Liberty(FWONA) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights This section provides an overview of Liberty Media's strategic progress, including the MotoGP acquisition, Liberty Live split-off, and strong financial performance of Formula 1, alongside key achievements CEO Statement & Strategic Priorities Liberty Media's President & CEO, Derek Chang, highlighted significant progress on strategic priorities, including the acquisition of MotoGP, advancement of the Liberty Live split-off, and continued strong financial and operating results for Formula 1 - Liberty Media made excellent progress on stated priorities: completing the MotoGP acquisition, advancing the split-off of Liberty Live, and achieving excellent financial and operating results at Formula 1[1] - Formula 1's global strength drives commercial momentum and financial success, evidenced by new partners and record fan engagement[1] - The company is thrilled to begin its partnership with the MotoGP management team, working to support strategic direction and accelerate growth[1] Key Achievements Key achievements include the completion of the MotoGP acquisition, significant renewals and new partnerships for Formula 1, the successful global release of the F1 movie, and progress towards the Liberty Live Group split-off - Formula One Group completed the acquisition of MotoGP on July 3rd[2] - Formula One Group renewed agreements with the Canadian Grand Prix (through 2035) and Austrian Grand Prix (through 2041), secured PepsiCo as a new Official Partner (through 2030), and extended its Global Partnership with MSC Cruises (through 2030)[2] - The F1 The Movie opened globally on June 27th and became Apple's highest-grossing film ever[2] - Liberty Live Group's fair value of Live Nation investment was $10.5 billion as of June 30th, and the split-off is expected to complete in Q4 2025[2] Corporate Updates This section details the completion of Liberty Media's acquisition of Dorna Sports, S.L. (MotoGP), outlining ownership structure and consolidation timing MotoGP Acquisition Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025, gaining approximately 84% ownership, with financial results to be consolidated going forward. The initial accounting for the acquisition is not reflected in the current financial results due to timing - Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025[4] - Liberty Media owns approximately 84% of MotoGP, with MotoGP management retaining 16%[4] - MotoGP's financial results will be consolidated from the acquisition date, but initial accounting is not reflected in the reported Q2 2025 results[4] Financial Results - Formula One Group This section presents the consolidated financial performance of the Formula One Group, including detailed operating results for F1 and the Corporate and Other segments Formula One Group Consolidated Financials The Formula One Group reported significant growth in Q2 2025, with total revenue increasing by 35.7% and operating income by 374.6% compared to Q2 2024. Adjusted OIBDA also saw substantial growth, up 123.6% for the quarter Formula One Group Financial Results (Q2 and H1 2025 vs. 2024) (amounts in millions) | Formula One Group | Three months ended June 30, 2024 (millions) | Three months ended June 30, 2025 (millions) | Six months ended June 30, 2024 (millions) | Six months ended June 30, 2025 (millions) | | :------------------ | :------------------------------------------ | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Revenue | | | | | | Formula 1 | $871 | $1,226 | $1,424 | $1,629 | | Corporate and other | $141 | $145 | $185 | $198 | | Intergroup elimination | $(24) | $(30) | $(34) | $(39) | | Total Revenue | $988 | $1,341 | $1,575 | $1,788 | | Operating Income (Loss) | | | | | | Formula 1 | $84 | $293 | $220 | $265 | | Corporate and other | $(25) | $(13) | $(66) | $(52) | | Total Operating Income (Loss) | $59 | $280 | $154 | $213 | | Adjusted OIBDA (Loss) | | | | | | Formula 1 | $160 | $361 | $368 | $446 | | Corporate and other | $5 | $8 | $(1) | $(4) | | Total Adjusted OIBDA (Loss) | $165 | $369 | $367 | $442 | - Formula One Group's total revenue increased by $353 million (35.7%) in