Liberty(LLYVK) - 2025 Q2 - Quarterly Results

Executive Summary & Recent Developments Liberty Media Corporation reported strong progress in Q2 2025, highlighted by the MotoGP acquisition, Liberty Live split-off, and Formula 1's excellent financial and operating results Second Quarter 2025 Highlights Liberty Media Corporation reported strong progress in Q2 2025, highlighted by the completion of the MotoGP acquisition, advancement of the Liberty Live split-off, and continued excellent financial and operating results at Formula 1, driven by commercial momentum and record fan engagement - Completed the acquisition of MotoGP on July 3rd, which will be attributed to the Formula One Group[2][4] - Advanced the split-off of Liberty Live, with a preliminary proxy statement filed on July 25th, expecting completion in Q4 2025[2] - Formula 1 achieved excellent financial and operating results, securing new partners (PepsiCo, MSC Cruises, Disney's Mickey & Friends) and renewing key agreements (Canadian Grand Prix through 2035, Austrian Grand Prix through 2041)[1][2] - F1 The Movie debuted globally on June 27th, becoming Apple's highest-grossing film ever, contributing to strong viewership and record social/digital engagement[2][9] Liberty Live Group Investment Fair Value | Metric | Value (as of June 30th) | | :----- | :----------------------- | | Live Nation Investment Fair Value | $10.5 billion | Corporate Updates Liberty Media completed the acquisition of Dorna Sports, S.L. (MotoGP) on July 3, 2025, gaining approximately 84% ownership, with MotoGP management retaining 16% - Acquisition of Dorna Sports, S.L. (MotoGP) completed on July 3, 2025[4] - Liberty Media owns approximately 84% of MotoGP, with management retaining 16%[4] - MotoGP's financial results will be consolidated and attributed to the Formula One Group tracking stock, though initial accounting is not yet reflected in the Q2 results due to timing[4] Financial Performance Overview This section provides a comprehensive review of Liberty Media's financial performance, focusing on the Formula One Group's revenue and operating income growth, alongside corporate and Liberty Live Group results Formula One Group Financial Results The Formula One Group reported significant growth in Q2 2025, with total revenue increasing by 35.7% and operating income surging by 374.6% compared to Q2 2024, primarily driven by strong F1 performance Formula One Group Financial Results (Q2 2025 vs. Q2 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | % Change | | :----- | :----------------- | :----------------- | :------- | | Revenue | $988 | $1,341 | 35.7% | | Operating Income (Loss) | $59 | $280 | 374.6% | | Adjusted OIBDA (Loss) | $165 | $369 | 123.6% | Formula One Group Financial Results (YTD Q2 2025 vs. YTD Q2 2024) | Metric | YTD Q2 2024 (millions) | YTD Q2 2025 (millions) | % Change | | :----- | :--------------------- | :--------------------- | :------- | | Revenue | $1,575 | $1,788 | 13.5% | | Operating Income (Loss) | $154 | $213 | 38.3% | | Adjusted OIBDA (Loss) | $367 | $442 | 20.4% | - Formula One Group incurred $14 million in corporate-level selling, general, and administrative expenses in Q2 2025[5] F1 Operating Results (Detailed) F1's operating results showed substantial growth in Q2 2025, with total revenue increasing by 41% and operating income by 249%, driven by an additional race, contractual fee increases, new sponsors, F1 TV growth, and the F1 movie Formula 1 Operating Results (Q2 2025 vs. Q2 2024) | Metric | Q2 2024 (millions) | Q2 2025 (millions) | % Change | | :----- | :----------------- | :----------------- | :------- | | Number of races | 8 | 9 | 12.5% | | Primary F1 revenue | $739 | $1,032 | 40% | | Other F1 revenue | $132 | $194 | 47% | | Total F1 revenue | $871 | $1,226 | 41% | | Operating income (loss) | $84 | $293 | 249% | | Adjusted OIBDA | $160 | $361 | 126% | Formula 1 Operating Results (YTD Q2 2025 vs. YTD Q2 2024) | Metric | YTD Q2 2024 (millions) | YTD Q2 2025 (millions) | % Change | | :----- | :--------------------- | :--------------------- | :------- | | Number of races | 11 | 11 | 0% | | Primary F1 revenue | $1,202 | $1,351 | 12% | | Other F1 revenue | $222 | $278 | 25% | | Total F1 revenue | $1,424 | $1,629 | 14% | | Operating income (loss) | $220 | $265 | 20% | | Adjusted OIBDA | $368 | $446 | 21% | - Primary F1 revenue increased due to calendar variance (one additional race in Q2 2025), contractual increases in race promotion, media rights, and sponsorship fees, revenue from new sponsors, continued