Liberty

billion loan. capacity undrawn level margin margin $X.X There's also SiriusXM loan parent related at our the of to

billion. value Xrd, August our the $XX stock SiriusXM was of of As

holdings. in billion against $X.X have principal amount of debt these We

amount Group attributed Sirius held of April, X.XXX% Total includes directly SiriusXM Liberty remaining is its $XX.X billion SiriusXM at of $X.X In debt exchangeables. settled of which the million principal billion, SiriusXM. debt Liberty $XXX

was both down at $XXX. and attributed pay down SiriusXM of the the debt net Due is reduction million to $XXX due to the from total quarter, SiriusXM Group during SiriusXM This debt exclusive Liberty reclassification. the Liberty

in on notes. its million and X.X with Liberty SiriusXM mature in third-party The near the lenders term. Battery one remains to convertible or X.XXX billion these exchange plans principal basket down notes pay more shares October $XXX to debt

quarter One of adjusted billion liquid Formula to at the billion, public includes Formula One which $X.X holdings cash and for Turning split-off the reclassification, attributed cash, FX. Group end of and monetizable at had $X.X investments, group,

and tracking well million held assets group attributed as the certain Liberty cash, private stock. One with connection $XXX Formula reclassification, were In the to previously approximately Live as public of at

the were $XXX $X of billion, to that up Total of corporate $XX the million cash Formula assets debt includes $X.X of and made $XXX the This a One was prior which ETF over. portion contributed that million billion of public was of leaving level. and reclassification amount FX, Group liquidated includes at million principal attributed debt at

and on stepped year-over-year I'll their down given FX's quarter race X.X is The the as best to analyzed we make be on loan their leverage $XXX effective ends couple FX's permanently brief results. a of remarks X% margin quarter, times, term in May. at from mentioned an last variability on business X.XX the undrawn but million calendar, the beginning quarterly revolvers and at annual basis FX

compared income FX which six by team for less to XX partially compared recognized out year quarter, period. XXXX. given also in recognized to proportionally of proportion the XX prior the FX During period was seven a of of races less to payments occurred due that expected the occurring full payments the during season-based year lower one race, out increased offset team

viewed best EBITDA of in the payments XX% pre-team a team first of and Our the on basis year-to-date year. half are represented

race the race. growth modest quarter prior less investments not period Imola canceled race, were held One the despite initiatives as the Vegas and the one costs as and FX OBIDA well associated Academy, in Formula growth in in incremental like year generated that with

had Wednesday is the estimate majority to regard Imola to cancellation the at setup and race-related canceled On than basis, costs from of Imola already adjusted planning, full-year OBIDA race we million. of the on a less logistics, been incurred. Given the $XX with week, the was modest of impact

viewed quarter historical of revenue of revenue in consistent and XX% with FX percent as average. revenue Other costs was are costs our of SG&A other that the Reminder best a total of revenue. FX total

the the costs expectations as LVGP-related noted, will in largely profit occurs, revenues incurred for quarter fourth race Greg $X to one. million when already the for costs Vegas, revenue with and there's that quarter had year Note the the be SG&A, race LVGP. but and our of On in of we other change associated on no sales

Our complete. building Paddock now is XX%

close expect million, building year. half which CapEx, to approximately million to Vegas incurred including first the in Paddock race, CapEx of the related We to of both and structure be $XXX the was the $XXX track-related

will separate to and spend CapEx related CapEx Track-related land will from of sit within at Paddock the be FX, or FX-OPCO level Formula the the corporate building the the both incurred be has building, at and majority as One. level. incurred The FWON,

team a inflationary along community, local the in be such managed environment. cost is this Much an responsive businesses to incurred has attributed concerns minimizing expenses compressed as to and of of Strip. increase timeline to track-related our project the Our on to the disruption

to incurred sidelines. fan the expenses We and infrastructure changes quality of with ensure to the have in improve also invested security enhancements experience,

are to closely is our relationships. working this and efficiency local partners, have a with We with these and testament project which Vegas we completed speed the

