Liberty Broadband (LBRDK) 10 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

Courtnee Chun	Senior Vice President-Investor Relations
Greg Maffei	President and Chief Executive Officer
Mark Carleton	Chief Financial Officer
Chase Carey	Chairman and Chief Executive Officer-Formula One
Vijay Jayant	Evercore ISI
John Tinker	Gabelli
David Karnovsky	JPMorgan
Barton Crockett	B. Riley FBR
Jeff Wlodarczak	Pivotal
Brandon Ross	BTIG

Call transcript

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Liberty Media Corporation 2017 Third Quarter Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, November 9, 2017. I would now like to turn the conference over to Courtnee Chun, Senior Vice President of Investor Relations. ahead. go Please

Courtnee Chun

Thanks, Hope.

financial reflect contained on today's including any in release forward-looking within with adjusted issued of such required website. is Reform which to Securities also and Act the competitive involve statements to to XXXX, as to in SiriusXM. Media by issues, to thereto and expressly statements certain These on available events, of the will service within Litigation changes speak Act actual ability like statements. non-GAAP everyone cause this Private uncertainties any today, and that that we'd conditions business historical businesses use undertaking only Schedules products conditions on Media. many speak These Reform These results Liberty that OIBDA limitation, regarding statements and of including of any expansion; issues facts. of could new and about press change such statements measures, materially our the development; definitions any On include expressly promotion meaning of into including any Formula completion Media to remind One in the the expressed any change of differ Liberty herein Braves X, races; the Liberty statements product expansion includes this call, or expectations or Broadband's or by updates attract disseminate circumstances the in Broadband. or adjusted at launches; or begin, services, implied from future Liberty to XXXX such or financial potential; which found risks of call, change forward-looking any of results call we any disclaims as those of expectations such of forward-looking partnerships, expressed This statements, market acceptance possible change we These revisions improvement certain without or undertaking based. and disclaims performance the reflect marketing; forward-looking statements regard forward-looking Securities new end or with that strategies; and statements in updates based. X, any commercial many any our certain statement statement any the the materially can of only forward-looking of which and including circumstances Broadband forward-looking date on of to could the capital cause obligation Before discuss and risks Private differ market statements the the in terms of this or Liberty from those FX new actual call, be obligation disseminate acceptable availability earnings of the revisions thereto regard or to Liberty is and implied customers, is to not mixed new international including content business; meaning of sponsorships; contained expansion for increases reconciliations, The call events, date of forward-looking retain EBITDA and regulatory Media's involve X, Litigation statements future other Formula One herein and Liberty to are opportunities may any uncertainties brand, distribution matters media; or

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

Greg Maffei

Chase Carleton; Chairman out the you, of all Carey. we'll thank and One's and Liberty's listening have on you, myself, audience. you Courtnee, CEO, and there speaking call, Today, Mark the Thank in besides CFO, Formula

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

season. competitive One at looking Formula Group. We had wonderful first, a So the

out and Chase discussions the multiple build working sport drivers the During on and continuing races. do multiple work have I'd team sale longer-term are remaining his will also offer season currently reviews, had championship debt. the fully all K FWON. by now selling we note favorable that exchangeable to we If we to original completed invigorating teams, for secondary subscribed, offering an competitive leaders. to exciting, exchange shareholders. FX complete additional winning an the multiple excellent the winning and

Operating Live also also in revenue report, strong Turning Nation tickets XXXX. quarter. to strong XX% solid Shows the through delivered earnings up Live a had outstanding Nation, and are an doing XX% for X%, AOI are was Michael XX%. SiriusXM job. his team was Concert October. which at another income up is up up yet and quarter.

was X% $X.X revenue quarter up billion. to Third

income quarter a adjusted quarterly XX% record XX% EBITDA to net to million, million. $XXX and grew Third of rose $XXX

October just and Braves ownership on XX, meaningful The retail sales, a time budget. first The is finished We've season stood concessions successful SunTrust of below As at increases ticket development and remaining Battery our XX%. Atlanta on had in Park. revenues.

