LTRPA - Earnings call transcript Q3 2018 | Liberty TripAdvisor Holdings, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Liberty Media Corporation 2018 Q3 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded, November 8. I would now like to turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. Please go ahead.

Courtnee Chun

you. Thank

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

Maffei, would President like to CEO. Now and I introduce Liberty’s Greg

Greg Maffei

call, we CFO, and the good to Thank besides there. CEO, of all and Liberty on you, Chase have out Mark Courtnee, Carleton; will Chairman Today myself, Formula and morning you One Carey.

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

$X.XX at We over increase Liberty the unlikely our process a effectively repurchases price Commenting for time. through Their yesterday’s to $XXX about this additional iHeart million SiriusXM – in an X Liberty we SiriusXM beginning continues. of bankruptcy $X.XX. SiriusXM, stock favorably XX. from luxury our We shares investment price August bought of continued with this of this iHeartCommunications of October So the it’s quite bought interest, a and moment. we’ll but close at compares We think period. watch with the

our at We $X.X to at was Looking outstanding the expect margin EBITDA, stood XX% the subscriber but Pandora quarter. in Revenue as for another we were had the we SiriusXM, would ownership I to moment, the quarterly that up closes, comment which was first net time. it of adds XX%. and deal drove of record, fall XX record. a of about a new billion Self-pay when adjusted more note XX.X%, Liberty ownership I’ll Media’s October over XXX,XXX. recorded which

of at done. And the we expect the the trading deal forward. acquisition XXXX. close, moving We Looking was occur early first October get filed the on the XX. Pandora indicated suggesting S-X Yesterday’s Pandora, is close deal quarter price, below will in to the

outcomes. Formula we championship XXXX Hamilton secured on the during quarter deals One We the exciting go rights to still races signed Looking still two excitement expect data is In great live championship. the Formula offering. Lewis Group, because fifth at line. constructor One with we betting, have with to the more ISG produce his and sponsorship,

on before, times is basis. business As we’ve hard quarterly compare mentioned a many this to

XX highest XX,XXX only Revenue strong best quarter the sales million shows to The delivered that three track Markakis Golden were we’re Gloves continues East number All season, for AOI although clinched the another the number had results to ever. that to the comparable out and XX%. a for Nation the so we mind since through cash awards. Live period we deliver playoffs take couple season, quarter, year time posted the of for increase, its great we and on to versus flow. in revenue, this attending Red the exciting XXXX mind, XX in across divisions you matches quite an Freeman, AOI title, we races business we’re free With look. results other National League excited. the Recently, The longer-term had advanced in the Inciarte are last NL XXXX quarter, in Division countries. of XXXX. in the quarterly had eight Sox received. first up In that’s This weeks, six in handed fans XXXX revving Braves, we’ve over record and and

debt Looking approximately sell distribution. at of the side of financial our for moment. million the million Atlanta portion We cash net Braves $XXX residential received October. a JV for did The proceeds Battery of in $XX in

these well Liberty in consolidated this fantastic adjusted and EBITDA quarter, Strong expect of responding phase for development And the Atlanta. market the is morning. TripAdvisor accordingly hotel posted to to We TripAdvisor, at revenue a redeploy we leader next over funds expected Battery growth. our the per offset optimizations. revenue in shopper bookable We We revenue increased which both in hotel inventory experiences the shopper, revenue. category declines growth marketing and are which due accelerated

that, adjusted projecting EBITDA to XXXX. With I’m for our for Carleton financial Mark growth going are it results. healthy, turn We consolidated over to more on

Mark Carleton

against At have at SiriusXM Greg. had we end, $XX liquid holdings. held common SiriusXM million $XX and and as you, we cash around Liberty of $XX The X excluding investments group held was stock attributed of debt Liberty November these million value SiriusXM the of Thank million quarter cash in at $XXX billion, SiriusXM. of

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

$X.X X, quarter of Group and $X.X approximately public Live the At investments Liberty has Group end, at for excluding the billion had attributed securities attributed attributed of of November intergroup value which billion, a the $X group billion $XX had SiriusXM. our debt stake Nation million. principal debt cash with market One $X.X debt of of including of liquid of Group in attributed market includes a FX. of with Braves SiriusXM and debt amount as Formula interest Braves billion

calendar principal Group million. times attributed as September $X of net to to XXXX calendar total amount the XX debt their will calculations XX XX Group a for Income $X.X races approximately in principal the the year variances debt as had OIBDA resulted XXXX. FX, allowable credit X.X of times. in Braves as One The includes an an Formula ended had the debt XX at $XXX be income of months and from was in XXXX ratio trailing only in X.XX between following XX races months debt of in compared ratio defined trailing which and captured facility of billion, – FX’s billion leverage race covenant of of amount calculation. attributed maximum

for So to and Formula leverage set we One OIBDA. expect counts. the Formula ratio One five year-end increase total Please accordingly the Formula at reported will leverage overall. these race based of ratio bank not One leverage are a note the ratios net for business covenant for times six target Group those on We

about bit Formula I a to that, Chase over with talk will So to little Carey it turn One.

