Liberty(LSXMB) - 2024 Q4 - Annual Results

Executive Summary and Highlights CEO's Strategic Priorities Derek Chang, Liberty Media's new President & CEO, outlined strategic priorities for 2025, focusing on capitalizing on Formula 1's success, closing the MotoGP acquisition, and addressing the Liberty Live structure to drive shareholder value - New CEO Derek Chang's strategic priorities for 2025 include capitalizing on Formula 1's success, closing the MotoGP acquisition, and addressing the Liberty Live structure[1][3] Formula One Group Highlights Formula One Group reported significant growth in 2024, with fan attendance up 9% to 6.5 million, strong TV viewership and social media engagement, and several key race promotion and sponsorship agreements renewed or extended. The acquisition of MotoGP is pending regulatory approval - 2024 F1 fan attendance reached 6.5 million, a 9% increase compared to 2023[2] - F1 achieved 1.6 billion cumulative TV viewers and 97 million social media followers[2] - Key race promotion agreements renewed include Belgian Grand Prix (multi-year rotation), Dutch Grand Prix (through 2026), Chinese Grand Prix (through 2030), and Italian and Monaco Grands Prix (through 2031)[2] - Partnership with Crypto.com extended through 2030, and a new agreement signed with global lottery operator Allwyn as Official Partner[2] - Liberty Media extended the regulatory approval date for the MotoGP acquisition to June 30, 2025[2] Liberty Live Group Highlights As of December 31, 2024, the fair value of Liberty Live Group's investment in Live Nation was $9.0 billion - Fair value of Live Nation investment was $9.0 billion as of December 31, 2024[2] Discussion of Results Formula One Group Financial Performance The Formula One Group, comprising F1 and Quint, reported a 6% increase in total revenue for the full year 2024 to $3,653 million, driven by F1's record performance. Full year operating income grew 26% to $492 million, and Adjusted OIBDA increased 9% to $791 million, reflecting strong commercial success and operational efficiency Formula One Group Financial Results (Full Year) | Metric | 2023 (millions) | 2024 (millions) | % Change (YoY) | | :---------------------- | :-------------- | :-------------- | :-------------- | | Total Revenue (millions) | $3,222 | $3,653 | 13.4% | | Operating Income (Loss) (millions) | $297 | $287 | (3.4%) | | Adjusted OIBDA (Loss) (millions) | $686 | $774 | 12.8% | Formula One Group Financial Results (Q4) | Metric | 2023 (millions) | 2024 (millions) | % Change (YoY) | | :---------------------- | :-------------- | :-------------- | :-------------- | | Total Revenue (millions) | $1,230 | $1,167 | (5.1%) | | Operating Income (Loss) (millions) | $122 | $23 | (81.1%) | | Adjusted OIBDA (Loss) (millions) | $243 | $200 | (17.7%) | - Formula 1 President and CEO, Stefano Domenicali, highlighted 2024 as a record year for race count, revenue, and Adjusted OIBDA, expressing optimism for 2025 with F1's 75th anniversary[8] F1 Operating Results F1's total revenue for the full year 2024 increased by 6% to $3,411 million, driven by growth across all primary revenue streams, including race promotion, media rights, and sponsorship. Full year operating income surged 26% to $492 million, and Adjusted OIBDA grew 9% to $791 million. The fourth quarter saw an 8% revenue decrease and 18% operating income decrease, primarily due to lower proportionate recognition of season-based income and reduced Las Vegas Grand Prix ticketing revenue F1 Operating Results (Full Year) | Metric | 2023 (millions) | 2024 (millions) | % Change (YoY) | | :---------------------------------- | :-------------- | :-------------- | :-------------- | | Primary Formula 1 revenue (millions) | $2,560 | $2,757 | 8% | | Other Formula 1 revenue (millions) | $662 | $654 | (1%) | | Total Formula 1 revenue (millions) | $3,222 | $3,411 | 6% | | Cost of Formula 1 revenue (millions) | $(2,256) | $(2,332) | (3%) | | Selling, general and administrative (millions) | $(241) | $(288) | (20%) | | Adjusted OIBDA (millions) | $725 | $791 | 9% | | Operating income (loss) (millions) | $392 | $492 | 26% | | Number of races | 22 | 24 | 9% | F1 Operating Results (Q4) | Metric | 2023 (millions) | 2024 (millions) | % Change (YoY) | | :---------------------------------- | :-------------- | :-------------- | :-------------- | | Primary Formula 1 revenue (millions) | $838 | $797 | (5%) | | Other Formula 1 revenue (millions) | $392 | $329 | (16%) | | Total Formula 1 revenue (millions) | $1,230 | $1,126 | (8%) | | Cost of Formula 1 revenue (millions) | $(916) | $(840) | 8% | | Selling, general and administrative (millions) | $(76) | $(84) | (11%) | | Adjusted OIBDA (millions) | $238 | $202 | (15%) | | Operating income (loss) (millions) | $153 | $126 | (18%) | | Number of races | 6 | 6 | 0% | - Primary F1 revenue streams for 2024 comprised: race promotion (29.3%), media rights (32.8%), and sponsorship fees (18.6%)[11] - Full year primary F1 revenue growth was driven by new sponsors, contractual increases, additional sponsorship inventory from two extra races (China and Imola), and continued growth in F1 TV subscriptions. This was partially offset by lower ticketing revenue from the Las Vegas Grand Prix[13] - Q4 primary F1 revenue decreased due to lower ticketing revenue from the Las Vegas Grand Prix and lower proportionate recognition of season-based media rights income, partially offset by new sponsorship revenue[14] - Full year operating income and Adjusted OIBDA grew, despite increased team payments (due to F1 revenue growth) and higher other costs of F1 revenue (lease expense for Las Vegas Grand Prix Plaza, commissions, new F2 cars, freight, technical, digital, and FIA regulatory costs)[16] - Q4 operating income and Adjusted OIBDA decreased due to revenue decline, though team payments decreased due to lower pro rata recognition and reduced costs based on full year results[18] Corporate and Other Operating Results Corporate and Other revenue for the Formula One Group increased in both the full year and fourth quarter of 2024, primarily due to the inclusion of Quint results and rental income from the Las Vegas Grand Prix Plaza. Quint's revenue is seasonal, with largest events typically in Q2 and Q4 - Corporate and Other revenue grew in full year and Q4 2024 due to Quint results and $33 million (full year) / $13 million (Q4) rental income from the Las Vegas Grand Prix Plaza[19] - Quint's Q4 results were primarily driven by F1 Experiences across the six races held, with its revenue being seasonal around major events in Q2 and Q4[19] Liberty Live Group Overview Liberty Live Group's primary assets include its interest in Live Nation and other minority investments. The group was allocated $11 million in corporate-level selling, general, and administrative expenses for the full year 2024 - Liberty Live Group's assets primarily consist of Liberty Media's interest in Live Nation and other minority investments[21] - Corporate level selling, general and administrative expense allocated to Liberty Live Group was $11 million for the full year 2024[20] Share Repurchases Liberty Media did not repurchase any common stock between November 1, 2024, and January 31, 2025. The company retains a remaining repurchase authorization of $1.1 billion as of February 1, 2025, applicable across its tracking stocks - No repurchases of Liberty Media's common stock occurred from November 1, 2024, through January 31, 2025[22] - Total remaining repurchase authorization for Liberty Media as of February 1, 2025, is $1.1 billion[22] Supplemental Financial Information Fair Value of Corporate Public Holdings The fair value of Liberty Live Group's investment in Live Nation increased from $7,625 million as of September 30, 2024, to $9,019 million as of December 31, 2024 Fair Value of Corporate Public Holdings (millions) | Group | 9/30/2024 (millions) | 12/31/2024 (millions) | | :---------------- | :-------- | :--------- | | Liberty Live Group | $7,625 | $9,019 | | Total Liberty Media | $7,625 | $9,019 | Cash and Debt Total consolidated cash and cash equivalents decreased by $98 million in Q4 2024 to $2,956 million. Formula One Group's cash decreased by $35 million due to operational cash usage and capital expenditures, while its debt remained relatively flat. Liberty Live Group's cash decreased by $63 million, primarily due to debt