Atlanta Braves (BATRK) - 2025 Q2 - Quarterly Results

Atlanta Braves Holdings Second Quarter 2025 Financial Results Atlanta Braves Holdings reported strong financial growth for Q2 2025, with total revenue increasing by 10% to $312 million and Adjusted OIBDA surging by 44% to $66 million, driven by significant growth in both baseball and mixed-use development segments Discussion of Results Atlanta Braves Holdings reported strong financial growth for Q2 2025, with total revenue increasing by 10% to $312 million and Adjusted OIBDA surging by 44% to $66 million, driven by significant growth in both baseball and mixed-use development segments Revenue Performance Total revenue for Q2 2025 increased by 10% year-over-year, reaching $312.44 million, primarily fueled by a 49% increase in mixed-use development revenue and an 8% rise in baseball revenue, with broadcasting revenue being a key driver within the baseball segment | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :---------------------------- | :--------------------- | :--------------------- | :------- | | Total revenue | $312,440 | $282,876 | 10 % | | Baseball revenue | $287,319 | $266,001 | 8 % | | Mixed-use development revenue | $25,121 | $16,875 | 49 % | - Baseball revenue growth was primarily driven by a 14% increase in broadcasting revenue due to additional streaming rights and contractual rate increases, and a 5% increase in baseball event revenue from season tickets and sponsorship contracts, with other revenue also seeing an 80% increase due to a concert and special events[5][7] - Mixed-use development revenue increased significantly by 49% due to higher rental income from new lease commencements and an April 2025 real estate acquisition, as well as increased sponsorship revenue[5][8] Operating Income and Adjusted OIBDA Performance Operating income for Q2 2025 increased by 68% to $41.79 million, and Adjusted OIBDA grew by 44% to $65.70 million, as revenue growth outpaced increases in operating and selling, general and administrative expenses | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | | :--------------- | :--------------------- | :--------------------- | :------- | | Adjusted OIBDA | $65,704 | $45,750 | 44 % | | Operating income | $41,787 | $24,936 | 68 % | - Baseball Adjusted OIBDA grew 39% to $52 million, while Mixed-Use Development Adjusted OIBDA grew 53% to $18 million[3] - Operating costs increased due to MLB's revenue sharing plan, Truist Park event expenses, minor league expenses, and operating costs from the April 2025 real estate acquisition, with SG&A expenses rising due to increased property taxes, insurance, professional fees, and personnel costs[9] About Atlanta Braves Holdings, Inc. Atlanta Braves Holdings, Inc. primarily comprises the Major League Baseball franchise, the Atlanta Braves, and a real estate portfolio including The Battery Atlanta, a mixed-use development adjacent to Truist Park - The company's core assets are the Atlanta Braves MLB franchise and The Battery Atlanta mixed-use development[11] Forward-Looking Statements This section outlines forward-looking statements regarding future business, financial performance, and strategies, emphasizing that such statements involve risks and uncertainties and actual results may differ materially, advising against undue reliance and referring to SEC filings for detailed risk factors - Forward-looking statements are identified by words like "believe," "estimate," "expect," and "anticipate," covering business strategies, future financial performance, and trends[13] - Such statements are subject to risks and uncertainties, including historical financial information not being representative of future results, ability to recognize benefits from the split-off from Liberty Media, costs as a standalone company, financing, indebtedness, impact of inflation, litigation, operational risks outside the US, tax carryforwards, regulatory compliance, changes in strategic relationships, on-field success, player talent, organized labor, broadcasting revenue, data security, key personnel retention, real estate business risks, stock price fluctuations, and geopolitical events[13][14] Non-GAAP Financial Measures and Supplemental Disclosures This section defines Adjusted OIBDA as a non-GAAP financial measure used by ABH to assess operational strength and performance, providing a reconciliation to GAAP operating income and clarifying that it supplements, rather than replaces, GAAP measures - Adjusted OIBDA is defined as operating income (loss) plus stock-based compensation, depreciation and amortization, separately reported litigation settlements, restructuring, acquisition, and impairment charges[16] - ABH uses Adjusted OIBDA to indicate operational strength, performance, and for analytical comparisons, believing it identifies items not directly reflective of ongoing business trends[17] - Operating income is considered the most directly comparable GAAP measure, and Adjusted OIBDA is intended to supplement GAAP measures, not replace