Chase Carey

Thanksgiving. comparable zones, XXXX. the champions track is aggregate, number all-time had continued this XX among and date, the attendance, then Brazil Prix Lewis Lewis. in Mark. of down Television Formula fifth constructors weekend great on as secured season final of Dhabi Fangio titles. in is to data and Mexico response labs, the only the more merchandising to will a Paddock list and expect Juan the world To on championship securing year at the in we from still on have day teams behind see tours, his XXXX One season end fan and tracks at with with Manuel in Club. the And drama a X% to such puts you, We Live the par which Paddock Congratulations race we’ve continues year-on-year October, outstanding to the Schumacher And of drivers, championship. X%. an races up – now XXXX achievement, Thank the legend him hot the enhancements championship in year-on-year Abu excitement Michael be club, Hamilton two in at on reviewing Grand focused placings during and impress areas.

our largely free to is in that However, pay-TV due Italy. move to from

is X% is viewership even up viewership our qualifying television our Italy, year-on-year, Saturday more. for and up Excluding

China showing especially figures uplifts of XX% our in U.S. We’re where XXX%, key are our pleased the markets, two viewing and growth respectively. and with performance

expand about contracts. calendar finalized that, engagement, are running platforms video fastest And year, our XX% million with during number the the sport bathe For continue social XX.X upgrade still renewals ago. and while our XXXX locations. week social race German a second in XXXX to XXXX now and our up up of counting, the and to of We race and the have the will on platforms, on for Japanese We growing both digital views of are and our replicate we digital interactions media. early the calendar XX%. our in XX% initiatives year up And with followers race races

expand to We’re thrilled This our we’re Hanoi strategy add location excited that a newly brand Vietnam our forward whom that Asia, part reach extend to will already and looking One a – year. partner. Formula to in and with in dynamic and are of is announced XXXX its race our country

around the We’re in in race develop the discussions including discussed additional calendar, race previously to continued Miami. opportunities

an Speaking heavily of October. in with high-rise. Coulthard The an our of festival social which and XX,XXX doing estimated which, was we media. former the with racer, Boulevard, fan Prix Biscayne, FX Grand car FX year in Redbull top held of stunt festival amazing driven in on Austin commentator weekend the David spectators, live which and the Miami rundown The with featured an by car a kicked by doughnuts U.S. off which in overlapped fan featured final attracted fourth

this I to it out. you haven’t seen If encourage video, you seek

areas. host season, XXXX progress in attract our fan engage currently We made the further we build will brand XXXX. toward in look festivals our the and to FX as and to other and fan a continue expanding anticipate festivals we fans commercial way main As

we multiple key platforms is that part both fans additional matter business, content On to our of on paid compelling completed and renewals surpassed include opportunities. target and offering We existing new reaching the television television and our attracting digital the in that free ones. know platforms

in forward product, For in mobile launched to which a and September, look our launch nascent full OTT commercial offering, further a we we platform XXXX. the enhances

globally One live coming race drivers the on product since positive. with the which the have on drivers We which to championships, in once-in-a-lifetime the We selected teams, racing has improve been early process. but of broadcast – of entered and prestigious years, FX some giving names Formula year Formula balance nine the XX. new draft This a off-season and The in following One stream to the completed backing continue on Facebook content was the in motorsport official response FIA an the most TV offering events will been released the of via event intensive teams game two our in opportunity qualifying have August the launched XXXX mobile second FX of networks. race platform over the world Esports and just ProSeries

events about XX.X Esport grand – winner season Our $XXX,XXX. the we on semifinals. we – and views this double where look this through million receive million XX million We the time what were same over were accumulated the have will impressions XX later where month last final social media, the forward to year

fanbase FX rights our our Balance with commercial this these Emirates and last sport. ISG deals our offerings, philosophy Services, service our of deal provide with out and Esports New were in of a continued ever multiyear call, sponsors expand reach some On with offering, Sponsorship new FX on will offerings point to ProSeries. during on entering sponsorship On connection data as partnership talked produce I’d contracts how broader and of fanatic with forward existing look like Amazon and that will approach be a will building and first new the to real we had offering sponsors proposition existing regional the sponsorships. of and full the New area receiving and grow a XXXX, fans Regarding these and of done FX to to here Balance into about and focus deals many value to partners focus call, the with XXXX, and include audiences. Petronas, listing great momentum. and I many of focus in to the on array the of we expanded needs XXXX. both new betting continue an XXXX, renewals and tailor enter benefit sponsors in DHL wins which year I’d sponsorship sponsors, with partnerships we the strengthen and we’ve of the Web we The our