Q2 2025 compared to Q2 2024[7] - Formula One Group's total operating income increased by $221 million (374.6%) in Q2 2025 compared to Q2 2024[7] - Formula One Group's total Adjusted OIBDA increased by $204 million (123.6%) in Q2 2025 compared to Q2 2024[7] F1 Operating Results F1's operating results showed strong growth in Q2 2025, driven by an additional race, contractual fee increases, new sponsors, and growth in F1 TV subscriptions and hospitality. Operating income surged by 249% and Adjusted OIBDA by 126% for the quarter Formula 1 Operating Results (Q2 and H1 2025 vs. 2024) (amounts in millions) | Formula 1 | Three months ended June 30, 2024 (millions) | Three months ended June 30, 2025 (millions) | % Change 2024 | Six months ended June 30, 2024 (millions) | Six months ended June 30, 2025 (millions) | % Change | | :------------------------------------------------ | :------------------------------------------ | :------------------------------------------ | :------------ | :---------------------------------------- | :---------------------------------------- | :------- | | Number of races in period | 8 | 9 | | 11 | 11 | | | Primary Formula 1 revenue | $739 | $1,032 | 40 % | $1,202 | $1,351 | 12 % | | Other Formula 1 revenue | $132 | $194 | 47 % | $222 | $278 | 25 % | | Total Formula 1 revenue | $871 | $1,226 | 41 % | $1,424 | $1,629 | 14 % | | Operating expenses (excluding stock-based compensation): | | | | | | | | Team payments, excluding Concorde incentive payments | $(435) | $(513) | (18)% | $(598) | $(627) | (5)% | | Other cost of Formula 1 revenue | $(210) | $(274) | (30)% | $(333) | $(402) | (21)% | | Cost of Formula 1 revenue, excluding Concorde incentive payments | $(645) | $(787) | (22)% | $(931) | $(1,029) | (11)% | | Selling, general and administrative expenses | $(66) | $(78) | (18)% | $(125) | $(154) | (23)% | | Adjusted OIBDA | $160 | $361 | 126 % | $368 | $446 | 21 % | | Concorde incentive payments | — | — | NM | — | $(50) | NM | | Stock-based compensation | $(1) | — | NM | $(1) | — | NM | | Depreciation and Amortization | $(75) | $(68) | 9 % | $(147) | $(131) | 11 % | | Operating income (loss) | $84 | $293 | 249 % | $220 | $265 | 20 % | - F1's total revenue increased by 41% in Q2 2025, driven by an additional race (9 vs. 8 in Q2 2024) and contractual increases across all primary revenue streams[11][13][14] - F1 Operating Income increased by 249% to $293 million in Q2 2025, and Adjusted OIBDA increased by 126% to $361 million[11] F1 Revenue Analysis This section analyzes the drivers of F1 revenue growth in Q2 and H1 2025, including primary revenue streams, hospitality, and licensing income - Primary F1 revenue, comprising race promotion, media rights, and sponsorship fees, increased by 40% in Q2 2025 due to calendar variance (additional race), contractual increases, new sponsors, and growth in F1 TV subscriptions[12][14] - Other F1 revenue increased by 47% in Q2 2025, primarily due to higher hospitality and experiences revenue (Paddock Club growth, additional event) and growth in licensing income[14] - For the six months ended June 30, 2025, Primary F1 revenue grew 12% and Other F1 revenue grew 25%, with growth across all revenue streams, including new sponsors, F1 TV subscriptions, and higher freight income[15] Operating Income & Adjusted OIBDA Analysis This section details the factors influencing F1's operating expenses, including team payments, cost of revenue, and selling, general, and administrative expenses - Team payments increased in both Q2 and H1 2025 due to the pro rata recognition of expected higher team payments for the full year[16] - Other cost of F1 revenue increased due to higher freight costs (different event order), increased commissions and partner servicing costs, higher Paddock Club costs, new sponsor servicing costs, and F1 TV delivery costs[16] - Selling, general and administrative expenses increased primarily due to higher personnel and marketing expenses, including costs for the 75th season launch event[16] Corporate and Other Operating Results The Corporate and Other segment's revenue increased in Q2 2025, primarily driven by Quint's results from F1 Experiences