Las We contributed about and cash, Group, from are is the monetizable associated for adjusted our Grand both Liberty in million, liquid activities building. of Formula excited reclassification, year-round investments, the Group. Vegas public which Paddock opportunities at the Live the investment and includes $XXX and the Prix At assets the attributed One holdings for there ETF

time In filing. value Formula these anticipate at with definitive private updates million, connection Group the providing ongoing SX with assets assets. contributed not reclassification, value do We the also of of fair of approximately the a private One $XXX has to the measured our

Live asset assets can held of million list to of at yesterday, Live loan, and is disclosure as be marginal $X found at was marginal Additional Nation composition posted the billion. loan Liberty the capacity to Nation undrawn There value in $XXX our our related Group these Live of on stock our website. Live Liberty of the

We have amount $XXX these million against of debt in principal holdings.

consolidated are covenants our at with end. their compliance and in Liberty debt quarter subsidiaries

quickly Looking the Braves. at

Greg Maffei

you interrupt for Let Brian. me one sec,

to turn I XX% XX% early here, at Braves, too capacity. is XX at the was I it capacity. capacity think in and misspoke The the we As Stadium -- actually morning said Braves

go Sorry, ahead.

Brian Wendling

Greg, you, that. for clarifying Thank

as in the growth including reflects revenue growth XX% the related capacity quarter home period in Braves, game well regular revenues, in the and and attendance increased concession more as at looking with season ticket that revenue. games So

costs Battery under increased due to higher grew revenue mixed due second the to increased operating quarter as primarily from payments in and due existing variable well grew Baseball use costs player the revenue payroll, rental to increased increased income MLB's sharing operating and also as plan stadium tenants. attendance. new

$XXX for adjusted attributed attributed $XXX excludes Braves million. and and the cash of quarter investments restricted At cash. they amount million had of $XX which end principal million, And debt split-off, of Holdings liquid of Atlanta had

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

Stefano Domenicali

Brian, Thanks, good and morning to everyone.

an Verstappen We One Red Bull over on Max Formula congratulate season, to breaking on through halfway performance record are would the their this and incredible I like XXXX already wins. season. first consecutive all-time

all within gas behind field produced over for fans, them of three-tenths one close seconds our crosses title XX the one the [ph] within date, to qualifying all top of I The time rounds most In Hungary of thrilling second. action continue the line finishers six will teams. for all had the and six has incredible to a another. believe top Silverstone, the the with

drive McLaren's following delighted podiums Piastri. and Silverstone performance recent and second-place upgrades has from improvement with strong London's fans at Hungary,

and XX% like fans of to In over markets across audience Global multiple events same content is are FX through compared ESPN, have the first U.S. accessing year's viewership the averaged eight X% U.S., races. platforms. last grown Our the Monaco viewership. million media period on XX up growth like

has viewership growth. race weekend and viewership up the Azerbaijan, first events and to season, The sprint of sprint excitement generate drive our versus the series track XXXX. across both was At sprint continued on total the XX%

recognize across QX, a and linear, up sport XX.X media our XX% reached channels, of We with million digital, Across as social content fans platforms, year-over-year. followers variety social. that of engage today FX including

gather FX serve to of adapt expand continues segments to and to platforms content our fans. different all and

FX Grand with first the broadcast For Hungarian ever in example, kids Prix, partnership our in piloted Sky we at UK Germany. for

impressions day, avatar positive With draw announcement and KitKat for than and social the million sentiment, for presence one million the of just hugely more to coverage large In FX's media users. of a the the XX XX continues celebrity presentation driver's fans. reached be [ph]

million at XX For featuring Shakira post X example, engagements. generated million FX's Prix Grand social the Spanish and over impressions over

generated movie up the the over Idris Pitt of began, grid the for and engagements Brad X,XXX X.X of lining TV the back at million filming Silverstone comments. and As post Apple with Damson

impressions. the to Tsunoda better viewership how the Yuki his engagement our considering million AlphaTauri approach the almost advance measurement, to when and consumer teammates FX [Indiscernible] generated evolve after XX add social flood and social have The Florence the future. helped behavior, community wider capture, in audience for a to is

the and Our partners improve broader enhancing promoters continue successfully metrics. to discussion focused quality these The fan events Grand in engagement commercial the with invest of experience. on overall Prix

increased capacity. these many We seen with of result have the efforts continuous races, sell-out at

up evening XXX,XXX Silverstone new entire due respectively. and with Canadian part crowds last Harvey's Silverstone across fan attendance XX% Calvin year, Corners on-track Grand set to compared activities started. Prix The to cultivating in records X,XXX,XXX race at both experience on of and before attendance was Thursdays, the weekend, including