with on on the what We arrow XXXX, cars the action changes progress in and continue to unpredictability. to regulations set reintroduced Ferrari alongside more. larger fans. to the make agreed making progress improve lead governance. to side sporting to in and his Max distribution competition, Ricciardo and cost increase of next a an drivers Verstappen, the we’re Leclarc amplified of by for further The should Charles our of lineup We’ve improve to on Agreement, revenue Renault, so-called be changes in into motorsports the to this has the season business regulations next place Fernando the to are to sport the for to and They’re of Pierre our Concorde we changes going build Redbull list which overtaking season. will Gasly number unpredictability eager at Alonso driver Daniel and track moving is stored, excitement and on heading the regulation broader I’m often of regarding changes asked about see structures, and retiring, next season focused

our interests season. details of teams, long-term and we’re constructive the the working the day, objectives discussions are towards end for agree on at the the finalizing XXXX aligned. constant the with During We

busy these team all initiatives. Our is of on working

our With the largely corporate in organization hiring to place and now continue One and grow have functions for complete, long-term Formula will majority of success. we for build the

Now the I’ll you. back turn Greg. call to Thank

Greg Maffei

both you, Chase. comments of Mark Thank the and Appreciate Chase.

there Investor in will XX our As will New York Annual City. yes, we a be reminder, Meeting video. a And on November holding be

week. to questions. like our please you would appreciate homepage. use it see up of forward you operator, continued interest the in seeing to agenda, that, many Media. I’d your If We to for open look and We on And register Liberty with like the next link

Operator

[Operator Ben Swinburne our from you. Morgan with Stanley. first question We’ll take Instructions] Thank

Ben Swinburne

you’ve something think the guys. going and you device business marketing its then starts year multiyear from the Chase, a back you a project, just in launched steam digital a this think guys. you to any And it’s and fits season, I think programming of morning sort and on that big business a a and for Is ready the hit good opportunity it Is a comments of Or ready. growth streaming. your color still sort to beginning I XXXX of that you, the had year, just that and full tech getting XXXX since year Thank ahead terms this of it at the been have I follow-up. on you see can perspective? is set stride product?

Chase Carey

You’re talking product. the OTT about

Ben Swinburne

Yes, Yes. exactly.

Chase Carey

it to think, Yes it ours beginning race ended data get I say multiyear the It’s this a to that’s more year think almost believe project it guess where project. potential. buy. it’s I get – than But we for – achieve a a I being of up didn’t like its really guess, I means We buy right. It a to. similar can it the launch season, at sport season to probably a I’d

incoming tech it technical bugs like. more players as into of a more lot are have than We who’ve gone you initially, there

probably I were We not but be there, wouldn’t hoped think were. we they they surprised.

really are out. a I in there three this think so – this in been steps has building year And getting

First is Customers, reliable. tolerate the to technical glitches. be they platforms don’t got

define second, we buy They content People to think, the I technology. offering. buy got content. don’t

and sell almost the then technology story, So content tell the got We on define work, but we year didn’t got listings were we because platform then technical then do has this it. the got done market really the content market and – Got to latter offering, and we sell sequentially. stable, to it. get to to focused to make

the so not September. and it we that much It’s first mobile following on and sell of the get the proposition market today, mobile place – I didn’t desktops we And or platform, the devices, we good So time critical. feel it bring market in to I it. think until on technological about think really people is commercial mobile XXXX to adding will be a the platform as follow

The content continue improved, think I first next breaths But though properly. terms is that next add years time over really it really depth some the and to year in the will will of adding offerings and product. the couple market of – archival we content sell be data of realistically. will probably and we and

year, customers at did In a over-the-top is partnering of going against I’d sort So clearly, still way XXXX in one, think the of of into But sort it find launch. will And was to I richer it’s more And more them this run were your we’re experience those And it customers roll a compatible. – countries. were ready hard-core product. broadcasters market of commercially exciting we demand supposed the is year benefits one. everybody a them for tap I is our proposition. getting year pay this think who Actually, as next a that a linear basic some, working multiyear renewals push did, to up for than the, will is way traditional one product have of this some this platform to really targeted – a not some products with as opportunities to say it out, the and and developing to is it. different for a the with those aggressively at promote different fully we because we it them the with to deals and to the of

days be evolve. certainly way next long will anyway. it early to but it’s Certainly, going to continue year So

to of market. year the vary market as how commercial proposition. country take it a we it take first will really to we Again, start Next it time by will be

Ben Swinburne

so ramp? been it couple you try at at been the look whether if with Greg, then, and there guess, it. because I’m to over I of can having market it. last here. you wondering unlock think structurally is to with cheaper cheaper. is the Got answer point question, it’s hope seems we Nation is stuff anything the address you both Live investor really do shares the executive And stake like business missing two really then and value something has and starting an when getting least a so years, live I strong the now And an you you’re When

Greg Maffei

me kidding. investor? answer executive to as that want an or You an Just

Ben Swinburne

You get to choose.

