Liberty Live C 2025 Q1 Earnings Significant Decline in Net Income

Liberty Live C (LLYVK) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company missed expectations with a substantial decline in net income, falling 98% year-over-year. Despite the downturn, the company maintained its guidance, projecting continued growth from its strategic partnerships and investments. The results highlight the challenges faced within certain segments, while ongoing efforts aim to leverage new sponsorships to boost profitability. Liberty Media anticipates steady progress in its future performance.

Revenue

Liberty Live C experienced a 27.3% drop in total revenue for 2025 Q1, reaching $400 million, compared to $550 million in the previous year's Q1. The Formula 1 segment contributed significantly with $400 million, while other revenue streams provided an additional $47 million, culminating in a total revenue of $447 million.

Earnings/Net Income

Liberty Live C's earnings per share (EPS) saw a sharp decline of 95.3%, dropping to $0.01 in 2025 Q1 from $0.31 in 2024 Q1. The company's net income plummeted to $5 million in 2025 Q1, representing a dramatic fall of 98.0% from the $245 million reported in 2024 Q1. The EPS performance indicates significant financial challenges.

Price Action

The stock price of Liberty Live C has edged up 0.15% during the latest trading day, has climbed 3.85% during the most recent full trading week, and has surged 15.38% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing Liberty Live C (LLYVK) shares following a quarter with a revenue drop and holding them for 30 days resulted in a -3.08% return. This performance significantly lagged behind the benchmark, with an excess loss of -23.78%. The Sharpe Ratio stood at -0.20, reflecting poor risk-adjusted returns. A maximum drawdown of -9.54% underscored the strategy's high risk, posing challenges in managing during downturns. Overall, this approach demonstrated vulnerabilities when facing revenue declines and emphasized the importance of strategic risk management.

CEO Commentary

“2025 is off to a strong start. Formula 1 is benefiting from exciting racing on the track and financial momentum underpinned by new commercial partnerships that took effect this year,” said Derek Chang, Liberty Media President & CEO. He highlighted that the contracted and diversified revenue streams from Formula 1 position it well against the current macro backdrop. The fundamentals remain strong, and he expressed confidence in delivering long-term value. At Live Nation, he noted strong first-quarter results and indicators pointing to another record year ahead, driven by sustained demand for live music and growth in the global experience economy.

Guidance

Liberty Media anticipates continued growth in its revenue streams, particularly within Formula 1, and maintains an optimistic outlook for Live Nation, projecting it will achieve record performance in 2025. The company expects its total revenue to be around $400 million for the quarter, reflecting its strategic investments and partnerships. Additionally, the EPS is guided at $0.0147, with an emphasis on leveraging new sponsorship deals to enhance profitability and sustain momentum in live events and media rights.

Additional News

Recent developments at Liberty Live C include significant corporate actions and strategic plans. The company has announced its intention to utilize the new Liberty Live common stock for strategic acquisitions, aiming to maximize the value of its investments and other assets attributed to the Liberty Live Group. Additionally, Liberty Media has appointed Derek Chang as President & CEO, a move expected to drive forward its growth strategy. On another note, Liberty Media's Formula One has extended its Miami Grand Prix contract until 2041, securing a long-term future for the event. These actions reflect Liberty Live C's commitment to expanding its operational scope and strengthening its market position.