them[17] Adjusted OIBDA Reconciliation The reconciliation shows how Adjusted OIBDA is derived from operating income by adding back non-cash and non-recurring items, highlighting the operational performance of the Baseball and Mixed-Use Development segments | (amounts in thousands) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $41,787 | $24,936 | $(2,665) | $(27,419) | | Stock-based compensation | 2,646 | 3,705 | 5,292 | 7,424 | | Depreciation and amortization | 21,271 | 17,109 | 34,528 | 31,991 | | Adjusted OIBDA | $65,704 | $45,750 | $37,155 | $11,996 | | Baseball Adjusted OIBDA | $52,047 | $37,391 | $12,447 | $(4,325) | | Mixed-Use Development Adjusted OIBDA | $17,566 | $11,509 | $30,453 | $21,442 | | Corporate and other | $(3,909) | $(3,150) | $(5,745) | $(5,121) | Cash and Debt ABH's cash decreased by $148 million in Q2 2025, primarily due to a real estate acquisition, capital expenditures, and seasonal working capital changes, while total debt increased by $3 million, mainly from borrowings for mixed-use development capital projects - ABH cash decreased by $148 million during Q2 2025, driven by the April 2025 acquisition of real estate assets, other capital expenditures, seasonal working capital changes, and increases in restricted cash[21] - Total ABH debt increased by $3 million in Q2 2025, primarily due to borrowings on Mixed-Use Development debt to support capital projects[21] | (amounts in thousands) | June 30, 2025 | March 31, 2025 | | :--------------------- | :------------ | :------------- | | ABH Cash (GAAP) | $96,196 | $244,679 | | Total ABH Debt (GAAP) | $703,101 | $699,466 | Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for Atlanta Braves Holdings, Inc., including the balance sheet, statement of operations, and statement of cash flows, providing a comprehensive view of the company's financial health and performance Condensed Consolidated Balance Sheet As of June 30, 2025, total assets increased to $1.68 billion from $1.52 billion at December 31, 2024, primarily driven by increases in property and equipment and other assets, while total liabilities also increased to $1.15 billion from $987.62 million, mainly due to higher current liabilities and long-term debt | Metric (in thousands) | June 30, 2025 | Dec 31, 2024 | | :------------------------- | :------------ | :----------- | | Total assets | $1,683,861 | $1,523,846 | | Total liabilities | $1,148,988 | $987,622 | | Total stockholders' equity | $522,828 | $524,179 | - Current assets increased significantly from $179.15 million to $236.53 million, largely due to an increase in restricted cash and accounts receivable[24] - Current liabilities rose from $286.66 million to $371.16 million, mainly due to increases in accounts payable and accrued liabilities, and deferred revenue, with long-term debt also increasing[25] Condensed Consolidated Statement of Operations For the three months ended June 30, 2025, ABH reported net earnings of $29.49 million, consistent with the prior year, and basic EPS of $0.47, while for the six months, the company reported a net loss of $11.90 million, a significant improvement from the $22.16 million loss in the prior year period | Metric (in thousands, except per share) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total revenue | $312,440 | $282,876 | $359,651 | $319,956 | | Operating income (loss) | $41,787 | $24,936 | $(2,665) | $(27,419) | | Net earnings (loss) | $29,494 | $29,109 | $(11,897) | $(22,163) | | Basic EPS | $0.47 | $0.47 | $(0.19) | $(0.36) | - Interest expense increased for both the three and six-month periods, while share of earnings from affiliates decreased[26] Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities increased to $87.64 million from $56.75 million in the prior year, net cash used in investing activities significantly increased to $130.11 million, primarily due to a $93.71 million acquisition of real estate assets, and net cash provided by financing activities also increased to $83.49 million | Metric (in thousands) | 2025 | 2024 | | :-------------------------------------------------------- | :----------- | :----------- | | Net cash provided by (used in) operating activities | $87,640 | $56,752 | | Net cash provided by (used in) investing activities | $(130,105) | $(58,105) | | Net cash provided by (used in) financing activities | $83,487 | $24,992 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $41,022 | $23,639 | - The significant increase in cash used in investing activities was primarily due to the $93.71 million acquisition of real estate assets in 2025, compared to no such acquisition in 2024[27] - Borrowings of debt increased substantially to $88.51 million in 2025 from $33.41 million in 2024, contributing to the higher cash from financing activities[27] Contact Information This section provides contact details for investor relations inquiries for Atlanta Braves Holdings, Inc - Investors can contact Cameron Rudd for investor relations at (404) 614-2300 or investorrelations@braves.com[28]