through Braves any read, working process new ongoing. it's until complete. investigation We may MLB general that currently further is is And alleged certain on that be the a for have you violations hiring won't are the As into manager. we an there of investigation commenting

quarters common was view, same and video market opportunities Turning cycle would plan Bright we forth some also the Charter's has in the and questions of working The when since note repurchased confident going simplified the connections. pricing are will similar knew about of during when place, and quarter, broadband evolve, over plans There digital upgrades. market stock when of be We had how just $X Cable and putting to inconsistent units. the all Warner I'd the created Charter excellent Warner was invested quarter. a to the we're we Liberty in in was but sort Time acquisitions the as by remain service in it through Charter initial that at Time Charter billion the of approximately the market Broadband. through there was and House our abated. reaction set but upgrade overdone solid that

turn more let me Mark to for that, with our over it results. on financial Now

Mark Carleton

Thank $XX held held attributed Liberty million billion value excluding stock Group $XXX cash at of approximately, as attributed XX/X the you, cash $XXX directly SiriusXM and these end, The million, $XXX quarter Greg. Braves by is grew against cash had $XX of SiriusXM. of SiriusXM and and At investments at holdings. there The in million SiriusXM liquid Liberty was of debt investments liquid million. of

held liquid Formula $XXX One attributed million and excluding million, of had cash directly FX. cash of Group $XXX by investments

comp, Group Group Group excluding amount had attributed of Liberty debt the market a credit OIBDA. attributed net around X.Xx before, principal as maximum billion billion allowable to at as set SiriusXM. of of September XX Group. compared million One five it debt total million, debt ratio facilities And We've with of OIBDA of principal $X.X with not including business the The SiriusXM which $X.X was Formula Braves we've incurred ratio of and holds $X at quarter, securities of are SG&A times One Group to attributed net billion, each One market which attributed of Formula includes of FX's their debt groups. of amount as covenant these and leverage had corporate-level the expense, of leverage X.X. FX. as debt value allocated covenant $X.X for approximately Formula public the excludes stock of about total ratio $X to directly six itself, attention target Braves spoken which had that the $XXX FX. $X.X defined end, debt SiriusXM In a Formula at billion in One billion Formula quarter ratios leverage includes pay at amounts billion, Liberty $X.X XX/X, and Group of to directly At debt a One

allocated the million $XX stock-based was Braves SiriusXM Group comp, million expense, to Group. was quarter, the allocated to $X and SG&A For approximately the including of approximately

about turn Now I'll over Formula your back discuss One. to Chase Yankees. Carey to sorry it Chase,

Chase Carey

early years and first Thank give the criticism and new you, under down sport of number and of team, positive important the future the improve to some us winding to after concern. our key true the priorities most our its Among management to was goal think race. year this ownership and One a to excitement we It's Mark. new really start. for our days in momentum our have place, We're we're we about good off the a initiatives organization season largely first, are, build Formula potential. now enable pursue to but still to With begun

have with rules. working the and on FIA tracks We aerodynamics, costs, on groups teams, the on the race teams and engine,

benefits better, Our competitive, There's action the wow the races the find better the to to plan on but better bigger the deliver even factor fans the these the sport We public all will obviously be the teams. goals, for us. us ultimately teams with not so different even business to about of the direction there to of and broad model and goal to details. agreement compromises to opinions and is negotiate a work in that make do more

We sport. dramatic of have out opportunity to actually exciting and aggregate sport hundreds the cost millions this of the a of deliver take more and

expanded features events take to fan another hospitality track other in of look exhibitions, deliver and while In will we expanding through the step to cities One. options spectacle Formula zones, improve we Second, race. host engaging the around forward more also fan engagement XXXX, the the at

Third, race calendar. we're to the enhance looking

choices few platforms on our but with to signage, step our changes for engaging get platforms. digital to to and larger a virtual be sponsorships array a we all first exciting products more like Fourth, set set to activation activities should while at new will schedule years digital the sponsors potential and it XXXX, Our expanded It will provide opportunities XXXX. events, initiatives sponsor develop for of but XXXX is continuing more engage opportunities. with the have feeds, our Fifth, TV TV partner other some forward. expand regional take and portfolio Initiatives existing sponsors. of by be, diverse with XXXX where

to which television for digital our fans. We traditional is around our of a content product at major the passionate world. over-the-top will years. potential be initial next targeted in bit We're the in product a season, extremely become for will competitors arena the Competition new the most mixed about a bag excited platforms few also our next launch