growth in F1 TV subscriptions, and one-time revenue from the F1 movie release[13][14][15] - Other F1 revenue increased due to higher hospitality and experiences revenue (Paddock Club growth, additional event), growth in licensing income, and higher revenue from travel, technical, and freight services[14][15] - Operating expenses increased due to higher team payments, increased freight costs (different event order), higher commissions and partner servicing costs, increased Paddock Club costs, costs for new sponsors, F1 TV delivery costs, and expenses for the Grand Prix Plaza in Las Vegas[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 Corporate and Other Adjusted OIBDA includes rental income from Grand Prix Plaza in Las Vegas and results from Quint, which saw increased revenue in Q2 2025 primarily driven by F1 Experiences and the Kentucky Derby - Corporate and Other Adjusted OIBDA includes rental income from Grand Prix Plaza in Las Vegas and Quint results[17] - Corporate and Other revenue increased in Q2 2025 due to Quint's performance, 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 largest events typically occurring in the second and fourth quarters[17] Liberty Live Group Overview The Liberty Live Group incurred $7 million in corporate-level selling, general, and administrative expenses in Q2 2025, with its assets primarily consisting of Liberty Media's interest in Live Nation and other minority investments - Liberty Live Group was allocated $7 million in corporate-level selling, general and administrative expense (including stock-based compensation) in Q2 2025[18] - The businesses and assets attributed to Liberty Live Group consist of Liberty Media's interest in Live Nation and other minority investments[19] Financial Position & Cash Flow This section details Liberty Media's financial position, including cash, debt, balance sheet, and cash flow statements for the Formula One and Liberty Live Groups Cash and Debt As of June 30, 2025, the Formula One Group's cash and cash equivalents increased by $307 million to $3,140 million, while its total debt remained relatively flat at $2,897 million Cash and Debt Attributed to Groups (amounts in millions) | Metric | 3/31/2025 | 6/30/2025 | | :----- | :-------- | :-------- | | Cash and Cash Equivalents: | | | | Formula One Group | $2,833 | $3,140 | | Liberty Live Group | $314 | $308 | | Total Consolidated | $3,147 | $3,448 | | Debt: | | | | Total Attributed Formula One Group Debt | $2,902 | $2,897 | | Total Attributed Liberty Live Group Debt | $1,150 | $1,150 | | Total Liberty Media Corporation Debt (GAAP) | $4,564 | $4,799 | - Formula One Group's cash and cash equivalents increased by $307 million in Q2, primarily due to net cash from F1 operations and proceeds from derivative contracts related to MotoGP financing, partially offset by capital expenditures[27] - Liberty Live Group's cash and cash equivalents decreased by $6 million in Q2, mainly due to interest payments and corporate overhead[28] - Formula 1's net leverage, as defined in its credit facilities, improved from 1.2x to 0.7x[25] - Liberty Media and F1 are in compliance with their debt covenants as of June 30, 2025[27] Balance Sheet Information As of June 30, 2025, Liberty Media Corporation reported consolidated total assets of $13,821 million and total liabilities of $6,458 million, with the Formula One Group accounting for the majority Consolidated Balance Sheet (June 30, 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | Assets: | | | | | Cash and cash equivalents | $3,140 | $308 | $3,448 | | Total current assets | $3,793 | $309 | $4,102 | | Goodwill | $4,135 | — | $4,135 | | Total assets | $12,485 | $1,371 | $13,821 | | Liabilities and Equity: | | | | | Total current liabilities | $1,333 | $1,770 | $3,103 | | Long-term debt | $2,996 | — | $2,996 | | Total liabilities | $4,633 | $1,860 | $6,458 | | Equity / Attributed net assets | $7,852 | ($511) | $7,341 | | Total liabilities and equity | $12,485 | $1,371 | $13,821 | Statement of Operations (Income Statement) Liberty Media's consolidated net earnings attributable to stockholders increased to $204 million in Q2 2025 from $457 million in Q2 2024 (which included discontinued operations), with the Formula One Group being the primary driver of profitability Three Months Ended June 30, 2025 For Q2 2025, Liberty Media reported consolidated total revenue of $1,341 million and net earnings attributable to Liberty stockholders of $204 million, with the Formula One Group contributing $382 