Industry Overview - The Zacks Media Conglomerates industry is thriving due to the consumer shift towards over-the-top (OTT) content, with major players like Disney, Atlanta Braves Holdings, and Madison Square Garden Entertainment investing heavily in original content to attract Gen Z and millennial subscribers [1][2] - The industry's growth is supported by cost-effective alternative packages, such as skinny bundles, which offer lower prices compared to traditional offerings [1] - Challenges include declining broadcast television ratings, reduced demand for home entertainment sales, and advertisers' cautious spending amid inflation and high interest rates [1][2] Trends Impacting the Industry - Original content is driving growth as media companies adapt to consumer preferences for subscription services over traditional pay-TV, leading to increased opportunities for targeted advertising [3] - The demand for high-speed internet is a key catalyst, enhancing the consumption of high-quality videos and binge-watching trends, particularly in international markets with a growing broadband ecosystem [4] - The industry faces difficulties from cord-cutting trends and the maturation of the pay-TV sector, which has led to increased competition from streaming services [5] Industry Performance - The Zacks Media Conglomerates industry ranks 44 within the broader Zacks Consumer Discretionary sector, placing it in the top 18% of over 245 Zacks industries, indicating positive earnings outlook [6][8] - Despite this ranking, the industry has underperformed compared to the broader sector and the S&P 500, returning 4.9% over the past year versus 15.8% for the sector and 10% for the S&P 500 [9] Valuation Metrics - The industry is currently trading at a trailing 12-month price-to-sales (P/S) ratio of 1.51X, significantly lower than the S&P 500's 5.33X and the sector's 2.28X, suggesting potential undervaluation [12] Company Highlights - **Atlanta Braves Holdings**: Reported a 27% year-over-year revenue growth to $47 million, with baseball revenues up 30% to $29 million. The company has a strong cash position of $244.7 million and access to $275 million in liquidity [15][17] - **Disney**: Achieved profitability for Disney+ and Hulu with a combined subscription base of 180.7 million. The company is trading at a discounted P/E ratio of 19.25, with projected 16% EPS growth for fiscal 2025 [20][22] - **Madison Square Garden Entertainment**: Revenues increased by 6% to $242.5 million, with adjusted operating income surging 50% to $57.9 million. The company is well-positioned for continued growth with diverse revenue streams and strong advance sales for upcoming events [25][27]

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $47.211 million, an increase of 27.4% compared to $37.080 million in the same period of 2024[132]. - Baseball revenue increased to $28.621 million in Q1 2025, up 30.2% from $21.970 million in Q1 2024, primarily driven by a $2.2 million increase in broadcasting revenue[133]. - Mixed-Use Development revenue rose to $18.590 million, a 23.8% increase from $15.110 million in the prior year, mainly due to a $3.1 million increase in rental income[134]. Operating Performance - Operating loss decreased to $44.452 million in Q1 2025, improving by $7.9 million from a loss of $52.355 million in Q1 2024[139]. - Adjusted OIBDA improved to a loss of $28.549 million in Q1 2025, a $5.2 million increase compared to a loss of $33.754 million in Q1 2024[140]. - Baseball operating costs increased by $3.6 million in Q1 2025, primarily due to a $1.1 million rise in major league player salaries[135]. - Selling, general and administrative expenses rose by $1.2 million in Q1 2025, attributed to increased personnel costs[137]. - Stock-based compensation decreased by $1.1 million in Q1 2025, reflecting a reduction in outstanding awards[138]. Net Loss - The company reported a net loss of $41.391 million for Q1 2025, compared to a net loss of $51.272 million in Q1 2024[132]. - The Company's net losses were $41.4 million for the three months ended March 31, 2025, an improvement from net losses of $51.3 million in the same period of the prior year[146]. Tax and Cash Position - The Company's effective tax provision increased by $8.5 million for the three months ended March 31, 2025, compared to the same period in the prior year[145]. - The Company's cash and cash equivalents totaled $244.7 million as of March 31, 2025, primarily invested in U.S. Treasury securities and other highly rated financial instruments[147]. Debt and Credit Facilities - As of March 31, 2025, the Company had $259.9 million in floating rate debt with a weighted average interest rate of 6.2%[158]. - The Company had $442.6 million in fixed rate debt with a weighted average interest rate of 4.4% as of March 31, 2025[158]. - The maximum amount available under the League Wide Credit Facility (LWCF) was $125.0 million as of March 31, 2025, which remains undrawn[151]. - The MLB Facility Fund Revolver had a maximum availability of $38.5 million as of March 31, 2025, and was fully drawn[152]. - The TeamCo Revolver provides revolving commitments of $150.0 million, with full availability as of March 31, 2025[153]. Adjusted OIBDA - Baseball Adjusted OIBDA increased by $2.1 million for the three months ended March 31, 2025, compared to the same period in the prior year[141]. - Mixed-Use Development Adjusted OIBDA increased by $3.0 million for the three months ended March 31, 2025, compared to the same period in the prior year[141]. Corporate Structure - The company completed a tax-free Split-Off transaction on July 18, 2023, transitioning to a standalone public company[124].