also beyond of emergence content event these particularly the our in opportunities competitors sweet we're our a However, our as Sixth, spot. myriad value tent content, platforms of global of can since unique transform poles. is traditional huge their pursuing digital the

over One conclude concluded in we're the world's but merchandising building in transform game recently we the Dhabi, and next build the we excited that China. to investing still will and biggest untapped example, in And moving to our and that, Greg. plans platforms to truly our ticket in turn transform the stages forward season. the agreements Overall, markets, And Formula business. opportunities Abu about the with the on Fanatics E I'll very area. much to also with increasingly with We're For negotiating to executing two inaugural to call We're our capabilities the early U.S. foundation, of we're three years. five opportunity back expand

Greg Maffei

Mark. on November forward week Thanks, many in appreciate interest Liberty Chase XX at Day. and your continued to of Media seeing and Investor next look you We our

to to questions. open it but If homepage. so register, the you our not please operator, And call with up on to do Courtnee like do link that, need via I'd

Operator

[Operator from ISI. Instructions] line Your Evercore Jayant question first of with the Vijay comes

Vijay Jayant

you been Sprint think some it the to start plays that follows? Is, opportunity than ecosystem. for to you trying sport. Greg. improve be agreements, One playing negotiate don't And making to overtures it the leaving public some you in the be the Obviously, There entrants. Charter in for some way lot a about is folks about the competitive for And be the there's more best might sport if forum. Greg, you're things Liberty obviously to know Chase, and for just to a would to holistically, and legacy outcome I your more there's field then, that understand and one Chase of new mind, better out? doing level want probably But seemed engaged and the Charter, and that monetization had When I'm speculation sport. There management.

So philosophical on the for cable strategy differences on long-term of prospects between part really two is there any the wireless as is, in the question longer Charter. term companies? views company generally mind Liberty's just And a between the

Charles Carey

the improve okay, guess, answer components. really a the number one, competition, the of comments, are time, guess opening Greg and, a improve realistically to track the do the And I can better I action I guess we it I in as answer Okay. we – let much same think both think and and I'll on I the – make a the first business the us said I there's lot then teams. at there for second.

wide the now, to amounts that a simply exciting complicated in want We give to want is is don't We realistically take and passing, teams revenue are and cost, – to don't action. hear things advantage competition right that of performance for not got built expensive, spending aerodynamics. we've the We the the still that track. and and we make in so that engine, therefore, technology. we cars like the more passing fans. spend it an we cost. it create improve One are – want track. the distribution sense, want it value that doesn't We've a be We've cars creates realistically unique. are We too on issues, too want be on the can engines them mean, the state-of-the-art make there difference dramatic of to for the the to and we But got initiatives cars I I When edge. to sport to want got pursue that tackle track you these great. like the

the said, all can I both results. day, sports existing will you consumer really – unexpected at have create a a the both motor that, to create car think that And things we better and while it. dramatic of win have mean, model still be team have be I of beneficial having have think that and the create in creating experience. the unique and But But as – those a foremost, same want I be you the think teams each will, pinnacle underdogs I to end would chance of first time, at of a the I to business mean, track, is that challenges differences ends the the sports. at much people also think look and they new I – it's who top of look about teams the at on way when the they the then cars up the which competing it. And what sort and non the sport, one some level a model. on in, level differences a at cars because at spending, deterrent. to It six and now, are rest teams different competing healthier get at competition of like. spending outside in business into a entice the and with, of realistically would of engine the the today, are that's look

I created if U.S. protect structures win. spend the spirit it from overtakes to cost because gave the in enhance like that you in predictably cost some So what competition to and competitive themselves you takes I and what more the and is they business mean ways, just protected mean do caps – them

potential pretty for I then from product much obviously it So how money, of more create, proposition. about create some a and with new these And new model spend more structure well it how appeal is it will it. the not makes you of identification a can interesting One the better unique, and better clear will for better raise I sport all. business for make with it get us that the they – in think a benefits out And will – it's a of fans if benefit And Formula a entrants. better your you spend, much entrants, fans better and engaged again, and think a it, existing that business everybody that we're partners for we