reduction and interest payments, with its total debt decreasing by $50 million due to the settlement of exchangeable senior debentures Cash and Cash Equivalents (millions) | Attributed to: | 9/30/2024 (millions) | 12/31/2024 (millions) | | :------------------------- | :-------- | :--------- | | Formula One Group (millions) | $2,666 | $2,631 | | Liberty Live Group (millions) | $388 | $325 | | Total Consolidated (GAAP) (millions) | $3,054 | $2,956 | Debt (GAAP, millions) | Attributed to: | 9/30/2024 (millions) | 12/31/2024 (millions) | | :--------------------------------- | :-------- | :--------- | | Total Attributed Formula One Group Debt (GAAP) (millions) | $2,928 | $2,992 | | Total Attributed Liberty Live Group Debt (GAAP) (millions) | $1,437 | $1,556 | | Total Liberty Media Corporation Debt (GAAP) (millions) | $4,365 | $4,548 | - Formula One Group's cash decreased by $35 million in Q4 due to cash used in operations at F1 and capital expenditures, while its debt was relatively flat[30] - Liberty Live Group's cash decreased by $63 million in Q4 due to debt reduction and interest payments. Its total debt decreased by $50 million due to the settlement of the 0.5% Live Nation exchangeable senior debentures due 2050[31] - Liberty Media and F1 were in compliance with their debt covenants as of December 31, 2024[30] Consolidated Financial Statements Balance Sheet Information (December 31, 2024) As of December 31, 2024, Liberty Media Corporation reported total consolidated assets of $12,948 million and total liabilities of $5,897 million. Key components include $2,956 million in cash and cash equivalents and $4,522 million in long-term debt Consolidated Balance Sheet Highlights (December 31, 2024, millions) | Metric | Amount (millions) | | :-------------------------- | :--------- | | Total current assets (millions) | $3,347 | | Total assets (millions) | $12,948 | | Total current liabilities (millions) | $1,133 | | Long-term debt (millions) | $4,522 | | Total liabilities (millions) | $5,897 | | Equity / Attributed net assets (millions) | $7,029 | - Formula One Group held $2,631 million in cash and cash equivalents, while Liberty Live Group held $325 million[36] Statement of Operations For the twelve months ended December 31, 2024, Liberty Media Corporation reported consolidated total revenue of $3,653 million and an operating income of $276 million. The company recorded a net loss attributable to Liberty stockholders of $2,063 million, significantly impacted by a $2,412 million net loss from discontinued operations (Liberty SiriusXM Group) Consolidated Statement of Operations Highlights (Twelve months ended December 31, 2024, millions) | Metric | Amount (millions) | | :----------------------------------------- | :--------- | | Total revenue (millions) | $3,653 | | Operating income (loss) (millions) | $276 | | Net earnings (loss) from continuing operations (millions) | $(63) | | Net earnings (loss) from discontinued operations (millions) | $(2,412) | | Net earnings (loss) (millions) | $(2,475) | | Net earnings (loss) attributable to Liberty stockholders (millions) | $(2,063) | Consolidated Statement of Operations Highlights (Twelve months ended December 31, 2023, millions) | Metric | Amount (millions) | | :----------------------------------------- | :--------- | | Total revenue (millions) | $3,572 | | Operating income (loss) (millions) | $255 | | Net earnings (loss) from continuing operations (millions) | $(24) | | Net earnings (loss) from discontinued operations (millions) | $986 | | Net earnings (loss) (millions) | $962 | | Net earnings (loss) attributable to Liberty stockholders (millions) | $761 | - The combination of Liberty SiriusXM Group and SiriusXM on September 9, 2024, resulted in Liberty SiriusXM Group being presented as a discontinued operation, significantly impacting net earnings[38] Statement of Cash Flows Information For the twelve months ended December 31, 2024, Liberty Media Corporation reported net cash provided by operating activities of $553 million, net cash used by investing activities of $187 million, and net cash provided by financing activities of $894 million. The net increase in cash, cash equivalents, and