Core Insights - Atlanta Braves Holdings reported a quarterly loss of $0.66 per share, which is better than the Zacks Consensus Estimate of a loss of $0.94, and an improvement from a loss of $0.83 per share a year ago [1] - The company achieved an earnings surprise of 29.79%, having previously reported a loss of $0.31 per share against an expected loss of $0.69 per share, resulting in a surprise of 55.07% [2] - Revenues for the quarter ended March 2025 were $47.21 million, exceeding the Zacks Consensus Estimate by 34.12%, compared to $37.08 million in the same quarter last year [3] Financial Performance - Over the last four quarters, Atlanta Braves Holdings has surpassed consensus EPS estimates three times [2] - The current consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $285.5 million, and for the current fiscal year, it is -$0.54 on revenues of $680.84 million [8] Market Position - Atlanta Braves Holdings shares have increased by approximately 5.9% since the beginning of the year, contrasting with a decline of -3.8% in the S&P 500 [4] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Industry Context - The Media Conglomerates industry, to which Atlanta Braves Holdings belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9]

Revenue Performance - Total revenue for Q1 2025 reached $47.2 million, a 27% increase from $37.1 million in Q1 2024[5] - Baseball revenue increased by 30% to $28.6 million, driven by a rise in broadcasting revenue and events held at Truist Park[7] - Mixed-use development revenue grew 23% to $18.6 million, primarily due to increased rental income and higher parking and sponsorship revenue[8] - Total revenue for Q1 2025 was $47,211,000, an increase of 27.4% compared to $37,080,000 in Q1 2024[27] - Baseball revenue increased to $28,621,000 in Q1 2025, up 30.5% from $21,970,000 in Q1 2024[27] - Mixed-use development revenue rose to $18,590,000, a 23.8% increase from $15,110,000 in the same period last year[27] Financial Performance - Adjusted OIBDA improved to $(28.5) million, a 15% increase from $(33.8) million in the prior year[5] - Operating income loss decreased to $(44.5) million, compared to $(52.4) million in Q1 2024, reflecting improved revenue performance[9] - Operating loss for Q1 2025 was $44,452,000, an improvement from a loss of $52,355,000 in Q1 2024[27] - Net loss for Q1 2025 was $41,391,000, compared to a net loss of $51,272,000 in Q1 2024, reflecting a 19.2% reduction in losses[27] Cash and Debt Management - Cash increased by $135 million during Q1 2025, resulting in total cash of $244.7 million[21] - Total debt rose to $699.5 million, up from $617.1 million at the end of 2024, primarily due to borrowings for mixed-use development projects[22] - Cash and cash equivalents increased to $244,679,000 as of March 31, 2025, up from $110,144,000 at the end of 2024[25] - The company reported a net increase in cash, cash equivalents, and restricted cash of $154,392,000 for Q1 2025, compared to $71,300,000 in Q1 2024[28] Asset and Liability Overview - Total assets grew to $1,681,439,000 as of March 31, 2025, compared to $1,523,846,000 at the end of 2024, marking a 10.3% increase[25] - Total liabilities increased to $1,183,273,000 as of March 31, 2025, up from $987,622,000 at the end of 2024[26] Operational Highlights - Mixed-use development generated $13 million of Adjusted OIBDA, a 30% increase from the prior year[5] - Baseball operating costs increased by 8% to $(48.8) million, largely due to higher player salaries and shared expenses[9] - The Braves recorded seven sellout games through the first three homestands of the season, indicating strong fan engagement[5] Cash Flow from Operations - Net cash provided by operating activities was $95,770,000 for Q1 2025, compared to $91,064,000 in Q1 2024[28]

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Atlanta Braves Holdings (BATRK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.Atlanta Braves Holdings is a member of our Consumer Discretionary group, which includes 257 different companies and ...