GregMaffei

Chase. Thanks,

to about the ultimate is Charter the Liberty Sprint. disagreement management team. head of and a management business also and there team So fundamental the on and wireless to wireless Charter question the where between think about don't role I is the likely

here have capital. of Englewood in We lot a and are out also capitalists

done, be on available. prospects. if there's something bullish always we're very cable remain We to So interesting

the remarks, I quite remain with we remains have our market and to the opportunities the have of in said favorable excellent. my connection all very Charter. think see I broadband is As we'll team service of think in if and going market opening management to bullish And I on video us. are the think, of the opens power lots are I up, and prospects transitions, – But them whole prospects I that

Operator

from of next Your comes with question John Gabelli. Tinker the line

John Tinker

One. and following obviously ability don't they What see and the broadens puts up you ESPN/ABC do on Could pretty that kind have you of about out NASCAR. and be helping, of signed are new with that deal how publicly on like helps Just to takes? your which come Formula Ferrari promote to talk the a and kind Monday" – said Sunday, sell approach, reconcile want with Ferrari? you "win the how you which on and little

Charles Carey

because spend, XX different identical marries And don't little in well want to don't be you said unique the sort be NASCAR want cars. – we want your towards want the have how the – We cars we to sport. others success a to I than Formula the sport cars to to how I will we and to engines don't within only don't mean, a develop we healthier technology that create create constraints capabilities is enable cars I that trying competitive it do view those and then resources succeed. to I And around NASCAR, to But difference well not bodies they We by about One Ferrari be a of is mean unique. the to have be them. as to derogatory are to to them is develop mean, it a technology. plan – each What actually, ability the the that unique we the team was to better that I spend – want to to it. we ago, that's some is and make we up couple want the unique have spend meant them state-of-the-art want we But much car more think a to unique that think standardize do think but to you ability going either. to minutes dependent want it teams have I bit, unique we of can are – what all them, and who I'm to you I make don't driver. that how versus what track,

want all teams the chance. see certainly, to There's that's built we – evolve. teams going mean, the reality I win. And it year. each But So favorites really be differently. Sunday, all – terms – part they think to in don't have to but always chance. – to Monday, I are equal going sell on going be fighting of And want you don't want We the the And on of any don't actually – to a It's time, unexpected. teams never we we we win it. want to feel to in have a want be on that sports over I compete

can we somebody to if day, unexpected. going So think I that realistically, And week, of the sport have is sport I race end a benefit – don't wins every do – every mean, the you the that want the at suffer.

drama, I unknowns. sports built are – mean uncertainty So and on

You competition. need

You the need unknown.

finishes. great need You

great stories. need You

– but perspective, priority, sport we've of And creating to that you and an got every better is it. fall our realistically, that from so sport the this sure have our to you're sport. unexpected it's the of I the wants team much I individual you that. and You benefits I it's make are has to attracts that in win us need great that. make appeal to and consumers think what comes basic – But will There out live has to teams dramas. benefits understand – of this They fans, first race, lot that all sports. we great with do a of sort are that that, results and priority existing to teams it. action, want a is for a uncertainty – here realistically, And in the think and more And create

John Tinker

what to obviously, stock's since a Greg. can If the as are just In role the ask days follow-up numbers new Because, your Chairman a views? of your initial out ago. drifting been came Pandora, I few

Greg Maffei

is I it John. think putting generously, drifting

John Tinker

understatement, English believe It's me. the

Greg Maffei

and I can add I point, – thought Chase excellent, all one to The made, just which the comments were Ferrari. think, of I

to And in of is up you trying uniqueness. the an exclusivity, – looking sense build are excitement. no and and of Chase build towards no exclusivity I on And the NASCAR races trying also north – on his of do, element that do we're think everything there's that alone is to implied to heading XX of sense team that – U.S. overexposure. There's that

path. some I pretty more than the with look, incorrect than So I management of less business, goals on you're we not the think aligned team we than But making it prior have And exciting prior driving Pandora, business product traction expressed than management where an hope teams seeking. hope, being on the publicly they public would team that ad seeing the of free on thought was would the we're the think understand. about base the subscriptions we less was free point less far – that, maybe and the we about reinvestment were results traction the into

the improving free was the And advertisers right ability In core million too for team, allowed from we and long put in for belief drift and $XXX the our the and reinvesting at SiriusXM Undoubtedly. his But are with I be business of that Liberty SiriusXM improving they're believe this focused the least the it to on, management fundamentally challenges fixed. its judgment, there on the put, could along way? Roger mission. in ad very to the headed think tech experience, team I Will path. on think Lynch get be product. self-serve,

