earnings call: Liberty Media and Atlanta Braves report good 2023 performance
Liberty Media Corporation and Atlanta Braves Holdings have released their 2023 year-end earnings report, which highlights a year of strong financial performance and strategic growth. The Liberty SiriusXM merger is expected to finalize in early Q3, and SiriusXM has seen an improvement in self-pay net adds and profitability.
The Formula One Group had double-digit revenue increase, thanks in part to a successful Las Vegas Grand Prix. Live Nation reported its most successful year yet, with record-breaking attendance and ticket sales. The Atlanta Braves also had a financially successful season, thanks to record runs and increased ticket demand.
Key Takeaways
Liberty SiriusXM transaction with LSXM expected to close in early Q3.
SiriusXM had a strong financial year with more self-pay subscribers and better margins.
Formula One Group saw significant revenue growth and a successful Las Vegas event.
Live Nation achieved its highest ever attendance, ticket sales, and sponsorship.
The Atlanta Braves experienced financial growth with a 9% increase in revenue due to higher attendance.
Company Outlook
Formula One Group anticipates improved corporate and other adjusted OIBDA in 2024, driven by the Quint acquisition and full-year rent payments.
The 2024 Formula One season will feature 24 races, including the return of the China and Imola Grand Prix.
Formula One is focused on enhancing fan engagement and content delivery, with sustainability initiatives being a priority.
Bearish Highlights
Corporate and other adjusted OIBDA reported a loss of $39 million, partly due to costs associated with the Las Vegas Grand Prix.
Total adjusted OIBDA for the Braves decreased, impacted by higher player payroll expenses.
Bullish Highlights
Formula One’s Paddock Club saw significant revenue growth, boosted by demand for hospitality offerings.
The company has secured contracts and partnerships expected to contribute to future revenue growth.
Formula One remains the fastest-growing major sports league on social media.
Misses
Despite overall growth, certain costs increased, such as those related to promoting the Las Vegas Grand Prix and additional hospitality offerings.
Q&A Highlights
The Concorde Agreement with F1 teams is due for renewal.
The spin-merge with SiriusXM is expected to close in early Q3, pending SEC approval.
The Las Vegas Grand Prix aims to optimize its cost structure in its second year, while the Madrid Grand Prix will be introduced in 2026.
F1 expects growth in media rights revenue in 2024 due to recent deals.
The Braves’ bankruptcy process is under observation, but operations continue as usual.
Formula One CEO Stefano Domenicali stressed the necessity of sustaining and boosting revenue through partnerships, with potential for expansion in industries such as gaming and financial services. Liberty Media CEO Greg Maffei acknowledged the value of sports licenses and voiced confidence in F1’s brands, citing strong fan demand and viewership. The notion of F1 collaborating with promoters for race promotion was discussed, although becoming a promoter for many races seemed improbable. The addition of an 11th team to F1 is being discussed under the Concorde Agreement framework.
The earnings call concluded with an acknowledgment of growing fan interest, particularly in the U.S., and the valuable media rights associated with it. The promotion of the sport, especially in Vegas, remains a focal point. The next earnings call is anticipated next quarter, with expectations for continued dialogue on these developments.
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