BATRA - Earnings call transcript Q3 2024 | Atlanta Braves Holdings, Inc.

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Operator

Greetings. Welcome to the Atlanta Braves Holdings 2024 Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Jennifer Giglio, Senior Vice President of Communications. Thank you.

begin. may You

Jennifer Giglio

Good morning.

to remarks management's may like everyone on we'd that remind contain call, begin, prepared today's we Before forward-looking statements.

the matters reports cause forth Risk our differ materially from address uncertainties in could cause A the statements that anticipated, filed to to factors and SEC. subject annual Forward-looking differ results risks number that of may of those including actual Factors from to those with section actual results quarterly discussed today. are and those set

Forward-looking this are expectations, of future events. and speak of statements update made, on based assumptions to any available as obligation are publicly beliefs current light information new as of and information to as no in management the only time or well date they us undertakes at and them

we Form and will financial these of certain GAAP financial contained discuss full company's the measures measures to comparable non-GAAP release non-GAAP The OIBDA. website. including the XX-Q this are During earnings the call, press adjusted available definitions on measures reconciliations and financial in

like to turn of Terry CEO and I'd Braves over call Holdings. President Atlanta McGuirk, to the Now

Terence McGuirk

support team League start Media. Malone morning, further the voting we and discussing when disclosed make to and management John Braves to Atlanta we Third the that about Baseball, Atlanta-based XXXX These updates, Braves August. and Good in this approved Liberty Earnings believe that create the want Major of to I team empower We're updates and been the the grateful organization for Quarter that for to say the arrangements by and Call. entire I previously our governance organization, Holdings decisions excited continued Atlanta welcome briefly Holdings management are value will have lead which our of the I future speak Braves for shareholders.

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our short players of that all fell showed perseverance winning proud. we made another While series, goal us ultimate fight our world and of

the leadership confident ability and are level. in our the at field team, our of the on win to and the talent compete We highest

you shareholders, the the put As of one is organization. piece that the know team on we important field just

We Battery called estate that really real ballpark includes experience incredible Truist our development media business a multifaceted an Atlanta in-stadium the at a Park, around assets. entertainment and are and multiuse

we and fans year, during than development Atlanta mixed-use to tuned The be the a million to Battery in and television in a and leading ballpark Southeast the consecutive more example destination third welcomed of X live, a work radio. by our sports and continues play top the venue. season For anchored millions a more on

we understand look the stage. We to community. Baseball of which a of the Country, national All-Star fans our to and part next opportunity I host significance of privilege thrilled on League the responsibility the the welcome Braves showcase Atlanta to Major Baseball will with Park role Battery Truist Atlanta our world am the League from We As thank year, have to game. around that Major opportunity for we and the and supporting the as comes

benefits We region entire to not Fund Braves they our the call tangible Southeast Braves Louis Atlanta create continue through Aaron but work Henry and that fans, Foundation the home. only that impact

that prepared not we want that regular we we being our through this of investors and Day we in unique results we team. new of walk to now the reaffirm Derek many I weeks part take coming will meeting only Jill, Braves, beyond Atlanta you you do at have, Investor responsibility one the of League We to who that the Liberty and the over history and the and for will turn understand with the baseball call publicly traded to chapter forward engagement from the that analysts. And in As have begin the Major lightly. I It's look as quarter.

Derek Schiller

have Chris strikeouts. Major of we the season was Battery tickets the on date our League the team in Thanks, XXXX an Park good to renewal into playoffs, and Pitcher XX ultimately tickets season, XXXX. which said, Players Padres. the their It seen We NL San Terry series straight record as Terry, the morning wildcard Baseball. Heading to season seventh in in Truist another all. XX straight we Year be making and finished before NL The XX,XXX-person with XXXX the Diego the and sold ERA MLB Choice, to Player the in losing Atlanta. led all season, waiting performances as Chris key offensive year, season, leading Triple players awards. to million the tickets statistics League pitching major year Marcell as to for X was exciting in who season rates the from franchise there strong and a We the history Sale, became in in list the fans and over had from total Overall, continue including the fifth high and throughout for at doing first Outstanding third Crown National love wins, continues player Ozuna. well which highest team won experience Comeback the the for