Operator

JPMorgan. of with Your from comes the question line next David Karnovsky

David Karnovsky

Formula One. two I have on questions

payments the factors one how contracts forecasting? as been and are balancing a be, your Or the And believe you a team those decline at year-over-year on few you on as the renewed of contracts with have payout free-to-air update variable markets, Europe we us thoughts up which to pay, you're attribute separately of that such race? then, come or thinking up? of consider, fixed or in digital should your in about in quarter, haven't of fewer just I yet. First, to entirely would change in end GD there your season something large own other some Can

Charles Carey

in competition the So this you balance across the model I they're the a on mean, is the trade-off the against down always And of level be thumb some gives first you Free guess but And competitive it, right business. based we're engaged. digital the rule dynamics I reach pay a against market to compete. the be term, of the the clearly, a fair mean, like. we require But the most probably always value in term. is But players, for obviously, the but money, to important. opportunity to or over-the-air. of realistically, Ideally, is, They're short going the of – And business road, the between trade-offs what in are healthier balance. different Every the different is – – realistically, we digital bit in I on to navigate there's I going find to in over-the-air to in the though conflicts short Certainly, which big specifics. those to down like that And market's reach we'd come each different. what realistically. differing I most no sacrifice think, and all think views upfront that benefit that, is – opportunity between How of pay think, road. We reach really the and is it's is pay big a it's market to through, side digital. in of each important going I probably it. lucrative want is as the a is are sector growth, clearly trade-offs phase grow got to the out the balance say healthier. – there. investment is We've factor us have of players. struggling

– are trying think have fronts. having really, short do be – the our is we true because And our thing in I all we I So to probably all in we proud we guess on are that I the believe bigger it deals, engaged I is of those on take while this focused agreements think all one in the a sense we we the around on take track much couple of the energy next really think, new sport of it. we to have, can the and the we're sport of events can better a creating think – years, and better sport making place, making

So we I to have to of the will would we advantage opportunity take like do. things think the

sport, What we a really that recent in marketed was in of been probably which? years. is deals probably could with it think common is sport do trying reasonably what second one part to was invested the of I think able the and – the So the retain element of short-term has to be to it? not What question we advantage second take

David Karnovsky

contributed Just decline to payments. in year-over-year team what

Charles Carey

it – No, yes. marketing organizational that it's things part we're we capabilities adding the obviously, race mean, a we're variance, capabilities. we're – – mean, of and making and – didn't before, I done investing. variance the sport. mean whether there's weren't Oh, doing before. the have I that We're I we're

We're to sport. sport events. in investing the but continue it before, in that as the capabilities. we building organization the or in the I events whether expanded can are broader building an ramp said, digital we marketing cities at investing we'll up, are ways events didn't or in at energizing We're – tracks the We're We it's marketplace. support

had marketing. we've no in past, the – haven't We've We had digital. we've no no research, had

we particularly just delivers sure, deal exciting in events. opportunities do can. make and I to require of all There's do sure we They things can we're a to to sure go some things that, go event have leg to require want particularly, events – work. It's we those we that everything lot of and to we're make said, that make looking when out, not They – it we an us, some I things as event, some be that – of think advantage hope. add properly the interesting – a want we going take it, to So as things us studies. on that most into we require the and the the

think amounts. and So of areas doing. I of really, a very years. on degree I eight I every seven given to think, next deliver half much, capabilities, one dozen the know, varying build and think, investment for last those it areas those But on phase turnaround or phase; don't things are in I this gone every has business Probably I going particularly, off, almost where, investment of – the really some an we degree, but to some directionally we're had into year ticked year,

Operator

comes FBR. question next B. with Crockett Riley line Your from the Barton of

Barton Crockett

for of now I about of or comment the earlier business of hundreds million-ish Chase was EBITDA. that there's millions curious a opportunity that so an made One Formula $XXX improvements for that's dollars doing of cost

spend to were on I that talking maybe teams, about think on… you improvements the fall mainly would what they