We will to success events ecosystem. entire of these our FX The to with is beneficial the continue their work on efforts. promoters

FX race There outside to engage ways are of with growing weekends.

further this plans, with Our in Birmingham Boston UK FX announced the expansion new opening Arcade sites May licensees and December XXXX. in in

In FX-XX Global three Football the of number Games compared launched an game two in Flagship June, charts, video ranked respectively. at prior at XX% In location visitors per game. week. QX number EI UK average London the and quarter, first and Steam its with sales in over grew to the week, X,XXX

of are its And the finally, Formula with other Y newer particularly new increasingly of It podcast in number our May. U.S. XX% the launched its audience one fans. content U.S. to and sports in and in FX-related cohort among podcasts audience fan UK engage XX% podcast providing female. channels, well performing reached A

On physical pit the invest Tune with a race of building made further including a an by promotion, our significantly also through Austrian we Grand Prix in commitments raise Hungary update Grandstand in extended XXXX. promoters infrastructure, new the Main commercial and extension announced to to on XXXX. throughout by their agreements. recently XXXX,

calendar calendar race journey of XX the record-breaking progressing back-to-back is the a including Qatar. and as greater and races since in return first for China, with championship a China We as for Japan the the XXXX. XXXX, in Dhabi possible, regionalization towards FX time announced further on where Abu well races of

and This digital from reduces existing of across efficiency perspective. FX stream agreement freight into the on travel, its lags improves our entered our with platform. complements media a rights, in we in CCTV. events China On Tencent operations coverage This to our a unnecessary particularly multi-year

we Heineken Pro strength multi-year market. particular new access Additionally, On FX in deal. and subscribers grow extended sponsorship, a TV to continue U.S. global their with the partnership in

be official Las they announced, Silver Heineken previously One partners Formula As Vegas the will Prix. the title also of Grand

The relevance of opportunity, inventory Vegas. continues in brands our FX to sustainability including strategy new sponsorship Las generate interest like leveraging and

strong values incremental further focused of and sponsors are pipeline developing our new partners. to commercial on We our delivering existing

We are provide thrill racing entertainment, Grand offerings Las with experience, Vegas the acts, more. guest world-class live unparalleled of Prix. culinary Las months and Grand will musical just over the away premium combining inaugural Prix The three an Vegas FX from

We venues Paris, deserve. Most fans House, continue including premier recently, ensuring partnerships, new to Grand meet expect hospitality were excited partner as Hilton Vacation the well additional Club grow Club we our experiences, as to a to fan partnership all a our offerings announce with Heineken standards and on-track and SI suite. host quality with hospitality the

official Jay offerings. Musical to was Stage, more headline at brand sustainable with acts single-use the high-profile with many Lazer, The a Death with provide will Liquid Robson beverage Zone plastic Major a be acts with to announced. T-Mobile alternative partner still as Belding, fans a event music and through named beverage Sphere and their including Mark DJ

by Formula community, partnerships have capital and from Vegas, race meaningful whom the with value Formula Renee will benefit One believe The long-term has to economic incredible tremendous One Wilm all we and happen. invested Liberty it make led a local the commitment have made to built Las stand to bring. of in team,

market-based to on focused two an race economic will meaningful to $X.X in data gathering with Nevada. year one and team over impacts Vegas This community efforts water third be Vegas in access food Las the additional insecurity, in billion. conservation and is Las Southern education estimated parties of The worked the

Las and Prix proud of will this November. We our are that doing is Grand weigh the work Vegas the confident are community sporting team global

place Finally, have to inaugural the is for Garcia week, and One Austria the announced FX championship. its liveries and will all Formula races. season our and and Weekend FX finale began season. ten now alongside efforts. teams drivers Last with continues season progress Academy through of inclusion in XXXX sustainability that leading will in April FX Race Marta FX the Academy diversity in take seven The we six Austin

depth FX Academy in for FX young demonstrates Building environmental progressed initiatives. of support of for grassroots community next races initiatives season FX the this This in of tremendous across to entire importance women benefit has the the also the ecosystem. FX the sustainability. generation provide tends

