Liberty(LSXMB) - 2025 Q1 - Quarterly Report

Revenue 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] - The company reported an operating loss of $28 million for Formula 1 for the three months ended March 31, 2025, compared to an operating income of $136 million in the prior year[148] - Adjusted OIBDA for the Formula One Group was $85 million for the three months ended March 31, 2025, down from $208 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 - The Liberty Live Group had cash and cash equivalents of approximately $314 million as of March 31, 2025[141] - The Formula One Group had cash and cash equivalents of approximately $2,833 million as of March 31, 2025, which included $1,617 million of subsidiary cash[140] - Cash provided by operating activities for the Formula One Group was $391 million in Q1 2025, up from $140 million in Q1 2024[165] - Cash and cash equivalents for the Formula One Group totaled $2.833 billion as of March 31, 2025[163] - Liberty's primary use of cash in Q1 2025 included a $131 million extension payment related to the Dorna acquisition[165] Expenses and Costs - Corporate and other expenses for the Formula One Group were $39 million for the three months ended March 31, 2025, compared to $41 million in the same period of 2024[148] - Stock-based compensation expense was $2 million for Q1 2025, down from $13 million in Q1 2024[150] - Acquisition costs increased to $11 million in Q1 2025 from $9 million in Q1 2024[151] - Selling, general and administrative expenses increased by $17 million during the three months ended March 31, 2025, primarily due to higher marketing costs and personnel costs[179] - 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 excluding Concorde incentive 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, partially offset by lower hospitality costs[178] - 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 certain intangible assets[181] Debt and Compliance - 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 in compliance with its debt covenants as of March 31, 2025[164] Acquisition and Regulatory Matters - 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 Liberty Live Split-Off is intended to be tax-free to stockholders and is subject to various conditions including shareholder approval[145] Market Risk - 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]