Greg Maffei

then well. I be is cycles embarrassment purchased an up. where Look, done, Formula performed ramping to to we One, needed has building probably someways headcount have investments it that be personnel. there ramping very riches. areas investments well, these think of knew made there OTT Nation were story, to a a in a we we up. knew lot that made efforts in which be some that and – be We And was when of seemingly no would Live of

longer. Some of these things would take

most to is I a think as coming think there. upside The Agreement to of you what buy the things to the stock think the as some the we positive yes. preception that’s overhang about been, the Chase’s could the Concorde heard you fundamental have surprises But on when and the around probably surprises past I there downside direction not peices And comments it always, business, uncertainty of on – bullish at. the and business. trade very remain I

think to I structural, something complicated. Turning it’s

discount we be And some it stake, argued full item disappointed Sirius in side good priced would fits Liberty well stock relatively transfer on priced be Nation Today, if of think to and think that role Nation I full expressed but Sirius has hard, I Sirius SIRI say Live that better music a be we live Pandora. a in would the which buy to a our fits types trade. be – and the here Liberty relatively also the holders over given that obviously that Liberty with Live could used would different ways entertainment across. before

create would at Sirius for different realign better solution the and don’t an that unless short Liberty term the have structurally So ideas various the I so that to goes. don’t be in attractive – obvious see I we’ll where times see side we pure process a values FWONK.

Ben Swinburne

Got a it. lot. Thanks

Operator

David from Karnovsky our take JPMorgan. next with question We’ll

David Karnovsky

impact the and things then also only financially and administration on but Just how a like view, team potentially does budget question entry healthy India’s the your How profitable exit independent for be general. on for in should FX cuts not Force Chase.

Chase Carey

what I a that discussing proposed saying healthier said, and think There business others better, goals. to everybody. two it to we’ve costs. we’re that been probably improve competition revenues to as action, they One make the on really model and it have reinforces is we the sport make initiatives

the I revenues. The compromise find business it to not to I think to the right that detail. model is work ones going with making because today there are the be, hard the challenge we XX different where in should and that are the perspectives India, and address agrees Teams of details always on require agree is, in the of need details, think the importance goals. healthy. Force but I sort think everybody think I reinforce it And

can. I think we

I think, sport. we healthier model, think and healthier business it make actually can realistically, I the

attacking places dealing not is the actually teams like compromising of are one it’s these quality things – the where quality with of of So costs the competition.

need makes much the make a people I potentially track of exciting be race it’s get proposition entrants are recognizing and us, for great could it that potential enticing And where there, old think healthier and are the in think both it it, for more we I that breaking with think to get for to actually but it. the fans. it. new in healthier addition for some would to them enhancing today it we habits just them, It’s think teams I for

both perspectives. from I the business it So of model think just importance that improving reinforces

David Karnovsky

to And negotiation post-XXXX? feasible street with a provide Grand regards you where you Miami? it the Prix you on or British other there the just then can in Is on is And for can tracks follow-up. separately any to update move Thanks. London? there race provide a do to is update then any stand And this Okay. your race

Chase Carey

we ongoing like the with think things healthiest negotiations, and negotiate to past, as way partners. I to deal to don’t in said seems sport Again, in that’s think the I on this public

don’t inside develop tent are that There I on want things got that think And of discussions ongoing. a was lot options, Silverstone for one provide race, options. continuing works we’re always we the value place get to sure to an the commentary of So other of to a us. part we is active array We to that’s make discussions. but we of the

in make right make that’s we a to fans the for that one to fortunate place develop to us things for a best and a for decisions We’re sure options and and race, good and have place places those both those we can more that racing races are again, be, business. we’ll now and continue than able as we All and not get a race clearly, street parties lot ongoing involved, of I’d guess, parties I which a it’s matter say you all engaged. of those. got actively and sort an you’ve navigate time-consuming are it’s so we’re up that Miami, macro process when process, of a uncommon just is it’s parties micro there through to interested active.

help. a I fan was festival think the

great was thought excitement. think was energy, great great a It everybody I it Miami experience. in

and comments, As meeting unique we really, were positive it what the almost about recognized to a sort it. the exciting I got as And all comments people. reinforce think in think bring. I said we help really XX,XXX event of And I and world-class

it, that’s takes it you’re think that constituencies when but I whether Miami, there’s deal we have through working to in a process with. positive in step like a time many So

the remains So we U.S. are – certainly, priority.

engaged We’re just think event Miami signature but in U.S. the for in U.S. not it’s and great opportunities, discussions elsewhere Miami a worldwide, us could the be in just really so we not

David Karnovsky

Thank you.

Operator

Vijay And we’ll our take question next Evercore. with Jayant from

Vijay Jayant

you Thanks. Greg. for One

be business want get real studied time? the really the between turning Are synergies long your And Pandora, someone on – and this momentum would Pandora for On XXXX a If the setup into for that possible, the the if size there outlook. you the just around growth? Sirius who combination opportunities, about combined or of two to obviously, us? business as Is investment sponsorship. Chase, for years could you sort purchased. was have of asset that You And fantastic. healthy for since talked

have You some coming from cash deals meaningful step-ups.