million in net earnings Consolidated Statement of Operations (Q2 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | Total revenue | $1,341 | — | $1,341 | | Operating income (loss) | $280 | ($7) | $273 | | Earnings (loss) before income taxes | $455 | ($227) | $228 | | Net earnings (loss) attributable to Liberty stockholders | $382 | ($178) | $204 | Three Months Ended June 30, 2024 In Q2 2024, Liberty Media reported consolidated total revenue of $988 million and net earnings attributable to Liberty stockholders of $457 million, which included $299 million from discontinued operations Consolidated Statement of Operations (Q2 2024, amounts in millions) | Metric | Formula One Group | Liberty Live Group | SiriusXM Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------- | :------------------- | | Total revenue | $988 | — | — | $988 | | Operating income (loss) | $59 | ($2) | — | $57 | | Earnings (loss) from continuing operations before income taxes | $23 | $170 | — | $193 | | Net earnings (loss) from discontinued operations | — | — | $349 | $349 | | Net earnings (loss) attributable to Liberty stockholders | $24 | $134 | $299 | $457 | Statement of Cash Flows For the six months ended June 30, 2025, Liberty Media generated $612 million in net cash from operating activities, with the Formula One Group contributing $628 million Six Months Ended June 30, 2025 In the first half of 2025, the Formula One Group provided $628 million in net cash from operating activities, while the Liberty Live Group used $16 million, leading to a consolidated net increase in cash of $509 million Consolidated Statement of Cash Flows (H1 2025, amounts in millions) | Metric | Formula One Group | Liberty Live Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------------- | | Net cash provided (used) by operating activities | $628 | ($16) | $612 | | Net cash provided (used) by investing activities | ($119) | ($1) | ($120) | | 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 | Six Months Ended June 30, 2024 For the first half of 2024, Liberty Media reported $394 million in net cash from operating activities, with the Formula One Group contributing $401 million, and net cash used by discontinued operations totaling $111 million Consolidated Statement of Cash Flows (H1 2024, amounts in millions) | Metric | Formula One Group | Liberty Live Group | SiriusXM Group | Consolidated Liberty | | :----- | :---------------- | :----------------- | :------------- | :------------------- | | Net cash provided (used) by operating activities | $401 | ($7) | — | $394 | | Net cash provided (used) by investing activities | ($308) | $108 | — | ($200) | | 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 | Non-GAAP Financial Measures This section provides a reconciliation of non-GAAP financial measures, specifically Adjusted OIBDA, used by Liberty Media to evaluate operational 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 - 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] - Liberty Media believes Adjusted OIBDA is an important indicator of operational strength and performance, allowing management to view operating results and perform analytical comparisons[45] Formula One Group Adjusted OIBDA Reconciliation (amounts in millions) | Metric | Q2 2024 | Q2 2025 | YTD Q2 2024 | YTD Q2 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 | Additional Information This section covers share repurchase activities and important notices regarding forward-looking statements and upcoming investor calls Share Repurchases Liberty Media did not repurchase any common stock between May 1 and July 31, 2025, retaining a remaining repurchase authorization of $1.1 billion applicable across any of its tracking stocks - No repurchases of Liberty Media's common stock occurred 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] - The repurchase authorization can be applied to common shares of any of the Liberty Media tracking stocks[20] Important Notice & Forward-Looking Statements Liberty Media will host an earnings conference call on August 7, 2025, to discuss results, and the press release includes forward-looking statements subject to various risks and uncertainties - 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 press release contains 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 forward-looking statements involve risks and uncertainties, including market acceptance, regulatory matters, litigation outcomes, acquisition benefits, industry change, access to capital, and changes in law[30]