Atlanta Braves (BATRK) - 2024 Q3 - Quarterly Report

Revenue Performance - Atlanta Braves Holdings reported total revenue of $290.7 million for the three months ended September 30, 2024, compared to $271.8 million for the same period in 2023, representing a 6.5% increase [124]. - Baseball event revenue increased by $12.0 million (7.5%) to $172.8 million for the three months ended September 30, 2024, driven by new sponsorship agreements and contractual rate increases [125]. - Broadcasting revenue rose by $1.7 million (2.5%) to $70.99 million for the three months ended September 30, 2024, attributed to an increase in the number of regular season games and contractual rate increases [126]. - Retail and licensing revenue decreased by $4.4 million (21.1%) to $16.5 million for the three months ended September 30, 2024, primarily due to reduced attendance at regular season home games [126]. - Other revenue increased by $7.7 million (147.0%) to $12.96 million for the three months ended September 30, 2024, mainly due to additional concerts at the Stadium [126]. Expenses and Losses - The company experienced a net loss of $9.56 million for the three months ended September 30, 2024, compared to a net loss of $9.66 million for the same period in 2023 [124]. - Total expenses for the three months ended September 30, 2024, were $225.97 million, up from $198.20 million in the same period in 2023, reflecting a 14.0% increase [124]. - Baseball operating expenses rose by $27.8 million and $45.8 million for the three and nine months ended September 30, 2024, respectively, primarily due to increases in major league player salaries and MLB's revenue sharing plan [128]. - Adjusted OIBDA decreased by $8.9 million and $7.4 million during the three and nine months ended September 30, 2024, respectively, compared to the prior year [136]. Cash and Debt Management - The Company had $100.9 million in cash and cash equivalents as of September 30, 2024, primarily invested in highly rated financial instruments [147]. - The maximum amount available under the League Wide Credit Facility was $125.0 million as of September 30, 2024, which remains undrawn [152]. - The Company expects to fund projected uses of cash through cash on hand, operations, and borrowings under construction loans and revolvers [149]. - As of September 30, 2024, Braves Facility Fund LLC had fully drawn $39.7 million under the MLB facility fund - revolver, with a repayment date of July 10, 2026 [155]. - The TeamCo Revolver has revolving commitments of $150 million, with $120.0 million available as of September 30, 2024, after $30 million was drawn [155]. Interest Rate Exposure - Interest expense increased by $0.7 million during the three and nine months ended September 30, 2024, primarily due to higher interest rates on variable rate debt [140]. - As of September 30, 2024, the company had $161.9 million in floating rate debt with a weighted average interest rate of 6.6% [159]. - The company also had $481.2 million in fixed rate debt with a weighted average interest rate of 4.4% as of September 30, 2024 [159]. - The company manages interest rate exposure by maintaining a mix of fixed and variable rate debt, including interest rate swap arrangements when deemed appropriate [158]. - The nature and amount of long-term and short-term debt are expected to vary based on future requirements and market conditions [158]. Strategic Focus - The company is transitioning various general and administrative services from Liberty Media Corporation to its own management team following the Split-Off completed on July 18, 2023 [112]. - The company is facing potential impacts from the Diamond Sports Group bankruptcy, which could affect its local broadcasting revenue [120]. - Atlanta Braves Holdings is focused on expanding its mixed-use development segment, which includes retail, office, hotel, and entertainment operations within The Battery Atlanta [121]. - Mixed-Use Development revenue increased by $1.9 million and $5.2 million for the three and nine months ended September 30, 2024, respectively, driven by increases in parking revenue and rental income [127]. - Mixed-Use Development Adjusted OIBDA increased by $1.5 million and $3.6 million for the three and nine months ended September 30, 2024, respectively [138]. - Corporate and Other Adjusted OIBDA loss decreased by $2.1 million and $7.2 million during the three and nine months ended September 30, 2024, respectively [139]. Earnings Performance - Net earnings for the three months ended September 30, 2024, were $10.0 million, a significant improvement from a net loss of $6.0 million in the same period of 2023 [146].