You have any hopefully to in OTT calendar starts similar scale. relatively product

XXXX growth? start healthy to see is we year the Thanks. So should

Greg Maffei

both cost into And synergies. does more being for that I’ll is first, and between not strategic Pandora, the things may from months Thanks SIRI at first. will to latter coming synergies Vijay. are which there some on expectantly duplicative gets and tight somewhat are Lynch. Jim Pandora. worked go I’ll obvious Mayer scale I and to cost exactly some on I synergies Sirius be that in about expect take revenues that the hear and fall side, And they synergies, How the organized and be through. that On think Roger additive there would still

we we past of On an I by the talked sense is riches how the our cases, and a revenue as we consumers, our in desirable to the side users, have in about and have we what the embarrassment the some on time we goes in we content like satellite of expand do. beloved think strategic and system can our have that side, errors limitations – through niche lots but – on, and

bring if better hear across. do fixed cost, can The anyone there on bring fixed work are to done things There’s our opportunity content segments can out cost at were that always you is mobile haven’t are is our million the ad us The those stronger. accelerate exposing SiriusXM. XX going where generally to also to the at bring car scale they car, consolidated are few which what or be has more done. more new better because strategic on obviously I to ad-free at So and I a appealing. Obviously, ad-supported. listening guidance, together do has do things is share four we margin well. clearly can into And things ahead across more and share they that us. interesting the I from experiences aspect, around them best their where users Pandora more product not ensure of which then hear opportunity are lead to unique in where The vast scale Their monthly help a to Pandora the which you subscriber roughly the their Jim help is and version these sell, as opportunity. the And of expect advertising in users opportunity as can majority SIRI are content them of business, the are they of with in of flesh even out, is outside broadly car will half pay, Mayer Investor Day reached sell you’ll are content areas Pandora SIRI around CES side are a revenue help enormously of content mix good time. of in active has ahead them and that, are is forward cross far SIRI, the lifetime examples SIRI they we that the relationships XXXX experiment that ad-supported active of the which have are about Sirius nature those the and this XX and a to aspect, to the clearly contribution do opportunity an can for given their of Obviously, the where Flipping a interesting. of expect podcasts work some fashion. think ad-free some but and five pay together on-demand subscription, times our when places in of is more Those go million value higher. the quite you’ll the monthly attractive. And Chase? the more mobile-first like big relationships version, that far Pandora we to

Chase Carey

And Formula process And XXXX, rebuilding, think do a – said, where I of do I through sense, I think as of be in to Greg I I XXXX have in One, guess expect XXXX. – expect we you in yes, think We’ll we’re some building, XXXX really terms steps at yes, the forward. that’s XXXX and a and start described going to forward. in foundation XXXX it. many and step go we We’ll building ways so as

stage feel expect and being with more at those XXXX. those think opportunities talked building. on we where perspective sort actually investment others starting XXXX investments I of do and early we the deliver through And process four-year in in again, come to XXXX. good sort on, that And niche a early So to four-year are. benefits mean, some in to about and of the I the coming deliver we with we’re three- ongoing is to we the three- do about pretty –

have but forward, further to believe U.S. going the I we place. a of have, mean that we fairly step the about we and We’re lot in down are certainly clearly, plans there’s a not still we things talked lot like China road.

As I next going is be said, to year. certainly OTT a early very product stage

our the be focus – not of be we to term the prioritize business for months and this make continue to to going knock also I sort trying priority to the want in is over and three So mindset into sure term. where three to years, yourself – short on I I think long think –

the we the XXXX, profit do I are that and the deliver sure over into opportunities we Formula that prioritize inside said, and building – to to it, maximizing we opportunities start more think we exist the opportunity. about sport on to make go excited short-term want expect grow that a really the value we certainly, believe One. we being But that deeper

Vijay Jayant

much. so Thanks Great.

Operator

Wlodarczak take next our from Jeff Research. question with We’ll Pivotal

Jeff Wlodarczak

Good morning, that Chase, follow-up. we the for manufacture engines, And at to Agreement, this point, expect done new to got couple engine build be for the And XXXX? given especially the is in and Concorde engineer realistically, you probably new potential something into pushing a teams, Chase. I’ve XXXX? then in time

Chase Carey

by a that. changes by drives done, The to is having them We’ve back first if it discussions Yes, isn’t it told done in of like get creates say something in that in we’re talking we everybody have would pressure everything private getting Obviously, XXXX. is rather us conversations of public. to goals be and done focusing because time. good. later sort it private terms future the in of just they’re again, challenge targets helped but on to on – done are I in the it’s like I than have a the deadline have for healthy that sooner on has guess, but versus Concorde, all conversations these think to I’d about there XXXX, to I I’d have think done, I it XX, sort things we point go though. to XXXX, our effective get December

