Financial Position - As of June 30, 2025, the Formula One Group had cash and cash equivalents of approximately $3,140 million, including $1,845 million of subsidiary cash[149] - The Liberty Live Group had cash and cash equivalents of approximately $308 million as of June 30, 2025[150] - Cash and cash equivalents for Formula One Group totaled $3,140 million as of June 30, 2025, with Formula 1 holding $1,775 million[172] - Liberty's cash provided by operating activities for the six months ended June 30, 2025, was $612 million, an increase of $218 million (55.3%) from $394 million in 2024[174] - As of June 30, 2025, Formula One Group had $172 million in variable rate debt with a weighted average interest rate of 6.2% and $2,725 million in fixed rate debt with a weighted average interest rate of 4.4%[199] Acquisitions and Investments - On July 3, 2025, the company acquired approximately 84% of the equity interests in Dorna Sports, S.L. (MotoGP) for a preliminary purchase price of approximately $3.7 billion, funded with cash on hand and $1.0 billion in borrowings[152] - The company is in the process of determining the preliminary fair value of the net assets acquired from MotoGP, which will primarily consist of goodwill and customer relationships[152] - Liberty's primary use of cash during the six months ended June 30, 2025, included a $131 million extension payment related to the MotoGP acquisition[176] Revenue and Earnings - Consolidated revenue increased by $353 million (35.7%) and $213 million (13.5%) for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, driven by growth in Formula 1 and QuintEvents revenue[156] - Consolidated operating income rose by $216 million (366.1%) and $52 million (34.0%) for the three and six months ended June 30, 2025, respectively, primarily due to improvements in Formula 1 operating results[157] - Adjusted OIBDA increased by $200 million (121.9%) and $68 million (15.6%) for the three and six months ended June 30, 2025, respectively, mainly attributed to increases in Formula 1's Adjusted OIBDA[160] - Net earnings from continuing operations were $204 million and $209 million for the three and six months ended June 30, 2025, respectively, compared to $158 million and $162 million for the same periods in 2024[169] - Formula 1's primary revenue increased by $293 million (39.7%) to $1,032 million for the three months ended June 30, 2025, compared to $739 million in the same period of 2024[181] - Total Formula 1 revenue for the six months ended June 30, 2025, was $1,629 million, up $205 million (14.4%) from $1,424 million in the prior year[181] - Adjusted OIBDA for Formula 1 increased to $446 million for the six months ended June 30, 2025, compared to $368 million in the same period of 2024, reflecting a growth of $78 million (21.2%)[181] Expenses and Costs - Selling, general and administrative expenses rose by $29 million (30.2%) to $124 million for the six months ended June 30, 2025, compared to $95 million in the prior year[194] - Cost of Formula 1 revenue increased by $142 million (22.0%) for the three months ended June 30, 2025, compared to the same period in 2024[188] - The company recorded $10 million and $20 million in stock-based compensation expenses for the six months ended June 30, 2025, and 2024, respectively, with total unrecognized compensation cost related to unvested equity awards at approximately $40 million[158] - Acquisition costs amounted to $3 million and $11 million for the three months ended June 30, 2025, and 2024, respectively, and $14 million and $20 million for the six months ended June 30, 2025, and 2024, respectively[159] Corporate Structure and Changes - The Liberty Sirius XM Holdings Split-Off was completed on September 9, 2024, exchanging each outstanding share of Liberty SiriusXM common stock for 0.8375 of a share of Liberty Sirius XM Holdings common stock[146] - The company is pursuing a plan to split off the Liberty Live Group, expected to be completed in the second half of 2025, and intended to be tax-free to stockholders[153] - The reclassification of common stock into three new tracking stocks occurred on August 3, 2023, affecting the attribution of businesses, assets, and liabilities among the newly created groups[145] Risks and Compliance - The company faces various risks, including the impact of weak economic conditions on consumer demand and the operational risks of subsidiaries outside the U.S.[140] - Liberty is in compliance with its debt covenants as of June 30, 2025[173] - Interest expense decreased by $3 million (5.0%) and $10 million (8.2%) for the three and six months ended June 30, 2025, respectively, due to a reduction in average debt and interest rates[163]
Liberty(LLYVK) - 2025 Q2 - Quarterly Report