Liberty Media Corp. - Ordinary Shares (LSXMA) 8 Aug 24 2024 Q2 Earnings call transcript
Liberty Media Corporation recently held its 2024 second quarter earnings call, shedding light on the company's latest financial performance and future outlook. The call, led by Greg Maffei, Liberty's President and CEO, provided insights into the company's key themes and trends, including the progress of the SiriusXM merger, the robust performance of Formula One Group, and the promising developments at Atlanta Braves Holdings.
SiriusXM Merger and Financial Health
The call began with an update on the ongoing merger between Liberty Media and SiriusXM. The transaction is progressing towards closure, with SEC and FCC approvals already secured, and the shareholder meeting date set for August 23, 2024. The anticipated closure date is September 9, 2024. The adjustment of the merger exchange ratio, which has reduced the shares of new Sirius by 90%, is expected to result in a higher share price and enhanced trading dynamics.
SiriusXM's financial health remains strong, with self-pay net adds showing improvement sequentially and year-over-year, primarily due to a reduction in voluntary churn. EBITDA has remained flat versus the prior year, but the company expects solid margin and cash generation through the balance of 2024. Despite a peak CapEx year in 2024, the company anticipates returning to free cash flow growth in the coming years.
Formula One Group's Competitive Season
Formula One Group reported a highly competitive season, with 7 different race winners and 8 drivers on the podium in the first 14 races. The constructor championship is expected to be the closest since 2012, and the difference in time from front to back on the grid is the closest since the start of the current qualifying system in 2010. This competitive dynamic has led to increased engagement from fans and sponsors alike.
Atlanta Braves Holdings' Strong Performance
Atlanta Braves Holdings reported strong performance from key players, with Freddie Freeman leading the National League in RBIs since April 12 and Charlie Morton having a 2.64% ERA and Free It a 2.71 ERA, both ranking second and third in the National League ahead of the trade deadline. The Braves also announced the return of Jorge Soler to fill a key position in the outfield and right-handed pitcher with Jackson, both of whom were on the 2021 World Series winning team. Fan demand remains high, with per cap up in ticketing and concessions year-over-year, and a 90% renewal to date on season tickets for 2025.
Live Nation's Record Quarter
Live Nation reported another record quarter, with no signs of slowdown. The company saw record ticket sales, revenue from on-site spending, and cancellation rates tracking lower than last year. New artists have increased by 20% year-to-date, with 2/3 of all total new enterprise tickets coming from international. Live Nation plans to open 14 major global venues across 2024 and 2025.
Financial Results and Outlook
Brian Wendling, Liberty's Chief Accounting and Principal Financial Officer, provided a detailed analysis of the financial results for Liberty Media, SiriusXM, and Atlanta Braves Holdings. The company reported an increase in revenue and OIBDA for both Liberty Media and Formula One Group, driven by additional races and sponsorship deals. MotoGP's transaction is expected to close by year-end.
Conclusion
The Liberty Media Corporation 2024 second quarter earnings call presented a positive outlook for the company, with key themes including the ongoing merger with SiriusXM, the competitive nature of Formula One and MotoGP, and the strong performance of Atlanta Braves Holdings and Live Nation. The company's focus on growth opportunities and financial health, coupled with its strategic initiatives, positions it well for the future.