Liberty(FWONA) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Results Highlights and Management Commentary Liberty Media reported a strong Q1 2025, driven by Formula 1's new commercial partnerships and Live Nation's sustained demand, highlighted by F1 Grand Prix renewals and the 2026 Concorde Commercial Agreement - Management highlights a strong start to 2025, citing exciting racing and new commercial partnerships at Formula 1, and sustained demand for live music pointing to a record year for Live Nation[1] - Formula 1 renewed its agreement for the Mexico Grand Prix through 2028 and the Miami Grand Prix through 2041[3] - New sponsorship deals were secured with Barilla Pasta and PWC as Official Partners[3] - An agreement was reached with all ten F1 teams on the 2026 Concorde Commercial Agreement[3][8] - The company is working with the European Commission on the regulatory process for the MotoGP acquisition[3] Segment Performance Formula One Group Formula One Group's Q1 2025 total revenue decreased to $447 million from $587 million in Q1 2024, resulting in a $67 million operating loss, primarily due to fewer races held in the quarter Formula One Group Financial Summary (Q1 2025 vs Q1 2024) | Metric | 1Q24 (in millions) | 1Q25 (in millions) | | :--- | :--- | :--- | | Total Revenue | $587 | $447 | | Operating Income (Loss) | $95 | $(67) | | Adjusted OIBDA | $202 | $73 | F1 Operating Results F1's revenue declined 27% to $403 million and Adjusted OIBDA dropped 59% to $85 million due to fewer races in Q1 2025, impacting promotion, media, and sponsorship revenue, partially offset by contractual increases and new sponsors F1 Operating Results (Q1 2025 vs Q1 2024) | Metric | 1Q24 (in millions) | 1Q25 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Number of races in period | 3 | 2 | - | | Total Formula 1 revenue | $553 | $403 | (27)% | | Team payments | $(163) | $(114) | 30% | | Adjusted OIBDA | $208 | $85 | (59)% | | Operating income (loss) | $136 | $(28) | NM | - The decrease in Primary F1 revenue was driven by having one less race in the quarter, which impacted race promotion, media rights, and sponsorship fees due to a lower proportion of season-based revenue being recognized[10][11] - The decline in media rights revenue was partly offset by contractual fee increases and growth in F1 TV subscriptions. The decline in sponsorship revenue was largely offset by new sponsors and growth from existing contracts[11] - Selling, general and administrative expenses increased primarily due to higher marketing costs for the 75th season launch event and increased personnel costs[12] Corporate and Other Operating Results Corporate and Other revenue increased in Q1 2025, primarily from Quint's NBA and F1 Experiences, with the Las Vegas Grand Prix Plaza generating $6 million in rental income - Corporate and Other revenue increased due to Quint's results, which were driven by NBA Experiences and F1 Experiences across the two races held in the quarter[13] - The Las Vegas Grand Prix Plaza generated $6 million in rental income in Q1 2025, compared to $7 million in the prior year period[13] Liberty Live Group The Liberty Live Group, primarily Live Nation, had a fair value of approximately $9.1 billion as of March 31, 2025, and was allocated $4 million in corporate SG&A expenses - The fair value of the investment in Live Nation was $9.1 billion as of March 31, 2025[3] - The businesses and assets attributed to Liberty Live Group consist of Liberty Media's interest in Live Nation and other minority investments[15] - $4 million of corporate level selling, general and administrative expense was allocated to Liberty Live Group in Q1 2025[14] Capital Management Share Repurchases Liberty Media made no common stock repurchases from February 1 to April 30, 2025, retaining $1.1 billion in remaining repurchase authorization as of May 1, 2025 - No repurchases of Liberty Media's common stock were made from February 1 through April 30, 2025[16] - As of May 1, 2025, the total remaining repurchase authorization is $1.1 billion[16] Supplemental Financial Information Fair Value of Corporate Public Holdings Liberty Media's public holdings, primarily its Live Nation investment within the Liberty Live Group, increased slightly from $9.02 billion at year-end 2024 to $9.09 billion by Q1 2025 Fair Value of Public Holdings (in millions) | Group | 12/31/2024 | 3/31/2025 | | :--- | :--- | :--- | | Liberty Live Group | | | | Live Nation Investment | $9,019 | $9,094 | | Total Liberty Media | $9,019 | $9,094 | Cash and Debt As of March 31, 2025, Formula One Group's cash increased by $202 million to $2.83 billion with stable debt at $2.9 billion, while Liberty Live Group's cash decreased by $11 million to $314 million with unchanged debt at $1.15 billion, improving F1's net leverage to 1.2x Cash and Debt Summary (as of March 31, 2025) | (amounts in millions) | Formula One Group | Liberty Live Group | | :--- | :--- | :--- | | Cash and Cash Equivalents | $2,833 | $314 | | Total Attributed Debt | $2,902 | $1,150 | | F1 Net Leverage | 1.2x | N/A | - Formula One Group's cash increased by $202 million during Q1, driven by cash from operations at F1, partially offset by a $131 million payment for the MotoGP acquisition[25] - Liberty Live Group's cash decreased by $11 million in Q1, mainly due to interest payments and corporate overhead[26] Consolidated Financial Statements (Unaudited) Balance Sheet As of March 31, 2025, Liberty Media reported total consolidated assets of $13.29 billion and liabilities of $6.23 billion, with the Formula One Group comprising the majority of assets at $12.09 billion Consolidated Balance Sheet Highlights (March 31, 2025) | Metric (in millions) | Amount | | :--- | :--- | | Total current assets | $3,667 | | Total assets | $13,285 | | Total current liabilities | $1,446 | | Total liabilities | $6,226 | | Total equity | $7,059 | Statement of Operations For Q1 2025, Liberty Media reported total revenue of $447 million, a consolidated operating loss of $71 million, and net earnings of $5 million, compared to $587 million revenue, $93 million operating income, and $203 million net earnings in Q1 2024 Consolidated Statement of Operations (Q1 2025 vs Q1 2024) | Metric (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $447 | $587 | | Operating income (loss) | $(71) | $93 | | Net earnings (loss) attributable to Liberty stockholders | $5 | $203 | Statement of Cash Flows In Q1 2025, Liberty Media generated $381 million in net cash from operating activities, used $181 million in investing activities (including a $131 million acquisition payment), resulting in a $191 million net cash increase and $3.15 billion total cash at period end Consolidated Statement of Cash Flows (Q1 2025) | Metric (in millions) | Amount | | :--- | :--- | | Net cash provided by operating activities | $381 | | Net cash used by investing activities | $(181) | | Net cash used by financing activities | $(13) | | Net increase in cash | $191 | | Cash at end of period | $3,154 | Non-GAAP Financial Measures Reconciliation of Adjusted OIBDA Liberty Media uses Adjusted OIBDA as a key operational indicator, with Formula One Group reporting $73 million and Liberty Live Group a $4 million loss for Q1 2025 Adjusted OIBDA Reconciliation (Q1 2025) | (amounts in millions) | Formula One Group | Liberty Live Group | | :--- | :--- | :--- | | Operating income (loss) | $(67) | $(4) | | Depreciation and amortization | 77 | — | | Stock compensation expense | 2 | — | | Acquisition costs | 11 | — | | Concorde incentive payments | 50 | — | | Adjusted OIBDA | $73 | $(4) | - Adjusted OIBDA is defined as operating income plus depreciation & amortization, stock-based compensation, litigation settlements, Concorde incentive payments, and restructuring/acquisition charges[42]