In ranked recently experience. completed fan survey, #X Braves league-wide the in fact, guest MLB a overall and

season. called committed the continuing that response of our fans, the proud ahead We we but of House further the better. To extension includes even among area, seating the experience will and end, are make to to this the begin upgrades new seats lounge Coors the includes underneath remain of to XXXX to from announced other ballpark This which product an seating to exclusive the access Light Chop enhancements. a bullpen,

currently date. have previously impact of Sports material our has whether company's payments is not impact cannot material Diamond a proceeding company proceeding the bankruptcy pending We the unfavorable LLC revenue predict Group the unfavorable scheduled on bankruptcy in and a on likely such future. While has the revenue to reasonably received had to

and We the fan of enhancing the completed experience. several earlier adding seen already this planning value have projects master year,

see So experience world. fan must-visit put, how the season. these and a the for the become the we're to upgrades Battery country improve Simply folks additional Southeast, the for attraction across Atlanta next has excited Atlanta,

As the financials. with with over I during with and turn which to second financial revenue over to Braves that, Jill recognized to it majority discuss want I'll baseball revenue that the seasonal, turn everyone of quarters, company's to to discuss season. And the remind third aligns the Jill I is things performance, Holdings the

Jill Robinson

to $XXX million of XXXX from in in Total Derek. million revenue third quarter $XXX the of Thanks, grew third XXXX. the quarter up

company third business reminder, the home development. There the XX a of compared in to games based home prior As in the mixed-use baseball following and manages played the year XXXX quarter XX its games on reportable period. segments: were

million in primarily existing saw regular from new by games. third million season rate XXXX, tickets increases contracts, offset $XXX and partially year For baseball period, company of revenue, quarter the due sponsorship to and season on home the the up at in prior $XXX reduced sponsorship agreements contractual attendance

concert Additionally, other to to Truist increased revenue Park. due additional

company income. due and in million in period. of $XX the $XX up revenue, to prior development primarily million rental quarter mixed-use the year third from the in For saw increases XXXX, parking

million costs, higher of in after XXXX baseball company's seeing due the of $XX prior fell operating income However, quarter million $X operating to year operating in income third period. the to the

and OIBDA from company's payments League $XX year MLB's the costs in sharing the $XX due salaries, revenue primarily fell team player in to addition, period. Major to adjusted operating million the increases and In player Minor expenses. prior million third Baseball quarter increased in League

operator, securities highly of for XX, and ABH and government funds had funds, of let's is As market the government cash other are cash corporate cash U.S. compliance rated our September money securities million of in guaranteed all treasury and XX, all XXXX, of invested with other Substantially, instruments. as equivalents. financial open $XXX.X company in and equivalents or the line XXXX. And September debt financial questions. AAA-rated with covenants debt that, cash

Operator

from Our Morgan with Ben Stanley. question is Instructions] [Operator Swinburne first

Benjamin Swinburne

mentioned event I you [ too about opportunities like had how over on the to I'd want year. the of questions, term, several about the the years? probably Terry front see X but you growth multiyear so biggest about do Nice enhancements ] the period don't that guess to much, run know kind financials. the EBITDA kind I year-on-year stadium hear you was I of for for you I up, this next you have if Derek, curious so revenue you just know business to longer you think want some and and with of assets growth and think investor maybe you driving coming over 'XX. love then talk as far a But have? And in the flows cash

the year up in is can CapEx to still help if negative of conversion just cash amount. think you us and ahead? and for operations from I as You're decent cash free about wonder flow business guys this look you the slightly EBITDA general a

Derek Schiller

for Derek. question. It's Thanks I'll respond. your

we relates business to well the very growth, as We're sides being battery. it revenue believe both well-performing you've as ballpark we invest heard, to a continuing, substantially have As business. as of obviously into the the

on master both think is about way project areas. we that And upside Truist in return it of We're the continuing so there's we a eventual talked each has plan And Park. invest look lot We to at in still the projects. an investment.

going the doing what are the ultimately, good the closely is things So good investing fans, for where we good if key it's in business. and for we be future, it the it's for fans. that for guidance at best study the those. Overall, should for look be is, us is And to that

better higher-performing there's trade we'll leases into for we as battery room side, and do the upside We're bringing as On new for to evaluate opportunities. to that the to where and well out need leases, trade battery continuing still and continue reinvest out tenants, growth.