Company Overview - Atlanta Braves Holdings (BATRK) shares increased by 5.4% to close at $38.08, following a notable trading volume, contrasting with a 7.7% loss over the past four weeks [1] - The company is expected to report a quarterly loss of $0.94 per share, reflecting a year-over-year decline of 13.3%, with revenues projected at $35.2 million, down 5.1% from the previous year [3] Recent Developments - The Braves Development Company has acquired Pennant Park, a six-building office complex, which is anticipated to be immediately accretive due to strong tenant credit and over 80% occupancy [2] - The acquisition is viewed as a strategic move to enhance the real estate portfolio of Atlanta Braves Holdings [2] Earnings Estimates and Market Position - The consensus EPS estimate for the upcoming quarter has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] - Atlanta Braves Holdings currently holds a Zacks Rank of 1 (Strong Buy), suggesting positive market sentiment [4]

Atlanta Braves Holdings (BATRK) closed the last trading session at $39.58, gaining 0% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $51.67 indicates a 30.6% upside potential.The average comprises three short-term price targets ranging from a low of $45 to a high of $58, with a standard deviation of $6.51. While the lowest estimate indicates an increase of 13.7% from the current p ...

Shares of Atlanta Braves Holdings (BATRK) have gained 4.2% over the past four weeks to close the last trading session at $40.37, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $52 indicates a potential upside of 28.8%.The average comprises three short-term price targets ranging from a low of $45 to a high of $58, with a standard deviation of $6.56. While the lowest estimate ind ...