In the emissions piloted lane Paddock area. XX% FX operating carbon delivered and power system energy-efficient Austria, an a broadcast from we that in reduction pit

Additionally, the operated by of for trucks delivering our technical our are expect new production, of vehicles. and XXXX European road emissions of freight which equipment fleet a DHL XX% fuel the traditional biofuel season, to events a compared by reduce will we other broadcast minimum

cars introduce advanced to remain Two and running and advanced XXX% fuels on Three track successfully are XX% to we Formula season, Formula sustainable in this Formula One The on sustainable XXXX. fuels

will at net by We forefront of openness awareness be and in increased the pushing. policy roadmaps FX continue to to include are fuels to advanced zero, sustainable also their of encouraged something the governments

Monza. season are getting We resume for The on Netherlands gaps our later look closer in a going and of this break The an summer course, exciting forward the will within grid. increasingly month to the to pack before the of the teams. well-deserved rest season,

series Brazil. in sprint Qatar three-month come have Austin, and We to

commercially, ahead". I speed on both updating a Avanti incredible is position to "Full and progress. business in forward you strength look our Our and financially of tutta!

Greg. And Thank I the Bye-bye. will you. back call turn to now over

Greg Maffei

Thanks, Stefano Brian. and

date. Xth, New investor day November Thursday, Our the save will in York. annual Please be

We to interest Additional continued it you see Media Atlanta there. details in we'll soon. be Liberty do provide and Holdings. many of We hope your appreciate Braves

like questions. to And line for operator, with I'd that, the open

Operator

Thank you.

[Operator a Instructions] now Thank you. We will answer and conducting session. be question

from & first Cowen with Glagola Stephen question comes Company. Our

Stephen Glagola

on you beyond? monetization Hi. in Grand understand Thanks can the early -- expect the of plan to over Thank of XXXX Vegas OBIDA type So, and events do what of the us holding? Grand outside for Grand the sponsorship Prix better interest you help indicators time? Paddock outside Vegas question. Any exceed And Greg, on do you. you Prix contribution match this match Prix? Las or of the

Greg Maffei

exceed say time. let with will do on and But make expectations that, who's I first amount our Wilm thinking expect Vegas have Prix the manage the we'll Renee I Grand comment will things Las I'll of we not we're running in it some over effort. the her here

about outside the race.

Renee Wilm

Thanks, Greg. to. Happy

is just for basis So with beginning us on the surface to scratch we on the really available a what go-forward are building.

about We inbound have of high-end something Bowl had about Super number parties. to maybe racing, related karting, Think a Think requests. supercars.

Las in Many with in ecosystem Of the state-of-the-art our the of the partners is our us are LEED I'm certified, course, interest LED Lots working building. Vegas in very certified sorry, center of year. convention world. interested FX the of throughout

I months. all the say a lot few could come more next over So to is

Greg Maffei

Thanks.

Stephen Glagola

the to Greg, vision then and Thank we maybe with team what to be from comments conflicting FIA new just the the you. you more. long-term conflicts appetite Agreement sport like appears with high-level, the And FIA recent How you. entrants. And Concorde early interpret your versus what of an views? renewal. could do interest of more Thank regards one then, if the any see And some of I in squeeze should

Greg Maffei

a I'll Stefano or Well, make two then I'll let add. and comment

XXth We're we add there's very but the little process is they're excited think an daylight bar which Stefano There to and more XXth unclear between about is I high it's teams. what they XX doing. my have great would is team very value add. team. what this. discuss and view, a an all teams, discussions we FIA on of you things would had Stefano, there hopefully teams the And The and a moment? about No. it is we we Do what have among add? other every We agree work lot productive uncertainty and about out. everything

Stefano Domenicali

as very, for is We're we mean, But always this waiting as I has in final an will value in team is perfectly. very the process their and the strong. agreement together, the business it said discussion, of find the as the you Greg, because it think, FIA you today conclusion. I of said, value the possibility. started the

decision, that will soon. month would say come September. very, that the So, of I information very within

Stephen Glagola

you All both. Thank right.