growth So lot the question? you to think do I for answer a really financial room us. Jill, for still of want there's

Jill Robinson

Thanks, Yes. Derek.

to a I'll question and basis in year-over-year The revenues, on player specifically around the operating on declined the you're payroll, OIBDA expenses, cash From MLB focusing revenue growth around in our due results. Minor mentioned master OIBDA. despite League has project. capital the to and You perspective, primarily seeing EBITDA, address cash increasing flow improvements, planning decrease tied sharing primarily beyond costs. an specifically operating what is baseball

Operator

with is Crockett Barton Securities. question Rosenblatt next from Our

Barton Crockett

And of just is of frame for I opportunity number what guys. back second on step are get a kind independent how wanted sense what a this inaugural kind call a kind you and and you to of off, you more ] of might with your by typical kind and value? asset of for by is of of first Or necessarily in you creating mean, I it accounts. flow? cash do flow, which create value sports growing see you be teams. we measured cash how think Is not what that's it [

more as a from the in not structure structure have private? to And opportunity versus that And a losses just of terms be and private there are public teams cash company. like roll why could so that have. traditional of to guys speculation you in to public do maybe company sports you And fund advantages success puts an sometimes may invest possible ability to been like need be public into there's takes up are you there being flow some more companies a are if be that there what an public,

it, are So be sense of to if what interesting. you could take expect you would a where kind us should you and give strategically of some you be why that

Terence McGuirk

in confidence a that Series. McGuirk. the every our win start he voter I'll so to approval has us and This goal John off. us forward. as we given saying With year is going that is management Well, has appreciate World Terry Malone group, a the

sort pretty baseball We I is each that DNA just great a would year greatest capability of give other way the management say, World your and broad our to head actually a answer him terrific my and team strive from very operations to financially some it's for are have I'll Alex have a winning We this we put the your built Series. And the part the is we've field over in turn a drive adequate statistically the Anthopoulos. But and playoffs special payroll to on question. colleagues it to has we can team that winning ultimate by and and value here. And questions. something comments of both the of goal

Derek Schiller

to these is, specifically year the look that businesses things Yes. I line you at revenue. try each add grow would and to Thanks, do and trying one we're teams, Terry. What of top sports is every when

history years, And increase and at amount the into and so if doing we revenue coming is of that look our you a business. over we are the the the constantly striving successfully key That growth have to been one metric rate.

opportunities our investments battery So the talk like or have the new about media ballpark plan in ultimately things the there we master with things opportunity or the when like projects, we that. and

have There's for as we're And You sense we all and how we say XX also operate, in significant territory, opportunity defined also all capitalizing reminder striving room can get to it's well we we as for which our million relate the reach those people to that. we and that enormous as a fans of a outside of an just and do have those with what good growth million, territory territory XX those to revenue. some amongst still the well. that in think from

Barton Crockett

a of question that into up just have like your I Okay. structure. [ if I to sound doesn't been sports follow I could other that's And on question the of teams public one radar the elements ] that That up. rolling is screen. mean

fairly the of seem a read? that focused Is Braves. kind on correct You

Derek Schiller

We're all the of correct. just team this we talked ahead. growth on is, growth really opportunities laser-focused the management envelope. said, this That's what And absolutely focused as on about I inside

Barton Crockett

in just a that make us of to terms not of know won't question but future, Diamond. know there be know versus discussions Could more ] And of to have give [ puts little are here, We could answer and would just in that it you have turning on arrangements gone what that the from the be be work you mind, the in you wand it ultimately, there. maximize say sports I you the wave is there ideal sense behind in can one what's you they've that. a what on happen. no what, you? MLB longer confidence then terms bankrupt, the I TV think Okay. and bit elaborate negative local to the And Braves the your for here? could TV would some what Can if for -- generally takes make we Diamond for just final structure work you and And would local value if a rights do a

Terence McGuirk

what talked about, bankruptcy. is Sure. in Well, again, restating Diamond we've

a on what the dates to with trying of be we we'll following understand So obviously closely are number There's watching upcoming happens and that bankruptcy. to that that.

waiting what thinking about I'll business are not opportunities defining of remind you happen, everybody and studying I for be the might is think that the one we're things what this else for potential just bankruptcy to also us.