and the Kentucky Derby. Rental income from Grand Prix Plaza in Las Vegas remained stable - Corporate and Other revenue increased in Q2 2025 due to Quint results, primarily from F1 Experiences across nine races and the Kentucky Derby[17] - Grand Prix Plaza in Las Vegas generated $6 million in rental income in both Q2 2025 and Q2 2024[17] - Quint's revenue is seasonal, with its largest events generally occurring in the second and fourth quarters[17] Financial Results - Liberty Live Group This section provides an overview of the Liberty Live Group's financial allocation and primary assets, including its interest in Live Nation Liberty Live Group Overview Liberty Live Group was allocated $7 million in corporate level selling, general and administrative expense in Q2 2025. Its assets primarily consist of Liberty Media's interest in Live Nation and other minority investments - Liberty Live Group was allocated $7 million of corporate level selling, general and administrative expense in Q2 2025[18] - The businesses and assets attributed to Liberty Live Group consist primarily of Liberty Media's interest in Live Nation and other minority investments[19] Capital Structure & Liquidity This section outlines Liberty Media's share repurchase activities, cash and debt positions for Formula One and Liberty Live Groups, and compliance with debt covenants Share Repurchases Liberty Media did not repurchase any common stock between May 1 and July 31, 2025. The company retains a remaining repurchase authorization of $1.1 billion - There were no repurchases of Liberty Media's common stock from May 1 through July 31, 2025[20] - The total remaining repurchase authorization for Liberty Media as of August 1, 2025, is $1.1 billion[20] Cash and Debt Formula One Group's cash and cash equivalents increased by $307 million in Q2 2025, primarily from F1 operations and derivative settlements, while its debt remained relatively flat. Liberty Live Group's cash decreased slightly due to interest payments and corporate overhead, with debt remaining flat. Both Liberty Media and F1 are in compliance with their debt covenants Cash and Debt (amounts in millions) | (amounts in millions) | 3/31/2025 | 6/30/2025 | | :------------------------------------------ | :-------- | :-------- | | Cash and Cash Equivalents Attributable to: | | | | Formula One Group | $2,833 | $3,140 | | Liberty Live Group | $314 | $308 | | Total Consolidated Cash and Cash Equivalents (GAAP) | $3,147 | $3,448 | | Debt: | | | | Total Attributed Formula One Group Debt (GAAP) | $2,982 | $3,030 | | Formula 1 leverage | 1.2x | 0.7x | | Total Attributed Liberty Live Group Debt (GAAP) | $1,582 | $1,769 | | Total Liberty Media Corporation Debt (GAAP) | $4,564 | $4,799 | - Total cash and cash equivalents attributed to Formula One Group increased by $307 million during Q2 2025, primarily due to net cash from F1 operations and proceeds from derivative contracts[27] - Total cash and cash equivalents attributed to Liberty Live Group decreased by $6 million during Q2 2025, primarily due to interest payments and corporate overhead[28] - Liberty Media and F1 are in compliance with their debt covenants as of June 30, 2025[27] Financial Statements This section presents the consolidated balance sheet, statement of operations, and statement of cash flows for Liberty Media, highlighting key financial movements and segment contributions Balance Sheet Information The consolidated balance sheet as of June 30, 2025, shows total assets of $13,821 million and total liabilities of $6,458 million. Formula One Group accounts for the majority of assets and liabilities, while Liberty Live Group holds significant investments in affiliates and current portion of debt Consolidated Balance Sheet Information (June 30, 2025, amounts in millions) | Assets | Formula One Group | Liberty Live Group | Intergroup Eliminations | Consolidated Liberty | | :---------------------------------------- | :---------------- | :----------------- | :---------------------- | :------------------- | | Cash and cash equivalents | $3,140 | $308 | — | $3,448 | | Total current assets | $3,793 | $309 | — | $4,102 | | Investments in