Liberty(US:LSXMA)2024-08-08 22:16Financial Position - As of June 30, 2024, the Liberty SiriusXM Group had cash and cash equivalents of approximately $188 million, including about $100 million of subsidiary cash[170]. - The Formula One Group had cash and cash equivalents of approximately $1,491 million, which included $1,303 million of subsidiary cash[172]. - Liberty had cash and cash equivalents of $188 million for the Liberty SiriusXM Group and $1,491 million for the Formula One Group as of June 30, 2024[200]. - Liberty's cash provided by operating activities for the six months ended June 30, 2024, was $753 million, a decrease from $854 million in the prior year[202]. - Liberty expects to fund its projected uses of cash with cash on hand, borrowing capacity, and dividends from operating subsidiaries[204]. - Liberty's primary uses of cash during the six months ended June 30, 2024, included $205 million for acquisitions and $103 million for debt repayments[202]. Revenue Performance - Consolidated revenue decreased by $78 million for the three months ended June 30, 2024, compared to the same period in the prior year, primarily due to a decrease in Braves Holdings revenue and Sirius XM Holdings revenue[178]. - Consolidated revenue increased by $115 million for the six months ended June 30, 2024, driven by increases in Formula 1 revenue and revenue from QuintEvents, which was acquired in January 2024[178]. - Total revenue for Sirius XM Holdings decreased to $4.340 billion for the six months ended June 30, 2024, compared to $4.394 billion in the prior year[215]. - SiriusXM subscriber revenue decreased by 5% and 3% for the three and six months ended June 30, 2024, respectively, primarily due to a reduction in self-pay revenue[215]. - Pandora and Off-platform subscriber revenue increased by 7% and 5% during the three and six months ended June 30, 2024, respectively, driven by rate increases on subscription plans[219]. - SiriusXM advertising revenue decreased by 2% for both the three and six months ended June 30, 2024, primarily due to lower revenue from entertainment channels[216]. - Primary Formula 1 revenue increased by $121 million and $270 million during the three and six months ended June 30, 2024, respectively, driven by the calendar variance with more events[233]. - Total Formula 1 revenue reached $871 million for the three months and $1,424 million for the six months ended June 30, 2024, compared to $724 million and $1,105 million in the prior year[233]. Operating Income and Expenses - Consolidated operating income increased by $5 million for the three months ended June 30, 2024, primarily due to increases in Sirius XM Holdings and Formula 1 operating results[179]. - Consolidated operating income increased by $167 million for the six months ended June 30, 2024, primarily driven by increases in Formula 1 and Sirius XM Holdings operating results[179]. - Adjusted OIBDA decreased by $34 million for the three months ended June 30, 2024, primarily due to the Split-Off of Braves Holdings and a decrease in Sirius XM Holdings Adjusted OIBDA[185]. - Adjusted OIBDA increased by $104 million for the six months ended June 30, 2024, primarily driven by increases in Formula 1 and QuintEvents Adjusted OIBDA[185]. - Stock-based compensation expense was $116 million for the six months ended June 30, 2024, compared to $110 million for the same period in 2023[181]. - Other costs increased by $35 million and $64 million for the three and six months ended June 30, 2024, respectively, primarily due to higher commissions and partner servicing costs associated with increased Formula 1 revenue streams[239]. - Selling, general and administrative expenses rose by $16 million and $17 million during the three and six months ended June 30, 2024, respectively, mainly due to higher personnel and information technology costs[239]. - Customer service and billing costs decreased by 12% and 9% for the three and six months ended June 30, 2024, respectively, driven by lower call center costs and transaction fees[221]. - Other operating expenses decreased by 17% and 4% for the three and six months ended June 30, 2024, respectively, driven by higher capitalized personnel-related costs[227]. Earnings and Taxation - Net earnings were $507 million and $752 million for the three and six months ended June 30, 2024, respectively, compared to $303 million and $355 million for the same periods in 2023[197]. - Income tax expense for the three and six months ended June 30, 2024, was $116 million and $187 million, respectively, compared to $64 million and $114 million in the prior year[196]. - The company recognized tax expense less than the expected federal rate of 21% primarily due to certain gains that are not taxable and tax credits from clean energy investments[196]. Strategic Transactions - The Company completed the split-off of Atlanta Braves Holdings on July 18, 2023, exchanging each outstanding share of Liberty Braves common stock for one share of Atlanta Braves Holdings common stock[165]. - On August 3, 2023, the Company reclassified its outstanding shares into three new tracking stocks: Liberty SiriusXM common stock, Liberty Formula One common stock, and Liberty Live common stock[166]. - The anticipated completion date for the proposed Transactions, including the Liberty Sirius XM Holdings Split-Off and the Merger, is September 9, 2024[174]. - The Liberty Sirius XM Holdings Split-Off is intended to be tax-free to holders of Liberty SiriusXM common stock, except for cash received in lieu of fractional shares[168]. - The Split-Off of Braves Holdings did not represent a strategic shift that had a major effect on the Company's operations and financial results[175]. Market and Operational Risks - The Company faces operational risks from subsidiaries and business affiliates with operations outside of the U.S.[158]. - The company is exposed to market risk from adverse changes in stock prices and interest rates, with ongoing monitoring of stock market changes and specific holdings[241]. - As of June 30, 2024, the company’s fixed rate debt amounted to $9.91 billion with a weighted average interest rate of 4.2%[242]. - The company’s variable rate debt totaled $945 million with a weighted average interest rate of 7.3%[242]. - The market price of Live Nation stock, a publicly traded security, could result in a $653 million decrease in value if it were 10% lower at June 30, 2024[244]. Subscriber Metrics - As of June 30, 2024, SiriusXM had approximately 33.3 million subscribers, while Pandora had approximately 45.1 million monthly active users and 6.0 million subscribers[209][210].