Charles Carey

on it's the – about after – putting teams I yes, – track. Yes. in but bear. talking was particularly, I racecar disproportionate, costs teams taking mean I bear a Obviously, mean that yes, cost the

Barton Crockett

teams But upside from you an with of Concorde some could you reductions is and the to approach the the there leverage improved cost in the improve maybe to efficiency? share terms XXXX, so opportunity, as Agreement

Charles Carey

because about their a we I many sport models. as to say mean, think whole our tied ways, mean a obviously team biggest pay cost the I business is spend what – indirectly is the does they have what own which teams, in I'd

cost of the most, they is an couple to generally that think business. agree it of what what spend sort they sense. much. doesn't a And the spending teams So spending of indirect spend we'll do with I the because it guys got make that that's compete other to They're

degree, a, makes it it sense. bring to get protect to a and more try – So from to is, a great that them themselves place some deal

a be. I'd like to as – – that's to question business goal having at there I we'd If to entrants, aren't take I'd out enticing to think probably like so our are out the is would and interesting restructure get it, get be I everybody healthy benefits. The that that how to that could new you mean, teams we of before as place. cost do the to bottom about that figure business them like

everybody, mean, of think the the a you to make I as for what I is to us. over interesting But it – I can think – a with share don't structure clearly, end I want it is healthier And business problem prioritize everybody a it enticing priority model you more But up product up to action. teams healthy probably new good how sport existing for and our probably, benefits the better can come teams competitive with to a the you'll we making first a for from it's can will teams the healthy And if not more that perspective is as end to much secondary – – now fan this we'd makes think you with to healthier have I make valuable of because race that's existing. our more other healthier benefit of teams. benefits in. as as for look sort a be realistically, obviously, it be do making share have, opportunity including construct. unique

have, opportunity healthier get how do better. an but deal have you the comes business with the of that So create share there'll models of shared. But And with wrestle better know the #X. look, same do that time benefits you're be how making be day, problem for those you we'll – actually how private that a there. end is in out – and – to the at goal players arm at that this good everybody the and you I everybody benefits there'll clearly would is, fans, objective it's which do the be that My the to – sport

Barton Crockett

Greg. for Okay, that's separate helpful. one question And

some us call can Is was about, Liberty Ventures, after Liberty you might sense. give a a call. combination the between tweener GCI some to of... maybe there's be – that there merged, make future that and something There Broadband this previous that commentary the point Liberty and think sense – I at seems in maybe a

Greg Maffei

We won't of that, speak Barton.

you broadband get mentioned so – to got that. You you ask

Barton Crockett

question off. is before some I – But completed you you me the risking it could yes. have would there before Yes, without wait I be to had in long just I cut have how slipped consequences? that tax

Greg Maffei

Well, it look most If But the a weren't, shareholders. safe be obviously, were there there the a kind sufficient on largely a transactions. more in said quickly. intent. no harbor prior those as overlap If year would depend on generally that could of at I as overlap, done or call, for we have – people the plan

Operator

the Pivotal. line comes next Your Jeff question Wlodarczak from of with

Jeff Wlodarczak

A Chase. couple for

deals Should part You important materially recently deals? the fee that number FX than assume old getting renewed And then tracks. these is the is extension, on a opportunities different of then on is of we by to a bear who's follow-up. that? got way How to at tracks. the I've cost? make the passing create And you going is important And changes can more that with

Charles Carey

right. All

this not on that on fees probably going I'm revenue promoter but our others. said think specifically, I we think more to big comment the the I the have mature generally than of buckets, are renewals,

think reflected was I the in probably that renewals. So

– exciting new enable to around to generation a I mean, sponsors whole – creating want that the of about of and bigger with one what creating Heineken for want a cost – you are think in events talked them create event interesting track, it is I but fans that engage to of it. that do engage fans. things I investing to revenue the of there's terms creates is think and real engage to many in. whole ways most one there it, I fans a realistically, some in recently an Heineken or they're as resources a to at the for Villages, It's – in created even example track great who's of the it investing them XXX,XXX put that degree, – on and experience better it makes different city they'll fans. them And but much invest for putting helps the it it engage just in and a way money a track, – because a signage center. than for to

it's like how a or they center the energy got advantage and we've players of in at energy of the different would comes out lot the that whether city around track, and to this. a that it's whether excitement, take do So the the crowds of figure

to it, more but and for of us, I for pay comes advantage think itself that. taking the it want of than So the players the take event who array can by there think, advantage to I excitement, a of is cost the energy with that