affiliates | $33 | $589 | — | $622 | | Goodwill | $4,135 | — | — | $4,135 | | Total assets | $12,485 | $1,371 | $(35) | $13,821 | | Liabilities and Equity | | | | | | Accounts payable and accrued liabilities | $469 | $1 | — | $470 | | Current portion of debt | $34 | $1,769 | — | $1,803 | | Total current liabilities | $1,333 | $1,770 | — | $3,103 | | Long-term debt | $2,996 | — | — | $2,996 | | Total liabilities | $4,633 | $1,860 | $(35) | $6,458 | | Equity / Attributed net assets | $7,852 | $(511) | — | $7,341 | | Total liabilities and equity | $12,485 | $1,371 | $(35) | $13,821 | Statement of Operations Information Liberty Media reported consolidated net earnings of $204 million for Q2 2025, a decrease from $507 million in Q2 2024. This change was primarily influenced by a significant shift in realized and unrealized gains/losses on financial instruments, which were negative for Liberty Live Group in 2025, and the absence of net earnings from discontinued operations present in 2024 Consolidated Statement of Operations (Three months ended June 30, 2025, amounts in millions) | | Formula One Group | Liberty Live Group | Consolidated Liberty | | :---------------------------------------- | :---------------- | :----------------- | :------------------- | | Total revenue | $1,341 | — | $1,341 | | Operating income (loss) | $280 | $(7) | $273 | | Interest expense | $(49) | $(8) | $(57) | | Share of earnings (losses) of affiliates, net | $(2) | $73 | $71 | | Realized and unrealized gains (losses) on financial instruments, net | $160 | $(289) | $(129) | | Earnings (loss) before income taxes | $455 | $(227) | $228 | | Income tax (expense) benefit | $(73) | $49 | $(24) | | Net earnings (loss) | $382 | $(178) | $204 | | Net earnings (loss) attributable to Liberty stockholders | $382 | $(178) | $204 | Consolidated Statement of Operations (Three months ended June 30, 2024, amounts in millions) | | Formula One Group | Liberty Live Group | Liberty SiriusXM Group | Consolidated Liberty | | :---------------------------------------- | :---------------- | :----------------- | :--------------------- | :------------------- | | Total revenue | $988 | — | — | $988 | | Operating income (loss) | $59 | $(2) | — | $57 | | Interest expense | $(53) | $(7) | — | $(60) | | Share of earnings (losses) of affiliates, net | $(2) | $85 | — | $83 | | Realized and unrealized gains (losses) on financial instruments, net | $(1) | $88 | — | $87 | | Earnings (loss) from continuing operations before income taxes | $23 | $170 | — | $193 | | Income tax (expense) benefit | $1 | $(36) | — | $(35) | | Net earnings (loss) from continuing operations | $24 | $134 | — | $158 | | Net earnings (loss) from discontinued operations | — | — | $349 | $349 | | Net earnings (loss) | $24 | $134 | $349 | $507 | | Net earnings (loss) attributable to Liberty stockholders | $24 | $134 | $299 | $457 | - Consolidated net earnings attributable to Liberty stockholders decreased from $457 million in Q2 2024 to $204 million in Q2 2025[36][38] Statement of Cash Flows Information For the six months ended June 30, 2025, Liberty Media generated $612 million in net cash from operating activities, a significant increase from $394 million in the prior year. Investing activities resulted in a net outflow of $120 million, while financing activities provided $8 million. The overall net increase in cash was $509 million Consolidated Statement of Cash Flows (Six months ended June 30, 2025, amounts in millions) | Cash flows from operating activities: | Formula One Group | Liberty Live Group | Consolidated Liberty | | :------------------------------------------------------------------- | :---------------- | :----------------- | :------------------- | | Net earnings (loss) | $404 | $(195) | $209 | | Net cash provided (used) by operating activities | $628 | $(16) | $612 | | Cash flows from investing activities: | | | | | Net cash provided (used) by investing activities | $(119) | $(1) | $(120) | | Cash flows from financing activities: | | | | | Net cash provided (used) by financing activities | $8 | — | $8 | | Net increase (decrease) in cash, cash equivalents and restricted cash | $526 | $(17) | $509 | | Cash, cash equivalents and restricted cash at end of period | $3,164 | $308 | $3,472 | Consolidated Statement of Cash Flows (Six months ended June 30, 2024, amounts in millions) | Cash flows from operating activities: | Formula One Group | Liberty Live Group | Liberty SiriusXM Group | Consolidated Liberty | | :------------------------------------------------------------------- | :---------------- | :----------------- | :--------------------- | :------------------- | | Net earnings (loss) | $101 | $61 | $590 | $752 | | Net cash provided (used) by operating activities | $401 | $(7) | — | $394 | | Cash flows from investing activities: | | | | | | Net cash provided (used) by investing activities | $(308) | $108 | — | $(200) | | Cash flows from financing activities: | | | | | | Net cash provided (used) by financing activities | $6 | — | — | $6 | | Net cash provided (used) by discontinued operations | — | — | $(111) | $(111) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $91 | $101 | $(111) | $81 | | Cash, cash equivalents and restricted cash at end of period | $1,499 | $406 | $204 | $2,109 | - Net cash provided by operating activities increased from $394 million in H1 2024 to $612 million in H1 2025[40][42] - Net cash used by investing activities decreased from $200 million in H1 2024 to $120 million in H1 2025[40][42] Non-GAAP Financial Measures This section defines and reconciles Adjusted OIBDA, a non-GAAP financial measure used by Liberty Media to assess operational strength and performance Adjusted OIBDA Reconciliation Liberty Media uses Adjusted OIBDA as a non-GAAP financial measure to assess operational strength and performance, excluding items not directly reflective of ongoing business trends. For Formula One Group, Adjusted OIBDA increased significantly in both Q2 and H1 2025 - Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[44] - Adjusted OIBDA is considered an important indicator of operational strength and performance, allowing management to benchmark businesses and identify strategies for improvement[45] Formula One Group Adjusted OIBDA Reconciliation (amounts in millions) | Formula One Group | Three months ended June 30, 2024 | Three months ended June 30, 2025 | Six months ended June 30, 2024 | Six months ended June 30, 2025 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating income (loss) | $59 | $280 | $154 | $213 | | Depreciation and amortization | $89 | $80 | $175 | $157 | | Stock compensation expense | $6 | $6 | $18 | $8 | | Acquisition costs | $11 | $3 | $20 | $14 | | Concorde incentive payments | — | — | — | $50 | | Adjusted OIBDA | $165 | $369 | $367 | $442 | Important Notices & Disclosures This section provides details for the upcoming earnings conference call and includes important disclaimers regarding forward-looking statements and associated risks Earnings Conference Call Liberty Media will host an earnings conference call on August 7, 2025, at 10:00 a.m. E.T. to discuss the financial results. Access details for both dial-in and webcast are provided - Liberty Media Corporation will discuss its earnings release on a conference call on August 7, 2025, at 10:00 a.m. (E.T.)[29] - The call can be accessed by dialing (877) 704-2829 or (215) 268-9864, passcode 13748884, or via webcast at https://www.libertymedia.com/investors/news-events/ir-calendar[29](index=29&type=chunk) Forward-Looking Statements The press release contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially. Readers are advised to refer to Liberty Media's public filings for additional information on these risks - The press release includes forward-looking statements regarding business strategies, market potential, future financial performance, the Formula 1 race calendar, and the planned split-off of Liberty Live[30] - These statements involve risks and uncertainties, including market acceptance, regulatory matters, litigation outcomes, acquisition benefits, industry change, access to capital, and changes in law[30] - Liberty Media disclaims any obligation to update or revise forward-looking statements and advises referring to its Forms 10-K and 10-Q for additional risk information[30]