Financial Position - As of June 30, 2024, Liberty SiriusXM Group had cash and cash equivalents of approximately $188 million, including about $100 million of subsidiary cash[170]. - The Formula One Group reported 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 Liberty SiriusXM Group and $1,491 million for 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 of 12% from $854 million in the same period of 2023[202]. - Liberty expects to fund its projected uses of cash with cash on hand, borrowing capacity, and dividends from operating subsidiaries[204]. Revenue Performance - Consolidated revenue decreased by $78 million for the three months ended June 30, 2024, compared to the same period in 2023, primarily due to a decrease in Braves Holdings revenue and Sirius XM Holdings revenue, partially offset by an increase in Formula 1 revenue[178]. - Consolidated revenue increased by $115 million for the six months ended June 30, 2024, compared to the same period in 2023, 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, down 1.2% from $4.394 billion in the same period of 2023[215]. - Total SiriusXM revenue for the six months ended June 30, 2024, was $3.307 billion, a decrease from $3.403 billion in the same period of 2023[215]. - 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[235]. - 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, compared to the same period in 2023, 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]. - Total selling, general and administrative expenses increased by $16 million and $17 million for the three and six months ended June 30, 2024, respectively, compared to the prior year, primarily due to higher personnel and IT costs[239]. Subscriber Metrics - Sirius XM Holdings had approximately 33.3 million subscribers as of June 30, 2024, while Pandora had approximately 45.1 million monthly active users and 6.0 million subscribers[209][210]. - 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]. Costs and Expenses - 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 costs of services increased by 16% and 17% during the three and six months ended June 30, 2024, respectively, due to higher hosting costs associated with the streaming platform[221]. - Subscriber acquisition costs decreased by 1% for both the three and six months ended June 30, 2024, due to lower hardware subsidies[225]. - Selling, general and administrative expenses decreased by 2% for both the three and six months ended June 30, 2024, primarily due to lower personnel-related costs[226]. - 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]. Tax and Earnings - 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]. - 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]. - The share of earnings (losses) of affiliates for Liberty SiriusXM Group was $1 million for the three months ended June 30, 2024, compared to $79 million in the prior year[190]. - Realized and unrealized gains on financial instruments totaled $169 million for the three months ended June 30, 2024, compared to a loss of $96 million in the prior year[191]. - Other net income decreased by $22 million and $9 million for the three and six months ended June 30, 2024, respectively, compared to the prior year, primarily due to gains on early debt extinguishment recognized in 2023[195]. Risks and Market Conditions - The company is subject to various risks, including competition faced by Sirius XM Holdings and the impact of weak economic conditions on consumer demand[159]. - The company is exposed to market risk from changes in stock prices and interest rates, with significant holdings in publicly traded securities[241]. - As of June 30, 2024, the company had $9.91 billion in fixed rate debt with a weighted average interest rate of 4.2% and $945 million in variable rate debt with a weighted average interest rate of 7.3%[242]. - A 10% decrease in the market price of Live Nation stock would result in a $653 million reduction in the aggregate value of that security[244]. Corporate Actions - On July 18, 2023, the company completed the split-off of Atlanta Braves Holdings, exchanging each outstanding share of Liberty Braves common stock for one share of Atlanta Braves Holdings common stock[165]. - The company reclassified its outstanding shares into three new tracking stocks on August 3, 2023, including Liberty SiriusXM common stock and Liberty Formula One 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 IRS has agreed with the nontaxable characterization of the Split-Off and Reclassification transactions[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]. - The interest expense related to certain debt was reattributed from Liberty SiriusXM Group to Liberty Live Group effective August 3, 2023[188].
Liberty(LSXMK) - 2024 Q2 - Quarterly Report