Liberty(LSXMK) - 2025 Q2 - Quarterly Report

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] - As of June 30, 2025, cash and cash equivalents totaled $3,140 million for the Formula One Group, with $1,775 million held by Formula 1[172] - Liberty's cash usage included a $131 million extension payment related to the MotoGP acquisition during the six months ended June 30, 2025[174] 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 include goodwill and customer relationships[152] - The company holds an ownership interest in Live Nation, which is accounted for as an equity method investment as of June 30, 2025[141] 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] - 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 to $1,032 million for the three months ended June 30, 2025, compared to the same period in 2024, driven by event-specific revenue and contractual fee increases[181] - Total Formula 1 revenue for the six months ended June 30, 2025, was $1,629 million, up from $1,424 million in the prior year, reflecting a $205 million increase[181] Operating Performance - Consolidated operating income rose by $216 million (365.5%) and $52 million (26.7%) 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 (18.6%) for the three and six months ended June 30, 2025, respectively, mainly attributed to increases in Formula 1's Adjusted OIBDA[160] - 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[181] - Operating income for Formula 1 was $265 million for the six months ended June 30, 2025, compared to $220 million in the prior year, marking a $45 million increase[181] Expenses and Costs - The company recorded $10 million in stock-based compensation expense for the six months ended June 30, 2025, down from $20 million in 2024[158] - Acquisition costs amounted to $3 million and $14 million for the three and six months ended June 30, 2025, respectively, compared to $11 million and $20 million in 2024[159] - 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] - The company had a tax expense of $24 million for the three months ended June 30, 2025, compared to $35 million in 2024, reflecting lower taxable unrealized gains[168] - Selling, general and administrative expenses rose by $29 million to $154 million for the six months ended June 30, 2025, compared to the same period in 2024, due to higher personnel and marketing costs[194] Corporate Actions - 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 company reclassified its outstanding shares into three new tracking stocks on August 3, 2023, including Liberty Formula One common stock[145] Cash Flow - Cash provided by operating activities for Formula One Group was $628 million for the six months ended June 30, 2025, compared to $401 million in 2024[174] - Formula 1's capital expenditures were $55 million during the six months ended June 30, 2025, funded by cash from operations[175] Revenue Breakdown - Other Formula 1 revenue increased by $62 million to $194 million for the three months ended June 30, 2025, compared to the same period in 2024, driven by higher hospitality revenue[185] - Cost of Formula 1 revenue increased by $142 million during the three months ended June 30, 2025, compared to the prior year, totaling $787 million[188]