Liberty(LLYVK) - 2025 Q1 - Quarterly Results

Overview and Key Highlights Liberty Media reported a strong Q1 2025, driven by Formula 1's commercial momentum and Live Nation's record trajectory, alongside key strategic developments - Management expressed confidence in a strong start to 2025, citing financial momentum at Formula 1 from new commercial partnerships and sustained demand for live music at Live Nation, which is expected to have another record year[1] - Key operational highlights for Formula One Group include renewed Grand Prix agreements for Mexico and Miami, new sponsorship deals, signing the 2026 Concorde Commercial Agreement, opening the Grand Prix Plaza in Las Vegas, and ongoing work on the MotoGP acquisition[3] - The fair value of Liberty Live Group's investment in Live Nation was $9.1 billion as of March 31, 2025[3] Formula One Group Financial Results Formula One Group's Q1 2025 financial performance declined due to one fewer race, resulting in lower revenue, an operating loss, and reduced Adjusted OIBDA 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 (Loss) | $202 | $73 | F1 Operating Results F1's Q1 2025 revenue decreased 27% to $403 million and Adjusted OIBDA fell 59% to $85 million, primarily due to one fewer race - The primary reason for the year-over-year decline in revenue and costs was the timing of races, with two races held in Q1 2025 versus three in Q1 2024[10] Formula 1 Operating Results (Q1 2025 vs. Q1 2024) | Metric | 1Q24 (in millions) | 1Q25 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Total F1 Revenue | $553 | $403 | (27)% | | Adjusted OIBDA | $208 | $85 | (59)% | | Operating Income (Loss) | $136 | $(28) | NM | - Primary F1 revenue decreased across race promotion, media rights, and sponsorship due to the calendar variance, partially offset by contractual fee increases, F1 TV subscription growth, and new sponsor revenue[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, driven by Quint's NBA and F1 Experiences, and $6 million in Las Vegas Grand Prix Plaza rental income - Revenue growth was driven by Quint's results, particularly from 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 during the first quarter, compared to $7 million in the prior year period[13] Liberty Live Group Liberty Live Group, primarily holding an interest in Live Nation, was allocated $4 million in corporate-level SG&A expenses during Q1 2025 - The businesses and assets attributed to Liberty Live Group consist of Liberty Media's interest in Live Nation and other minority investments[15] - In Q1 2025, $4 million of corporate level selling, general and administrative expense was allocated to the Liberty Live Group[14] Corporate Financial Position As of Q1 2025, Liberty Media maintained a strong financial position with $3.1 billion cash, $1.1 billion share repurchase authorization, and $4.6 billion total debt Share Repurchases Liberty Media did not repurchase common stock in Q1 2025, retaining $1.1 billion in remaining share repurchase authorization as of May 1, 2025 - No repurchases of Liberty Media's common stock occurred between February 1 and April 30, 2025[16] - The total remaining repurchase authorization for Liberty Media as of May 1, 2025 is $1.1 billion[16] Fair Value of Corporate Public Holdings As of March 31, 2025, Liberty Media's public holdings, primarily its Live Nation investment, totaled $9.094 billion in fair value Fair Value of Public Holdings (as of March 31, 2025) | Group | Holding | Value (in millions) | | :--- | :--- | :--- | | Liberty Live Group | Live Nation Investment | $9,094 | | Total Liberty Media | | $9,094 | Cash and Debt As of Q1 2025, Liberty Media's consolidated cash was $3.15 billion and total GAAP debt $4.56 billion, with Formula One Group's cash increasing and Liberty Live Group's cash decreasing Cash and Debt Summary (as of March 31, 2025) | Category | Formula One Group | Liberty Live Group | Total Consolidated (GAAP) | | :--- | :--- | :--- | :--- | | Cash & Equivalents | $2,833 million | $314 million | $3,147 million | | Total Debt (GAAP) | $2,982 million | $1,582 million | $4,564 million | - 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 Q1 2025 consolidated financial statements reflect fewer F1 races, reporting $447 million revenue, $5 million net income, $13.3 billion total assets, and $381 million positive operating cash flow Balance Sheet As of March 31, 2025, Liberty Media's balance sheet reported $13.285 billion in total assets, $6.226 billion in total liabilities, and $4.534 billion in long-term debt Consolidated Balance Sheet Summary (March 31, 2025) | Category | Amount (in millions) | | :--- | :--- | | Total Current Assets | $3,667 | | Cash and cash equivalents | $3,147 | | Total Assets | $13,285 | | Total Current Liabilities | $1,446 | | Long-term debt | $4,534 | | Total Liabilities | $6,226 | | Total Equity | $7,059 | Statement of Operations In Q1 2025, Liberty Media's total revenue was $447 million, resulting in a consolidated operating loss of $71 million and net earnings of $5 million attributable to stockholders 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 operating cash flow, used $181 million in investing activities (including a $131 million acquisition payment), resulting in a net cash increase of $191 million Consolidated Statement of Cash Flows Summary (Q1 2025) | Category (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 used in investing activities included a $131 million payment for acquisitions, net of cash acquired[38] NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL DISCLOSURES This section reconciles Adjusted OIBDA to operating income, showing Formula One Group's $67 million operating loss adjusted to $73 million Adjusted OIBDA, and Liberty Live Group's $4 million Adjusted OIBDA loss - Liberty Media defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[42] Reconciliation of Operating Income (Loss) to Adjusted OIBDA (Q1 2025) | Group (in millions) | Operating Income (Loss) | Adjustments | Adjusted OIBDA | | :--- | :--- | :--- | :--- | | Formula One Group | $(67) | $140 | $73 | | Liberty Live Group | $(4) | $0 | $(4) |