We discussions. it’s externally different target out to dates try I create that constructive have think a but don’t to put to us internally, those targets dynamic are for around going

the think discussions good. have I been

helpful. And And in have I think ones discussions, this the I teams are the feel as out they’re discussions and that at process. we’re way, put on I that not think right about we it. but ongoing. process, a bring XX the going conclusion with think good best again, the been it publicly to hopefully, and don’t deadlines and partners, to we’ll point we have expeditiously, the helps

evolving. we rebuilt pretty a we’ve significantly It’s for engine. towards of actually really you engine, that In got terms ways Agreement of the deal the the many And – constructive we’re a really the engine engine. think of as have really sort mean, a path engines put to engine that but the actually more ago, a I something teams. place, things in good the with how well year part in evolved isn’t the headed forward dictates governance through I Concorde with is probably conversations are can going

path discussions, the of I to all to it all into we series think improve and and – with an we I sporting that that. competition was teams, stabilizing got to – and existing economic help regulations marrying think more engine right the around improve I technical address think agreement issues a came the as the that

those – won’t process sort still Concorde really of place the Concorde are And Agreement. they in Agreement The those governance of regulations put evolving, you again, sporting will the technical part won’t out. but lay regulations, they out won’t they of those and which Some by be lay will. they

agreed simpler, in good think, mean, goals power, I days, more now, cheaper, let louder, I So path. right drivers we engine for the the pretty early actually, from we’re on our a drive.

path as then through what the we’re achieve. technical objectives trying those forward. going be sure regulatory road, to think aligned I again to I alert, on to we think engine and evolve pretty that, And our, stay the is to we regulations is to the process. stabilizing and the felt went refined through regulations, think we’ll and be to the I’m that think the engine we and sporting well wanted regulations – that these continue best I Down we’re through agreed our path with existing I that, achieve well through pretty achieve on but continue

Jeff Wlodarczak

sort you’re revolutionary? the attract you than And path evolutionary you sort of at comfortable the more of feel do it’s that on manufacturers So engine can outside price...

Chase Carey

important. regulations that’s are think why the I

engine, the everything there came always of have we with are agreement I it by new whenever think and engine. you unintended got got every think new starts of really to consequences what everybody I persuaded out an a sort stabilizing over,

consequences test I I for And throws it is so been what new stabilizing agreed example, regulations which and the is So dyno the against test it. existing, of one more out for addressed ended, like probably whether stuff it’s is probably came expensive the testing most it’s objectives, is because, engine. actually things think the because through that I time, open or when a time, really wall this the it of we stabilized mean that, and it’s the factor, lets you those degree existing economics

money of endless business spent the be want example sort and how and players. enhancements the an to existing to an both make important and from to can viable tool attractive and perspective you list an address time is and a of engines, sport for as theoretical try a probably So as perspective degree competition much any new testing

prior engine hybrid new enticing interesting is out for be I a we So basis things the this this that the that is ago, enough came develop more And sure and we mean, the to of but actually one make have I anything few the hasn’t any is we is want technology it, think that miles that the performance the – different. want with a efficiency well important, today the to been stories to gets of beyond told sport doing level, path the I just path there engines. think fuel-efficient be is clearly one existing engines we the at are than not to and engines incredible of these we And to else a in it and engines. technology incredibly out years was much think improve new. intent of for

road that ways top at So the the have relevant sure of in technology today in to is the wanted I on the but engine in we of of many that we what’s think at pyramid to continue going make was forefront hybrid the terms world.

the So is new things. right I well. And teams And think it things engine achieving part think those I I what think lot that actually we the collaborative. going a forward. manufacturers it’s all And of think is of I into attracts it’s that just as hope

a it as going everybody. and to constructive, much agree was I himself forward more in get man do more opposed was discussion But is are on it sort to for path the on past of partnership much had best is it and we’re of there think was new. we on think think the for existing some there. I in path it’s path the we’ve every think and that we’ve path to and broad encouraged, I the I for the goals and agree in landed agreement Again, trying right

Jeff Wlodarczak

Thank you.

Operator

Kraft question Bryan Bank. Deutsche from next We’ll with take our

Bryan Kraft

two and that from expecting and relationships to I color Formula betting on if still the what to what for advertising And you the contribute rolling you’re the to major for maybe agreement is can Thanks. it XQ? And timing ask Petronas the give to talk I benefits then and yet that or the the means the what us ISG high of the just you. markets? about questions the I some Chase, come additional One could in promotion a with are recently you in was and structure One? economics Formula revenue wanted third the signed for those quarter? separately, across had bring did wondering Specifically, at you betting level, AWS

Chase Carey

don’t my signed signed were – Petronas the off at know top the deals actually, those certainly not during when during impact some was was There head. ISG quarter. of

