Liberty(US:FWONK)2019-05-09 20:24Revenue Growth - SIRIUS XM Holdings revenue increased to $1,744 million for the three months ended March 31, 2019, up from $1,375 million in the same period of 2018, representing a growth of approximately 27%[205] - Formula 1 revenue rose to $246 million for the three months ended March 31, 2019, compared to $114 million in the prior year, marking an increase of about 116%[205] - Consolidated revenue for Liberty increased by $495 million year-over-year, driven by $369 million growth from SIRIUS XM Holdings and $132 million from Formula 1[206] - Total revenue for SIRIUS XM increased to $1.493 billion for the three months ended March 31, 2019, up from $1.375 billion in the prior year, representing an 8.6% increase[241] - Subscriber revenue for SIRIUS XM rose by approximately 9% to $1.370 billion, primarily due to higher U.S. Music Royalty Fees and increased self-pay subscription revenue[241] - Advertising revenue for SIRIUS XM increased by approximately 10% to $46 million, driven by higher rates and a greater number of spots sold[242] - Equipment revenue for SIRIUS XM grew by approximately 17% to $41 million, attributed to increased royalty revenue from a new generation of chipsets[243] - Total revenue for Pandora was $251 million, with $88 million from subscriber revenue and $163 million from advertising revenue[241] - Total Formula 1 revenue increased to $246 million for the three months ended March 31, 2019, compared to $114 million in the prior year, reflecting a significant increase in race promotion and broadcasting revenue[269] Operating Income and Expenses - Consolidated operating income decreased by $27 million to $200 million for the three months ended March 31, 2019, primarily due to a $89 million decline in SIRIUS XM Group operating results[207] - Selling, general and administrative expenses increased by 53% to $262 million, largely due to the inclusion of Pandora and higher personnel-related costs[250] - Other operating expenses rose by approximately 67% to $45 million, driven by additional expenses associated with the inclusion of Pandora[251] - Stock-based compensation increased by 44% to $49 million, primarily due to an increase in the number of awards granted[253] - Cost of Formula 1 revenue increased approximately $67 million during the three months ended March 31, 2019, primarily due to increased team payments[274] - Other operating expenses for Braves Holdings decreased by $12 million during the three months ended March 31, 2019, due to lower recognition of player salaries and game day operating expenses[283] - Selling, general and administrative expenses for Braves Holdings increased by $4 million during the three months ended March 31, 2019, driven by higher legal costs[284] Cash and Liquidity - As of March 31, 2019, the Liberty SiriusXM Group had cash and cash equivalents of approximately $98 million, including about $62 million of subsidiary cash[199] - The Braves Group reported cash and cash equivalents of approximately $163 million as of March 31, 2019[201] - The Formula One Group had cash and cash equivalents of approximately $372 million as of March 31, 2019, which included around $260 million of subsidiary cash[202] - Cash provided by operating activities totaled $649 million for the three months ended March 31, 2019, compared to $624 million in the prior year[227] - Liberty's primary use of cash included $222 million for Series C Liberty SiriusXM common stock repurchases during the three months ended March 31, 2019[227] - SIRIUS XM Holdings declared a cash dividend of $57 million during the three months ended March 31, 2019, of which Liberty received $38 million[228] - Liberty believes that available sources of liquidity are sufficient to cover projected future uses of cash[234] Debt and Financial Instruments - The company's variable rate debt amounts to $1,382 million with a weighted average interest rate of 4.6%[288] - The fixed rate debt totals $7,094 million with a weighted average interest rate of 4.9%[288] - The Braves Group has variable rate debt of $143 million at a weighted average interest rate of 5.4%[288] - The Formula One Group's fixed rate debt is $4,575 million with a weighted average interest rate of 3.3%[288] - The company's stock in Live Nation, not reflected at fair value, would decrease by $443 million if its market price fell by 10%[289] - The company employs equity collars and other financial instruments to manage market risk associated with certain investment positions[288] - Interest rate swap arrangements are utilized to manage exposure to interest rate risk[288] Subscriber Metrics - SIRIUS XM had approximately 34.2 million subscribers as of March 31, 2019, with a 4% increase in the daily weighted average number of subscribers[241] - Pandora had approximately 6.9 million subscribers and 66.0 million active users as of March 31, 2019[238] Future Outlook - The acquisition of Pandora by SIRIUS XM Holdings on February 1, 2019, is expected to impact the company's future results positively[200] - Consolidated Adjusted OIBDA improved by $125 million for the three months ended March 31, 2019, compared to the same period in the prior year[211] - Liberty SiriusXM Group, Formula One Group, and Braves Group contributed $63 million, $60 million, and $2 million improvements in Adjusted OIBDA, respectively[211]