Liberty(FWONK) - 2025 Q2 - Quarterly Results

Q2 2025 Financial Performance Overview Liberty Media's Q2 2025 was marked by the MotoGP acquisition, progress on the Liberty Live split-off, and strong F1 momentum Q2 2025 Highlights The company highlights the MotoGP acquisition, progress on the Liberty Live split-off, and strong F1 momentum - Completed the acquisition of MotoGP on July 3, 2025, which will be attributed to the Formula One Group[1][2][4] - Advanced the split-off of Liberty Live Group, with a preliminary proxy statement filed and completion expected in Q4 2025[1][2] - Formula 1 secured new and extended partnerships, including with PepsiCo and MSC Cruises, and renewed long-term agreements for the Canadian and Austrian Grands Prix[2] - The fair value of the investment in Live Nation, attributed to Liberty Live Group, was $10.5 billion as of June 30, 2025[2] Formula One Group The Formula One Group delivered significant growth in revenue, operating income, and cash flow, driven by strong F1 performance Overall Financial Results The group's revenue grew 36% to $1.34 billion, with operating income and Adjusted OIBDA showing substantial increases Formula One Group Financial Summary (in millions) | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $988 | $1,341 | $1,575 | $1,788 | | Operating Income | $59 | $280 | $154 | $213 | | Adjusted OIBDA | $165 | $369 | $367 | $442 | F1 Operating Results F1's standalone revenue climbed 41% to $1.23 billion, driven by an additional race and contractual fee increases Formula 1 Operating Results (in millions) | Metric | Q2 2024 | Q2 2025 | % Change | | :--- | :--- | :--- | :--- | | Total F1 Revenue | $871 | $1,226 | 41% | | Adjusted OIBDA | $160 | $361 | 126% | | Operating Income | $84 | $293 | 249% | - The second quarter of 2025 included nine races, compared to eight in the same period of 2024, which significantly impacted year-over-year quarterly comparisons for revenue and costs[13] Revenue Analysis Primary revenue grew 40% from an extra race and fee increases, while other revenue rose 47% from hospitality and freight - Primary F1 revenue growth was driven by calendar variance (one additional race), contractual fee increases, new sponsors, and continued growth in F1 TV subscriptions[14] - Media rights revenue was also boosted by one-time revenue associated with the release of the F1 movie[14][15] - Other F1 revenue growth was primarily due to higher hospitality and experiences revenue from Paddock Club, driven by an additional event and underlying growth, as well as higher freight income[14][15] Operating Income and Adjusted OIBDA Analysis Strong revenue performance drove growth in Operating Income and Adjusted OIBDA, partially offset by increased team payments and freight costs - Team payments increased in both Q2 and H1 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, commissions linked to revenue growth, higher Paddock Club costs, and expenses associated with new activations at the Grand Prix Plaza in Las Vegas[16] - Selling, general and administrative expenses rose due to higher personnel and marketing costs, including for the 75th season launch event[16] Corporate and Other Operating Results Revenue increased due to Quint's results from F1 Experiences and the Kentucky Derby, with stable rental income from the Grand Prix Plaza - Revenue increased in the second quarter due to Quint's results, primarily driven by F1 Experiences across the nine races held and the Kentucky Derby[17] - The Grand Prix Plaza in Las Vegas generated $6 million in rental income, consistent with Q2 2024[17] Cash and Debt Position Cash and equivalents increased by $307 million to $3.14 billion, reducing F1's net leverage ratio from 1.2x to 0.7x Formula One Group Cash and Debt (in millions) | Metric | 3/31/2025 | 6/30/2025 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $2,833 | $3,140 | | Total Attributed Debt | $2,902 | $2,897 | | F1 Net Leverage | 1.2x | 0.7x | - The increase in cash was primarily due to net cash from operations at F1 and proceeds from the partial settlement of derivative contracts related to MotoGP transaction financing[27] Liberty Live Group The group's primary asset is its $10.5 billion investment in Live Nation, with a planned split-off expected in Q4 2025 Financial Highlights and Strategic Update The group's primary asset is its $10.5 billion Live Nation investment, with a split-off planned for Q4 2025 - The fair value of the investment in Live Nation was $10.5 billion as of June 30, 2025[2] - A preliminary proxy statement for the split-off was filed on July 25, 2025, with the transaction expected to be completed in Q4 2025[2] Cash and Debt Position The group's cash position decreased slightly to $308 million due to interest payments, while debt remained stable at $1.15 billion Liberty Live Group Cash and Debt (in millions) | Metric | 3/31/2025 | 6/30/2025 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $314 | $308 | | Total Attributed Debt | $1,150 | $1,150 | - The decrease in cash was primarily due to interest payments and corporate overhead[28] Corporate Information The company provides updates on its share repurchase activity and remaining authorization Share Repurchases No share repurchases were made from May to July 2025, with $1.1 billion remaining under the current authorization - There were no repurchases of Liberty Media's common stock from May 1, 2025, through July 31, 2025[20] - The total remaining repurchase authorization for Liberty Media is $1.1 billion as of August 1, 2025[20] Consolidated Financial Statements This section presents the company's consolidated balance sheet, statement of operations, and statement of cash flows Balance Sheet The company reported total assets of $13.8 billion and total liabilities of $6.5 billion as of June 30, 2025 Consolidated Balance Sheet Highlights (in millions) | Metric | Amount | | :--- | :--- | | Total Current Assets | $4,102 | | Total Assets | $13,821 | | Total Current Liabilities | $3,103 | | Total Liabilities | $6,458 | | Total Equity | $7,363 | Statement of Operations The company generated $1.34 billion in revenue and $273 million in operating income for Q2 2025 Consolidated Statement of Operations - Q2 2025 (in millions) | Metric | Amount | | :--- | :--- | | Total Revenue | $1,341 | | Operating Income | $273 | | Net Earnings Attributable to Liberty Stockholders | $204 | Consolidated Statement of Operations - Q2 2024 (in millions) | Metric | Amount | | :--- | :--- | | Total Revenue | $988 | | Operating Income | $57 | | Net Earnings Attributable to Liberty Stockholders | $457 | Statement of Cash Flows Net cash from operating activities increased to $612 million for the first half of 2025, driven by the Formula One Group Consolidated Statement of Cash Flows - H1 2025 (in millions) | Metric | Amount | | :--- | :--- | | Net cash provided by operating activities | $612 | | Net cash used by investing activities | ($120) | | Net cash provided by financing activities | $8 | | Net increase in cash | $509 | Non-GAAP Financial Measures This section defines Adjusted OIBDA and provides a reconciliation to the nearest GAAP measure, operating income Adjusted OIBDA Reconciliation Adjusted OIBDA is reconciled to operating income, adjusting for items like depreciation, amortization, and stock compensation - Adjusted OIBDA is defined as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, Concorde incentive payments, and restructuring, acquisition, and impairment charges[44] Formula One Group Adjusted OIBDA Reconciliation (in millions) | | Q2 2024 | Q2 2025 | H1 2024 | H1 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 |