I think probably pretty late the quarter. was it into

the will impact percentage – more – I terms in know. bigger quarter, of So in XXXX much third deals in XXXX. certainly in a more XXXX don’t impact yes, be significant much actual than have those But the

at end I back third think it I – the it of the quarter. was think of was but sort

way. a – betting it, healthy I it – interesting, tools I responsibilities the done with make opportunities want Fans type want makes make I makes to exciting it its a sure great makes I others, it, around for of it’s some think in it obviously, look it’s fun to that betting appeal a is betting. the engagement the to it. ways We a in fantasy more it think think integrity enjoy widens We go American we enhancement think a its is football, experience that – form in I as I And and, have which better an done NFL proper but to the clear. is business think of sure it’s it’s sport us. more

to we element so a think and the bet and and not expanded probably betting we’re provide sponsorship not things both of betting on in ways. they’re sport can us – it’s on I sort new interesting sport be the providing but not that available might is a engage sport interesting and opportunities with today, and new of not set For the more

develop be this great enhancement make do grow you’re integrity in we that and it’s we bets responsible it ensure fans there sort think to interested sure of great the both to for things you additional and and bet. that to have dimension properly of We properly dynamic But world we And to recognizing when oversight places be of betting. when anything, we these have have policed and sport and aware on, disciplines are is to additional for can around a and maintained. a

Bryan Kraft

Does at Formula Formula that revenue One the share Or betting sponsorship economics it side? the is in from all the One...

Chase Carey

we’re – primary betting I think not the business. in the

aspect betting not more it, So in we’re the but we – not in the opportunities to with of engaged betting we’re gambling business. bet than the are promoting

Bryan Kraft

very much. Thanks Okay.

Operator

Yong Amy from question next our take with Macquarie. We’ll

Amy Yong

Greg. Thanks. questions Maybe for two

How do And does your them credit more make bought interested? to And investment? that your it What on monetizing you going about buying SiriusXM lower to versus – now think iHeart, than is Thanks. apparently not do on is think more you’re why from What why and it? on you how First for debt is then stake, it is you Apple going stock. Pandora? think we you makes giving increase plan do sense LSXMA own change view? do stock it. when the it to that The you back

Greg Maffei

work, our process just to how will then It be will debt increase the don’t think investments equity, and likely of the start iHeartRadio bankruptcy on like the business mix that this I that going at strip CCO looks proceedings some the iHeart. I’ll with giveback iHeart and time. we’re equity.

debt. be comes see. think will long-term all I hold like watch that don’t equity. equity We think if how we’re this stake. I holders don’t stake, it to Our pass, increasing something We’ll at just be goes. of iHeart might CCO our or X%-ish. going of We’ll time to we’re

but I think there’s zero chance Apple buys this. I nothing guess is zero low. substantially

it where we think we mind. up I these the Maybe gets cleaned arbitrage probably itself a a the talked an low that X at has buyer it When me, and XX, the various good price be were X which an Maybe against at of yours think been But our market stock infinitesimally over holder one the expect – you’re price. I shrink. current the to will actually buying number about good the term, about you Yes, continue terrible issued we – that for pick higher when issued rumor past, pretty issuer and against How price, to XX, in can price, pretty ahead market looks good you we if of for about before. X long feel fact some didn’t place our my a look but outlook that paper. pick that don’t talked so of of I on think the that below XX. not fraction times. think this about You trading we even the love it’s iHeart. in to that’s is at good we we’ve a a my bet. it’s and a you And

available X the continues term. And cause to will as think may another. but over that these will that we I is we’ll tighten be think shrink you float or XX at eventually, Sirius to expect short-term lines stock – are way one I the in happy perturbations going long bought cross

Amy Yong

Thanks.

Operator

take from Citi. the We’ll Bazinet question next from Jason

Jason Bazinet

last I sort don’t broader or have five likes Carey Mr. One, But Mr. Carey asset the because Mr. side for I reacted reported six over Liberty this you’ve is from and clear of build this your moment the and very growth. guys Liberty Formula know the very about if team. disappointing been for sort buy bought confidence favorably being and think of you years to of even foundational quarter the but been you have though every a stock Maffei, lot do long-term have the in

question is my So this.

Like, mid-single-digit, single-digit, As described expectations for low a you what high would helpful. in what forward, quite of XXXX line like failure take growth? this looks success it single-digit? to XXXX, it help dimensionalize as range like side what you or looks Is step is XXXX and be reasonable the anything and top buy

