Liberty(FWONA) - 2024 Q3 - Quarterly Report

Financial Position - As of September 30, 2024, the Formula One Group had cash and cash equivalents of approximately $2,666 million, including$1,449 million of subsidiary cash[140]. - Cash and cash equivalents for Formula 1 amounted to $1,383 million as of September 30, 2024[166]. - Cash provided by operating activities for Formula One Group was$587 million for the nine months ended September 30, 2024, compared to $554 million for the same period in 2023[170]. - Liberty's primary uses of cash during the nine months ended September 30, 2024, included$205 million for acquisitions and $117 million for debt repayments[170]. - Total cash and cash equivalents at the end of the period were$3,061 million, up from $2,120 million at the end of September 30, 2023[19]. - Total liabilities decreased to$5,749 million as of September 30, 2024, from $21,882 million at December 31, 2023[6]. - Total assets as of December 31, 2023, amounted to$29.901 billion, with current assets at $1.361 billion and long-term debt at$10.063 billion[36]. - Total assets for the Formula One Group were $11,980 million as of September 30, 2024[118]. - Total liabilities and equity as of September 30, 2024, amounted to$13,208 million, a decrease from $41,327 million as of December 31, 2023[9]. Revenue and Earnings - Consolidated revenue decreased by$25 million to $911 million for the three months ended September 30, 2024, compared to the same period last year, primarily due to a decrease in Braves Holdings revenue and Formula 1 revenue[146]. - For the nine months ended September 30, 2024, consolidated revenue increased by$144 million to $2,486 million, driven by an increase in Formula 1 revenue and revenue from QuintEvents[146]. - Operating income for Formula 1 increased by$14 million to $146 million for the three months ended September 30, 2024, and increased by$118 million to $366 million for the nine months ended September 30, 2024[147][148]. - Net earnings from continuing operations for the three and nine months ended September 30, 2024, were$132 million and $294 million, respectively, compared to$152 million and $41 million for the same periods in 2023[163]. - Revenue for the three months ended September 30, 2024, was$1,664 million, a decrease of 26.7% compared to $2,271 million for the same period in 2023[39]. - Operating income for the three months ended September 30, 2024, was a loss of$2,979 million, compared to an operating income of $528 million for the same period in 2023[39]. - Net earnings attributable to Live Nation stockholders for the three months ended September 30, 2024, were$452 million, compared to $521 million in the same period of 2023, a decline of 13.3$277 million, which included $205 million in cash[135]. - Liberty Media Corporation acquired QuintEvents, LLC for approximately$277 million, including $205 million in cash and$6 million for a pre-existing condition, resulting in $235 million of goodwill recorded[27]. - The company agreed to acquire approximately 86$77.50 per share, generating gross proceeds of approximately $949 million to partially fund the Dorna acquisition[28]. - The company recorded$121 million of deferred revenue as a result of the QuintEvents acquisition[28]. - The company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of September 30, 2024[129]. Operational Performance - The operational risks of subsidiaries and business affiliates with operations outside of the U.S. could impact overall performance[125]. - The Company’s financial condition is influenced by the regulatory and competitive environment of the industries in which it operates[125]. - The Atlanta Braves Holdings Split-Off in 2023 negatively impacted Braves Holdings revenue, contributing to the overall revenue decrease[146]. - Revenue from QuintEvents, acquired in January 2024, partially offset the revenue decline from Braves Holdings[146]. - The company anticipates recognizing approximately $673 million in revenue from undelivered performance obligations for the remainder of 2024[113]. Stockholder Information - Basic net earnings from continuing operations attributable to Liberty stockholders for Series A, B, and C Liberty Formula One common stock was$0.48 per share for the three months ended September 30, 2024[14]. - Basic earnings attributable to Liberty Formula One stockholders for the three months ended September 30, 2024, were $117 million, compared to$118 million for the same period in 2023[67]. - Diluted earnings attributable to Liberty Formula One stockholders for the three months ended September 30, 2024, were $117 million, up from$95 million in the same period of 2023[67]. - The company reported a net loss from discontinued operations of $(315) million for the nine months ended September 30, 2024[18]. - Comprehensive earnings attributable to Liberty stockholders for the nine months ended September 30, 2024, were$(2,429) million, a decrease from $421 million in the same period in 2023[16]. Strategic Developments - The Atlanta Braves Holdings Split-Off was completed on July 18, 2023, and was intended to be tax-free to stockholders, except for cash received in lieu of fractional shares[134]. - The Liberty Sirius XM Holdings Split-Off was completed on September 9, 2024, with each outstanding share of Liberty SiriusXM common stock exchanged for 0.8375 of a share of Liberty Sirius XM Holdings common stock[136]. - The split-off of Liberty Sirius XM Holdings was completed on September 9, 2024, representing a strategic shift with a major effect on the company's operations and financial results[32]. - The IRS agreed with the nontaxable characterization of the Atlanta Braves Holdings Split-Off and the Reclassification, completed in July and September 2024, respectively[44]. Cost Management - Selling, general and administrative expenses increased by$22 million to $79 million for the three months ended September 30, 2024, primarily due to higher personnel and IT costs[184]. - Selling, general, and administrative expenses for the three months ended September 30, 2024, were$116 million, an increase of 24.7% compared to $93 million in the prior year[11]. - Cost of Formula 1 revenue decreased by$54 million to $561 million for the three months ended September 30, 2024, compared to$615 million in the prior year[182]. - Team payments decreased by $61 million to$371 million for the three months ended September 30, 2024, due to one less event held[181]. Market Trends - The company is focused on expanding its market presence and enhancing its strategic investments in the media and entertainment sectors[128]. - The company anticipates potential impacts from economic conditions and consumer demand fluctuations on its operations and financial performance[122]. - Liberty recognized that Formula 1's revenue and expenses are generally lower in the first quarter compared to the rest of the year due to the seasonality of World Championship race events[30].