we're to us, matter And we outcome. so No for we're eventual talk going territory. enviable think good be prepared for happens, the again about position. a any a once to very in It's what reminder

We rights closely capitalize have might ] right sports. even territory opportunity, what have seeing on we one collision further us. And to [ to back an those happen. bankruptcy largest the should and in territories we come think, watching we're that of now, But the

Operator

Our from next Research Seaport Joyce question with is Partners. David

David Joyce

questions. of couple A

the much and to you is beyond of that current fan filled And add-on? much already for baseball more the And does kind development this of you do weather the or up the a concert a you you've strategic if expand First, plan plans season. the to What wondering think property was further expand opportunity developed activity. of you point? the attendee any with are just I park had the -- real or there calendar climate in Is acceleration enables master and pretty secondly, some are that? the beyond estate battery. at lot

Derek Schiller

your you for Thank question.

you is and have themselves. Park obviously battery, fans I on to come concerts events, enjoyed the what special they've as the would So and tell more Truist

voice rated Major As we've consumer of I got by was that Baseball. study experience League done from the the overall #X guest the as said,

for they we're have good games, when here, the really certainly people of they opportunities studying time. So a come And outside exist. us, baseball that

other We're there's greater day also special working that at of closely we're this And soon, out promoters among place day many are itself hosting I here. try even amount bring other of area. But to That's that we tell an types So many we there Truist golf events. opportunities as hosting, event would take Park, events. we to in have. of very nongame one you the of special facility a fact, all can will lends think special nongame event with lot concerts a to

that So we're that. trying with harness develop working and closely to and our team

As that's battery. the it associated Certainly, relates all the to the battery. question studying estate of There about with undeveloped real we're the ] opportunities [ some battery. is with the

earlier a look that about a as I at figure to And to we and that. that We try something would out the I exist bit little talked continue reminder, look is might for say, also at the have, also transition opportunities also we that those types for make of can we guests financial our they the but for the even better have. the that upgrade and leases of those to battery results and experience opportunities when

are at here assets performing We always looking for the better battery.

Operator

Harrigan is Benchmark. Our with next question from Matthew

Matthew Harrigan

it some as run as the VR. ADD-is as you certainly right still the some AR have possibilities some and NBA from about know [ X you that. change thoughts from even have I in betting, compared -- questions. Braves market all reference Meta rather Meta product really things on is But Home on with Quest is of ] Derby their new heavily. MLB a rights Meta secondly, both video NBA Quest or any an and perspective TV boosting but commentary it's you small in and well. with have got But overall and the know to do all are this I now One, what the long then not and the you've perspective and do really that. Run I then and any Georgia, sports NBA and know like obviously, the Quest happens to game really feels

Derek Schiller

your Thank you for Yes. questions.

that the support frustrated seen betting. done not sports legalized we back here Georgia. as it and corners with of for it's helps all in way and getting it's think question, are of good something put the that we to regulation betting sports continue out it's the right And country. throughout is sports We the controls sports sure the betting in that would with yet On make that betting opposed to there to is we legalized We've out game types the light. legalized

get I fact, election night and In another there's state, saw betting. think recent last most here sports legalized you

the that that is hope happens. our that, working well So here we're to see that closely do legalize that, Georgia and politicians in

On the fewer League I AI, to various the can we capitalize think on Media's in of Investor Day Braves. of With our operator. specifically forward go to sir. be look players out through fans. media and many to that we go about ways new opportunities And dabbled at on hopefully, York final, anything in we that, bring in to in the announce I'm XX. media, point We it and AR, we'll types to all your specific out. opportunities, that, at for to look what but in perfect out want have think on say solution the the Liberty in including new November to it With past, time. opportunities there. there unique us and say right. question the a for and I and it questions, content think you thank at for that whether seeing I you in trying we and I injuries then us, going We've see you that. all next use of sports that we are this appreciate anybody's close to the season. Yes, of time close Major what got don't continue that Baseball, Braves, your are attention. All don't We general opportunities the figure we I'll are, are be would out, New or

Operator

today's conference. Thank will you. conclude This

your You may time, this thank disconnect you and your lines at for participation.

Atlanta Braves (BATRA) 6 Nov 242024 Q3 Earnings call transcript