Chase Carey

to sort forma I anything of wants. it into quantify, we’re I to can be. we trying he I expect I trying guess, the I’ll – don’t guess answer. to going get add Greg pro think of guess, guidance it’s where

in few business particular, put our you done. think in be why something you I think later, maybe months you was takes was that so a time find quarters into sort opportunities, but isn’t I of think a a equally good it them. said people you’re three ago we race, it opportunities way, things some I that some an XXXX Usually, about year. about tried And what get find organization think once this to or think few the In always talked fix you’ve something about do you a And usually a clear and those priorities. know leaving. or to in to always it last XXXX it’s going to place, ways, I surprises sponsor are

think address that think, things it all be handful the I get working us to for opportunities through and we’re early many where of should we are be we where three we as in found clear not be everything the priorities I ways, get-go, as And grow to like when in going we I XXXX, said start on quantifying to described years, months. it, trying to think So earnings going get – be initiatives the we’ve to four those quarter. head where, to to the wants three – that as of we the recognize at four we’re of I but I to gravitate we there, But where to that components. to not we to it. quantifying that our short-term And market I tried can to nobody quarterly opportunity but don’t guess sort from going road those ignore down not the

step, XXXX and It’s step we that initiatives drive the step. things business. XXXX – one XXXX, yesterday Some the of can beyond, calendar race this not But a the announced as opportunities, the a the in evolve to the and in XXXX we we of Vietnam. described a is

reaction last startup don’t our And it. came think And to again, describe in think we a year I realistically, process about orderly good sort challenge realistically, short conference describe whether pretty has organizational for that, what short is an time a of been in the you’re to I said those building we’re into. we should behind investor it. And it’s – you focus always there turnaround. are. particularly feel we business really at happen. very expectations the where XXXX. and Things things what in business takes And whatever a Again, a it I term, trying go. And I you think follow think I build, where when there’s a

to about world – never and we clearly, execution as and things to recognize we we think you The And exactly real work equally we But that’s Greg think do. to feel feel there earlier. good So and but where we considered, are be. is feel is I do pretty I always expect there said all as surprises, are. – I it think

things some fixing have thought is there where something from and Now a was than area it didn’t past little or know than the opportunity some it’s would bigger we you things an an planned there, harder that be. whether we

Greg Maffei

– that. I’ll out, blocks the can, the syndrome. gratification I the credit us market we if We have rightly could But market draw just also immediate have sometimes So as gave as readily appreciate you add the points comments, out, to Jason. from pointed expect Chase

building of of substantial things capabilities. done that and itself, places been quite out and a where adjusting term. may experience, We for the for right hiring, the including business laid We’ve including make things absorbed we’ve have example, set bunch longer particularly and gone the foundation have with to business ahead to promoters

sport I more think direction. the but in faster? faster? sure to we very viewers the is we’ve We that wanted, lot Chase that’s could’ve going I’m we’re the comfortable asset do, I’m term. we’re and long Liberty building wish I sheet balance we asset flexibility. And critical headed I it more we think think to happened and be for we’re think wishes building driven and happened a than that Always. a Would right bought seminal it it the I

Jason Bazinet

you. Thank good. Very

Operator

And with BTIG. will from Brandon Ross our we take last question

Brandon Ross

question. thanks taking Hi, the for

For you SIRI, of mentioned you’re believe M&A SIRIUS? think iHeart. times at that couple for sense use And do ton this of flow to further invest the a a you any capital for that right free is best in What there Greg, on There’s you unlikely of cash now makes point? there. SIRI is

Greg Maffei

to of game. we long can trip Well, at a to play at out, the One this I think, one actually time, whether just I like it said or the SIRIUS or be want we point Formula Liberty, at advantages,

arises. a reasons long-term free and at opportunity perspective, stock rise long we of being the they bunch related The price because the are look team a has to – long-term a you a control and note, right out substantial SIRI, the cash shareholder can held are and game there influence who shareholder are flow somewhat rightly for Hopefully, is interim on the for play have has a perspective. We when business our delevering we of the there. cash of hard a at program, SIRI free the is I’d of the repurchase work been SIRIUS proceeding has SIRIUS actually and given I where where quite price versus that has substantial so market the there’s during would note the the at of cash amount been nicely. expect a the free level. current price Pandora its transaction. flow will how is flow bunch share they have that dependency management

to three three a that’s And constraints short the due think – differences by be greater. the in we’ve they’re borrowing don’t M&A in financial not to do. to substantially take have as mind do just a level. they do to less absolutely have – marketplace, substantially get price. business constraints times, management thing those, massive times. due at SIRIUS flow that’s capacity be in And bunch and share have see Liberty free got through do can a They through I substantial got have roughly with pointed the million out, We but term net I and to We their in they be of real we’ll of I and to infinite my both directing but and try own that We subnet not the cash dividends. suspect, capacity. advantage arbitrage fixing and the be opportunity, $XXX do to we capacity, they’ve Pandora, right because, have going year-end, absorbing

Brandon Ross

much. so thanks Great,

Greg Maffei

we all Thank to you and your questioners of for listeners. that’s next hope see as very Operator, bunch quarter. not, And Liberty a Media. next York. time And to said, I to our you think week in you we’ll if today. the for speak New Thank you much we in interest

Operator

today’s That Thank for concludes your you participation. call.

disconnect. now may You

Liberty TripAdvisor (LTRPA) 10 Nov 182018 Q3 Earnings call transcript