restricted cash was $935 million, bringing the year-end balance to $2,963 million Consolidated Statement of Cash Flows Highlights (Twelve months ended December 31, 2024, millions) | Metric | Amount (millions) | | :----------------------------------------- | :--------- | | Net cash provided (used) by operating activities (millions) | $553 | | Net cash provided (used) by investing activities (millions) | $(187) | | Net cash provided (used) by financing activities (millions) | $894 | | Net cash provided (used) by discontinued operations (millions) | $(315) | | Net increase (decrease) in cash, cash equivalents and restricted cash (millions) | $935 | | Cash, cash equivalents and restricted cash at end of period (millions) | $2,963 | Consolidated Statement of Cash Flows Highlights (Twelve months ended December 31, 2023, millions) | Metric | Amount (millions) | | :----------------------------------------- | :--------- | | Net cash provided (used) by operating activities (millions) | $634 | | Net cash provided (used) by investing activities (millions) | $(544) | | Net cash provided (used) by financing activities (millions) | $(285) | | Net cash provided (used) by discontinued operations (millions) | $(54) | | Net increase (decrease) in cash, cash equivalents and restricted cash (millions) | $(248) | | Cash, cash equivalents and restricted cash at end of period (millions) | $2,028 | - Formula One Group's operating activities provided $567 million in cash, while investing activities used $292 million, and financing activities provided $965 million in 2024[43] Non-GAAP Financial Measures Liberty Media provides Adjusted OIBDA as a non-GAAP financial measure to offer additional insight into the operational strength and performance of its businesses. Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, litigation settlements, restructuring, acquisition and other related costs, and impairment charges - Adjusted OIBDA is a non-GAAP measure used to indicate operational strength and performance, excluding items not directly reflective of ongoing business trends[47][48] Adjusted OIBDA Reconciliation (millions) | Metric | 4Q23 (millions) | 4Q24 (millions) | 2023 (millions) | 2024 (millions) | | :------------------------ | :--- | :--- | :--- | :--- | | Formula One Group | | | | | | Operating income (loss) (millions) | $122 | $23 | $297 | $287 | | Depreciation and amortization (millions) | $115 | $89 | $369 | $352 | | Stock compensation expense (millions) | $6 | $6 | $20 | $30 | | Impairment and acquisition costs (millions) | $— | $82 | $— | $105 | | Adjusted OIBDA (millions) | $243 | $200 | $686 | $774 | | Liberty Live Group | | | | | | Operating income (loss) (millions) | $(6) | $(4) | $(11)| $(11)| | Stock compensation expense (millions) | $1 | $1 | $2 | $4 | | Adjusted OIBDA (millions) | $(5) | $(3) | $(9) | $(7) | - Formula One Group incurred $32 million in corporate acquisition costs and a $73 million non-cash impairment charge related to Quint goodwill during 2024[50] Other Information Important Notice and Conference Call Liberty Media Corporation will host an earnings conference call on February 27, 2025, at 10:00 a.m. (E.T.) to discuss the financial results. Details for accessing the call via phone or webcast are provided - Liberty Media's earnings conference call is scheduled for February 27, 2025, at 10:00 a.m. (E.T.)[32] Forward-Looking Statements This press release contains forward-looking statements regarding business strategies, market potential, future financial performance, and the MotoGP acquisition. These statements are subject to various risks and uncertainties that could cause actual results to differ materially, and Liberty Media disclaims any obligation to update them - The press release includes forward-looking statements concerning business strategies, market potential, future financial performance, and the planned MotoGP acquisition[33] - These statements are subject to risks and uncertainties, including regulatory matters, litigation outcomes, acquisition benefits, industry changes, and access to capital[33] - Liberty Media expressly disclaims any obligation to update or revise any forward-looking statements[33]