Liberty(US:LSXMA)2025-05-07 20:00Revenue Performance - Consolidated revenue decreased by $140 million to $447 million for the three months ended March 31, 2025, compared to $587 million in the same period of 2024, primarily due to a decrease in Formula 1 revenue[148]. - Formula 1 revenue was $403 million for the three months ended March 31, 2025, down from $553 million in the prior year[148]. - Formula 1's total revenue decreased to $403 million in Q1 2025 from $553 million in Q1 2024, with primary revenue down by $144 million[172][173]. - Other Formula 1 revenue decreased by $6 million during the three months ended March 31, 2025, compared to the prior year, primarily due to a decrease in hospitality and experiences revenue[175]. Operating Performance - Consolidated operating loss increased by $164 million to $71 million for the three months ended March 31, 2025, compared to an operating income of $93 million in the same period of 2024[149]. - Formula 1's operating loss was $28 million for the three months ended March 31, 2025, compared to an operating income of $136 million in the same period of 2024[148]. - Adjusted OIBDA for the Formula One Group was $73 million for the three months ended March 31, 2025, down from $202 million in the prior year[148]. - Adjusted OIBDA decreased by $132 million to $69 million in Q1 2025 compared to $201 million in Q1 2024, primarily due to a decrease in Formula 1 Adjusted OIBDA[152]. Cash and Liquidity - As of March 31, 2025, the Formula One Group had cash and cash equivalents of approximately $2,833 million, including $1,617 million of subsidiary cash[140]. - Liberty Live Group had cash and cash equivalents of approximately $314 million as of March 31, 2025[141]. - Cash provided by operating activities for Formula One Group was $391 million in Q1 2025, up from $140 million in Q1 2024[165]. - Liberty's primary use of cash in Q1 2025 included a $131 million extension payment related to the Dorna acquisition[165]. Expenses and Costs - Cost of Formula 1 revenue decreased by $44 million during the three months ended March 31, 2025, compared to the prior year, with team payments decreasing from $163 million to $114 million[176]. - Other costs of Formula 1 revenue increased by $5 million during the three months ended March 31, 2025, primarily due to higher freight costs and commissions[178]. - Selling, general and administrative expenses increased by $17 million during the three months ended March 31, 2025, primarily due to higher marketing and personnel costs[179]. - Depreciation and amortization decreased by $9 million during the three months ended March 31, 2025, primarily due to a decrease in amortization expense related to intangible assets[181]. Debt and Market Risk - As of March 31, 2025, the company had $176 million in variable rate debt with a weighted average interest rate of 6.2% and $2,726 million in fixed rate debt with a weighted average interest rate of 4.4%[183]. - The company is exposed to market risk from significant holdings in publicly traded securities, with a potential $909 million decrease in value if the market price of Live Nation stock were to drop by 10%[184]. Corporate Actions - The company agreed to acquire approximately 86% of Dorna Sports, S.L. for a purchase price of approximately €3.0 billion, with regulatory review extending beyond December 31, 2024[144]. - The proposed Liberty Live Split-Off is intended to be tax-free to stockholders and is subject to various conditions including shareholder approval[145]. Tax and Earnings - The company recognized a tax benefit of $29 million in Q1 2025, compared to a tax expense of $3 million in Q1 2024[158]. - Net earnings from continuing operations were $5 million in Q1 2025, slightly up from $4 million in Q1 2024[159]. Stock-Based Compensation - Stock-based compensation expense for Q1 2025 was $2 million, down from $13 million in Q1 2024, with total unrecognized compensation cost of approximately $13 million as of March 31, 2025[150]. - Acquisition costs increased to $11 million in Q1 2025 from $9 million in Q1 2024[151].