Liberty(US:LSXMK)2019-11-12 11:24Revenue Performance - SIRIUS XM Holdings reported revenue of $2,011 million for Q3 2019, up from $1,468 million in Q3 2018, representing a 36.9% increase[211]. - For the nine months ended September 30, 2019, SIRIUS XM Holdings generated revenue of $5,732 million, compared to $4,275 million in the same period of 2018, marking a 34.1% increase[211]. - The total consolidated revenue for Liberty increased by $541 million for Q3 2019 compared to Q3 2018, driven by the acquisition of Pandora and growth in SIRIUS XM and Braves Holdings[212]. - Formula 1's revenue for Q3 2019 was $633 million, a decrease from $647 million in Q3 2018, indicating a 2.2% decline[211]. - The Braves Group reported a revenue of $212 million in Q3 2019, up from $200 million in Q3 2018, which is a 6% increase[211]. - SIRIUS XM Holdings reported total revenue of $5,732 million for the nine months ended September 30, 2019, up 34% from $4,275 million in the same period of 2018[253]. - Pandora generated $1,139 million in total revenue for the nine months ended September 30, 2019, following its acquisition by SIRIUS XM Holdings[253]. - Pro forma total revenue for SIRIUS XM and Pandora combined was $2,013 million for the three months and $5,852 million for the nine months ended September 30, 2019, compared to $1,888 million and $5,404 million in the prior year[270]. Operating Income and Adjusted OIBDA - The consolidated operating income for the Liberty SiriusXM Group was $454 million in Q3 2019, slightly down from $455 million in Q3 2018[211]. - Adjusted OIBDA for SIRIUS XM Holdings was $659 million in Q3 2019, an increase from $587 million in Q3 2018, reflecting a 12.3% growth[211]. - Adjusted OIBDA for the nine months ended September 30, 2019, improved by $256 million to $2.283 billion, driven by $212 million and $77 million improvements in SIRIUS XM Holdings and Formula 1, respectively[217]. - SIRIUS XM's operating income for the nine months ended September 30, 2019, was $1,196 million, a slight decrease from $1,217 million in the same period of 2018[253]. - Adjusted OIBDA for the three months ended September 30, 2019, was $162 million, an increase of $4 million year-over-year, while for the nine months ended September 30, 2019, it increased by $77 million to $372 million[282]. Cash and Liquidity - The Liberty SiriusXM Group's cash and cash equivalents were approximately $133 million as of September 30, 2019[205]. - The Formula One Group had cash and cash equivalents of approximately $419 million as of September 30, 2019[208]. - As of September 30, 2019, Liberty had $386 million of unencumbered marketable equity securities, providing potential liquidity sources[232]. - Liberty's cash and cash equivalents totaled $133 million for the Liberty SiriusXM Group, $142 million for the Braves Group, and $419 million for the Formula One Group as of September 30, 2019[235]. - Liberty SiriusXM Group generated $1,437 million in cash from operating activities for the nine months ended September 30, 2019, an increase of 11.3% from $1,291 million in 2018[236]. - Liberty's projected cash uses include investments in existing or new businesses and potential stock buybacks, expected to be funded by cash on hand and borrowing capacity[240]. Expenses and Costs - Stock-based compensation expense increased to $217 million for the nine months ended September 30, 2019, compared to $145 million in the same period of 2018, primarily due to SIRIUS XM Holdings[215]. - Other net expense increased by $57 million for the three months ended September 30, 2019, primarily due to losses on extinguishment of debt related to SIRIUS XM Holdings[227]. - Consolidated interest expense rose by $19 million and $42 million for the three and nine months ended September 30, 2019, respectively, mainly due to increased debt levels in the Liberty SiriusXM Group[220]. - The effective tax rate for the nine months ended September 30, 2019, was 40.9%, significantly higher than 13.8% for the same period in 2018, influenced by state income taxes and changes in valuation allowance[229]. - Selling, general and administrative expenses increased 72% and 64% for the three and nine months ended September 30, 2019, respectively, mainly due to additional expenses from the inclusion of Pandora[262]. - Other operating expenses increased approximately 142% and 122% for the three and nine months ended September 30, 2019, respectively, driven by expenses associated with the inclusion of Pandora[263]. - Programming and content costs increased 14% and 9% for the three and nine months ended September 30, 2019, respectively, primarily due to higher content licensing and personnel-related costs[260]. - Subscriber acquisition costs decreased approximately 8% and 11% for the three and nine months ended September 30, 2019, respectively, compared to the prior year due to reductions in OEM hardware subsidy rates and lower installation volumes[261]. Subscriber Metrics - The total number of SIRIUS XM subscribers reached approximately 34.6 million as of September 30, 2019, reflecting a 3% increase in the daily weighted average number of subscribers[246]. - SIRIUS XM subscriber revenue increased approximately 8% for the nine months ended September 30, 2019, reaching $4,196 million compared to $3,903 million in 2018[253]. - SIRIUS XM's advertising revenue rose approximately 10% for the nine months ended September 30, 2019, totaling $149 million compared to $135 million in the prior year[254]. - Pro forma Pandora subscriber revenue increased 4% and 16% during the three and nine months ended September 30, 2019, respectively, due to a greater weighted average number of subscribers[271]. Formula 1 Specifics - Operating income for Formula 1 was $44 million in Q3 2019, compared to $39 million in Q3 2018, showing a 12.8% increase[211]. - Total Formula 1 revenue for the three months ended September 30, 2019, was $633 million, a decrease of $14 million compared to the same period in 2018, while for the nine months ended September 30, 2019, it increased to $1,499 million, up $153 million year-over-year[282]. - Primary Formula 1 revenue decreased by $7 million to $553 million for the three months ended September 30, 2019, but increased by $146 million to $1,282 million for the nine months ended September 30, 2019, compared to the prior year[283]. - Cost of Formula 1 revenue decreased by $17 million to $434 million for the three months ended September 30, 2019, but increased by $78 million to $1,023 million for the nine months ended September 30, 2019, compared to the prior year[287]. - Team payments decreased by $9 million to $335 million for the three months ended September 30, 2019, but increased by $70 million to $766 million for the nine months ended September 30, 2019, compared to the prior year[288]. - Other Formula 1 revenue decreased by $7 million to $80 million for the three months ended September 30, 2019, but increased by $7 million to $217 million for the nine months ended September 30, 2019, compared to the prior year[286].