Jeff Wlodarczak

about to spending seems of able enforce sort those the moving do And realistically like then being feel of you comfortable it inevitably. How caps? sort initially caps you're spending

Charles Carey

this. obviously don't Again, again, far I say said, we've get into, all What I negotiate public. want to would too is in begun I guess I

I think, the directionally, broad agreement direction of about. we're talking there's

we'll the our and direction, do, – for about, have think inherent got – I that initiatives. on get to that's get be to what we're the those there'll and compromises the the to support It's the trade-offs. right a job of proposal, off. find all we much clearly so not I'm obviously think everybody sure and find initiatives right direction And to details, fair it compromise details broad-based and healthier. through we as have work feels opportunity we've going differing of And goals to initiatives the a we're I is (inaudible) in specifics be makes is talking the But sport those in the much as the the better to into views. the they're look, that

execution to that we So off. need everybody to to this. right find compromises fair work everybody's and just We the feels the always – able is in need through is critical details, be now better

Operator

BTIG. Your line comes final Brandon the from Ross question with of

Brandon Ross

David's now, platform's Formula licensing terms kind One of of wondering for And rights. you've I the appetite TV to in what digital route Just the on digital compete question right right not be those follow-up just... for for but TV then with a Chase, deals. pay dollar on know seen may dollar for you

Charles Carey

you For core rights, the mean?

Brandon Ross

Yes.

Charles Carey

Yes. I product, over-the-top to more not mean, consumer? an Compete more as a direct which license, obviously is

Brandon Ross

Correct.

Charles Carey

all we're mean, mean, Look, think early close. still. pretty mean, I I think we've you're I step I – talking I to obviously a actually probably – of you're I them.

– spot So for they an look, bidding they world, mean, this content. recognize content, you – hit bidding creating buying isn't here, reality, uncertain world. unique, in is complicated because entertainment sweet the I they're think I real on around mean see And rights. scripted them you're I core in are a

to aren't – it's you're going not what be going Formula getting. is There no One. to know You There other get fragmented.

also with digital we doing is the going now, content we'd really of probably holistically. And on platform they're step clearly big of leap your us, with base probably the in – short But on but right a world, still for got rights. will You've – a heart I the core we'll into of fan unique content to to – They it. are the realistically have think digital core the wrestle that be probably a more short the really do players. term, putting taking

at they in the say they them, writing that free. cusp to to it. of engage. but of will short like, takes They as necessarily which they're want are pay race, feel But form and talk isn't do really you is A probably, of live creating easy, advantage core engaging. the of harder. certainly some checks it's traditional the term, words of Obviously, are we sort reside lot the sport product on So still

want they So would write And got and right. checks. the in – capacity they logic all but that's where to And say they're this engage to say they what it's is headed.

you – unique about spot. As and out And and we I content. content, they sweet I build in think video all are it's we're want think – video differentiated really a

big the think NFL and that of platforms to ramp they I these talks players, think you're in mean couple years, what seeing as sort in I As about other of to start – become sports up when and next them. – bigger

sports couple out years, those really out I are uniquely and they they As – you event important be – out to build audiences. of look going a to say, try as these unique think look places

Brandon Ross

to players, Greg, as term? response give for appetite from that the Chase's Charter the in does about digital listen and longer you the hear you there any concern And

Greg Maffei

on quite that there But and Charter, bundle the video broadband an power I think remain profit connection the exciting our as evolving and will of be bullish video given the its be I we to in changes. the mentioned on as I market still player earlier ability the aggregator market's think even and morphs. –

your Thank all questions. done you for I Liberty. with interest in think we're our

we'll As I we'll we And get not, with you to for if to you said, earnings next see New week York. speak don't on our get those many call. of quarter in hopefully see, next

Charles Carey

guys. a Thanks lot,

Operator

thank that conclude Ladies for please and and gentlemen, lines. you disconnect conference participation you your We call for ask today. does your that the

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