Financial Performance and Revenue - The Braves generated net revenue from postseason play of approximately $2.0 million in 2024, $11.3 million in 2023, and $8.4 million in 2022, with postseason appearances in 2 out of 18 potential games in 2024 and 4 out of 18 in 2023[100]. - Broadcasting rights are a significant revenue source, and any decrease in this revenue could negatively impact financial results[111]. - The Mixed-Use Development is expected to increase revenue, but there is no assurance that attendance will rise as anticipated[122]. - The company faced significant revenue impacts due to extraordinary events like COVID-19, with all MLB games postponed in 2020 and limitations on fan attendance in 2021[130]. - Economic uncertainty may adversely affect consumer demand for the company's products and services, impacting revenue derived from discretionary spending[151]. Player Contracts and Salaries - The Braves' Annual Player Salary Budget impacts their ability to enter into new player contracts, with flexibility increasing when existing obligations are below the budget limit[51]. - The MLB Collective Bargaining Agreement (CBA) mandates a minimum Major League contract salary of $740,000 for the 2024 season, with annual increases[65]. - The Competitive Balance Tax thresholds are set at $241 million for 2025 and $244 million for 2026, with penalties for exceeding these limits[69]. - The Braves were required to pay the Competitive Balance Tax for the 2024 and 2023 seasons due to exceeding predetermined payroll thresholds[104]. - The Braves' long-term contracts payable amount to $221.1 million in 2025, $169.2 million in 2026, $120.9 million in 2027, $105.2 million in 2028, $63.1 million in 2029, and $83.2 million combined thereafter[103]. Stadium and Facilities - The total cost of Truist Park was approximately $722 million, funded by $392 million from Cobb County and $330 million from Braves Holdings[56]. - Truist Park features 41,100 seats, including 63 suites and 4,700 premium seats, and spans approximately 1.1 million square feet[57]. - The Braves operate a new spring training facility in North Port, Florida, with an 8,200 capacity stadium and various training facilities[59]. - The Battery Atlanta is a 2.25 million square-foot mixed-use development surrounding Truist Park, featuring various entertainment and commercial facilities[60]. - The Stadium Operating Agreement obligates the Braves to play all home games at Truist Park through the 2046 season, with a 5-year extension option[117]. Debt and Financial Obligations - Braves Holdings had approximately $197.9 million in outstanding debt for stadium-related costs and $392.2 million for Mixed-Use Development as of December 31, 2024[121]. - Braves Holdings is subject to a Debt Service Rule requiring outstanding indebtedness to be at or below 8.0x available cash flow, or 12.0x for clubs with new stadiums, with excludable indebtedness set at $100 million for fiscal years 2024-2026[73]. - The company may face liquidity issues if unable to obtain debt financing, potentially leading to significant dilution for stockholders[114]. - The company’s ability to incur additional indebtedness is limited, which may negatively impact operations and financial flexibility[113]. - As of December 31, 2024, the company had $173.5 million in floating rate debt with a weighted average interest rate of 6.2% and $446.6 million in fixed rate debt with a weighted average interest rate of 4.4%[239]. Operational Challenges and Risks - The company is transitioning away from services previously provided by Liberty Media, which may lead to increased costs and operational challenges[88]. - Braves Holdings has incurred and expects to continue incurring material costs related to its separation from Liberty Media, impacting financial reporting and compliance[93]. - The company is working to replicate or replace critical services and systems previously provided by Liberty, which may involve additional costs and risks[89]. - The company is exposed to market risk due to changes in stock prices and interest rates, which could affect future earnings[237]. - The company's internal controls over financial reporting may not be adequate, which could lead to material misstatements and loss of investor confidence[157]. Employee and Talent Management - As of December 31, 2024, Braves Holdings had approximately 1,450 full-time, seasonal, and part-time employees, emphasizing a commitment to diverse and supportive workplaces[77]. - The company is focused on talent development, offering training and development programs to enhance employee skills and retention[79]. - Braves Holdings is committed to providing attractive compensation and benefits programs, including bonuses, healthcare, and retirement plans[81]. Regulatory and Compliance Issues - The company is subject to various privacy regulations, including the California Consumer Privacy Act, which became effective on January 1, 2020, and the California Privacy Rights Act, effective January 1, 2023[138]. - The company operates in international markets, including the Dominican Republic, which exposes it to operational risks and compliance challenges with local regulations[139]. - The exclusive forum provisions in the company's charter may limit stockholders' ability to bring claims in favorable judicial forums[156]. Market Competition and Audience Engagement - Braves Holdings is competing with various forms of entertainment and media for game day attendance and broadcasting revenue, which are critical for its financial performance[75]. - Viewership of professional baseball has experienced declines, with potential adverse effects on financial results if future declines occur[110]. - The Braves may face increased competition and diluted revenue from potential MLB expansion, which could impact player retention and fan interest[109]. - The company's ability to attract and retain key personnel is critical, with competition for qualified employees posing a risk to commercial success[105]. Ownership and Control - John C. Malone owns approximately 48.3% of the aggregate voting power, which may influence significant corporate actions and discourage potential change of control transactions[99]. - The company has restrictions on share ownership that may prevent changes in control, requiring MLB approval for any person or group seeking to acquire a controlling interest[144]. - The company has a multi-series voting structure, with BATRA shares having one vote per share, BATRB shares having ten votes per share, and BATRK shares having no voting rights[149]. - Dr. Malone owns approximately 48.3% of the aggregate voting power, which may lead to the company being deemed a "controlled company" under Nasdaq standards[147]. Miscellaneous Risks - Personal injuries at games could result in claims and increased expenses, despite existing insurance coverage[129]. - The company may face increased operational costs during periods of high inflation, affecting overall financial performance[152]. - Significant risks are associated with the Mixed-Use Development, including adverse market conditions and potential cost overruns[123]. - If the Stadium Operating Agreement is terminated, it could adversely impact the Braves' reputation and financial condition[120].

Core Viewpoint - Atlanta Braves Holdings reported a quarterly loss of $0.31 per share, which was better than the Zacks Consensus Estimate of a loss of $0.69, and an improvement from a loss of $0.52 per share a year ago [1][2] Financial Performance - The company posted revenues of $52.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.63%, and down from $67.75 million year-over-year [3] - The earnings surprise for the quarter was 55.07%, while the company had a negative surprise of -68% in the previous quarter [2] Stock Performance - Atlanta Braves Holdings shares have increased by approximately 2% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$1.07 on revenues of $31 million, and -$0.76 on revenues of $695.29 million for the current fiscal year [8] - The trend of estimate revisions for the company is mixed, which could change following the recent earnings report [7] Industry Context - The Diversified Operations industry, to which Atlanta Braves Holdings belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, indicating potential challenges ahead [9]