Operator

you. Thank

question with Swinburne from next Stanley. comes Ben Our Morgan

Ben Swinburne

Good do any with concrete you. one On made And a when a to of signing the would look agreement at product you unpredictably this about of driving or Do you team, Thank that over morning. what's around sport? teams all year, as optimism at step dominated relative you couple evolves potentially see being how -- sort early? the just year, more natural this look by FX, changes have a time? of sense Stefano, years your you which the guys sport be the into way this obviously backwards of the the parity

some think the just anything, how new lot. you, that one There's question a in if for different tell of Diamond process the Thanks does you gone out? I What plays left had teams over that this sports. about and then been opportunity business as next you And about Braves have guys. Diamond couple on to Braves models years

Greg Maffei

take take two things the obviously, Stefano Stefano, Derek, you I'll shot and first add. But question. why have speak to let if Diamond first? the at And you I'll don't a

Stefano Domenicali

the much celebrate how gap, incredible car other odds the think just moment with is where I doing right the doing first game. I couple in and Yes, job of always need technical to doubts terms would doing. this say mean, it's incredible And is Formula thanks, someone I the incredible it's great you if what company part that see this that see Greg. that pretty is be an of great job. that are the term been all, car. Because would we the But of if One. but years of I has to is I'm reduce, in of is the part of would the next say, sure

sometimes that to the the have And it some particular doing need they're confirm to I say legacy someone, of also is stuff.

legacy, an doesn't also mark this who can incredible something. certain in the you see one is that know because maybe you And new mean

a able are you are races, win great If to many you really I leader. so mean

perspective. If that going say, need research. in today because conversation -- I part would something are really great. negative to has moment this regard of the nothing has back agreement, With FI is would really of this always look Concorde I say the to sport So been ahead I

Of discussion things heading to rush, this we course, would both I that are but and in conclusion a the FIA. for team a say are positive the not all

Ben Swinburne

you. Thank

Greg Maffei

Braves, than give successful team. and reasonable We're strong territory. very profitable Valley, paid to are we appreciative add. have million the is by of a an Diamond I'll fan with incredibly a the feel which we on On view please or my have. we base Derek households, probably blessed broadband they to very free XX a deal And most what are think

and it bankruptcy why relatively revenue versus cost Some valley, as executory ones less is territories of the or bases the were by contract in Valley. other were less either attractive proceedings terminated to or an less they fan attractive attractive

for for of I our will it alternatives of in us strength above. returns. demand have don't other But the said the it will I you product to want reasons add because anticipate happen if our anything? that Derek, territory there that be and us, I because for will we all happen positive think the do generate does

Unidentified Company representative

Greg, thanks.

said You both as adhering agreement [ph] I would we it just of first and our Valleys very well. we of stand. currently the terms all, to comment are

We our delivering full we are and being rights in paid are full. in

be desirable. you see tell content soon. large just So to changing very anytime then continues would sports I And generally we don't just that

a long-term take this good is of we position and what regardless So happens.

Ben Swinburne

to guys comment want on You the next season today.

Greg Maffei

thank you. No,

Next question.

Operator

Thank you.

Evercore. with comes Vijay from next Our question Jayant

Vijay Jayant

know any lower that Formula me. for just than if the were particularly, moved nitpick some want that from of payments, morning. need don't to one some Greg, again, Hi, One, you Live, do Liberty the private On seem broadly, sort know good team And Couple like you remains? then assets are our any a there? in some XQ a ATBs are liquidity less conservative. And have those the implies One, real directly it there doing I tough Nation impact you venues discount X.X anything? a And said estimate? of of at past it any that buying billion. of growing is some on Or estate race. of little numbers but to any Liberty Live portfolio business that there's Live? Is to purely Formula Is and the stuff there sort to with strategy and thoughts or tackle I be in sort

Greg Maffei

to to is look, Okay, looking lot unpack there are but Liberty start. no Live, you. we think Vijay. On -- A there, that ATB for business in thank I currently

real about in and by for there of certainly things which do a things pertains attractive there latitude, looking on that, real the with so and ways we'll is like be we fit be ideas. And Live we anchored is relatively the but could to future. liquidity are well estate additive light, estate events to which Live particularly accretive will think in is wide strategy. That Nation us do were which some have list creative have gives to we Nation potentially Our be but us we we'd them We to businesses think the the

Turning things. couple Formula a to a One, I noted

where of The third stand the payouts about how at would the fall timing were very think we is is year, being slightly general races the three I would general quarters, payouts. of I payments analysis good. good feel how some optimistic think you looked rightly of we and on the where about flow the we on of the impacts pessimistic at rest you slightly how and the done But conservative. in in add? things fourth the look nature analysts has between what and And it four. Brian, noted

Brian Wendling

noise Imola. that would say of is thing rephasing because the there the second of in the and just impact the other quarter, I Yes.

at So first look percentage together look at the that you our were XX%. just I would quarters remarks. we as at have We two and in said

Vijay Jayant

Thank Great. you both.

Brian Wendling

Vijay. you Thank

Operator

Thank you.

question Bryan Bank. comes with from next Deutsche Our Kraft

Bryan Kraft

is, it for ask had market more borrow, guess Liberty can that I investors you the made Sirius. spread. be for Liberty often many so question I first why a that shares Sirius on Greg, a around efficient couple that hasn't available

your you and closer XX% for behind question Would share stay a from doing are And if to that or decision the considerations and doing mind or some discouraging is to do Sirius but that Sirius SiriusXM. some not kind any of Sirius. above level, sense Liberty to the get bring to sensitivity you its of hear a cash there in in would then I rationale So understand that? merger to that so love that? of make preventing wouldn't And the Liberty debt down the Sirius Liberty it for XX, you the is, of Thank you. restrictions to potential reduce leverage with sell use shares second then

Greg Maffei

Yes. Oren, second Ben I the let the answer will Ben if first. think after all into on are I first one you're you

think -- that are we about leverage. concerned strategy, I concerned not the

And idea It don't leverage I sell like Liberty don't some businesses whom. tax Sirius inefficient. have how at who because said, the we to shares, that the be I tax think bought combined the can low was combination. that terms to could But think executed like very support think think might of would in leverage. I as be I those basis on in can I trying general, I the clear. depend we support the support and we idea very and of in Sirius of

do SiriusXM been they special to like last and leverage. tax time have to dividends in that We time to year applying the at dividends paid inefficient. don't to look from are reducing manage general ways the and out I leverage. continuing our We over plus get we've But of

have the shares. want do issue? very borrow in address We low you Ben those basis to

Ben Oren

sir. Yes,

are it create does we very issue, because lot of sympathetic volatility. the While a borrow to

ability We internally the lend our on actually out of have shares. to work a done employers and lot

probably inefficient are time would user. to this there say, I at have tax make it to just would summarized a potential would to shares how there structured. -- borrow are legal for That different our facility be think or borrow I considerations any relatively

shares. the will look the What of So the continue it tax considerations were we for to with why we will lend time doing would going the and and never. say borrowers our probably be never if be for now legal will is to with we not extent that to shares being. that able out reluctant our optics shares coupled at But that those or to lend we the any

Bryan Kraft

both. you to Thanks

Operator

you. Thank

from comes David question Karnovsky next Morgan. Our J.P. with

David Karnovsky

you. Hi, thank

On was what spend. promo, That's for the increased on the original CapEx races and QX. race was us then same the Paddock on expand remind for the increase Vegas, just the can of up Imola. mix in minus projection bit of maybe you drivers, revenue the a just curious, And I'm last versus year

one-offs any aware you see on Thanks. that to want the steps with kind drivers material we could of? there if or be could of comment Just

Greg Maffei

take Brian, you CapEx. to want the

Brian Wendling

gave We the Yes. number. purchase say at never proximate on than higher a officially the I slightly a would it we or said value. CapEx, land

Greg Maffei

than we is to sure the told now amount have the spending it? not will So followed you firm we be given said. on second just repeat you Yes, Can land. We what question we think still I the XXX are that that larger it just number. approximating make we a

David Karnovsky

expand CapEx, be question, if second just the But increase, on Yes, the it on was of sure. you the And could just with that'd the on great. drivers [Indiscernible].

Greg Maffei

do the on want comment to Renee, drivers? you

Renee Wilm

I'm happy to. Yes,

the such as We've and requirements lot opening a So uncovered this wires be There from as driven under of preparing been the into honestly, moved. that as that asphalt, requests A stakeholders, some the needed we've the and, began entered closing encountered we've have we track also usage. to the challenges local local security, this process have properties around the was stakeholders of for enhanced be actual of to needed track. of around cables the by casino overhead addressed. quite requests couple ground additional

that led well just this work. additional as was road to as equipment additional So needed, actual has

being built course, is an to paddock it in inflationary Of speed at regard environment. lightning with the building,

you in additional So that been way as along there imagine the also costs can some have regard.

Greg Maffei

Great. could you Thanks, Renee. repeat and question please. to about And it, your timing recognition, second revenue maybe

David Karnovsky

up was minus same Imola. same The – sorry, number promo. had year-over-year. Sure. it noted the of mix I release races, race had just press And It of think you was on

So I just were wanted of? step-ups material any to see aware if you could comment on be to the there drivers there, or one-offs if

Greg Maffei

regular away. there, No. I mean, increases impact it's by race Imola the of the offset just contractual going

David Karnovsky

you. Thank

Operator

Thank you.

Goldman Our next Sachs. with Stephen from Laszczyk question comes

Stephen Laszczyk

excited Great. beyond, Renee year into one are for the is opportunities appreciate for into maybe just more on come Thank and around thinking Maybe Greg But focus the to the I might six Las opportunity profitability vision you. year there in Vegas. you. we and focus Vegas time Just have and through able Hi. that years fan that for GP to but trying around months last see Las two one? in any experience. particularly over the not think might about, the to fit what compared long-term this be November? you're Thank

Greg Maffei

of touched this. some I on Yes, think we

are the events, that on, costs. increased events, And to be those are we side the second had I potentially grow to sporting things on the as cost think around it all will whether be revenue team, and to the also there of team, opportunities that both fan this beyond there outside lightning FX moved with into We music year in two. led GP be whether put place. GP. it's whether festivals, side, opportunities we probably both meant not GP be capitalize Renee's and it the speed, that's it and around go can And the

the today we outside of talk on have GP Renee the numbers. in GP So fact, related. I on touched more about that interested think of to are things But terms And in. touched those are don't all people I the we already some think

Stephen Laszczyk

Got it. Thank you.

Greg Maffei

question, is This last Thank you. operator. our

Operator

Thank you.

from Pereiro question comes Bank last with America. Our of Marlane

Marlane Pereiro

taking for my you Thank question. Hi.

SiriusXM, on debt the target looking there or to Just of amount an Liberty sort you're year? next a get quickly, down of is over

Greg Maffei

little think I Well, earlier. touched I this a on

potential at SiriusXM. We looked many have combinations and with are, perturbations

LSXM and or cases incremental of on some taking in the would in debt. involve All debt debt, to them in that's one form adding another the SXM

target, will follow. we what no generator. exactly is cash path SiriusXM is because don't massive particular it there a know So flow

reasons generate One of on why selling We're particularly ability cash. its the another not business reason we're we're stock. why -- bullish in interested continued the not of to and the our prospects that

though combination, pay entity down cash we half five short it four relatively relatively to the for high any of might flow and to allow that So leverage combined generating times, period time, that a capabilities quickly. would target or to debt know that the amount a a back have three leverage

Marlane Pereiro

Got occur for are happen? there it. mean, maybe And I any and are factors? to factors most think there why to most a make the a combination But, think combination as I sense. part, any perhaps wouldn't would consider

Greg Maffei

But be and independent two will got which agreement shareholders between potential representing the that on Liberty not committee Well, I SiriusXM, of their and think have at a there'll meeting you've negotiate there's you'll minds. considerations, And have of behalf a hopefully an is parties. LSXM. always their -- a the there the you'll

Marlane Pereiro

Thank it. it Got leave I'll there. you.

Greg Maffei

Liberty forward of to Thank operator. on you. all for And you speaking our very questioners. next to you Media. Thank look the for much we're I And line again think Thank done, sooner. all we not much very quarter, you if your in you interest with

Operator

The Thank concluded. conference you attending now today's call. has conference for

disconnect may time. lines at this your You

Formula One (FWONA) 4 Aug 232023 Q2 Earnings call transcript